Page 430 - Hydrocarbon Exploration and Production Second Edition

Managing Decline 417

processing drilling site residential area
facilities

abandoned extended
well reach well

new field
Figure 17.12 Extended reach development.

17.5.2. Satellite development

Handling production from, and providing support to, a satellite field from an older
facility is at first glance an attractive alternative to a separate new development.
However, whilst savings may be made in capital investment, the operating cost of
large processing facilities may be too much to be carried by production from a
smaller field.
Initially, if operating costs can be divided based on production throughput, the
satellite development project may look attractive. However, the unit costs of the
declining host field will eventually exceed income and the satellite development
may not be able to support the cost of maintaining the old facilities. If the old
facilities can be partly decommissioned, and provision made for part of the
abandonment cost, then the satellite development may still look attractive. The
satellite development option should always be compared to options for independent
development.
In an offshore environment, development via a subsea satellite well can be
considered in much the same way as a wellhead on land, although well maintenance
activity will be more expensive. However, if a simple self-contained processing
platform is installed over a new field and the host platform is required only for ‘peak
shaving’ or for export, a number of other development options may become
available. The host platform may actually cease production altogether and develop a
new role as a pumping station and accommodation centre, charging a tariff for such
services. There may be significant construction savings gained for the new platform
if it can be built to be operated unmanned. The old reservoir may even in some
cases be converted into a water disposal centre or gas storage facility.
Whatever form of incremental development is considered, the benefits to the
host facility should not be gained at the expense of reduced returns for the new
project. Incremental and satellite projects can in many situations help to extend the
production life of an old field or facilities, but care must be taken to ensure that the
economics are transparent.