Solomon assists operators with development planning to achieve optimal operating cost levels for each phase of the future life of a new field. We assist in defining key performance indicators, reducing risk and uncertainty, and improving budget forecasting. This helps support investment decisions.
Why Choose Solomon Upstream?
When you come to Solomon for support with upstream production cost estimation, you’re tapping our field-level operations database. This proprietary source of cost data was built with the data gathered from more than 180 benchmarking projects analyzing the operations of more than 4,000 oil and gas fields (onshore and offshore). As a result, excellent peer data is available to help us estimate the upstream production operating cost component of your development plans.
Our assessment is customized by type of operation as well as field characteristics. Our proven approach is to select technically similar fields in order to assess significant cost drivers. In addition, we can deliver forecasts at various levels of detail with the option to increase the level of detail as the development planning progresses.
How It Works
Often, operating cost estimates are updated at several points during the development process. During the project stage, we create a high-level cost estimate (or total unit cost). As engineering design moves forward and development specifications are determined, we break down the cost estimate into specific operating cost categories (e.g., labor, logistics, surface maintenance, etc.).
Estimates for specific key performance indicators are defined, including uptime reliability metrics. As the upstream development launch approaches, we deliver final operating cost estimates. These may include life cycle staging and future cost estimation modeling.