A senior oil & gas operator was seeking to debottleneck an offshore gas development through a brownfield capital project. Over the course of 4 years, the local team had twice developed, and then rejected, proposed design concepts because they were only marginally economic. Having entered a period of increased cost scrutiny, the concept development team needed to either come up with a third (and miraculously stronger) design concept in a hurry or abandon their expansion plans.
An energy major was seeing deteriorating economics in one of their upstream oil & gas developments. The cost of their sustaining well pad program, which was required to bring new reserves online as current reserves were depleted, was steadily rising, threatening the development of future growth phases. The increase appeared to be somewhat linked to market prices. However, it had also become clear that healthily challenging the legacy pad design, performance requirements, and technical standards to produce a better, simpler, and cheaper design was much harder that the organization had first thought.
Time was of the essence for a senior miner with a remote operation. After developing over 60 scenario alternatives for extending operations, the most attractive option failed to meet the investment threshold, requiring at least a 35% increase in IRR. With 4 years of initial mine life remaining, the future of the operation was in question despite a significant investment to date, a capable workforce and known developable resources.
At Stroud, we reject the notion that projects will naturally gravitate toward a definitive optimum of cost, quality and schedule. We have nurtured and developed a powerful analytical approach to rapidly determine the constraint-free, theoretical maximum potential of any project case. With this approach, we pull alongside your people and genuinely help them to find and realize more opportunity to enhance their project’s outcome than they currently believe exists. The solutions are theirs and they own the success.