Johan Castberg – The improvement process

Welcome to a lunch&learn arranged by the Production Optimization and Reservoir Management network.

  • Date 13.06.2018
  • Time 13:00
  • Duration 2 hours
  • Participants 7
  • Register by 11.06.2018
Johan Castberg – The improvement process_main_img
Johan Castberg – The improvement process

 

The Johan Castberg field development project located in the Barents Sea, will target oil production from three discoveries; Skrugard, Havis and Drivis.  The drainage strategy is based on horizontal oil producing wells that are pressure supported by produced gas re-injection, produced water re-injection and treated sea water injection. Thirty subsea wells are planned for, whereof 18 horizontal oil producers, 8 water injectors and 4 gas injectors. The wells will be drilled from 10 subsea templates and two satellites, over a five-year period commencing Q4 2019. The wells will be tied-back to a ship- shaped FPSO for processing. The recoverable volume is estimated to be 550 mbbl and production start is planned for Q4 2022.
The process from first discovery to investment decision and PDO  has brought many challenges. An increasing cost level, in combination with an oil price drop in 2014, heavily reduced the commercial value of the initial semi-submersible and pipeline to shore/terminal concept (that also included an extensive well- and subsea scope). The calculated high 80 USD/bbl Break Even price resulted in several postponements of the Concept selection process by the Castberg partners (Eni, Statoil and Petoro) , in search of an economical robust solution. 

The Johan Castberg field development project located in the Barents Sea, will target oil production from three discoveries; Skrugard, Havis and Drivis.  The drainage strategy is based on horizontal oil producing wells that are pressure supported by produced gas re-injection, produced water re-injection and treated sea water injection. Thirty subsea wells are planned for, whereof 18 horizontal oil producers, 8 water injectors and 4 gas injectors. The wells will be drilled from 10 subsea templates and two satellites, over a five-year period commencing Q4 2019. The wells will be tied-back to a ship- shaped FPSO for processing. The recoverable volume is estimated to be 550 mbbl and production start is planned for Q4 2022.
The process from first discovery to investment decision and PDO  has brought many challenges. An increasing cost level, in combination with an oil price drop in 2014, heavily reduced the commercial value of the initial semi-submersible and pipeline to shore/terminal concept (that also included an extensive well- and subsea scope). The calculated high 80 USD/bbl Break Even price resulted in several postponements of the Concept selection process by the Castberg partners (Eni, Statoil and Petoro) , in search of an economical robust solution. 

The improvement process has include several key elements:

  • The main business drivers were updated reflecting the new frame conditions
  • STEP=Statoil Efficiency Programme was introduced
  • The project team agreed on ambitious targets focusing on multidisciplinary improvements
  • Developed a simple standard methodology included criterias for decision making
  • The key to success = collaboration

The presentation will highlight some examples of successful multidisciplinary collaboration of Petek, Drilling&Well and Facility departments. The collaboration has been fundamental in justifying the simplifications and cost reductions, enabling a significant break even reduction from  80 USD/bbls in 2014 to 35 USD/bbls in 2017.

Registration and fees

Participant fees
 
FORCE member
Free
Non-member
NOK 1000,-
University/student
Free

Please find registration box at the top right of the page. 

Important information: 
You can register as a FORCE member and pay "FORCE member" price if you are an employee of a member company.
All FORCE member companies are listed here.

Payment is made online by credit card. Please note that no refunds will be given after you have signed up. If you for any reason can not attend the workshop, you are welcome to send a representative, just inform Tone Helene Mydland as soon as there are changes.

Photo: Øyvind Hagen - Statoil