The objective of this stage is to identify at least one development scheme that is technically and economically viable and commercially attainable. The stage deliverable is a Feasibility Report and the stage is mapped in Figure 5.2.6 below.
Opportunity Framing
The opportunity should be reframed in accordance with 2.2, Defining the Opportunity, and 2.3, Planning the Opportunity.
Subsurface Studies (A-11.01, 02, 03)
Enhancement of the reservoir model and other subsurface activities continue into the feasibility stage with the aim of minimizing risks and uncertainties thus providing a sound basis for evaluation of possible development schemes.
Development Options (A-11.04)
The updated subsurface work supports the following activities:
- development drilling studies better to define the number of wells and their essential requirements
- fuller delineation of potential development concepts and their associated facilities requirements
- for each development concept
- a high level operability study
- a preliminary environmental study
- a concept hazard risk analysis
The above topics should be discussed with the main regulatory bodies with a view to identifying issues that might impact concept selection. Discussions should also be held with relevant non-governmental organizations when these might affect ultimate decision making.
Commercial Discussions (A-11)
In accordance with the Business Plan developed in the Initiation Stage (5.2.4), the following discussions are pursued:
- with co-venturers on potential development plans, operatorship and the required Joint or Unit Operating Agreements
- with owners of potential processing and evacuation facilities, with a view to identifying the the feasibility of using these facilities, what modifications may be required, what timing constraints there may be and indicative prices/tariffs
Economic Screening (A-11.05)
The technical and commercial work completed during this stage allows for Level 1/2 cost estimates, tariffs and production profiles for all development schemes under consideration to be prepared that, in turn, are used for updated economic screening runs.
Feasibility Report (A11.06)
The work conducted in the Feasibility Stage is captured in the Feasibility Report that is required to demonstrate that at least one technically and commercially viable option exists. In addition, an initial ranking of the options studied will support a recommended shortlist of options – ideally, no more than two or three – to be carried into the ORP
Select Phase. The main contents of a Feasibility Report are typically:
- an updated subsurface interpretation
- key features of the subsurface and surface development options, including HSE aspects
- development options screening with the key economic indicators to allow high level economic comparisons and ranking
- an updated Business Plan
- an updated prospect maturity schedule
- an updated Prospect Maturation Plan
- key issues and objectives for the Select Phase
- a programme for the Select Phase, including activities, timings, resources and costs
Value Assurance Review (VAR) 2 and Approvals
At the end of the Feasibility Stage, which completes ORP Phase 1, Identify and Assess, a Value Assurance Review (VAR 2) will be conducted in line with VAR Guideline Requirements. This will lead on to a decision as to whether to move on to ORP Phase 2 – Select.
Commercial Discussions (A-11)
In accordance with the Business Plan developed in the Initiation Stage (5.2.4), the following discussions are pursued:
- with co-venturers on potential development plans, operatorship and the required Joint or Unit Operating Agreements
- with owners of potential processing and evacuation facilities, with a view to identifying the the feasibility of using these facilities, what modifications may be required, what timing constraints there may be and indicative prices/tariffs
Economic Screening (A-11.05)
The technical and commercial work completed during this stage allows for Level 1/2 cost estimates, tariffs and production profiles for all development schemes under consideration to be prepared that, in turn, are used for updated economic screening runs.
Feasibility Report (A11.06)
The work conducted in the Feasibility Stage is captured in the Feasibility Report that is required to demonstrate that at least one technically and commercially viable option exists. In addition, an initial ranking of the options studied will support a recommended shortlist of options – ideally, no more than two or three – to be carried into the ORP Select Phase. The main contents of a Feasibility Report are typically:
- an updated subsurface interpretation
- key features of the subsurface and surface development options, including HSE aspects
- development options screening with the key economic indicators to allow high level
- economic comparisons and ranking
- an updated Business Plan
- an updated prospect maturity schedule
- an updated Prospect Maturation Plan
- key issues and objectives for the Select Phase
- a programme for the Select Phase, including activities, timings, resources and costs
Value Assurance Review (VAR) 2 and Approvals
At the end of the Feasibility Stage, which completes ORP Phase 1, Identify and Assess, a Value Assurance Review (VAR 2) will be conducted in line with VAR Guideline Requirements. This will lead on to a decision as to whether to move on to ORP Phase 2 – Select.