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Selecting the Right Field Development Plan for Global - KBR

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Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

Paper # 2317<br />

<strong>Selecting</strong> <strong>the</strong> <strong>Right</strong> <strong>Field</strong> <strong>Development</strong> <strong>Plan</strong><br />

<strong>for</strong> <strong>Global</strong> Deepwater <strong>Development</strong>s<br />

Richard D’Souza, Shiladitya Basu, Ray Fales<br />

Granherne<br />

A <strong>KBR</strong> Company<br />

Abstract:<br />

Production from deepwater fields began in earnest just fifteen years ago. Currently deepwater<br />

developments provide about 10% of global oil supply. In <strong>the</strong> future, an increasing percentage of<br />

<strong>the</strong> world’s oil and gas supply will come from deepwater. An assessment of existing projects<br />

revealed that a significant percentage underper<strong>for</strong>med technically and commercially. Inadequate<br />

attention to and poorly executed field development planning (FDP) was identified as a leading<br />

causal factor. With large capital outlays and increasingly complex developments, industry has<br />

acknowledged <strong>the</strong> need <strong>for</strong> a rigorous, structured development planning process to fully realize<br />

<strong>the</strong> commercial value of deepwater projects.<br />

A major objective of <strong>the</strong> FDP process is <strong>the</strong> selection of a development plan that satisfies an<br />

Operator’s commercial, strategic and risk objectives, subject to regional and site constraints. The<br />

process requires continuous and effective collaboration and alignment amongst <strong>the</strong> major<br />

stakeholders, which include <strong>the</strong> reservoir, well construction, surface facilities and commercial<br />

teams.<br />

This paper will:<br />

Present an overview of <strong>the</strong> FDP process<br />

Establish <strong>the</strong> links between reservoir characteristics, well construction and surface<br />

facilities<br />

Examine major regional and site considerations that influence selection of a development<br />

plan<br />

Describe a structured FDP selection methodology<br />

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Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

Paper # 2317<br />

The material will provide development planners with a systematic roadmap to select <strong>the</strong> right<br />

development plan <strong>for</strong> a specific deepwater field that will meet <strong>the</strong> project’s commercial, risk and<br />

strategic objectives with a high degree of certainty.<br />

Introduction<br />

<strong>Global</strong> demand <strong>for</strong> oil and gas has been steadily increasing and is projected to continue on this<br />

growth trajectory <strong>for</strong> <strong>the</strong> <strong>for</strong>eseeable future. The price of oil and gas, which are publicly traded<br />

commodities, is determined by <strong>the</strong> spread between demand and supply. The current high oil price<br />

is a response to <strong>for</strong>ecasts that supply will have difficulty keeping up with demand. To minimize<br />

fur<strong>the</strong>r escalation oil and gas supply must keep pace with rising demand.<br />

Currently a large percentage of total daily oil and gas supply are from offshore developments.<br />

Supply from shallow water fields is in terminal decline. Production from deepwater (1000m –<br />

2000m) and ultra deepwater (>2000m) is projected to provide most of future growth<br />

requirements. The contribution of non-OPEC oil supply from deepwater is projected to grow to<br />

35% in 2030, from about 12% today. The industry currently has <strong>the</strong> proven capability to drill and<br />

produce deep reservoirs in up to 3000m water.<br />

<strong>Field</strong> Deepwater <strong>Plan</strong>ning (FDP) Overview<br />

The FDP process involves a continuous interaction between three key elements: subsurface, well<br />

construction, and surface facilities (Figure 1). Regional considerations and site conditions play<br />

key roles in <strong>the</strong> decision making process. The goal is to select a facilities development plan that<br />

is compatible with <strong>the</strong> reservoir depletion plan while satisfying an Operator’s technical, risk and<br />

commercial requirements.<br />

In <strong>the</strong> early years of deepwater development <strong>the</strong>re was little communication between <strong>the</strong>se three<br />

elements. Deepwater technology was evolving and choices <strong>for</strong> facility building blocks were<br />

limited. Fur<strong>the</strong>r, some Operators were pushing <strong>for</strong> faster, cheaper developments. The upshot was<br />

that a significant percentage of deepwater developments underper<strong>for</strong>med. Fortunately rising oil<br />

and gas prices and high productivity wells allowed Operators to make satisfactory commercial<br />

returns in many cases.<br />

Over <strong>the</strong> years, technology advanced and surface facility choices grew. However high capital<br />

costs and substantial risks and uncertainties inherent in developing deepwater fields remained.<br />

