Subsea boosting could make an immediate increase in production profitably on more than 200 oil projects globally, according to Rystad Energy’s newly launched Subsea Processing Screening Tool.
The increase in recoverable reserves for the top 100 projects, out of more than 200 projects identified where subsea boosting would be profitable, averaged 61 million barrels of oil per project, with the amount varying widely depending on the size and location of each project.
According to Rystad, for every extra barrel of oil produced due to subsea boosting, operators can expect a profit of $11.30 on average.
The average investment cost to apply the subsea boosting solution for the above projects is at about $475 million, again varying widely depending on project characteristics.
Most of the identified candidate projects, nearly 50, are located in the US. The other countries rounding out the top 10 list are Brazil, Angola, Norway, the United Kingdom, Guyana, Nigeria, Ghana, Malaysia and Suriname.
The 10 companies that operate most of these projects identified by Rystad Energy are Petrobras, ExxonMobil, Shell, Equinor, BP, Chevron, Eni, LLOG, Murphy Oil and Apache.
Erik Vinje, analyst with Rystad Energy’s energy service team, said:
“Subsea boosting offers significant value creation, both for brownfield and greenfield developments, by reducing the wellhead backpressure at the seabed, which in turn accelerates production and increases total recoverable resources.”
Rystad identified the project candidates deemed suitable in this analysis by studying field characteristics and calculating the net present value from installing a subsea boosting system. This process considered the impact to the production profile, any increase in recoverable reserves and costs related to equipment, installation, power investments and topside modification. About 50 per cent of the candidate projects are brownfield initiatives, where the quicker subsea boosting is applied, the larger the positive impact.
Rystad believes that one of the main reasons for the low adoption rate seen thus far for boosting equipment relates to the reliability of these units.
The operational downtime ratio of the pumps was a critical issue in the early days of subsea boosting, as any need for intervention involved expensive specialized vessels or drilling rigs to repair the unit. However, with advancing technology, the reliability of subsea units has increased in recent years, the report concludes.