Innovative technical advances are now enabling operators tornconsider development of fields previously identified asrnuneconomic or marginal. However such projects can still failrnto progress since development using a traditional engineering,rnprocurement and construct (EPC) approach does not alwaysrnmeet the required targets for economics, risk and timescalernnecessary for approval to proceed.rnIn this paper the author will detail how the use of fit-forpurposernproduction facilities mobilised on a leased, operatedrnand maintained basis now offers an alternative approach to thernprovision of a field production solution. This approachrnenables operators to limit their initial set-up and infrastructurerncosts at the front end of a project, to gather additionalrninformation on the performance and productivity of their wellsrnand to make a more informed decision on the future of thernfield. As a result, operators can keep both their project andrncapital risk exposure to a minimum.rnBy achieving this production on a fast-track basis, revenuernfrom the sale of produced well fluids is generated early.rnCombined with the low initial cost and lower capital risk ofrnthis approach, the economic viability of progressing an asset tornfull scale production is further enhanced. Based on thisrnsequential investment model, a real option analysis of thernoverall field development plan can therefore make a projectrnviable, even if the overall project net present value (NPV)rnappears marginal using more traditional methods.rnIn conclusion the paper will present technical solutions forrnthe various field evaluation and production stages of a fullrnfield development utilising the leased facility approach,rnassociated commercial models and case studies for recentlyrncompleted projects.
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