Models for the Minimum Cost Development of Offshore Oil Fields

Abstract

Since the cost of developing a single offshore oil field usually runs in the tens of millions of dollars, savings due to better development policies could be quite significant. This paper presents a general model for developing offshore fields at minimum cost. The model applies to any field developed from fixed platforms, and thus could also be used directly for the development of fields on the north slope of Alaska. The basic limitations and possible utility of the model are discussed. The mathematical programming formulation of the problem is shown to be identical in general structure to the well-known warehouse location problem. Algorithms for solving the problem are developed, whereby the algorithm for a particular problem will depend upon the general form of the platform cost function. The algorithms developed are tested and shown to be computationally practical.

Oil and gas supply modeling

“…During that time, the cumulative production Q from time to to a later time t is given by Or, since for times earlier than t and later than tk, P = 0, then Qk = Pdt = Qom (14) Thus Q00 may be taken to be the ultimate amount of oil that will ever be produced in the region during an unlimited period of time.…”

A bilevel decomposition technique for the optimal planning of offshore platforms

“…The cost depends directly on the assignment of the well to the platform where connection cost COST i,j between wells and platforms is the same as the one mentioned by Devine and Lesso (1972):…”

“…This problem has been initially presented in the literature by Devine and Lesso (1972) that proposed an optimization model for the development of offshore oilfields.…”

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