The industry recognized <strong>the</strong> need <strong>for</strong> a structured and phased development planning process.<br />

This evolved into <strong>the</strong> phased FDP cycle shown in Figure 2. At <strong>the</strong> end of each phase is a stage<br />

gate where a decision to proceed, discontinue or recycle must be made. Final investment decision<br />

or sanction occurs after <strong>the</strong> Define phase. The greatest value to a project is created in <strong>the</strong><br />

Appraise and Select phases which involve:<br />

- Developing a robust reservoir model and depletion plan<br />

- Optimizing drilling program (greatest recovery with fewest wells)<br />

- Minimizing well per<strong>for</strong>mance uncertainty<br />

- <strong>Selecting</strong> <strong>the</strong> right surface facility plan<br />

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Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

Paper # 2317<br />

The spend in <strong>the</strong>se phases is generally a small percentage of total development spend but<br />

provides substantial added value to <strong>the</strong> project.<br />

Reservoir Characterization and Depletion <strong>Plan</strong><br />

The FDP process begins in earnest following a successful exploration and appraisal program.<br />

The first step is <strong>for</strong> <strong>the</strong> subsurface team (geologists, geophysicists, and reservoir engineers) to<br />

generate a robust model of <strong>the</strong> reservoir from seismic, well log and drill stem test data. The last<br />

decade has seen step changes in <strong>the</strong> ability to rapidly develop sophisticated models. The key is in<br />

data interpretation and assignation of rock properties (permeability and porosity) that drive well<br />

per<strong>for</strong>mance to <strong>the</strong> model. This is followed by multiple simulations by varying well count,<br />

profile and completion types and assessing well per<strong>for</strong>mance and recovery. A typical well<br />

production profile is shown in Figure 3. Because of <strong>the</strong> extremely high cost of drilling and<br />

completing wells it is critical to establish a depletion plan that maximizes recovery factor with<br />

fewest wells. With complex reservoirs (stacked, faulted) or those with poorly understood<br />

geology, a decision on measures to reduce uncertainty must be made.<br />

Strategies to manage reservoir uncertainty are summarized in Table 1 (Ref. 1). They are, in<br />

order of increasing capital cost and uncertainty reduction; drill stem test, more appraisal wells,<br />

long term test, phased and staged development. The FDP team must trade-off <strong>the</strong> cost associated<br />

with each strategy against <strong>the</strong> value of in<strong>for</strong>mation obtained in mitigating reservoir and well<br />

per<strong>for</strong>mance uncertainty.<br />

The success of <strong>the</strong> FDP lies in <strong>the</strong> skill of <strong>the</strong> subsurface team in achieving <strong>the</strong> highest recovery<br />

factor with fewest wells while factoring in uncertainty in key variables as well as <strong>the</strong> cost and<br />

complexity of well construction and completion. Additionally <strong>the</strong> top hole locations and<br />

dispersion of wells at <strong>the</strong> seabed drive <strong>the</strong> selection of <strong>the</strong> facilities development plan. The<br />

greater <strong>the</strong> interaction between <strong>the</strong> subsurface, well construction and facilities teams in <strong>the</strong><br />

appraise and select phases of <strong>the</strong> FDP, <strong>the</strong> greater <strong>the</strong> probability of achieving this goal.<br />

Well Construction and Intervention<br />

The cost of drilling and completing deepwater wells can often consume half <strong>the</strong> development<br />

budget because of <strong>the</strong> high spread rates of new generation, high capacity drilling rigs (Figure 4)<br />

and drilling durations. Drilling ultra deepwater wells must overcome significant challenges such<br />

as high currents in <strong>the</strong> water column, thick unstable salt <strong>for</strong>mations, shallow geohazards and<br />

water flows and very high pressure and temperature reservoirs.<br />

Wells have to be periodically re-entered <strong>for</strong> reservoir management, remediation and<br />

recompletions. Wells directly accessed from a production or wellhead plat<strong>for</strong>m enable easier and<br />

more frequent intervention than subsea wells resulting in lower operating cost and increased<br />

recovery. They also facilitate easier running and retrieval of downhole boosting pumps which<br />

can substantially enhance production profiles and ultimate recovery. Choosing between direct<br />

access and subsea wells is an important decision in <strong>the</strong> FDP process.<br />

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Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

