( FDP )
Integrated Field
Development Planning
17 – 21 Feb 2025
London
01 What is a field development plan ( FDP )?
01 What is a field development plan ( FDP )?
02 Why FDP is it important ?
0203 Why FDP is it important ?
How do companies create a FDP ?
04 The challenge of developing FDPs
03 How do companies create a FDP ?
05 What factors influence the FDP?
06 The challenge of developing FDPs
04
The main phases of a field development plan
The typical life-cycle of most oil or gas fields
07 What
05 factors influence the FDP?
08 Information to Developing a plan for a petroleum reservoir
06 The main phases of a field development
plan Field The typical life-cycle
07 Developments Plan of most oil or
Bygas
: Abbas Radhi -Sep-
What is a field development plan
( FDP )? Abbas Radhi
Abbas
3
Field Developments Plan
What is a field development plan
( FDP )? Abbas Radhi
Abbas
4
Field Developments Plan
01 What is a field development plan ( FDP )?
02 Why FDP is it important ?
03 How do companies create a FDP ?
04 The challenge of developing FDPs
05 What factors influence the FDP?
06 The main phases of a field development plan
07 The typical life-cycle of most oil or gas fields
08 Information to Developing a plan for a petroleum reservoir
Field Developments Plan
( FDP)
Why FDP is it important
? Abbas Radhi
Abbas
6
Field Developments Plan
01 What is a field development plan ( FDP )?
02 Why FDP is it important ?
03 How do companies create a FDP ?
04 The challenge of developing FDPs
05 What factors influence the FDP?
06 The main phases of a field development plan
07 The typical life-cycle of most oil or gas fields
08 Information to Developing a plan for a petroleum reservoir
Field Developments Plan
( FDP)
How do companies create
a FDP ? Abbas Radhi
Abbas
Bringing petroleum discoveries to production requires the
safe and efficient execution of extremely complex, technical
multi-billion2-dollar projects. These projects have significant
risks and, if poorly executed, can result in environmental
disasters, severe financial repercussions and reputational
difficulties for the companies involved.
As such, oil and gas companies have developed
processes to manage risks and maximize returns from
projects. The FDP is a critical part of this process.
8
Field Developments Plan
How do companies create
a FDP ? Abbas Radhi
Abbas
The company processes are based on the principle that good
planning is fundamental for the success of a project. It is well
known that the ability to affect outcomes without significantly
impacting costs is highest at the start of the project and
decreases as the project moves towards completion. Costs
and staffing levels are relatively low at the beginning of a
project and will ramp up significantly once design decisions
are made as materials and expertise etc. need to be procured
for actual construction. Without effective planning, rectifying
errors or making changes later is costly, difficult and may
jeopardies the project’s goals
9
Field Developments Plan
How do companies create
a FDP ? Abbas Radhi Abbas
Tis is often referred to as the cost-influence curve (shown in
Figure 1.1) and illustrates that opportunities for value
optimization are greatest in the planning and design phases of
a project.
fl
10
Field Developments Plan
How do companies create
a FDP ? Abbas Radhi
Abbas
Oil and gas companies apply this concept to the progression
of a discovery to production by using a phased or “stage
gate” (SG) process. The terminology used for this project
management system varies among companies, but typically
consists of the Appraise, Select, Define, Execute and Operate
phases. At the end of each phase, senior management
reviews project progress (via standardized reports, metrics
etc.) and makes a decision on whether the project can
proceed to the next phase or if it should be dropped, delayed
or requires further work. During the planning and design
stage, the focus is on “selecting the right project” and
thereafter it is around implementation, as illustrated in Figure11
Field Developments Plan
How do companies create
a FDP ? Abbas Radhi
Abbas
12
Field Developments Plan
How do companies create
a FDP ? Abbas Radhi
Abbas
The typical activities in each phase are as follows:
1 Appraise:
Post-discovery, an appraisal programmed is developed to
assess the size of the discovery which will carefully balance the
need and cost of additional information with the additional
benefit it brings. Efforts are focused on data collection (e.g.
seismic surveys/drilling additional wells) and analysis to assess the
amount of oil and gas (volumes of hydrocarbons in place) and
crucially how much can be recovered. Data is also collated on its
characteristics, drilling hazards and potential production levels
(reservoir and well performance uncertainties may influence this).
