Digital transformation in oil and gas companies - A case study of Bien Dong POC
PETROVIETNAM
PETROVIETNAM JOURNAL
Volume 10/2020, p. 67 - 78
ISSN 2615-9902
DIGITAL TRANSFORMATION IN OIL AND GAS COMPANIES -
A CASE STUDY OF BIEN DONG POC
Tran Vu Tung, Tran Ngoc Trung, Ngo Huu Hai, Nguyen Thanh Tinh
Bien Dong Petroleum Operating Company
Email: tungtv@biendongpoc.vn
Summary
The fourth industrial revolution (Industry 4.0) with the breakthrough of internet and artificial intelligence has had a strong impact,
changing all aspects of global socio-economic life. Digital transformation in the spread of Industry 4.0 is no longer a choice but has become
an inevitable development trend for businesses to truly stand up to the times. Digital transformation is the transformation of business
activities, processes, products, and models to fully leverage the opportunities of digital technologies, characterised by development,
growth, innovation, and disruption. In particular, "digital disruption" is the situation when new technology competes with the traditional
business way that we now often refer to under the concepts of cloud computing, big data, and internet of things (IoT). This competition
will help businesses utilise digitised data and processes to create a new model that is more efficient and convenient. Digital technologies
in oil and gas companies can have a significant business impact as it contributes to increasing hydrocarbon recovery, ensuring safety
across the business ecosystem, and improving operational reliability. This paper addresses the oil and gas industry’s trends in digital
transformation and the initiatives at Bien Dong POC.
Key words: Digital transformation, oil and gas industry, big data, AI, digitalisation.
1. Introduction
The oil and gas industry is undergoing a fundamen-
tools that combine data science, smart sensors and data
communications can help prevent machine failures and
improve productivity.
tal digitalisation era to unlock more energy at lower costs
and delivers significant performance improvements. With
real-time insights, improving equipment availability and
getting ahead of obstacles become less challenging. To
remain competitive, companies are adapting and trans-
forming their trial and error models to take advantage of
current paradigm shift to implement modern solutions
and accelerate the impact of going digital.
- Product quality and parameters are monitored
throughout the entire manufacturing process.
- Operational costs of production when automated,
intelligent and visualised production segments can
reduce personnel involved in field monitoring, machine
operation, technology systems, and logistics.
- Workplace safety is better ensured.
Digitalisation is the integration of digital technologies
and business models through applications such as big
data, internet of things (IoT), cloud storage, connection,
and artificial intelligence (AI), etc., in order to create ma-
jor changes in the operational scheme and enhance the
company’s value [1].
2. Opportunities for digital transformation in oil and
gas industry
Energy consumption continues to increase over the
years. As shown in Figure 1, although renewables will in-
crease sharply, oil and natural gas will continue to be the
biggest energy source used by the world's population,
accounting for about 55% of total annual energy con-
sumption. Since current oil and gas exploitation activities
have naturally declined, the continuous growth of pe-
troleum fuels will only be possible when there are tech-
nological leaps in exploration and production activities.
The benefits from digital transformation can be sum-
marised in four groups:
- Productivity improvement using maintenance
Date of receipt: 1/10/2020. Date of review and editing: 1-16/10/2020.
Date of approval: 18/10/2020.
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RESEARCH & DISCUSSION
The deployment of industrial revolution 4.0 applications
is one of the necessary measures to increase production
at lower costs.
levels. It can drive substantial enhancements for worker
productivity, and data-driven decision making, thereby
accelerating a creative digital innovation. It also helps in
promoting operational excellence by transforming the
federated legacy operating environment into a lean, agile,
and high performance computing business platform. Dig-
ital technologies can also facilitate combining data from
financial, transactional, geophysical, and other systems.
Thus, businesses are able to unleash business value by
means of new forms of advanced analytics. Digital tech-
nologies can range from simple visualisations systems
to complex simulation models that can reliably predict
future performance, all the way to highly automated ma-
chine learning analytics.
