Choice of Development Concept - Platform or Subsea Solution? Implications for the Recovery Factor

A real choice exists today on a number of discoveries between platform-based or subsea development solutions. Statistics from the Norwegian continental shelf (NCS) show that fields developed with fixed platforms have a substantially higher recovery factor. The potential for a later commitment to improved oil recovery (IOR) is determined largely by the original development solution. Through the use of cases and examples, this article discusses the valuation of the enhanced flexibility offered by platform-based development solutions. It illustrates that valuing the various types of flexibility is difficult, which leads to the following question - are development solutions being selected without taking sufficient account of option values?