Tis culminates in a decision as to whether it is technically and
economically viable to develop the field – i.e. if it is a 13
Field Developments Plan
How do companies create
a FDP ? Abbas Radhi
Abbas
The typical activities in each phase are as follows:
2-Select :
Different options to develop the field are created,
evaluated and a preferred concept is selected.
Tis involves complex issues such as how to manage the
reservoir, the design and management of various aspects
required to bring the hydrocarbons to surface (e.g.
wells/facilities), transportation to markets (e.g. pipelines,
tankers, storage and export systems), financing and sales
arrangements.
14
Field Developments Plan
How do companies create
a FDP ? Abbas Radhi
Abbas
The typical activities in each phase are as
follows:
2-Select :……
Determining the optimal plan that minimizes the risks
and maximizes value is an iterative process that requires
multi- disciplinary collaboration to ensure an integrated
approach to developing the field. (as illustrated in Figure
1.3). Tis involves specialists such as geologists,
geophysicists, engineers (petroleum, reservoir, drilling,
completion, facilities) HSE and commercial teams.
15
Field Developments Plan
How do companies create
a FDP ? Abbas Radhi
Abbas
The typical activities in each phase are as
follows:
2-Select :……
Figure 1.3
Integrated Field
Planning – Multi-
disciplinary Iterative
Process
16
Field Developments Plan
How do companies create
a FDP ? Abbas Radhi
Abbas
The typical activities in each phase are as follows:
3-Define
The selected development concept is optimized, and a
detailed project plan is developed. Costs begin to ramp up
as the project team is expanded and long-lead items are
procured. Technical specifications (Front End Engineering
and Design (“FEED”), cost estimates, contracting
strategies, risk management (identification and mitigation)
and the project schedule are developed to an appropriate
level of detail to freeze the scope of the project.
17
Field Developments Plan
How do companies create
a FDP ? Abbas Radhi
Abbas
The typical activities in each phase are as follows:
3-Define……
The detailed engineering and benchmarking will result in a
more comprehensive understanding of the project and
forecasts of production and costs etc. At the stage-gate
review, if senior management is confident the project has
met all the necessary technical assurance requirements,
that it is value accretive and controls are in place to deliver
the project on time and budget, it will be “sanctioned” and
progress to the next phase
18
Field Developments Plan
How do companies create
a FDP ? Abbas Radhi
Abbas
The typical activities in each phase are as follows:
3-Define……
Tis is referred to as the Final Investment Decision (FID) and
is the company’s commitment to invest money (often
billions of dollars), people (project teams will include
several technical disciplines) and other resources into the
project. FID will therefore also depend on the company’s
ability to fund the project, as well as how the project ranks
among other investment options.
19
Field Developments Plan
How do companies create
a FDP ? Abbas Radhi
Abbas
The typical activities in each phase are as follows:
4-Execute:
Activities are executed per the project plan with the oil and
gas company in the role of ‘project managers’ as the work
is carried out primarily through specialist forms. Most of
the project expenditure is incurred as EPC (Engineering,
Procurement and Construction) contracts are signed, wells
are drilled and facilities are built, installed and
commissioned. Ability to meet project cost and schedule
will depend heavily on the quality of pre-sanction
preparation
20
Field Developments Plan
How do companies create
a FDP ? Abbas Radhi
Abbas
The typical activities in each phase are as follows:
5-Operate:
Production begins, revenues are generated and the asset is
managed to maximize returns. The economic life of a Feld
can extend to 20–40 years and production methods used will
depend on the reservoir characteristics and the age of the
field. Initially, petroleum is brought to the surface from the
natural pressure of the reservoir combined with artificial lift
techniques such as pumps (primary recovery). When the
pressures fall as the field matures, injecting water or gas to
displace and drive the hydrocarbons into the well can
21
increase production levels (secondary recovery).
Field Developments Plan
How do companies create
a FDP ? Abbas Radhi
Abbas
The typical activities in each phase are as follows:
5-Operate:…….
There are also tertiary recovery methods which can extend
a field's
productive life such as introducing heat, gas (e.g.
natural gas, nitrogen, carbon dioxide) and chemicals.
