- Industry Challenges
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- About PanTerra
The current oil price downturn has forced Oil&Gas companies to reduce E&P CAPEX over last 3 years with ~40%. Next to the ongoing discussions on how to spend scarce capital, this brings a new set of dilemma’s that influences capital ranking exercises:
Where to focus? – How to concentrate CAPEX on winning plays with the highest Chances of Success and that enable the combined lowest costs per barrel?
When to stop? – How to balance necessary CAPEX reductions with optimizing and extending the economic reserve life to mitigate premature abandonment?
How to maintain strengths? – How to balance necessary CAPEX reductions with the need to maintain asset integrity and retention of critical staff?
PanTerra together with a leading strategy consultancy offer a Corporate Capital Review as a new service.
We have extensive experience in the up-& downstream Oil & Gas in general, and in capital review projects specifically.
We perform these reviews with a team of both commercial and technical experts, depending on the focus areas of the client’s assets, such as decommissioning, facilities, and wells.
A typical capex review project is done in ~6-8 weeks and has a structured step approach: agreement on goals, fact finding, hypothesis & initial assessment, iteration with HQ and BU’s, synthesis findings.
If you are interested, please contact us and we are happy to visit your company to discuss the specific goals for the review. These can be, for instance:
Challenge the fit of next years plan with corporate strategy
Challenge its underlying assumptions, both macro economic and project specific financials
Identify potential cuts or additions to the current CAPEX budget by $ x MM