Generic Development Concept and Costing for Marginal Field

The objectives of this study is to identify the latest approaches and technical advances associated with development of marginal offshore field and the innovations used to reduce overall field development cost. Also to develop a costing basis to evaluate quick estimation of development cost of a marginal field.
Increasing oil demand pushes oil companies to find concepts, which considerably reduce the costs of marginal field developments and consequently make these developments economically feasible.
The methodology adopted for this study is literature review. Review and analysis of actual marginal field development concepts, novel facilities, and criteria used for options selection and development strategies around the world.
A Generic development concept of marginal offshore field development were reviewed in order to identify the suitable alternative options, project management strategies and innovative technology that can be used for conceptual development phase for marginal prospects. A definition and understanding of marginal fields was established, drilling development approach conventional and innovative methods were identified, and also conventional and novel facilities development concepts were reviewed. The development basic cost estimation method is carried out. The findings showed that factors such as the reserve, environmental and regulations conditions, market conditions, field development cost and proximity to host existing process platform determine the commercial viability of marginal prospects. The success of such prospects was found to be dependent on development strategy, applied technology and project execution. Cost, schedule and existing infrastructure were identified as the main drivers influencing the strategy selection and facilities viability. Strategies involving fast track developments, tie-back to host facilities, leasing of facilities and stand alone developments were highlighted as the preferred choices. The life –cycle cost is an important method in assessing the impact of new technology on marginal field economics. A guideline for selecting a marginal field development strategy was proposed.