Beruflich Dokumente
Kultur Dokumente
PROJECT
1
EXECUTIVE SUMMARY
It is conclude that the field will produce 4 wells with a life of field of 9 years
in a fixed steel platform, besides, oil and gas will be transported onshore
by means of pipelines systems. At the end of the life of installations,
decommissioning plan contemplates partial removal. The execution of this
development plan will generate a total cash flow of $1.62𝑥109 and a
profit/investment ratio of 1.50.
1
Table of Contents
List of figures----------------------------------------------------------------3
List of tables-----------------------------------------------------------------4
Economic calculations-------------------------------------------------------5
Appraisal---------------------------------------------------------------------8
Flow diagram----------------------------------------------------------------9
Gas handling---------------------------------------------------------------11
Decommissioning plan-----------------------------------------------------12
Conclusions-----------------------------------------------------------------15
References------------------------------------------------------------------16
Appendix A-----------------------------------------------------------------17
2
List of figures
Figure 1
Flow diagram----------------------------------------------------------------10
Figure 2
Graphical overpressure margin---------------------------------------------11
Figure 3
Decommissioning alternatives of oil platforms----------------------------13
Figure 4
Decommissioning scenarios-------------------------------------------------14
3
List of tables
Table 1
Introduction to economic sheet----------------------------------------------5
Table 2
Economic analysis for development options---------------------------------6
Table3
Economic analysis for development options---------------------------------7
4
ECONOMIC CALCULATIONS
Vol. of recoverable oil (million bbls) 36
$
Selling Price of Oil (𝑏𝑏𝑙) 75 Oil processing options Oil transporting options
Total well capital cost (million $) 200 Annual rental cost 80 Large up to (8 million
𝑏𝑏𝑙𝑠
) 400
𝑦𝑒𝑎𝑟
Total well capital cost (million $) 240 Well option 1 9 Well option 1 4
5
$
Development options Total (million$) Cost per barrel ( ) Cash flow (million $) Profit/investment ratio
𝑏𝑏𝑙
6
$
Development options Total (million$) Cost per barrel (𝑏𝑏𝑙) Cash flow (million $) Profit/investment ratio
7
APPRAISAL
There are several options of platforms to use offshore, some of the factor
that influence your selection are the depth water, field size, construction
expertise and the important investment.
RGUG field has two production platform options: the mobile option, floating
production storage and offloading (FPSO), and those that are permanently
placed, a fixed platform. In addition, the field has the option of transporting
oil by renting a shuttle tanker or making a capital investment in a pipeline.
It was considered the option to develop the new offshore field through four
smaller capacity wells and make the capital investment in a small pipeline
to transport the oil as the most appropriate option. Some of the reasons
are that the field is located within an area with very high prospects of future
discoveries, the life of platform, less capital investment, and pipelines can
be reused.
First, the total recoverable volume in the field is 36 million barrels, which
is enough hydrocarbons to install a fixed steel platform that allows their
extraction, developing the RGUG with 4 smaller capacity wells, it will
generate 9 years of life field. The life of platform is typically between 20
and 30 years, besides its have long term production (supports a large
number of wells) and the directional drilling allows access to reservoirs with
different depths and remote localizations (Holmager 2010), taking this into
account at the end of the project, the fixed platform could generate more
income by renting its installations for future operations.
Second, because of the field is developed with 4 wells and fixed platform,
the capital investment is less than if the well will be developed with 3 wells
8
and large pipeline to transport the oil, as well as the capital investment will
be greater if rents a FPSO for nine years to produce the field. In simple
terms, at the end of the project with the selected development proposal,
the capital investment is the lowest and a greater amount of income is
obtained.
FLOW DIAGRAM
Before planning a process to transform fluids produced by the well into oil
and gas products suitable for transport, it is required to know the
characteristics of the hydrocarbons produced and the characteristics of the
product to be transported. Process facilities are planned to divide the fluid
mixture into gas, oil and water in order to remove any components which
can cause pipeline blockage or corrosion. Simultaneously, each of these
fluid is treated in an additionally way to obtain a product with defined
characteristics by passing through process of conditioning figure1.
