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Life cycle cost (LCC) evaluation has been a powerful decision-making support tool for assessing different alternatives throughout an asset's life cycle. After having been ushered in by the global awakening of a sustainability conscience, there is a need to upgrade the LCC calculation to include these sustainability factors. This train of thought has also been acknowledged by the oil and gas industry, through the recent update of the ISO 15663:2021 (International Organization for Standardization), which addressed sustainability, in conjunction with other ISO standards, guides and the IOGP (International Association of Oil & Gas Producers) report. Following this trend, the paper aims to present a sustainable LCC efficiency model for oil and gas facilities, particularly in the selection of the optimum equipment or package. To achieve this, the paper drilled down possible cost factors related to these concerns and offers a model that is required to remain relevant in the current conditions. The LCC model presented was developed through a systematic research method, including trials, feedback loops and validation processes. Potential production risks were also factored in, so that the LCC would deliver the best possible value to the business. Finally, a step-by-step process in developing the LCC structure will be illustrated and explained in the paper.
Life cycle cost (LCC) evaluation has been a powerful decision-making support tool for assessing different alternatives throughout an asset's life cycle. After having been ushered in by the global awakening of a sustainability conscience, there is a need to upgrade the LCC calculation to include these sustainability factors. This train of thought has also been acknowledged by the oil and gas industry, through the recent update of the ISO 15663:2021 (International Organization for Standardization), which addressed sustainability, in conjunction with other ISO standards, guides and the IOGP (International Association of Oil & Gas Producers) report. Following this trend, the paper aims to present a sustainable LCC efficiency model for oil and gas facilities, particularly in the selection of the optimum equipment or package. To achieve this, the paper drilled down possible cost factors related to these concerns and offers a model that is required to remain relevant in the current conditions. The LCC model presented was developed through a systematic research method, including trials, feedback loops and validation processes. Potential production risks were also factored in, so that the LCC would deliver the best possible value to the business. Finally, a step-by-step process in developing the LCC structure will be illustrated and explained in the paper.
Consistent feedback on factors affecting production loss is key to monitoring production performance and drive improvements in production efficiency of upstream (E&P) installations. However, operators have used different frameworks for calculating and reporting production efficiency, and this has hampered communication among stakeholders and improvement efforts. The new ISO/TS 3250 "Calculation and reporting of production efficiency in the operating phase" has been developed to provide requirements and guidance for calculation and reporting production performance data, and production loss data, during the operating phase. This paper describes the background and how this new ISO/TS can assist in achieving consistency in determining the production potential and classifying production loss. Calculation of the achieved production efficiency is in principle a simple exercise of calculating the ratio of actual production and production potential. However, changes in reservoir conditions, equipment failure and maintenance events, and external factors (such as weather), as well as economics, affect actual production or production potential to various degrees, and it is not always obvious how these events should be considered when calculating and reporting production efficiency. While ISO 20815:2018 already includes production loss categories for reporting production loss, the new technical specification extends these categories and provides requirements and additional guidance. For the allocation of production loss to different systems and equipment classes, the technical specification provides the important relationship to the classification provided by ISO 14224:2016, which is being used by operators in their computerized maintenance management information systems. In an industry where continuous improvement is essential, keeping track of performance measures is key. Improving production performance or optimizing production efficiency in a life cycle perspective within HSE and sustainability frameworks, requires knowledge of such performance and identification of the most important contributors to production loss. The technical specification also provides a framework that enables consistency for benchmarking between an operator's own production facilities or across the industry. This paper introduces all participants in the process – operators, contractors and other stakeholders, to this new international standard approach as described in this new technical specification.
DeepStar® is an operator-funded Research & Development joint industry consortium including members of the oil community such as oil & gas companies, vendors, regulators, and academic/research institutes working in multidisciplinary technology areas. The DeepStar Project has been in continuous operation since its inception in 1991 and has focused on issues and technologies required to successfully tackle future development and production challenges identified by its members.1 The focus of this manuscript and extension, the presentation, will be on the numerous projects that were the baseline for current industry standards. The DeepStar program is split into six technical areas of focus from subsurface and drilling to topside and autonomous operations and everything in between. The manuscript will be written focusing on those technical areas and the supporting projects in which final documents are used within the standards. The emphasis will be on three strategic areas of interest for our DeepStar members; first Integrity Management and the integration of our guidelines into the 1) API RP 2SIM Structural Integrity Management of Fixed Offshore Structures2, 2) API RP 2RIM Integrity Management of Risers from Floating Production Systems3 and 3) API RP 2 MIM Mooring Integrity Management.4 The second topic is DeepStar work on AUV interface standards5 and the integration of our work into API RP 17H6 and into the SWIG JIP.7 The final topic highlighted within the session on Standards is DeepStar’ continuous work on Subsea Chemical Storage and Distribution Systems Subsea8 to which DeepStar has developed the business case, background requirements, field case studies, and funding commercialization development on this topic since 2010.9 This manuscript outlines DeepStar’ strategies, projects, and accomplishments through a collaborative effort amongst operators, engineering firms, manufactories, academic intuitions, and government regulators. Through this joint effort, members have been able to minimize the cost and risk of industry-wide engagement and technology development, while at the same time making the most of the organization's particular technology achievements. This aligns with DeepStar’ vision for the development of deepwater technology, which is closely tied to the development and qualification of advanced technologies and gaining acceptance within the oil & gas community. DeepStar has continuously confronted industry-wide issues and provided a forum for discussion and technology acceleration.
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