When considering the potential for developing marginal fields, the high cost associated with conventional production facilities becomes a major consideration for financial viability.

Conventional oil and gas production facilities are very costly and time consuming to fabricate. Since oil production cannot begin without permanent production facilities in place, production revenue is often delayed while waiting for these facilities to be completed.

Basically, conventional oil and gas production facilities involve a production/test manifold, gas/oil separation system, storage tank, pumping system, and auxiliary systems (e.g., chemical injection, dehydration system, etc.).

This paper presents an alternative to conventional oil and gas production facilities. The alternative integrates these functions into one system. Based on fluid capacity requirements, the subsurface integrated production system (SIPS) concept can be configured for single (SIPS-S) or multiple (SIPS-M) installations. The dimensions of SIPS applications take into account sufficient volume for the storage of produced fluids and offer extended residence time for natural separation of wellbore fluids.

According to the required separation capacity, the wellbore fluids may be separated in the SIPS units by gravity or separation may be enhanced by the use of mechanical separating devices.

This concept includes the use of at least one electrical submersible pump (ESP) for moving the stored liquid from the collection well to a remote location, completing a basic SIPS. The separated gas is conveyed from the SIPS to the required end user.

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