Effects of Information Technology Management on Performance Efficiency in Oil and Gas Companies

Research Paper Topic: Effects of Information Technology Management on Performance Efficiency in Selected Oil and Gas Companies in Oman Name of the Student Name of the University Author Note Chapter 1 4 Introduction 4 1. Executive IT management 18 Research focus 20 Research problem 21 IT Capability and Firm Performance 24 Firm performance Related to Information Technology Investments 25 Research significance 27 Research Objective 27 Research question 28 Research aim 28 Research contribution 28 Thesis structure 34 Conceptual model 37 Chapter 1 Introduction At present, there is an unpredictable market and a complete fluctuation in oil

Research Paper
Topic: Effects of Information Technology Management on Performance Efficiency in Selected
Oil and Gas Companies in Oman
Name of the Student
Name of the University
Author Note

Table of Contents
Chapter 1..........................................................................................................................................4
Introduction..................................................................................................................................4
1. Importance of information technology in the oil and gas sector...................................5
2. Main challenges that affect the oil and gas industry.....................................................7
3. Turning data into intelligence........................................................................................8
4. Digital transformation value..........................................................................................9
5. Oil price trend..............................................................................................................10
6. Current IT structure in some of the O&G companies in the GCC region...................10
7. Main Oil and Gas companies in Oman.......................................................................12
8. An overview of IT management in the selected companies:.......................................15
9. IT management overview and background.................................................................17
10. Executive IT management...........................................................................................18
Research focus...........................................................................................................................20
Research problem......................................................................................................................21
IT Capability and Firm Performance.........................................................................................24

Firm performance Related to Information Technology Investments........................................25
Research significance................................................................................................................27
Research Objective....................................................................................................................27
Research question......................................................................................................................28
Research aim..............................................................................................................................28
Research contribution................................................................................................................28
Thesis structure..........................................................................................................................34
Conceptual model......................................................................................................................37

Chapter 1
Introduction
At present, there is an unpredictable market and a complete fluctuation in oil prices. As a
result of increased competition in the market, both demand and supply are changing at a rapid
rate than it used to (Lu et al. 2019). Considering the situation, both the oil and gas industry needs
to be completely flexible so that they can respond in a quick way with the smooth market
changes and stand collaborative. The point should be noted that competitive organizational
agility has highlighted a huge number of changes (Tasmin and Muazu 2017). It has ultimately
become an essential tool for making responses with respect to both market fears and its opening.
Organizational flexibility focus on the ability of the firm to make a response regarding
the unexpected changes with both rapid and innovative response. In order to develop the
capability, the organization has made a huge investment in information technologies (Mäkitie et
al. 2018). It will merely highlight the question “How does the power of the IT management
authority to enhance its organizational performance.
This research has been adopted to provide a dynamic capability approach for developing
a suitable research framework. The research highlights the dynamic system competencies, which
include both vision capabilities and complete competence understanding (Rana, Vinoba and
AlHumaidan 2017). More specifically, this research work focuses on two of the major issues on
the provided issues. The first point should be from the skills hierarchy and how the study
explores the extent of both IT capability and management capability. This ultimately aims to
affect the overall organizational performance. The complete hierarchy capabilities focus on

views which claim the lower-order capabilities. It can be easily integrated for the generation of
some high-order capabilities. This step ultimately enhances the overall performance of the
organization (Stephenson and Agnew 2016). The point should be noted that both IT capability
and management capability as some of the low-ranked capabilities. This merely highlights that
two capabilities which will ultimately improve the high-rank capabilities.
The second point should be noted from the viewpoint of embedded capabilities that focus
on investigating the organizational structure along with performance measurement. The
capability merely focuses on the contextual aspect, which is seen with the structure, culture, and
social parameters of the firm (Rodriguez and Knapp 2018). The study focus on the
organizational environment that includes various aspects like affiliation, fairness, and
innovativeness. It will ultimately resist the overall impact of IT capability and capability of
management on the overall performance of the organization.
1. Importance of information technology in the oil and gas sector
In the last few years, the demand for IT services has been increased to a large extent. The
domain of information technology has increased a lot for some of the global resources that are
both employment and growth (Scholvin et al. 2017). At present, the IT capabilities stand out to
be important for enhancing the overall perspective of competitiveness on the global platform.
Some of the competitiveness is GDP, tackling energy and defense capabilities.
There has been a growing demand for some advanced capabilities in the domain of
software for both oil and gas projects. It merely focuses on upstream, downstream, and lastly,
midstream domains (Mbugua and Namada 2019). The computer system in the Oil industry is a
level where each and every engineer needs to be completely familiar with the methods of

calculation. It is mainly done so that it can be applied to the job. IT application stands out to be a
bit familiar with the calculation method that can be applied to the job. IT comes up with a huge
number of applications in the domain of oil and gas (Brun and Urazaliyeva 2019). The
technology has ultimately helped the industry to carry out some deepwater exploration in the
Gulf of Mexico. Also, it has helped in other discoveries, along with reducing the overall impact
on the environment. Information technology comes up with the potential to create some long-
term growth that ultimately resulted in improved productivity in various industries.
Sumbal, Tsui and See-to (2017), has highlighted five external forces which are impact is
huge to the organization. The technical response to this is that only 61% of the technological
development stands out like a critical kind of external force. There are around four areas of oil
and gas production acknowledged as technological development, efficiency in cost, cycle time
for production, high maintenance and production, and lastly, environment.
In order to succeed, all the oil and gas companies need to focus on improving its
operational efficiency that is in terms of drilling and production. The point should be noted that
operation can take advantage of all the asset data in the provided time by making use of some
sophisticated tools and techniques (González-López and Giampietro 2018). It will ultimately
help in improving the domain, reducing the overall cost of operation, and ensuring overall safety.
It merely comprises two parts that are upper and lower. The upstream areas highlight the
exploration and production of both oil and gas products. All the main phases completely include
exploration that is aerial prospecting (first stage), exploration and drilling (Second stage),
development and production (third stage), and lastly, dismantling and rehabilitation (final stage).
On the contrary, downstream completely refers to various domains with complete refining and
oil processing of both oil and crude gas products (Gonzalez-Lopez and Giampietro 2017).

