Strategic Budget Optimization through Multi-Criteria Decision Tools. A Case Study of Capex Optimization Exercise through Peak Expansion without Impacting HSE, Asset Integrity or Strategic Business Objectives

This paper presents a systematic methodology developed by a joint taskforce between ADNOC Onshore and its Shareholders to optimize capital expenditure in a challenging expansion business plan environment (+25% production capacity increase over 5 years). The approach ensures a strict guideline approach from the Management with no compromise on the HSE, asset integrity, or any of the strategic business objectives of the JV. Two complementary tools namely "The Bucketing Exercise" and The Capital Efficiency Exercise" were used to identify and prioritize cost optimization opportunities over the 5-years business plan period. The methodology yielded a combined 15% CAPEX reduction for the first year of the business plan while maintaining the production growth targets.