Techbits: Developing Marginal Offshore Fields
Authors: JPT staff _ 
Published: February 2015

Penang, Malaysia, was the site of the SPE Applied Technology Workshop (ATW) on "Development of Marginal Offshore Fields" held 24–27 July. The ATW was attended by 76 participants, representing 42 different organizations from 13 countries. Following an opening address by Dato' Koay Kar Huah, Executive Councillor, State Government of Penang, the stage was set for seven technical sessions by Ramlan Malek, General Manager-Petroleum Resource Development for PETRONAS, with his keynote speech "Opportunities and Challenges of Marginal Field Development in Malaysia."
The following points were captured during the technical sessions.
Commercial Formulas for Economic Understanding, Risk Protection, and Value Gain. In the past, Malaysia adopted a volume-based commercial arrangement for production-sharing contracts (PSCs). With smaller discoveries, fluctuating oil prices, and uncertainties in costs, PETRONAS introduced a profitability-based commercial arrangement through revenue-over-cost PSCs. A case study was presented to demonstrate that such a change in commercial arrangement can improve the economics of small-field development significantly.
Managing Commodities Price Risk for Marginal Petroleum Projects. There are a number of ways to man-age commodity prices for marginal petroleum projects, including insurance and hedging. Oil-price projection is normally lower than the actual oil prices.
Rapid Oil Development (ROD). ROD is one of the tools available to quickly monetize stranded small oil fields that are isolated from existing infrastructure. Facility deployment can be achieved as quickly as 6 to 9 months. ROD needs as little as 2 to 3 million bbl of oil to make it attractive. Such a concept can prove the reservoir characteristics and volume earlier.
Innovative Facilities Solutions To Reduce Capital and Operating Costs. Presentations and discussion took place on these topics: "Implementation of Innovative Multiphase Boosting and Production Technologies for Marginal Offshore Fields," "Relocateable Topsides," and "Seamless Fast Tracking of Engineering, Procurement, Installation, and Commissioning Projects for Marginal Offshore Fields."
East Belumut Development-Well Completion Design and Issues. A case study on the background to the above field development and details on the reservoir and fluid characteristics was presented. The need for extended-reach wells, the low rock strength, thin oil column, high viscosity crude, gas cap, and underlying water all combine to make the development complex and marginal.
The currently proposed sandface-completion design incorporates standalone sand screens with inflow/pressure-control devices, swell packers, and centralizers for management of potential sand-production problems and to increase production control along the length of the screens. The upper completion is composed of 3½-in. tubing with gas lift mandrels and a subsurface safety valve. The operation is relatively simple, with the tubing stabbed into the liner/sand-screen polished-bore receptacle and no production packer.
Following the presentation, general discussion took place on the various completion philosophies. Questions on the design process and the rationale behind the selection of swell packers, standalone sand screens, and flow-restriction devices were answered.