Zafiro Producer Conversion

Time is money in an offshore field development project. Few strategies benefit project economics more than reducing the time from discovery to first oil. Mobil Equatorial Guinea Inc., tested the Zafiro-1 discovery well in 600-ft waters in March 1995. Shortly after Mobil set a target date for first oil in August 1996, just 18 months away-an unprecedented schedule for a deepwater frontier project in West Africa.

To achieve this goal while managing project risks, Mobil decided to develop Zafiro field using a floating production, storage and offloading (FPSO) vessel with subsea completed wells. This combination allowed flexibility for adjusting the development plan as appraisal drilling and seismic evaluation proceeded. Field layout details could be altered even as production system components were being built. The FPSO with subsea wells also facilitated a long-term phased development strategy that offered great advantages.

Managing risks while pursuing an aggressive schedule also required flexibility in contracting. Substantial engineering had to be done and orders placed for long-lead-time equipment well ahead of final project approval. Mobil thus used an interview process rather than competitive bidding to select Oceaneering as it preferred FPSO contractor, and authorized preliminary conversion engineering as the two companies negotiated a commercial contract. This engineering, which began in August 1995, established a budget and schedule for the FPSO conversion. Oceaneering was able to order process and mooring equipment beginning in September and to select a conversion facility.

When the project received final approval in October, remaining technical and commercial issues were quickly resolved, and a contract for Oceaneering to provide and operate the FPSO for Zafiro field was signed on November 30. One week later, the VLCC MT Swift arrived in Galveston, Texas, and was berthed at the shipyard for the start of conversion. The principal conversion work was completed in June 1996, and the FPSO Zafiro Producer sailed for Lisbon, Portugal, where it was drydocked for hull coating and inspection. The FPSO arrived in Equatorial Guinea in mid-August and produced first oil from Zafiro field on August 25. Mobil's ambitious goal had been achieved on budget and on time.