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The industry “future state” can be anticipated asset
              owners are working multiple future models


                 CHANGING DESIGN, BUILD AND OPERATION OF OIL AND GAS ASSETS

                 PLANT DIGITALISATION                             MRO INVENTORY MANAGEMENT
                 • Advanced analytics for flow                    • Accurate levels of stock
                  simulation and optimisation
                                                                  • Unused inventory is sold off before
                 • Autonomous machinery                            it becomes obsolete
                  using IoT and sensors
                                                                  AUTONOMOUS MACHINES
                 DIGITAL SUPPLY CHAIN                             • Machines operating without need
                                                                   for human control
                 • Cloud-based logistics and                      • Robots performing dangerous or
                  load-sharing platforms                           difficult tasks
                 • Digital tools to quickly and                   CONNECTIVITY/DIGITAL PLANNING
                  accurately determine pricing
                 • RFID tagging to optimise                       • Virtual reality worker support
                  routes
                                                                  • Document management and control
                                                                  • Digital training
                 PREDICTIVE MAINTENANCE                           • Connected workers
                 • Sensors, transmitting                          ADVANCED DRILLING
                  operational status and
                  performance                                     • Automated drilling
                 • Smart algorithms to optimise                   • Real-time drilling analysis
                  maintenance schedules
                   ITALIAN VALUE CHAIN HAS THE CAPABILITIES TO ADDRESS
                                          THE CHALLENGES
                                                                                               Figure 2: Digital
                                                                                      2
             This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent   LON   BC Digital Slides   themes in oil and gas.
                rather than turning to their familiar, dog-eared   results at reasonable costs, executives need to develop
                manual, or exchanging data and communicating   a strategic roadmap encompassing the digital strategy,
                real-time with technical experts to evaluate   operating model changes and, most importantly,
                corrosion issues on a pipeline.      people capabilities.
                                                      Approaches differ, of course, from one company to the
                                                     next, depending on appetite for risk, potential gains
            Tapping the full potential of            from digital, and readiness for the transformation. But
            digital transformation                   they typically include five key elements:
                                                     1.  Identify the areas of the value chain with the
            Greater changes will come over time, but today most   highest impact on financial and operating
            companies  are  still  preparing  the  groundwork  for  the   results, and cross them with the opportunities to
            larger and more disruptive transformations that will   enhance delivery through digital technologies (see
            come as oil and gas companies implement a broader   Figure 3).
            range of digital technologies (see Figure 2). As they put   2.  Monitor key industry and technology trends,
            in place specific digital capabilities that can deliver fast   focusing on the identified value chain areas and
            Opportunities along the O&G value chain

                                                                                               Figure 3. Although
                                                                                               digital will affect the
                                                                                               entire oil and gas
                                                                                               value chain, four key
                                                                      Refining &
                                                                                   Sales &
                         Exploration   Development     Production     processing   Marketing   application areas are
                                                                                               already emerging
               Improve                              Real time reservoir optimization
              performance              Prediction analytics;   integrating production bottom   Optimise prediction of   Identify future
                                                                      the "cracking
                                      improve drilling accuracy,
              through better   Make real-time decisions   identify anomalies & prevent   hole sensor data with reservoir   spread" to produce   transportation needs
                        with 3D visualizations
              decisions and             undesired events   model intelligent / smart   higher yields more   to reduce costs
              faster insight                              field        efficiently
              Optimize data                                                      Integrated financial
              for process   Appraise acreage actions   Build real time data into   Automatic update of well model   planning; aligning
                         using competitive
              modelling and   intelligence dashboard   earth model on rigs and   production to peak
                                          onshore
                                                                                 sales opportunities
               appraisal
                Enable                                Reduce onsite personnel with remote operations
               automatic   Automated large data   Automated concept              Spot market analysis
                         integrated prospect
              management   analysis (aerial / analogue /   selection optimization   Long-term demand and
             of systems and   near field data etc.)   Optimize maintenance, minimizing shut-downs with   trend analysis
                                                        predictive analytics / maintenance
               processes
                           Increase       Increase   Increase ultimate recovery,   Optimize higher   Optimize pricing
                           certainty       speed       decreasing risks &   yields production,   and sales channels
                                                       operations cost   increasing safety
                                                                                    INDUSTRIAL PLANTS - May 2017
           This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent   LON   BC Digital Slides   3   55
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