TECHNICAL PROGRAMME | Energy Infrastructure – Future Pathways
Supply Chain Management
Forum 11 | Hall 10 - Technical Programme 2
14
October
14:30
16:00
UTC+3
In the context of global energy landscape reshaping and energy transition acceleration, it is important that oil and gas companies manage their supply chain smarter and greener with digital technology and artificial intelligence. Better infrastructure, optimal process and closer partnership is also essential. This forum will discuss the latest research and best practices on supply chain management, including strategic planning, infrastructure, process management, partnership, risk management and artificial intelligence.
Following its maturation in China's consumer finance sector, supply chain finance (SCF) is now expanding into industrial finance, with the natural gas industry attracting growing participation from diversified stakeholders. This paper analyzes the current developmental stage of natural gas SCF, identifying critical challenges including:
Operational Architecture:
Technical Infrastructure:
Empirical evidence demonstrates dual value creation:
Strategic Recommendations for Industry Advancement:
Regulatory Innovation:
Ecosystem Development:
CSR Enhancement:
This framework addresses key industry pain points by:
- Multi-stakeholder coordination gaps: Fragmented collaboration among participants
- Disjointed integration of "four flows": Mismatches among logistics, information, capital, and energy flow. T
- The study proposes blockchain-powered solutions to enhance SCF systems through three strategic dimensions:
Operational Architecture:
- Smart contract-driven transaction ecosystems
- Dynamic financing mechanisms with automated risk triggers
Technical Infrastructure:
- Hybrid blockchain platforms integrating permissioned chains (for core enterprises) and private chains (for SMEs)
- Privacy-preserving modules using zero-knowledge proofs (ZKPs)
Empirical evidence demonstrates dual value creation:
- Economic benefits: 28-42% reduction in financing costs for SMEs (Yangtze River Delta pilot data)
- Social value: 19% improvement in energy flow traceability compliance, crucial for carbon credit verification
Strategic Recommendations for Industry Advancement:
Regulatory Innovation:
- Develop energy-flow integrated regulatory frameworks under China's dual carbon goals
- Establish digital sandbox mechanisms for blockchain-finance convergence
Ecosystem Development:
- Build core enterprise-led consortium chains with tiered node networks:
- Tier-1 nodes: National oil companies (e.g., CNPC, CNOOC)
- Tier-2 nodes: Provincial pipeline operators
- Tier-3 nodes: LNG terminal operators
CSR Enhancement:
- Implement graded CSR evaluation systems for anchor enterprises
- Introduce blockchain-based green finance incentives
This framework addresses key industry pain points by:
- Providing tamper-proof trade scenarios through on-chain LNG documentation
- Mitigating information silos via cross-institutional data bridges
- Reducing contract default risks via smart contract auto-enforcement
In today’s rapidly evolving global landscape, procurement has moved far beyond cost-saving—it has become a powerful lever for advancing Environmental, Social, and Governance (ESG) values. This initiative was not merely a technological upgrade. It was a deliberate strategy to embed ESG principles at the heart of procurement operations. By harnessing the power of digital automation and AI-driven vendor selection, Pertamina achieved remarkable results: an 113% increase in service delivery speed, a 99% reduction in paper usage, and enhanced compliance through automated audit trails. The initiative enhanced operational efficiency, compliance, and sustainability outcomes across all business units.
Background:
This ESG-focused Vendor Management approach is crucial to Pertamina's success. We have significantly reduced our environmental footprint, fostered greater workplace diversity and inclusion within our supply chain, and ensured adherence to rigorous compliance and ethical sourcing standards and also strengthened Pertamina's brand reputation.
Objective:
The project's impact was most pronounced in the following areas: 1) Vendor Registration -transformed the vendor onboarding process to incorporate ESG due diligence 2) Vendor Master Data Management where the project streamlined the management of vendor data 3) Invoice & Payment where we automated the invoice and payment process.
