The oil and gas industry is a mature industry which, amidst increasing adoption of new energy sources and pledges towards net-zero 2050 at the recent COP26, will have to transform their business and processes.
Today at AIBP Insights Fueling ASEAN, we addressed the topic of current trends and future-proofing for the oil and gas industry with digitalisation and advanced technology, from upstream, midstream to downstream.
AIBP Insights is a series of discussions held online which brings together a focus group of ASEAN stakeholders to discuss topics related to enterprise technology adoption in the region.
Finalists of the 2021 ASEAN Enterprise Innovation Awards, AKR Corporindo (Indonesia), Phoenix Petroleum Philippines, PTTEP (Thailand) also showcased their innovation projects at the session.
The Enterprise Innovation Awards was established in 2017 by AIBP with the key objective of giving recognition to organisations who have embarked on projects to digitally transform their business through the adoption of innovative technology. The awards are held annually for ASEAN countries; Indonesia, Malaysia, Philippines, Thailand and Vietnam.
Key points addressed included outcomes of digital transformation, considerations for technology adoption and considerations for digital adoption.
Outcomes of digital transformation for Oil and Gas
As a high-capex industry, oil and gas involves complex and costly equipment and infrastructure. These firms will have to begin their digital transformation journey by looking at pain points of the organisation, as Chatchai Kongdachudomkul, Vice President, Enterprise Transformation Department, PTT Exploration and Production PCL, Thailand, mentions as a key consideration. Likewise, Teddy Yusup, Head of Information Technology, PT AKR Corporindo, Indonesia, mentioned that the benefits and business cases are determined before IT decisions are made and that key priorities lie in removing non-value-adding tasks along their supply chain.
Chatchai highlighted PTTEP’s focus on advanced technology for exploration and production (E&P) as the organisation makes progress towards 3 key aspirations for enterprise transformation towards sustainability – digital transformation, organisation transformation and new normal transformation.
Highlighting the importance of customer experience for the consumer today, Charlie Valerio, Chief Digital Officer, Phoenix Petroleum Philippines, shared how the Phoenix Group DX Program transformed customer experience through digital with a focus on 2 of Phoenix Group’s DX program pillars – connected consumers and new digital businesses – in the past 2 years. e-vouchers offered on the LIMITLESS app was surprising well-received by Phoenix Petroleum’s customers, highlighting the impact of digitalisation on consumer behaviour today.
The central role of data was once again brought up often today. At PTTEP, data has been collected for more than 20 years, and with this data foundation, PTTEP is able to have their data available onto a data lake to provide a single source of truth for the organisation. Similarly, Charlie mentions how Phoenix Petroleum is working towards a data-mindset and making data-based decisions, and making use of existing data is part of maximising existing technology.
Teddy spoke about how AKR is addressing the need for the organisation to eliminate manual processes by creating a digitalised business process through API management and integrated data, where API integration was highlighted as a key enabler of AKR’s digital transformation.
Considerations for technology adoption
Key considerations for technology adoption in the oil and gas industry lies in acquiring appropriate solutions and cost-considerations among other things. In addition, as brought up by Teddy, maintaining data integrity and improving data security along AKR Corporindo’s end-to-end supply chain is a key focus as well.
Chatchai mentioned that while PTTEP would adopt off-the-shelf technology and solutions, they are hard to come by, and close to 80% of their required solutions are co-created for the organisation.
At Phoenix Petroleum, Charlie shared that ready solutions are preferred. Drawing on his experience with digital solution adoption at both multinational businesses and local businesses, where key considerations differ. While larger, multinational corporations will look for best practices, justify and implement them, local corporations must take into account the issue of affordability. More importantly, he believes that outsourcing of solution development should only be done if the firm is clear on their requirements.
The shift in culture and mindset of the organisation was also brought up by the panel today. AKR Corporindo educates their users about the technology, while PTTEP seeks to encourage organisation transformation with digital literacy along with mindset shifts.
At the end of the day, customer experience is a key focus for digitalisation today, and as Charlie puts it, “the big bang for the buck”.
The AIBP Insights series will continue this and next week, where we will host focus groups on enterprise digitalisation in ASEAN featuring enterprises from the region. Finalists of the 2021 ASEAN Enterprise Innovation Awards will also be showcasing their innovation projects for their organisation.
Feel free to drop us a message if you would like to view the full session replay, or if you wish to find out more about upcoming focus groups!
18 November 2021