Developing A Model To Suit Life Cycle Costing Analysis For Assets In The Oil and Gas Industry

2004 ◽  
Author(s):  
Suparatchai Vorarat ◽  
Assem Al-Hajj
Keyword(s):  
Life Cycle ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Life Cycle Costing ◽  
Gas Industry ◽  
Costing Analysis

scholarly journals Stochastic Simplex Approximate Gradient for Robust Life-Cycle Production Optimization: Applied to Brugge Field

2019 ◽  
Vol 141 (9) ◽  
Author(s):  
Bailian Chen ◽  
Jianchun Xu
Keyword(s):  
Life Cycle ◽  
Net Present Value ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Optimization Techniques ◽  
Production Optimization ◽  
Operating Conditions ◽  
Optimization Under Uncertainty ◽  
Theoretical Argument ◽  
Gas Industry

In oil and gas industry, production optimization is a viable technique to maximize the recovery or the net present value (NPV). Robust optimization is one type of production optimization techniques where the geological uncertainty of reservoir is considered. When well operating conditions, e.g., well flow rates settings of inflow control valves and bottom-hole pressures, are the optimization variables, ensemble-based optimization (EnOpt) is the most popular ensemble-based algorithm for the robust life-cycle production optimization. Recently, a superior algorithm, stochastic simplex approximate gradient (StoSAG), was proposed. Fonseca and co-workers (2016, A Stochastic Simplex Approximate Gradient (StoSAG) for Optimization Under Uncertainty, Int. J. Numer. Methods Eng., 109(13), pp. 1756–1776) provided a theoretical argument on the superiority of StoSAG over EnOpt. However, it has not drawn significant attention in the reservoir optimization community. The purpose of this study is to provide a refined theoretical discussion on why StoSAG is generally superior to EnOpt and to provide a reasonable example (Brugge field) where StoSAG generates estimates of optimal well operating conditions that give a life-cycle NPV significantly higher than the NPV obtained from EnOpt.

scholarly journals Theoretical and practical aspects of assessment of innovative activity in oil and gas enterprises

2020 ◽  
Vol 13 (4) ◽  
pp. 531-540
Author(s):  
M. V. Rybin ◽  
D. S. Lobov
Keyword(s):  
Life Cycle ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Innovative Activity ◽  
Gas Industry ◽  
The Innovative Management ◽  
And Performance ◽  
Key Indicators ◽  
Oil And Gas Companies ◽  
Oil And Gas Enterprises

Analysis of theoretical and practical aspects of assessment of innovative activity at national and foreign oil and gas enterprises revealed the necessity of improvement of the existing tools which include the lists of key indicators of efficiency and performance applied within the innovative development programs of the Russian companies. Thereby the authors analyzed national and foreign research paying the most serious attention to theoretical aspects of innovative activity assessment. Among them of greatest interest is the complex approach to application of metrics in scientific and technical development of a company. The authors have also studied the conceptual apparatus and the main terms for the problems under consideration. As a result, the research confirmed the idea that the practice of applying the lists of key indicators of innovative activity in oil and gas industry does not coincide with the results of academic works and the innovative management theory: the current methods are primarily aimed at assessment of the results of innovative activity, several stages of the life cycle of creation of innovation are not subject to monitoring. At the same time lists of key indicators of innovative activity make it possible for the company’s management to estimate economic and resource effects of innovations which corresponds to strategic interests of oil and gas companies.Lists of indicators of efficiency and performance of innovative activity can be improved by means of national and foreign research. It is important to involve more metrics which make it possible to monitor all the life cycle of creation and implementation of innovative solutions.The results of the study can be used as the basis for further research on improvement and development of the lists of key indicators of innovative activity of oil and gas companies.

Methodology to Obtain the Life Cycle Mooring Loads on a Semisubmersible Wind Platform

2014 ◽  
Author(s):  
Raúl Guanche ◽  
Lucía Meneses ◽  
Javier Sarmiento ◽  
César Vidal ◽  
Íñigo Losada
Keyword(s):  
Life Cycle ◽  
Numerical Model ◽  
Data Base ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Offshore Wind ◽  
Mooring System ◽  
Gas Industry ◽  
Wave Basin ◽  
The Moment

Nowadays there are few methodologies related with the design of mooring systems for floating offshore wind platforms. The ones used until the moment are inherited from the oil and gas industry. Because of that, mooring loads may be incorrectly estimated. This study presents a validated methodology in order to estimate the loads of the moorings of offshore floating platforms along the life cycle of the structure. The methodology is based on an extensive laboratory test data base carried out in a wave basin of the University of Cantabria. The proposed methodology has been applied to a floating semisubmersible platform (similar to the one in Agucadoira by Principle Power). The methodology is composed by a few steps. The first step consist on the selection of the most representative sea states of a long term met-ocean data base through a selection technique named MDA (Maximum dissimilitude algorithm). Afterwards, mooring system loads and platform motion are numerically simulated. SESAM (DNV) numerical model has been used in this particular application. SESAM numerical model was previously calibrated based on the laboratory tests. Finally, based on a multidimensional interpolation technique named Radial Basis Function life cycle mooring system loads were reconstructed. A sensitivity analysis of the methodology were carried out. Based on it, it can be concluded that selecting 1000 sea states with the MaxDiss technique, life cycle mooring loads can be accurately predicted.

