Video: A Universal Field Development Approach for Advancing Stalled GOM Deepwater Projects
- Richard D'Souza (Granherne - A KBR Company) | Shiladitya Basu (Granherne - A KBR Company) | Sandeep Khurana (Granherne - A KBR Company)
- Document ID
- Offshore Technology Conference
- Publication Date
- Document Type
- 2018. Copyright is retained by the author. This presentation is distributed by SPE with the permission of the author. Contact the author for permission to use material from this video.
- 7.3.3 Project Management
- Deepwater, breakeven cost improvement, standardization, GOM Field Developments, Field Development
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Following the oil price collapse in mid-2014, the number of deepwater projects with a floating production host platform sanctioned in the GOM plunged to historic lows. In this period only three projects were sanctioned, Stampede (2014), Appomattox (2015) and Mad Dog 2 (2017). During this time cost compression across the industry reduced the average breakeven project costs from $70 per barrel to $45-$50 per barrel for many, but not all deepwater projects. An additional 10%-15% reduction in breakeven costs is required to get these stalled projects to a final investment decision.
The industry is assessing and implementing many different strategies to achieve these additional cost efficiencies that include standardization, simplification, technology, collaboration and creative financing. Many of these are being addressed at a component level rather than at a field development level. A universal field development approach for deepwater GOM projects requiring a host platform is proposed that entails using the same building blocks for a majority of field developments that will:
Provide a universal field development solution that accommodates a range of reservoir types, sizes and complexities
Maximize flexibility for field layout, phased development and contracting options
Reduce project delivery uncertainty, as universality facilitates standardization and repeatability
Significantly improve discovery to First Oil cycle time while adapting to changing reservoir information during the development phases
This paper presents a universal field development approach together with specific standardization and simplification recommendations of its key component building blocks; floating host platform and subsea system. Taken together these will provide the additional break even cost reduction, project cycle time improvement and increased certainty of project delivery to enable operators’ to confidently sanction a greater number of stranded deepwater Gulf of Mexico projects than is currently possible.