Deepwater Training

Field Development Planning

ABB Lummus Global Inc. - 1

AIPM

Sec02_FieldDevelopmentPlanning_All.ppt

 ABB Lummus Global Inc. - 2

Field Development Planning

Sec02_FieldDevelopmentPlanning_All.ppt

Definitions
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ABB Lummus Global Inc. - 3

TLP Mini-TLP ETLP SPAR DDCV SCF Semi-sub FPS FPSO GBS Tendon

Tension Leg Platform Mini Tension Leg Platform (Atlantia, Modec) Extended Tension Leg Platform Cylindrical Floating Vessels Deep Draft Caisson Vessel Single Column Floater (SPAR Shape) Semi-submersible Floater Floating Production System Floating Production Storage and Offloading Concrete Gravity Based Structure TLP Station Keeping Method

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Sec02_FieldDevelopmentPlanning_All.ppt

Definitions
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KIPS SPM CALM SCR VIV ROV MODU ABS DNV

Kilo Pounds (Thousand Pounds) Single Point Mooring Catenary Anchor Leg Mooring Steel Catenary Riser Vortex Induced Vibration Remotely Operated Vehicle Mobile Offshore Drilling Unit American Bureau of Shipping Det Norske Veritas

Sec02_FieldDevelopmentPlanning_All.ppt

Why All The Fuss Over Deepwater ?

Large unexplored areas 3D Seismic It is an opportunity for large reserves and high flow rates Technology is rapidly reducing the exploration cost and time to first oil and cost. Why all the planning? But it is expensive Specialized equipment is required for drilling and development IT IS DEEP.
ABB Lummus Global Inc. - 5
Sec02_FieldDevelopmentPlanning_All.ppt

The Planning Process

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Establish Project Objectives Evaluate Constraints

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Economics Schedule Product Risk

Influence on Cost
Highest

Constructibility Program

Preliminary Engineering

Added Value by moving constructability forward with EPCI contractor performing screening and concept development

Detailed Design

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ABB Lummus Global Inc. - 6

Identify Development Option Perform Feasibility Studies Establish Field Development Plan Produce Conceptual Design

Construction

Installation

Lowest Start

First Oil

Project Duration

Finish

Sec02_FieldDevelopmentPlanning_All.ppt

The Planning Process

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Define Interfaces
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Downhole / Subsea / Hull Fluid Flow / Connections / Treatment Electrical / Hydraulic Subsea / Topsides Maintenance Intervention

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ABB Lummus Global Inc. - 7

Prepare Specifications
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Equipment Quality Project Execution

Sec02_FieldDevelopmentPlanning_All.ppt

The Planning Process

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System Design
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Flow Assurance Well Locations Installation Risks Maintenance Intervention

Future Considerations
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Flexibility Expandability Develop Standard Approach

ABB Lummus Global Inc. - 8

Sec02_FieldDevelopmentPlanning_All.ppt

Deepwater Field Development Front End Process

Discovery
Reservoir Appraisal

Fluid Analysis & Field Parameters

Conceptual Evaluation - Field Options

Technology Validation Critical Technology Elements Preferred Concept

ABB Lummus Global Inc. - 9

Feed

Concept Resilience Checks Value Engineering

EPC Tender Call

Sec02_FieldDevelopmentPlanning_All.ppt

Project Development Gate Process

STAGE 1
SCOPING
"is it a good idea?"

STAGE 2
SCREENING
"Do we have the right solution"

STAGE 3
DEFINITIVE PLANNING
"Are the bases really firm?"

STAGE 4
PROCESS DESIGN
"Any changes? Ready to go?

EMPHASIS
IDENTIFY OPPORTUNITY SCOPE ECONOMICS ID CRITICAL ISSUES STRATEGIC ALIGNMENT

EMPHASIS
EVALUATE OPTIONS RISK ANALYSIS REFINE BUSINESS CASE RESOLVE CRITICAL ISSUES RESOURCING NEXT PHASE

EMPHASIS
REFINE BUSINESS CASE REFINE FACILITIES BASIS RESOURCING NEXT PHASE

EMPHASIS
FINAL BUSINESS CASE TECHNICAL DEFINITION RESOURCING THRU S/U

DELIVERABLES
PRELIMINARY BUSINESS CASE (BC) VENTURE PHILOSOPHY (VP)

