AFE Navigator - The Statoil Experience Esmeralda Wollam - Principal Analyst US Offshore Land Whitney Kuhlman Analyst US Onshore Land

Transcription

1 AFE Navigator - The Statoil Experience Modernizing the Capital Approval Process Across Onshore and Offshore Assets Esmeralda Wollam - Principal Analyst US Offshore Land Whitney Kuhlman Analyst US Onshore Land Classification: Internal Statoil ASA 18 October 20

2 2 Classification: Internal 18 October 2016 Statoil ASA

3 3 Classification: Internal 18 October 2016 Statoil ASA

4 Offshore Needs Flexibility Centralization Documentation Aligned Workflow 4 Classification: Internal 18 October 2016 Statoil ASA

5 Onshore Needs Centralization Strict Workflow Reporting for large scale volume 5 Classification: Internal 18 October 2016 Statoil ASA

6 AFE Process Visualized Slicing up the pie Business Plan Yearly CAPEX Frame Initiate Re-frac a well Completion Pilot project Approve Drill & Complete a new well Execute Drill & Complete a new well Close Plug & Abandon a well Compressor Station 6 Classification: Internal 18 October 2016 Statoil ASA

7 The AFE Process Creation & Setup Review & Approval Execution & Tracking Closure & Follow-Up A B C D Standard Template for AFE Initiation 1 AFE Requested ( to Land Analyst) 5a Upload Supporting Documentation Cost Estimating Templates 5 Content Creation & Review 5b Electronic Sign-off by Reviewers 9 Field Activity (charges to WBSs) 13 Time Elapsed or AFE Closure Request 3a SAP WBS/Cost Centers created 2 Shell AFE Generated (AFE Navigator) 3 4 Master data team notified Suspended AFE open for charges Approval Authority Matrix 8a WI% Confirmed -into QLS -Master Data 6 8 Asset Manager Review & Approval Y Y Unsuspended AFE ready for execution Re-Work Needed N Rejected Partner 7 Review & Opt- N In (if required) 7a Asset Manager Approval for 100% WI Y 9a Actual Costs into SAP B Y Accruals & CAPEX Tracking/ Reporting Cost Reconciliation AFE Supplements (if required) 9b Field Cost Estimates Recorded Closure Review Meeting(s) Close WBS Elements to further charges Post-Investment Review/ Lessons Learned 15a Master Data Request Separate, Stand-Alone Process WR9115 N B C D E Input to Next Year's Business Plan 7 Classification: Internal 18 October 2016 Statoil ASA

8 The AFE Process Capital Discipline 1. We approve AFEs in accordance with our delegations of financial authority we do not approve an AFE outside the business plan without justification. 2. We manage AFEs by associated function (DRL, CMP, CIV, etc.) 3. We do not approve an AFE until investment economics are complete and evaluated. 4. We do not commit CAPEX until the AFE is approved. 5. We create AFEs with standardized cost estimates and Work Breakdown Structure (WBS) elements, to monitor, report, and forecast spend with transparency. 6. We close AFEs when projects are complete, using the data to draw learnings to improve future performance. 8 Classification: Internal 18 October 2016 Statoil ASA

9 Volume YEAR TO DATE ONSHORE Operated AFEs Processed: 367 Total Dollar Amount Reviewed: $1,029,925, Non-Operated AFEs Processed: 536 Total Dollar Amount Reviewed: $1,899,876, YEAR TO DATE OFFSHORE Operated AFEs Processed: 33 Total Dollar Amount Reviewed: $101,306,569 Non-Operated AFEs Processed: 184 Total Dollar Amount Reviewed: $4,250,307, Classification: Internal 18 October 2016 Statoil ASA

10 Questions? 10 Classification: Internal 18 October 2016 Statoil ASA

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