Today, digital technologies in oil and gas focus on
two aspects of IT optimisation and business optimisation.
Digitalisation helps in creating a lean and agile IT service
environment that concentrates on operational excellence.
New IT technologies such as advanced analytics, data cen-
tre automation, and cloud computing are explored and
employed. Meanwhile, digitalisation helps in enhancing
business performance by implementing digital capabili-
ties such as business simulation, integrated planning, and
asset performance management.
It is showed that digitalisation amplifies business op-
timisation by creating seamless integration across organ-
isational silos, thereby enabling operational agility at high
Thus, implementation of digital technologies can fa-
cilitate operational excellence, thereby allowing oil and
End-use energy consumption by sector, world
quadrillion British thermal units
350
End-use energy consumption by fuel, world
quadrillion British thermal units
350
Industrial
300
300
History
Projections
250
200
150
Petroleum and other
liquids
250
200
150
Transportation
Electricity
Natural gas
100
100
50
0
Residential
Commercial
Coal
50
0
Renewables
2010 2020 2030
2040 2050
2010 2020 2030
2040 2050
Primary energy consumption by energy source, world
Share
quadrillion British thermal units
300
100
90
80
70
60
50
40
30
20
10
Renewables
History
Projections
Renewables
250
200
150
Petroleum and other
Petroleum and
other liquids
liquids
Natural gas
Coal
Coal
100
Natural gas
Nuclear
50
0
Nuclear
0
2018
2050
2010 2020 2030
2040 2050
Figure 1. World annual energy consumption reported in International Energy Outlook 2019 [2].
PETROVIETNAM - JOURNAL VOL 10/2020
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Figure 2. Applications based on digital platform in petroleum industry [4].
gas leaders to effectively prove that they are running their
assets safely, sustainably, reliably, and cost-effectively.
ticular, digitisation is the first step and also plays the most
important role because it can significantly increase pro-
ductivity, save time and make the system more secure. In
other words, the result of the digitisation process is the
condition required to perform the digital transformation.
In fact, recently, there are a few sectors in the oil and
gas industry that can afford new technologies, but they are
just separate solutions in field management, production,
and maintenance. According to Deloitte's report in 2015,
digitalisation in the petroleum industry was rated 4.68 on a
10-point scale [3]. Only a few leading oil and gas companies
are highly digitalised and are developing towards smartisa-
tion. Therefore, in order to become a“4.0 company”, a com-
pany needs to take advantage of the following factors:
In the 1980s, oil and gas companies began to apply
digital technology to accurately estimate the reserves
and potential production of the hydrocarbon resources as
well as to improve operational efficiency of the oil and gas
fields in the world [4]. However, over the years, the oil and
gas industry has not fully seized the opportunity to use
data and technology in a meaningful way. For example, an
oil and gas platform can generate trillions of bytes of data
per day [4], but only a small portion is used for decision
making. The reason is that the data processing technol-
ogy has not met the requirements, the information tech-
nology infrastructure system of the oil and gas industry
is going slowly compared to the times. Modern central
distributed control systems still use infrastructure with
slow transmission speeds such as Supervisory Control and
Data Acquisition (SCADA), Highway Addressable Remote
Transducer (HART) Protocol, and Fieldbus, etc. Therefore,
digitalisation in the oil and gas upstream industry is still in
the early stage.
- New technologies with smart sensors, IoT and
intelligent technologies enable workers to work remotely,
- High-speed bandwidth connection improves data
transmission between on-shore and off-shore platforms,
- Big data and large data storage capacity becomes
available at a much cheaper cost. Cloud computing
technology and cloud storage platform make the cost of
operation, maintenance and upgrade much cheaper than
on-premise database server systems,
- Advanced analytical methods and advanced
simulation greatly assist in making timely and accurate oil
and gas field operating decisions.
