Subsea processing game changing technology
Posted: 8 September 2003
Subsea processing is poised to grow into an important new business
sector according to a study by energy analysts Douglas-Westwood
and technology specialists OTM Consulting.
Addressing over 200 delegates at the Subsea UK symposium in Aberdeen
today, OTM managing director Chris Dudgeon said, “If operators’
performance expectations are met, then over the next decade global
expenditure on subsea processing could total $1.6 billion”.
“Subsea processing is a true ‘gamechanger’ technology,
in that by separating or pressure-boosting wellfluids on the seabed
it has the potential to massively reduce expenditure on offshore
platforms. The logical extension is that in some situations it may
be possible to remove the requirement for the offshore platform
completely. Subsea processing also presents exciting new opportunities
for enhancing production and recoverable reserves.
“Although the technology was first experimentally deployed
over 30 years ago offshore Abu Dhabi, within the past couple of
years major oil companies have begun to seriously collaborate with
suppliers to develop systems. Examples include the Seafloor Processing
Consortium of BP, ChevronTexaco, ABB and AkerKvaerner, the Shell-Alpha
Thames cooperation and a Petrobras initiative. There seems to be
a more structured, long-term approach now underway rather than the
previous ‘one off’ approaches to the technology.
90 per cent of operators want to install
“The most surprising aspect of our study is a complete reversal
of Operator opinion” said Dudgeon. Only three years ago just
10 per cent of operators interviewed had plans to install subsea processing,
but in our new survey 90 per cent expressed a view that they would like
to install over the next five years.
“There is now a narrower interpretation of the benefits of
subsea processing. Two years ago, it was considered a cure-all for
a wide range of challenges such as deepwater, long tiebacks, restricted
topsides etc. Now, it’s mainly being considered for reducing
platform topsides. Operators have developed a realistic approach
to where they want to use it and this means that suppliers can begin
to make the right sort of equipment. The first generation of subsea
processing concepts are being reinterpreted and developed into new
products, installed subsea pumps are performing well and reliably
and in the last few years there has been a global uptake of subsea
processing.
“Questioned about what has been holding back deployment of
the technology, surveyed operators emphasised “operator mindset”
and perceptions of cost.
Enhancing Production
Keynote speaker Ian Ball, Shell’s subsea systems development
advisor said a key trend he observes in subsea processing is use
of the technology not just to perform discrete tasks, but also to
enhance and accelerate production and reduce overall costs. Subsea
processing, Ball said, “adds global value by enhancing production
through reduced wellhead back pressure and enabling ultra deepwater
production and longer subsea offsets.”
Ball cited the Ormen Lange field, which is based on a 140 km subsea-to-land
scheme as one where the second phase of development could use subsea
compression if the technology were available.
A $1.6 billion Market
“Under our base-case scenario, we forecast that global Capex
in the subsea processing sector over the 10-year period to 2012
will amount to just under $1.6 billion and involve a total of 86
seabed boosting systems and 28 separation systems” said Douglas-Westwood
market analyst Steve Robertson. “Our high and low oil price
scenarios result in Capex projections for the sector over the same
10-year period of $3.5 billion and $552 million respectively.”
“We expect Western Europe to be the leading regional market
with a mid-range projected Capex of $480 million over the 2003-2012
period, followed by Africa ($320 million), Latin America ($272 million)
and North America ($224 million). Together these four regions are
expected to account for 80 per cent of the forecast global Capex
in our mid-range estimate.
The Subsea Processing Gamechanger Report
The Subsea Processing Gamechanger Report is the first in a new series
of reports that will examine the commercial prospects for technologies
that show early potential to make a major impact on industries.
The report describes what is driving the interest in subsea processing,
the technologies of subsea boosting and separation, control &
monitoring and power, installation, intervention and system modularity
and case studies. Results of a survey of operators' opinions on
subsea processing are reported.
Forecasts of the subsea processing market between 2003-2012 are
presented by component and region: in high, most likely and low
oil price scenarios.
The Subsea Processing Gamechanger Report has 150 pages, 117 figures
and 33 tables.
Douglas-Westwood
Douglas-Westwood Limited carries out commercial due diligence work
for the financial community and business research, market analysis
and strategy work for the international energy industry in both
the upstream and downstream sectors. Douglas-Westwood has clients
in 30 countries and to date over 230 projects have been completed.
Clients range from the oil majors and contractors to equipment manufacturers,
financial institutions and departments of government in several
countries.
OTM Consulting
OTM Consulting Limited assists oil companies to source and deploy
technologies - through knowledge-sharing networks, on-line knowledge
databases and state-of-the-art reviews - and helps technology providers
to take their winning ideas and technologies to market - through
market analyses, finance raising, JIP initiation / management and
field trials. OTM also provides advice on strategy and supply chain
development. Clients include over 30 oil companies worldwide, contractors,
numerous suppliers, and government departments.
For more information see www.dw-1.com.
Posted by Richard Price,
Editor Pipeline Magazine
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