National Oil Companies in Africa - Best Practices for Sustainable Performance Improvements Emmanuel Emielu Regional Marketing Manager Landmark Graphics Sub-Saharan Africa NOT AN OFFICIAL UNCTAD RECORD

Beginning with the End….  The ability of a NOC to meet its founding objectives is strongly tied to its ability to manage the national hydrocarbon information base effectively.  Information Management holds the key to attracting investments!  The better the national information is managed,  the more attractive the national hydrocarbon assets are to investors,  the more control the NOC has of its resources and exploitation of same  The good news is that technology and innovation has made scalable solutions both possible and available

 Software Technology  Consulting Services  Integrated Solutions Create and Evaluate the Hole Create Infrastructure to Flow Fluids Locate and Manage Hydrocarbons Optimize Production of Hydrocarbons Drilling and Formation Evaluation Fluids Production Optimization Halliburton - Organizing Around Our Customers Business Processes Landmark

Landmark Division Software/Technology Consulting & Services Integrated Solutions

What is the Value of an Oil Company?  “The value of our company is based on its reserves, its barrels of oil equivalent.  They are all ‘virtual.’ We cannot count them, they are a projection of our data. Which really are our assets -- barrels of oil equivalent, or the data describing the barrels we think we have?” “Quiet Revolution,” CERA, 1996, p. 5

African NOCs - Aspirations  Access to Investment Capital  Independence and Control  Access to Global Business Standards  In-house Capabilities & Competencies  Long-term Asset Optimization  National Development  Political Success

What is a National Data Bank?  A two-stage definition: An operational, central and secure facility for the management, quality control and storage of a nation’s petroleum related data assets (“The National Dataset”), which provides ease of access to these data in the “National Data Bank” for all stakeholders as authorised by government policy.  Secure access, and stakeholder buy-in are two key success factors for a a national data bank

High level components of a national data bank Data deliveries Bulk data management On-line catalogue Data management service Bulk data management Data management service Sub-domain Portal Data submissions Standards & Process Government Policy Operations

Benefits to the Petroleum Sector  The benefits of the introduction of a National Data Bank into the Petroleum sector are both private and public in their nature;  some will accrue to the government and their agents, others directly to the private sector and the participating oil companies.  Shared Value Model

The Value - Government  Focal point for attracting investments: Providing a source of quality assured data for potential IOC’s moving into a region (Nigerian bidding round) Reduced cycle times for investment decisions Managed risk for investors  Basis for monitoring regional exploration and production: Forecasting and planning Managing the exploitation of hydrocarbon assets Easing the reporting of performance Drive cost out of the system

The Value – Operating Companies  Addresses key data challenges directly : Finding and accessing the right data, of the appropriate quality, quickly Sharing data with partners Meeting regional operational prerequisites:  Data submission and release  Reporting  Provides basis for effective management of costs: Total data management costs $/TB metric

What a National Data Bank Is Not  A low value data storage project,  which costs money to run and,  delivers little or no operational benefits.

8 hosting centers 7 client data centers global petrotechnical consultants Houston London Stavanger Perth Aberdeen Brazil China Indonesia Moscow Pakistan Calgary Kazakhstan Sakhalin India Nigeria Data & Applications Hosting Centres Client Data Centres National Data Banks - around the world

Brazilian National Data Bank  Problem Petrobras data represented 100% of E&P Brazilian data Data was deteriorating and difficult to find Government wanted to attract foreign investment and was poised to change the monopoly rules

Brazilian National Data Bank  Benefits Legacy data recovered, organized and quality controlled renewing the data asset value for the future New investments in Brazilian E&P sector as a result of improved access to quality controlled and secure data bidding processes prepared more quickly and efficiently thereby improving return on investment for all parties

Brazilian National Data Bank  Data content Tapes Documents 950,000 tapes 1,000,000 pages Logs 17,000 logs Seismic surveys 600,000 km

8 hosting centers 7 client data centers global petrotechnical consultants Houston London Stavanger Perth Aberdeen Brazil China Indonesia Moscow Pakistan Calgary Kazakhstan Sakhalin India Nigeria Data & Applications Hosting Centres Client Data Centres National Data Banks - around the world

Project Overview Master Data Bank location Principal data loading site Catalogue Near-line digital set Off-line (tapes) set Master backup set Media delivery Electronic local delivery Satellite Data Bank location NDS catalogue Near-line digital set Backup set Media delivery Electronic local delivery Physical storage location Off-line (tapes) set All physical data Media copying Transcription/remastering

Lagos Facility 8 th Floor, NCR Building, 6 Broad Street, Lagos Island.

Driven by Secure Technology!  Physical & electronic security Physical integrity Audited network security  Data security Shared data versions Comprehensive item level entitlement  Disaster recovery Systematic tape integrity management Secured centre backups Mirrored centre operations

Project Conception & Best Practice  The Landmark approach is to work consultatively with all the relevant government agencies, and participating oil companies to: Create the technical and commercial environment where data is cooperatively submitted and secured in a central facility Facilitate the sharing of the submitted data as the quality assured data are ‘released’ or ‘published’  Such repositories emerge as: National Data Banks when there is strong government agency policy, and a national dataset is formed Regional Data Banks where participation is through a looser federation of subscribers

In the Beginning….  The ability of a NOC to meet its founding objectives is strongly tied to its capabilities to effectively manage the national hydrocarbon information base.  Information Management – The key to attracting investment  The better information is managed, the more attractive the asset is to investors, the more control the NOC has of its resources and utilisation  Availability of scalable solutions