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Oil and Gas From Sensors to Business Sense Presented by: Ghassan Barghouth VP Middle East Strategic customers and Segments Confidential Property of Schneider Electric

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Oil and GasFrom Sensors to Business Sense

Presented by: Ghassan Barghouth

VP Middle East Strategic customers and Segments

Confidential Property of Schneider Electric

Confidential Property of Schneider Electric

• Our safety and control solutions run the largest

refinery in the world

• We help to refine 30% of the

world’s crude oil

• We manage 80% of the supply chain pricing

and billing transactions in North America

A global O&G leader

• We address more than 80% of onshore

production & operation

• We enable more than 60% of LNG

production in the world

• 80% of the largest pipeline operators in the

world trust our solutions

Page 2Confidential Property of Schneider Electric |

Our solutions deliver value throughout the entire O&G value chain

1. Offshore:

We reduce offshore project CapEx by up

to 5% and OpEx by up to 6%.

2. Onshore:

By optimising resource utilization, we

increase production efficiency by up

to 5% while also maximising recovery.

3. Pipeline operations:

We are the only company that provides an

integrated software platform within our

architecture that enables safe, reliable,

and efficient operations from the field to

the enterprise.

4. LNG and gas processing:

We remove risk and complexity from a

project’s critical path, ensuring on-time

and on-budget execution.

5. Refining and petrochemical:

We are the global leader in process

safety, and our integrated simulation

and control solutions reduce operating

cost and increase availability by up to

5%.

6. Fuel supply chain:

Improve efficiency with industry-leading

supply chain automation and business

intelligence tools.

Addressing critical Oil and Gas challenges

• Keeping employees, assets, and environment safe in a high-risk environment

• High cost of offshore staffing

• Finding efficiencies that improve business performance and optimise

production

• Deploying smart oil and gas field technologies

• Deploying digitisation and IoT technologies

• Aging workforce/lack of skilled workforce, knowledge transfer

• Difficulty optimising throughout supply chainWhy Oil and Gas customers partner

with Schneider Electric

As a worldwide leader, we intimately partner with our customers, listen to

their unique requirements find the right solutions that mitigate risk and drive

results, and ensure best-in-class global delivery and project management.

1 2 3 4 5 6

Confidential Property of Schneider Electric

We hold market leading positions in O&G

#1

in Secure

Power

#1

in Safety

Systems

#1

in Fuel

Supply Chain

#1

in Pipeline

Management

Systems

Page 4Confidential Property of Schneider Electric |

#2

in Operations

Management

Software

Key trends put pressure on OPEX and CAPEX decisions in

the Oil and Gas Industry

Keeping employees

and assets safe in a

high risk industry

Addressing industry trends

like the ageing workforce and

price volatility

Adopting new technologies

and prioritizing investments

Meeting sustainability

compliance and social

license to operate

In the United States alone, 10,000 baby boomers will retire every day

from now until 2030 – Pew Research Center

Page 5Confidential Property of Schneider Electric |

The Internet-connected, Internet-dependent world already is upon us.

Connected sensors. Control from the field. An astounding level of granularity to real-Time Data

Business decision-makers are taking note. What can a

single chip embedded deep within a device do for the

enterprise at large? In the recent Schneider Electric

Global IoT Survey of more than 2,500 business decision-

makers indicated that they believe IoT makes business

sense. It will ...

70%•create new opportunities for their companies in the near future

• improve the efficiency oftheir businesses andothers

of decision-makers

see the business

value of IoT.

•deliver long-term businessbenefits

•become the critical interfacebetween companies and their customers. Transformation of Customer Service and building Brand Loyalty

