Integration of Petroleum Technologies for the Economic Monetization of Small Offshore Fields

Abstract

This paper entails the profitable development of an offshore small oil reservoir. Offshore technologies are expensive and require higher capital expenditures (CAPEX) and operating expenses (OPEX) due to the need for advanced technologies for drilling, production, and environmental protection. Generally, reservoirs with large reserves are considered for large capital investments. However, this paper demonstrates how accurate reservoir description in conjunction with advanced offshore technologies can help to develop small offshore fields economically. These technologies are deployed in an integrated manner (surface and subsurface) to develop such fields. Offshore logistics for production facility maintenance increases the OPEX due to the transportation of personnel and equipment to and from the site. Offshore production systems have higher CAPEX due to specialised offshore equipment, including sub-sea equipment. Other than higher costs, the oil price volatility makes it difficult to plan for long-term production to recover the cost. Therefore, offshore fields have several challenges, e.g., logistical, technical, environmental, economic, and safety. However, collaborations and partnerships between industry and government help to share the project's economic risk. Cost can be further reduced through new development, production, and reservoir characterisation technologies to manage offshore development and operations costs. Production is enhanced through advancement in well construction and production systems to support high OPEX of floating production, storage, and offloading system.