Bullish options flow was detected in HON stock on November 26, 2019.

Bullish options flow in HON stock on November 26, 2019

On November 21, 2019, Honeywell (HON) released the news that it will design and deliver the Integrated Control and Safety System that will help BP (BP) remotely manage its offshore compression platform off Trinidad and Tobago’s southeast coast. As the project’s main automation contractor, Honeywell will deliver all systems, detailed engineering and lead procurement for the integrated control and safety system. This new project follows the 2018 award of the MAC contract to Honeywell for BP Trinidad and Tobago’s Angelin offshore gas project.

On November 20, 2019, the Abu Dhabi National Oil Company (ADNOC) selected Honeywell’s (NYSE: HON) asset monitoring and predictive analytics solution to drive improved asset and machinery management across ADNOC’s upstream and downstream operations. Leveraging AI technologies like machine learning and digital twins, the platform is expected to help generate significant yearly savings through reduced unplanned maintenance, increased reliability, uptime and safety.

The 10-year contract marks one of the largest predictive maintenance projects in the oil and gas industry and is part of ADNOC’s flagship Centralized Predictive Analytics and Diagnostics (CPAD) program. CPAD, which underpins the company’s 2030 Strategy and Oil & Gas 4.0 initiatives, aims at transforming ADNOC’s operations to maximize value from every barrel of oil, while delivering the greatest possible returns to the United Arab Emirates.

“In an era where the oil and gas industry is being disrupted on multiple levels, it is important that we continue to drive innovation and seek new advanced technologies to further optimize performance and deliver sustainable returns,” said His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Group chief executive officer of ADNOC. “ADNOC’s predictive maintenance project is significant in scale and in its application of AI technology, and marks an important technological milestone for the industry. Honeywell was selected as our valued technology partner to provide these state-of-the-art solutions after a highly competitive and rigorous process.”

ADNOC will deploy Honeywell Forge Asset Monitor and Predictive Analytics solutions at its Panorama Command Center in its Abu Dhabi headquarters. The Panorama Digital Command Center currently aggregates real-time information across ADNOC’s businesses and uses smart analytical models, AI and big data to generate operational insights and recommend new pathways. The addition of Honeywell’s solutions will enable the central monitoring of up to 2,500 critical rotating equipment across all ADNOC Group companies.

“We are proud to partner with ADNOC as they lead the transformation towards Oil & Gas 4.0 and embrace the power of IIoT,” said Darius Adamczyk, chairman and chief executive officer of Honeywell. “Honeywell Forge delivers the advanced capabilities business leaders need to harness big data to drive more efficient decision-making and exceed business goals. We look forward to ADNOC realizing these benefits after deploying this leading-edge technology.”

With continuous online equipment monitoring, aided by digital twin models and machine learning analytics, operators and maintenance personnel will be able to identify impending machinery issues earlier and shift from reactive and preventative maintenance practices to a predictive maintenance approach. Sophisticated insights into equipment health will also allow ADNOC to evaluate equipment overhaul extension programs, increase the availability of equipment and maximize production. Built on a scalable enterprise platform, the solution will accelerate time to value by providing ADNOC engineers with a host of embedded data science and simulation tools.

The predictive maintenance project is one of many digital transformation initiatives by ADNOC to embed cutting-edge technology across its entire value chain and deliver on its Oil & Gas 4.0 mission to stay ahead of the world’s growing demand for energy. Other digital initiatives include its Panorama Digital Command Center; smart data analytics Thamama Subsurface Collaboration Center; and the use of AI-assisted value chain modeling, rock image pattern recognition technologies, and blockchain-based hydrocarbon accounting, to name a few.

Honeywell is an established leader in digital transformation across the Middle East and globally. Through Industrial Internet of Things (IIoT) based solutions, Honeywell has enabled many of the region’s oil and gas projects to achieve improved performance and efficiency. The company’s solutions support a variety of long-term, national development and economic diversification initiatives across the Middle East and North Africa region.

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