The company used Peak's P1 software, which applies a technique known as Monte Carlo analysis to calculate well timings and costs. P1 delivers a representation of the spread of possible time/cost outcomes in well delivery, which allowed Transocean to propose a

cost-effective integrated services arrangement to Oilexco.

"Companies traditionally have been forced to build in contingent costs to cover risk uncertainties. P1 allows a much greater understanding of the project thus allowing the operator and contractor to develop far more equitable commercial terms in which all parties fully understand the uncertainties and the allocation of business risk," said Andrew Paterson, managing director of the Peak Group.

In addition to building the P1 models, Peak will provide a full well project management service to Oilexco for the duration of the project.