Petroleum invests Rs. 350 m on SAP - ERP software

Hiran H. Senewiratne

Sri Lankan petroleum industry is forging ahead with the implementation of System Applications Products for Data Processing (SAP) as the Enterprise Resource Planning (ERP) system for the sector, Managing Director Lanka IOC, K. Ramakrishnan said.

“Most of the Indian oil companies except one company uses the SAP system which has enabled petroleum companies to be proper decision making bodies,” Ramakrishnan said announcing the implementation of the SAP-ERP Software for Ceylon Petroleum Storage Terminals Limited (CPSTL).

The cost of the project is estimated at Rs 350 million including the hardware and networking costs, data centre and disaster recovery centre costs, software licences and consultancy fees. CPSTL will bear the capital expenditure.

CPSTL will bear operation expenditure and the IOC would undertake the marketing aspects.

The Indian Oil Corporation Limited has been appointed as the consultants to implement the SAP solution in the three companies.

Indian Oil, the largest commercial enterprise in India was awarded the work due to their expertise as the largest implementer of SAP in Southeast Asia connecting 681 locations and 8000 concurrent users to a common IT platform for online concurrent business transactions, Ramakrishnan said.

The CPC has also been given award by SAP for fast implementation at the largest number of locations and implementation of SAP in Indian Oil covers four divisions, seven refineries, pipelines and other marketing terminals, deposits and administrative offices spread across India, he said.