Optimization of Offshore Field Development to Minimize Investment

Summary Offshore oil and gas development is identified with high investment. Considerable incentive therefore exists to reduce investment and to improve field profitability. A computational method has been developed to optimize field development and to minimize investment. Investment can be reduced through an optimal choice and arrangement of production facilities. The selection, size, and location of major facilities—such as platforms, templates, or subsea manifolds—heavily affect capital investment. The allocation of field wells to these facilities affects drilling and completion costs. An extremely large number of feasible development options exist that may result in a wide range of economic outcomes. Choosing the option that minimizes investment can be a major computational problem. The solution of extremely large economic problems of this nature has not been reported previously. An integer mathematical programming computational tool, using a method called "zero-one implicit enumeration," was developed for modeling and solving this problem. This technique allows for efficient probletn solution on a computer. A model of an example field development was formulated. This model contains a mathematical function representing the investment to be minimized and includes design restrictions inherent to the development project. The model contained nearly 10190 combinations of development options. The application of a branch-and-bound algorithm allowed selection of an optimum development in a relatively short time on a computer.