Johannesburg – Nigeria has turned to technology to improve operational efficiency and optimise asset performance as it ramps up plans to increase oil and gas production, a senior technology expert has said.
With a maximum crude oil production capacity of 2.5 million barrels per day, Nigeria is Africa's largest producer of oil and sixth in the entire world.
According to Systems Applications Products (SAP) Managing Director for West Africa, Richard Edet, oil, gas and mining companies in West Africa operated in a demanding environment characterised by tight regulations, and high operating costs.
“The best performing companies in this sector will be those that push the right technology levers to drive innovation and operational efficiency.
"The new market realities and dynamics that energy companies face require the ability to see clearly, think clearly, and act clearly. SAP solutions provide this clarity - and enable the closed loop management of business performance at both the enterprise and operational levels,” Edet said.
He said rising operational costs coupled with increasing regulations, market volatility and skills development in oil production were some of the biggest challenges facing oil, gas and mining companies in Nigeria.
“West African resource companies are turning to technologies to help them invest in improving operational efficiency and optimising asset performance.
“SAP's software solutions for the oil and gas industry help Nigeria's oil production companies reduce their inventory and materials cost through improved visibility, collaboration and strategic sourcing with suppliers.
“In addition, it helps with improving cycle time and equipment utilisation as well as aligning supply and manufacturing requirements with dynamic shifts in prices and demand,” Edet said.
He said SAP solutions that supported the oil and gas industry included operational risk management, integrated sourcing and procurement, enterprise performance management and optimised asset operations management that boost production.
He said the SAP Business One application integrates all core business functions across an entire company - including operations, financials, sales, customer relationship management, inventory and operations.
Unlike other small business solutions on the market today, SAP Business One is a single application, eliminating the need for separate installations and complex integration of multiple modules.
Today, Nigeria’s economic growth is forecast at 7% of the country's gross domestic product (GDP), which hinged largely on its abundant natural resource output - mining, oil and gas – areas in which SAP has robust, proven solutions.
- CAJ News