Value-of-Information - from Cost-Cutting to Value-Creation

Abstract

Value-of-Information analyses are a powerful tool for short- term rationalisation of data acquisition costs. But even more so the longer-term added value of proper VOI analyses lies in the process of constructing the analysis, and in the insight it gives into risk and opportunity management. A rigorous VOI analysis generally spans the full life cycle of E&P, and as such requires input from a multi-disciplinary team. A thorough scrutiny about where data adds value will lead to value optimisation and creation.In order to unlock this value, implementation of a rigorous and easy-to-use methodology is critical. Such an implementation has progressed in Woodside, and has already led to a shift in mindset. VOI analyses are less regarded as cumbersome and fuzzy, but more and more as an essential part of data acquisition and data analysis. As a result, sizeable reductions in well data acquisition costs have been achieved, and data acquisition and analysis has become more focused.