This report includes technical progress made during the period October 2001 to October 2002. At the end of the first technical progress report the project was moving from feasibility of equipment design work to application of this equipment to the actual site for potential demonstration. The effort focuses on reservoir analysis cost estimations of not only the sub-sea processing unit but also the wells, pipelines, installation costs, operating procedures and economic modeling of the development scheme associated with these items. Geologic risk analysis was also part of the overall evaluation, which is factored into the probabilistic economic analysis. During this period two different potential sites in the Gulf of Mexico were analyzed and one site in Norway was initiated but not completed during the period. A summary of these activities and results are included here.
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