Value Creation can be achieved through FDP optimisation initiative for offshore fields that have been impacted by recent slump in activities and investments in the Oil and Gas industry. Each stage of the FDP process can be reviewed and respective value and cost target be revised. It is to ensure that process for the opportunity still carry business value, and aligned with business objectives at current industry outlook. Alongside the opportunity maturation process, there should also be emphasis on value assurance to maximise value and chance of success.
Offshore development of a green field gas development in Peninsular Malaysia was a successful story of Integration and engagement of various functions and disciplines throughout the FDP optimisation efforts, by keeping the FDP stages as "live" cycles. It let the optimisation process to encompass all activity spectrum from subsurface to surface, and warranted the project to be fully assessed from uncertainties and risk management to optimising the value of the project.
Early determination and understanding of the objectives and area of focus for maximum impact on value creation initiatives were chosen to be the road map. Moreover, collaboration between the teams to revise drilling, completion and the depletion strategies with capital cost phasing were identified to be key areas for a successful development and cost optimisation of the project. Drilling and completion strategies for the wells selected in a manner that they focused on most productive zones at the beginning, with development of the shallower reservoirs by workover and intervention activities upon depletion and pressure equalisation with the lower zones. The strategy also led the capital cost to be classified as operational as future expense without compromising the reserve to be developed.
The result of the work led to a significant cost saving which in turn allowed execution of the project from preservation to drilling stage in almost 6 months.
This paper will highlight the initiatives and activities that made the project to be successfully move from preservation to execution mode.