UC-787
Warn on AFE Overspend While the Section Is Still Live
Signals that a section is going to break its AFE allocation while there is still a decision to make on that section.
TBDBuild Duration
XXXXIndicative ROI
XXXXBuild Cost
XXXXValue
The Challenge
Section level cost is reconciled after the section is cased. A section that ran long is priced when it is finished, so the choice between pressing on and changing the plan is made without the cost consequence in front of anyone.
How It Works
- The engine allocates the AFE to sections and tracks spend against each as it is drilled.
- It projects the section outturn from current rate of progress and daily cost.
- It warns the Well Delivery Manager while the section is live, with the options and what each is worth.
What It Removes
- Section cost known only after casing
- Plan changes decided without the cost consequence
- Overspend absorbed into the well total
Input Data RequirementsAFE phasing by section, daily cost and rate of progress, rig and service day rates, the well programme.
Output FormatLive section outturn against allocation, early warning with options priced, section level variance history.
“Tell me the section is going to break its allocation while I can still do something about it.”