Downstream focuses on various domains like refinement, oil process and gas products,
transportation, distribution, and commercialization.
This process and system require complete involvement of production, refining,
exploration and commercialization of both oil and gas, which is very much complex, capital
intensive and needs cutting edge technology (Gunasekaran, Subramanian and Papadopoulos
2017). The domain of oil and gas completely includes some of the complex IT tools needed for
refining operation, joint venture accounting, the process of sales and distribution. Besides, this
focuses on the planning application and maintenance of the plant.
2. Main challenges that affect the oil and gas industry
None of the industries on the global platforms need a diverse human, political,
technological, and mechanical capacity for oil and gas production and exploration industries
(Khan et al. 2017). There has been an ongoing competition for natural resources that has forced
the organization to explore and produce a much hostile approach where some simple task in
logistics stand out to be a bit difficult and even costly. Diversifying the environment stands out
to be unacceptable and challenging due to its complex nature (Scholvin et al. 2017). Even some
of the smart monitoring makes use of a downhole of the sensor, which will help in the monitor
well and is vital for development in the industry.
New technologies within the current system, tools help in providing a global platform for
business partners. This merely focuses on potential and useful data that is being captured and not
generally stored or distributed to any person who can make use of it (Jafari and Nair 2018).
Some of the complex problems with respect to production are sanding, which comprises of sand,
penetration, plug well, and negatively impacting the overall production. It merely requires a

complete understanding of the production issues and tools for its analysis. This merely focuses
on determining some of the historical patterns.
Transformation of the collected data stands out to be useful and relevant for all the
information which makes the critical decision in business. It stands out to be one of the main
issues which this industry is addressing at present. Taking into account the manufacturing
organizations, the supply chain stands out to be a bit complex, which is a combination of various
materials, information and capital (Lu et al. 2019). This particular complexity has given rise to
various issues like reduction of visibility within the operation in the organization. The point
should be noted that inefficiency often leads to poor performance and productivity (Mäkitie et al.
2018). In addition, this also results in inadequate storage of information or even data standing out
to be a shortage of measures needed for proper decision making (Tasmin and Muazu 2017). It
will ultimately result in enhanced compliance standards, which ultimately shortens the overall
product lifecycle.
3. Turning data into intelligence
As a result of the capabilities of the current monitoring system, it can easily produce
around more than a terabyte of data in a single day. The demand approach stands out to be
important for data access and its analysis (Rana, Vinoba and AlHumaidan 2017). Information is
completely based on the change in pressure and temperature with changes in the pump effect and
composition of the fluid. Various kinds of architecture highlighted the slow kind of
interdepartmental communication. Considering the on-demand approach, it can easily provide
some business value by allowing the organization to change these data into information. All
these can be easily directed to the right individual in the right instance by making use of remote

views. For the on-demand field, data is not only collected and stored. These mere scrubs
calibrate and normalizes. In the real-time, data can be easily fused and analyzed with various
kind of stream. This merely allows various kinds of companies to prevent some of the costly
events like failure of the pump (Stephenson and Agnew 2016). By complete data analysis of data
against multiple historical respect, on-demand oil and gas companies lookup for predicting future
performance and efficiently solve the problem. A complete kind of hierarchical analysis of the
wealth of data created by domain help in building machine learning. This merely allow the
analysts to predict various events and stages of intervention based on historical events. The
reservoir can be analyzed at any time for trends in data, which highlights that analysts do not
need to wait for some critical targets.
4. Digital transformation value
It merely focuses on accessing some of potential digitalized management for the domain
of Oil and gas Industry. This merely aims in unlocking some of the benefits in the industry,
along with enhancing the overall efficiency (Scholvin et al. 2017). As per world economic
forum, it is that digital transformation in oil and gas industry will generate around 1.6 billion in
the industry in the upcoming 10 years for society, industry and customers. It has been expected
that the total cost of digitization will enhance to 2.5 billion for the present structural and
operational aspect. The impact of future technologies like the intelligent community is
considered (Mbugua and Namada 2019). It is expected that digitization will result in 1 billion
dollars for the Oil and Gas organization. Digital transformation in the industry can easily benefit
society for around 640 billion dollars. The United States, using improved production, can easily
reduce the overall consumption of water. Environmental benefits are inclusive for a reduction of

1.3 billon tons of carbon dioxide emission (Brun and Urazaliyeva 2019). This will ultimately
result in saving for around 800 million gallons of water. It will prevent the oil spills to around
230,000 barrels of oil.
5. Oil price trend
Trends in Oil price is dropping at a dramatic rate since the year 2013. All the trend forces
in Oil and gas organizations focus on minimizing and optimize the investment and put much
more innovation for sustaining of performance efficiency (Sumbal, Tsui and See-to 2017). All
these organizations have implemented technology as a strategic solution in order to reduce the
impact of oil price reduction. The research merely focuses on how information technology
management performs in major oil and gas companies in countries like Oman (González-López
and Giampietro 2018). The study merely focus on design a role model behind the
implementation of an organization in Oman.
Gonzalez-Lopez and Giampietro (2017) has highlighted that Oman is one of the country
which highly depends on Oil and Gas Resources. Around 50% of GDP of revenue for this
country comes from Oil and gas. It is expected that 64% of the total export earning comes from
this sector well. Oil and gas sector has entirely sustained the complete economy of Oman for
various years. There was a moment where 5.5 billion barrels of crude oil reserves and can be
accounted for. In the upcoming days, the oil reserves will be depleted in used in a similar way.
The decreasing price of Oil barrel stands out to be another factor in the middle of 30 US dollars
that is towards the third quarter of 2015.
Since the year 1970, Oman become one of the oil center economies in the region of the
Middle East (Gunasekaran, Subramanian and Papadopoulos 2017). The whole industry of oil and

