FLNG vs ‘Subsea-To-Beach’: A Study on the Critical Factors Governing Concept Selection in Deepwater Gas Field Developments

Beltrami, Francesco; Olugbode, Funmi; Subramanian, Kartik; Barrero, A.

doi:10.2118/174927-ms

SPE Annual Technical Conference and Exhibition 2015

DOI: 10.2118/174927-ms

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FLNG vs ‘Subsea-To-Beach’: A Study on the Critical Factors Governing Concept Selection in Deepwater Gas Field Developments

Francesco Beltrami

Funmi Olugbode

Kartik Subramanian

et al.

Abstract: The objectives of this study are: (a) The investigation of the main technical factors affecting the preliminary design and cost estimation of a ‘Subsea-to-Beach’ subsea production system (SPS) and, indirectly, of a floating LNG (FLNG) offshore development; (b) The identification of the ‘key’ factors, seen as the real differentiators in the comparison between ‘Subsea-to-Beach’ and FLNG; and (c) how these ‘key’ factors relate to other decision factors (for example, economics, risks, and technology readiness). … Show more

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Cited by 6 publications

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Applicability Criteria for Subsea Developments: A Study on the HSE Aspects, Technical Limits, Commercial Constraints, and Other Non-Technical Factors to be Discussed while Framing and Sanctioning a Subsea Project

Beltrami¹

2018

Day 3 Wed, September 26, 2018

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The persistence of the current downturn of the subsea industry offers the opportunity to rethink the reasons of the success of subsea and deepwater projects over the past two decades to (a) identify where and how subsea technologies can be effectively used to create value for an operator, and (b) which are the subsea applicability limits, either real or perceived, that may suggest opting for a different field development concept. This paper discusses the definition and use of the applicability criteria for subsea developments. Further to a brief methodology note, these criteria are then used to map, in a qualitative way, different situations where a project may benefit from the adoption of subsea technologies. HSE aspects, technical limits to the required technologies, commercial constraints, profitability during field life, effectiveness of hydrocarbons recovery and other non-technical factors (from human error to geopolitics) are illustrated and arranged into a logical, clear frame to map the proposed applicability ranges for subsea developments. The applicability maps are then employed to briefly discuss some significant aspects of the booming success of the subsea industry from its first ‘golden age’ (1999-2014) and also a few issues and challenges that deserve some attention while preparing for the next subsea and deepwater ‘boom’.

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Applicability Criteria for Subsea Developments: A Study on the HSE Aspects, Technical Limits, Commercial Constraints, and Other Non-Technical Factors to be Discussed while Framing and Sanctioning a Subsea Project

Beltrami¹

2018

Day 3 Wed, September 26, 2018

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A Decision Method at the Concept Select Stage for Choosing Onshore LNG or Floating LNG Production Facilities for Large Offshore Gas Discoveries

Meulengracht,

Djukvik

2023

SPE/IATMI Asia Pacific Oil &Amp; Gas Conference and Exhibition

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Objectives/Scope Several offshore areas with large gas discoveries (> 2 Tcf of reserves) that are distant from markets now have 2 different LNG development options. The first is the classical onshore LNG production facility and the second is the offshore floating LNG (FLNG) production facility, a comparatively new development solution. This paper examines both options from technical and economic perspectives and proposes a method for selecting the best development solution at the Concept Select stage. Methods, Procedures, Process Appropriate gas production profiles and costs including DRILLEX, CAPEX and OPEX were determined for 2 remote prospective gas basins areas - Australia's North West Shelf and the Rovuma basin offshore Mozambique. Both areas have comparable physical settings in terms of reserves, reservoir depth, water depth and distance to shore but they are different from a gas industry maturity perspective. Australia's North West Shelf has both onshore LNG facilities and the Prelude FLNG in operation and is a mature oil and gas area with significant local construction and operational experience. Mozambique's Rovuma basin now features the Coral South FLNG in production, and several onshore LNG production facilities are being planned. However the latter area is in the early phase of building upstream construction and operational expertise. The technical analysis was based on a comparison of key physical settings and project parameters such as production profiles, costs and schedules. This was performed for both FLNGs and onshore LNG production facilities in the 2 mentioned areas. The economic analysis was based on detailed after-tax cash flows of all technical options and provided the key economic metrics for both types of solutions in both areas. Where appropriate a portfolio analysis was performed to include the effect of being in tax positions with multiple units (FLNGs) in operation. Results, Observations, Conclusions The technical and economic analyses were combined to create decision tables for both mature and less mature areas. These tables can be used as a tool at the Concept Select stage to determine under which conditions that an FLNG (or several) is a preferable development solution to onshore LNG, and vice versa. The method was applied to relevant examples. Novel/Additive Information The floating LNG production facility is a relatively new development solution for remote offshore gas discoveries compared with the classical onshore LNG supplied with offshore gas. The novelty of the developed decision tables is that they provide a simplified approach for making high level decisions on whether to choose onshore LNG or floating LNG production facilities at the Concept Select stage.

