Benchmarking Deepwater Semisubmersible Floating Production Unit Developments Sanction to First Production Cycle Times in a Post Pandemic Era

Abstract

The success of a major deepwater capital project is significantly influenced by how well capital and schedule commitments made at the time of Final Investment Decision (FID) are met. Front End Loading (FEL) activities are the Operators’ work processes leading up to FID. FEL includes reservoir characterization and appraisal, definition of the well construction program and the facilities (production platform, subsea, umbilicals, risers and flowlines (SURF), export systems) that process and export reservoir fluids. Most deepwater developments can be categorized as major capital or megaprojects, with capital costs ranging from $3 billion to $10 billion. The offshore industry's track record for delivering megaprojects within sanctioned budget and schedule is not stellar. Project economics are seriously eroded if budgeted cost and schedule slip by more than 10%. There are many reasons for slippage, but a root cause is the inadequate allocation of contingency and availability of accurate, current benchmarking data. Operators require independent cost and schedule benchmarking of risked capital costs and Sanction to First Production (STFP) schedules, established at the end of FEL, to validate contingencies before green lighting a project. Schedule benchmarking compares risked STFP schedule at FID to actual STFP of an analogous project in production. The fabrication, integration, transport, installation, hook up and commissioning of the Floating Production Unit (FPU) is typically on the critical path to first production. Since the FPU topside operating weight is a key schedule driver, schedule benchmarking is comparing the planned STFP of the project awaiting sanctioned to the actual STFP of a producing analogoue FPU project with a topside of similar operating weight and complexity.