In the future, digital transformation in oil and gas
should focus on the following four topics: asset life cycle
digital management, the concept of "beyond the barrel",
the circular collaborative ecosystem and energy optimisa-
tion [4]. Different themes will create respective applicable
innovations and technologies (Figure 2):
- New business models and smarter workflow
processes help improve productivities.
The digital transformation process undergoes three
key steps: (1) digitisation, (2) digitalisation of the process
(digitalisation), and (3) digital transformation (DT). In par-
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RESEARCH & DISCUSSION
Table 1. Amount of generated data in petroleum engineering disciplines [4]
ꢂꢃꢁ ꢄꢅount oꢆ dꢄtꢄ
ꢀꢁction
Drilling data
Electric submersible pump monitoring
Wireline data
0.3 GB/well/day
0.4 GB/well/day
5 GB/well/day
0.1 GB/well/day
100 GB/survey
4 - 6 GB/day
1.5 TB/600 km
0.1 GB/day
8 GB/year
Fiber optic data
Seismic data
Plant process data
Pipeline inspection
Plant atmospheric data
Plant operational data
Vibration data
7.5 GB/year/customer
- Asset life cycle digital management is the process
of digital transformation and equipment operation
modelling and improvement of strategic decision-making
based on data science. The process relies on dedicated
sensors to collect real-time information from physical
assets, and on analytical tools to process data. Companies
make decisions and strategies to advance business
performance as well as operating model.
directors as well as all technical team and support staffs of
the oil and gas company need to ensure continuous and
multidisciplinary involvement throughout the project life
cycle. Continuous feedback will assist in shaping timely
and accurate project planning and implementation. Sec-
ond is the lack of training and retraining of personnel
in the development of smart oilfield projects. Third, the
shortage of skilled labour in the oil and gas industry and
the lack of experience in similar projects are equally a
challenge. People with knowledge and experience from
successful implementation of digital transformation proj-
ects are very rare even in the world.
- The circular collaboration ecosystem uses an
integrated digital platform to better collaboration
among stakeholders in the petroleum ecosystem, while
accelerating innovation, reducing costs, and improving
transparency in governance and administration.
For process and improvement, one challenge is the
large number of traditional processes that need to be
re-evaluated and digitised into digital processes that re-
quire huge amounts of time, manpower, and technologi-
cal factors. The second one is the inertia or resistance to
non-traditional change. Meanwhile, for the application of
new technologies, the two biggest challenges are limited
budget and limited expertise. In the current period with
the constant and unpredictable fluctuations of oil and
gas prices, budget for technology application becomes a
challenge. Besides, the continuous change and improve-
ment of technology also have a significant impact on the
immediate investment decisions or are waiting for more
effective and smarter solutions in the near future.
- The concept of "beyond the barrel" refers to the
application of a customer model, supplier participation
in innovation and flexibility, using expert knowledge and
opening new opportunities for petroleum operation.
- Energy optimisation refers to the use of advanced
technologies to improve the efficiency and effectiveness
of production systems.
3. Challenges and opportunities in digital transformation
The implementation of digital transformation in an oil
and gas company consists of three main pillars: human,
process (corporate culture, administration, digital strat-
egy and process improvement) and new technologies ap-
plication. For the culture and digital strategy, the human
factor is the biggest challenge. First, defining the busi-
ness’s Mission - Vision - Core value and digital strategy are
restructuring, changing the mindset, working method of
the entire enterprise in the direction of digitisation. In ad-
dition, when experience is weak, leaders should also pro-
vide learning opportunities to project team or divide the
project into different phases with separate milestones.
The lack of feedback loops (Plan-Do-Check-Act) is a chal-
lenge in the development of Oil and gas 4.0. The board of
Analysis and data management poses many chal-
lenges for the oil and gas engineering team. The first is the
ability to analyse, synthesise and process a large amount
of fragmented data in many places with many different
technical disciplines. The second challenge is security
when data needs to be centralised, strictly confidential
and decentralised to access. Real-time data retrieval and
response to oil and gas facilities are also a major challenge
as most people in complex geographic locations find it
difficult to secure a continuous broadband connection.
