Oil and Gas
Companies in the oil and gas industry are required to develop multi-billion dollar projects that convert new opportunities into commercially viable assets while managing a multitutde of internal and external stakeholders.
PCG is assisting clients to progress through stage gate reviews on their way to sanctioning multi-billion dollar projects.
- Economic evaluation
- Decision gate readiness
- Value driver modelling
- Enabling engineers
- Project risk reporting
- Lessons learned capture and embedding
Early Life Cycle Development Evaluation
A PCG client assessing viable development scenarios for an onshore field needed to evaluate multiple facility designs across a number of subsurface realisations.
An international oil and gas company needed to assess commercial viability of many development options early in the project lifecycle.
The present process only introduced robust economic assessment in later project stages.
In conjunction with the client, PCG developed a modelling process to be used across the business.
The process included a central assumptions repository, ensuring consistent assumptions sets for selling prices, exchange rates, inflation index, labour rates and facility costs.
The process also required assumption owners to be documented for all assumptions not in the repository.
The model allowed for simple model maintenance and could hold multiple scenarios.
PCG completed the process development in two months and observations included:
Introducing the simple economic evaluation earlier the project lifecycle rejected a number of options that would ordinarily have been retained to the next project stage gate.
The central assumptions repository eliminated all debate about base assumption validity at the start of the review process.
The ability to rapidly add model logic changes to all scenarios simultaneously eliminated hours of rework and reduced the likelihood of errors developing in the models.