Merakís Capital Planning promises global portfolio optimization (December 1999)

A new module adds economic forecasting, decision support and portfolio optimization to Merakís Value Management suite.

Merak Projects, recently bought by Schlumberger, has added decision analysis and international portfolio optimization to its Value Management suite. The new Capital Planning module leverages data already captured by Merak products such as Peep - claimed to be the most widely used petroleum economics software in the world.

economic forecast

Merakís Dave Mason stated "Peep is used by our multi-national client base to generate economic forecasts, model uncertainty, to consolidate their worldwide assets and report to corporate level. The addition of Capital Planning will allow our clients to use this same data to examine other key business indicators such as production profiling, capital expenditure forecasting, and competitive portfolio evaluation. This will help companies fine-tune decisions while making the best use of their data, time and capital."

decision support

Capital Planning is a decision support application used to select optimal oil and gas portfolios to develop and operate. By modeling existing and projected oil and gas properties using Merak Peep, Portfolio and Monte Carlo functionality, the economics and uncertainties for entire portfolios can be calculated. Decision makers choose a set of properties to consider, define business constraints such as capital spending limits, line of credit constraints, contractual obligations, or working interests, and then choose an economic marker to optimize on.


The optimizer searches for the best portfolio that satisfies all of the constraints. By using the Efficient Frontier theory of investment, it allows companies to identify reward versus risk for their portfolios. The application also has rich data-mining, end-user reporting and capital plan comparison capabilities. More from ź

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