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Table 2. Lists of major challenges in digital transformation
ꢇꢄꢆcriꢈtion
ꢀꢁꢂꢃꢃꢄnꢅꢄꢆ
ꢉoꢃution
System safety Interaction and integration of diꢀerent Companies in diꢀerent technology sectors will work together
technologies can lead to errors. The supporting to overcome existing technical challenges and limitations.
platforms and facilities are yet to be deployed.
Digitalisation Poor alignment between real project goals and Deꢁning the Mission - Vision - Core value of the business and
strategy
the needs and operating status of the company. deꢁning the digital strategy are restructuring, changing the
The goals are becoming outdated in terms of mindset, working method of the entire enterprise towards
technology that is constantly changing.
digitalisation.
Geography
New oil and gas ꢁelds are increasingly in remote 1. Upgrade communication and connection to meet the new
locations. Limited bandwidth between oꢀshore needs.
platforms and onshore headquarters because 2. It is necessary to focus on digital data soon. As a premise for
oꢀshore platforms are often located in remote advanced analysis and artiꢁcial intelligence.
locations, out to sea.
3. Research and deploy edge computing applications.
The data is fragmented due to the nature of the
work and is not synchronised.
Macro policy
Lack of government policy and planning.
Governments will coordinate with businesses to make policy,
propaganda, and guidance planning. Oil and gas, computer
science, automation and other engineering disciplines will be
linked together based on the master plan and the guidelines
of each country.
In Vietnam, the following resolutions and action plans are
available:
1. Resolution No. 52-NQ/TW, dated September 27, 2019 of the
Politburo on several guidelines and policies to actively
participate in the Fourth Industrial Revolution.
2. Directive 16/CT-TTg dated May 4, 2017 of the Prime Minister
on strengthening access capacity to the Industrial Revolution
4.0.
3. Contents of the Action Plan in Decision No. 4246/QD-BCT
dated November 10, 2017 of the Minister of Industry and
Trade.
Traditional
process
With everything digitally connected, we no Businesses need a modern and comprehensive digital
longer have to rely on traditional paper-based solution that replaces outdated, error-prone paper processes
processes and operate in silos; There will be no and takes advantage of this digitised data.
more room for manual and time-consuming
processes.
Resistance to Where is the organisation on the changes? Most 1. Companies should have the best digital solution to
change
employees are entrenched in traditional daily minimise time-consuming processes, improve employee
mission processes. When it comes to improving eꢂciency and reduce work pressure by allowing access to
processes and incorporating new technologies, work from anywhere, at any time, regardless of location.
they resist. They see change management as a 2. The era of "Oil and gas 4.0" must be initiated from the
challenge to their roles/responsibilities and a leadership level. Company management needs to deliver the
threat to their job safety. Many people resist the highest level of commitment and be passed on to each
change of their working environment because employee as part of the digital transformation process.
digital disruption is seen as a threat to many 3. Transparency and eꢀective communication are essential to
employees in the profession. Besides, a new and keep people motivated about the potential of this new
diꢂcult problem is always sceptical and technology.
uncooperative.
4. Improve employees' capacity and awareness.
Outdated
business
model
Businesses are very comfortable in their existing 1. Manufacturers need to leave their comfort zones, revamp
systems. The need for upgrading is not clear their business models, and move towards more eꢂcient,
without seeing the results of pioneering accurate, and fast business processes using modern digital
projects.
technologies instead of current generation of outdated systems.
2. If there is an early awareness of Industry 4.0 and assessment
of advantages and disadvantages of the current model, it is
the choice. If it is late, it is a life-and-death decision, vital to the
business.
Limited
automation
Many repetitive, redundant, and time- Organisations can automate or reduce manual tasks, allowing
consuming tasks that are performed manually for faster product updates and response times by embracing
by a group of employees consume a large the right digital solution.
amount of work time resulting in high costs.
