American Oil and Gas Reporter - June 2015 - 92

SpecialReport: Offshore & Subsea Technology
capacity. For example, a 20 percent reduction in capacity would
reduce construction costs by much less than 20 percent. In addition, LLOG recognized that for an FPS, any excess capacity
would be available immediately for third-party processing,
which would provide an additional source of revenue.
LLOG also acknowledged the possibility that the standard design might be less than the capacity design compared with a purpose-built facility for some of its prospects. LLOG engineers took
comfort in knowing that the proposed standard met the actual peak
production for more than 80 percent of historical fields in the deepwater Gulf. In the rare instance when a discovery might produce
more than 100,000 bbl/d of oil, LLOG concluded that the schedule advantages relative to a purpose-built facility would lead to
superior economics. Also, in that instance, given the original reserve capacity included in the FPS design, the possibility existed to expand the facility to increase capacity.
With this design basis, LLOG believed the standardized FPS
would be ideal for most of its hub-class prospects. The one exception would be a discovery with high levels of hydrogen sulfide. LLOG had prospects that anticipated H2S, and understood
that the unexpected presence of high levels of H2S in a prospect
would require a significant redesign of the FPS's processing equipment.
Engineering for the Delta House hub-class FPS design began
in earnest in October 2011 with more than 100 engineers assigned
to the project. At this time, LLOG did not have a single discovery that might need an FPS (the discovery well in what would
become the Delta House development area was not drilled for another four months). The hull design was similar to the OPTI-EX
design at Who Dat, only larger. The topsides design used a process
similar to other LLOG production platforms, but was designed
essentially from scratch.

The deck was mated to the hull in June 2014. The floating of the
main deck over the truss and the integrated lift of 9,580 tons
were the largest ever performed at Kiewit's Ingleside yard. LLOG
already has begun engineering a second standardized Delta
House FPS to be used on a future Gulf discovery.

92 THE AMERICAN OIL & GAS REPORTER

Also in October 2011, LLOG began visiting various fabrication yards to consider a partnership to construct its series of Delta
House FPSs. In addition to the customary criteria of yard capabilities, experience, quality and schedule performance, LLOG
sought a yard large enough to build multiple units simultaneously, if desired. LLOG planned to build relationships with the yards
so that construction engineering would not be required for each
FPS, and that lessons learned from constructing one unit could
be applied directly to all future units.
As a private company, LLOG is able to sole-source large contracts, if it is advantageous to do so. By December 2011, LLOG
had narrowed the number of yards and sent a request for proposal to each finalist to build the Delta House FPS with an option
to build a second standardized FPS within a certain period. LLOG
requested a firm price for the hull and deck, since the design was
known to be similar to the OPTI-EX and the engineering was well
understood. Adjustments were allowed if the hull or deck size
changed from what was anticipated at the time of the RFP.
Since the engineering had just begun for the topsides and equipment, the RFP requested unit-based pricing on most items (e.g.,
cost per linear foot of a particular size and grade of pipe) with
cost-plus allowed on other items (such as electrical work). After reviewing the proposals, LLOG elected to construct the hull
at Hyundai Heavy Industries' yard in South Korea, and to build
the topsides and integration at Kiewit Offshore Services' yard in
Ingleside, Tx.
First Two Discoveries

In February 2012, LLOG and its partners made the first Delta
House discovery with the Son of Bluto 2 prospect in Block 431,
drilled to a depth of 18,500 feet. The field is a stratigraphic trap
on a regional dip, and is in the eastern portion of the Ariel Field
depositional system. Son of Bluto 2 was not considered hub-class
since its reserves were insufficient to justify constructing a new
FPS.
Three months later, LLOG and its partners made the second
Delta House discovery with the Marmalard prospect in Mississippi Canyon 300, drilled to 18,100 feet. Marmalard is a turbidite
sheet sand draped over a four-way structure with stratigraphic
edges. Unlike Son of Bluto 2, Marmalard was indeed a hub-class
prospect.
However, with only a single well drilled, the reserve range on
this field was quite large. Given the wide range of reserves, most
companies operating in the deepwater Gulf would have drilled
delineation wells before proceeding with engineering, much less
construction.
LLOG and its partners considered a number of options to develop the Son of Bluto 2 and Marmalard discoveries, as well as
an LLOG prospect at an adjacent lease discovery. The first option was to develop the three anchor fields using existing hosts
in the area, which would have required subsea tiebacks of 25-35
miles. While tiebacks of this distance were practical because of



