Watching the World: TLP shopping

Nov. 5, 2001
At this time of the year in much of the world, thoughts turn to holiday gift-giving.

At this time of the year in much of the world, thoughts turn to holiday gift-giving. But what to give the oilman (or oilwoman) who has everything?

The answer could be sitting in the North Sea with an undisclosed price tag. It is a piece of offshore history and could have several new uses: the Hutton tension leg platform.

Conoco Inc. installed the Hutton TLP in 1984. This was the first commercial use of TLP technology for an offshore platform, and the TLP was constructed with a robust and conservative design. Production peaked at 120,000 bo/d in 1986, and Kerr-McGee North Sea UK Ltd., at that time Oryx Ltd., took over operatorship in 1994.

The TLP is described by Kerr-McGee as a "commercially attractive field development solution, providing accelerated development with low technical risk."

It could be used for its original drilling and production purpose on a new location in a water depth of up to 1,000 m. It could also be- come a catenary-moored production facility or a catenary-moored mobile drilling unit, or it could be converted to a bottom-sitting submersible production platform. It was designed for open ocean tow- age, so it could be reused almost anywhere in the world.

Buying used

But why buy used? There are a number of economic and technical advantages for field development, such as lower capital cost compared with newbuild facilities; first oil 2 years before a newbuild platform or floating production, storage, and offloading unit could start up; reduced risk to cost and schedule; full certification with an approved safety case; and a documented maintenance and inspection history

Kerr-McGee calculated that if it were used on an 80 million bbl oil field, with production at 50,000 bo/d for 10 years, capital cost savings would be around $100 million, in addition to substantial tax savings.

Money's worth

And what would you get for your money?

The Hutton TLP is a semisubmersible structure with 6 columns. It is presently moored in 148 m of water. It has an operating displacement of 61,580 tonnes and is configured for 120,000 bo/d production and gas handling capacity of 10 MMcfd.

There is a 1 million lb capacity drilling derrick with top drive, a 32-well drilling bay, accommodations for 217 workers, and two 50 tonne deck cranes and a 15 tonne drilling crane

The price? Well, like some supercars, if you have to ask the price you can't really afford it. However, Kerr-McGee is open to offers and likely could structure an attractive package.

Previous attempts to sell large North Sea production structures for reuse have come to naught and have attracted ill-informed criticism from environmental protestors.

The Hutton TLP would be the first major structure to end a useful and productive life in the North Sea and then be developed for several years of profitable life in a new oil province.

Its successful reuse would confirm that the industry is serious in its investment in true sustainability.