Technology group FPT signed an agreement with PetroVietnam Exploration Production Corporation (PVEP) on research and development for new technologies in oil exploration and exploitation on Tuesday.

Under this agreement, FPT will provide support to PVEP to digitalise its operation and enhance the efficiency of its oil exploitation, minimise downtime due to system incidents and promote cost savings, as well as its risk mitigation.

The two sides will promote co-operation towards a long-term partnership and create conditions to apply new technologies, such as the Internet of Things, Big Data, artificial intelligence and data science.

According to Truong Gia Binh, chairman of FPT, for the oil and gas production sector, industry 4.0 would help provide practical forecasts, so as to optimise operation while ensuring safety, as well as cost-cutting.

For example, in the transport sector, industry 4.0 will help increase the traffic volume by 35 per cent and reduce accidents by 58 per cent, Binh said, adding that in the oil production sector, the figures would not be as impressive, but modest improvements could bring significant economic benefits.

The application of technology-enabled solutions in oil exploration and exploitation became critical when oil companies were facing difficulties owing to low oil prices.

Ngo Huu Hai, director-general of PVEP, said that oil exploration always had risks, especially, when oil prices remained at a low level for a long time, forcing PVEP to promote the application of advanced technologies to improve efficiency.

“Approaching industry 4.0 is a completely new issue, and this is urgent to avoid falling behind,” Hai said.

The two companies will soon select among the existing projects of PVEP to pilot the application of new technologies, first in wells with simple structure, then to other projects, domestically and internationally. – VNS