We are in a world with an increasing need for oil and one that will continue to demand oil for many decades to come.
Renewable energy is not yet able to support industrial scale energy production and cannot replace all uses for oil. A persistent low oil price environment has seen a prolonged reduction in exploration and a drive to reduce costs. The recent and rapid trend towards energy transition is driving investment away from new long-life oil and gas projects.
The Pivotree Harvester System provides a step-change in hydrocarbon development and production economics. The system enables the owners of economically or geographically stranded offshore oilfields to profitably produce their project through reduced up front capital costs, the advantage of 'light touch' decommissioning, and the prospect of recycling equipment on future projects.
Pivotree provides the opportunity for agile operators to rapidly produce previously ignored accumulations, effectively avoiding exploration risk. Equally, Pivotree can be applied by owners of aging assets by extending their brownfields development reach.
The Pivotree Harvester System uses patent-pending innovation combined with conventional subsea equipment and components designed in accordance with the relevant international codes and standards, that provides all the control functions of larger systems and maintains the required safety levels without increasing operational risk.
A conventional mid-water field development requires a large amount of ancillary equipment (e.g., platforms, moorings, flowlines, manifolds) to facilitate extraction of hydrocarbons. This necessitates a larger base of reserves to overcome the CAPEX for procurement and installation.
The Pivotree Harvester System represents the absolute minimum facilities required to safely exploit a single well. Reduced cost - both of installation and future abandonment - and accelerated revenue significantly improve the net present value for stranded assets, providing a viable path to market and capitalisation of the operation.
Designed for reuse, the system breaks even at 8.5 MMbbls on first deployment and 2.5 MMbbls on subsequent deployments (@ USD$50/bbl).
Pivotree's value proposition is strongest in the mid-water. In more than 150m of water depth, Pivotree is 25-50% of the cost of a conventional field development and less than half the time to first oil. Pivotree is the only route to market in low-oil price environments for owners in the mid-water with reserves of less than 25 MMbbls that are more than 10kms from offtake infrastructure.
The system has been designed to reduce complexity and risk, minimise installation and operating cost, while delivering all the required functionality and safety required for a fully operational oilfield development. The net effect is a step-change improvement in capital expenditure (CAPEX), operating cost (OPEX), finance, and abandonment cost (ABEX), while reducing environmental impact.
Importantly, the Pivotree Harvester System decreases time to first oil by reducing construction time (by eliminating all but the minimum subsea equipment) and adding little or no installation time. This means, as soon as the well is drilled and completed, the operator can connect the Harvester and commence production. Regulatory approvals are likely to be the critical path activity as opposed to procurement and installation as in traditional projects.