Well construction is usually the largest cost of projects: therefore, when evaluating whether to bid for an asset, or further down in the project, companies often need to have an external computation of well engineering costs.
Welltodrill di Valentina Gagliardi has developed a Microsoft Office-based software that uses a very structured method for obtaining time and cost estimates, and can be updated with more and more detailed data as the project progresses to further reduce time and cost uncertainty.
The Time Estimate is built from a detailed operational timeplanner for well construction, with operative times linked to offsets performance and
well’s specific characteristics.
NPTs and contingency are added based on experience and in agreement with Client, to obtain a Budgetary Time Estimate.
The Cost estimation tool has a matrix architecture where costs are grouped into 21 main categories, each with once-offs, time-dependent and depth-dependent costs.
Service rates and material costs, from a large and up-to-date database, are associated with each category, providing accurate cost predictions, and sensitivities on well times, depth, materials costs and service rates.
Results are shown in a very transparent way, with all the assumptions clearly stated. The estimate can be updated as the project develops, or to model different scenarios, so as to keep a very documented track of all the reasoning, project development and assumptions.