Contractor anticipates cost reductions through subsea innovation

Operators are increasingly putting pressure on contractors to reduce the cost of offshore field developments, forcing them to work out where they best achieve further cuts.

Rasmus Sunde, president of ABB Offshore Systems AS, Oslo, reckons that a reduction in production costs of up to a further 40% is within reach. Half of this potential reduction would come from new technologies, with 30% from improved work processes and 20% from streamlining of fiscal regimes.

"Production costs per barrel can be reduced by up to 40% through improved work process and commercial processes and by applying emerging technologies," said Sunde, "but a profound change of mindset is necessary on the part both of operators and suppliers.

"To a fast-increasing extent, solutions will be tailor-made for each and every field. By analyzing reservoir data and conducting front-end field studies, we are able to identify the technology gap, thus enabling us to focus our research and development across company boundaries.

"This makes for closer cooperation and novel constellations between technology suppliers, yards, ship-owners, and operators. The result is solutions that are making use of tomorrow's technologies rather than relying on overall designs that were developed decades ago, when oil prices were significantly higher than they will be in the future."

Sunde expects emerging subsea technologies to enable accelerated oil production rates and enhanced recovery from both new fields and subsea satellites of existing production facilities. Thus development costs can be reduced by 30-50% and operating costs by 30-60%, he maintains, allowing profitable developments with an oil price of $8-10/bbl.

"Further cost reductions are possible by closing identified technology gaps," said Sunde. "Already emerging are processing technologies like subsea gravitational separators, single and multiphase pumps, subsea sand handling, and oil-in-water monitoring.

"Downhole technology will undergo rapid development: here I will just mention optical pressure and temperature sensors, high temperature electronics, downhole chokes with actuators, and downhole flow meters."

Shell/BASF JV opens world class petrochem plant in the Netherlands

A joint venture of Shell Nederland Chemie NV and BASF Nederland BV officially opened a new styrene monomer and propylene oxide plant at Moerdijk, the Netherlands.

The two companies hold equal interests in the plant, which was built at a cost of 1 billion guilders ($485 million) alongside an existing Shell styrene monomer and propylene oxide unit.

The new plant has capacity to produce 565,000 tons/year of styrene monomer, a 'building block' for polystyrene and high-grade resins, and 250,000 tons/year of propylene oxide, which is used to make plastic foam.

Shell said linking the new plant to the existing facilities brought significant synergies to the project, which is one of the world's largest styrene monomer/propylene oxide plants.

Shell Group Managing Director Jeroen van der Veer said, "At a time when almost all news concerning Shell Chemicals is devoted to divestments - we are in the process of selling 40% of our chemicals assets - I feel excited to e present at the start of this new investment.

"I consider a new joint venture between two leading chemicals players, like BASF and Shell, as a sensible way for large investments in the future."

BASF Director Dr. J. Hambrecht added: "The ever-increasing global competition forces petrochemical and chemical companies into investments which represent most modern technology, the biggest economies of scale, and an optimal integration into a 'Verbund' site. All these basic conditions are fulfilled within this SMPO plant of Basell."

Denmark plans new offshore field development

Denmark's Dansk Undergrunds Consortium plans to develop the recently discovered Halfdan reservoir, which has estimated reserves of 70 million bbl of oil.

DUC is a venture comprising operator Maersk Olie & Gas AS 39%, Royal Dutch/Shell 46%, and Texaco Inc. 15%. Texaco said DUC is seeking development approval from the Danish Energy Agency, with a view to beginning drilling and construction work this year.

DUC plans to install a small platform in the field, which would export oil to nearby Gorm field by pipeline. A total of nine development wells is planned, to give a combined output of about 25,000 b/d. First oil is anticipated in early 2001 and the development cost is expected to be 1.5 billion Danish kroner ($216 million).

Project focus: UK safety body warns on FPSO design methods

The UK Health & Safety Executive has completed a review of the analysis methods available for designing floating production, storage and offloading systems and concluded that conventional tanker design rules are not necessarily appropriate for ship-shaped FPSOs.

Conventional oil tankers are mainly designed using Ship Classification Rules that are predominantly empirically based, and which use a limiting stress approach. This contrasts with the approach to designing offshore platforms, in which the structural analysis is detailed and the environmental loading is site-specific.

"The operation of offshore structures," said the HSE, "has been very successful and it is evident the levels of reliability demanded of the structures guarantees protection of the operators investment.

"In contrast, it is fair to say that the ship classification rule approach to the design and analysis of FPSO structures provides no real basis to evaluate the effects of different operating practices when the FPSO is fixed on-station and subject to harsh environmental conditions.

"Furthermore, whereas all platform structures incorporate significant redundancy in their structural geometry, an oil tanker type structure tends to have very little capability to redistribute internal loading following the failure of part of the structure.

"This feature further emphasizes the importance of accurately calculating the response of the structure to extreme loading conditions and account for this in the evaluation of the target reliability values."

Related Articles

Study looks at gas transmission, storage sites’ methane releases

07/21/2015 A comprehensive study of US natural gas transmission and storage operations found total methane emissions from 2,292 on-site measurements, addition...

Well completed at Vostochno-Messoyakhskoye oil field onshore Russian Arctic

07/21/2015 JSC Gazprom Neft reported completion of construction of the first production well at Vostochno-Messoyakhskoye oil field on the Gydan Peninsula in n...

Total starts oil flow from Dalia Phase 1A on Block 17 off Angola

07/21/2015

Total SA has started production from Dalia Phase 1A, a development on the company’s deep offshore operated Block 17, 135 km offshore Angola.

CNOOC starts oil production from Luda 10-1 adjustment project

07/21/2015 CNOOC Ltd. said its comprehensive adjustment project at Luda 10-1 oil field has started production in the Liaodong Bay area of Bohai Gulf (OGJ Onli...

Last key structure sails for Cygnus off UK

07/21/2015 The last of four main structures for Cygnus natural gas field has departed the Heerema Hartlepool yard in the UK en route to installation on North ...

EPA needs to improve oversight of fracing with diesel, OIG report says

07/20/2015 The US Environmental Protection Agency needs to improve its oversight of hydraulic fracturing using diesel fuels and address any compliance issues,...

URTeC: Shell’s Hackbarth says unconventional innovation begins with data

07/20/2015 Operators should resist the impulse to pull back on investments in technology despite a down oil market, said Claudia J. Hackbarth, manager, unconv...

BPTT relocates Juniper project fabrication work to Texas

07/20/2015 BP Trinidad & Tobago LLC (BPTT) reported that it has agreed to relocate fabrication of its Juniper platform’s jacket and piles from Trinidad Of...

Nile Delta gas strike due on production

07/20/2015

Eni SPA said a natural gas discovery on the Nooros prospect in Egypt will be placed on production at an unspecified rate within 2 months.

White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected