A Critical Assessment of Deepwater Gulf of Mexico Floating Platform Engineering, Procurement, Construction and Installation EPCI Contracting Strategies and Cycle Times

Abstract

Abstract A major objective of a greenfield deepwater field development with a host platform, is to achieve the first production milestone set at project sanction. A field development consists of subsurface characterization, reservoir depletion, drilling and completion, subsea production system, host platform and export system. Of these, the floating host platform is a major capital expense and presents a significant execution challenge. Over fifty deepwater floating platforms have been installed in the US Gulf of Mexico (GoM) since 1986, representing the four major platform options; spars, semisubmersibles, Tension Leg Platforms (TLPs) and Floating Production Storage and Offloading (FPSO) platforms, operated by International, Independent and National Oil Companies. They are installed in water depths ranging from 500 m to 3,000 m, with production capacities from 40,000 to over 250,000 barrels of oil equivalent per day (boepd). Over this period the technologies, operator, and supply chain capabilities to execute deepwater projects have matured. An operator embarking on a deepwater project must credibly benchmark cycle times for sequential field development stages (Appraise, Select, Define and Execute). Many variables determine these cycle times including reservoir characterization, fluid properties, estimated recovery, location, access to pipeline networks, water depth, subsea architecture, platform size and complexity and contracting strategy. To provide these benchmarks, the authors have undertaken a critical assessment of ten recent, producing deep and ultra-deepwater field developments in the US GoM, focusing on project execution of the floating platform. Selected field developments capture all floating platform types, several contracting strategies, a wide range of water depths, various reservoir geologies and field locations that cover the entire GoM. The information is intended to assist operators validate cycle times when planning a development, especially the Execute stage. In addition, the paper addresses emerging trends in deepwater GoM field developments following the oil price collapse in 2014 and 2020.