Cost of 2D/3D seismic processing

Oil and natural gas exploration -- geology and geophysics
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Seismic101
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Cost of 2D/3D seismic processing

Post by Seismic101 »

How much does 2D/3D seismic data processing cost? How do they calculate it?

GuyM
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Re: Cost of 2D/3D seismic processing

Post by GuyM »

Its terms of costs right now, they are kind of in free-fall a little. I've heard some very cheap (ie well below cost) prices being thrown around in the US and Europe as people try to get some revenue in the door.

How companies cost jobs is usually pretty complex, and everyone does it a little differently.

Most companies have an idea of the hourly rate of their employees. As a rule of thumb this tends to be about double what they are paid (when you take into account all of the overheads that are "the cost of doing business"), so that is one component in terms of:

- testing
- production processing flow set up (etc)
- QA/QC
- interactive analysis (velocities, first breaks etc)
- reporting and client communications

Of course, some companies have much higher overheads than others, which is a factor.

You can usually give a good estimate of these based on experience and the desired processing sequence.

There can also be components based on either technology (eg cloud or lease costs, or processes that mean the team is waiting for work to complete), or uplift for "added value" (ie unique) technology the contractor can bring in.

Typically a contract will quote per km (or km sq) for a given sequence, with uplift costs for additional processes that are outside of the stated sequence in the RFP (request for proposal)

Seismic101
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Re: Cost of 2D/3D seismic processing

Post by Seismic101 »

Thanks, GuyM- very useful.

So it is different from how VSP data is processed. We normally charge by interval (i.e., the depth of the well) and the number of traces being processed, and adding a fixed flat charge on top of that plus printing/packaging costs.

(PS: I haven't been here for a while! I like the new improvements; especially the notifications feature! Thanks everyone)

GuyM
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Re: Cost of 2D/3D seismic processing

Post by GuyM »

There can be a big variation in calls-for-tender or requests-for-proposal in terms of how prescriptive they are in things like:

- processing sequence
- testing sequence
- QA processes to be applied
- final products
- frequency and location of meetings
- remote access and provided software for QA

To some extent the client wants to be able to make an "apples for apples" comparison based on the "triple constraint" of price, turnaround time and scope/quality, and hence aims to fix scope/quality in the proposal.

The processing companies, however, don't want to be in a price/turnaround time bidding war, and so try to innovate around scope and/or quality or other areas where they can "add value" and create a premium service.

Some major contractors have historically bid projects "at cost" based on the minimum sequence in the proposal, and then have aimed to "in sell" 20-30% of "added value" extras on a given project. This is not so much "over-selling", more testing/developing advanced options and showing these to the client as optional "premium service" extras.

Where these new "added value" methods are successful, after a while the clients start to include them into the "proposed processing sequence" - that forces the contractors to "cost" those processes in a more competitive way, as they are no longer a "premium" service.

To some extent this cycle of "premium extra" becoming "standard feature" drives the R+D cycle in the seismic processing industry. it's not especially unusual - you see it cars (fitted as standard) and so on.

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Re: Cost of 2D/3D seismic processing

Post by goyah »

thanks for sharing very usefull for me

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