Paper # 2317<br />

In <strong>the</strong> aftermath of Macondo, industry has tightened regulations, increased oversight,<br />

implemented additional safety measures in well construction and developed sophisticated oil<br />

spill response measures to rapidly cap, contain and clean up spills resulting from loss of well<br />

control in a deepwater well.<br />

Regional Considerations<br />

Regional considerations have a significant impact on <strong>the</strong> FDP process. The host country dictates<br />

<strong>the</strong> terms and conditions of <strong>the</strong> exploitation of its hydrocarbon resources. These vary<br />

significantly from country to country. A few of <strong>the</strong> more impactful regional considerations are<br />

briefly discussed.<br />

The Production Sharing Agreement defines commercial and contractual terms between <strong>the</strong> host<br />

nation and <strong>the</strong> block operator. These include capital cost recovery, production sharing terms,<br />

taxes and royalties that strongly influence project economics and development strategies.<br />

Local content requirements are country specific, are becoming more prescriptive, and must be<br />

factored into <strong>the</strong> development planning decision process.<br />

Regions that have well developed infrastructure (existing host facilities, pipeline grid, shore<br />

bases, etc.) provide an operator with considerable FDP flexibility as will those that have ready<br />

markets and distribution networks <strong>for</strong> produced oil and gas. Those that do not will have higher<br />

capital, operating and midstream costs. Monetizing produced gas in regions that cannot consume<br />

it is a particularly challenging issue.<br />

The host nation will have a regulatory regime that oversees safety and environmental impact of<br />

drilling and production operations. Developed nations have more stringent regulations that will<br />

result in higher development costs.<br />

Site Characteristics<br />

<strong>Field</strong> architecture and floating plat<strong>for</strong>m selection are strongly influenced by site-specific water<br />

depth, metocean conditions, seabed bathymetry and geotechnical conditions. For example loop<br />

and eddy currents prevalent in <strong>the</strong> Gulf of Mexico (GoM) substantially impact drilling and<br />

seabed installation operations and drive fatigue lives of mooring and riser systems. The capex,<br />

drillex and opex of plat<strong>for</strong>ms located in sites subject to hurricanes or cyclones will be<br />

significantly higher than those in mild or moderate metocean conditions.<br />

Seabed bathymetry and geotechnical conditions influence well and plat<strong>for</strong>m placement and<br />

technical feasibility of station-keeping systems. Rough seabed terrain, escarpment and canyons<br />

will drive field architecture, flowline routing and installation cost of infield flowlines.<br />

It is imperative that quality site-specific metocean, bathymetry and geotechnical data be acquired<br />

prior to undertaking facility development planning.<br />

Overview of Select Phase Screening Methodology<br />

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Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

Paper # 2317<br />

A typical screening methodology is summarized in Figure 5. The subsurface team creates a<br />

reservoir model from available seismic and well log data. Working in concert with <strong>the</strong> well<br />

construction team <strong>the</strong>y generate reservoir depletion scenarios (production, injection well count<br />

and seabed locations, production profiles with associated uncertainties). The number of scenarios<br />

will depend on <strong>the</strong> size, geometry and complexity of <strong>the</strong> reservoir and its rock and fluid<br />

properties.<br />

The surface facility team <strong>the</strong>n generates development scenarios to match <strong>the</strong>se reservoir<br />

depletion scenarios, factoring in regional considerations and site conditions. It is possible to<br />

create a large number of facility development scenarios from <strong>the</strong> catalogue of available and<br />

proven facility components. A procedure to ensure that all probable development scenarios<br />

consistent with reservoir and site constraints are visualized and assessed is described. It consists<br />

of deconstructing <strong>the</strong> facility development into discrete building blocks (subsea, floating<br />

systems, export systems) which are combined appropriately into a number of discrete facility<br />

development scenarios.<br />

If <strong>the</strong> number of scenarios is large (10 or more) a two stage screening process is recommended.<br />

The first is qualitative based on scoring and ranking non-commercial factors. This requires an<br />

experienced multi-disciplinary facilities team to achieve <strong>the</strong> desired result of selecting a smaller<br />

group of technically feasible development scenarios <strong>for</strong> <strong>the</strong> second stage screening.<br />

The second stage screening is a quantitative comparison of economics of each scenario. This<br />

requires concept definition of <strong>the</strong> scenario building blocks followed by capex, opex, and<br />

schedule estimates to a defined accuracy level. The commercial team will create economic<br />

models from this in<strong>for</strong>mation. The models will assess life cycle economics of each scenario<br />

