The Offshore Pipeline Construction Industry: Activity Modeling and Cost Estimation in the United States Gulf of Mexico: Activity Modeling and Cost Estimation in the U.S Gulf of Mexico

Cover
The Offshore Pipeline Construction Industry
Copyright
Contents
List of Boxes
Executive Summary
	Organization
	Outline
	Highlights
	Data Sources
	Units
	References
Abbreviations and Acronyms
	Units
Acknowledgments
Part 1: Gulf of Mexico Background
1 Offshore Overview
	1.1 Gulf of Mexico
		1.1.1 Origins
		1.1.2 Shelf Versus Slope Features
		1.1.3 State Versus Federal Waters
		1.1.4 Salt and the Sigsbee Escarpment
	1.2 Regulatory Structure
		1.2.1 Oil and Gas Leasing
		1.2.2 Regulatory Authorities
		1.2.3 Fair Play, Safety, Liability, and Decommissioning
	1.3 Production System Components
		1.3.1 Wells
		1.3.2 Structures
		1.3.3 Pipelines
			1.3.3.1 Class
			1.3.3.2 Type and Coatings
			1.3.3.3 Flow conditions
			1.3.3.4 Dimension
			1.3.3.5 API 5L base pipe
			1.3.3.6 Grade
			1.3.3.7 Design
			1.3.3.8 Manufacturing
		1.3.4 Subsea Systems
			1.3.4.1 Umbilicals
			1.3.4.2 Risers
	1.4 Design Process
		1.4.1 Conceptual Engineering
		1.4.2 Preliminary Engineering
		1.4.3 Detailed Engineering
	References
2 Flow Assurance Issues
	2.1 Flow Patterns
		2.1.1 Reservoir to Well Bottom
		2.1.2 Well Bottom to Wellhead
		2.1.3 Flowline Flow
		2.1.4 Export Pipeline Flow
		2.1.5 Oil Phase Diagram
	2.2 Design Issues
	2.3 Hydrocarbon Components
		2.3.1 Hydrates
		2.3.2 Waxes
		2.3.3 Asphaltenes
		2.3.4 Resins
	2.4 Hydrate Management Techniques
		2.4.1 Depressurization
		2.4.2 Insulation
		2.4.3 Dehydration
		2.4.4 Loop Arrangement
		2.4.5 Continuous Chemical Injection
		2.4.6 Heating
	References
3 Field Development STRATEGIES
	3.1 Systems Perspective
	3.2 Conceptual Development
		3.2.1 Reservoir Geometry
		3.2.2 Hub Platforms
		3.2.3 Flowline Architecture
	3.3 Development Strategies
		3.3.1 Field Architecture
		3.3.2 Looped Flowlines
		3.3.3 Floating Production Storage and Offloading Vessels
		3.3.4 Direct Vertical Access Wells
		3.3.5 Oil Versus Gas Systems
		3.3.6 Reservoir Quality
	3.4 Hub Classification
	3.5 Hub Platforms
		3.5.1 Process and Export Capacity
		3.5.2 First-Generation Hubs
		3.5.3 Second-Generation Hubs
		3.5.4 Transportation Hubs
	References
4 Deepwater hazards and chemosynthetic communities
	4.1 Manmade Hazards
	4.2 Geohazards
		4.2.1 Slope Stability
		4.2.2 Furrows
		4.2.3 Mudslide Regions
		4.2.4 Faults and Scarps
	4.3 Chemosynthetic Communities
	References
Part 2: Offshore Construction Service Industry
5 Pipeline Installation and Vessel Specifications
	5.1 Installation Techniques
		5.1.1 S-Lay System
		5.1.2 J-Lay System
		5.1.3 Reel-Lay Method
	5.2 Vessel Specifications
		5.2.1 Hull
		5.2.2 Pipelay Equipment
		5.2.3 Station Keeping
		5.2.4 Water Depth
		5.2.5 Work Stations
		5.2.6 Tensioners
		5.2.7 Power
		5.2.8 Cranes
		5.2.9 Accommodations
		5.2.10 Other Capabilities
	5.3 Classification and Registration
	References
6 World Pipelay Fleet CIRCA 2020
	6.1 Vessel Classification
		6.1.1 Legacy Vessels
