Solomon Advisory Services

Operating Cost Estimation

Gain an independent, objective estimate of your production operational metric

Optimizing a dynamic and diverse asset portfolio with limited information; has been a challenge for exploration and production (E&P) investors.  Solomon’s Operational Performance Estimates is a consultative process that provides you lifecycle benchmarks using real peer data from our proprietary upstream operations database.  Our best-practice approach provides you with an independent and objective estimate of production operational metrics such as operating expenditures (OpEx), staffing levels, energy consumption standards, and carbon emission index.

Operational Performance Lifecycle Estimates

Why Choose Solomon?

When you come to Solomon for support with upstream production cost estimation, you’re tapping into our field-level cost operations database. This proprietary source of cost data was built with the data gathered from more than 30 years of benchmarking and analyzing the operations of more than 5,000 onshore and offshore oil and gas fields. As a result, high-quality peer data is available to enable our experts to estimate the upstream production operating cost components and performance metrics of your field development plans with high accuracy and confidence.

Our assessment is customized by operation type such as primary, secondary, or floating production storage and offloading vessel 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 detail level as the development planning progresses.

How It Works

  • Input Data: The operator provides a minimum set of data to characterize the operation for one or multiple design cases.
  • Inputs Review: Solomon’s subject matter expert reviews the consistency on the data set provided.
  • Calculations: Solomon generates an operating cost estimation report using its New Projects OpEx Estimator Software tool.
  • Report Generation: Solomon delivers a report with an OpEx estimation breakdown (e.g., labor, logistics, surface maintenance, etc.) and other operational metrics as agreed, such as staffing or energy-related performance indicators.
  • Results Presentation: Solomon’s subject matter expert presents the report, with valuable recommendations to optimize and achieve high operational performance based on the asset development plan.

Timeline: Generally, this service can take between 4 to 8 weeks after project input data has been provided and reviewed to calculate the estimations.

Success Stories from our Clients

  • A global operator uses our services to estimate OpEx lifecycle and staffing levels for a major development in South America.
  • A national oil company utilizes our services as an input to maximize its portfolio of investments and assess its field’s economic limit.
  • An offshore operator followed our estimates to assess how changes in its gathering strategy would impact future cost allocation by field.
  • An independent producer uses our advisory services to establish a medium-term “unit operating cost per barrel” target based on sharp increases to produced water level.

Contact us today to learn more.