Facilities Engineering Coursework

Submission 1200 hours 4

th
January 2012
Purpose:
This coursework is designed as a self-study programme to further the students knowledge of the
subject beyond the directly presented course material through web and publication searches and
development of company contacts.
In the coursework I will be looking for a demonstration of
1. Knowledge and understanding
2. Critical analysis
3. Fundamental research.
Project Brief
The Alpha Oil Company has discovered a new offshore oil field, Tantalum, in a relatively
undeveloped production area. You are a facilities engineer and have been asked to assess the
options available for development of the field to export the produced oil from a terminal located
near the Main Town shown on the diagram and to recommend a preferred option.
Scope
Identify a minimum of two development concepts for the Tantalum field. One should be a
standalone development and one should make use of existing facilities near the newly
discovered field. Each option should cover the development from wellhead to export point.
The subsurface plan is fixed. (40%)
Prepare a flow scheme showing the architecture of the layout and of the main components
used from wellhead to the point of export for BOTH the options being considered. (10%)
Discuss the flow assurance issues that may be encountered in the two schemes and propose
likely solutions to these issues. (10%)
Prepare a proposal for a decommissioning plan for BOTH the development options. (20%)
Assess the advantages and disadvantages of each option. Based on your analysis select an
option for field development. This should cover technical, cost and commercial
considerations. (20%)
Report
The report should be no more than 3000 words with flow diagrams and other relevant drawings to
illustrate any points being raised. All references used must be properly identified.
Tantalum Field Information
1. Location
The location of the Tantalum field is shown in figure 1. The field is located 50km from the nearest
landfall a remote region with limited infrastructure. Water depth is 100m. The nearest significant
town is 300km south west of the field, it has a deep water port with tanker berthing capabilities.
Figure 1. Field Location
2. Other Development Activity
The Palladium field is located approximately 20km from the Tantalum discovery; this is the only
current development in the region. Tantalum owners have no equity in the Palladium field.
An oil processing facility has been built in the main town. It currently processes crude oil and
NGLs from a number of onshore fields to the south and west. There is no local market for natural
gas.
Other operators have exploration licences in the region. Two drilled successful exploration wells
last year and are currently evaluating their future plans. The areas under exploration are 100
150 km south of Tantalum.
3. Tantalum Petroleum Engineering
Tantalum was discovered with the initial exploration well in late 2005 and has since been
appraised by two wells. These have been suspended at the mudline for recompletion as
producers.
50m
100m
Palladium
Tantalum
Main Town
50km
300km
Not to Scale
20km
The data analysis indicates the field characteristics are as follows:
Reservoir depth: 10,000ft
Oil water contact: 10,200ft
Initial pressure: 5000 psia
Bubble-point: 3,800 psia
Initial Gas oil ratio: 450 scf/bbl
Light, sweet crude 36 API.
Following evaluation of the two appraisal wells the expectation STOIIP has been estimated as
300 MMbbl.
4. Subsurface Development Plan
The field will be developed with six production wells, including recompletion of the two appraisal
wells. Results to date indicate some degree of reservoir compartmentalisation, and a further two
production wells may be required in the future. Gas lift may be required in the future.
The expectation is that the field has relatively strong aquifer support; no provision is to be made
for water injection.
On the basis of natural depletion the technical recovery from the field is estimated as 120 MMbbl.
5. Production Forecast
The production forecast has been generated by a basic black oil reservoir simulator:
Year Net Oil
kbpd
Water Cut
%
1 10.0 5
2 25.6 15
3 50.9 20
4 50.1 30
5 49.8 40
6 40.5 52
7 30.1 58
8 23.9 62
9 20.0 67
10 17.2 71
11 15.0 73
12 13.0 75
6. Fiscal & Legal Requirements
There has been a significant change in government since development plans were submitted for
the Palladium field 10 years ago.
It is a condition of gaining a production licence for the field that there is no flaring of excess
production gas. If an economic gas evacuation route cannot be found, it is expected that a gas
disposal well and associated facilities will be provided as part of the development plan.
All other environmental discharges must meet minimum accepted international standards.
All revenue gaining production streams must be metered to fiscal standards.
7. Palladium Field Information
Alpha Oil holds no equity in the Palladium field. Production is via a steel jacketed platform in
similar water depth to Tantalum. Oil is exported via an offloading buoy to a tanker.
The field started production 6 years ago and has come off plateau. Current production rates are
around 60 kbpd with water cut of 30%. Water injection facilities have now been installed;
production rates are expected to decline slowly, with water cut increasing rapidly.
Production Capacity: 100,000 bopd, 100,000 bpd gross liquids
Crude quality: Sour - 30 degrees API;
Oil export: Via SBM to a tanker
Gas: Used as fuel with excess flared
Water: Overboard discharge, maximum oil in produced water 40ppmv.
Metering: Oil metered to fiscal standards. 3 parallel metering trains + prover loop
Process Configuration:
Two 50% trains each with 3 stages of 3-phase separation to stabilise the crude oil to tanker
export specifications. Oil is metered to fiscal standards prior to offloading.
Gas from the HP separator and MP separators is compressed and conditioned for use as fuel
gas, gas from the LP separator plus any excess is flared.
Produced water is treated to remove residual oil prior to overboard discharge.
Seawater injection facilities have now been installed on the platform. As a result there is limited
weight and space available on the existing structure.
Assume that the terminal near the Main Town has sufficient capacity to handle the increased
processing required.
8. General information
Should you require further information to prepare a development plan, you are asked to make
assumptions on those issues for which you have no or insufficient information. Please ensure that
these assumptions are clearly detailed in your report.
Appendix
Cost information:
Assume the following cost information for estimation purposes
Item Estimated Costs Comments
Pipeline
Million $
Subsea Single phase 1.75/ Km 10 dia pipe
Subsea Multiphase 0.75/Km 4 dia pipe
Land 1.25/Km
Bundle 5.0/Km 10 Carrier with four lines
Jackets
Jack up Construct 70.0
Jack-up Rent 0.35 per day
Piled 125.0
Concrete 150.0
Semi-sub 75.0
TLP 100.0
Topsides Module
Drilling 75.0
Production 125.0
Utilities 65.0
Accommodation 80.0
Floating
FPSO Construct 175.0 50,000 bbl storage
FPSO - Rent 0.35 /day
Shuttle tanker - rent 0.15 /day
The above figures are indicative costs only. You can use other figures if these are justified with
proper explanation and references.