m-pipe® riser saves 43%
Magma commissioned an independent report from Calash, the specialist energy sector strategic advisory firm, to analyse the potential economic benefits of its m-pipe® versus traditional steel pipe for riser applications, an expensive and high risk component of production architecture.
The report shows m-pipe® is an enabling subsea technology that facilitates simplification of architectures and standardisation.
It demonstrates that m-pipe® can deliver a clear positive economic benefit on the basis of reducing costs and removing cost overrun risks for deep water multiple riser projects.
The report also shows that m-pipe® offers significant equipment, construction, fabrication, engineering and project management benefits that are likely to be highly competitive in shallower water depths.
Key report highlights:
- The m-pipe® riser system has the capability to save 11% in total project costs compared to a steel riser system project, where these projects typically carry budgets of circa $2.5bn
- A traditional steel riser SLOR system is 75% more expensive than an m-pipe® TCP SLOR riser system, which means an m-pipe SLOR saves 43% versus a steel SLOR
- Many aspects of an m-pipe® riser system significantly reduce project risk and its associated cost overruns, predominantly due to the lighter weight and superior strength of m-pipe®
Commenting on the findings of the Calash report, Martin Jones, Magma Global’s CEO, said:
“We welcome this thorough study by Calash, which clearly highlights the significant benefits m-pipe® brings to subsea riser projects. This comes at a time when the oil and gas industry is striving to reduce the cost of the growing number of deepwater developments needed to meet global energy demands.”
“Another key aspect highlighted by the Calash report is the significantly reduced risk associated with m-pipe® riser deployments, which translates into greater project certainty in respect of budgets and timescales. This is even more important in the light of a recent oil and gas capital project survey by Accenture, which highlighted that only a third of all the participants had managed to deliver their deepwater projects within 25% of their approved budget and within the approved time schedule.”
Report summary conclusions
The main m-pipe® riser benefits are in deep water, where m-pipe® low weight and near neutral buoyancy bring significant technical benefits and a substantially lower installation cost.
m-pipe® technical and performance characteristics are better suited to a subsea environment than steel pipe so it is also likely to be beneficial over a steel riser at shallower depths.
Compared with an eight riser SLOR system in traditional steel pipe at $565m, the cost of deployment of an m-pipe® SLOR system is $323m, a saving of $242m with m-pipe®.
Deep Water SLOR Cost Summary and Comparison – Steel versus m-pipe® Riser System
Other key report conclusions:
- Negligible differential of steel SLOR versus TCP SLOR riser, jumper and pipe material costs ($225m vs. $226m)
- Total fabrication costs for an m-pipe® SLOR riser are a third that of a steel SLOR riser ($17m versus $52m)
- An m-pipe® SLOR does not require an Upper Riser Assembly (URA), a $62m cost saving versus steel pipe
- The eight flexible jumpers are less than a third of the pipe length with an m-pipe® SLOR versus steel SLOR
- Magma m-pipe® SLOR riser offshore construction costs are one tenth that of a steel SLOR riser