Integrated Standpoint for Monetizing High CO2 Field with Deliberation of Technical Evaluation and Project Economics
Authors: Kulkarni Sukrut Shridhar , Mohammad Marliana Bt 
Published: October 2022

Monetization of high Carbon dioxide (CO2) field poses a major challenge for optimization either in terms of evacuation (long dedicated pipelines/system) or exotic offshore treatment for CO2 management in terms of CAPEX/OPEX. As the resilient field developer, it is significant to realize economic development of project feasibility is in the harmony with planned supply/demand balance, infrastructure requirement and value generation to the project. It is also noteworthy to comprehend that alignment is in place from appropriate field to intended customer. It's therefore imperious to the prudent operator to be further resilient, more agile, technologically stronger, and financially more robust dealing with the development options for upcoming sour fields. This paper deals with comprehensive analysis of two options for high CO2 field development to arrive at optimized way forward with technical evaluation and finest project economics.

What if scenarios were appraised along with project economics to Profit to Investment Ratio (PIR), Net Present Value (NPV) and Internal Rate of Return (IRR) to determine the best option for the project monetization. Among criteria considered were the cost phasing involved (CAPEX/OPEX), the potential first hydrocarbon date and related field sequence to overall gas distribution network infrastructure. Numerous assessments for strategic alignment were accomplished by leveraging on design, development and implementation of integrated network modeling that was commenced in syndication with appropriate stakeholders such as strategic, operational, projects and commercial. The developed hydraulic model based on first principle was intended that could perform the what-if scenarios in terms of technical aspect by identifying the system ullages, contaminant mapping provision, and pain points identification. Appropriate thermodynamic environment along with flow correlations & engineering details were assembled to represent situ conditions for infrastructure containing around 100+ feeders, ~4000 kms of pipeline with multiple demand centers in place. The model was validated with plant information (data) as part of history matching and validated model was deployed for robust prediction.

Detailed diagnostic was performed to recognize the implications on the network for option of long pipeline selection against exotic treatment for contaminants. Project economics were more representative as model could increase the accuracy level by appending the exact sizing of facilities considering holistic view. Multiple tie-in opportunity was explored as best fit considering the optimization in CAPEX/OPEX based on system requirement. Amendment in the control philosophies, clustering of high contaminant feeders was also proposed in benefit of new field viability unlike current practice for going end to end new facility with high capex. The technical simulation is supported by the project's economics of the scenarios. The CAPEX phasing of the best fit option yields a higher Profit to Investment Ratio (PIR) compared to once off spent. Impact of each criterion to the chosen profitability indicators was analyzed and compared to business aspiration to ensure the recommendation corresponds with inclusive overview.

With this approach the visibility was extended to overall network level to frame the big picture to the project advantage and the organization. Comprehensive technical and commercial analysis in wide spectrum of end-to-end gas business was the game changer in optimizing the project economics for field development. The Final Investment Decision (FID) could be achieved with lower levels of risk and uncertainty by leveraging on the data based on technical deliberation via network modelling and its impact on overall project economics.