Origin's upstream business started the Portfolio Planning and Ranking (PPR) Project in late 2010 to align individual petroleum business unit plans with organisational strategic goals. The solution generated by the PPR Project provided Origin's upstream business with a consistent platform for absolute and relative assessment of petroleum development opportunity across the organisation.
The rapid growth of Origin's upstream business resulted in several different methods for calculating project economics and assessing the merits of potential opportunities. The use of these varied methods saw the need for a consistent and streamlined approach. Through the PPR Project, Origin's upstream business has improved its ability to objectively and effectively assess its assets and development opportunities.
The solution provides a transparent and scalable platform for continuous integration of critical business information at the operational level. It also provides the capability to report at a commercially relevant level. The project's key to the success was a holistic approach that included people, process and systems technology.
Also important was effective executive sponsorship and project management, ongoing change management and communication and the active participation of managers, subject matter experts and people affected by the project (targetted stakeholders). The project has effectively provided a bridge between technical and commercial disciplines, enabling Origin's upstream business units to make timely and informed decisions, maintain alignment with and support Origin's strategic goals and maximise resource use. Most importantly, an organisational capability gap has been filled with a system that facilitates efficiency and augments governance systems, yet remains flexible enough to effectively manage Origin's diverse petroleum portfolio.
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