ABSTRACT
Petroleum production projects include those involving exploration activities prior to drilling, exploration drilling, development drilling, production and treating facilities, enhanced oil recovery, pipelines, and the development of equipment and procedures for accomplishing work related to these activities. The planning and execution of petroleum production projects also involve technology considerations; both technology development requirements and technology application. The planning and execution of petroleum production projects also involve financial considerations. There is also the need to anticipate the effect of external influences or unknown and unusual marketplace forces on the project financial results. Project design tradeoffs affect project economics. These include reservoir depletion mechanics and effect on facilities design; need for secondary or tertiary oil recovery systems; location of processing facilities-on or off shore; and prefabrication versus on-site fabrication. Constant communication between the project team, the operating organization, the owner/management and their reservoir, drilling and facilities engineering staffs, and the contractors is essential to a successful project.
