In the competitive landscape of upstream oil and gas production, efficiency and cost-effectiveness are critical. Rex International Holding (Rex), has leveraged innovative solutions to accelerate oil production while maintaining economic viability. Our approach utilises Mobile Offshore Production Units (MOPUs) and Floating Storage and Offloading (FSO) vessels, which has proven to be both effective and adaptable, particularly in shallow water environments.
The MOPU and FSO Advantage
Rex’s strategy hinges on the deployment of MOPUs and FSOs, which offers several key advantages over traditional fixed infrastructure. MOPUs are mobile platforms designed for the production of oil and gas in shallow waters. They are not fixed to the seabed, allowing for greater flexibility in operations and maintenance, without the high abandonment costs of fixed infrastructures. FSOs, on the other hand, are floating vessels equipped to store and offload the produced hydrocarbons, eliminating the need for extensive pipeline infrastructure.
1. Speed to Production
One of the most significant benefits of using MOPUs and FSOs is the accelerated timeline for bringing oil production online. Unlike fixed platforms, which require extensive time for construction and installation, MOPUs and FSOs can be deployed relatively quickly, subject to availability. The ability to mobilise and position these units with minimal lead time means that Rex can achieve faster production start-ups, translating into quicker returns on investment.
2. Cost Efficiency
The financial advantages of MOPUs and FSOs are substantial. The cost of deploying these units is significantly lower compared to building and installing fixed platforms. Fixed platforms can incur high upfront costs due to their construction and the necessity for permanent infrastructure. In contrast, MOPUs and FSOs offer a more cost-effective solution, with the added benefit of flexibility in operations. Moreover, these units can be leased rather than purchased, which further reduces capital expenditure and financial risk. Additionally, the FSO, functioning as a large oil tank, can be integrated into the final oil processing initiated by the MOPU, such as water separation. This FSO/MOPU alliance not only streamlines processing operations but also reduces the cost of process components required on the MOPU, thereby enhancing overall efficiency.
3. Flexibility and Reduced Abandonment Costs
Another critical advantage is the inherent flexibility of MOPUs and FSOs. Since these units are mobile, they can be relocated or redeployed as needed. This flexibility is especially beneficial for fields with variable production rates or those nearing the end of their productive life. When a well becomes economically unviable, the cost of decommissioning a MOPU or FSO is minimal compared to the substantial expenses associated with fixed platforms abandonments. This dynamic approach not only minimises abandonment costs but also avoids the financial and environmental burden of dismantling extensive infrastructure.
4. Upgradable Infrastructure
The leasing model for MOPUs and FSOs allows for regular upgrades and replacements of infrastructure. As technology advances or operational needs change, these units can be updated or replaced without the need for extensive new construction. This adaptability ensures that Rex can continually enhance its operations and maintain high efficiency without the constraints of fixed infrastructure.
Success in Oman and Expansion to Benin
The successful implementation of the MOPU and FSO setup in Oman, via Rex’s subsidiary Masirah Oil Limited, is a testament to the effectiveness of this approach. Building on this success, Rex plans to replicate this model in Benin¹, West Africa. The shallow waters of Benin are conducive for the deployment of MOPUs and FSOs, and the anticipated results are expected to mirror the Group’s achievements in Oman.
Rex subsidiary Masirah Oil Ltd’s MOPU and FSO setup in Yumna Field, Oman.