		6.1.2 Low-Spec Barges
		6.1.3 High-Spec Barges and Semis
		6.1.4 High-Spec Vessels
		6.1.5 Ultrahigh-Spec Vessels
	6.2 World Pipelay Fleet
		6.2.1 Data Source
		6.2.2 Inventory Statistics
		6.2.3 Class Comparison
		6.2.4 Deepwater Vessels
	6.3 Pipelay Vessels by Class
		6.3.1 Low-Spec Barges
			6.3.1.1 Super Chief
			6.3.1.2 Castoro 12
		6.3.2 High-Spec Barges and Semisubmersibles
			6.3.2.1 Derrick Barge 27
			6.3.2.2 Castoro Sei
		6.3.3 High-Spec Vessels
			6.3.3.1 North Ocean 105
			6.3.3.2 Deep Blue
		6.3.4 Ultrahigh-Spec Vessels
			6.3.4.1 CastorOne
			6.3.4.2 Solitaire
			6.3.4.3 Pioneering Spirit
	6.4 Vessel PRICE
		6.4.1 Cost Components
		6.4.2 Examples
	References
7 Pipelay Contractors and Business Profiles
	7.1 Pipelay Contractors
		7.1.1 Identification
		7.1.2 Companies
		7.1.3 Company Objectives
		7.1.4 Ownership
	7.2 Business Profile
		7.2.1 Business Segments
		7.2.2 Fleet Composition
		7.2.3 Fleet Capacity and Utilization
		7.2.4 Geographic Diversity
		7.2.5 Integration
		7.2.6 Diversification
		7.2.7 Revenue
		7.2.8 Market Capitalization
		7.2.9 Market Position
		7.2.10 Market Structure
	7.3 EPCI Contractors
		7.3.1 Backlog
		7.3.2 Contract Type
		7.3.3 Contracting Strategy
	References
8 Business Strategies and Risk Factors
	8.1 Business Model
		8.1.1 Cash Flows
		8.1.2 Operations
		8.1.3 Business Risk
	8.2 Business Strategies
		8.2.1 Integration
		8.2.2 Growth Paths
		8.2.3 Vessel Acquisitions
		8.2.4 Vessel Sales
		8.2.5 Alliances and Partnerships
		8.2.6 Joint Ventures
		8.2.7 Mergers and Acquisitions
	8.3 Risk Factors
		8.3.1 Factors Related to Business Operations
			8.3.1.1 Oil and gas prices
			8.3.1.2 Prospectivity
			8.3.1.3 Weather
			8.3.1.4 Capital intensity
			8.3.1.5 New business lines
			8.3.1.6 Joint ventures
			8.3.1.7 International operations
			8.3.1.8 Customer base
			8.3.1.9 Marine operations
			8.3.1.10 Regional development
			8.3.1.11 Consolidation
			8.3.1.12 Competition
			8.3.1.13 New entrants
			8.3.1.14 Vessel construction and upgrades
			8.3.1.15 Overcapacity
			8.3.1.16 Acquisition risks
			8.3.1.17 Restricted markets
			8.3.1.18 Contracting
			8.3.1.19 Unconventional production
		8.3.2 Factors Related to Financial Conditions
			8.3.2.1 Reduced lending
			8.3.2.2 Debt and funded debt levels
			8.3.2.3 Letter of credit capacity
			8.3.2.4 Foreign exchange risk
			8.3.2.5 Counterparty risk
	8.4 Corporate Snapshots
		8.4.1 Public Firms
			8.4.1.1 DOF Group
			8.4.1.2 McDermott International
			8.4.1.3 Saipem
			8.4.1.4 Sapura Energy Berhad
			8.4.1.5 Solstad Rederi
			8.4.1.6 Subsea 7
			8.4.1.7 Swiber Holdings
			8.4.1.8 TechnipFMC
		8.4.2 Private Firms
			8.4.2.1 Allseas Group
			8.4.2.2 Bisso Marine
			8.4.2.3 Grup Servici Petroliere
			8.4.2.4 Heerema Marine Contractors
			8.4.2.5 Morrison, Oceanic Marine Contractors, Sea Trucks, Telford Offshore, Van Oord
		8.4.3 State-Owned Firms
		8.4.4 RECENT Departures
	References
Part 3: Gulf of Mexico Construction and Decommissioning Costs
9 Offshore Pipeline Construction Cost Estimation
	9.1 Cost Categories
		9.1.1 Material
