Selecting the Right Field Development Plan for Global - KBR
Selecting the Right Field Development Plan for Global - KBR
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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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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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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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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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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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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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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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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Figure 1 Deepwater <strong>Field</strong> <strong>Development</strong> <strong>Plan</strong>ning Overview<br />
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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 />
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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 />
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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 />
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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 />
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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