Reduce Cost and Schedule by Developing an Optimum Well Surface Facility Program Paper – SPE -203139-MS

 In Facility Standardization, Papers

This paper will discuss proven methods that can be utilized to develop an optimum well surface facility
program, which will reduce the overall program cost, schedule, and labor risk.
Well surface facilities are currently custom designed and constructed (with each design being slightly
different), and as a series of projects rather than a single program. The custom design for each project
increases the cost and construction timeline of the well site facilities. Although there may be slight
production design differences in the sub-surface design, the surface facilities can be standardized by
understanding the sub-surface production design ranges. The key to optimizing well surface facilities is to
standardize the equipment and components within the facility and maximize the use of building blocks or
The following four methodologies can be used to develop an optimal well site:

  1. Standard Design Package and Catalog Development
    This method involves developing standard design packages for the building blocks of a well site
    and generating a standard catalog for the well site program. This standard catalog will reduce the
    engineering hours on repeatable well sites and reduce the project timeline up to 75%.
  2. Implementation of Standardized Tagging
    Developing standardized tagging for the well site program will provide a system for equipment
    and instrumentation to be purchased without a specific well site location. This method promotes
    agility in the design, purchasing, fabrication, maintenance, and operations of asset procurement. In
    addition to procurement, it also allows for an effective asset management program for operations
    and maintenance, as both the tags and vendor data are standardized.
  3. Program Level Contracting and Procurement
    Developing a standard vendor data library will reduce the overall timeline required for
    equipment and instrumentation production cycles, eliminate duplicate information, and reduce
    data handling costs. This will create opportunities for phased delivery and bulk purchase pricing
    discounts based on the yearly requirements. Another key component of this method is developing
    subcontractor partner relationships that are aligned for program delivery.
    2 SPE-203139-MS
  4. Optimized Modularization and Construction
    The standard design packages can be fabricated and assembled as pre-assemblies or modules.
    Site labor will be moved offsite, reducing labor risk, and pre-assemblies or modules can be
    standardized, fabricated, and assembled independent of the well site location. This method will
    allow for both program flexibility and mentality, as well as provide future flexibility to enable the
    relocation and reuse of modules from decommissioned sites to new sites.
    Standardization and modularization methods have proven benefits for well surface facility programs that
    include, but are not limited to the following:
    • Reduced cost, including significantly reduced home office costs
    • Reduced schedule, including removing engineering, material, and fabrication from the critical path
    • Increased well program flexibility
    • Improved cost and schedule certainty
    • Strict Change Management and value improvement system

An optimal well surface program utilizing the standardization and modularization methods can realize
the benefits described and reduce the facility total installed cost from 10% to 30%, depending on the extent
of standardization utilized versus traditional project executions.

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