		9.1.2 Construction
		9.1.3 Engineering and Inspection
	9.2 Cost Components
		9.2.1 Material
			9.2.1.1 Pipeline
			9.2.1.2 Weight coating
			9.2.1.3 Corrosion coating
			9.2.1.4 Cathodic protection
			9.2.1.5 Other equipment
		9.2.2 Construction
			9.2.2.1 Contract terms
			9.2.2.2 Vessel day rates
			9.2.2.3 Mobilization and demobilization
			9.2.2.4 Transition zones
			9.2.2.5 Lay method and rate
			9.2.2.6 Burial
			9.2.2.7 Pipeline crossings
			9.2.2.8 Field joint coating
			9.2.2.9 Riser and tie-in work
			9.2.2.10 Survey
			9.2.2.11 Commissioning and hydrotesting
		9.2.3 Engineering and Inspection
			9.2.3.1 Project management and engineering
			9.2.3.2 Inspection
			9.2.3.3 Repair
	9.3 Construction Cost Estimation Examples
		9.3.1 Nautilus
		9.3.2 Discovery
	References
10 Gulf of Mexico Pipeline Construction Cost
	10.1 Data Sources
		10.1.1 FERC Pipelines
		10.1.2 Industry Publications
		10.1.3 Press Releases
		10.1.4 Data Quality and project scope
	10.2 Data Processing
		10.2.1 Categorization
		10.2.2 Unit Cost
		10.2.3 Inflation Adjustment
	10.3 FERC Cost Evaluation
		10.3.1 Data Source
		10.3.2 Normalized Costs
		10.3.3 Labor and Contract Services
		10.3.4 Materials
		10.3.5 Engineering
		10.3.6 Time Trends
		10.3.7 Estimated Versus Actual Costs
	10.4 Industry Cost Evaluation
		10.4.1 OTC/SPE Data
		10.4.2 Press Release Data
		10.4.3 Comparison
	10.5 Limitations
	References
11 Decommissioning Workflows and Cost Estimation
	11.1 General Considerations
	11.2 Onshore and Offshore Decommissioning Workflows
	11.3 Cleaning
	11.4 Cutting
	11.5 Removal and Recovery
	11.6 Disposal
	11.7 Cost Factors
		11.7.1 Project
		11.7.2 Time
		11.7.3 Location
	11.8 Decommissioning Cost Estimation Examples
		11.8.1 Shallow-Water Platform to Subsea Assembly
		11.8.2 Shallow-Water Platform to Subsea Assembly
		11.8.3 Shallow-Water Platform to Onshore Facility
		11.8.4 Damaged Platform to Subsea Assembly
	References
12 GULF OF MEXICO PIPELINE Decommissioning Cost
	12.1 Data Source
		12.1.1 Description
		12.1.2 Exclusions
		12.1.3 Normalization
	12.2 Expectations
	12.3 Cost Evaluation
	12.4 Limitations
	12.5 Deepwater Decommissioning Cost Algorithms
		12.5.1 Requirements
		12.5.2 Pipeline Decommissioning
			12.5.2.1 Assumptions
			12.5.2.2 Regression models
		12.5.3 Umbilical, Flowline, and Riser Decommissioning
			12.5.3.1 Assumptions
			12.5.3.2 Regression model
		12.5.4 Decommissioning Exposure
	12.6 Estimation Uncertainty
	References
Part 4: Networks, Statistics, and Correlations
13 Gulf of Mexico Pipeline Network Evolution
	13.1 Description
	13.2 Pipeline Network Stages
	13.3 Pipeline Corridor Examples
	13.4 Pipeline Network Characteristics
		13.4.1 Structured Networks
		13.4.2 Scale-Free Networks
		13.4.3 Segmented Networks
	13.5 Energy Requirements
	References
14 Infrastructure Characteristics and Relationships
	14.1 Pipeline Characteristics
		14.1.1 Causal Relationships
		14.1.2 Dimensional Variables
		14.1.3 Complex Dependencies
		14.1.4 Ownership Issues
		14.1.5 Lumpy Volatile Data
	14.2 Infrastructure Relations
