Implementation of new digital technologies in Azerbaijan’s oil & gas sector
BAKU, Azerbaijan, Aug.31
Transformation to digitalization is not optional, but mandatory in today’s world of globalization, Huseyn Hajiyev, Mechanical Engineering Instructor / ADNOC Technical Academy, UAE told Trend.
He pointed out that non-digitalized companies will not exist after 10-15 year.
"The world’s most big companies are competing with each other in this sphere. They try to apply new digital technologies and get improved with the help of re-equipment. Over the past few years, the oil and gas industry has been reshaped by technology and new digital approaches have been introduced to simplify many operational processes, reduce human work hours and help improve equipment reliability and security," said Hajiyev.
He noted that digital transformation concerns the use of digital technology to solve business problems and make business processes more efficient.
There are 5 digital foundation aspects of digital transformation: Blockchain, Artificial Intellegence, Internet of things, Cloud and Cybersecruty, said the expert.
The potential benefits of going digital are increased productivity, shorter response and intervention times, cost savings, safer operations, and asset integrity, as well as sustainable resource treatment, according to Hajiyev.
He noted that all these processes can be done by people but it takes quite long time.
"New artificial technologies can reduce one-month human job to one day.
Smart devices provide a real competition-beating opportunity for oil and gas companies which play the digital revolution right," he said.
The recent report from World Oil states that approximately 69 percent of companies overrun in cost, and about 80 percent overrun in time, both of which leading to billions in operational losses, added Hajiyev.
He pointed out that private and government companies in Azerbaijan also show high activity in ensuring digital transformation of the country’s economy.
"SPE’s (Society of Petroleum Engineers) 6th annual Caspian Technical Conference was successfully held in Baku, Azerbaijan. Over 500 industry professionals from 26 countries attended the conference. The Conference theme was "Digital Transformation: Enabling the Future". The event focused on various ways of using digital technology in the oil and gas industry and how they expect to be using it in the future," said the expert.
Hajiyev noted that digital transformation in Azerbaijan’s upstream oil and gas is already underway, as companies seek to identify the technologies that will bring added value to their enterprises.
"Azerbaijan International Operating Companies successfully applies digital technologies in Azeri and Chirag fields. Local oil and gas companies in Azerbaijan have already started to implement digital technologies on their sites. Today Azerbaijan’s State Oil Company SOCAR also operates on a global scale like other global oil and gas companies. It carries out different operations in around 40 countries. By applying these artificial intelligences like block chain technology on supply chain, they will be able to save a lot of wasted time," the expert said.
He noted that SOCAR and IBM have established Caspian Innovation Centre LLC joint venture.
"Caspian Innovation Centre is creating a single data source, which will allow for integrated planning, modeling, analysis, and monitoring of all oil production processes. SAP (Systems Applications and Products) software products provide powerful instruments for helping companies to manage their financials, logistics, human resources, and other business areas," added Hajiyev.
He noted that SOCAR is carrying out digital transformation of its oil and gas production.
"SOCAR organized making road map to implement digital transformation step by step in its different projects like drilling, exploration of new reserves, oil and gas production. Caspian Innovation Centre has set the main plan in Azerbaijan for the future: 1) successfully completing the implementation of digitization inside SOCAR in the new future; 2) applying these new technologies in other companies in Azerbaijan," said Hajiyev.
He pointed out that digitization affects all industries and sectors in Azerbaijan.