(including drillex, revenue streams, decommissioning) with production sharing terms factored in,<br />

against specific commercial hurdles required to sanction a project. If more than one development<br />

scenario clears <strong>the</strong> commercial hurdles <strong>the</strong>n <strong>the</strong> final selection will be based on strategic drivers,<br />

contracting strategies and relative risk assessment.<br />

Surface Facility Building Blocks<br />

A deepwater facility development scenario can be constructed from <strong>the</strong> following building<br />

blocks: Subsea System, Drilling Plat<strong>for</strong>ms, Production Plat<strong>for</strong>m, Export System and Onshore<br />

Facilities (Table 2).<br />

Subsea System Building Blocks: A subsea system consists of an assemblage of trees, manifolds,<br />

umbilicals and flowlines to a riser pipeline end termination (PLET). The basic building blocks<br />

are <strong>the</strong> single well tieback and a multi-well manifolded tieback. A variety of subsea architectures<br />

can be generated from <strong>the</strong>se basic building blocks regardless of well count and seabed dispersion<br />

of subsea trees. It is advisable to have seabed bathymetry data and to layout <strong>the</strong> subsea<br />

architectures including routing of flowlines to potential host plat<strong>for</strong>m locations. Preliminary<br />

hydraulic analysis runs are conducted to size flowlines and derive arrival production rates,<br />

temperatures and pressures at <strong>the</strong> plat<strong>for</strong>m.<br />

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Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

Paper # 2317<br />

Enhanced Recovery Building Blocks: Enhanced recovery is often necessary to boost well flow<br />

rates as reservoir pressures decline to overcome <strong>the</strong> large hydrostatic heads in ultra deepwater<br />

and ensure ultimate recovery <strong>for</strong> a commercially viable development. Traditional enhanced<br />

recovery building blocks are water and gas injection via subsea wells and gas lift at riser base or<br />

downhole. Feasibility and reliability of subsea mechanical boosting technologies in increasingly<br />

deeper waters have greatly improved and are included as building blocks.<br />

Drilling Plat<strong>for</strong>m Building Block: Subsea wells remote from <strong>the</strong> host plat<strong>for</strong>m will generally be<br />

drilled and completed by a Mobile Offshore Drilling Unit. These will be spread moored or<br />

dynamically positioned semisubmersible or dynamically positioned drillships. In some cases<br />

where a large reservoir can be depleted from a single drill center, a tender assisted or full drilling<br />

wellhead spar or TLP can be used as a building block in conjunction with an FPSO stationed in<br />

close proximity.<br />

Host Plat<strong>for</strong>m Building Blocks: The host plat<strong>for</strong>m building block consists of topsides, hull,<br />

station-keeping and riser systems. Besides <strong>the</strong> fundamental mission of processing well fluids, a<br />

host plat<strong>for</strong>m could have drilling or workover functions. There is a growing catalogue of mature<br />

production plat<strong>for</strong>ms (TLP, spar, semisubmersible, ship-shape FPSO) and proven plat<strong>for</strong>ms<br />

(cylindrical FPSO, FDPSO), to select from (Figure 6). An addition to <strong>the</strong> host plat<strong>for</strong>m<br />

catalogue is <strong>the</strong> FLNG plat<strong>for</strong>m <strong>for</strong> large remote gas fields, following recent <strong>the</strong> sanction of two<br />

FLNG projects. A potential building block is an existing floating production plat<strong>for</strong>m or a<br />

shallow water fixed plat<strong>for</strong>m located within subsea tieback distance.<br />

Export System Building Blocks: The host plat<strong>for</strong>m processes hydrocarbons to pipeline or sales<br />

quality oil and gas. Each will have an oil and gas export system. Oil export system building<br />

blocks will include pipeline to market on onshore tank farm or via direct shuttle tanker loading<br />

from an FPSO host. For host plat<strong>for</strong>ms without buffer storage capability (Semi, TLP, Spar) an<br />

option is to direct <strong>the</strong> flow to an FSO/shuttle tanker combination. Gas export building blocks<br />

will include pipeline to shore <strong>for</strong> onshore processing or conversion to LNG or power. A FLNG<br />

host will export its product by direct offloading to a LNG tanker.<br />

Onshore Facility Building Blocks: These could include a tank farm and loading terminal <strong>for</strong> oil<br />

stream and a gas processing plant <strong>for</strong> LNG plant with storage and loading terminal <strong>for</strong> <strong>the</strong> gas<br />

stream. O<strong>the</strong>r potential options are converting gas to wire or liquids at an onshore plant.<br />

