System Selection for Deepwater Production Installations
Authors: Dorgant Paul L. , Balint Stephen W. , Rodenbusch George , Luyties William H. , Rainey R. Michael 
Published: October 2008

Deepwater opportunities exist around the globe. Beyond the commonality of water depth however, each opportunity comes with its own unique set of requirements. Providing deepwater services worldwide demands flexible processes and the ability to develop and deploy a variety of development systems. SIEP Inc. provides deepwater services to Shell's Operating Units around the world. SIEP has three deepwater projects currnetly underway, each employing a different surface structure. In addition, innovative new generation production systems are under development. This paper will look at the various configurations, and explore the technical and economic issues key to their selection.

Introduction

Successful deepwater development depends on an experienced team using a systems approach to select a field development concept. Although this paper will focus on surface systems, a systems approach to production system selection must integrate subsurface and surface expertise. The maturation of subsurface understanding must keep pace with surface system selection so that development systems can be based on reasonably mature characterization of a prospect and thus permit estimation of overall prospect value. Estimation of prospect value in terms of relevant performance indicators is the key to selection of a good development option.

In addition to the basic requirement of subsurface and surface integration, all surface systems including well delivery, subsea systems, flowlines, structural systems, facilities, export and operations must be considered simultaneously. To be done well, experienced technical staff with the proper tools are required. Improvement in performance results when the staff is in a position to transfer knowledge from one project to the next. Realization of the need to assemble multi-disciplined teams and to build from project experience led Shell to form Deepwater Services (SDS). This organization provides technical support to Shell operating units world-wide that have interest in deepwater acreage. Providing deepwater services around the world demands flexible processes and the ability to deploy a variety of development systems.

Key Performance Indicators

Identification of key performance indicators or measures of goodness is perhaps the most important aspect of successful system selection. Typical performance indicators are:Financial value to operatorTime to first productionFinancial value to other stakeholdersFinancial exposureAdaptability (the ability to deal with uncertain fluids, rates, temperatures, etc.)Sustainability (Domestic content, local impact, energy efficiency, etc.)Strategic or infrastructure valueRobustness (the ability to respond to resource uncertainty)

Financial value to the operator and partners is frequently the primary indicator of system performance. A broader set of indicators will generally be necessary for optimal system selection. Once these indicators are chosen a process must be established for each indicator that can measure the performance of a system in a way that can be used to compare options.

Strategic Position

Identifying a strategic or philosophical position with regard to trade-offs that generally have broad or fuzzy optima is also an important part of successful system selection. These trade-offs include:CAPEX vs. OPEXStandardization vs. ImprovementProven Technology vs. Innovative TechnologyMinimum Capacity vs. Future Capacity