By Ashutosh Sinha
SAP India has won a US$19 million contract from the New Delhi-based Oil and Natural Gas Commission (ONGC), said to be one of the largest contracts in Asia for SAP in terms of the size of the project.
Under the agreement, SAP will help ONGC implement “Project ICE” (Information Consolidation for Efficiency), which requires nearly two years to complete. Once completed, ONGC will be able to obtain almost real-time information about the state of its oil wells and pipeline network that is available throughout the country.
Sources from ONGC have said that the company has allocated an IT budget of more than US$120 million over the next two years for similar enterprise wide projects to bring about efficiencies in its operations.
ONGC, run by the federal government, is the country’s largest oil and gas exploration company producing more than 25 million tons of crude oil annually; meeting nearly 30 percent of the demand from India.