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ꢀꢁꢂꢃꢃꢄnꢅꢄꢆ
ꢇꢄꢆcriꢈtion
ꢉoꢃution
Budget
limitation
A substantial investment in a manufacturing 1. Companies will gradually realise the great beneꢀts of digital
facility is required during the digital transformation and increase their investments.
transformation journey. The beneꢀts are many, 2. Appropriate planning of the investment process is required,
both short term and long term, but it is and no two digital transformation schemes are alike.
important for each company to have a strategy 3. Having a long-term vision is crucial to achieving a truly
that matches its business model, revenue, and valuable future goal. Avoid short-term inꢁuences such as
total operating costs.
Covid-19 or oil prices slump that could interrupt or stop the
programme.
4. Solid solutions (return on investment - ROI) should be
selected and considered as a proof-of-concept method (POC).
Lack of
knowledge
Without the right expertise, the introduction of 1. In case the company's existing expertise is inadequate, a
the technology alone is not enough to make it partnership with outside consultants or hiring new staꢂ
work. Increasing employee knowledge is an should be considered.
essential part of the application of digital 2. The digital transformation programme responsibility
technologies into production.
should be a common goal of the entire organisation and
Lack of experience from doing a similar project is should not be limited to just a few employees or departments.
equally a challenge.
3. Universities oꢂer interdisciplinary courses.
Lack of interdisciplinary talent, the current
education system focuses too much on
cultivating a single specialty.
Unsuitable
training
programme
Lack of training and retraining of personnel in 1. The leaders should also provide learning opportunities to
developing smart oilꢀeld projects; shortage of the project team or break the project into small sections with
skilled workers in the oil and gas industry.
separate milestones. The lack of feedback loops (Plan-Do-
Check-Act) is a challenge in the development of Oil and gas
4.0. Ensuring continuous and multidisciplinary involvement
throughout the life of the project between the project team,
the board of directors as well as all technical and support
personnel of the oil and gas company.
2. Need a methodical and scientiꢀc training programme to
develop smart oilꢀeld projects. This helps to add knowledge
that is lacking and is not usually found in oil and gas operating
businesses such as cloud computing, data mining, or artiꢀcial
intelligence.
Inꢁexible
structure
- The introduction of the Industrial Internet of 1. To solve this problem, it is necessary to form a project team
Things (IIoT) or AI into an oꢂshore platform is from many disciplines including engineers, operating
not just a small improvement. The organisation technicians, data analysts and experts into the team
needs a new technological background, people, responsible for the transformation. The team will nurture
and business model. If necessary, the structure ideas, research new technologies, and then develop
must be established and reorganised to meet execution plans promoting collective strength and wisdom.
the changing needs of Industry 4.0.
2. Large and multinational oil and gas companies have been
- The application of new technologies takes a at the forefront of the pilot work. The models and beneꢀts
certain amount of time to evaluate, and to adjust have been clearly indicated and documented, companies
the existing strategy according to the new with
a smaller model will build their own digital
environment. transformation model.
Security
Cyber security is a major concern for any digital 1. Vulnerable issues should be identiꢀed and recorded.
transformation project as the network works and 2. Several layers of protections and insecure mechanisms
control systems will be connected to the need to be in place to ensure the system is safe, secure, and
internet.
reliable.
The major challenges in digital transformation can be
identified in Table 2.
cy. Oil prices are highly volatile and extraction costs often
rise in more challenging environments, such as deep and
arctic waters and unconventional resources (e.g. oil and
shale gas). Mature fields need to optimise exploitation
costs; efficiency and competitiveness in finding and sup-
plying oil and gas for domestic and global markets have
to be improved.
