Drive high-quality growth through digital transformation

The digital economy is opening up an era of significant transition. Deep integration of information technology into industrial technology is reshaping our production organization and operation mode, leading to industrial revolution and transformation with mushrooming new industries, new business forms and new models. At CNPC, we underscore digital transformation as a strategic step to modernize our corporate governance system and capabilities by promoting integration of Internet, big data and artificial intelligence into oil and gas operations, in a bid to foster new growth, create new momentum and drive high-quality development.

Over the past two decades, we have created and applied 80 IT integrated systems covering production management, operation management, general management, infrastructure components and network security, marking two milestones in the company’s IT capabilities, i.e. from distributed to centralized, and from centralized to integrated.

Digital Transformation Goals

Digital CNPC will be achieved by the end of the 14th Five-Year Plan period by leveraging real-time operational data acquisition based on automated sensing, access to internal and external data based on full connectivity, and optimization of execution and operation efficiency based on digital technology. A closed-loop system integrating the physical form of CNPC with its digital twin will be developed to promote two-way connectivity between the tangible business operations and the digital world. A mechanism for linking internal and external activities, information sharing and collaboration will be created to facilitate cost reduction, efficiency improvement, collaboration and sharing, ongoing innovation, risk mitigation and smart decision-making and enable continuous improvement in per-capita productivity and asset profitability.

Digital Transformation Trends

Digital technology will be integrated into products, services and processes of the oil and gas value chain to drive changes in the company’s development concept, working pattern, operation management, R&D and institutional framework etc. and build new capabilities in smart production, network-based collaboration and individualized services, in a bid to usher in new business models, production forms and industrial ecosystems driven by users, data and innovation.

Digital Transformation Framework

Based on a value-oriented, strategy-led, innovation-driven and platform-supported principle, the company’s digital transformation plan will be focused on business development, management change and technology empowerment. An industrial internet system and an applied ecosystem centered on cloud computing will be established, in a bid to create a “Two-in-One” strategic digital transformation framework.

Based on perception, interconnection and data fusion, achieving a new oilfield business model of “Real-time Monitoring, Smart Diagnosis, Automatic Handling and Smart Optimization” in the production process.

All-encompassing information systems, including an IoT-based production system and the Collaborative Research Environment, were launched at Xinjiang Oilfield to monitor real-time production dynamics and facilitate business activities. Intelligent analysis was promoted in the decision-making process.

Improving the ability of perception, analysis and optimization, prediction and coordination of refineries to build a new smart refining model featuring efficient supply chain, lean operation, safe work control and interconnected operation and maintenance.

An information system covering management, production execution and operating control was in place at Changqing Petrochemical to enable automated operation, lean management and coordination in production, equipment, HSE and other business areas.

Building an intelligent support platform for drilling engineering lifecycle to improve risk control, operating quality and efficiency.

Implementing intelligent wellbore techniques to enable real-time, visualized and remote surface/downhole monitoring in the process of drilling and completion.

Building smart operation sites, including smart drilling and digital seismic crews.

Leveraging CNPC's engineering intelligent support system, the digital transformation and intelligent development of our engineering services has shown positive results. As of the end of 2020, the data platform had covered 1,124 wells and solved 4,300 on-site problems remotely, with a 47.93% speed boost in complex troubleshooting.

Based on IoTs, big data, and artificial intelligence, building the digital system of people, vehicles and life, and achieving the goal of “smart marketing, digital operations and integrated management”.

Shanghai Marketing is trying to create a digital ecosystem and realized targeted retailing with technologies such as big data and artificial intelligence.

China National Petroleum Corporation