gas developed a lot in the last decades. A range of new exploration and product technologies
have been introduced in the Oil and Gas industry for better productivity.
6. Current IT structure in some of the O&G companies in the GCC region
A- The IT manager of the Kuwait National Petroleum Company (KNPC) that was
established in the year 1960, reports to the Deputy Chief Executive Officer (C.E.O.)
Projects (3rd Level)
(source: https://www.knpc.com/en/about-us/organisation-structure/knpc-directory)
B- The organization of Saudi Aramco was founded more than 80 years earlier and it is
organized into distinct business departments. All the departments are leaded by an
executive of corporate management.
(Source:https://www.saudiaramco.com/en/who-we-are/our-corporate-governance/corporate-
management)
C- The IT Steering Committee (ITSC) of the organization of Emirates National Oil
Company (ENOC) that came into existence in the year 1993 aims to implement
efficient ‘business solutions’ that will help in achieving the goals of the organization.
The ITSC is responsible for monitoring the information technology functions and its
associated operations of the company. The department has a Chief Executive officer
as its chairperson and comprises of the members from the Executive Management
Committee (EXCOM) as well as the Director of the department of IT. The respective
organization of IT and the committees responsible for project steering provides with

the detailed strategies and implements it. The ITSC is only responsible for planning
the activities and controlling the functions.
(source: https://www.enoc.com/en/About-Us/Corporate-Governance)
D- The Information and Communication Technology (ICT) department commits to the
petroleum organization of Qatar Petroleum that was founded in 1974, to help in
accomplishing its mission and vision. The ICT department ensures the maximum
utilization of its skilled human resources to enhance the performance activities in
business, increase business scope, minimization of risks and generating repots on
real-time data to add value to the business processes of the organization. The
department involves the QP directors and external stakeholders to leverage on the
ICT strategies, new-age techniques, services as well as operations in all the
departments. The ICT enhances the petroleum company to emerge as a leader in the
progress of the developing strategies and national idea of Qatar. It efficiently
manages the programs of QP, an example being the Intelligent Oilfield (IOF)
enterprise. ICT aims to contribute significantly to the company by increasing the
production up to 10% and increasing the oil-field life span for a few decades. The
company incorporates a yearly sales of $40 billion and thus finds the aim of ICT to be
beneficiary in business aspects. Due to its efficiency in the technological strategies
and services, the sector of ICT is quite popular in the IT development of the State of
Qatar. The renowned organizations of oil and gas in Qatar as well as other
government enterprises recognizes ICT to seek help and considers it as a trustworthy
source for IT services.
(Source: https://qp.com.qa/en/AboutQP/Pages/CorporateProfileDetails.aspx?CID=11)

E- The IT management is not visible in the structure of corporate management for the
company of the Bahrain Petroleum Company that was recognized in the year 1932.
(Source: http://www.bapco.net/en-us/about-bapco/corporate-governance)
7. Main Oil and Gas companies in Oman
The three different streams of the oil and gas sector in the regions of Sultanate of Oman are the
upstream, downstream and the midstream.
The upstream sector consists of only one single development company, the organization of
Petroleum Development Oman (PDO), which in turn consists of several other exploration as well
as production companies.
PDO is leads in the upstream collection of companies in exploration and production. The
organization not only delivers the largest amount of oil and natural gas in the throughout the
nation but also focuses on maintaining their standards and sustainable development both inside
and outside of the industrial sector (Singh et al. 2018). The owners of the Company are the
Government of Oman (60% stake), Shell Group (34% stake), Partex (2% stake) and Total (4%
stake). PDO incorporates limited liabilities and assets and thus believes in no-profit, no-loss
operations (Mohammed 2016). It is neutral on revenue and the gas field, refineries are all on
behalf of the government of PDO. The capital expenditure (Capex) of PDO in 2017 as US$5.8
billion while the operating (Opex) was of US$1.8 billion, thereby representing a reduction by 0.7
billion.
The Royal Decree in the Sultanate registered PDO as a company with limited liabilities in the
year of 1980 on 1st January (Khan and Al Fazari 2016). After embracing its name in the year

1951, the company for the first time broke oil at Yabel in 1962 after which it is continuously
exporting ready-made oil of Block 6 in near about 90,874 km2 area of concession. The
headquarters of PDO is at the location of Mina Al Fahal of Muscat. According to the annual
report the organization has its operations in 178 oil producing fields, 14 fields of gas, 21
production stations, and 10000 and exceeding wells, in excess of 18,500 kilometers of pipelines
and flowlines and 154 operational units that includes 46 rigs and 35 hoists (Al Salmi and Khan
2019). The Oman Gas Company (OGC) on the other hand, handles the midstream operations
since the year 2000 by incorporating a vision of becoming a global infrastructure of hydrocarbon
operator and building a sustainable, valuable and safe business.
A midstream natural gas company established itself in the Oman Sultanate in the year 2000.
OGC shared its membership in the Oman Oil Group since 2013, prior to which it was a closed
company of joint-stock between the two organizations- the Ministry of Oil & Gas (80% stake)
and Oman Oil company (20% stake). The concession rights of OGC’s granted by the Oman
governance includes proprietorship, construction, preservation, and maneuver of natural gas
amenities (Al-Quwaitai and Krishnan 2016). Gradually, the company evolved to an integrated
business comprising of the natural gas transportation and delivery through various networks of
pipelines, compressors and gas supply units (Shezawi, Ali and Khan 2018). OGC is responsible
for distributing gas to major economic and critical customers including the steel and cement
plants, refineries and so on. Apart from delivery, it specializes in project management operations
for constructing pipelines. These services include planning, construction, and feasibility research
to support in all stages of commissioning.

