Integrated Hub Roadmap Adds 18 Years to Operational Life: Case Study from Gas Hub in Sarawak

Abstract

One of the key objectives for late field life management is aimed at unlocking production volumes below pipeline turndown rate (TDR). This can be achieved through new subsurface opportunities to keep total hub production above TDR and through operational management strategy to unlock below TDR volumes. This paper presents a reflection of technical studies conducted to extend hub production life and value creation for all stakeholders through technical due diligence, cost compression and operational excellence strategies. Hub-A caters to production from two carbonate gas fields in Sarawak region and needs to maintain total production >120 MMscf/d to meet pipeline TDR. The hub was expected to go below TDR in Year-2022 and to sustain the hub production beyond 2022, attic gas volumes in one of the feeder fields were identified for future development to potentially add incremental gas production to the hub and extend operational life by 2.5 years. However, based on techno-commercial assessment, the project wasn't considered viable for development. Additionally, recent production performance indicated sharp increase in water-gas ratio from existing fields with the outlook indicating an early timeline for hub production to go below TDR. This necessitated several surface studies to be commissioned for hub protection with the primary objective of assessing technical feasibility to continue production below TDR limit. These studies focused on flow assurance studies for main trunkline & satellite pipelines, corrosion study for pipeline remnant life assessment, operating philosophy for production management and capacity assessment for onshore facilities. For long-term roadmap, future gas feeders were also identified for hub sustenance beyond cessation of production from existing fields. With the implementation of short-term and long-term production strategy as part of operation & management philosophy, ~26 MMboe of below TDR volumes from existing fields are expected to be unlocked and the hub producing life is expected to be extended by >6 years with significant reduction in operational expenditure. Additionally, exploration roadmap has been strategized in synergy with hub outlook to provide long-term gas supply until 2040. This is expected to generate significant value through continued revenue generation and keeping the hub in operable conditions for future tie-ins from new feeders and nearby gas field developments. This paper presents novel operational strategy to unlock below pipeline TDR volumes for late field life management and integrated roadmap development for long-term value creation with synergy across exploration and development portfolio in the region.