		14.2.1 Phenomenological Approach
		14.2.2 Geometric Representation
		14.2.3 Structure and Well Configurations
		14.2.4 Deepwater Structures and Subsea Well Configurations
	14.3 Data Categorization
		14.3.1 Pipeline Attributes
		14.3.2 Production Group
		14.3.3 Water Depth Classes
		14.3.4 Status Group
		14.3.5 Data Limitations
	References
15 Gulf of Mexico Pipeline Activity Statistics and Trends
	15.1 Aggregate Statistics
		15.1.1 Cumulative Installed
		15.1.2 Cumulative Decommissioned
		15.1.3 Active
		15.1.4 Out-of-Service
	15.2 Trends
		15.2.1 Installed
		15.2.2 Decommissioned
		15.2.3 Active and Out-of-Service
	References
16 Gulf of Mexico Pipeline Activity Correlations
	16.1 Shallow Water Installation
		16.1.1 Bulk Pipeline Versus Simple Structures
		16.1.2 Export Pipeline and Fixed Platforms
	16.2 Deepwater Installation
		16.2.1 Bulk Pipeline Versus Subsea Wells
		16.2.2 Bulk Pipeline Versus Subsea Wells and Deepwater Structures
		16.2.3 Export Pipeline Versus Deepwater Structures
		16.2.4 Export line Versus Deepwater Structures, Time Normalization
	16.3 Shallow Water Decommissioning
		16.3.1 Bulk Pipeline Versus Simple Structures
		16.3.2 Export Pipeline Versus Fixed Platforms
	16.4 Limitations
	Reference
Appendix A Offshore Development Records CIRCA 2020
	A.1 Deepest Water Depth
	A.2 Deepest and Longest Wells
	A.3 Largest Pipeline Networks
	A.4 Northernmost and Southernmost Fields
	A.5 Deepest Pipelines
	A.6 Longest Pipelines
	A.7 Longest and Deepest Tiebacks
	A.8 Most Complex and Difficult Wells
	A.9 Most Difficult Pipelines
	A.10 Most Expensive Projects
	A.11 Largest Production Vessel
	A.12 Largest OFFSHORE FIELDS
	A.13 Largest Offshore Producing Countries
	References
Appendix B Worked Examples
	B.1 Pipeline Routes
	B.2 Mileage Bounds by Block Counts
	B.3 Circuit Factor
	B.4 Risers
	B.5 Field Architecture
Appendix C Outer Continental Shelf Pipeline RegulatIONS and Tariff Rates
	C.1 Economic Fair Play
		C.1.1 Natural Gas
			C.1.1.1 Gathering exception tests
			C.1.1.2 Behind-the-plant test
			C.1.1.3 Central point test
			C.1.1.4 Primary function test
			C.1.1.5 Modified primary function test
		C.1.2 Oil
			C.1.2.1 Interstate Commerce Act
			C.1.2.2 Open Access and the Outer Continental Shelf Lands Act of 1953
			C.1.2.3 Energy Policy Act of 1992
	C.2 Pipeline Safety
		C.2.1 Design and Construction
		C.2.2 Outer Continental Shelf Regulatory Framework
		C.2.3 Bond Requirements
		C.2.4 Other Outer Continental Shelf Authorities
	C.3 Pipeline Abandonment
		C.3.1 Federal Energy Regulatory Commission Authority
			C.3.1.1 Oil
			C.3.1.2 Natural gas
			C.3.1.3 Public Convenience and Necessity
		C.3.2 BSEE/BOEM Authority
			C.3.2.1 Outer Continental Shelf Decommissioning Regulations
			C.3.2.2 Significant Sediment Resources Policy
	C.4 Transportation and Gathering
		C.4.1 Gathering and Transportation Fees
		C.4.2 Tariff Rates
		C.4.3 Cost of Service
		C.4.4 Rate Schedules
	References
Appendix D DEEPWATER Gulf of Mexico Pipeline MAPS
Index
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