Methods:
The transformation followed a carefully designed 12-month roadmap. The first phase focused on building a strong ESG-based vendor selection framework. In the pilot phase, we tested ESG-integrated procurement models, deployed automation tools, and invested in training employees and new technologies. The final phase saw the company-wide rollout of the system, supported by real-time monitoring and continuous refinement. To ensure meaningful ESG alignment, our processes in accordance with global standards such as GRI, SASB, and TCFD. ESG-specific Key Performance Indicators were embedded into vendor contracts, and strict IT security standards were enforced to protect procurement data. Cross-functional collaboration—Procurement, IT, HR, Finance, and Sustainability teams—was essential to seamless implementation. Knowing that change can bring resistance, we focused heavily on change management. We addressed concerns over automation through comprehensive reskilling and upskilling programs. We built trust and transparency through regular stakeholder engagement, including Vendor-user Day, and open feedback sessions.
Results:
The results were tangible and transformative. Procurement cycles accelerated, compliance rose to 95%, and digital operations significantly reduced our environmental footprint. Cloud migration led to a 35% drop in energy consumption. On the social front, employee satisfaction increased by 25% through training and wellness programs. Our inclusive policies fostered a 75% increase in leadership representation from historically underrepresented groups. It reflects a future-facing commitment to creating not just a more efficient company—but a more responsible, inclusive, and sustainable one.
Background:
This ESG-focused Vendor Management approach is crucial to Pertamina's success. We have significantly reduced our environmental footprint, fostered greater workplace diversity and inclusion within our supply chain, and ensured adherence to rigorous compliance and ethical sourcing standards and also strengthened Pertamina's brand reputation.
Objective:
The project's impact was most pronounced in the following areas: 1) Vendor Registration -transformed the vendor onboarding process to incorporate ESG due diligence 2) Vendor Master Data Management where the project streamlined the management of vendor data 3) Invoice & Payment where we automated the invoice and payment process.
Methods:
The transformation followed a carefully designed 12-month roadmap. The first phase focused on building a strong ESG-based vendor selection framework. In the pilot phase, we tested ESG-integrated procurement models, deployed automation tools, and invested in training employees and new technologies. The final phase saw the company-wide rollout of the system, supported by real-time monitoring and continuous refinement. To ensure meaningful ESG alignment, our processes in accordance with global standards such as GRI, SASB, and TCFD. ESG-specific Key Performance Indicators were embedded into vendor contracts, and strict IT security standards were enforced to protect procurement data. Cross-functional collaboration—Procurement, IT, HR, Finance, and Sustainability teams—was essential to seamless implementation. Knowing that change can bring resistance, we focused heavily on change management. We addressed concerns over automation through comprehensive reskilling and upskilling programs. We built trust and transparency through regular stakeholder engagement, including Vendor-user Day, and open feedback sessions.
Results:
The results were tangible and transformative. Procurement cycles accelerated, compliance rose to 95%, and digital operations significantly reduced our environmental footprint. Cloud migration led to a 35% drop in energy consumption. On the social front, employee satisfaction increased by 25% through training and wellness programs. Our inclusive policies fostered a 75% increase in leadership representation from historically underrepresented groups. It reflects a future-facing commitment to creating not just a more efficient company—but a more responsible, inclusive, and sustainable one.
Petrobras' goods procurement sector has undergone a significant digital transformation, shifting from manual processes to an integrated ecosystem of technological solutions. This evolution has driven operational efficiency, strengthened supplier relationships, and delivered strategic results aligned with corporate values of innovation and sustainability.
The SATRe (Automated System for Purchasing Requisition) stands out as a key innovation, integrating robotic process automation (RPA), statistical models, and machine learning to optimize critical decisions. By automating tasks such as excess inventory analysis, contract-linked purchase order generation, and material transfers, the system eliminated operational bottlenecks. Capable of processing over 50,000 requests in hours and reducing analysis time to near zero, SATRe ensured precision, compliance, and prioritized use of existing contracts. This not only accelerated procurement cycles but also strengthened trust with strategic suppliers, who now benefit from predictable demand integrated into the company’s systems.
Complementing this automation, Planeja_IA introduced AI-driven demand forecasting for materials. Leveraging machine learning algorithms, the tool selects the most suitable model for each item, achieving 80% higher accuracy for most materials analyzed. This precision enabled the creation of more efficient long-term contracts. As a result, Petrobras and suppliers gained long-term visibility, improving production planning and reducing logistics costs. Additionally, minimizing idle inventory and emergency purchases reinforced supply chain sustainability—a strategic pillar for Petrobras.
