Business Value

Business metrics. Ensuring profitability over time starts with fast, accurate initial cost estimation and is further bolstered by asset-based approaches to cost tracking. Both are long-time hallmarks of IHS's field development planning solutions. Case studies have proven that operators of all sizes, onshore and offshore, have recorded benefits including:

• Reduced operating costs of up to tens of millions of dollars from using asset-based cost tracking system.
• Increased accuracy of development cost estimates, resulting in improved performance vs. plan for NPV profiles.
• Ability to balance capex and opex expenditures on new developments to deliver optimum economic return.

Business process gains. Additional benefits and case scenarios commonly reported include:

• Reduced time needed to model 40 case scenarios for a topside facilities project from weeks to days, allowing completion ahead of schedule and time to study additional options.
• Improved prediction of market variation and sensitivities for high-impact cost factors on a development concept.
• Increased confidence in selection of development concept, and that actual economics will fall within the prescribed range.
• More consistent cost estimation and development concept comparison, with increased ability to model sensitivities consistently.
• Ability to keep up with and compare evolving costs of different technologies while greatly reducing need for original research.
• Ability to build cost models that comprehend the increasing role of abandonment issues in fiscal models.
• Ability to visualize project cost and assess schedule risk from changing market factors such as lengthened equipment delivery times.