4. Digital transformation in oil and gas upstream
industry
Oil and gas upstream is characterised by strong com-
petition in terms of area, capital and market; therefore all
oil and gas producers must focus on production efficien-
According to Korovin and Tkachenko, the Oil and
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gas 4.0 programmes focus on the integration of produc-
tion operations, decision making and the application of
modern information technology [5]. From an application
perspective, the smart oil and gas field not only replaces
repetitive human work, but also replaces human analy-
sis, which is a knowledge creation process. The process
is: Awareness → Analysis and Alerts → Decision → Imple-
mentation → Optimisation).
companies, smart oil fields can increase production by 2
- 7% and reduce operating costs by 5 - 20%. In addition,
according to the practice of smart oil field projects, smart
oil fields need to have the following functions: (1) real-
time data accessing and sharing; (2) ability to analyse the
current state, predict future trends and make optimisation
decisions; (3) ability to achieve operational integration;
and (4) automatic control capabilities.
In recent years, smart oil fields have grown rapidly and
many large companies are working on them. For example:
BP's "Field of the future" uses smart sensors and automa-
tion process to transmit real-time data from the field to
a remote centre for rapid analysis and decision-making
[6]. This programme started in 2003 and BP deployed this
programme for 80 wells around the world in 2012. They
also established the "Advanced Collaboration Centre"
worldwide to allow remote co-operation in many fields of
oil and gas engineering and exchange expertise between
locations. At the beginning of project implementation, a
programme structure was proposed, consisting of three
layers: digital infrastructure and IT architecture, remote
performance management, and system optimisation.
In addition, Table 3 addresses the opportunities for
applications implemented in the oil and gas industry.
5. Digital transformation at Bien Dong POC
Facing the oil price slump in recent years, the task of
oil and gas companies is to optimise exploration and pro-
duction costs, improve efficiency and competitiveness in
finding and supplying oil and gas for domestic and world
markets. Bien Dong POC has made efforts to look for the
potential oil and gas prospect and focused on research-
ing solutions to maximise the amount of recovered oil
and gas in the Hai Thach - Moc Tinh fields, improving effi-
ciency of oil and gas production activities. However, it can
be seen that traditional approaches for search and explo-
ration of oil and gas fields, especially condensate fields, as
so far employed in Vietnam have reached the boundary
of economic efficiency, forcing us to consider using mod-
ern and non-traditional technologies, particularly digital
In Shell's "Smart Fields" programme, sensors and
control valves in complex reservoir environments are
connected to improve operational efficiency through
real-time monitoring [7]. According to estimates by large
Table 3. Industrial Revolution 4.0 applications in oil and gas industry [4]
ꢀꢃꢃꢄicꢂtion
ꢀrꢁꢂ
ꢅꢁꢆꢁrꢁncꢁ
Exploration
- Geological data
[8 - 11]
- Seismic interpretation.
- Geological maps 1D, 2D, and 3D.
- Rig optimisation.
- Productivity.
- Non-production time reduction (NPT).
- Risk reduction.
Drilling
[12 - 16]
[17 - 23]
- Characterising the drill string dynamics.
- Reservoir management.
Reservoir Engineering
Production Engineering
Maintenance
- Closed-loop reservoir management-CLRM), (Integrated asset modelling - IAM).
- Heavy oil reservoir optimisation.
- Unconventional reservoir characterisation.
- Improved hydraulic fracturing.
- Improved enhanced oil recovery projects.
- Improved decline curve analysis.
- Production back allocation.
- Electric submersible pump (ESP) optimisation
- (Rod pump optimisation.
- Improved hydraulic fracturing operation.
- Improved reservoir surveillance.
- Asset management.
[24 - 30]
[31 - 32]
[33 - 36]
- Well completion optimisation.
- Eꢀective HSE management.
- Improved risk assessment method.
Health and Safety
Environment - HSE)
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RESEARCH & DISCUSSION
transformation, application of big data processing technology, auto-
mation and development of artificial intelligence systems to support
decision-making. Accurate determination to improve the efficiency of
management and exploitation of oil and gas fields has become a real
need in the development of production.