A new era of MEANINGFUL

OPPORTUNITIES

Page 7Confidential Property of Schneider Electric |

INTERNET OF THINGS• Number of connected objects

expected to double in the next 5

years1

0

10

20

30

40

50

1995 2003 2010 2013 2015 2020

Connected people

Connected objects

1. Source Cisco IBSG April 2011 / Internet World Statistics

Integration of Energy , Automation and Software

Energy & Process

optimization

Enterprise

Simpler, more scalable and flexible

industrial architectures, leveraging

the best of IT technologies

IT

OT

Energy Automation

Software

&

Analytics

Convergence

… and Schneider Electric is uniquely positioned to make

demand efficient and connected

Supply Chain

Consumer

Confidential Property of Schneider Electric

Mass-Balance

and Yield

Accounting

Energy

Management

Electricity

& Steam

Regulatory

CompliancePlanning &

SchedulingProcess

Modeling &

Simulation

Operator

Training

Data Mgt

Data

Manage-

ment

Asset

Management

Refinery & Petrochemical: IOM Solution

Sub-segment Applications

Solutions

Offerings

Reference architectures

Reference cases

Product descriptions

Operations

Field Equipment

Data Collection,

Control &

Visualization

Power

DistributionElectrical Power Distribution and Power Management incl E House

SCADA

Field Devices & Instrumentation

Real Time Applications ( Advanced Process Control )

Integrated Control & Safety Systems incl. Turbomachinery Control

Solutions

Simulation &

Optimisation

Data mgmt

Collaboration &

SharingIntegrated Information, Workflow

Enterprise

Management

ERP

IPPM

Crude Planning, Production Planning-Scheduling, Yield

Accounting , Dispatch Billing , Regulatory Filing

We perform part of ERP functions

Wonderware

Dash Board ROMeo-

Steam

ISA1

ISA2

ISA3

ISA4

Blending

Optimizer

Crude blending

Trading

ProphetX Terminal

Transaction

Mngt

DTN Tabs

Terminal Mngt

Guardian

Digital

Services

Immediate IoT value:FOUR OPPORTUNITIES

1Maximum

energy

efficiency and

sustainability

From Sensors to Business Sense

3Smart,

productive,

profitable

operations

4Mobile insight

and proactive

risk-mitigation

2Optimized asset

availability and

performance

HARNESS thein incremental

possibilitiessteps.

Innovation at every level makes it possible to harness

the power and possibilities of the IoT revolution in

incremental steps.

The future of IoT isclear.

But where can

organizations begin?

The Schneider Electric

Global IoT Survey

indicates that

organizations are

struggling with this

question. No

enterprise can just rip

and replace existing

IT/OT infrastructure.

At every level Schneider Electric provides tailored solutions to our focussegments:

Data

Centers

Buildin

gs

Home

s

Industri

es

Electrical

Utilities

Cy

be

rse

cu

rity

Apps, Analytics, andServices

Cloud

LocalControl

Connected Products

How canorganizations drive

IoT AT EVERY LEVEL?

BEST PRACTICES toward IoT integrationIoT integration, especially in the industrial world, requires incremental changes that supplement

legacy investments while delivering significant transformation in business processes and results

over time.Survey respondents who plan to start using IOT in Mobile applicaions in the next 6 Months

32%

01 02 03 04 05Start small withpilot projects and

stay focused.

EvaluateROI before

broadening

projectscope.

Make early strides with

energy efficiency and

asset managementprojects.

Close the loop with Supply Chain and Consumers

Move tocomprehensive

asset coverage

within adynamic

network.

An ecosystem of: PARTNERSHIPS

AND PLATFORMS

The power of COLLABORATION

Strong partnerships are essential toadvancing IoT solutions.

IoT has many facets. Connectivity. The cloud. Bigdata.Cybersecurity. Industrial automation. Engineering. Integration. The list goes on. A dynamic ecosystemof partnerships and platforms that develops,implements, monitors, and services IoT solutionscan lead to additional value more quickly and costeffectively than going it alone.

Industryleaders

innovators

Academicinstitutions

TechnologyGovernment and standardsbodies

01

Companies are piloting IoT initiatives to get more fromtheir existing OT and IT investments and processes —

and this approach is working.Threeobservations

Adopters are finding asset and energy management

to be fertile ground for IoT initiatives that deliver

meaningful results quickly and at relatively low cost.

02

of success03

Businesses are closing the gap between OT and IT

and are gaining access to a rich new data set that will

produce higher quality insights across the enterprise.

Looking ahead, IoT must be used

informed decisions that are made

to connect the entire enterprise to enable truly

in collaborative, digital ecosystems.

From Sensors to Business Sense

IOT has a Transformative Value

Confidential Property of Schneider Electric

of the largest Oil and Gas companies

Source: Forbes (http://www.forbes.com/pictures/eglg45hhkid/the-worlds-biggest-oil-a/)

Page 14Confidential Property of Schneider Electric |

in the world use Schneider Electric solutions

20+