W16_WRP_Production Facility Integration for Marginal Gas Fields


1. Problem Definition

An oil and gas company discover some gas fields that not economic to be developed individually due to the amount of accumulation gas cannot satisfy the field economic. In addition, the most of the gas from those fields are with the high content of CO2 and the buyer has set the max allowable content of the CO2. Therefore, the company try to see the possibility to developed them as integrated marginal fields.

2. Identify the Feasible Alternative

There are 3 main factors and possibilities that will affect the economics of the integration:

  1. the number of fields to be integrated,
  2. the maximum plateau rate that will lead to the capacity of the facility and duration of the production, and
  3. the use of the existing nearby facility
  4. the mixing/ combination strategy of the fields to satisfy the maximum CO2 content.

3. Development of the Outcome for Alternative

The company will run 6 Major Scenarios with some sub scenario as indicated in Table-1:

Table-1. Development Scenario

Tab-1 Dev Scenario

4. Selection Criteria

The selection criteria will be on the amount of the gas can be retrieved (EUR: Estimated Ultimate Recovery), the NPV, POT, and the IRR.

5. Analysis and Comparison of the Alternative

The economics analysis of the scenarios are shown in the Table-2:

Table-2. Scenario Analysis

Tab-2 Analysis

6. Selection of the Preferred Alternative

The first priority for choosing the scenario is the EUR and the NPV. It is obvious that the Scenario 5c is the best scenario with EUR of 145 BCF and NPV of US$ 125 million.

Fig-1 Schematic Facility

Figure 1. Schematic of the Facility Integration

7. Performance Monitoring and the Post Evaluation of Result

Since the prediction of gas production from each fields and CO2 content still contain risk, the production of each field should be monitored closely and the rate of the high CO2 content field and low one, with the use of the CO2 removal, should be combined to get the sufficient CO2 content indicated by the buyer.

Reference

  1. Liana, Lita, (2013). Using AHP to Determine Appropriate MARR for Oil and Gas Projects in IndonesiaCCP Certification Technical Paper. 118130 (6), pp.13-17
  2. Garuda AACE (2015). W03_WRP_Treating or Reducing The Gas Production?. Retrieved from: https://garudaaace2015.wordpress.com/2015/03/20/w03_wrp_treating-or-reducing-the-gas-production/
  3. Garuda AACE (2015). W06.1_WRP_MRU Preliminary Economical Evaluation using NPV. Retrieved from: https://garudaaace2015.wordpress.com/2015/04/07/w06-1_wrp_mru-preliminary-economical-evaluation-using-npv/
  4. Topazsmart (2014). W5_AAA_Benefit Cost Ratio & Payback Period for Gas Development Project. Retrieved from: https://topazsmartd.wordpress.com/2014/05/26/w5_aaa_benefit-cost-ratio-payback-period-gas-development-project/

 

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One Response to W16_WRP_Production Facility Integration for Marginal Gas Fields

  1. drpdg says:

    Excellent, Pak Wilson……. You’ve done a great job on your blogs, just too bad you only did 16/25….. 64% tells me you really aren’t well prepared to take your AACE Exams….. What you may want to consider would be to join another class and start over again?

    Tough to do but you can bring most (but not all) your work with you……

    Next class starts in November…….

    Might want to think about it….

    BR,
    Dr. PDG, Jakarta

    Like

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