New Operational Philosophies for Marginal Field Developments Driving Marginal Platform Business Performance Through Remote Control, Monitoring and Automation

26th-27th February 2003, The Ardoe House Hotel, Aberdeen

Paper Title – “JUSTIFYING THE BUSINESS CASE FOR TECHNOLOGY INVESTMENT AND OPPERATIONAL CHANGE THROUGH COMBINED ENGINEERING AND ECONOMIC ANALYSIS”

ABSTRACT

A business case will only succeed if it can demonstrate that the risks involved have been properly identified, assessed and compared in quantitative terms. The risks to consider for remote strategies include the reliability issues of remotely controlled assets, and the effect of unmanned operation on the consequences of failures during production.

Employing the most suitable and effective system design for the well and for the field is a critical aspect of the long-term asset production. Failures during production can have major economic impact on the revenue, and therefore on the business case. You need to be able to evaluate that risk. You also need to be able to identify and assess the best mitigating measures to bring those risks, in Dollar terms, to an acceptable level. This session will demonstrate how to;

· Undertake an engineering-based analysis of competing options for a smart well / smart field / remote operations system and its constituent elements
· Construct an economic model of the consequences of failure
· Combine the two to give a quantitative evaluation of the risks, in Dollar terms
· Compare the risk profiles of different system options, again in Dollar terms
· Use the results to identify the critical risks
· Formulate a risk-reduction plan that will reduce those critical risks
· Check that the risk-reduction plan is correctly targeted

John Hother, Managing Director, Proneta

See programme brochure for further details of the conference.