Combining Building Blocks into <strong>Development</strong> Scenarios<br />

The most effective way to generate multiple facilities development scenarios is via a facilitated<br />

framing workshop with representatives from all stakeholders present. The workshop should be<br />

held early in <strong>the</strong> select phase with <strong>the</strong> following objectives:<br />

Establish design basis<br />

Generate development scenarios<br />

Develop decision drivers and scoring methodology<br />

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Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

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Establishing Design Basis: The design basis provides <strong>the</strong> framework and constraints within<br />

which <strong>the</strong> development team must operate. The design basis as a minimum must include<br />

relevant data related to:<br />

Reservoir Characterization & Depletion <strong>Plan</strong>: well count and seabed locations, fluid<br />

properties, production profiles, enhanced recovery, reservoir management<br />

Drilling & Completions: on well locations, drilling or workover rig specifications,<br />

drilling and completion durations, intervention type and frequency<br />

Site and Regional Conditions: water depth, metocean conditions, seabed bathymetry and<br />

geohazards, infrastructure and logistics, local content requirements<br />

Generate <strong>Development</strong> Scenarios: This is a two step process illustrated in Figure 7. The first is<br />

to choose applicable components from each surface facility building block (Table 2) consistent<br />

with Design Basis requirements and constraints. There are a large number of floating plat<strong>for</strong>m<br />

building blocks that include plat<strong>for</strong>m types (Figure 6), as well as variations in hull configurations<br />

and topsides functional capabilities. Reference 3 provides a decision tree approach to selecting<br />

<strong>the</strong> most appropriate building blocks <strong>for</strong> GoM deepwater development based on a hierarchy of<br />

recoverable reserves, well count, production rates, well seabed locations and water depth.<br />

The next is to assemble surface facility development scenarios by combining components from<br />

each building block. As many practical combinations should be included at <strong>the</strong> stage to insure<br />

that all probable development scenarios are canvassed. Figure 7 shows how four scenarios are<br />

generated from generic building blocks <strong>for</strong> illustrative purposes. The qualitative screening<br />

process described below can assess and grade (or rank) preferred scenarios from a large<br />

population very efficiently.<br />

Decision Drivers & Scoring Methodology: A qualitative ranking method to grade and screen<br />

development scenarios is described. A set of decision drivers is established and agreed upon.<br />

These must capture major non-commercial factors that drive an Operator’s selection decision.<br />

The drivers should be mutually exclusive and limited to about five or six. Typical drivers are:<br />

Minimize technical risk<br />

Maximize hydrocarbon recovery<br />

Schedule to first oil or gas<br />

Flexibility <strong>for</strong> future expansion<br />

Flexibility to adapt to reservoir uncertainty<br />

Operability, Reliability, Availability<br />

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Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

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The selected drivers should be weighted to reflect <strong>the</strong>ir relative importance in achieving<br />

development objectives. Each driver is scored on a scale of 1 to 5 with <strong>the</strong> high score indicating<br />

greater desirability. A rationale <strong>for</strong> assigning relative scores should also be established to ensure<br />

that sufficient, consistent and explainable differentiation is achieved.<br />

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Qualitative Screening Matrix<br />

Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

Paper # 2317<br />

A typical qualitative screening matrix is shown in Table 3 using <strong>the</strong> four scenarios generated<br />

above (Figure 7). Each development scenario is listed in a row of <strong>the</strong> matrix. For clarity <strong>the</strong><br />

building blocks used to create <strong>the</strong> scenario are identified. The scenario is <strong>the</strong>n scored on <strong>the</strong> 1-5<br />

scale <strong>for</strong> each decision driver and weighted average score is calculated. Once all scenarios are<br />

scored, those with <strong>the</strong> highest weighted average scores are short listed <strong>for</strong> <strong>the</strong> second stage<br />

(quantitative) screening. A “threshold” score can be established with scenarios exceeding <strong>the</strong><br />

score retained and <strong>the</strong> rest triaged. Since commercial considerations are not addressed in this<br />

screening, it is important to retain scenarios that bracket a range of options from those with low<br />

capex and schedules to those with greater capex but higher throughputs and ultimate recovery. It<br />

is typical to retain from 5 to 10 development options <strong>for</strong> second stage screening.<br />

