Sec02 Field Development Planning

Deepwater Training

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Field Development Planning

Sec02_FieldDevelopmentPlanning_All.ppt

AIPM

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Field Development Planning

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Definitions n

TLP

Tension Leg Platform

n

Mini-TLP

Mini Tension Leg Platform (Atlantia, Modec)

n

ETLP

Extended Tension Leg Platform

n

SPAR

Cylindrical Floating Vessels

n

DDCV

Deep Draft Caisson Vessel

n

SCF

Single Column Floater (SPAR Shape)

n

Semi-sub

Semi-submersible Floater

n

FPS

Floating Production System

n

FPSO

Floating Production Storage and Offloading

n

GBS

Concrete Gravity Based Structure

n

Tendon

TLP Station Keeping Method

Sec02_FieldDevelopmentPlanning_All.ppt

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Definitions n

KIPS

Kilo Pounds (Thousand Pounds)

n

SPM

Single Point Mooring

n

CALM

Catenary Anchor Leg Mooring

n

SCR

Steel Catenary Riser

n

VIV

Vortex Induced Vibration

n

ROV

Remotely Operated Vehicle

n

MODU

Mobile Offshore Drilling Unit

n

ABS

American Bureau of Shipping

n

DNV

Det Norske Veritas

Sec02_FieldDevelopmentPlanning_All.ppt

Why All The Fuss Over Deepwater ? • Large unexplored areas 3D Seismic It is an opportunity for large reserves and high flow rates Technology is rapidly reducing the exploration cost and time to first oil and cost. Why all the planning? But it is expensive Specialized equipment is required for drilling and development

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IT IS DEEP.

Sec02_FieldDevelopmentPlanning_All.ppt

The Planning Process Establish Project Objectives

n

Evaluate Constraints

n

n

Economics

n

Schedule

n

Product

n

Risk

Identify Development Option Perform Feasibility Studies

n

Establish Field Development Plan

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n

n

Produce Conceptual Design

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Constructibility Program

Highest

Preliminary Engineering

Added Value by moving constructability forward with EPCI contractor performing screening and concept development

Detailed Design

Influence on Cost

n

Construction

Installation

Lowest Start

First Oil

Project Duration

Finish

The Planning Process n

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n

Define Interfaces n

Downhole / Subsea / Hull

n

Fluid Flow / Connections / Treatment

n

Electrical / Hydraulic

n

Subsea / Topsides

n

Maintenance

n

Intervention

Prepare Specifications n

Equipment

n

Quality

n

Project Execution

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The Planning Process n

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n

System Design n

Flow Assurance

n

Well Locations

n

Installation Risks

n

Maintenance

n

Intervention

Future Considerations n

Flexibility

n

Expandability

n

Develop “Standard” Approach

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Deepwater Field Development Front End Process Discovery

Reservoir Appraisal

Fluid Analysis & Field Parameters

Conceptual Evaluation - Field Options

Technology Validation Critical Technology Elements

Feed

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Preferred Concept

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Concept Resilience Checks Value Engineering

EPC Tender Call

Project Development Gate Process

Ÿ Ÿ Ÿ Ÿ

STAGE 1

STAGE 2

STAGE 3

STAGE 4

SCOPING

SCREENING

DEFINITIVE PLANNING

PROCESS DESIGN

"is it a good idea?"

"Do we have the right solution"

"Are the bases really firm?"

"Any changes? Ready to go?

EMPHASIS

EMPHASIS

EMPHASIS

EMPHASIS

IDENTIFY OPPORTUNITY SCOPE ECONOMICS ID CRITICAL ISSUES STRATEGIC ALIGNMENT

Ÿ Ÿ Ÿ Ÿ Ÿ

PRELIMINARY Ø BUSINESS CASE (BC) Ø VENTURE PHILOSOPHY (VP)

TECHNICAL BASIS

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SUFFICIENT FOR TECHNICAL FEASIBILITY

