Na Kika Project

The Na Kika project involves the production of hydrocarbons from five small- to medium-sized discoveries in the Mississippi Canyon area of the Gulf of Mexico, around 144 miles south east of New Orleans, Louisiana, USA. The fields being developed are Kepler, Ariel, Fourier, and Herschel in which Shell and BP each have a 50% share, and East Anstey in which BP has a 62.5% interest, and Shell a 37.5% interest. Production began in December 2003.

SEMI-SUBMERSIBLE SYSTEM

The project is a complex one involving Shell’s first semi-submersible host permanently moored in 6,350ft of water and its deepest permanently moored semi-submersible development and production system.

Below the surface, the installation uses the world’s first pipe-in-pipe risers, the first gas lift risers in the Gulf of Mexico, the first use of lazy wave risers, the largest pipe-in-pipe flowline in the Gulf of Mexico and the first ‘electrically heated ready’ flowlines and risers.

The semi-submersible is based on four square steel columns, 56ft wide and 142ft high, connected by four rectangular steel pontoons, 41ft wide and 35ft high. The hull weighs 20,000t and provides 64,000t of displacement. The topside facilities measure 335ft × 290ft, with a 130ft × 120ft central opening. It is based on four modules – quarters for 60 people, process, east receiving and west receiving – which total 20,000t.

NA KIKA PROJECT CONCEPT

The project is a subsea development of the fields which are from 5,800ft to 7,600ft below sea level, tied back to a centrally located, permanently moored floating development and production host facility situated on Mississippi Canyon Block 474.

Wells vary in distance from five to 12 miles away from the platform, which makes horizontal drilling impractical. Na Kika’s ten satellite subsea wells – drilled over a two-year period – tie back to the platform using some 90 miles of flowlines. The 29-mile-long north oil loop consists of ten 16in pipe-in-pipe insulated flowlines. The 26-mile-long south oil loop is of eight 12in pipe-in-pipe insulated flowlines. The 32-mile-long south gas loop consists of 8in uninsulated flowlines.

A sixth field, Coulomb, is wholly owned by SEPCo, and will be tied back to the host facility as production capacity becomes available. The host has a semi-submersible-shaped hull with topside facilities for fluid processing and pipelines for oil and gas export to shore. The host will be placed in a centrally located position within the Na Kika unit. By using this novel co-development concept, Shell and BP are able to develop and produce these hydrocarbons profitably.

Shell will be the pre-development operator of the Na Kika development, responsible for the design, fabrication, and installation of the floating host facility and subsea production systems, as well as the drilling and completion of the ten development wells. BP will be the post-production operator, responsible for the operation of the host facility and surveillance of the satellite subsea fields.

NA KIKA PROJECT DEVELOPMENT

The project aims to recover up to 300 million barrels of oil equivalent. The Kepler, Ariel, and Herschel fields are mainly oil, while the Fourier and East Anstey fields are mainly gas.

The project is expected to cost in the region of $1.4bn, excluding lease costs. Approximately 50% of the costs are associated with the fabrication and installation of the host facility and pipeline, 25% of the costs are associated with the fabrication and installation of the sub-sea components, and 25% are associated with the drilling and completion of the wells.

The installation of the subsea systems is expected to begin in the first quarter of 2002. The installation of the host facility is expected in 2003. There will be complete separation, dehydration and treatment facilities designed to process 325 million cubic feet of gas and 100,000 barrels of oil per day.

The hydrocarbons are shipped and exported via an 18-inch diameter oil pipeline and a 20-inch diameter natural gas pipeline. BP and Shell commissioned the 75-mile Na Kika segment of the Okeanos Gas Gathering System from Na Kika to Main Pass 260. From this point gas from Na Kika is transported to onshore markets via the BP / Shell Destin pipeline system.

Okeanos is being used to transport gas from deepwater discoveries in Mississippi Canyon and the eastern Gulf of Mexico. The Na Kika segment of the Okeanos pipeline system was built by Shell, but is operated by BP.

NA KIKA PROJECT TECHNOLOGY

The overall system will include Shell’s first semi-submersible host in the deep water and the deepest permanently moored semi-submersible development and production system.

Below the surface, the installation will use the world’s first pipe-in-pipe risers, the first gas lift risers in the Gulf of Mexico (GoM), the first use of lazy wave risers, the largest pipe-in-pipe flowline in the GoM, the first downhill flow in the GoM and the first ‘electrically heated ready’ flowlines and risers.

Advanced slug control will be used for the host (gas lift, surface slug suppression device, automated process controls, dynamic modelling) with dead oil / diesel displacement and operation for flow assurance, coiled tubing gas lift for startup and production enhancement and enhanced produced water treatment to meet best available technology requirements.

NA KIKA PROJECT CONTRACTORS

Design, engineering and project management for the Na Kika project is being provided by Shell’s Deepwater Services, with support from various design consultants. ABB Lumus Global provided assistance on the hull design and DCA provided assistance on the topsides design.

The contract for the fabrication, integration and transportation of the host facility was awarded to Hyundai Heavy Industries of Ulsan, South Korea, and mooring system and host installation was contracted to Heerema. Pipeline installation was contracted to Allseas.

The umbilical installation contract was awarded to Subsea 7 in December 2002 for the loadout, transportation, and installation of all subsea distribution hardware required for the Na Kika development to complete the linkage of the subsea control systems to the main umbilicals. Subsea 7 also installed all the main steel tube umbilicals associated with the field.

Line pipes were the responsibility of Sumitomo, Tamaris, and Corinth. The export pipeline installation was the remit of Allseas.

Mooring chain contract was awarded to Vicinay of Spain. The platform required a dedicated PAGA System to be installed on the platform. GAI-Tronics proposed its Elemec plus microprocessor controlled Public Address General Alarm (PAGA) system for this project. The pipe joining and coating contract was awarded to Bradero of Mobile, Alabama.

Flowline and riser installation was the responsibility of Technip Offshore Contractors Inc. Trees and well jumpers were supplied and installed by FMC. Suction piles were the responsibility of McDermott.

The project has some of the deepest water depth for development wells in the world, the first deepwater sub-sea well completion with three commingled reservoirs and the first deepwater sub-sea well completions with SMART well technology. Fantoft Process Technologies of Houston, Texas installed D-SPICE and OLGA dynamic simulators for monitoring performance of wells, subsea equipment, flowlines, topside, improvement and verification of processes and control design as well as validation of control systems.