Second Stage Screening<br />

Each surviving FDP scenario is subjected to a quantitative screening process executed in three<br />

phases.<br />

Concept Definition: The objective is to define all surface facility components to a level<br />

sufficient to generate Class 4 capex, opex and schedule (sanction to first oil/gas) estimates as<br />

input to <strong>the</strong> economic model.<br />

It begins by developing overall field architecture that locates all building blocks and establishes<br />

<strong>the</strong>ir interconnection (flowline and pipeline routing) subject to reservoir geometry, well<br />

locations, site specific bathymetry and regional constraints. Flow assurance simulations will size<br />

flowline, risers and pipelines, define measures to prevent plugging of in-field flowlines in<br />

operating and shut-in conditions (chemicals, insulation etc.) and determine arrival pressures,<br />

temperatures, and flow rates of production fluids at <strong>the</strong> plat<strong>for</strong>m. Topside equipment needed to<br />

process and export oil and gas and to support o<strong>the</strong>r functional requirements (drilling rig,<br />

enhanced recovery, riser tensioning) is defined and a deck layout prepared to suit <strong>the</strong> specific<br />

hull configuration topside weight and CG are estimated.<br />

The hull configuration is sized to support <strong>the</strong> topsides, riser, hull and mooring weight. <strong>Global</strong><br />

per<strong>for</strong>mance and stability are validated to ensure operability and survivability in extreme seas.<br />

Technical verification of mooring and riser systems follow to a level sufficient to verify technical<br />

feasibility. An execution plan <strong>for</strong> <strong>the</strong> design, fabrication, integration, transportation and<br />

installation of subsea, floating plat<strong>for</strong>m and export systems is developed which will be <strong>the</strong> basis<br />

<strong>for</strong> capex and schedule estimates. A high degree of confidence and consistency in developing<br />

<strong>the</strong>se estimates is essential to ensure an equitable comparison of scenarios. Validation by<br />

benchmarking against analogous projects is recommended.<br />

Economic Analysis: Commercial and economic teams conduct an economic analysis of each<br />

FDP scenario to derive commercial metrics such as NPV and IRR. Principal drivers that<br />

influence <strong>the</strong>se metrics are capital and operating costs, production profiles, ultimate recovery and<br />

realized sale price of produced oil and gas. Each driver has associated uncertainties which are<br />

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Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

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quantified by probabilistic analysis. The NPV reflects impacts of taxes, royalties and o<strong>the</strong>r<br />

relevant terms in <strong>the</strong> Production Agreement with <strong>the</strong> host country.<br />

Final Selection: The metrics of each scenario are compared against a commercial threshold.<br />

Those that exceed <strong>the</strong> threshold are compared against each o<strong>the</strong>r. If one scenario is clearly<br />

differentiated it will be recommend as <strong>the</strong> field development plan. If commercial metrics of<br />

several scenarios are within <strong>the</strong> margin of error of estimates, <strong>the</strong>n a relative risk assessment will<br />

fur<strong>the</strong>r differentiate and facilitate recommendation of a scenario. These include technical,<br />

execution, operational, safety and commercial risks. Scenarios that provide greater contracting<br />

flexibility and flexibility to adapt to reservoir uncertainty will be favored.<br />

The FDP team will present a justification <strong>for</strong> <strong>the</strong> recommended field development plan to<br />

management backed up with a decision support package to enable passage through <strong>the</strong> Select<br />

stage gate and into <strong>the</strong> Define phase of <strong>the</strong> FDP process.<br />

Conclusion<br />

Deepwater projects are capital intensive and complex undertakings requiring a phased stagegated<br />

process to select and execute <strong>the</strong> development. The greatest value to a project is realized<br />

in <strong>the</strong> Appraise and Select phase of <strong>the</strong> process when <strong>the</strong> field development plan (subsurface,<br />

drilling and completions, surface facilities) is picked <strong>for</strong> <strong>the</strong> Define phase. A methodology to<br />

generate, screen and select a development plan that has a high probability of achieving defined<br />

project objectives is presented. A necessary condition <strong>for</strong> selecting <strong>the</strong> right project <strong>for</strong> a<br />

deepwater development is <strong>the</strong> skill and experience of <strong>the</strong> team and continuous and effective<br />

collaboration between <strong>the</strong> multiple disciplines that comprise <strong>the</strong> team.<br />

References:<br />

1. D’Souza R., Basu S., “<strong>Field</strong> <strong>Development</strong> <strong>Plan</strong>ning and Floating Plat<strong>for</strong>m Concept Selection<br />

