GB 388-An Independent's Approach to Deepwater Development
Authors: Blincow R.M. , Whittenburg L.A. , Pickard R.D. 
Published: October 2008

ABSTRACT
As the oil industry moves toward greater water depths in search of viable investment opportunities, cost effective, fast track development schemes must be cultivated toovercome the economic obstacles inherent to deepwater field development. While every deepwater development is different and each presents its own unique problems, the dilemma of justifying the costs, minimizing the lead time to first revenue and minimizing the associated risk are common to all projects. The Garden Banks 388 project has successfully utilized the project management concepts, and methodologies presented in this paper to develop a relatively low cost, low risk, fast track approach to deepwater development in the Gulf of Mexico.
This paper describes the production system concept, management style and philosophy which have been employed to develop Garden Banks 388. The paper also discusses why the Floating Production System is considered the best alternative for this particular application. Many of the ideas and strategies used inthis project can be applied to any project, whether it be deepwater or more conventional types of projects.

INTRODUCTION
The Garden Banks 388 field development is centered around a Floating Production Facility (FPF) which is permanently moored over a 24 slot drilling and production template. The FPF is capable of simultaneous drilling and production operations. Oil and gas is produced through individual flowlines in the template to the Free Standing Production Riser (FSPR) which is attached to the template. The riser transports produced fluids to the FPF where primary separation and processing takes place. Oil and gas are then shipped back down the riser through the template and 54 miles across the sea bed to the Shallow Water Facility (SWF) located in Eugene Island 315. The Shallow Water Facility is the final processing point for the oil and gas prior to sale.
Concept screening studies were initiated in 1990 Subsequent to the discovery well, which was drilled in 1989. The threshold reserve level was achieved in 1992. At this point, the AFE's were prepared along with the master project schedule. Project approval was obtained in late 1992, and the project management team was assembled. The Garden Banks 388 project is organized along five major AFE's:Project ManagementShallow Water Facility (SWF)Gathering and Sales PipelinesSubsea Systems
The original project schedule predicted first production in 30 months (mid 1995), and the project is currently on track to achieve that goal. The original project AFE's were written for $226 MM (excluding well costs). Costs are currently projected to overrun by 19%. The overrun is primarily due to additional work required on the vessel conversion which was not originally anticipated.

PROJECT MANAGEMENT: STRATEGY AND DESIGN PHILOSOPHY
In the current business environment, where oil and gas companies face various investment opportunities competing for the same seemingly ever-decreasing capital, deepwater projects are difficult to justify using conventional time based yardsticks such as Rate of Return or Net Present Value. While significant reserve potential exists in deepwater projects, several major hurdles must be addressed in order to justify the project.