SHARED INFRASTRUCTURE: A COST-EFFECTIVE DEVELOPMENT STRATEGY FOR SMALLER FIELDS OFFSHORE AUSTRALIA?

Abstract

B.F. RonaldsFuture oil discoveries offshore Australia are unlikely to be large fields that can support the development of a one-off self-sufficient facility. Fixed platforms are generally only feasible in shallow water when the water depth (in metres) to well count ratio d/w < 20. Smaller fields around the world are commonly produced with the aid of infrastructure shared with other fields and operators or supplied by contractors. This offshore infrastructure is likely to include both the mobile rig chartered to drill the development wells, and the processing and export facility; the latter may be either a mobile production unit at the field site (commonly leased) or a remote host platform (commonly operated by a third party).

The construction and ongoing re-use of a generic FPSO suited to Australasian field conditions might be of considerable assistance in monetising small oil fields in deeper water. Similarly, aptly located, designed and operated gas hubs could open up large areas for satellite gas development long into the future, aided by new technology to enable ultra-long tiebacks. Both approaches suggest the benefit of overlaying a regional perspective on the oil companies’ field-specific development philosophy.