<strong>for</strong> <strong>Global</strong> Deepwater <strong>Development</strong>s;” OTC 21583; 2011.<br />

2. Xia J., D’Souza R., “Applicability of Various Floating Plat<strong>for</strong>m Designs <strong>for</strong> Deepwater<br />

Hydrocarbon Production Off North West Australia,” DOT 2012, Perth.<br />

3. D’Souza R., Basu S., “<strong>Selecting</strong> Floating Plat<strong>for</strong>ms <strong>for</strong> Developing Deepwater Gulf of<br />

Mexico <strong>Field</strong>s”, DOT Houston, 2010.<br />

4. D’Souza R., Basu S., “Importance of Topsides in Design and Selection of Deepwater<br />

Floating Plat<strong>for</strong>ms”, OTC 22403, OTC Brazil 2011.<br />

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Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

Paper # 2317<br />

Figure 1 Deepwater <strong>Field</strong> <strong>Development</strong> <strong>Plan</strong>ning Overview<br />

11


Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

Rate (stb/d) / Reservoir Pressure (psia)<br />

Paper # 2317<br />

Figure 2 <strong>Field</strong> <strong>Development</strong> <strong>Plan</strong>ning Cycle<br />

8,000<br />

7,000<br />

6,000<br />

5,000<br />

4,000<br />

3,000<br />

2,000<br />

1,000<br />

0<br />

Reservoir<br />

Pressure<br />

Oil Well<br />

Production Profile<br />

Water Cut<br />

Gas Rate<br />

0 180 360 540 720 900 1,080<br />

Day<br />

1,260 1,440 1,620 1,800 1,980<br />

0<br />

2,160<br />

Figure 3 Typical Production Profile<br />

Oil Rate<br />

Figure 4 A 6th Generation Drilling Semisubmersible<br />

24<br />

21<br />

18<br />

15<br />

12<br />

9<br />

6<br />

3<br />

Watercut (%) / Gas Rate (MMscfd)<br />

12


Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

Paper # 2317<br />

Figure 5 Select Phase Screening Methodology<br />

13


Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

Paper # 2317<br />

Figure 6 Catalogue of Floating Plat<strong>for</strong>m Building Blocks<br />

14


Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

Paper # 2317<br />

Figure 7 <strong>Field</strong> <strong>Development</strong> Scenario Generation with Building Blocks<br />

15


Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

Paper # 2317<br />

Table 1 Strategies <strong>for</strong> Managing Well Per<strong>for</strong>mance and Reservoir Uncertainty<br />