One of the industrial sector of downstream is Orpic that came into the industrial sector in 1982
comprises of various refineries as well as petrochemical plants throughout the nation (Al Ghafri
et al. 2018). The company aims to achieve an outstanding position in all operational aspects.
The CEO of Orpic, Ahmed Saleh Al Jahdhami proudly highlights that the company has been
growing since the Grow Projects Journey of 2015 and will amplify the asset base by $9 billion,
while the growth in product portfolio will be by four million tonnes per year of Fuels and
Plastics (PORKODI 2020). Orpic is also one of the renowned organizations of Oman and is
growing at a huge pace amongst the oil industries of Middle East. The refineries of the
organization in Muscat and Suhar regions responsibly supply fuel, plastics and other products of
petroleum worldwide (Jafari and Nair 2018). The owners of Orpic are the Oman government and
the Oman Oil Company. These two companies made the product organization Orpic to achieve
their ambitious plans of growth by effectively integrating their processes and petrochemical
activities. The company incorporates an employee base of 2600 employees in the integrated
refinery of Oman who works towards a common business goal (AlZadjali et al. 2020). The
organization is inclined in accomplishing three development projects in order to meet the needs
of Oman and the international markets too. The projects are Muscat Suhar Product Pipeline
(MSPP) in 2017, Suhar Refinery Improvement Project (SRIP) 2017, and Leiva Plastic Industries
Complex (LPIC) 2020 that will add business value to the oil and gas sectors of Oman.
Furthermore, the company also focuses on safe work environments and maintains safety in its
operations in the communities it works. It serves the organization of Oman and its customers
with pride.

The above three organizations have their unique organizational structure and
considerably invests huge money in advancing their technologies and for maintaining their
processes and controls on a regular basis. Moreover, computerized IT services are used in the
organizations that positively influences their management systems. It also increases ambiguity
amongst the authorities and other roles of IT management.
8. An overview of IT management in the selected companies:
According to the short-term investigation of the researcher about the role of IT in the above
selected companies, it is found that the management level of IT is not in the executive
management suite. The IT managers in this model were not responsible for implementing
strategic decisions, rather they were responsible only for providing service. Thus, the
stakeholders who depend on the IT infrastructure progress are quite confused about the role of IT
management in their companies (Sumbal, Tsui and See-to 2017). The impact of IT is
experienced in every level of the organization that contributes to uncertainty of the role of
executives in IT management. However, the researcher from experience found that the IT
managers face problem in retaining talented experts due to their lack of authority in the
organization.
Considering Orpic as an example, the organizational structure of the company does not even
incorporate an executive level for the management of IT department in the company. The IT
manager has to report to the general manager of corporate service support (Gaisina et al. 2017).
The same structure is established in the Oman Gas Company as depicted in the picture (2).

Again the organization of PDO also do not incorporate a top-level IT committee or
management for managing the technological operations and services. The different departments
in the company verbally communicates with the general manager of external affairs regarding
the IT management and affairs. According to him, information can be gained about the structure
only if the management grants permission on the letter from the end of the researcher.
Figure 3: OGC organizational structure (OGC website)
The environmental changes such as socioeconomic changes, the legislative changes,
technological as well as globalization changes influences the strategies of the company at a
significant rate. However, dealing with these changes makes the Information system more
complex and aggressive due to increased competition (Annamalah et al. 2018). Now, for a
company to survive in the market it has to overcome the issues with the changes in the external
as well as the external environment and thus would require a policy that will be able to
incorporate with the changing requirements. The policies should align itself with the
technological services and vice versa to ensure smoothness in the business activities as well.

Hence, the company should consider the management of its technological services and
associated activities as its primary objective. The focus of the research is to deal with the
efficiency of the IT management services within the Oman oil and gas sector and how it
proposes for the exact authority level for managing IT operations (Brun and Urazaliyeva 2019).
In addition, it will focus on the measures that can be taken for the optimization of the use of
resources. With the help of a model, the experimental study will determine the roles and
responsibilities of a Chief Information Officer that will be apt for the Oil and Gas Industry in the
Oman for improvement in quality and increment in production of the selected companies.
The core profile of an IT manager includes accuracy in his tasks, preventing errors in IT
management, managing tasks and setting up the budget and human resources of the project
(Munir 2018). Hence, this research will explore the gaps in the existing model. It will also
determine the positive influences of incorporating an IT management that will enhance the
overall performance of the companies.
9. IT management overview and background
Although the IT managers do not perform a technical role, yet they need to have an accurate
knowledge about the technical terms for conversing directly with the employees while running
the IT infrastructure. Leading the IT department, the manager is responsible for carrying out
sustainable IT operations of the systems that exist already with optimum reliability and quality.
The performance of an IT manager are expressed in number according to the Key Performance
Indicator metrics such as the charge per headcount, downtime days, the rate of success in
achieving project goals, achievement of milestones and support of quality ratings. The decision-
makers in IT feel excluded compared to the other technical leaders of various departments in the

organizations. They are not at all satisfied with their roles and responsibilities and doubts on their
authority to influence the strategies of the company or change the perception of people on their
role (Nascimento et al. 2019). Hence, the stakeholders that rely on the activities of IT
management face ambiguity that leads to job dissatisfaction, high employee turnover, tension
and other similar issues.
The significant challenge of the IT managers is the breakdown in the organizational silos
that incorporates a reflective impact on the bottom-line of the company. The narrow-minded
thought process while making decisions can lead to inconsistency in performance, wastage of
time, and increase in cost of operations. It is the duty of the IT managers to ensure reduction in
silos and responsibly apply a cross-functional, systematic approach that enhances the profit of
the organization.
10.Executive IT management
The executive roles in IT departments such as Chief Information Officer (CIO) or Chief
Technology Officer (CEO) are capable of capitalizing for increment in production and
enhancement of standards that will result in a sustainable work atmosphere.
It is believed that technology” can involve many different things, ranging from the use of
robotics in internal processes to the latest" everything as a service”. Hence, the question arises
for role of the CTO in an organization that if the companies incorporates chief technological
executives, are chief technological officers still responsible?
With the progression of Information Technology in the decade of 1990-2000’s, the CIO’s role
was directly linked with the production strategy of CIO. In this experimental research, the
researcher accepts the link between the two roles. Rather, it is believed that the manufacturing