Another highlight is the SAE (Stock Utilization System). This web platform uses specialized rules to identify alternative materials in stock or available long-terms contracts, optimizing their use. A 900% increase in annual queries (from 25,000 to 250,000) reflects its effectiveness in avoiding redundant purchases. By redirecting excess inventory and existing contracts, SAE reduced operational costs and strengthened collaboration with suppliers, whose contracts are now used more strategically.
Consolidated results from this transformation are substantial: 40% reduction in average contracting time, 183,000 automated annual purchase orders via long-term contracts, and 86,000 annual inter-businesses units material transfers, optimizing corporate inventory. Saving 630,000 man-hours annually freed teams for higher-value activities, such as complex negotiations and market analysis. These metrics underscore not only efficiency gains but also a cultural shift in procurement management, where technology enables more transparent and productive supplier relationships.
In summary, tools like SATRe, Planeja_IA, and SAE demonstrate how Petrobras is reinventing its supply chain. By combining automation, intelligent forecasting, and resource optimization, the company has built a model balancing operational excellence, economic sustainability, and strategic supplier partnerships—advancements that reflect its commitment to innovation and a sustainable energy future.
The SATRe (Automated System for Purchasing Requisition) stands out as a key innovation, integrating robotic process automation (RPA), statistical models, and machine learning to optimize critical decisions. By automating tasks such as excess inventory analysis, contract-linked purchase order generation, and material transfers, the system eliminated operational bottlenecks. Capable of processing over 50,000 requests in hours and reducing analysis time to near zero, SATRe ensured precision, compliance, and prioritized use of existing contracts. This not only accelerated procurement cycles but also strengthened trust with strategic suppliers, who now benefit from predictable demand integrated into the company’s systems.
Complementing this automation, Planeja_IA introduced AI-driven demand forecasting for materials. Leveraging machine learning algorithms, the tool selects the most suitable model for each item, achieving 80% higher accuracy for most materials analyzed. This precision enabled the creation of more efficient long-term contracts. As a result, Petrobras and suppliers gained long-term visibility, improving production planning and reducing logistics costs. Additionally, minimizing idle inventory and emergency purchases reinforced supply chain sustainability—a strategic pillar for Petrobras.
Another highlight is the SAE (Stock Utilization System). This web platform uses specialized rules to identify alternative materials in stock or available long-terms contracts, optimizing their use. A 900% increase in annual queries (from 25,000 to 250,000) reflects its effectiveness in avoiding redundant purchases. By redirecting excess inventory and existing contracts, SAE reduced operational costs and strengthened collaboration with suppliers, whose contracts are now used more strategically.
Consolidated results from this transformation are substantial: 40% reduction in average contracting time, 183,000 automated annual purchase orders via long-term contracts, and 86,000 annual inter-businesses units material transfers, optimizing corporate inventory. Saving 630,000 man-hours annually freed teams for higher-value activities, such as complex negotiations and market analysis. These metrics underscore not only efficiency gains but also a cultural shift in procurement management, where technology enables more transparent and productive supplier relationships.
In summary, tools like SATRe, Planeja_IA, and SAE demonstrate how Petrobras is reinventing its supply chain. By combining automation, intelligent forecasting, and resource optimization, the company has built a model balancing operational excellence, economic sustainability, and strategic supplier partnerships—advancements that reflect its commitment to innovation and a sustainable energy future.
The global energy transition demands urgent decarbonization of fossil fuel supply chains, particularly in oil-producing nations, where gas flaring and methane leaks remain significant contributors to greenhouse gas (GHG) emissions. This study investigates the integration of blockchain technology into oil supply chains to enhance transparency, verify emissions reductions, and unlock carbon credit revenue and contributes to supply chain management literature by bridging decarbonization strategies with digital innovation, offering insights for hydrocarbon-dependent economies navigating climate accountability amid geopolitical constraints. Focusing on flare gas recovery (FGR), a high impact decarbonization lever, we propose a framework pairing FGR systems with blockchain-based monitoring, reporting, and verification (MRV) to address technical and accountability gaps. Key findings reveal that blockchain-enabled MRV systems can mitigate risks of data tampering, streamline verification by international auditors, and improve access to carbon markets. Also, the paper demonstrates that flare gas recovery could significantly mitigate carbon emission while generating revenue via credits and analyzes this concept by economic and technical evaluation of a flare gas recovery system which demonstrates that FGR could reduce emissions by 80% while offsetting 30% of infrastructure costs.