Strategy Description Duration<br />

(months)<br />

Drill Stem<br />

Test<br />

More<br />

Appraisal<br />

Wells and<br />

Sidetracks<br />

Single Well<br />

producing to<br />

MODU, gas<br />

flared<br />

Drill additional<br />

appraisal wells to<br />

define extent and<br />

connectivity of<br />

reservoir<br />

Extended Well Single well<br />

Test producing to<br />

production<br />

plat<strong>for</strong>m<br />

Phased<br />

<strong>Development</strong><br />

(Early<br />

Production<br />

System)<br />

Staged<br />

<strong>Development</strong><br />

Multiple wells<br />

producing to<br />

mobile production<br />

plat<strong>for</strong>m; gas<br />

exported or<br />

injected<br />

Bring wells online<br />

to a production<br />

plat<strong>for</strong>m in stages<br />

1-2 per<br />

well<br />

6-12 per<br />

well<br />

Pros Cons Examples<br />

Relatively low cost<br />

($100M - $150M per<br />

well);<br />

MODU can be used<br />

<strong>for</strong> testing.<br />

Some wells designed<br />

as keepers<br />

More reservoir data<br />

and improved<br />

reservoir model<br />

6-12 Improved confidence<br />

in well per<strong>for</strong>mance<br />

and recovery<br />

Better definition of<br />

reservoir connectivity<br />

36-60+ Significant reduction<br />

in well per<strong>for</strong>mance<br />

and reservoir<br />

connectivity risk;<br />

Test enabling<br />

technologies and<br />

completions;<br />

Optimize full field<br />

development plan to<br />

capture reservoir<br />

Life of<br />

field<br />

upside.<br />

Flexibility to capture<br />

reservoir upside<br />

Maximize reservoir<br />

recovery<br />

Some (but<br />

insufficient) well<br />

per<strong>for</strong>mance data<br />

Limited well<br />

connectivity data<br />

Increased cycle<br />

time to sanction<br />

Limited well<br />

per<strong>for</strong>mance data<br />

Jack (Lower<br />

Tertiary,<br />

GOM)<br />

18-24 months to Roncador<br />

mobilize (Campos<br />

production plat<strong>for</strong>m Basin,<br />

Capex in $400M - Brazil)<br />

$600M range<br />

Significant Capex<br />

($1B $3B) outlay<br />

36+ months to<br />

mobilize plat<strong>for</strong>m<br />

Largest Capital<br />

investment and<br />

longest schedule to<br />

peak production<br />

among all options<br />

Cascade &<br />

Chinook<br />

(Lower<br />

Tertiary,<br />

GOM)<br />

Perdido<br />

(Lower<br />

Tertiary,<br />

GOM)<br />

16


Subsea<br />

Production<br />

Single well<br />

tieback<br />

Cluster well<br />

manifold<br />

with dual<br />

flowline<br />

tieback<br />

Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

Enhanced<br />

Recovery<br />

Mudline<br />

Separation<br />

and ESPs<br />

Multiphase<br />

Pumps<br />

Subsea Gas<br />

Compression<br />

Gas Lift<br />

Gas<br />

Injection<br />

Water<br />

Injection<br />

Paper # 2317<br />

Table 2 Surface Facility Building Blocks<br />

Drilling<br />

Plat<strong>for</strong>m<br />

Mobile<br />

Offshore<br />

Drilling Unit<br />

Tender<br />

Assist<br />

Wellhead<br />

Spar<br />

Full drilling<br />

wellhead<br />

Spar<br />

Tender assist<br />

wellhead<br />

TLP<br />

Full drilling<br />

wellhead<br />

TLP<br />

Host<br />

Production<br />

Plat<strong>for</strong>m<br />

Dry Tree<br />

Spar with<br />

Drilling<br />

Dry Tree<br />

Spar with<br />

Workover<br />

Wet Tree<br />

Spar<br />

Dry Tree<br />

TLP with<br />

Drilling<br />

Dry Tree<br />

TLP with<br />

Workover<br />

Wet Tree<br />

TLP<br />

Shipshape<br />

FPSO<br />

Cylindrical<br />

FPSO<br />

Production<br />

Semisub<br />

Production/<br />

Drilling<br />

Semisub<br />

FLNG<br />

Existing<br />

Host<br />

Fixed<br />

Plat<strong>for</strong>m<br />

Export<br />

System<br />

Oil Pipeline<br />

Gas Pipeline<br />

Oil shuttle<br />

tanker<br />

LNG shuttle<br />

Tanker<br />

FSO with<br />

Oil Shuttle<br />

Onshore<br />

Facility<br />

Oil Tank<br />

Farm /<br />

Terminal<br />

Gas<br />

Processing<br />

<strong>Plan</strong>t<br />

Gas to<br />

Liquids<br />

<strong>Plan</strong>t<br />

Gas to<br />

Power <strong>Plan</strong>t<br />

LNG <strong>Plan</strong>t<br />

17


Option ID Subsea<br />

Producti<br />

on<br />

Enhance<br />

d<br />

Recover<br />

y<br />

Deep Offshore Technology, 27-29 November 2012, Perth, Australia<br />

Producti<br />

on<br />

Plat<strong>for</strong>m<br />

Paper # 2317<br />

Table 3 Qualitative Screening Matrix<br />

Gas<br />

Export<br />

Oil<br />

Export<br />

Onshore<br />

Oil <strong>Plan</strong>t<br />

Onshore<br />

Gas<br />

<strong>Plan</strong>t<br />

Overall<br />

Preference<br />

(Weighted)<br />

Scoring: 5 most preferred; 1 least preferred<br />

Technical<br />

Driver 1<br />

Technical<br />

Driver 2<br />

Technical<br />

Driver 3<br />

Technical<br />

Driver 4<br />

1 1S 1E 1P 1GX 1OX 1OP 1OG 3.2 3 4 2 3 5<br />

2 1S 1E 2P 1GX 1OX 2OP 2OG 3.4 4 5 1 1 4<br />

3 1S 2E 3P 2GX 2OX 1OP 1OG 3.8 5 3 3 4 3<br />

4 2S None 4P 2GX 2OX 2OP 2OG 2.2 1 1 5 5 1<br />

Driver weighting<br />

1.0<br />

Sum of Weights<br />

35% 30% 20% 10% 5%<br />

Technical<br />

Driver 5<br />

18

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