Abstract

ABSTRACT The next generation subsea developments will be facing a number of new challenges which have to be solved to maintain a cost- efficient solution for production of oil and gas:Smaller fields, i.e. cost reduction through volume will no longer be validFreedom in configuration of subsea development. The current idea of standardization will not be directly applicable for cost reduction.Various water depth. The same technology should be applicable for both guideline- and guideline less water depth.Development in new areas of the world where drilling rig deployable system is a must.Various types of fluid processing maybe required as anintegral part of a subsea production system. The next generation subsea production system should be universal and applicable to any subsea field development. Kongsberg Offshore a.s (KOS) have gained extensive experience in supplying standardized total subsea systems. The paper presents the approach taken by KOS to develop the next generation subsea system, and discussed the challenges associated with this. INTRODUCTION Cost reduction and standardization have been the focus regarding subsea production systems in 1994-95. The driving forces behind this focus have been A stabile and high number of subsea wells being planned and developed in the North Sea area. An increasing prospect for subsea well opportunities in the Far East, Gulf of Mexico and Brazil. Cost reduction initiatives through intercompany work likeNORSOK and CRINE have set new goals for both operators and suppliers, where total cost savings of 30- 50% based on 1993cost level for subsea developments have been set as Requirements for field economics. Even though these goals are set as target values, it Demonstrates an acceptance that a new cost level is required, and willingness on both sides to reach such level. This includes methods of operation, cooperation between parties and acceptance of risk associated with the subseaequipment. The two players in a subsea development, operators and Suppliers are facing a number of new challenges affectingthe next generation subsea developments. For the operators, these challenges are:The understanding and acceptance that a change is needed to meet depressing prices and reduced profitabilityStreamlining and restructuring of the organizations to cut costNew approach to field developments and capital investments. The requirement of developing one standard technologyto suit numerous fields will be a prerequisite to spread the development cost.Cooperation across geographical borders. It seems to be generally accepted that a unique specification level cannot be maintained in onegeographical area over long time. This realization leads to an acceptance of an internationalstandard enabling suppliers to view the world market as one common market.The targets set for reduction in project management and execution cost of 30- 50% means an acceptance of less controlling and monitoring rather willingness to seeknew and innovative ways for the contractors. On the contractor side, there is a considerable pressure for Survival, and a significant consolidation among the survivors. Alliances and contractual arrangement shave been establishedto be prepared to accept larger scope contracts. As the effects of standardization has become visible, product Rationalization has become a major issue in the struggle forcost reductions. All contractors have a more or less ineffective product line, Developed over

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