Murchison Project Preliminary Planning Organization
Authors: Gregg Dennis E. , Marr Thomas O. , Bowler David L. , Lauren Pentti K. , Beamer Ronald N. , Housh Donald F. 
Published: December 2007

The Murchison Project is a North Sea field development project which formally commenced with budget approval in September, 1976 but in fact actually began in August, 1975 with the test program for the discovery well. This paper will describe the preliminary planning during the year up to project preliminary planning during the year up to project approval, a comprehensive effort which included:–Selecting the number and location of delineation wells.–Reserves estimates and productivity analysis.–Analysing development options, principally platform type, offtake method and use of subsea wells.–Preliminary design of platform and producing facilities.–Selecting design and project management contractors.–Estimating costs.–Planning and scheduling.–Economics, with emphasis on sensitivity and risk analysis.–Partner and government relationships.–Project management philosophy and organization, incorporating results of a study of earlier North Sea projects.–Obtaining project approval.

The paper provides a check-list of the many things that must be done and one set of methods used to analyse, justify, and prepare to execute a major North Sea development project. It should be useful for others contemplating a very large offshore development project either in the North Sea or elsewhere.

The paper presents preliminary results of the study at a stage approximately half-way through the scheduled project life. It is concluded that the overall planning effort was invaluable in "selling" the project and in getting the approved project off to a project and in getting the approved project off to a running start.

Introduction

North Sea oil exploitation required a new class of offshore development project for an unprecedented combination of harsh environmental design conditions and large-sized fields. Many of the early projects were launched in those euphoric times just before or after the 1973/74 oil embargo when oil prices were shooting up and security of crude supply had highest national priority. As a consequence of the haste with which priority. As a consequence of the haste with which these projects were undertaken and the period of rapid inflation in which they were built, most project schedules were extended a year or more and budgets overrun by factors of two to three.

In terms of their primary goals, the early projects were successful. Oil is flowing, balances of projects were successful. Oil is flowing, balances of payments have been improved and project economics are payments have been improved and project economics are attractive. But the well-publicised slippages and overruns left a legacy of management scepticism on initial estimates and schedules that have brought about a ouch more deliberate approach to the "second generation" projects.

This is a case history of the beginnings of the Murchison Project, one of the second-generation North Sea oil developments. It covers the period prior to actual project commencement, beginning with discovery in August, 1975 and ending with management approval to proceed with design and construction in September 1976.

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