Stones Development: Best in Class Risk Reduction and Cost Improvement During Project Execution

Abstract

The Stones asset is an ultra-deepwater development located approximately 200 miles south of New Orleans in ~9500 feet of water . Final investment decision was taken in 2013, with first production achieved in September 2016. This development is part of the frontier Paleogene outboard play in the Lower Tertiary Trend that targets the Upper and Lower Wilcox formations. In early 2014, a change management program was kicked off, originally centered on minimizing well construction risks. This change management program was organically grown, with cost and risk baselines being re-assessed bottoms up, and key opportunities identified. Major improvements were obtained in the areas of minimization of risk and capital investment during the period of 2014 to 2016. Improved risk and cost themes centered on: (a) enhanced trade-off between subsea and well construction complexities; (b) improved subsurface imaging to increase flexibility in well trajectories; (c) deepened integration between completion choices and well designs; (d) technical functionality rationalization; and (e) supply chain improvements. This paper highlights the key change management lessons learned that took place during the Stones project execution resulting in the project meeting the cost promise from project sanction.