CASE STUDY

Petroleum Economics

EGAS Increases Economic Forecast Accuracy by 80%Merak Peep software enhances economic evaluation for EGAS

CHALLENGE ■ Overcome efficiency, accuracy, and

consistency problems in economic management

■ Improve speed, accuracy, and consistency in economic modeling, calculations, and reporting

■ Remove project consolidation limitations and assure data accuracy

SOLUTION ■ Standardize economic management

processes using Merak* Peep and Merak Decision Toolkit software

■ Work with Schlumberger to design a streamlined workflow based on EGAS requirements

■ Build standard EGAS fiscal models and reports

■ Create a centralized, integrated, and secure database

RESULTS ■ Improved economic evaluation

efficiency, data accuracy, and security ■ Evaluation time reduced from eight

hours to 30 minutes per concession ■ Faster fiscal model building and

improved productivity ■ Efficient decision making

and collaboration ■ Improved trust and confidence

in economic evaluations

“Schlumberger understood our needs as a regulator, providing a flexible, trustworthy economic management solution that allows us to handle any project in complete confidence. Our productivity is up and our results and decision-making are more accurate.”

Ahmed Abdel Meguid Assistant to the Chairman

for Economic Affairs EGAS

The planning unit of the state-owned Egyptian Natural Gas Holding Company (EGAS) manages capital projects and needs to make informed strategic leadership decisions—for bid rounds evaluations, corporate KPI calculations, and the evaluation and consolidation of assets. The department was facing a number of challenges with its economic software system. Fiscal modeling was too time consuming, while economic evaluation and reporting was inconsistent. Results from economic calculations were often inaccurate, and there were limitations in project consolidations and incremental economic analysis. These issues were compounded by a lack of data security and accuracy—the result of not having a centralized, integrated database.

Improved economic processesThe company was keen to standardize its economic modeling analysis and improve reliability. After meeting with Schlumberger, it became clear that building new processes around Merak Peep petroleum economics evaluation and decline analysis software, and Merak Decision Toolkit decision and risk analysis software would allow EGAS to overcome its current limitations, and progress to a more structured planning process.

The proposed solution consisted of a multistage implementation plan. The first stage involved key project contributors meeting in an alignment workshop to discuss and plan requirements. The results of this meeting were then documented, allowing Schlumberger and EGAS teams to work efficiently together on designing the required workflow. When both parties had agreed on the design, the development stage commenced, which included modeling the economic fiscal terms, linking to other data sources (production and agreements), and report building.

The solution was then deployed and tested at EGAS. Once this was completed, and any necessary adjustments were made, a series of training sessions were held to allow EGAS users to become proficient with the new system.

Customized Merak Peep economic summary report showing revenue and economic indicators for the government and contractors.

Enhanced accuracy, productivity, and decision makingThese improvements, as well as the enhanced reporting capability, have led to more efficient economic evaluation and financial decision making. As a result of improved data consistency, EGAS has enjoyed 80% more accurate economic forecast data with the Merak Peep solution. Managers and team members also have greater trust and confidence in results. In addition, the standardized fiscal models in the software have reduced the time spent for concessions evaluations from eight hours to 30 minutes per concession—users no longer need to build new fiscal models each time, greatly improving productivity.

E-mail sisinfo@slb.com or contact your local Schlumberger representative to learn more.

Merak Peep software delivered consistent economic evaluation through the separation of data and calculation methodologies, as well as faster fiscal modeling and more accurate economic calculations. Users benefited from easy access to a central repository of common corporate assumptions. Project collaboration was also improved and all user evaluations were stored in a central, secure repository. Merak Peep software delivered the capability to perform corporate roll-up and consolidation analysis, with the added flexibility for management to assess performance at the regional and business unit level, as well as by asset type.

www.slb.com/merak

*Mark of SchlumbergerOther company, product, and service names are the properties of their respective owners.Copyright © 2012 Schlumberger. All rights reserved. 12-IS-0451

CASE STUDY: Merak Peep software enhances economic evaluation for EGAS

Graphical sensitivity analysis.Roll-up report showing all EGAS fields grouped by type.