companies worldwide requires an executive role in the IT for better understanding of
technologies and how it will affect the customers as well as the products. It is suggested that the
executive role should be a technical director who will efficiently conduct the technological
operations in the oil and gas industry of Oman in spite of the presence of a CIO since early
1990’s.
The IT leaders need to understand the business goals and take advantages of the IT opportunities
and bring in advanced solutions that will be beneficial for the organizations. They can implement
their knowledge in various departments of a business such as supply chain, marketing,
operations, planning and control processes and add IT value to them to enhance the operations.
According to McKinsey's research, a company that incorporates IT infrastructure developments
and integrate the services of IT, aligning it with the business goals, stand out to be more
successful than the ones who do not care about it. They have identified the eight necessities of
innovations that include the transformation of technological insights into winning propositions.
The more a company integrates these essentials, the better it turns out to be their performance.
The aim of conducting this research is to increase the business production in the
industries of oil and gas, making it competitive in the market and thus, demonstrate the
importance of IT management and its ongoing services in transforming IT and proving its
swiftness.

Research focus
The minimum accessibility of the academic knowledge of the oil and gas industry related
information technology (IT) management provides an encouragement to the researchers for
illustrating the knowledge based model of the management of Information Technology industry
(Yusuf et al. 2014). By integrating this courage within the fact, it shows that the Oil and gas
industry based companies have less likings for maintaining the business strategy in digital way
for overall company making with a comparison with another sections (22% vs. 32% for all types
of industries), 53% of the industries have strong strategy which relates with either by the
organization or inside business units.
(Source: THE TRANSFORMATIONAL CIO, Harvey Nash/KPMG CIO Survey 2018)
Research problem
The relation between IT and top management and impact on performance

The IT management of the Oil and gas industry has comprised the revolution process
digitally and this management is presently discovering a diverse ways for digitizing their work
which involves digital twinning as well as physical and also intellectual behavior based robots,
equipment for digital workforce and also Attachment of digital ecosystem along with the
customers or suppliers and also another stakeholders.
Digitization which includes the robotics and also artificial intelligence is considered as a
critical tool enabling the longstanding efficiencies in order to achieve the improvement of the
cash flow. For that, the potential as well as confusing digital strategy, the organization is
searching such ways for giving the new shape of the business processes to obtain the benefits of
digital age.
Based on the present study of the PricewaterhouseCoopers, the existing companies across the
world are trying to make the new leadership positions (Perrons and Jensen 2015). Moreover, as
per PwC results, there does not remain any backlog: oil and gas related industry.
It has been showed from the results that out of 2500 biggest public oriented companies across
the world, only 19% of the companies had nominated CDO at the finishing time of 2016, there
happens the importance of the increment of 6% in the year of 2015. It has been also showed from
the survey that 3% of organizations based on the Oil and Gas industry included to make the
appointment in 2016, 5% are considered as the metal or mining companies or public services
along with the 12%. The involvement of CDO was mentioned as very popular insurance sector
and as 35% respondents made the positions along with the media based companies with 28% and
the banks with the 27%. Another segments enclosed within the survey including the medical care
involving 19% within CDO, or automotive business with 15% and also tourism business with

14% (Lu et al. 2019). This survey describes that 60% of the appointments were created from the
year of 2015.
Few trends make a reflection for moving toward the more advanced technology based digital
ability takes place within the organizations, the report that originates along with the statistical
results prepared by PwC’s Pierre Plato, Matthias Herzog and Olaf Acker told that it seems like a
surprising element that the oil as well as gas industry has been conducted with slow motion for
making the leadership promises. It is referred as healthy and most of the times, understandable
however, if any of the non-technical based methodologies fails for performing, therefore there
remains lots of money within the risk factors. It is obvious reason that the ignorance of the
selection of CDO may not indicate the correct indication of organization’s focus on the digital
technologies, it may behave as the indication of the process of implementing such technologies
for streamlined efforts.
PricewaterhouseCoopers (PwC) authors Stated, “At the beginning of the transition, various
business units and corporate functions run broadcast experiments and pilot programs in hopes
of reviving their digital efforts. However, once a company decides to devise a coherent and
global strategy to reap the benefits of digitization, this decentralized approach will no longer be
sufficient”.
The employees of the oil and gas industry have provided the indication that they require
additional high quality based professionals in the area of the digital technology. The
requirements of IT skills of respondents in rising (greater than a third), as the technological
advancements are attached with the requirement of the decreased cost and also makes an
improvement of the efficiency to discover the digital fields (Shukla and Karki 2016). Depending

on PwC, digital categorization is mentioned as the fundamental issue for the organizations
regarding the conversion. A current study is done on digital IQ searched that the absence of the
qualified team for reaching the desired outcomes from the investments in the digital technologies
in measured as a major obstacle. 61% of respondents are categorized as the remaining of the
requirement block. In the other case study, from the survey, it has found that only 46% of CDOs
were considered as the external employees.
The authors of the PwC also observe the other obstacles that the organization have faced
after confirming the appointment with the CDO. At the time of employing with the digital
strategy, the new kind of CDO class may face so many significant obstacles in the completion of
their roles: ad hoc digital actions covering on a huge organization except the central
organization; Old-style culture that differs the changes; a gap in the requirement talent; an old
systems and also structures that provides the threats for destroying the ambitions.
The board of the directors cannot observe Information technology as the leading business
related change but in spite of offering the establishment for the business transformation
(Avgerou and Walsham 2017). They keep on trust that it is not possible to understand the
organizational strategies by the IT and for that cannot utilize the fast IT way for the advanced
business process.
Presently, the oil and gas companies are searching a very series for making a review of the
organizational structure for fitting with the strategic direction so that it can create synergy with
the help of different operation. It is correct timing for helping the oil and gas organizations in
Oman for putting the IT management on the important synergy based organizational structure.

