PROJECT CONTEXT

The primary objective of this project is the Installation of an offshore facility to produce
methane from methane hydrate.
Methane hydrate is a naturally-occurring clathrate in which a host lattice of water-ice
encloses guest molecules of methane. Methane, made of one carbon atom and four hydrogen
atoms, is the simplest hydrocarbon molecule and the primary component of natural gas
(NETL, 2011. Pg 8).
Research on the harvesting of methane from this source is generally in the experimental phase
with major research on the project headed by Energy companies and Universities globally.
(NETL, 2013)
Where and how do we fit in?
As a project team, comprising of 5 people, we are committed to research and feasibility studies
of the project. The evaluation and results from this research would be used to determine the
possibility of the project.
The team possesses personnel capable of handling technical, engineering, risk, reliability and
analysis concerning the project, with vast levels of experience in handling projects.
Is the project a standalone project?
The project in its entirety cannot be considered a standalone project. This is because The
main steps involved in production from a prospective field are an exploration drilling
program, fabrication and installation of the development/production platform, predrilling
during construction of the platform, construction of a gathering system, production
operations, and field abandonment. (Ayhan Demirbas,2010).
OR
As per (http://www.mh21japan.gr.jp/english/mh21-1/4-2/), It has become clear that the
existing systems are applicable, as they are or with small modifications, to the production
facilities and equipment (development systems).
Where is the project today?
The project is yet to reach the commercial stage although deeper research is on-going to
acquire deeper knowledge of the methane hydrate layers, and also about production methods.
Strategic fit
As an Energy company dedicated to finding environmental friendly solutions to the ever
increasing demand for energy, this project fits into the companys strategic objectives as the
extraction of methane from the vast amounts of Methane hydrate reservoirs addresses the
environmental implications of GHG emissions as well as contributing significantly to the
meeting the demands on energy worldwide.
Capital, Technological, Manpower, Resource Capabilities
Capital: As a leading global energy company, with already established businesses all over the
world, the capital needed to undergo this project is readily available.
Manpower: as a major player in the gas production business we do have the manpower to
carry out the project and also the capability to bring on board more hands if necessary.
Resources:
Technology: this project will involve the use of innovative technology or modifications from
previous traditional systems. In partnership with one or several proven competent companies,
this project would be a critical success.
Project challenges
1. The commercial viability of the project.
2. Insufficient research data on available methane in methane hydrates
3. Unproven methodology for commercial purposes
4. Environmental Challenges.
5. Expert knowledge.
6. Geographical location
Critical success factors:
1. Contractual Agreements with third party contractors and researchers.
2. Access to research results from already conducted experiments
3. Early release of funds for the commencement and smooth running of the
project
4. Government licence to commence project
Who are the stake holders in this project?
1. Share holders
2. Government
3. Environmental organisations
4. The global Energy market
5. The Company
6. Contractor companies
7. Research Professionals
How do you plan to make this project commercially viable?
Critical analysis and selection of alternative methods and processes of production of methane
from methane hydrate will be utilized in making the final selection for the project.








NETL, 2011. Energy Resource Potential of Methane Hydrate. [Online]. Available from:
http://www.netl.doe.gov/technologies/oil-gas/futuresupply/methanehydrates/maincontent.htm
Accessed: 18/10/2013.
NETL, 2013. The National Methane Hydrates R&D Program, DOE/NETL Methane Hydrate Projects.
[online]. Available from: http://www.netl.doe.gov/technologies/oil-
gas/FutureSupply/MethaneHydrates/projects/DOEProjects/DOE-Project_toc.html. Accessed:
16/10/2013
The Energy Collective, 2013. Japan's Methane Hydrates and the Future of Global Energy. [online].
http://theenergycollective.com/sbattaglia/200361/methane-hydrate-future-of-energy.
Posted: 19/03/2013. Accessed: 19/10/2013