UC-789
Test Every Well Estimate Against the Contract Rate Book
Checks that the rates used to build a well estimate are the rates actually contracted, before the AFE is raised.
TBDBuild Duration
XXXXIndicative ROI
XXXXBuild Cost
XXXXValue
The Challenge
Estimates are built from a cost model whose rates were loaded at some point in the past. Contracts are renegotiated on a different cycle, so an estimate can be built on rates that no longer exist in any agreement.
How It Works
- The engine reads the estimate line by line and matches each rate to the governing contract.
- It flags every rate that differs from the contracted position and shows the gap.
- It returns a corrected estimate basis before the AFE is raised.
What It Removes
- Estimates built on rates no longer contracted
- Rate changes not fed back into the cost model
- Variance created before the well starts
Input Data RequirementsWell cost estimates and cost models, contract rate books and call-off agreements, prior AFEs and outturn, supplier price notices.
Output FormatRate exception list per estimate, corrected estimate basis, and a rate currency report on the cost model.
“Is this estimate built on rates we can actually buy today?”