American Oil and Gas Reporter - June 2015

Table of Contents for the Digital Edition of American Oil and Gas Reporter - June 2015

Contents
American Oil and Gas Reporter - June 2015 - Cover1
American Oil and Gas Reporter - June 2015 - Cover2
American Oil and Gas Reporter - June 2015 - 3
American Oil and Gas Reporter - June 2015 - Contents
American Oil and Gas Reporter - June 2015 - 5
American Oil and Gas Reporter - June 2015 - 6
American Oil and Gas Reporter - June 2015 - 7
American Oil and Gas Reporter - June 2015 - 8
American Oil and Gas Reporter - June 2015 - 9
American Oil and Gas Reporter - June 2015 - 10
American Oil and Gas Reporter - June 2015 - 11
American Oil and Gas Reporter - June 2015 - 12
American Oil and Gas Reporter - June 2015 - 13
American Oil and Gas Reporter - June 2015 - 14
American Oil and Gas Reporter - June 2015 - 15
American Oil and Gas Reporter - June 2015 - 16
American Oil and Gas Reporter - June 2015 - 17
American Oil and Gas Reporter - June 2015 - 18
American Oil and Gas Reporter - June 2015 - 19
American Oil and Gas Reporter - June 2015 - 20
American Oil and Gas Reporter - June 2015 - 21
American Oil and Gas Reporter - June 2015 - 22
American Oil and Gas Reporter - June 2015 - 23
American Oil and Gas Reporter - June 2015 - 24
American Oil and Gas Reporter - June 2015 - 25
American Oil and Gas Reporter - June 2015 - 26
American Oil and Gas Reporter - June 2015 - 27
American Oil and Gas Reporter - June 2015 - 28
American Oil and Gas Reporter - June 2015 - 29
American Oil and Gas Reporter - June 2015 - 30
American Oil and Gas Reporter - June 2015 - 31
American Oil and Gas Reporter - June 2015 - 32
American Oil and Gas Reporter - June 2015 - 33
American Oil and Gas Reporter - June 2015 - 34
American Oil and Gas Reporter - June 2015 - 35
American Oil and Gas Reporter - June 2015 - 36
American Oil and Gas Reporter - June 2015 - 37
American Oil and Gas Reporter - June 2015 - 38
American Oil and Gas Reporter - June 2015 - 39
American Oil and Gas Reporter - June 2015 - 40
American Oil and Gas Reporter - June 2015 - 41
American Oil and Gas Reporter - June 2015 - 42
American Oil and Gas Reporter - June 2015 - 43
American Oil and Gas Reporter - June 2015 - 44
American Oil and Gas Reporter - June 2015 - 45
American Oil and Gas Reporter - June 2015 - 46
American Oil and Gas Reporter - June 2015 - 47
American Oil and Gas Reporter - June 2015 - 48
American Oil and Gas Reporter - June 2015 - 49
American Oil and Gas Reporter - June 2015 - 50
American Oil and Gas Reporter - June 2015 - 51
American Oil and Gas Reporter - June 2015 - 52
American Oil and Gas Reporter - June 2015 - 53
American Oil and Gas Reporter - June 2015 - 54
American Oil and Gas Reporter - June 2015 - 55
American Oil and Gas Reporter - June 2015 - 56
American Oil and Gas Reporter - June 2015 - 57
American Oil and Gas Reporter - June 2015 - 58
American Oil and Gas Reporter - June 2015 - 59
American Oil and Gas Reporter - June 2015 - 60
American Oil and Gas Reporter - June 2015 - 61
American Oil and Gas Reporter - June 2015 - 62
American Oil and Gas Reporter - June 2015 - 63
American Oil and Gas Reporter - June 2015 - 64
American Oil and Gas Reporter - June 2015 - 65
American Oil and Gas Reporter - June 2015 - 66
American Oil and Gas Reporter - June 2015 - 67
American Oil and Gas Reporter - June 2015 - 68
American Oil and Gas Reporter - June 2015 - 69
American Oil and Gas Reporter - June 2015 - 70
American Oil and Gas Reporter - June 2015 - 71
American Oil and Gas Reporter - June 2015 - 72
American Oil and Gas Reporter - June 2015 - 73
American Oil and Gas Reporter - June 2015 - 74
American Oil and Gas Reporter - June 2015 - 75
American Oil and Gas Reporter - June 2015 - 76
American Oil and Gas Reporter - June 2015 - 77
American Oil and Gas Reporter - June 2015 - 78
American Oil and Gas Reporter - June 2015 - 79
American Oil and Gas Reporter - June 2015 - 80
American Oil and Gas Reporter - June 2015 - 81
American Oil and Gas Reporter - June 2015 - 82
American Oil and Gas Reporter - June 2015 - 83
American Oil and Gas Reporter - June 2015 - 84
American Oil and Gas Reporter - June 2015 - 85
American Oil and Gas Reporter - June 2015 - 86
American Oil and Gas Reporter - June 2015 - 87
American Oil and Gas Reporter - June 2015 - 88
American Oil and Gas Reporter - June 2015 - 89
American Oil and Gas Reporter - June 2015 - 90
American Oil and Gas Reporter - June 2015 - 91
American Oil and Gas Reporter - June 2015 - 92
American Oil and Gas Reporter - June 2015 - 93
American Oil and Gas Reporter - June 2015 - 94
American Oil and Gas Reporter - June 2015 - 95
American Oil and Gas Reporter - June 2015 - 96
American Oil and Gas Reporter - June 2015 - 97
American Oil and Gas Reporter - June 2015 - 98
American Oil and Gas Reporter - June 2015 - 99
American Oil and Gas Reporter - June 2015 - 100
American Oil and Gas Reporter - June 2015 - 101
American Oil and Gas Reporter - June 2015 - 102
American Oil and Gas Reporter - June 2015 - 103
American Oil and Gas Reporter - June 2015 - 104
American Oil and Gas Reporter - June 2015 - 105
American Oil and Gas Reporter - June 2015 - 106
American Oil and Gas Reporter - June 2015 - 107
American Oil and Gas Reporter - June 2015 - 108
American Oil and Gas Reporter - June 2015 - 109
American Oil and Gas Reporter - June 2015 - 110
American Oil and Gas Reporter - June 2015 - 111
American Oil and Gas Reporter - June 2015 - 112
