In this article, we look at the complex process of offshore field development, including understanding how an offshore field development plan is created, the challenges of offshore field development, and how Clarksons’ range of specialist turnkey solutions can help with offshore field development.
What is offshore field development?
Offshore field development refers to the extraction of oil and gas from below the ocean bed. There are several stages to the offshore development process, including exploration, drilling, the installation of production infrastructure, extraction, and transport.
How is an offshore field development plan created?
An offshore field development plan (FDP) is created to help optimise the development and production of offshore fields. The FDP will outline the stages of planning, exploration, and engineering required to establish a viable offshore site. It will also set out details on a broad range of factors which enable oil and gas producers to make well-informed decisions in regards to each individual project’s development. FDPs cover the full spectrum of activities involved in offshore field development and suggest the best technical solution(s), while also taking into consideration:
- Environmental impact
- Geophysics
- Geology
- Reservoir and production engineering
- Infrastructure
- The design and construction of the well
- Facilities available at the surface
- Economic factors
- Risk assessment
In order to select the best development option, the recommendations made in the FDP will consider the offshore field’s:
- Net present value
- Oil and gas recovery
- Operational flexibility and scalability
- Capital versus operating cost profiles
- Technical risk
- Operational risk
- Financial risk
It is important to note that research shows FDPs are not 100% accurate. It is widely accepted that they have some limitations, namely inaccurate (usually overestimated) field production rate assessments.
What are the challenges of offshore field development?
There are several distinct phases involved in offshore field development, including:
- Exploration
- Reservoir description and characterisation
- Development planning
- Drilling
- Production
- Improved oil recovery
- Enhanced recovery
- Transportation
- Decommissioning
Each of these phases has its own unique, yet nonetheless significant, challenges. Broadly speaking the challenges of offshore field development fall into one of the following categories:
- Reservoir variability in regards to characteristics, fluid properties, and production behaviour can cause uncertainty and make decision-making difficult.
- Environmental concerns, including managing waste and water disposal, carbon emissions, harmful gases released during venting, and noise disruption which can affect the marine habitat.
- Logistical issues, including keeping on top of changing regulations, proper maintenance and equipment storage. This can be a particular challenge for offshore rigs located in deepwater or ultra-deepwater areas as well as for those in harsh arctic locations.
- Technological demands as various elements of offshore field development require cutting-edge technology, such as drilling and emissions reduction.
- Economic challenges can exacerbate the above challenges. For example, periods of low or unstable oil prices may make it harder to secure the necessary investment for offshore field development.
How can Clarksons help with offshore field development?
As we have seen above, offshore field development is a highly complex field which throws up a range of ever-evolving challenges. Those involved in the sector require expert services and solutions to help them succeed in this dynamic industry. Clarksons provides just that, offering turnkey and tailored solutions, including chartering, Sale & Purchase and newbuild transactions.
As the offshore sector’s largest broker, Clarksons has the scope and scale to create bespoke teams to meet the unique needs of each client on a project-by-project basis. Plus, unlike other offshore brokerages, Clarksons’ specialist team only focuses on this sector, meaning they bring an invaluable combination of in-depth market intelligence and a global network of contacts.
