Landmark, Halliburton Co.'s technology solutions business line, is collaborating with Palantir Solutions to develop a risk management system that would help assess the economics of an oil and gas project.
The alliance has set its sights on an "economics, planning and decision support framework" tool for exploration and production (E&P) companies to more effectively manage economic risks and increase the returns on their investments. The market outlook "indicates the need for a more efficient decision support system to improve petroleum investment life-cycle management," officials said.
"To meet the requirements of a dynamic supply, demand and pricing environment in a global setting, world class organizations need next generation systems for a near-real time view of their business and to achieve strategic cost management objectives," said Landmark Vice President Nagaraj Srinivasan. "The joint solution from Landmark and Palantir allows customers to manage costs, reserves and optimize their portfolio and investment decisions, therefore driving overall business performance."
Landmark's DecisionSpace software is to be integrated with Palantir's PlanningSpace system for end-to-end technical and economic workflows. Once completed, the software is expected to provide E&Ps an edge in calibrating surface and subsurface risks with economics.
Like Halliburton, Landmark is based in Houston, providing data/analytics, science, software and services for E&Ps. To date it has amassed more than 1,100 patent filings. Dozens of offshore and onshore operators rely on its software for geoscience mapping and interpretation to assess resources, optimize well placement, geosteer wells and improve stimulation potential.
Palantir, a global company with offices in Houston, provides integrated economic and planning products and services, whose solutions "connect asset and corporate level data, systems, people and processes to create an intelligent, collaborative and live planning space."
"Palantir and Landmark have started this alliance by bringing integrated reserves, capital budget and financial forecasting solutions to market," said Palantir Managing Director Jason Ambrose. "The speed at which we were able to jointly develop these products is a testament to how complementary our technology platforms are. Together, we will be able to provide our clients with innovative, 'cloud ready' solutions that can be rapidly deployed to create investment life-cycle planning workflows that are responsive, repeatable and reliable."
The oil and gas industry is undergoing a "correction," which is "the most positive thing I can say," Ambrose said in a blog post last week when he first discussed the alliance. "Clearly, technologies created a situation where we can make the current energy demands and with the overarching economic uncertainty we can expect volatility for the short to long term."
The "most resilient" businesses "will be those that have the most balance in their portfolio and having them designed to operate in the widest range of environments. In the unconventional industry, and offshore deepwater, the surface world risks are as important as the subsurface risks and we need a balance between that petro technical view and the commercial view."