A series of case studies have been performed for both offshore and onshore projects, focusing on instrumentation and automation portions as pertaining to corporate Intelligent Field Instrumentation (IFI) programs. In green field and brown field projects alike, instrumentation and automation has become a de-facto standard of design and operation. As a matter of form, such projects are justified based on reliability and efficiency gains. Project cost for instrumentation and automation can be significant based on a variety of factors such as complexity, uptime requirements, field topology and extent, infrastructure constraints, redundancy, and other IFI constraints.
In reviewing several such implementations we have encountered instances of cost overruns, often driven by late-emerging requirements, requirement changes, and scope creep. In some instances we discovered cost escalation driven by evolving technology, as "new and improved" products have been rapidly entering the market. In green field cases we found cost overruns driven mainly by changes in field development plans, revised well plans and corresponding production tie-ins. In brown field cases, on the other hand, we observed frequent instances of hidden costs related to process redesign, personnel changes, and training required for new monitoring, control, and operational supervision.
In an uncertain market where oil and gas prices have seen extreme swings, all project costs are monitored closely, and any project cost overruns are viewed in a harsh light. In our look-back we note several observations that provide guidance in terms of estimating, budgeting, and contingency planning for instrumentation and automation. A key finding pertains to organizational culture, for which executive leadership must champion the strategic value of IFI programs.
In summary, the real value of IFI programs lies in the operational reliability and efficiency gains through automation, which in turn supports reduced personnel exposure, early warning, safer operations, and disaster avoidance. In light of a strong safety culture, therefore, instrumentation and automation project costs are progressively being regarded as a cost of doing business.
This gas asset has been producing from complex layered conventional reservoirs for close to 50 years. Production comes from three principal formations, and the gas quality has been very high, close to 99% pure methane. The field production peaked at a rate of over 300 Mmcf per day in the early 1980's, and then proceeded to decline very rapidly through the 1990's to about 25 Mmcf per day. At that time the operating company undertook some measures to arrest production decline by means of infill drilling and stimulation, and managed to reverse the trend and increase production to over 75 Mmcf per day by the early 2000's. At that time favorable gas prices supported investment decision for automation equipment that targeted personnel safety and operational efficiency.
