Project Value & Framing

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STRATEGIC FIT

❑ How does the Project Fit Within the Business Environment – the Organisations
Strategic Direction
❑ How does the Project Support the Strategy
❑ Consider the Broader Organisational Context and Why this Opportunity Should be
Pursued – a New Initiative, New Business Stream etc
❑ Does/Could the Project Fit Within a Wider Portfolio – Synergies etc
❑ What Else is Going on in the Business, Organisation, Industry, Acreage etc
❑ Be Aware of any ‘Wind of Change’ that may/may not Support the Opportunity
❑ Do we have the Capital, Manpower, Resources, Technology, Competencies etc

Is this something we should be doing


PROJECT CHALLENGE
❑ Business as Usual, Repeat Business, New Business
❑ Location Immature/Mature – Does a relevant business environment exist
❑ Location Old/New – Have we done business there before
❑ Size – relative to corporate experience
❑ Are there Complexities that we need to take account of
❑ Is there anything Innovative/Novel involved
❑ Is the Risk Profile acceptable
❑ What is the Environment Like – Political Landscape etc
❑ Look at it from two perspectives:
❑ Is it a difficult project
❑ Is it a difficult project for the Organisation
❑ What does all this Mean/How does this Impact Us

Are we capable of delivering this Project


PROJECT VALUE
Value Drivers
(Areas we
can
Influence)

Production
Capacity
Capital Value
Value Drives
Expenditure
(Areas we

‘PRIZE’
Lifecycle Costs can’t
Schedule Influence)
$/£/Euro
Others
Interest/
Exchange
Rates
Oil Price !
Commodity
Prices
Tax Regime An Overview of the Project Value and
what can Influence it

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