9
The oil, gas and water must include certain value for the next parameters:
10
GAS HANDLING
According to Wang (2014) for the next 20 years, global demand for natural
gas will increase at growth rate of more than 1.8% per year. Several
countries consume more gas than they can generate, so the challenges of
processing and handling natural gas have main importance.
11
For the development of this field, it is assumed that the reservoir has large
capacity of gas and is situated near the shore, so gas export would be the
most economic option. The gas will be transported through pipeline,
because of hazards and difficulties in transport this by shuttle tankers. Gas
is in a gaseous state at normal temperatures and pressures, unlike oil, so
for the equal amount of energy, gas requires a volume 600 times greater
than oil, consequently, the most habitual method of transport is by
pipelines under high pressure (Holmager 2010). Moreover, it is considered
to use a certain amount of gas as a fuel for turbines and generate electricity
for on-site use. The gas can be reinjected into the field to maintain
reservoir pressure, but this option was not considered because the field is
new and with the development plan it will be possible to obtain the total
recoverable volume of oil.
In brief, the oil processing system will separate the associated gas from
the crude oil, some gas will be required as fuel to generate electricity, and
the rest will be exported to land for treatment and exploitation, water
production will remain constant and will be treated to be disposal in the
sea. It is worth mentioning that another of the important factors to decide
the gas export is that at the end of the project, the pipelines can be rented
for other fields and generate additional profits.
DECOMISSIONING PLAN
12
• Technical Feasibility
• Environmental Protection
• Health and Safety
• Cost
(Holmager 2010).
13
The figure 4 presents a decommissioning scenarios from the distinct
components of an offshore rig. The selection judgment may be safety,
technical, social, environmental, and economic aspects of each removal
alternative, as well of the physical and operational limitations or the needs
of other users of the sea (Khan and Islam 2007).
Lastly, pipelines will be circulated clean and left filled with water or cement,
the topside modules of the platform will be removed by lift barge and taken
to shore for recycling.
14
CONCLUSIONS
15
REFERENCES
WANG, X., 2014. Technology Focus: Natural Gas Processing and Handling
(April 2014). Journal of Petroleum Technology, 66(04), pp. 92-92.
16
APPENDIX A
Economic Calculations
𝑏𝑏𝑙 𝑏𝑏𝑙
𝐴𝑛𝑛𝑢𝑎𝑙 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦: 1,000,000 ∗ 4 = 4,000,000
𝑦𝑒𝑎𝑟 𝑦𝑒𝑎𝑟
36,000,000 𝑏𝑏𝑙
𝐹𝑖𝑒𝑙𝑑 𝑙𝑖𝑓𝑒: = 9 𝑦𝑒𝑎𝑟𝑠
𝑏𝑏𝑙
4,000,000 𝑦𝑒𝑎𝑟
𝑇𝑜𝑡𝑎𝑙 𝑑𝑒𝑣𝑒𝑙𝑜𝑝𝑚𝑒𝑛𝑡 𝑐𝑜𝑠𝑡: 𝑇𝑜𝑡𝑎𝑙 𝑤𝑒𝑙𝑙 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 + 𝑂𝑖𝑙 𝑝𝑟𝑜𝑐𝑒𝑠𝑠𝑖𝑛𝑔 𝑜𝑝𝑡𝑖𝑜𝑛
+ (𝑜𝑖𝑙 𝑡𝑟𝑎𝑛𝑠𝑝𝑜𝑟𝑡𝑖𝑛𝑔 𝑜𝑝𝑡𝑖𝑜𝑛 ∗ 𝐹𝑖𝑒𝑙𝑑 𝑙𝑖𝑓𝑒)
17
4.- The average development cost per barrel of production:
$1.08𝑥109
𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑏𝑎𝑟𝑟𝑒𝑙: = $30.00
36,000,000 𝑏𝑏𝑙
$1.62𝑥109
𝑅𝑎𝑡𝑖𝑜: = 1.50
($2.0𝑥108 + $5.4𝑥108 + $3.4𝑥108 )
18