Upstream Case Study 1:
Growth strategy and operating model for leading independent exploration and production (E&P) company
- The client had a strong operating base of conventional oil and gas assets, and made a strategic decision to join other leading North American independent E&Ps in developing unconventional gas prospects. This presented a broad range of new challenges, because the client needed to shift from a focus on customized solutions to a focus on repeatable, predictable processes
- Booz & Company worked with the client on a comprehensive program to meet these challenges, including a revision of the organization structure, a complete redesign of the client’s core business processes (exploration, development, operations, and back office), and a concerted effort to reduce costs in response to the low gas price environment.
- Today, the client has successfully implemented its unconventional operating model and is poised for profitable exploitation of unconventional assets. The client has accelerated the value of its unconventional holdings, increasing the net present value of the assets by more than US$1 billion, and delivering more than $200 million in annual capital expenditure and operating expenditure savings.
