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PFC: Improving Business Decision Making to Improve Asset Development Economics

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Course Credit: 0.15 CEU, 1.5 PDH

Incredibly the average E&P asset development over the past 15 years has had a generally dismal outcome and has delivered only 60% of the value (NPV) that it promised at sanction. Due to the increasing technical complexity and to some extent the demographics of the industry – both ours and our supply chain providers in EPC industry – we find ourselves unable to make consistent and robust profits on new field developments. The world of E&P developments is seriously challenged and if we do not change, things are likely to get much worse.

This presentation looks at recent records of delivering E&P asset developments and their performance. We will assess how we have chased volume over value. We will then investigate what are symptoms of the problem – chasing the wrong value levers and in turn destroying production and reserves recovery. We will discuss issues such as speed over value, portfolio management in today’s context and whether the state of our EPC supply chain helps or hurts our projects. However, we will focus our attention on what we believe to be the real root cause of our performance and the changes needed in our approach.

E&P asset delivery takes a great deal of cross-functional work and cooperation and that is not being delivered. We will end the talk by discussing a possible solution – creating business accountability in the form of an Asset Development Manager – a Chief Integrator if you will – who is actually responsible for integrating this complex puzzle and delivering barrels.

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  • 1PFC: Improving Business Decision Making to Improve Asset Development Economics - Chapter 1
    Media Type: Video


Earn credits by completing this course0.15 CEU credit1.5 PDH credits


Neeraj Nandurdikar