Third, the company conducts research-
es develops goals and action plans in the
coming time for oil and gas field manage-
ment and operation programmes, includ-
ing: (1) predictive maintenance programme
(predictive maintenance - PdM); (2) pro-
gramme asset performance management
and technology system optimisation (pro-
cess optimisation); and (3) enterprise perfor-
mance management programme. This helps
to optimise maintenance run times; mini-
mises unplanned breakdown or well closing
times; ensures the safe and continuous op-
eration of the technology system and helps
to minimise equipment maintenance costs.
Bien Dong POC has so far applied the Solar
turbine operation parameter monitoring
system to monitor the performance of the
equipment, make predictions, early warn-
ings and corrective plans for the failure-po-
tential parts before machine damages.
In recent years, having identified the core values that can bring
return on investment (ROI), Bien Dong POC is implementing an action
plan for the Industry 4.0 programme in the following main directions.
First, Bien Dong POC starts to build a digital project, a centralised
data platform for the whole company (digital platform). The data can
be used for the intelligent oil and gas management system (oil and gas
business intelligence); and bring oil and gas field management, analy-
sis, and operations tools to cloud computing and mobile platforms.
Second, the company replaces traditional processes with electron-
ic, digital, software-based application, and centralised database-based
working methods; builds a corporate culture based on digital ideology,
innovate creative thinking towards the application of digital technol-
ogy to increase cohesion, develop expertise, improve productivity, and
ensure continuity. Tools and softwares are deployed to support team-
work and online meetings, manage work assignments, and share data.
The online approval process (e-approval) is built and implemented to
increase efficiency and work consistency. This helps simplify, streamline,
and ease text-approval processes.
Fourth, researching and planning are
conducted to apply artificial intelligence
tools to support the process of analysing
and linking geological documents, well geo-
physics and exploitation data to improve
the efficiency of management, operation
and exploration of Hai Thach - Moc Tinh con-
densate gas fields.
Fifth, in order to successfully carry out
digital transformation towards the global
trend, the digital human resources devel-
opment program must go one step ahead,
and focus on investment in human resourc-
es. The strategy is to attract and develop
high-tech talents with digital thinking, vi-
sion, and skills. For that reason, Bien Dong
POC has established a research team on
Industry 4.0, specialising in monitoring and
updating opportunities for development
and application of digital technology in
management and business. In addition, the
company also focuses on developing and
training to improve working capabilities for
all employees in the context of the Indus-
trial Revolution 4.0 (Empowering Industrial
4/0 Workforce).
Figure 3. The components of digital oil field [37].
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6. Bien Dong POC digital transformation strategy
allow us to build truly smart solutions to be able to self-
monitor, learn and intelligently control the comprehen-
sive operations at fields.
Bien Dong POC's digital transformation strategy is
based on the three main pillars of People, Technology and
Systems Process (Figure 3).
These technologies provide an open environment for
smart solutions with a comprehensive workflow through
all stages. Therefore, the development of digitalisation
programmes has never been so favourable and support-
ed. But advanced technologies also require more com-
petent human resources and higher costs to be able to
develop and maintain these systems.
6.1. People
People management is a challenging task. The obsta-
cle one can see in human nature is “resistance to change”.
This is very common due to feelings of personal interests
being affected; new ways of doing things will require em-
ployees to change and adapt, and scepticism about the
feasibility and benefits of Industry 4.0 does exist among
them. However, these barriers to the implementation
of the digitalisation programme can be overcome by a
bottom-up approach, with which stakeholders are fully
engaged from the start. The benefits of digitalisation pro-
grammes need to be consistent with the production and
business goals of the company, and directly attached to
each employee in developing personal capacity, thus im-
proving efficiency.
6.3. Process
As technology develops, it is increasingly involved in
oil and gas field management and operation processes.
Technologies are built and used to support smarter and
automated management of oil and gas field operations.
