Abstract
A study was initiated to evaluate the benefit of low capital cost and low maintenance cost technologies to rehabilitate pipelines in marginal fields to keep them running profitably and with an attractive return on investment (and with no sacrifice to safety and environmental risks). The challenge is to have a new technology with lower "Total" cost from design, procurement, installation, operation and maintenance during its life time.
In the appraise stage, several technology options were considered to select the best option to maintain the pipeline; API 17J Flexible Pipe with specific design for shallow water is the alternative option compared to traditional rigid carbon steel pipeline. The assessment process started with pipeline technology update, followed by technical compatibility/ acceptance, commercially available pipe sizing, installation total cost comparison, installation schedule, and operation-maintenance. The decision will be taken by decision tree using Expected Value Decision Analysis. The expected value of each option included CAPEX, OPEX, NPV, and all quantified aspects and risk.
From the assessment it was conluded that flexibles pipe has more advantages compare to rigid pipes in term of CAPEX, OPEX, resistance to corrosive fluid, ease of installation, ease of repair and maintenance, and ease of decommissioning. The capital cost for 6" F2-FP Flexible pipe is US$ 8.5 million with NPV US$ 37.4 million and IRR 31.7%. The expected monetary value of 6" flexible pipe in decision tree analysis is US$ 27.5 million, the highest among other two options. The flexible pipe is feasible to be applied in F2-FP pipeline replacement project.
