Page 593 - Marine Structural Design

Part V

Risk Assessment

Chapter 32 Economic Risk Assessment for Field Development

32.1 Introduction

32.1.1 Field Development Phases
An offshore field development project generally consists of four main phases, i.e., exploration,
development, operation, and decommission. An illustration of the development phases (mainly
the first three), along with the main activities, duration, and the cost in each phase is shown in
Figure 32.1.

TIME EXPLORATION DEVELOPMENT OPERATION
GRANTING OF PERMIT
1
2
3
4
5
6
7
8 Drilling
9 Simulations Wells
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
2s
26
...
DECOMMISSION
Share of Technical Cost 10 to 20Yo 40 to 60%
Figure 32.1 Field Development Phases
The exploration phase starts after the field license is awarded. If an oil & gas field is
discovered based on the results from exploration drilling, the concept screening and feasibility
studies of the field will be carried out. Technical feasible and commercial optimum solutions
are identified. The exploration phase concludes with the authority approval of the Plan for
Development and Operation (PDO).