DELIVERABLES
UPDATED BC & VP RISK & DECISION ANALYSIS VENTURE BASES TECHNOLOGY BUSINESS & MARKETING MANUFACTURING

DELIVERABLES
VENTURE MANAGER NAME TEAM IN PLACE UPDATED VENTURE BASES UPDATED COST ESTIAMTE

DELIVERABLES
FINAL BASIS / APPRO DOC. PROCESS DESIGN / HAZOP +/- 10% COST ESTIAMTE

TECHNICAL BASIS
SUFFICIENT FOR TECHNICAL FEASIBILITY

TECHNICAL BASIS
SUFFICIENT FOR +/- 20-30% COST ESTIMATE

TECHNICAL BASIS
SUFFICIENT DETAIL TO ENABLE PROCESS DESIGNA ND PERMITTING

TECHNICAL BASIS
SUFFICIENT TO ENABLE +/- 10% COST ESTIAMTE DETAILED ENGINEERING SAFETY REVIEWS

ABB Lummus Global Inc. - 10

Conceptual Field Development Studies

Solution Selection

FEED Studies

EPCI

Open Architecture

Technology Screening & Specification

Sec02_FieldDevelopmentPlanning_All.ppt

Estimate Definition
Type
Definitive

Accuracy
+/- 5%

Class
II

Timing
14-20 wks

Capital Cost

+/- 10-20%

II, IV

5-12

wks

Appropriation Feasibility
ABB Lummus Global Inc. - 11

+/- 20-25%

VA,VB

2-5 wks

+/- 25-35%

VI, VII

days

Times for Definitive and Capital Cost Estimates are from completion of basic and process engineering.

Sec02_FieldDevelopmentPlanning_All.ppt

Pre-sanction Project Activities

Zero Date

Field Development Studies Field Development Studies

6 Months

Operator\Partner Operator\Partner In-house In-house Evaluation/Approval Evaluation/Approval

8 Months

Basic Engineering Basic Engineering

ABB Lummus Global Inc. - 12

9 to 10 Months

Sanction EPC EPC

Sec02_FieldDevelopmentPlanning_All.ppt

Field Development Objectives and Philosophies

ABB Lummus Global Inc. - 13

Key Objectives and Philosophies

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Key Objectives
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Key Philosophies
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Reduce Project Costs

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Flexibility
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CAPEX OPEX from initial discovery to first

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design installation operation expansion

Reduce Project Cycle Time

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production
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Building Blocks Composite Systems

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Improve Safety and Risk Parameters

from reservoir to processing host without shutdown and with least disruption to other equipment

ABB Lummus Global Inc. - 14

Repair and Maintenance

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Sec02_FieldDevelopmentPlanning_All.ppt

Life Cycle Cost Minimization

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Configuration simplicity consistent with Meeting Functional Objectives Reliability in Equipment/Systems (Low Maintenance Intensity) Operations/Maintenance and Supply Base Organization Strategy Drilling and Well Intervention Strategies Shuttle Tanker Cycles fully optimized with Facilities Production Objectives Procurement Strategies consistent with Field Life Expectations and Development Schedule Supply Logistics

ABB Lummus Global Inc. - 15

Sec02_FieldDevelopmentPlanning_All.ppt

Value Added
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Provide an early definition of project front end requirements. Greatest potential to improve project timeline and cost curve. Early planning can define and control project risk. Reality based cost estimate for prospect screening economics. Ability to expand study detail for each higher level of project funding approval.

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ABB Lummus Global Inc. - 16

Sec02_FieldDevelopmentPlanning_All.ppt

Cost Reduction Example

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Cost reduction achieved through

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Budgetary Cost per Well

20 18 16 14 12 10 8 6 4 2 0
1987 1991 1994 1995 1995

Concept Optimization
MUSD/WELL

Development of New Technology Standardization Cost Effective Project Management

PROJECTS

ABB Lummus Global Inc. - 17

Tommeliten

Tordis

Vigdis

Tordis st

Balder

Cost per well is defined as the equipment necessary at the wellhead excluding drilling, installation and flowlines

Sec02_FieldDevelopmentPlanning_All.ppt

Cost Reduction Example

TLP Hull Engineering/Fabrication Schedules
Deepwater Project

Engineering/Fabrication Duration (months)

6 12 18 24 30 36 42 48

Hull Weight (s-tons)

Total Topsides Payld (s-tons)

Auger TLP 1989

Engineering Fabrication

19,000

35,700

Mars TLP 1993

Engineering Fabrication

15,000

21,345

Ram/Powell TLP 1994

Engineering Fabrication

16,000

21,071

Ursa TLP 1995

ABB Lummus Global Inc. - 18

Engineering Fabrication

30,000

37,087

Marlin TLP 1997

Engineering Fabrication

8,500

9,085

Sec02_FieldDevelopmentPlanning_All.ppt

QUESTIONS ?

ABB Lummus Global Inc. - 19

Sec02_FieldDevelopmentPlanning_All.ppt