Neptune Project: Overview and Project Management

Abstract

Abstract Oryx Energy Company and CNG Producing Company have recently completed the installation of the World's First Spar to be used as a base for well production operations. This Deepwater development is located in Viosca Knoll Block 826 in the Gulf of Mexico, in a water depth of 1930 feet, and is called the "NEPTUNE PROJECT." This paper will provide an overview of the physical characteristics of the Neptune Project. It will also discuss Project Management philosophies that were applied in the execution of the project. The use of a small management team by the owners, integrated with keyteam members from the Contractors' organizations and Classification Society, resulted in completion of the projectwithin original schedule requirements. Unique to the project was the use of the Internet for domestic and international communications. This reduced drawing review and documentation turnaround cycles, helping to support the aggressive project schedule. The strategies applied can be utilized to more effectively manage the execution of largeand small projects, while containing cost and achieving on time completion. Introduction Oryx Energy Company and CNG Producing Company have recently installed facilities in Viosca Knoll Block 826 (VI(826) and have begun production of the reserves located in thearea. Exploration drilling in the area began in 1983 by other operators, and Oryx's exploration efforts began in 1984 with the acquisition of the VK 826 Block. Concurrent with this exploration activity, Ed Horton, President of Deep Oil Technology, Inc.(DOT), patented (Ref. 1) a Spar for use as a floating production platform. This development was sponsored by a Joint Industry Project, in which Oryx participated, beginning in 1986. In 1993, representatives of Oryx and DOT began to focus on theapplication of Spar technology to develop these reserves. The complex geology of the area has been a particular challenge to the selection of the proper development methodology, as discussed below. Oryx drilled its first exploration well in 1989, and initial results were encouraging. Subsequent wells confirmed the presence of approximately 50-75 million equivalent barrels of oil of recoverable hydrocarbons. Several development options were evaluated by Oryx and the other working interest partners. During 1993, CNG became interested in participation in the project and in 1994 formally bought the interest of another major operator. The successful development of the reserves in VK. 826 Unit, is a tribute to the tenacity of a team of geologists, geophysicists, reservoir engineers, facility and operations engineers and scientists who have remained committed to developing a system that would prove the application of this technology for the economic recovery of the oil in place. Location The Viosca Knoll Block 826 Field Unit occupies four blocks, Viosca Knoll 825, 826, 869 and 870. The project is located in federal waters, Offshore Alabama, approximately 60 miles east of the main pass of the Mississippi river, 135 miles southeast of New Orleans, Louisiana and 90 miles south of Mobile, Alabama (Fig. 1) The water depth ranges from 1175 feet in the northwest comer of Block 825 to 3225 feet in the southeast comer of Block 870.