Real-Time Insights Enhance Procurement for Middle East’s USD 540 Billion in Oil and Gas Projects;
Kuwait Aims to Grow Oil Production by Over 40 Percent to 2020: EIA
Kuwait — Rebounding oil and gas prices signal the time for Kuwait’s energy firms to invest in technology innovation to drive USD 540 billion worth of projects, industry experts announced today.
Kuwait is investing to grow petroleum production by more than 40 percent from 2.8 million barrels/day to 4 million barrels/day by 2020, according to the United States Energy Information Administration. Kuwait’s petroleum exports total USD 98 billion, or 60 percent of GDP, according to OPEC.
“In this era of rebounding oil and gas prices, Kuwait’s energy firms have the potential to be global leaders in using technology to drive business innovation. Real-time insights can transform the procurement process with the depth, accuracy, and transparency to deliver projects on time and on budget,” said Gergi Abboud, Managing Director of the Gulf for global technology company SAP.
The Middle East hosts a USD 540 billion pipeline of oil and gas capital projects, according to a recent PWC report. Oil and gas companies are increasingly turning to technology to enhance project time and budgets, especially with the Brent crude oil price rebounding to about USD 45/barrel.
Middle East and Kuwait energy firms can use real-time insights to manage production, maintenance, engineering, and financials, and develop long-term budgets that save time, money, and resources.
Worldwide, many oil and gas firms are using the cloud-based Ariba Network to enhance procurement, with up to 30 percent savings by managing spending and suppliers, the financial supply chain, and e-commerce. Ariba, the world’s largest business network, traded USD 740 billion in commerce in 2015.
Demonstrating Ariba’s potential in energy, American waste management firm Clean Harbors Inc. has used Ariba to increase e-commerce by 48 percent, and reduce invoicing costs by nearly one-third. On Ariba, Clean Harbors Inc. counts USD 216 billion in transaction spend with 30,000 customers.
Worldwide, more than 800 oil and gas companies are using SAP solutions, including 85 percent of the Forbes 2000 oil and gas companies.
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 300,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com
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