UC-793
Price the Rig Day Value of Every Planning Decision
Puts a rig day and a currency value against each planning option so the choice is made on what it is worth.
TBDBuild Duration
XXXXIndicative ROI
XXXXBuild Cost
XXXXValue
The Challenge
Planning options are argued on engineering merit and decided on judgement. The rig day consequence is understood loosely, and because a Norwegian licence is financed in proportion to interest, the number that matters to the licence and the number that matters to OMV are different and rarely both stated.
How It Works
- The engine models the rig time consequence of each planning option against the programme.
- It prices that time at the current spread rate and states the value to the licence and OMV's share beside it.
- It records the option chosen and the value assumed, so the outturn can be checked against it.
What It Removes
- Options argued without their rig day cost
- One number quoted when two are needed
- Value to the licence confused with value to OMV
Input Data RequirementsWell programmes and option cases, rig and spread day rates, participating interest schedules, historical section durations.
Output FormatPriced option comparison in rig days and currency, licence value and OMV share shown separately, and a decision log with the assumed value.
“Give me the rig days and tell me what our thirty per cent of it is.”