Economic Analysis of Innovative Approaches to Marginal Field Development

This paper focus on economic analysis and evaluation on possible development concepts of a small offshore field with recoverable reserve of 45million bbl, situated in shallow water depth of about 100m, and remote from existing or scheduled installation thereby rendering it not feasible as a candidate for satellite development. Short listed concepts considered innovative were evaluated in other to choose the option that maximized NPV. They were scaled through other profitability criteria based on results obtained from using cash flow economic simulation tools. The analysis showed that not all non conventional approaches are suitable for marginal field development. These concepts are considered innovative because they seek to integrate a combination of concepts anchored on proven technology while adapting it to produce fields that cannot be produced using conventional techniques because of their low marginal return. In the cause of this study, Jack-Up Production Platform on a Concrete Sub-sea Storage tank when used as a development concept had the greatest return on investment. In the future, the adoption of such systems will make possible the development of marginal fields discovered, but could not be developed due to their perceived low marginal return