7.1.2 Use Case 3: Provide Historical Data Pre-Sale (“Divestiture”)

Version

1.0

Author

Bill Logsdon/Ashraf Wardeh (Oxy)

Reviewer(s)

Joe Palatka (BP)

Shaji John (Halliburton)

Goal

Reduce cost and effort and support automation of data room presale activities and generate added value for properties being sold, as well as for those purchasing properties

Business Requirement

General requirements

Provide required data room production information in an easy to access format

Support standard data exchange interfaces.

Provide consistent, complete information needed to make purchase decisions

Business Value

Consistent format and contents of production information reduces amount of custom programming required for both buyer and seller

Consistent format and contents of production information ensures a consistency, accuracy and completeness of data sets avoiding costly rework and potential delays.

Making production information available virtually, ensures access to hard copy data by the divesting operator.

Ability to use pre-existing solutions based on PRODML standards reduces time and cost for data room functions (both seller and prospective buyers)

Ability to support common data exchange formats and interfaces – PRODML, oData, web services, ETL, will provide flexibility and efficiency in data access for potential buyers.

Providing additional information allows prospective buyers to determine maximum value of properties allowing higher potential bids. Publish the meta information format.

Summary Description

During the data room pre-sale process, the divesting partner provides information on assets being offered for sale. Prospective acquiring parties analyze the available information and determine whether to make a bid on the properties and how much to bid. Typically multiple prospective acquiring parties will come into the data room to view data and documents and to ask questions. The number and length of visits varies depending on the size and complexity of the sale.

Additional discussions and meetings outside the scope of the formal data room are common and may occur after the data room phase is completed. The end result of this process is for the prospective acquiring parties to submit their bids so the divesting party can determine whether to sell the property and who the acquiring party will be.

Actors

Divesting Party – organization selling properties

Prospective Acquiring Parties – organizations considering bidding on a property

Triggers

Initiated when divesting party decides to offer properties for sale and to host a data room

Initial event and update cycles determined by divesting party based on the length of the data room phase of the sales process

Multiple data room events can be scheduled if the mix of assets being sold changes or other events require

Pre-conditions

Driven by divesting party decisions for data room phase of sales process

Primary or Typical Scenario

Prospective acquiring parties may be invited by divesting party or the data room may be open to the public. Typically a dedicated facility is made available containing documents, computers, and telecommunications hookups for prospective acquiring parties. Resources are made available to answer questions and required data is made available for all prospective acquiring parties. The Data room phase of the sale process will have a specific duration and prospective acquiring parties may make multiple visits.

Alternative Scenarios

Physical data room may be eliminated or minimized in exchange for virtual meetings and external links for data on properties being sold. In this case prospective acquiring parties will download data and analyze it locally. Questions will be handled via teleconferences.

Post-conditions

During the due diligence phase of the sales process (after the acquiring party is selected and the bid is finalized), the acquiring party may download current / updated information and may request information about the source of data or may request additional information. Both of these activities are outside the scope of this use case for PRODML.

Business Rules

Data Requirements

Specific data requirements relevant for PRODML include:

Monthly allocated production and injection volumes by product by well completion

Monthly end inventory by product and facility

Well status history by wellbore

Producing method history

Well test data by well completion

Downtime and Deferred Production by well completion

Gas composition and energy content (BTU) data if available

Daily meter volume by product if available (optional)

Hydrocarbon qualitative information, if available.

Scope of allocated volumes includes the entire history of the properties. Scope for other data is based on availability of the data.

Additional data requirements that are outside the scope of PRODML include

Well master data (lat long, field, reservoir, operator, completion date)

Facility data

Maintenance history

Cost information

Notes

Definitions

Well completion – the zone / completion of the well where production or injection is occurring (typically assigned an API_NO14 is US properties).