Macway Uhl helped a major multi-national oil company revamp its regional exploration and development strategy.

Challenge

A multi-national oil company faced drilling rig availability and capital constraints while developing an area in the deepwater Gulf of Mexico.  Competitor facilities nearby and high geologic uncertainty increased the stakes for choosing the most cost efficient way to explore and develop a complex network of related prospects, discoveries, and existing infrastructure.

Solution

Macway Uhl worked with each project team to identify the set of options available, and integrated these into a holistic business model.  The model allowed management to understand the tradeoffs among timing, capital exposure, and competitive position.

Results

• An overall business unit strategy was developed and execution is underway
• Management pre-ordered key long-lead equipment in order to have the option to rapidly exploit potential development scenarios
• Two project teams, previously working in separate ‘silos’ were combined and integrated based on the synergy opportunities revealed by the analysis
• The project results were used as the basis for scenario planning and future budgeting for the division of the company.