Like most engineering systems, fluid flow systems such as Oil & Gas production systems are defined by a large number of design parameters. The engineer’s job is to determine which set of parameters is the best.

This can be achieved through optimisation where important design variables are varied to find values which maximise the value of the development. The value will often depend on a variety of value measures which may include Net Present Value, Internal Rate of Return or Profitability Index. In addition, the optimisation must also take account of constraints and technical feasibility issues.

For example, when delivering fluids from A to B through a pipeline system where the overall flow rate is defined (perhaps through a sales contract), it is important to establish the optimal balance between pipeline size and pumping costs. As the pipeline size is increased, the pumping costs are reduced meaning that there is a trade-off to be made between the capital costs of the pipeline and the capital/operating costs of the pumps. Systems such as this are commonplace in gas transmissions systems where intermediate compressor stations are used for maintaining the gas supply pressure. In this instance the question of optimisation reduces to the minimisation of the system Lifecycle Costs.

However, for upstream Oil & Gas developments, the flow rate is usually not defined and the optimisation now becomes a trade-off between incremental revenue and incremental capital expenditure (CAPEX). Traditionally ‘optimisation’ has relied on heuristics and engineering experience. However, this often leads to cost reductions or “CAPEX minimisation” which can produce sub-optimal solutions. In reality, optimisation of upstream Oil & Gas production systems needs to balance the capital costs against the revenues generated through production.

Using the latest in Integrated Reservoir Modelling techniques, FEESA can study the impact of important design decisions (such as tubing sizes, number of wells, pipeline route/size or artificial lift methods) on the production through field life and can relate this to the true worth of the project or Net Present Value (NPV).

To illustrate, we provide a few case studies where FEESA staff have carried such optimisations, providing real value back to the client:

  Long Distance Gas-Condensate Pipeline Optimisation (PDF 192K)
        An Optimisation of diameter fro a long gas condesate popeline offshore Europe, with fixed contract quatities.

  Optimisation of Tie-Back to Existing Facilities (PDF 115K)
        Analysis of various drillilng and pipeline router options for a small development with a constrained budget.

  Optimisation of Extension to Existing Subsea System (PDF 119K)
        Evaluation of planned extension to production system including pipeline size, gaslift injection and insulation assessments.

If you would like to know how FEESA can help you optimise your design: Contact us at info@feesa.net