Case Studies

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OilGasCo, a major global integrated Oil & Gas company, undertakes marine seismic acquisition campaigns around the world to explore deep water oil and gas fields. These campaigns usually require an advanced marine fleet with towed streamers and acquisition and recording technology.

OilGasCo lacked clarity on the cost structure of the rate they were paying firms for these services— so when it was time to renegotiate their contract, they came to us for help. 

To begin with, we met with key stakeholders of the marine seismic acquisition category to understand their needs and goals. 

Once we established their requirements, these were our next steps:

• Researched the North American and global marine seismic acquisition industry.
• Developed an understanding of the seismic acquisition campaigns including tools & technology used, expertise required, duration of campaigns and other details crucial to the success of campaigns.
• Developed a multi-tiered Should-Cost model for the seismic acquisition and recording.
• Presented the results and recommendations to OilGasCo.

Our Should-Cost model helped OilGasCo understand what a fair and reasonable day rate for seismic acquisition activities should be. It also validated their assumptions and helped them gain an understanding of their supplier’s financial health.

The cost model that we built provided them with the capability to account for different geographic locations for the campaign and the crew. With built-in flexibility, OilGasCo was able to do their own sensitivity checks to ensure that they were paying a reasonable price for acquisition and recording.

Our detailed instructions on using and updating the model also made sure the process would continue despite personnel turnover.

A win-win for all parties involved.