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Managing a project to implement an integrated information system in LUKOIL Mid-East Ltd.

Project management for the implementation of an integrated information system at LUKOIL Mid-East Ltd. (IIS LME)

Project Objectives

  • Strategic planning of the project consisting of 6 business applications, taking into account the development phase of West Qurna-2
  • Operational management, planning and follow-up of project activities
  • Organization of administrative procedures
  • Organization of support for implemented business applications

The project of implementing an integrated information system for LUKOIL Mid-East Ltd. consisted of 6 business applications interconnected with each other and other information systems:

  • Management information system of LUKOIL Mid-East Ltd. based on SAP ERP 6.0, SAP SRM
  • Operational reporting information system based on SAP BW, SAP Business Objects, SAP Crystal Reports
  • Management system for oil and gas capital projects based on Oracle Primavera P6 EPPM
  • Dashboard system based on Microsoft SharePoint
  • Integrated electronic document flow system and engineering document management system based on Open Text
  • Corporate portal based on Microsoft Share Point

which covered all of the company's business processes, in particular, those relating to management of large capital projects, production drilling, and geological exploration:

  • Corporate planning
  • Engineering support for oil and gas production activities
  • Managing hydrocarbon marketing, sales and delivery
  • Engineering support for capital construction projects and field infrastructure construction
  • Finance management
  • Legal support
  • Procurement management
  • Personnel management
  • Information management
  • Accounting
  • Development of, and support for, information systems and information technologies
  • Corporate service management

The project involved a lot of stakeholders both from the customer side and in terms of contractors from across the four corners of the globe: the UAE, Iraq, Russia, Norway, South Korea, Turkey, Italy, etc. This meant that project management and coordination of team activities was even more complex.

For the project, ITPS set up a dedicated project management function with a project office as a key operating body. The project office was responsible for operational management functions.

One of the keys to the project’s success is active participation of both key staff from the LUKOIL Mid-East functions and ITPS consultants. To ensure effective project management, ITPS was assigned the role of co-manager of both the project and the administrative planning group, the responsibilities of which included:

  • Operational management of the project progress, coordination of customer and contractor activities
  • Planning of project activities and resources
  • Monitoring KPIs (functional, budget and organizational ones) and project dates
  • Development and follow-up of project procedures
  • Preparation of regular reports for project management, proposals for decision-making and corrective measures
  • Project risk management
  • Preparing proposals for project changes and implementing such changes, including corrections to design documentation
  • Ensuring external and internal information exchange and communications
  • Organization of project meetings
  • Organization of document flow and project archives

Result

The integrated information system of LUKOIL Mid-East Ltd was implemented within the specified timeframe and budget. The customer was provided with a complete package of information systems required for this phase of asset development. IIS supported the development and infrastructure construction for West Qurna-2.

In 2012, the project was awarded the title of “Best Project of the Year” by judges in the Russian Global Cio IT director community competition.

Customer Feedback

"It’s worth noting that ITPS* demonstrated its commitment to providing a high-quality service, in-depth knowledge of the latest solutions, a high level of expertise operating within the oil and gas sector and an understanding of the specific nature and objectives of LUKOIL Overseas Holding."
Iskander Nasyrov, Managing director of LUKOIL Mid-East Ltd

 * The project was implemented by Parma Telecom (ITPS)

** The material is available in Russian version only

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