How the IT management team help to reduce the significance of the price of the oil reduction
across the globe from the year of 2013 in the performance of the oil and gas industry in Oman?
At the previous year, it has been seen that in the year of 2018, the oil or gas and also
chemical industry related survey has directed by Deloitte exposes the rising confidence which
turns the more favorable for the business environment. Management is highly expected from the
oil and gas industry prices in 2020, than the previous year and has the high depositor confidence
as well as expectations for the economic development. Drift and also chemistry are referred as
most reliable things. Top management level has predicted that the artificial intelligence as well
as machine learning, and also analytics having the most significant reflection because of the ROI
and also proved role in order to achieve the particular business goals (Gelenbe and Caseau 2015).
Digital play as the vital role to accelerate the innovation in digital sectors and transformation of
the production.
The actual reason for the absence of the training which describes that most of the companies
have no administrative teams who are accountable for technological change. (In a 2016 survey)
McKinsey told to search exact CXO from various CXO which is accountable for identification
and also implementation of the state-of-art technology for the business. Each of the companies
requires a person.
IT Capability and Firm Performance
Source: Mikalef, P. and Pateli, A., 2017. Information technology-enabled dynamic
capabilities and their indirect effect on competitive performance: Findings from PLS-SEM and
fsQCA. Journal of Business Research, 70, pp.1-16.

The resource oriented view of the IT provides a suggestion that an organization can differ
themselves in accordance with the IT resources. An IT infrastructure of the organization, along
with the social skills and also their capability for leveraging the IT for the intangible advantages
includes the organizational resources which combine together to produce the organization based
IT capability (Schiller 2014). During every individual IT related resources is considered as too
complex for acquiring and it is too much difficult for initiating which helps to achieve the
competitive benefit by the IT also learning for combining the IT related resources efficiently for
creating the overall IT ability. For an example, a flexible IT related infrastructure combing with
the human IT related skills develops the potential organizational capability. Knowledge about
productive application of the IT and also how the individual IT related resources combined for
making the superior applications develop the embedded in those companies in terms of the
organizational routines (Nelson and Winter 1982), for boosting the IT skill of the firm. Those
organizations successfully build the IT related abilities having the financial performance as well
as decreases the incomes and also cost of the subsidiaries.
Firm performance Related to Information Technology Investments
Source: (Holdaway, K.R., 2014. Harness oil and gas big data with analytics: Optimize
exploration and production with data-driven models. John Wiley & Sons.)
Earlier reports have failed for capturing positive things of IT costs, when recent reports have
exposed more inspiring results (Gunasekaran, Subramanian and Papadopoulos 2017). Moreover,
the researchers designated that the productivity increases were higher in fact of the
manufacturing area than in services sector. Also, earlier reports at organizational level do not
shown that savings in IT results to productivity. That considers due in portion to insufficient

facts on the IT savings and also the small model sizes. (Eckert 2015). Chuang and Huang (2018)
gave four clarifications for existence of paradox. Measurement mistakes of the input and output
variables utilized in different studies. Postponements in the IT influence because of training as
well as adaptation. Rearrangement and delivery of the profits. And improper IT management.
The latter cause happens while the managers reproduce another managers' investment oriented
decisions and avoid the consequences of the valuable material or overkill because of overview of
the new technologies which have a strategy related structural reflections on organization. There
happens possibility. Ruqaishi and Bashir (2015) named for the extra research on the process of
how IT involve in more production, specifically identification of the right combination of
development and innovative strategies, rather business processes as well as organizational
structures which matches the IT investments. However, various studies assessment the
association between the strategic arrangement and also the individual organization performance.
Few results were created for being positive (Olaniran 2017), when the others showed a
combination of results. Moreover, some reports make an investigation for creating a linkage
between the strategic arrangement and also objective of the accounting/market organizational
performance (Halabi, Al-Qattan and Al-Otaibi 2015); whereas some reports (e.g., Bergeron and
Raymond, 1995) considered the connection between alignment and also organizational
performance by utilizing received performance indicators as well as objectives. Depending on
the initial discussion based on this study, it appears that the MIS researchers have planned a huge
range of estimation of performance indicators for the company. Moreover, the subjective
indicators were desirable to goals meanwhile it was revealed that the subjective indicators not
only reproduce a broad concept, like business performance, but also attach with the

organizational strategy along with the results. However, this report needs more research in the
development and also developing countries for overcoming the problems.
Research significance
Administrative IT management are accountable for evolving because of the dangerous part of
the IT in all of the processes as well as services. In addition to this, academic research requires
for elaborating on the part effects reflections of the entire Oman’s oil and gas industry
effectiveness.
This report will concentrates on practical part of the IT management inside the Oman oil and
gas industry and suggest the correct level of the authority of the part. Moreover, it will
concentrates on the process of how the practical measurement helps for optimizing the assumed
resources (Tiu and Advincula 2015). By using a model, this report will plan the executive role
that attaches with the O&G industry in Oman for making the improvement of the quality as well
as productivity inside selected organizations.
Research Objective
1. For studying the implementation of the IT management in the upper hierarchal point in
O&G companies in Oman?
2. For determining the correct level of the authority should be decided to IT manager for
affecting the process mapping as well as HR application, and also technical rules in the
O&G industry.
3. For taking the measurement the association between the IT management along with the
organizational values strategically.

