"The main objective of stage - identification of alternative options for the development of the project, choice the basic variant and working on the optimization of the basic technical, technological and economic performance."
At this stage, the main focus of the project team aims to elaborate the best scenario of 2-3 alternatives. Under the alternative is understood not so much completely different technology as elaboration of alternative options in case the internal heterogeneity of the project will be significant.
In our own experience we can say that at this stage all the hypotheses and assumptions used in the previous stage, you need to confirm by the experimental work (pilot works). It is at this stage dissapear hopes of high economic indicators (NPV, IRR), it is here sometimes occur non-trivial solutions which in the future will form the basis of the base case. Yes, these options will not have a super efficient economics but they will give a good (industry average) profit at the proper sequence of actions. Exactly so in common practice of oil and gas business were introdiced horizontal wells. Exactly so began to do so massively multi-stage hydraulic fracturing, although all of these technologies have been described in the second half of the 20th century.
It is important to digress from the main narration and noted that the Pilot project pilot projects before and now have a completely different meaning. Here is why. So if you have previously called Pilot project something at the level compulsory "laboratory" experiments to test new technologies in the real conditions. Simply put, profile scientific design institutes, of which the Soviet Union had a large number (it was not that bad as some may seem) engaged in all sorts of inventions. After the adoption of their at the level of academic councils as having a place to be effective it becomes necessary to test the identified regularities in the real world of oil or gas field. Next, choose the organization that ... had to test the proposed innovation and give their opinion. Herein lies the key contradiction - the organization is not "ordered" technology, technology imposed. Now the opposite is true - we got up to a market economy and now producing companies want to use new technology _ to optimize their costs. But by this time the scientific and industrial schools of the USSR quit the stage for no relevance. Remained in some extent research centers and institutes which are engaged in a large application or basic science, and businesses use achievements from Soviet specialized institutes or, in the last decade it has become very common, buying super expensive technologies in the West (Schlumberger, Baker-Hughes, Whetherford ...).
Admittedly, the last 5-7 years the situation has changed and some survivors research centers engaged in research for new producers.
So, in today's ODA (and we have to say, it is right) understanding within the project - it's not how many new technologies, and in the first place - a confirmation assumptions that the project team laid on the stage "Appraise". Before scale something i.e. do massive and capital-intensive, need to understand how works this technology or method in terms of your project. Let us not forget that we are dealing with geology, which, as many researchers have noticed (thanks to seismic 3D / 4D, modern methods of logging, core analysis), is never repeated, even on adjacent fields.
Returning to the subject of stage "Select", as a rule, the completion of the stage marks the completion of the pilot work, by results of which we justify the optimal development system , conceptual design (Feasibility Study), the implementation of the necessary engineering studies and research "as the underground, as well as on surface".
"Select" - a very interesting, important and eventful stage, which resulted in the adoption of the main variant of development of the project - the concept of development, field facilities construction and external transport. The transition to the next stage is determined by FID (Final Investment Decision) - the final investment decision, within the framework of which the main parameters of the project financing approved. Sometimes FID can be shifted to the next stage "Define" in connection with the necessity the completion of the removal / reduction of key uncertainties of the project.
In summary, at "Select" stage we had not only "paper design", mainly on analogy method and using statistical laws, but also checked the key assumptions in practice. The costs of "Select" stage is a multiple higher than those we spent on the "Appraise / Preappraise" stages , but the result is closer to the conditions of the real project. Now, if the updated result is supporting a given economic framework, you can proceed to detailed design and a step closer to the completion of the project and the start of full-scale production of hydrocarbons.
The figure below shows the basic objectives and principles of work of the project team on the stages of "Appraise" and "Select" presented.
The main objectives and principles of work of the project team
The project at this stage started and gaining momentum. All authority transferred to the subsoil user. The project team has completed its work....more info
"The main objective of the stage - preparation of the field to be put into the production." At this stage, in turn, is the gradual transfer of functions and responsibilities of the project from the project team to the subsoil user. Also performed detailed design (stage "D"), is preparing detailed documentation of the approved baseline scenario, ordered equipment with long term manufacturing, in other words - implemented a detailed phased plan input field into the production, formation of the organizational structure of the subsoil user company. The result of this ...more info
In conclusion, the narrative of the cycles (stages) of the project is necessary to emphasize the fact that the effectiveness of the implemented project we will know not soon. Sometimes it takes a few years (3-5) before appear the main drawback of the design (over or lack of capacity of _ objects of gathering system, treatment and transportation of produced products, underestimation complicating technological factors - the content of mechanical impurities, the rheological properties of the produced fluids, dynamics of water production / water cut and associate...more info
Sometimes this stage is preceded by stage "Preappraise", it is called initiation. "The main objective of both stages is to find at least one investment-attractive option of the project, it is also called the most probable (P50) or the base case". In addition to the base case are calculated optimistic (P10) and pessimistic (P90) scenarios that allow us to estimate the stability of the base case to the realization of key uncertainties in the development concept of such uncertainty are most often could be original oil in place, recoverable r...more info
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