Leveraging an Integrated Execution Model, Digital FEED Platform and Product Standardisation to Improve Project CAPEX

Abstract

This paper illustrates how a typical subsea development (Subsea Production Systems (SPS) and Subsea Umbilicals Risers Flowlines (SURF)) can benefit from an integrated execution model which will significantly improve CAPEX, time to first oil and reduce delivery risk. The PETRONAS Limbayong Deepwater Development offshore Sabah, Malaysia is a successful example of close collaboration between a contractor and operator to leverage integrated contracting models and extended service scope, while maximizing Malaysian participation. Digital platforms for Front End Engineering and Design (FEED) and Configure to Order (CTO) product designs were utilized in combination to assess and establish the optimal field architecture for improved cost and schedule. Adopting an integrated one-stop contract approach (SURF, SPS and Subsea Services) enabled an improved development schedule and reduction in cost and risk normally associated with split-contract interfaces. Digitalization of FEEDs and standardization of product configurations created value for the Limbayong field development, accelerating time to First Oil Date (FOD) as well as securing aggressive long-lead items delivery schedules. The combination of the methods described above provides the required enhancement to a traditional execution approach, ill-suited to current oil and gas economics. This approach is instrumental in making many subsea developments feasible and a preface for accelerated future collaborations.