each platform which increases the number of personnel and supplies 

 needed. Second, success in a portion of a basin stimulates increased 

 exploratory activity by other lease-holding companies. A permanent base 

 contains more extensive and sophisticated facilities than a temporary 

 base in order to sustain the increased volume of supply-vessel traffic 

 which results from the escalated level of offshore activity. 



Site Requirements 



A site for a shore base to support offshore oil or gas activity 

 must be selected with care, so as to minimize the risk of delay and to 

 avoid increased costs to offshore operations. Nine site requirements 

 are commonly investigated to determine a location for a permanent service 

 base [34]: 



1. Proximity to offshore oil or gas activity 



2. Existence of previous bases 



3. A sheltered harbor of suitable size and draft with 



available capacity 



4. An adequate waterfront site with contiguous back-up lands 



5. Suitable airport/heliport 



6. Adequate roads 



7. Proximity to an established community 



8. Temporary base site 



9. Other factors 



1. Proximity to offshore activity : This requirement reduces 

 the running time required for boats to ferry supplies from the 

 service base to the offshore installations. Proximity is criti- 

 cal because good weather conditions may last for only short 

 periods of time and because the operation of supply boats is 



the greatest operating expense of a supply base. 



2. Existence of previous bases : When a company has a permanent 

 base in the general area of a new lease, it will either operate out of 

 this base (rather than build a new one) or set up a satellite base for 

 the small, day-to-day logistical activities and use the permanent base 

 for transporting the bigger supplies and equipment. 



The decisions to establish a temporary base that is nearer to the 

 locus of offshore activity than an existing permanent base affects space 

 requirements for storing and loading supplies, as well as the volume of 

 boat and helicopter traffic. 



New facilities to service a rig operating within 100 miles of a 

 permanent service base are unlikely. If a rig is between 100 and 150 

 miles away from a permanent service base, a temporary base is likely to 



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