Oil and gas field management and operation is a
closed loop of processes such as validation, stock update
reporting, field and production monitoring, processing
systems and equipment maintenance. When any change
arises, the other activities must also be adjusted. These
are continuous daily activities consuming manpower time
and each decision greatly affects environmental health
and safety, production efficiency and costs.
Projects are easily accepted when you absorb the
team's intrinsic dynamics. The corporate cultural environ-
ment needs to be reviewed and adjusted if necessary. A
modification to the organisational model should also be
taken into account when implementing it.
The development of these workflows requires exten-
sive knowledge of many areas in oil and gas engineering,
modern corporate governance practices, as well as data-
driven, science-based and systematic approaches. In ad-
dition, digital transformation also requires the application
of modern technologies to transform work processes to
improve labour efficiency and safety, and create more
value from an asset.
In most oil and gas operating companies, there is
no pre-project staff training programme, especially with
the digitalisation programme. The lack of staff with pas-
sion for technology and ambition poses challenges to the
deployment of digital transformation. Staff with passion
and motivation are the key to project success [37]. In ad-
dition, being able to form up a team with different areas
of expertise from reservoir management, production and
operation, IT or data science engineers also brings a great
challenge to implementing digitalisation.
The production and operation outputs can be mea-
sured with different well openings through well test ac-
tivities and at the outputs of the oil and gas processing
systems. Being able to accurately calculate the produc-
tion output at different well openings and across the
entire production network is extremely important for
oil and gas field management and operations to maxi-
mise economic potential of the reservoir. In addition,
incorrect forecasting of yield can lead to false reservoir
estimates and make erroneous decisions about well ex-
ploitation regime. The construction of non-parametric
reservoir models based on pressure and temperature
data has proven to be a valid and cost-effective solu-
tion [37].
6.2. Technologies
In the past, the oil and gas industry applied high tech-
nology in several specific technical disciplines. For exam-
ple, the reservoir operation simulation models were built
and the production model analysis was developed very
early. Over the years, technology has matured. Many new
technologies have emerged, enabling oil and gas compa-
nies to apply and integrate them into the field manage-
ment and operation. Some of the latest technologies we
have discussed here - such as big data, cloud computing
and IIoT or artificial intelligence and machine learning
PETROVIETNAM - JOURNAL VOL 10/2020
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RESEARCH & DISCUSSION
The "Production Performance Monitoring” (PPM) pro-
ral disasters and epidemics to ensure a continuous con-
nection. During the peak period of the Covid-19 epidemic
in Vietnam, when the measures of social isolation and
isolation were applied, the Bien Dong POC office was still
operating based on the digital platform and centralised-
digitalised central database.
cess has been successfully implemented in Bien Dong
POC. The PPM goal is to create automated workflows to
improve productivity, data and process management
methodology, and data standardisation. The components
of this solution consists of (1) building a monitoring in-
frastructure system of operational activities; (2) collecting
and storing real-time data; (3) standardising the produc-
tion activity and allocation process; (4) tracking and eval-
uating allocation results automatically; and (5) building
reliable simulation models. Figures 5 and 6 show some
examples of the oil and gas field governance workflows
applied in Bien Dong POC. It is the result of automatic
activities and expert knowledge of many departments.
The goal is to be able to make accurate and fast decisions
based on raw data.
The trade-off involved in the implementation is con-
sidered the extensive training to engage employees and
drive adaption and a broader cultural change. Leadership
development is needed to foster an aspirational outlook,
with managers acting as change agents. In addition, the
digital transformation programme is also a prerequisite
for research, goal development and future action plans for
the future advanced oil and gas field management pro-
grammes in Bien Dong POC, such as: (1) predictive main-
tenance programme (predictive maintenance - PdM); (2)
programme asset performance management and tech-
nology system optimisation (process optimisation); and
(3) enterprise performance management programme.
7. Conclusions
Digital transformation is a large-scale business shift.
The opportunity for the overall digital transformation is
driven by large database of oil and gas field operations,
and advanced management tools by companies.
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