Yan Yang
Chair
Director, Department of Energy Technology
CNPC Economics & Technology Research Institute
China
The global energy transition demands urgent decarbonization of fossil fuel supply chains, particularly in oil-producing nations, where gas flaring and methane leaks remain significant contributors to greenhouse gas (GHG) emissions. This study investigates the integration of blockchain technology into oil supply chains to enhance transparency, verify emissions reductions, and unlock carbon credit revenue and contributes to supply chain management literature by bridging decarbonization strategies with digital innovation, offering insights for hydrocarbon-dependent economies navigating climate accountability amid geopolitical constraints. Focusing on flare gas recovery (FGR), a high impact decarbonization lever, we propose a framework pairing FGR systems with blockchain-based monitoring, reporting, and verification (MRV) to address technical and accountability gaps. Key findings reveal that blockchain-enabled MRV systems can mitigate risks of data tampering, streamline verification by international auditors, and improve access to carbon markets. Also, the paper demonstrates that flare gas recovery could significantly mitigate carbon emission while generating revenue via credits and analyzes this concept by economic and technical evaluation of a flare gas recovery system which demonstrates that FGR could reduce emissions by 80% while offsetting 30% of infrastructure costs.
Hilma Martha Ayu
Speaker
Expert of Change Management Transition & Implementation
PT Pertamina (Persero)
Indonesia
In today’s rapidly evolving global landscape, procurement has moved far beyond cost-saving—it has become a powerful lever for advancing Environmental, Social, and Governance (ESG) values. This initiative was not merely a technological upgrade. It was a deliberate strategy to embed ESG principles at the heart of procurement operations. By harnessing the power of digital automation and AI-driven vendor selection, Pertamina achieved remarkable results: an 113% increase in service delivery speed, a 99% reduction in paper usage, and enhanced compliance through automated audit trails. The initiative enhanced operational efficiency, compliance, and sustainability outcomes across all business units.
Background:
This ESG-focused Vendor Management approach is crucial to Pertamina's success. We have significantly reduced our environmental footprint, fostered greater workplace diversity and inclusion within our supply chain, and ensured adherence to rigorous compliance and ethical sourcing standards and also strengthened Pertamina's brand reputation.
Objective:
The project's impact was most pronounced in the following areas: 1) Vendor Registration -transformed the vendor onboarding process to incorporate ESG due diligence 2) Vendor Master Data Management where the project streamlined the management of vendor data 3) Invoice & Payment where we automated the invoice and payment process.
Methods:
The transformation followed a carefully designed 12-month roadmap. The first phase focused on building a strong ESG-based vendor selection framework. In the pilot phase, we tested ESG-integrated procurement models, deployed automation tools, and invested in training employees and new technologies. The final phase saw the company-wide rollout of the system, supported by real-time monitoring and continuous refinement. To ensure meaningful ESG alignment, our processes in accordance with global standards such as GRI, SASB, and TCFD. ESG-specific Key Performance Indicators were embedded into vendor contracts, and strict IT security standards were enforced to protect procurement data. Cross-functional collaboration—Procurement, IT, HR, Finance, and Sustainability teams—was essential to seamless implementation. Knowing that change can bring resistance, we focused heavily on change management. We addressed concerns over automation through comprehensive reskilling and upskilling programs. We built trust and transparency through regular stakeholder engagement, including Vendor-user Day, and open feedback sessions.
Results:
The results were tangible and transformative. Procurement cycles accelerated, compliance rose to 95%, and digital operations significantly reduced our environmental footprint. Cloud migration led to a 35% drop in energy consumption. On the social front, employee satisfaction increased by 25% through training and wellness programs. Our inclusive policies fostered a 75% increase in leadership representation from historically underrepresented groups. It reflects a future-facing commitment to creating not just a more efficient company—but a more responsible, inclusive, and sustainable one.
Background:
This ESG-focused Vendor Management approach is crucial to Pertamina's success. We have significantly reduced our environmental footprint, fostered greater workplace diversity and inclusion within our supply chain, and ensured adherence to rigorous compliance and ethical sourcing standards and also strengthened Pertamina's brand reputation.