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An Optimum Cloud Based Approach to Timely and Secure After-Tax Economic Analysis and Decision Making

Meulengracht,

Poulsen

2023

SPE/IATMI Asia Pacific Oil &Amp; Gas Conference and Exhibition

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The requirement for computing power in economic decision making is normally underestimated. It is already recognized in the oil and gas industry that for geologic and reservoir engineering calculations parallel computing power is necessary to carry out simulations of millions of cells. This paper explores he actual requirements for parallel computing for economic analysis covering decision making at all decision gates, and the added benefits of running calculations and databases in a secure cloud solution. Economic analysis for typical oil and gas project decisions requires extensive analysis of alternative scenarios and assumptions, and robustness evaluation such as identification of after-tax key metrics and break-even values. A specific project scenario analysis is then be added to the full analysis for exploration decisions, portfolio mergers and acquisitions (M&A) decisions or selection of optimum development scenario at front end engineering and design (FEED) stage or life-extension projects. A key challenge for economists is that other disciplines do not always recognize the complexity of the analysis involved and the time required to provide the necessary decision basis for investment in multiple-billion dollar projects. Economists need to be involved at an early stage of the work process and have access to powerful computing power provided by appropriate tools in the cloud. Economic analysis is usually the last step in a series of work steps leading up to making an investment decision by management. A framework for such tools in the cloud was developed and applied to several real-case decision gate situations, including exploration, concept select, field development including life extension/enhanced recovery projects and portfolio M&A activities. Other aspects of using this framework with respect to speed, security and user friendliness was also evaluated. An appropriate framework for covering all requirements for timely and secure after-tax economic analysis and decision making was successfully developed and applied to several real cases. This framework allows economists to define inputs and receive results in a fast and timely manner. Traditionally the discipline of economic analysis has not been considered computer-intensive or manpower-intensive, but this paper demonstrates that cloud computing is necessary and provides significant benefits and allows economic analysis to be performed faster and more timely, and still be very secure. This novel cloud-based approach to full and extensive economic analysis fulfills all requirements for fast, timely and secure economic decision making at all decision gates including exploration, concept select, field development incl. life extension/enhanced recovery projects and portfolio M&A activities.

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FLNG vs ‘Subsea-To-Beach’: A Study on the Critical Factors Governing Concept Selection in Deepwater Gas Field Developments

Cited by 6 publications

References 23 publications

Applicability Criteria for Subsea Developments: A Study on the HSE Aspects, Technical Limits, Commercial Constraints, and Other Non-Technical Factors to be Discussed while Framing and Sanctioning a Subsea Project

Applicability Criteria for Subsea Developments: A Study on the HSE Aspects, Technical Limits, Commercial Constraints, and Other Non-Technical Factors to be Discussed while Framing and Sanctioning a Subsea Project

A Decision Method at the Concept Select Stage for Choosing Onshore LNG or Floating LNG Production Facilities for Large Offshore Gas Discoveries

An Optimum Cloud Based Approach to Timely and Secure After-Tax Economic Analysis and Decision Making

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