scholarly journals On Disaster Risk Reduction in Norwegian Oil and Gas Industry Through Life-Cycle Perspective

2019 ◽  
Author(s):  
Michaela Ibrion ◽  
Nicola Paltrinieri ◽  
Amir R. Nejad
Keyword(s):  
Life Cycle ◽  
Risk Reduction ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Learning And Development ◽  
Gas Industry ◽  
Life Cycle Perspective ◽  
Offshore Field ◽  
Perspective Analysis ◽  
Reduction Of Uncertainty

Abstract This paper presents the risk reduction in Norwegian oil & gas industry over the time (1975–2016) through a life cycle perspective analysis with the aim to identify the critical stage(s) both in terms of accident occurrence and cause of the accident. Fifteen accidents, major accidents and disasters for example Ecofisk 2/4 Alpha 1975, Alexander L. Kielland 1980, Songa Endurance 2016 were studied. Cases from outside of the Norwegian offshore field — the Piper Alpha 1988, the Bourbon Dolphin 2007, and the Deep Water Horizon 2010 — were also considered as comparison. For each accident and through the life cycle analysis, the occurrence stage of the accident and its main technical causes were identified and compared. It was found that a high risk is concentrated in the Operation (In-Service) stage and associated Marine Operations. Furthermore, it was observed that a high number of accidents in oil and gas industry are associated with mobile structures. All the investigated accidents have acted as powerful reminders to the oil and gas industry that a continuous improvement of risk management and reduction of uncertainty are of paramount importance in order to ensure safe operations and risk reduction for accidents, major accidents and disasters. However, a reactive learning from major accidents and disasters needs to be supported by a proactive learning and development of a dynamic risk culture in the oil and gas industry.

Cost Optimization in Mega Oil & Gas Projects

2021 ◽  
Author(s):  
Mohamed Ali Awwad ◽  
Ahmed Marei Al Radhi ◽  
Manoj Kumar Panigrahy ◽  
Suraj Kumar Gopal
Keyword(s):  
Life Cycle ◽  
Project Management ◽  
Cost Reduction ◽  
Oil And Gas ◽  
Life Experience ◽  
Continuous Process ◽  
Cost Optimization ◽  
Real Life ◽  
Oil And Gas Industry ◽  
Gas Industry

Abstract Cost optimization is a continuous process in any business to drive cost reduction, while maximizing business value. Currently, cost reduction is being adopted by Oil & Gas firms as a core strategy, in order to maximize the profit margin. With global economies facing recession and wide fluctuations in energy demands, it seems low costs is becoming the safety valve for Oil & Gas companies. The oil and gas industry is under tremendous revenue and costs pressures. The indication is that globally, the oil and gas industry has experienced a huge drop in revenue in recent past. Some exploration and production oil firms have either halted or slowed down their production operations. Companies that manage their costs effectively will gain a competitive advantage. The oil market has less maneuverability with oil cartels determining the international price of oil. Project Costs are the major cost drivers of the Life Cycle costing & so Cost optimization of all mega Oil & Gas Projects became necessitated. Mega Oil & Gas projects, especially at ADNOC Offshore locations, are complex, labor-intensive and located inside Arabian Sea. These workforces are mainly from south Asian countries and so offshore sites are often subjected to the constraints of insufficient labor. These projects face multiple challenges in project management like severe weather, geographical conditions, insufficient work spaces etc. in addition to labor forces. Cost reductions are accomplished through optimization of its strong and robust project management organization, management of uncertainties, high quality engineering, and implementation of value engineering during engineering, procurement, construction and commissioning (EPCC) phases and effective management of changes along with key Stakeholders expectations throughout the project life cycle. This paper is based on the authors’ real life experience in implementation of many complex and mega upstream Oil & Gas projects with ADNOC Offshore who is currently leading multiple projects at DAS & Zirku islands. The most workable methods in this regard are listed here below.

