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Analisi - knowledge management case studies - Aetnanet

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Exploration and Production<br />

Research and Technical<br />

Services<br />

+/- 1,000 employees<br />

Royal Dutch/Shell<br />

Group of<br />

Companies<br />

Shell International<br />

Exploration and Production<br />

Exploration and Production<br />

Operating Units<br />

+/- 30,000 employees<br />

Figure 1 Relation of Shell International Exploration and Production to Royal Dutch/Shell Group of<br />

Companies<br />

Research and Technical Services<br />

Research and Technical Services is a service company which provides advice and services<br />

to the operating companies. It’s sub-divided into two parts: Research & Development and<br />

Consultancy. One of these consultancy groups is New Ways of Working (NWW), which<br />

consists of +/- 10-14 people including 5 Information Technology consultants.<br />

Operating Units<br />

These units search for oil and gas fields by means of seismic surveys and exploration wells;<br />

develop economically viable fields by drilling additional wells and build the infrastructure of<br />

pipelines and treatment facilities necessary for delivering the hydrocarbons to the market.<br />

Shell is either shareholder or shareholder and operator of these units, in the last <strong>case</strong> all staff<br />

is Shell staff.<br />

Shells operating units are (from large to small) 14 :<br />

• NAM (The Netherlands, 50% Shell:50% Exxon)<br />

• Shell Expro (United Kingdom, 50% Shell:50% Exxon)<br />

• SPDC (Nigeria, 30% Shell:70% Local Government)<br />

• PDO (Oman, 30% Shell:70% Local Government)<br />

• BSP (Brunei)<br />

• Shell Petroleum Inc. (United States)<br />

• Norske Shell<br />

• SSB (Sarawak)<br />

• Venezuela<br />

• SPEX (Philipines)<br />

• Syria<br />

• New ventures<br />

• Angola<br />

• Kazachstan<br />

Exploration and Production and the market<br />

Crude oil prices are volatile. In December the crude oil price sank below $10 a barrel for the<br />

first time since 1986. Currently the prices are in the range of $15 a barrel. Over the next five<br />

years, oil production and gas sales are planned to grow – at an average annual rate of 4% for<br />

oil and 6% for gas. The strategy is maximising long-term value with increased emphasis on<br />

short-term profitability, cost leadership and production growth. Implement strategy through<br />

selective investments and active portfolio <strong>management</strong>. Take advantage of the global<br />

14 List might be incomplete, but gives a good enough overview (Arjan van Unnik).<br />

CIBIT 32<br />

analisi-KM <strong>case</strong> <strong>studies</strong>.doc - 25/5/99

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