Conceptual study

A concept is here defined by the installed production capacity of the platform and the option to
increase this capacity during the production phase. The production capacity of the platform should in this context be conceived of as a combined measure of the platform’s production, processing and storing facilities. Hence, the production capacity specifies the total well stream that can be handled by the platform. In the conceptual study phase the operator thus decides the initial production capacity of the concept, as well as the possibility of increasing the capacity at later stages (capacity flexibility). A concept where the production capacity can be increased at subsequent stages, i.e., during the production phase, requires both additional space, e.g., on the platform deck, and extra carrying capacity. This induces additional costs, which can be considered costs of obtaining flexibility. Where convenient the production capacity will be referred to as simply the capacity of the platform.

The conceptual study phase also includes the decision of pre-drilling of production wells. This to
make sure that the production of oil can start immediately after the production unit is located at the field. Without pre-drilled wells the operator might experience a delay due to drilling of production wells after the production unit has been constructed. (It is not possible to convert exploration wells to production wells in the model.) It is further assumed that the first production well reveals perfect information about the well rate for the first production period.