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TRANSCRIPT
Creating Value from Marginal Offshore
Assets Using Buoy Technology and
Innovative Commercial Solutions
Martin Wallwork (ABTechnology), Barath Rajgopaul (ABTechnology)
& Alex West (Wood Group PSN)
� Introduction
� DEVEX 2011 Topics Addressed
� Marginal Offshore Fields
� Buoy Technology
� Oil Production Buoy
� Case Study
� Power and Control Buoy
� Summary
Content
An Introduction to ABTechnology
� ABTechnology’s (ABT) objective is to enable the development
of certain marginal offshore hydrocarbon reserves
� ABTechnology have established a Strategic Partnership with
Wood Group PSN
� ABT brings together:
– A Highly Credible Engineering and Delivery Organisation
– An Enabling Technology
– Financial & Commercial Expertise
– Risk Management Expertise
DEVEX Topics 2011 Addressed by ABT
�Small is Beautiful?
The Challenge of Small Field Developments
�Resurrection Fields
Breathing life back into Mature Fields
Managing Stranded Field Development
�Novel Technologies – Risk or Opportunity?
What We All Know…
� Large hydrocarbon discoveries are less common
� Marginal offshore fields include:
– Remote location
– Small & larger hydrocarbon accumulation
– Low productivity reservoirs
– End of life fields
– Stranded assets due to inability to access existing infrastructure
� The key is to reduce capital and operational costs
� Buoy technology enables certain marginal fields become
economic:
– Oil Production Buoy
– Power and Control Buoy
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Buoy Technology: Background
� Use of traditional buoy technology for non-conventional
applications has been established for over 30 years
� Buoys are already in place and proven for field control, additional
power, flaring & data gathering
Buoy Technology: Background
� Reduces system size & standard buoy design
� Based on remote and unattended operation
� Re-usable
� Stable platform for process equipment
� ABT & Wood Group PSN have undertaken technical review of the
production buoy concept …
…Concluding that there are no show stoppers
Oil Production Buoy: Concept Outline
Taut-moored buoy contains:
•Oil & Gas processing
•Electricity generation
•Communications
•Well control
•Access tower
Excess gas is flared, exported or re-injected
Oil stored in gravity base for export shuttle tanker
200-300,000 bbls storage
� Water depth: 80-200m+
� Production rate: 1,000 bpd - 20,000 bpd
� Recoverable reserves: 3MMbbl – 20MMbbl
� Low to Medium Gas to Oil Ratio
� Light to medium API
Oil Production Buoy: Operating Envelope
� Significantly reduces the capital cost
– Based on proven process systems applied in a new context
– Based on a standard design tailored as required
– Smaller size & low complexity systems
– Easy re-mobilisation minimises cost and risks of abandonment
� Large reduction in operating expenditure
– Remotely monitored and controlled
– Normally unattended installation
– Designed for low levels of maintenance
– Duplication of critical assets to ensure availability
Oil Production Buoy: Economics
Case Study
Generic Development
•4MMbbl recoverable reserves
•Single well development
•$90/bbl
•Pre-tax
•12% discount rate
Case Study
Development: Production Buoy
�4 yrs production
�3.2MMbbls recovered
�Lease based NPV £40m
Generic Development
•4MMbbl recoverable reserves
•Single well development
•$90/bbl
•Pre-tax
•12% discount rate
Development: Small FPSO
�1 yr production
�1.7MMbbls recovered
�Lease based NPV £1.7m
Case Study
Generic Development
•4MMbbl recoverable reserves
•Single well development
•$90/bbl
•Pre-tax
•12% discount rate
Opportunity for flexible commercial solution
�Tie buoy provision to performance of field & oil price
�Buoy led farm-in
�Combine with other marginal field development in
locality
�Sequential development of fields
Field Power and Control Buoy: Concept Outline
• Provides local power, control and chemical injection
• Provide power for subsea processing, pumping and water injection
• Reduced capital costs:
– Removing need for long umbilical installation
– Provides power or equipment space where offshore
installations are deficient
– Enables subsea system operation & remote control
• Reduced operational costs
� Reducing the Opex and Capex through enabling technology – Ocean
Resources
� Highly credible project engineering & delivery – Wood Group PSN
� The appropriate commercial solution – ABTechnology
� Each marginal field has specific technical and commercial
challenges
� ABTechnology’s brings together the above to create an economic
solution for certain marginal fields
The Key to Delivering Production from Marginal
Fields…