Objective:
The project's impact was most pronounced in the following areas: 1) Vendor Registration -transformed the vendor onboarding process to incorporate ESG due diligence 2) Vendor Master Data Management where the project streamlined the management of vendor data 3) Invoice & Payment where we automated the invoice and payment process.
Methods:
The transformation followed a carefully designed 12-month roadmap. The first phase focused on building a strong ESG-based vendor selection framework. In the pilot phase, we tested ESG-integrated procurement models, deployed automation tools, and invested in training employees and new technologies. The final phase saw the company-wide rollout of the system, supported by real-time monitoring and continuous refinement. To ensure meaningful ESG alignment, our processes in accordance with global standards such as GRI, SASB, and TCFD. ESG-specific Key Performance Indicators were embedded into vendor contracts, and strict IT security standards were enforced to protect procurement data. Cross-functional collaboration—Procurement, IT, HR, Finance, and Sustainability teams—was essential to seamless implementation. Knowing that change can bring resistance, we focused heavily on change management. We addressed concerns over automation through comprehensive reskilling and upskilling programs. We built trust and transparency through regular stakeholder engagement, including Vendor-user Day, and open feedback sessions.
Results:
The results were tangible and transformative. Procurement cycles accelerated, compliance rose to 95%, and digital operations significantly reduced our environmental footprint. Cloud migration led to a 35% drop in energy consumption. On the social front, employee satisfaction increased by 25% through training and wellness programs. Our inclusive policies fostered a 75% increase in leadership representation from historically underrepresented groups. It reflects a future-facing commitment to creating not just a more efficient company—but a more responsible, inclusive, and sustainable one.
Following its maturation in China's consumer finance sector, supply chain finance (SCF) is now expanding into industrial finance, with the natural gas industry attracting growing participation from diversified stakeholders. This paper analyzes the current developmental stage of natural gas SCF, identifying critical challenges including:
Operational Architecture:
Technical Infrastructure:
Empirical evidence demonstrates dual value creation:
Strategic Recommendations for Industry Advancement:
Regulatory Innovation:
Ecosystem Development:
CSR Enhancement:
This framework addresses key industry pain points by:
- Multi-stakeholder coordination gaps: Fragmented collaboration among participants
- Disjointed integration of "four flows": Mismatches among logistics, information, capital, and energy flow. T
- The study proposes blockchain-powered solutions to enhance SCF systems through three strategic dimensions:
Operational Architecture:
- Smart contract-driven transaction ecosystems
- Dynamic financing mechanisms with automated risk triggers
Technical Infrastructure:
- Hybrid blockchain platforms integrating permissioned chains (for core enterprises) and private chains (for SMEs)
- Privacy-preserving modules using zero-knowledge proofs (ZKPs)
Empirical evidence demonstrates dual value creation:
- Economic benefits: 28-42% reduction in financing costs for SMEs (Yangtze River Delta pilot data)
- Social value: 19% improvement in energy flow traceability compliance, crucial for carbon credit verification
Strategic Recommendations for Industry Advancement:
Regulatory Innovation:
- Develop energy-flow integrated regulatory frameworks under China's dual carbon goals
- Establish digital sandbox mechanisms for blockchain-finance convergence
Ecosystem Development:
- Build core enterprise-led consortium chains with tiered node networks:
- Tier-1 nodes: National oil companies (e.g., CNPC, CNOOC)
- Tier-2 nodes: Provincial pipeline operators
- Tier-3 nodes: LNG terminal operators
CSR Enhancement:
- Implement graded CSR evaluation systems for anchor enterprises
- Introduce blockchain-based green finance incentives
This framework addresses key industry pain points by:
- Providing tamper-proof trade scenarios through on-chain LNG documentation
- Mitigating information silos via cross-institutional data bridges
- Reducing contract default risks via smart contract auto-enforcement
Petrobras' goods procurement sector has undergone a significant digital transformation, shifting from manual processes to an integrated ecosystem of technological solutions. This evolution has driven operational efficiency, strengthened supplier relationships, and delivered strategic results aligned with corporate values of innovation and sustainability.
