An Efficient Multiperiod MINLP Model for Optimal Planning of Offshore Oil and Gas Field Infrastructure

Abstract

In this paper, we present an efficient strategic/tactical planning model for offshore oilfield development problem that is fairly generic and can be extended to include other complexities.The proposed multiperiod non-convex MINLP model for multi-field site includes three components (oil, water and gas) explicitly in the formulation using 3 rd and higher order polynomials avoiding bilinear and other nonlinear terms. With the objective of maximizing total NPV for long-term planning horizon, the model involves decisions related to FPSO (floating production, storage and offloading) installation and expansion schedule and respective oil, liquid and gas capacities, connection between the fields and FPSOs, well drilling schedule and production rates of these three components in each time period. The resulting model can be solved effectively with DICOPT for realistic instances and gives good quality solutions.

Modeling and Computational Strategies for Optimal Development Planning of Offshore Oilfields under Complex Fiscal Rules

“…Notice that these fourth order polynomials correspond to the integration of the cubic equations for WOR and GOR as explained in Gupta and Grossmann 17 . The motivation for using polynomials for cumulative water produced and cumulative gas produced, eq.…”

“…The motivation for using polynomials for cumulative water produced and cumulative gas produced, eq. Based on the computational experience by Gupta and Grossmann 17 , Model 3R is the most efficient as it can directly be solved to global optimality in reasonable time as compared to other models. Furthermore, its solution can be used to fix the design decisions in the MINLP models to obtain near optimal solutions of these models.…”

“…The computational efficiency of the proposed MINLP and MILP models can be further improved by neglecting the timing of the piping investments. In particular, Model 1RF, 2RF and 3RF can be derived from corresponding Models 1R, 2R, and 3R, respectively, that are described in Gupta and Grossmann 17 by including the fiscal constraints, (1)- (13), (16)- (29), (31)- (41) and (43)-(50).…”

“…There are several deterministic models that have been proposed for the oil/gas field infrastructure planning problem (Lee and Aranofsky 2 , Aronofsky and Williams 3 , Frair 4 , Bohannon 5 , Sullivan 6 , Haugland et al 7 , Behrenbruch 8 , Iyer et al 9 , Van den Heever and Grossmann 10 , Kosmidis et al 11 , Barnes et al. 12 , Ortiz-Gomez et al 13 , Tsarbopoulou 14 , Carvalho and Pinto 15,16 , Gupta and Grossmann 17 ).…”

“…In this paper, we address the optimal development planning of offshore oil and gas fields under complex fiscal rules considering as a basis the deterministic model for multi-field site by Gupta and Grossmann 17 , which includes sufficient level of detail to be realistic as well as being computationally efficient. The proposed model considers the trade-offs between optimal investment and operations decisions that correspond to the simple NPV based model and resulting overall NPV for the oil company after paying government share, and yields improved decisions in a more realistic setting for the enterprise (see Figure 1).…”