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
