Introduction

In this document we perform a critical analysis of the two given options recommended for ECUG Oil company field development. We discuss in detail the process flow diagram for each of the options. The economic analysis is summarized for both of the options.

Calculation method:
Here we propose to use the Net cash flow method as it includes the annual cash in from production and the annual cash out from Opex and Capex that are summed into the project cumulative undiscounted cash flow calculation to compare between two scenarios for production for the proposed oil field development. The calculation method is found into the first reference and also the production decline rate for production forecast.
Option 1 â€“ Standalone (Fixed Steel Jacket Structure)

Initial production:
The field will be developed by 4 small wells drilled before the fixed jacket is installed to make the jacket installation easier. Each well will begining production by 1 million stbd per year that means production of 2740 stopd per day. The total field will begin production by 4 million barrel of oil per year that means 10960 barrel of oil per day.

Production Forecast:
As the reservoir will deplete that will lead to production decline continuously, the production decline annual rate is assumed to be 10% as a general trend for most of medium expandable reservoirs. The reservoir is assumed to produce until reaching the recoverable reserve that was estimated as 36 mmbbl. Upon this assumption, the field life time will be calculated.

Oil transportation:
Production will be transported by 2 pipelines; one for the bulk production and the other on can be used to test wells periodically. The main pipeline can be 12 inch diameter and the other pipeline can be 8 inch diameter. Pigging operation is required to be done every winter to sweep any waxes or

Well Date q STBD Np, STB 3/1/13 411 12,300 4/1/13 334 23,4...