Improving Mega Project Economics Through the Use of Early Production

Abstract

Abstract A key aspect of the Project under discussion is the use of minimal Initial Production Facilities to achieve significant early production from each of the four (4) pre-constructed artificial islands. The Initial Production Facilities leverage the utilization of the spare processing capacity on the existing adjacent satellite platforms to allow production from each of the islands to occur during the 4 year period between when the first wells are completed until completion and start-up of the Permanent Production Facilities. The Initial Production Facilities associated with each artificial island comprise (1) the on-island Facilities that consist of wellhead flowlines, production and test headers, basic hydraulic wellhead control panels, a chemical injection skid, a hydrocarbon drain tank package, and a temporary equipment room containing distribution panels and the basic control system, (2) a riser platform containing a pig launcher, (3) a short subsea pipeline that connects the island to the existing adjacent satellite platform, and (4) the minor brownfield tie-ins on the existing adjacent satellite platform. The riser platform, short subsea pipeline, and the minor brownfield tie-ins will remain as part of the long term Permanent Production Facilities, while the on-island Initial Production Facilities are for use only during the Initial Production Phase of the Project and will be de-commissioned. It is anticipated that the Initial Production Facilities will be in production for 4 years and during that period will achieve production from more than 60 total wells on the four (4) islands. A sequenced design and start-up approach has been utilized to align with the drilling program and to provide maximum flexibility in the final installed Initial Production Facilities at an optimum cost for each island. Wells will continue to be progressively tied into the Initial Production Facilities on each island for the life of the Facility until it is decommissioned following the start-up of the Permanent Production Facilities. The key challenges for the Initial Production scope were (1) the high degree of simultaneous operations, (2) design and installation of the Initial Production Facilities to minimize interference with ongoing drilling operations and construction of Permanent Production Facilities, and (3) achieving safe operability while minimizing capital expenditure to maintain a low cost economic model that makes sense for an Initial Production Facility that will only be in operation for a short period of time. Use of the Initial Production Facilities enhances the overall Project economics and also provides a valuable mitigation for any schedule delays that may be incurred in completion of the Permanent Production Facilities.