American Oil and Gas Reporter - June 2015 - 113
American Oil and Gas Reporter - June 2015 - 114
American Oil and Gas Reporter - June 2015 - 115
American Oil and Gas Reporter - June 2015 - 116
American Oil and Gas Reporter - June 2015 - 117
American Oil and Gas Reporter - June 2015 - 118
American Oil and Gas Reporter - June 2015 - 119
American Oil and Gas Reporter - June 2015 - 120
American Oil and Gas Reporter - June 2015 - 121
American Oil and Gas Reporter - June 2015 - 122
American Oil and Gas Reporter - June 2015 - 123
American Oil and Gas Reporter - June 2015 - 124
American Oil and Gas Reporter - June 2015 - 125
American Oil and Gas Reporter - June 2015 - 126
American Oil and Gas Reporter - June 2015 - 127
American Oil and Gas Reporter - June 2015 - 128
American Oil and Gas Reporter - June 2015 - 129
American Oil and Gas Reporter - June 2015 - 130
American Oil and Gas Reporter - June 2015 - 131
American Oil and Gas Reporter - June 2015 - 132
American Oil and Gas Reporter - June 2015 - 133
American Oil and Gas Reporter - June 2015 - 134
American Oil and Gas Reporter - June 2015 - 135
American Oil and Gas Reporter - June 2015 - 136
American Oil and Gas Reporter - June 2015 - 137
American Oil and Gas Reporter - June 2015 - 138
American Oil and Gas Reporter - June 2015 - Cover3
American Oil and Gas Reporter - June 2015 - Cover4
http://staging.nxtbook.com/nxtbooks/aogr/201702/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201701/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201612/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201611/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201610/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/pbios2016_programguide/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201609/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201608/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201607/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201606/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201605/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201604/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201603/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201602/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201601/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201512/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201511/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201510/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201509/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201508/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201507/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201506/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201505/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201504/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201503/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201502/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201501/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201412/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201411/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201410/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201409/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/pbios2014_programguide/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201408/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201407/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201406/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201405/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201404/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201403/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201402/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201401/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201312/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201311/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201310/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201309/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201308/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201307/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201306/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201305/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201304/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201303/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201302/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201301/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201212/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201211/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201210/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201209/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/2012_pbios/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201208/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201207/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201206/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201205/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201204/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201203/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201202/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201201/stage.php
http://staging.nxtbook.com/nxtbooks/demo/aogr_clone/stage.php
http://staging.nxtbook.com/nxtbooks/aogr/201112/stage.php
https://www.nxtbookmedia.com