Given the long
lifespan of the asset, it will require significant
maintenance over its useful life (e.g. wells – workovers,
pipelines – pigging, facilities -
turnarounds). When it is no longer economical to produce
the field,
process and it should
will have to be decommissioned
be considered during the (i.e. wells
22
designField
plugged phase
and abandoned,
Developments Plan facilities removed, the site
How do companies create
a FDP ? Abbas Radhi
Abbas
23
Field Developments Plan
01 What is a field development plan ( FDP )?
02 Why FDP is it important ?
03 How do companies create a FDP ?
04 The challenge of developing FDPs
05 What factors influence the FDP?
06 The main phases of a field development plan
07 The typical life-cycle of most oil or gas fields
08 Information to Developing a plan for a petroleum reservoir
Field Developments Plan
( FDP)
The challenge of developing FDPs – decision-
making under uncertainty
The FDP should consider the entire life cycle of a field up
to and including decommissioning. However, it is often
developed across the Appraise and Select phases when
there is limited information and a wide range of
uncertainty on several critical variables. A robust FDP will
consider these risks and uncertainty and include them in
the evaluation of various development options.
25
Field Developments Plan
The challenge of developing FDPs – decision-
making under uncertainty
The subsurface is at the heart of a petroleum project and is the
largest areas of uncertainty. Oil and gas are produced from
underground reservoirs in depths ranging from 5,000 to over
25,000 feet depending on the location. there is no visibility of
the subsurface conditions and it can only be estimated by
experts using various technologies – data gathering, evaluation
and modelling. It is complex and the ability to make effective
predictions will depend on reliability and relevance of
information gathered during the Exploration and Appraisal
phase
26
Field Developments Plan
The challenge of developing FDPs – decision-
making under uncertainty
All other disciplines work with the subsurface assumptions as a
critical input. Reservoir conditions such as fluid characteristics,
impurities, drive mechanism, and others subsurface factors (e.g.
pressure, temperature and shallow hazards) will impact the drilling
programmed (e.g. type of drilling fluids, number and placement of
wells, completion design, safety measures). Tis in turn will have
implications for the design of the facilities and infrastructure (e.g.
type
of processing/pipeline size). These factors are interdependent and
require significant co-ordination to understand how choices made
in one area effects the others. The various subsurface and surface
disciplines will employ appropriate techniques to establish the risks
27
and determine options for developing a field
Field Developments Plan
The challenge of developing FDPs – decision-
making under uncertainty
Figure 1.5 Uncertainty and the
FDP
28
Field Developments Plan
01 What is a field development plan ( FDP )?
02 Why FDP is it important ?
03 How do companies create a FDP ?
04 The challenge of developing FDPs
05 What factors influence the FDP?
06 The main phases of a field development plan
07 The typical life-cycle of most oil or gas fields
08 Information to Developing a plan for a petroleum reservoir
Field Developments Plan
What factorsinfluence the
FDP? Abbas Radhi
Abbas
An oil and gas company will consider several factors when
determining the optimal solution for producing oil and gas
from a commercial discovery. Tis involves complex issues
such as how to manage the reservoir, the design and
management of other aspects required to bring the
hydrocarbons to surface (wells/facilities), transportation to
markets (e.g. pipelines, tankers, storage and export
systems) and sales arrangements
30
Field Developments Plan
What factorsinfluence the
FDP?
The process of developing the FDP will consider issues
such as:
• Safety and environmental considerations
• Alignment with the company’s strategy and
commercial drivers
• Location: whether the discovery is onshore or offshore
and
site specifics (e.g. water depth), proximity to
infrastructure and other fields, distance to markets,
susceptibility to disruptions (e.g. natural disasters).
Technical factors such as (Geology , Available
31
technology and engineering considerations )
Field Developments Plan
What factorsinfluence the
FDP?
Technical factors such as :
Geology: the reservoir is at the heart of the FDP and
influences many other critical design components.
Characteristics such as the hydrocarbon type (oil/gas, Gas
Oil Ratio “GOR”), the volumes in place (how much oil and
gas is underground), recovery factor (how much can be
produced from the reservoir), quality (heavy/light,
impurities), number and compartmentalization of
reservoirs (stacked or fragmented), pressure and
temperature will influence the drilling and completions
programmed, surface equipment, facility type, processing
requirements, export systems capacity and sales
arrangements.
Available technology and engineering considerations. Tis
will impact various aspects such as drilling, completions, 32
facilities and export
Field Developments Plansystems.
What factorsinfluence the
FDP?
safely. Part of the company’s stage-gate approach to decision
making will include technical assurance of these decisions.
