Production control system implementation for the LUKOIL Overseas Holding

Production control system implementation for the LUKOIL Overseas Holding


Oil & Gas


Implementation of an automated production control system (ERP) at the asset of the LUKOIL Overseas Group in the Republic of Uzbekistan, in the LUKOIL Uzbekistan Operating Company.


LUKOIL started its operations in Uzbekistan in spring of 2001 by signing an Agreement on the General Principles of the future Production Sharing Agreement (PSA); In June, 2004 a PSA was signed for the Kandym field group, Khauzak, Shady, and Kungrad sites by the Republic of Uzbekistan and a consortium of investors composed of LUKOIL and the Uzbekneftegaz National Holding Company.  The PSA came into force in November, 2004. The PSA validity term is 35 years. In 2003 the company opened a new office in Tashkent; in 2004 the LUKOIL Uzbekistan operating company was created. In August, 2006 the PSA for the Aral geological exploration project with participation of the consortium of investors, including Uzbekneftegaz, LUKOIL, KNOC, CNPC and Petronas was signed. In February, 2008 LUKOIL became a participant of the PSA for the South-West Gissar/Central Ustyurt project.  The volume of capital costs related to Uzbekistan Republic projects exceeds $5.5 billion. The maximum level of annual gas production amounts to more than 15 bln. m3, the total accumulated volume of production is more than 320 billion cubic metres. In November, 2007 commercial gas production was started at the Khauzak - Shady site.


The main objective of creating an ERP in the LUKOIL Overseas Group was the integration of assets in a unified information space to promptly solve production tasks on the Group scale, to increase the efficiency of management decisions and to optimize production processes management.

Implementation Description

Project for the implementation of a production control system in the LUKOIL Uzbekistan Operating Company was carried out from October, 2010 to December, 2011. The project subsystems were built on the basis of software provided by well-known international vendors:

  • PI-system dispatcher subsystem, OSIsoft;
  • WellView drilling control subsystem, Peloton;
  • Energy Components production accounting subsystem, Tieto.

ITPS* experts developed a technical specification,a data model and a to-be model of the future system, configured a prototype, configured software for each of the subsystems and performed initial training. The required user interfaces were set up, initial training was performed. After the trial production operation the production control system went live.


For the LUKOIL Uzbekistan Operating company the implementation of the production control system solved the following tasks:

  • centralized operation control over the production and auxiliary facilities in the fields;
  • methodology and tools for the management and performance improvement of the production processes related to oil and gas extraction, treatment, pumping and delivery, maintaining reservoir pressure;
  • methodology and tools for the management and performance improvement of key drilling processes;
  • increasing the promptness and quality of management decisions;
  • increasing the planning precision and work control promptness;
  • accumulation, update, distribution, replication and use of structured production information;
  • information support to core and auxiliary processes.

The production control system ensures:

  • automated online data collection (values of technological process parameters) into one data warehouse (online database) via DCS interfaces;
  • viewing operation information via Web-access and Client applications;
  • support of business processes and calculation methods which will enable high-quality distribution of production volumes by wells (by product, well, layer etc.) and shall be applicable to payments under the Production Sharing Agreements;
  • registration, monitoring and control of production processes of drilling, extraction, treatment and delivery of oil and gas, reservoir pressure maintenance;
  • creation of regulatory reporting in compliance with the state and corporate standards;
  • management of non-productive time in drilling;
  • loss management.

Client's comment

"The implemented project let the company increase the efficiency of its production control. The quality and operational efficiency of production tasks resolution increased, the implemented system enabled us to make correct management decisions based on the operation analysis of core production processes."

Deputy General Director for Production of the LUKOIL Uzbekistan Operating Company, Egor Zubarev 

*- The project was implemented by the Parma-Telecom company (ITPS)

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