Abstract

Some Shell has developed a breakthrough offshore development solution, called Floating Oil and Natural Gas (FONG) which integrates Floating Production, Storage and Offloading (FPSO) technology with advanced deepwater and gas technologies for delivery of both oil and Liquified Natural Gas (LNG) products to market. FONG consists of a floating production unit with a fully rotating external turret, complete with on-board processing facilities, utilities, storage and offloading for oil and LNG.

Introduction

A typical FONG configuration enables development of a single field or several smaller oil accumulations, clustered as shown in Figure 1. Through an innovative gas processing system, FONG is able to accommodate a wide range of Gas/Oil Ratios (GOR) which could dramatically expand the development scope of oil fields with appreciable amounts of associated gas. In this way, an associated gas problem can be transformed into gas profits with up to 30% improvement in Net Present Value (NPV) across a broad spectrum of oil field sizes.

As a consequence, the economic oil reserves threshold is lowered, allowing smaller fields to be developed economically.

Implementing a FONG development offers benefits to a range of stakeholders. Environmental impact is minimized by eliminating the need to continuously flare gas, and without re-injection in a producing field, long-term reservoir management can be enhanced. FONG can provide the stimulus for the creation of new in-country support opportunities.

Exhaustive engineering studies conducted throughout 2000/2001 demonstrated both technical feasibility and high levels of safety compliance. FONG is ready for implementation and project deployment studies commenced early 2002.

Shell is positioned to leverage its proven track record in both global LNG operations and major deepwater developments to deliver FONG.

This paper highlights the business drivers that support the FONG case for action and describes the technology innovations applied to deliver a safe, reliable and economically viable stand-alone offshore field development solution for delivery of both oil and gas revenue streams.

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FONG: FLOATING OIL AND NATURAL GAS CONVERGING PROVEN TECHNOLOGIES TO INNOVATIVELY DELIVER NEW ECONOMIC DEVELOPMENT OPPORTUNITIES

Figure 1: Typical FONG Cluster Development Case for Action FONG unlocks Oil & Gas Industry Growth Opportunities The world's oil and gas industry is facing significant challenges in the offshore hydrocarbon basins. In the last 5 years, several "hub" class fields (> 500 million barrels) were discovered in deep water in West Africa (Bonga, Akpo, Girassol, Dahlia, etc.). These field

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