Tis ofen includes a review by subject matter experts who are
not involved in the project to provide independent
assessments, referred to as “peer reviews”.
Ultimately, a company will only proceed with a project that is
both technically and commercially viable – i.e. can it be
developed safely, with available technology? Can it generate
sufficient economic returns?
Economics therefore plays a central role in generating and
selecting the development option. A project’s economic return
is dependent on both technical and commercial factors, and
there is a large degree of uncertainty across both
33
Field Developments Plan
What factorsinfluence the
FDP?
The economics will depend on the amount and timing of the net cash
flow from the asset over its useful life. Tis can extend over 40 years.
The net cash flow is the amount of cash that a company expects to
receive after deducting costs, taxes and other cash outflows from
revenues. Revenues are determined by price (very uncertain and
extremely volatile) and production of oil, gas and related products
(e.g. natural gas liquids). Deductions would include the cost to
develop (capital expenditure, “capex”), operate (operating
expenditure, “opex”) and decommission (“decom”), as well as
payments to the government. In some countries where the fiscal
regime is ambiguous, or silent on certain elements, assumptions will
have to be made. The project economics therefore encapsulate a
project’s risk, as it depends on technical, commercial and regulatory 34
factors. Field Developments Plan
What factorsinfluence the
FDP?
When the FDP is being developed (Appraise/Select),
uncertainty is at its highest as there is limited information.
Estimates of the project’s costs, production and revenue will
depend heavily on benchmarking and the judgement of
experts (e.g. interpretation of modelling). Te FDP’s purpose is
to document the preferred development concept in light of
those uncertainties and the assumptions made. The use of
scenarios, and stress testing the project to downside cases is
common practice. Tis helps to understand project returns
under a range of outcomes with
key variables taken into account. 35
Field Developments Plan
What factorsinfluence the
FDP?
Uncertainty remains throughout the life of the asset, but as further
information is collected and additional technical work is completed
(Define, Execute, Operate) the range of uncertainty is smaller.
A well-constructed FDP will consider the uncertainty range but it
should not be treated as a static or inflexible document. It may be
necessary to update and modify the FDP as circumstances change
over the project lifecycle (see Figure 1.5). For example, if the FDP is
submitted at the end of the Select Phase, detailed engineering and
studies would not yet have been completed. It is possible that
during the Define phase, as a consequence of new information and
analysis, the FDP may require changes. Tis may also occur during
the Operate phase where, for example, reservoir performance is not
as expected (there may be higher or lower rates or different fluid
properties) which may require changes to drilling plans or existing
processing facilities.
Material changes should be reflected in the
approved FDP
36
Field Developments Plan
What factorsinfluence the
FDP?
Operability: track record and reliability of various options as
well as understanding of the future operations and
maintenance requirements :
• Impact on communities
• Time to production: earlier production is generally
favorable as in most instances would enhance project
economics.
• Flexibility if risks materialize especially adaptability to
reservoir
and well uncertainty.
• Costs and ability of operator to fund the development: The
timing and amounts of capital expenditures (capex) and
operating costs (opex) can impact project economics. 37
Depending on the cash
Field Developments Plan
flow position and balance sheet
What factorsinfluence the
FDP?
Availability of specialist equipment – for example
Deepwater drilling rigs, construction yards
Alignment amongst partners. there are often several
owners in an oil and gas project which is usually
structured as a Joint Venture (JV). The strategic and
commercial drivers may vary amongst owners and the
technical perspectives may also be
different. The operator will in the first instance need to
ensure that there is JV alignment and support for the FDP
prior to submission to the Government. In several
38
countries the National Oil Company is often a JV partner.
Field Developments Plan
What factorsinfluence the
FDP?
National policies and regulatory requirements. The FDP
will be subject to a nation’s policy and legal framework.
These instruments should incorporate the country’s
strategy for development of the sector and associated
conditions and
obligations which can influence the FDP e.g. domestic
utilisation of oil or gas, contract/license duration, when
the FDP needs to be submitted, its contents etc.
Risk assessment. Risks and uncertainty are at their
highest post discovery and, although they narrow over
time, they remain a mainstay of any oil and gas field.
The nature of risks impacts all aspects of the project
and would need to be addressed in the FDP. Tis includes
matters such as technical, HSSE (Health, Safety,
Security, Environment), social, legal, commercial and
project execution. 39
Field Developments Plan
What factorsinfluence the
FDP?