Ÿ Ÿ Ÿ

UPDATED BC & VP RISK & DECISION ANALYSIS VENTURE BASES Ø TECHNOLOGY Ø BUSINESS & MARKETING Ø MANUFACTURING

TECHNICAL BASIS SUFFICIENT FOR +/- 20-30% COST ESTIMATE

Conceptual Field Development Studies

Open Architecture

Sec02_FieldDevelopmentPlanning_All.ppt

Ÿ Ÿ Ÿ

REFINE BUSINESS CASE REFINE FACILITIES BASIS RESOURCING NEXT PHASE

DELIVERABLES

DELIVERABLES Ÿ

EVALUATE OPTIONS RISK ANALYSIS REFINE BUSINESS CASE RESOLVE CRITICAL ISSUES RESOURCING NEXT PHASE

Ÿ Ÿ Ÿ

DELIVERABLES

DELIVERABLES Ÿ Ÿ Ÿ Ÿ

VENTURE MANAGER NAME TEAM IN PLACE UPDATED VENTURE BASES UPDATED COST ESTIAMTE

TECHNICAL BASIS SUFFICIENT DETAIL TO ENABLE PROCESS DESIGNA ND PERMITTING

Solution Selection

Technology Screening & Specification

FEED Studies

FINAL BUSINESS CASE TECHNICAL DEFINITION RESOURCING THRU S/U

Ÿ Ÿ Ÿ

FINAL BASIS / APPRO DOC. PROCESS DESIGN / HAZOP +/- 10% COST ESTIAMTE

TECHNICAL BASIS SUFFICIENT TO ENABLE Ÿ +/- 10% COST ESTIAMTE Ÿ DETAILED ENGINEERING Ÿ SAFETY REVIEWS

EPCI

Estimate Definition Type

Accuracy

Class

+/- 5%

II

14-20

Capital Cost

+/- 10-20%

II, IV

5-12

Appropriation

+/- 20-25%

VA,VB

2-5 wks

Feasibility

+/- 25-35%

VI, VII

days

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Definitive

Timing

Times for Definitive and Capital Cost Estimates are from completion of basic and process engineering.

Sec02_FieldDevelopmentPlanning_All.ppt

wks

wks

Pre-sanction Project Activities Zero Date

FieldDevelopment DevelopmentStudies Studies Field 6 Months

Operator\Partner Operator\Partner In-house In-house Evaluation/Approval Evaluation/Approval

8 Months

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BasicEngineering Engineering Basic 9 to 10 Months

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Sanction EPC EPC

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Field Development Objectives and Philosophies

Key Objectives and Philosophies n

Key Objectives n

n

Reduce Project Costs

Key Philosophies n

Flexibility

n

CAPEX

n

design

n

OPEX

n

installation

n

operation

n

expansion

Reduce Project Cycle Time n

from initial discovery to first

production

Improve Safety and Risk Parameters

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n

n

Sec02_FieldDevelopmentPlanning_All.ppt

n

Building Blocks

n

Composite Systems n

n

from reservoir to processing host

Repair and Maintenance n

without shutdown and with least disruption to other equipment

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Life Cycle Cost Minimization n

Configuration simplicity consistent with Meeting Functional Objectives

n

Reliability in Equipment/Systems (Low Maintenance Intensity)

n

Operations/Maintenance and Supply Base Organization Strategy

n

Drilling and Well Intervention Strategies

n

Shuttle Tanker Cycles fully optimized with Facilities Production Objectives

n

Procurement Strategies consistent with Field Life Expectations and Development Schedule

n

Supply Logistics

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Value Added n

Provide an early definition of project front end requirements.

n

Greatest potential to improve project timeline and cost curve.

n

Early planning can define and control project risk.

n

Reality based cost estimate for prospect screening economics.

n

Ability to expand study detail for each higher level of project funding approval.

Sec02_FieldDevelopmentPlanning_All.ppt

Cost Reduction Example Cost reduction achieved through n

Concept Optimization

n

Development of New Technology

n

Standardization

n

Cost Effective Project Management

Budgetary Cost per Well

MUSD/WELL

n

20 18 16 14 12 10 8 6 4 2 0 1987

1991

1994

1995

1995

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PROJECTS Tommeliten

Cost per well is defined as the equipment necessary at the wellhead excluding drilling, installation and flowlines

Sec02_FieldDevelopmentPlanning_All.ppt

Tordis

Vigdis

Tordis Øst

Balder

Cost Reduction Example TLP Hull Engineering/Fabrication Schedules Deepwater Project

Engineering/Fabrication Duration (months) 6

Auger TLP 1989

Mars TLP 1993

Ram/Powell TLP 1994

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Ursa TLP 1995

Marlin TLP 1997

Sec02_FieldDevelopmentPlanning_All.ppt

12

18

24

30

36

Engineering

42

48

Hull Weight (s-tons)

Total Topsides Payld (s-tons)

19,000

35,700

15,000

21,345

16,000

21,071

30,000

37,087

8,500

9,085

Fabrication

Engineering Fabrication

Engineering Fabrication

Engineering Fabrication

Engineering Fabrication

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QUESTIONS ?

Sec02_FieldDevelopmentPlanning_All.ppt