Two Recent Conversions Of Semisubmersible Drilling Units To Floating Production Facilities

McBee, H.E.; Hill, R.S.; Dove, P.G.S.

doi:10.4043/7533-ms

Cited by 5 publications

(1 citation statement)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The first two semisubmersibles installed were decommissioned early due to poor reservoir performance [8,9]. In 2005, Hurricane Rita destroyed Chevron's MTLP Typhoon, which was subsequently converted into a deepwater artificial reef [10].…”

Section: Decommissioningmentioning

confidence: 99%

Decommissioning forecast in the deepwater Gulf of Mexico, 2013–2033

Kaiser

2015

Marine Structures

View full text Add to dashboard Cite

Section: Decommissioningmentioning

confidence: 99%

Decommissioning forecast in the deepwater Gulf of Mexico, 2013–2033

Kaiser

2015

Marine Structures

View full text Add to dashboard Cite

Decommissioning Cost Estimation in the Deepwater U.S. Gulf of Mexico

Kaiser

2016

Exploration and Production of Petroleum and Natural Gas

View full text Add to dashboard Cite

Deepwater structures are expensive to fabricate and install, and at the end of their useful life, will also be expensive to decommission. From 1989 to 2012, 15 structures in water depth greater than 400 ft were decommissioned in the U.S. Gulf of Mexico. The purpose of this chapter is to estimate cost for well plugging and abandonment, conductor severance and removal, pipeline abandonment, umbilical and flowline removal, and platform removal for the 95 deepwater structures (50 fixed platforms, 3 compliant towers, and 42 floaters) in the Gulf of Mexico circa January 2013. Work decomposition algorithms developed by ProServe Offshore are combined with government databases and the author's generalizations to provide order-of-magnitude cost estimates for the deepwater structure inventory. Bullwinkle and Pompano are expected to be the most expensive fixed platform decommissioning projects estimated at $265 million and $203 million, respectively. Mars is expected to be the most expensive floater decommissioning at a cost of $336 million, followed by Ursa ($222 million), Auger ($205 million), and Hoover/Diana ($201 million). Total decommissioning liability for the deepwater structure inventory based on 2009–2010 market conditions and technologies and the collection of assumptions described herein, is estimated at $6.7 billion, $2.4 billion for fixed platforms and compliant towers, and $4.3 billion for floaters.

show abstract

Development Strategies and Profitability Assessment of Semisubmersible Production Units in the U.S. Gulf of Mexico

Kaiser

2016

Exploration and Production of Petroleum and Natural Gas

View full text Add to dashboard Cite

The U.S. Gulf of Mexico is one of three major deepwater-producing regions in the world, but surprisingly little information exists that methodically examines project profitability. Reliable economic assessments in the deepwater space generally is lacking, and even basic performance measures and comparative issues have not been addressed. Deepwater developments are expensive, complex, and risky endeavors, and significant delineation work is required before a reservoir produces. The major challenge in development is achieving an acceptable financial return in an uncertain environment. The purpose of this chapter is to review semisubmersible developments in the Gulf of Mexico and to estimate their profitability. Through 2013, 11 semisubmersibles produced 777 MMbbl oil and 2,350 Bcf natural gas and generated about $78 billion in gross revenue. Development cost for the projects totaled approximately $38 billion, and if operating cost average $10/boe, total cost circa 2013 is estimated at $50 billion, yielding a benefit-cost ratio of 1.6. In 2013, 8 semisubmersibles produced 80 MMbbl oil and 178 Bcf natural gas worth approximately $9.3 billion. Na Kika is the most successful development with a net present value greater than $5 billion and an estimated 34 % return on investment. Atlantis and Thunder Horse are valued in excess of $2 billion each with expected returns in the 15 to 20 % range. Three semis have been decommissioned, none of which were profitable, and Telemark and Independence are not expected to generate positive returns. Operators spent $13/boe to develop fields with more than 300 MMboe reserves, and $50/boe for fields with less than 100 MMboe reserves. Remaining reserves circa 2013 for the semisubmersible inventory are estimated at 364 MMbbl oil and 740 Bcf natural gas, and $23 to $50 billion in future revenues are expected for oil prices between $60 to $120/bbl. Telemark and Thunder Hawk appear near the end of their life cycle.

show abstract

Two Recent Conversions Of Semisubmersible Drilling Units To Floating Production Facilities

Cited by 5 publications

References 0 publications

Decommissioning forecast in the deepwater Gulf of Mexico, 2013–2033

Decommissioning forecast in the deepwater Gulf of Mexico, 2013–2033

Decommissioning Cost Estimation in the Deepwater U.S. Gulf of Mexico

Development Strategies and Profitability Assessment of Semisubmersible Production Units in the U.S. Gulf of Mexico

Contact Info

Product

Resources

About