Research question
1- Is it necessary for implementing the IT management in top management of the O&G
Company’s management in Oman?
2. is there exist any the correct level of the authority decided for IT managers that reflects
process mapping as well as HR operation, and also technical rules in the O&G industry?
3. Does the IT management expose the organizational strategic values?
Research aim
To make a coordinated IT management based model inside top management team (TMT)
in the area of the oil and gas in Oman, the actual goal of the research designed for studying the
effects of IT management related level as well as power, and also authority and their relation to
the company’s performance. The desired model will detect and recognize the gaps in the three
largest companies.
Moreover, this report goals for improving the literature based knowledge of the oil and
gas IT management related perception to the company’s performance efficiency, for producing
the correct model of the IT management which fit the O&G sector in Oman.
Research contribution
The inclusion of information technology is a hugely acknowledged field that is crucial for
the efficient operation for all managerial activities within industrial systems. One of the most
promising sectors where the Global recognition has been gained with the inclusion of
information technology is the economy of Arabian regions that has increased substantially in the

past few years. The demand of Information Technology Services has increased in the oil and
natural gas companies under the pressure for achieving a higher return on the capital Assets and
Investments in a much and secured manner.
There is requirement of driving hire asset reliability, and at the same time it is required
that productivity and performance is managed with the growth of demand from the clients and
the other accessing organizations for oil reserve. Competition in the oil and natural gas industries
has also increased a lot in the past few years and that for the discussion about the inclusion of
information technology in oil and Natural Gas sector is extremely important not this for the
petroleum industry but for the major sectors of the oil and natural gas industry with their
operations following upstream and downstream and midstream.
The use of information technology in a developing country in Oman has played a
remarkable role in the emergence of the economy for the country that has made it one of the
most important economics to study about. The country has its own leaps and bounds and the
Global market analysis expects that the inclusion of Information Technology into the market of
oil and natural gas industry in Oman has a possibility of purchasing about 132 billion US dollar
equivalent from the current 50 Billion US dollar equivalent in the recent year. Being one of the
most important sector and most promising industry, the amalgamation is extremely important to
study because of the Global source of growth and employment. The potential of the Information
Technology Sector is extremely high for the market of oil and natural gas industry to write to
competitiveness with a healthy GDP. In association to that there is a chance of improving the
defense capabilities as well as the meeting up of energy and environmental challenges.

The inclusion of Information Technology industry with only Oil and Natural Gas sector
has played a huge role in making Oman one of the most important economics to study about in
the international map. There is extreme high demand for oil and natural gas projects and
contribution to the operations using the different sectors can only be adjusted with the utilization
of Information Technology Sector. Now the uses of computers in every industry has progress at
such a point where the engineers are much more familiar with the calculation procedures applied
to operational work. Similarly for oil and Natural Gas Industries also it is equivalent that the
people within this sector for Oman is a custom to the applied calculation procedure for handling
operational work. Similar to this the IT applications are also used throughout the extensive
functions within the petroleum sectors.
It is also found that the technology inclusion has enabled the in oil and natural gas
industry to explore much deeper into the Gulf of Mexico such that many discoveries where made
which has a minimizing impact for the environment as well. The introduction of information
technology to this industry has a much bigger potential of raising a long term growth prospect for
height and productivity within this sector. There is a high chance that the external forces would
be impacting on the organizations in Oman and the external forces can only be stopped with the
progress in technology for the organizations. It is also to be kept in mind that 61% of the total
Technology progress contributes to the external forces and therefore Technology advancements
can be applied to for specific general areas in the oil and natural gas organizations affecting the
productivity. These are the cost efficient ways, production cycle time, higher recovery and
production and the environmental factors.
Not just only cost efficiency but the introduction of performance efficiency is also
affected by the information technology inclusion in the oil and Natural Gas sector. Among the

Global capacity of refining, Oman is one of the highest consumers in the world. Out of several
Fortune 500 organizations, some of them belong to the Organizations in Oman mostly belonging
to the petroleum sectors. There is a requirement of continual enhancement of the organizations
and for this it is efficiently important that the Oil Companies must be contributing continuously
for raising the operational efficiency of the organization both in the case of drilling and
production. The operators are finding it easier to leverage the real-time asset data with the
utilization of analytical tools which are sophisticated and state-of-the-art.
These are providing the techniques for optimizing field performance and at the same time
reduces the initial operation cost for ensuring further safety. For this particular industry can be
said that the information technology can walk on two specific parts of upstream and downstream.
The upstream face constitutes of the exploration and production of Oil and Gas product where
the principal steps include exploration serving, appraisal drilling, exploration, aerial survey,
development and production operations and decommissioning and rehabilitation. On the other
hand there is a sector called downstream with mostly deals with the refining and processing of
the product collected from crude oil and gas. The transportation of these products and their
distribution and marketing are also in the downstream sector.
All the processes and systems that are involved with the process of exploration and
production is also aligned with refining and marketing the oil and gas product. But these are
extremely complex with the requirement of state of the art technology and also it is a huge toll on
the capital invested.
There are several functions in the oil and natural gas sectors that work together
simultaneously. These include the finance management, plant maintenance, refinery operation,

sales and distribution process, joint venture accounting, planning and scheduling applications,
health safety and environment management, project systems, materials in inventory
management, quality management, and production planning for process industries, Logistic,
business intelligence and strategic planning. Now with all these Industries working at the same
time there are several challenges that the oil industry face every now and then. There is no
industry in the world that includes a much diversity of mechanical, human, technological and
political capability is done the oil and natural gas exploration and production industry.
There are several natural resources in Oman that drives the companies to explore and
produce in areas that are extremely remote and sometimes even hostile or harsh. There might be
situations where the simplest of Logistic errands can be extremely difficult to put through and at
the same time needs a lot of investments than usual. The environment is also growing in a much
diverse who is that the challenges for oil and natural gas industry is becoming much more
Complex with the requirement of much more skilled human labors, but they are also becoming
scared in number with time. There is a requirement of Intelligence surveillance that should
utilize the down hall sensors so that the industry can move forward. It is required that the
centralized monitoring of all the natural gas and oil well are done overnight with a procedural
change detection which cannot be instituted initially.
At the same time it is required that the data for all these activities are gathered and at the
same time it is analyzed that quickly and effectively in a control environment that it can be
analyzed in the most effective way. But these are all theoretical assumptions and cannot be put
into action practically as the environment are becoming much more hostile making the oil and
natural gas extraction and production to be a monumental task. Now the question remains in the
new technology outbreak that can be e put into action as it has the potential of initiating great