Automated Creation of the Pipeline Digital Twin During Construction: Improvement to Construction Quality and Pipeline Integrity

2018 ◽  
Author(s):  
Joseph Hlady ◽  
Matt Glanzer ◽  
Lance Fugate
Keyword(s):  
Life Cycle ◽  
Net Present Value ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Life Cycle Management ◽  
Field Trials ◽  
Gas Industry ◽  
Digital Twin ◽  
Sensor Platforms ◽  
Digital Formats

The concept of the digital twin dates all the way back to the 1950’s when NASA, GE and other industrial manufacturers started creating abstract digital models of equipment to model their performance in simulations and maintain a record of the asset throughout its life span [1]. Over the years more and more industries have adopted the digital twin paradigm to improve traceability, maintenance, and analytics allowing for improved sustainment of the asset or equipment while reducing various risks identified during life cycle management. It has been found that collectively, the digital twin concept improves the overall net present value of an asset. The oil and gas industry has slowly been adopting the digital twin paradigm of asset life cycle management over the past two decades with the focus on facilities. Recently, field trials were completed to test and evaluate workflows and sensor platforms for the creation of a digital twin for pipelines. The trials resulted in highly accurate pipeline centerlines, weld locations, Depth to Cover (DoC) and ditch geometry capture in digital formats. This paper describes the methodologies used, and the results of an actual construction field trial with a comparison to traditional data collection methods for these attributes. The value of creating a pipeline digital twin during pipeline construction in near-real-time is discussed with an emphasis on the potential benefits to life cycle management and pipeline integrity.

scholarly journals Selection of the most suitable life extension strategy for ageing offshore assets using a life-cycle cost-benefit analysis approach

2018 ◽  
Vol 24 (3) ◽  
pp. 311-330 ◽  
Author(s):  
Isaac Animah ◽  
Mahmood Shafiee ◽  
Nigel Simms ◽  
John Ahmet Erkoyuncu ◽  
Jhareswar Maiti
Keyword(s):  
Life Cycle ◽  
Life Cycle Cost ◽  
Oil And Gas ◽  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Oil And Gas Industry ◽  
Life Extension ◽  
Benefit Analysis ◽  
Gas Industry ◽  
Content Type

Purpose A substantial number of production assets in the offshore oil and gas industry are facing operation beyond their anticipated design life, thus necessitating a service life extension program in the future. Selection of the most suitable strategy among a wide range of potential options to extend the lifetime of equipment (e.g. re-using, reconditioning, remanufacturing, refurbishing and adding on safety/process control measures) remains a challenging task that involves several technical, economic and organizational complexities. In order to tackle this challenge, it is crucial to develop analytical tools and methods capable of evaluating and prioritizing end-of-life strategies with respect to their associated costs and quantifiable benefits. The paper aims to discuss these issues. Design/methodology/approach This paper presents a life-cycle cost-benefit analysis approach to identify the most suitable life extension strategy for ageing offshore assets by taking into account all the capital, installation, operational, maintenance and risk expenditures during the extended phase of operation. The potential of the proposed methodology is demonstrated through a case study involving a three-phase separator vessel which was constructed in the mid-1970s. Findings The results from the application case indicate that the capital expenditure (CapEx) accounts for the largest portion of life cycle cost for the replacement strategy, while risk expenditure (RiskEx) is the major contributor to costs associated with life extension. A sensitivity analysis is also conducted to identify factors having the greatest impact on the optimum life extension solution, including oil price, production rate and money interest rate. Practical implications In the past, the decisions about life extension or replacement of in-service equipment were often made in a qualitative way based on experience and judgment of engineers and inspectors. This study presents a “quantitative” framework to evaluate and compare the costs, benefits and risks associated with life extension strategies and subsequently to select the best strategy based on benefit/cost ratios. Originality/value To the best of authors’ knowledge, no studies before have applied life cycle assessment and cost-benefit analysis methods to prioritize the potential life extension strategies in the oil and gas industry sector. The proposed approach not only assists decision makers in selecting the most suitable life extension strategy but also helps duty holders reduce the costs corresponding to life extension execution.

The Application of Thermal Spraying Technology in the Oil and Gas Industry

1998 ◽  
Author(s):  
J.C. Price
Keyword(s):  
Life Cycle ◽  
Oil And Gas ◽  
Thermal Spraying ◽  
Steel Structures ◽  
Oil And Gas Industry ◽  
Pressure Vessels ◽  
Gas Production ◽  
Life Cycle Costs ◽  
Gas Industry ◽  
Thermally Sprayed

Abstract The last decade has seen a rapid increase in the use of Thermally Sprayed Coatings for Oil and Gas production applications. In particular, since 1982 the Offshore Oil and Gas Industry has considered Thermally Sprayed Aluminum (TSA) for protection of steel structures in the splash zone and other areas in the marine environment. Experience to date has indicated that when TSA is properly applied with a specific sealer system a service life in excess of 30 years with zero maintenance is possible. This produces a corresponding reduction in life cycle costs. Other coating systems such as Nickel - based alloys, Ceramics and Thermoplastics are also finding useful applications. This paper discusses recent advances in thermal spraying technology and current and future applications in the Oil and Gas Industry. This is illustrated with reference to several projects and details on life cycle costs. In particular, thermal spraying of pressure vessels, risers, pipelines and structural components are detailed.

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