COST ESTIMATING & ECONOMICS

In the early stages of a development, data is incomplete, uncertain or just undecided. Estimating needs to be robust and technically coherent. A development wide overview encompassing subsurface, reservoir and drilling aspects is required in order to define and capture all elements. Our team experience across the full project lifecycle ensures that our cost estimates are robust and complete.

METSCOoil Team typically uses specialized software to generate CAPEX, OPEX and DRILLEX for option comparison, benchmarked to reference projects and against our own internal databases & experiences. Vendor budget quotes and preliminary labor rates and manpower loading may be used to achieve increased accuracy. We are able to produce study specific DRILLEX estimates.

Scheduling of revenue and expenditure as part of an economic analysis will differentiate between options with similar CAPEX but different NPVs. METSCOoil team frequently undertake economic analysis as part of due diligence valuations or concept selection studies; we also include a full assessment of reserves.

Our sophisticated in-house economic modeling tool allows us to explore a wide range of input parameters and sensitivities, as well as enabling the use of various economic indices in decision making. We have developed both pre-tax and post-tax models for a range of clients in West Africa and the Middle-East.

METSCOoil estimates and economic assessments underpins the delivery of all our study work. However where we bring real value is in the manipulation and interpretation of costs and economics. We can provide rapid and robust commercial definition of opportunities.

Typical Services Provided:

   CAPEX, OPEX, DRILLEX estimates
   CAPEX/OPEX trade-off studies
   Identification of cost drivers, review of sensitivities
   Risk analysis & decision tree analysis expected monetary value
   Cost phasing options
   Pre-tax & post-tax economic analysis
   Fair market value assessments
   Review/audit of cost estimates