Sassan Field A Case of A Major Offshore Production Operation in the Persian Gulf

Abstract Lavan Petroleum Company (LAPCO) was formed in April 1965 as a joint structure operating company, one-half owned by the National Iranian Oil Company and one-half owned equally by four American companies: Atlantic Richfield Company, Murphy Oil Corporation, Sun Oil Company, and Union Oil Company of California. On August 31, 1965, Well 2S-l was spudded in one of three offshore Persian Gulf tracts explored by LAPC9, and later proved to be the discovery well of the Sassan Field with no existing production operations and only a drilling and exploration staff, LAPCO embarked on a program to design, install, and commission this major offshore production operation. The resulting facilities, capable of producing and handling 220,000 barrels of oil per day, were on stream by June 1968. Consultants and contractors were used for nearly all phases of evaluation, engineering, design, and construction. The development plan for Sassan Field included several unique features more or less forced upon LAPCO by the Axtent and location of the field. These include: 1. Individual well structures and flowlines, in water" depths of 68 to 100 feet. 2. High throughput of live oil with no surge capacity on the offshore flow station. 3. An 88 mile, 22 inch diameter pipeline between the field and Lavan Island through water depths up to 306 feet. This paper emphasizes the importance of effective planning to achieve a rapid development and installation of a major crude producing, handling, and loading complex, both onshore and offshore. It also demonstrates that even the best of planning cannot anticipate all eventualities and that some delays and extra costs are unpredictable in a project of this magnitude. Introduction The story of the Sassan Field may be said to date from the 5th century A. D., for at that time its namesake, the Sassanian Dynasty, was at the height of its ruling power over all of ancient Persia. Fifteen centuries later, the "modern" Sassan story began when a Joint Structure Agreement became effective February 13, 1965 between the National Iranian Oil Company (NIOC) and four American oil companies: Atlantic Richfield Company (the coordinator), Murphy Oil Corporation, Sun Oil Company, and Union Oil Company of California. This Agreement led to the creation in April 1965 of Lavan Petroleum company (LAPCO) as the operator. This new company was charged with the exploration, development, and exploitation of three tracts in the Persian Gulf totaling about 8,000 square kilometers. (See Illustration No.1.) LAPCO's initial well, No. 2S-l, was spudded on August 31, 1965, and in November, a drill stem test yielded crude oil from a formation at 7968 feet which was eventually tested at 7788barrels of oil per day (BOPD). through 3-1/2 inch drill pipe and clearly established this as a commercial well. By December when the well was completed, there was little doubt that LAPCO would soon be developing a major offshore production operation.