Abstract
Abstract
The main strategies that can be used to maximise profits from integrated satellite field developments are:-Restructuring the cost, production and revenue profile of the satellite fieldIncreasing the volume of oil/gas processed, and available or future use, by the central processing and distribution facility through:-Using a combined strategy of low tariffs, volume discount, and netback agreements.Using reusable facilities, shared facilities, extended reach wells, contractor finance, partnering agreements, netback agreements, oil/gas price swapsImproving development, discovery and exploration efficiency.
Introduction
Planning for integrated satellite field developments can occur at the exploration, appraisal, development, or late production phase of a field's life, In all four cases the primary concerns are:-The hydrocarbon resource (both discovered and undiscovered) that is, or could be available,The funds required to find (if the have not been discovered), a praise, and develop the resourceApplicability of contractor finance Por appraisal and development (lease rates, profii sharing, etc.)Matching satellite production to infrastructure capacity shortfallsOptimizing field production, capex, opex, and tariffsEconomic significance of partnerin and alliancesFuture facility reuse and salvage valueRemoval of production, oil/gas price and cost risks
An integrated approach considering these concerns and utilising TSP, NPV, OPMV, and RAR modelling is outlined, This approach can result in the formulation of an optimum economic management strategy for both integrated developments utilising satellite production and individual satellite fields.
The general schematic approach used to maximise proftis from satellite developments is to divide the life cycle of a satellite based business into two economic phases:-A resource assessment and establishment phaseA distribution and processing business phase
Both phases may overlap in time and may be ongoing Simultaneously.
Companies planning for satellite production are essentially developing a distribution and processing business. This business may still be in operation after production from the field used to establish the infrastructure has ceased1.
The Resource Establishment Phase
This phase assesses the discovered and undiscovered resource within tieback range (c.25 km) of the infrastructure, and determines the impact of exploration/appraisal investment efficiency on profitability.
The four key factors affecting profitability (excluding oil or gas price) are (in order of relative importance):-Inherent ProspectivityDiscovery or Technical EfficiencyExploration EfficiencyWell, Appraisal, EWT and Development Costs
The inherent prospectivity of the area (<25 km from the facilty) cannot be altered. It can be assessed, and offset by focussing on discovery and exploration efficiency.
The discovery efficiency and the exploration efficiency can be improved by increasing the number of exploration man-hours and support facilities (3D workstations, databases, training, etc.) assigned to the Project, in both focussed data acquisition and interpretation.
The relative significance of each factor on the economic viability of future investment leading to the establishment of a resource which is sufficient to justify the development of a new integrated satellite cluster development is outlin