The SATRe (Automated System for Purchasing Requisition) stands out as a key innovation, integrating robotic process automation (RPA), statistical models, and machine learning to optimize critical decisions. By automating tasks such as excess inventory analysis, contract-linked purchase order generation, and material transfers, the system eliminated operational bottlenecks. Capable of processing over 50,000 requests in hours and reducing analysis time to near zero, SATRe ensured precision, compliance, and prioritized use of existing contracts. This not only accelerated procurement cycles but also strengthened trust with strategic suppliers, who now benefit from predictable demand integrated into the company’s systems.
Complementing this automation, Planeja_IA introduced AI-driven demand forecasting for materials. Leveraging machine learning algorithms, the tool selects the most suitable model for each item, achieving 80% higher accuracy for most materials analyzed. This precision enabled the creation of more efficient long-term contracts. As a result, Petrobras and suppliers gained long-term visibility, improving production planning and reducing logistics costs. Additionally, minimizing idle inventory and emergency purchases reinforced supply chain sustainability—a strategic pillar for Petrobras.
Another highlight is the SAE (Stock Utilization System). This web platform uses specialized rules to identify alternative materials in stock or available long-terms contracts, optimizing their use. A 900% increase in annual queries (from 25,000 to 250,000) reflects its effectiveness in avoiding redundant purchases. By redirecting excess inventory and existing contracts, SAE reduced operational costs and strengthened collaboration with suppliers, whose contracts are now used more strategically.
Consolidated results from this transformation are substantial: 40% reduction in average contracting time, 183,000 automated annual purchase orders via long-term contracts, and 86,000 annual inter-businesses units material transfers, optimizing corporate inventory. Saving 630,000 man-hours annually freed teams for higher-value activities, such as complex negotiations and market analysis. These metrics underscore not only efficiency gains but also a cultural shift in procurement management, where technology enables more transparent and productive supplier relationships.
In summary, tools like SATRe, Planeja_IA, and SAE demonstrate how Petrobras is reinventing its supply chain. By combining automation, intelligent forecasting, and resource optimization, the company has built a model balancing operational excellence, economic sustainability, and strategic supplier partnerships—advancements that reflect its commitment to innovation and a sustainable energy future.
The SATRe (Automated System for Purchasing Requisition) stands out as a key innovation, integrating robotic process automation (RPA), statistical models, and machine learning to optimize critical decisions. By automating tasks such as excess inventory analysis, contract-linked purchase order generation, and material transfers, the system eliminated operational bottlenecks. Capable of processing over 50,000 requests in hours and reducing analysis time to near zero, SATRe ensured precision, compliance, and prioritized use of existing contracts. This not only accelerated procurement cycles but also strengthened trust with strategic suppliers, who now benefit from predictable demand integrated into the company’s systems.
Complementing this automation, Planeja_IA introduced AI-driven demand forecasting for materials. Leveraging machine learning algorithms, the tool selects the most suitable model for each item, achieving 80% higher accuracy for most materials analyzed. This precision enabled the creation of more efficient long-term contracts. As a result, Petrobras and suppliers gained long-term visibility, improving production planning and reducing logistics costs. Additionally, minimizing idle inventory and emergency purchases reinforced supply chain sustainability—a strategic pillar for Petrobras.
Another highlight is the SAE (Stock Utilization System). This web platform uses specialized rules to identify alternative materials in stock or available long-terms contracts, optimizing their use. A 900% increase in annual queries (from 25,000 to 250,000) reflects its effectiveness in avoiding redundant purchases. By redirecting excess inventory and existing contracts, SAE reduced operational costs and strengthened collaboration with suppliers, whose contracts are now used more strategically.
Consolidated results from this transformation are substantial: 40% reduction in average contracting time, 183,000 automated annual purchase orders via long-term contracts, and 86,000 annual inter-businesses units material transfers, optimizing corporate inventory. Saving 630,000 man-hours annually freed teams for higher-value activities, such as complex negotiations and market analysis. These metrics underscore not only efficiency gains but also a cultural shift in procurement management, where technology enables more transparent and productive supplier relationships.
In summary, tools like SATRe, Planeja_IA, and SAE demonstrate how Petrobras is reinventing its supply chain. By combining automation, intelligent forecasting, and resource optimization, the company has built a model balancing operational excellence, economic sustainability, and strategic supplier partnerships—advancements that reflect its commitment to innovation and a sustainable energy future.
