Abstract
The Don Area is located in the Northern North Sea. It comprises the West Don and Don Southwest (Don SW) oil fields, both of which were fallow until 2006. Initial development plans had anticipated a subsea tieback to a nearby host - a relatively slow, costly and potentially complex approach.
Petrofac Energy Developments, who became ‘Operator’ in 2006, conducted an in-depth review of the Don Area, concluding that the refurbishment of an existing Floating Production Facility (FPF) - the Northern Producer - would offer a more cost effective solution by reducing capex and delivering first oil earlier than competing options. Using the FPF would also cut development time, minimize the degree of offshore work required, keep associated costs down, safeguard jobs and radically improve the economic case for the project.
First oil was achieved in April 2009, less than a year after the field development programme (FDP) was formally approved by the UK government's Department for Business Enterprise & Regulatory Reform (BERR).
This paper addresses the key factors that helped decide between competing development concepts. It outlines the field facilities and general approach to the development work along with modifications to the production unit, offtake options and collective benefits. It thereby provides a context in which we can examine the potential for similar development opportunities in the future.
Management, contract strategies and organisational factors played a critical role in the ability of the Operator to deliver this project in record time. In utilising its internal service group expertise, knowledge and resources, the Operator streamlined the project structure and limited reliance on external suppliers. This, in turn, significantly reduced development time and expenditure, optimising oil recovery and returns on investment.
This paper looks at how the application of organisational adaptability, technical knowledge and regional experience helps to achieve a common objective to transform marginal fallow fields into attractive commercial propositions.