The Assignment / Client’s Problem

  • Examine the value proposition of the client and determine if the offering was fairly priced relative to the NOC in-sourcing the service
  • Determine the most suitable analysis to provide transparency to the NOC for the value of the service
  • Evaluate if the cost of the service is appropriate and what additional offerings could add value for the NOC
  • Need for the NOC to understand common KPIs used by global land drillers to improve drilling operations

Westwood’s Approach & Analysis

  • Evaluation of the value created by economies of scale of an increased drilling program for both drilling rigs and workover units
  • Model the economics of the tool rental service for different levels of drilling with key cost assumptions provided by proprietary insights and industry consultations
  • Analyse the estimated cost to the NOC to build out an internal wellsite tool capability and normalize its daily cost versus outsourcing
  • Provided key KPIs used by global land rig drilling contractors to monitor their performance and improve operations

The Outcome & Benefit

  • Provided a view of the per-day cost for the client of their operations and allowed them to adjust pricing as necessary
  • Presented a clear analysis of the daily cost-benefits of the tool rental offering to the estimated cost of internalizing the operations
  • Reviewed key KPIs and standards of operations used by global land drilling contractors
  • Allowed client to justify its value to key stakeholders within the NOC and obtain a new contract for the services