Maximizing value. There are various economic indicators
that companies consider such as Net Present Value,
Internal Rate of Return, Payback Period and Capital
Efficiency. The company will consider which concept
yields the highest economic returns.
The areas above are not mutually exclusive and require an
integrated approach to developing a field. The strategic,
technical, economic, social and environmental issues need
to be assessed in order to determine the optimal concept.
40
Field Developments Plan
What factorsinfluence the
FDP?
Figure 1.6 summarizes the key factors that will influence
the company’s choice of how to develop the field.
Ultimately, given the stage-gate approach, for the project
to proceed into the Define phase, it will have to meet
three key thresholds:
– Can the project be executed safely with existing
technology?
– Are the risks well understood and considered in the
project plan?
– Are the returns sufficient given the risks and other
alternative opportunities?
41
Field Developments Plan
What factorsinfluence the
FDP?
Figure 1.6 Factors influencing the
FDP (optimal development
concept)
42
Field Developments Plan
01 What is a field development plan ( FDP )?
02 Why FDP is it important ?
03 How do companies create a FDP ?
04 The challenge of developing FDPs
05 What factors influence the FDP?
06 The main phases of a field development plan
07 The typical life-cycle of most oil or gas fields
08 Information to Developing a plan for a petroleum reservoir
Field Developments Plan
The main phases of a field
development plan
4
4
Field Developments Plan
01 What is a field development plan ( FDP )?
02 Why FDP is it important ?
03 How do companies create a FDP ?
04 The challenge of developing FDPs
05 What factors influence the FDP?
06 The main phases of a field development plan
07 The typical life-cycle of most oil or gas fields
08 Information to Developing a plan for a petroleum reservoir
Field Developments Plan
( FDP)
The typical life-cycle of most oil or gas
fields
The typical life-cycle of most oil or gas fields
Plateau
46
Field Developments Plan
The typical life-cycle of most oil or gas
fields
1-
Discovery
&
Appraisal
47
Field Developments Plan
The typical life-cycle of most oil or gas
fields
2- first
Oil
48
Field Developments Plan
The typical life-cycle of most oil or gas
fields
3- Build -
up
49
Field Developments Plan
The typical life-cycle of most oil or gas
fields
4-
Plateau
50
Field Developments Plan
The typical life-cycle of most oil or gas
fields
5-
Decline
51
Field Developments Plan
The typical life-cycle of most oil or gas
fields
6-
Abandonment
52
Field Developments Plan
01 What is a field development plan ( FDP )?
02 Why FDP is it important ?
03 How do companies create a FDP ?
04 The challenge of developing FDPs
05 What factors influence the FDP?
06 The main phases of a field development plan
07 The typical life-cycle of most oil or gas fields
08 Information to Developing a plan for a petroleum reservoir
Field Developments Plan
( FDP)
Developing a plan for a petroleum
reservoir
Once the strategy for reservoir management is
formulated, the next
step is to develop a plan , which includes the following :
54
Field Developments Plan
Developing a plan for a petroleum
reservoir
A multidisciplinary, integrated team consisting of the following
professionals is in charge of developing an economically
viable plan for the reservoir.
55
Field Developments Plan
Developing a plan for a petroleum
reservoir
5
6
Field Developments Plan
Developing a plan for a petroleum
reservoir
5
7
Field Developments Plan
References
58
Field Developments Plan
About
Authorized
Name: Abbas Radhi Abbas
Position: Chief Engineer / petroleum Engineer
Nationality: Iraq- Missan
Date of Birth: 1978
Gender: Male
Education Background:
Period Education description
1996-2001 University of Bagdad – college of Engineering – petroleum engineering department- (BSc)
Certificates of Appreciation
15 Certificates of Appreciation from difrent international companies such as (Schlumberger- waetherford , CNOOC , COSL ,
BHDC )
Work Experience : in Missan Oil Company ( MOC)
Period Work description
(2004-2006) reservoir engineer
(2006-2010 ) water injection engineer
during (2011) drilling and workover engineer
(2011 to 2023 ) petrophysics manager in Reservoir department
Language:
Mother language: Arabic
Second
English/Fluent oral and written in English.
language/level:
5
9
Field Developments Plan
Thank you
Field Developments Plan