things integrating the innovative technology with the existing systems. Advantages can be added
to the industry by utilizing these tools into the Global network of driving business operations so
that the capturing of data is done in a much more feasible manner.
The collection of data in oil and natural gas industry for Oman is not typically stored on
distributed where the people for the extraction and production division can put it to further the
use. At the same time it is required that the adverse situation is also recorded. Complex
production problems within the system affects the production and therefore issues arise to
critically analyses data for determining the historical pattern. This is where the requirement of
turning the data into a relevant information is Orchid and it can only be solved with the help of a
business critical decision making system with the utility of Information Technology. The main
challenges are faced by the oil and natural gas industry in Oman due to this Complex complaint
standards and a poor visibility of operational data throughout the organization.
The contribution of the information technology within the oil and natural gas industry can
be used for the capability of information technology to monitor the business operation with
single field for generating terabytes of data every day. It is an on-demand approach that accesses
data and analyses as per requirement on real time. The manual ways by which traditionally the
task performed used to perform performance and fluid composition through a temperature and
pressure change where the data was Complex and huge in number. At the same time it is
required that the pumping of performances from Data across the different locations and
architectures can also be done through inter departmental communication with the utility of
Information Technology. The on-demand approach optimize is the operations for delivering
business value with the enabling of the organization for turning the raw data into information so
that it can direct the right person to the right vision of the organization. It makes a particular

person associated with business to reach the targeted goal at the right point of time even for
remote visualization. Therefore it is extremely important that the demand in oil field, data is just
not collected and stored but it is calibrated and normalized in such a way that the data is
transformed into an information from a source. This will provide the optimization of operations
since the analysis of the data to multiple historical references would provide a proper Framework
for allocating the business operations in the most feasible way. At the same time the use of
Information Technology would analyses the operational financial information to customize
workflows and at the same time would maximize the return on investment what are the industry
balancing the maintenance investment, utilizing industry tools and also enabling real-time
analysis and ad hoc query for 360 degree view of the organizational capability.
Understanding these factors would contribute to the research further where this study
would be put into action for a further analysis of a detailed information collection about the
effects of Information Technology and Management and performance efficiency in selected oil
and natural gas companies in Oman.
Thesis structure
The thesis structure has been broken down into several smaller units for the observation
of particular research within the entire study for a detailed observation. There are 5 significant
chapters in the study which are as follows:
The introduction part is the first chapter of the thesis study that briefly define the
undertaken topic which in this case is the effects of Information Technology Management and
performance efficiency in selected oil and natural gas companies in Oman. This food fodder be

used as a reason for the research aims, objectives, research questions and the hypothesis for the
research which would help in conducting the entire study with step by step procedures.
The next chapter would be the literature review chapter forming the second chapter for
the thesis. This chapter would help in analyzing the past theories and concepts that has been
identified with the help of several research studies in a detailed manner for identifying any issues
that has been found by the researcher about the topic. There would be a critical analysis of the
study that has been conducted within this chapter to find out the determinants of the differences
between the issues and barriers within the subject with respect to the other industries in the
Global market.
The next chapter and the third chapter would be the research methodology that will
explain the detail procedure and the technique that are finally utilized for conducting the total
undertaken study. This particular theme would be used for identify the most appropriate and fruit
for procedure such that the research methods would have a proper structure and Framework for
gathering relevant information about the study and make a suitable way of data collection and
analysis.
The fourth chapter would be about data analysis and interpretation that would form the
information about the obtained and gather data through the primary and secondary sources which
would be analyzed with the help of statistical tools in this particular chapter.
The information that has been gathered sofa would be e provided with an in-depth
analysis aligning with the undertaken topic so that the use of statistical tools and data
representation would be appropriate. The validity of the hypothesis is also determined with the
help of this chapter only.

The last and conclusive chapter would be conclusions and recommendations which will
help in linking the analysis part with the objective that has been defined at the beginning of the
research study in the introduction chapter. This particular chapter would provide the analysis that
has been tried to conclude the entire study with the help of and the support of a data analysis
structure and has been obtained from the previous chapter. Based on this Conclusion and
Recommendation the determining success for the conducted study is evolved out so that future
studies can also be conducted with the help of the recommendations made.

Conceptual model
(Source: THE TRANSFORMATIONAL CIO, Harvey Nash/KPMG CIO Survey 2018)
The above model depicting the theory of the relationship between the different aspects in
this particular research begins with understanding the different quality of decisions made in the
oil and Natural Gas sector. It then focuses on the standards followed within the organization and
the level of communication that every stakeholder has for oil and natural gas industry. The study
then shifts to the strategic planning that organizations usually follow in natural gas and oil
industry along with the IT knowledge that is right now put into action in this particular industry
sector. The relationship of all these attributes in the oil and natural gas industry and the power of
authority is compared with the company's performance efficiency which forms the entire subject
of the research finding out effects of Information Technology Management and performance
efficiency in selected oil and natural gas companies in Oman. With this conceptual model the
step by step procedure of acquiring the data and information required to continue the procedure
of research would be collected. This would be done with the help of the researches conducted by
Quality of decisions
Standards
Communication
Strategic planning
IT knowledge Power of authority
Company’s
performance
efficiency

authors focusing on the research topic and contributing to the further inclusion of information
forming the base of the further research procedure. The relationship of the variables to one
another in this particular model take the assumption of the strategic planning of the organization
such that the IT knowledge right now put into the oil and natural gas industry sector for making
strategies wood deciphered the performance efficiency of all the organization, especially for the
companies in Oman.

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