Ditc Commb Energy 0188

Oil & Gas Operational Excellence

8th Africa Oil & Gas ConferenceMorocco 2004

Phil MilletteOil & Gas Industry ConsultantHoneywell Process Solutions

Not an official UNCTAD record

Content Owner: Phil MilletteLast Modified: Apr, 2004

Process Solutions

AgendaAgendaAgendaAgenda

• Introduction• Oil & Gas industry drivers / challenges• What is Operational Excellence?• Solution components & Customer Examples


Process Solutions

Company OverviewCompany OverviewCompany OverviewCompany Overview

• 108,000 employees in nearly 100 countries

• A Fortune 100 company – $23 billion sales in year 2003

• One of 30 select companies represented by the Dow Jones Industrial Average

• On Money magazine’s list of 75 Best Benefits companies for the third consecutive year – December 2003

• Winner of the Technology and Business Vision Award from Start magazine and Microsoft®, and the Control Engineering Editors’ 2003 Choice Award, for Honeywell’s Experion PKS™ system, an integrated solution that boosts manufacturing capacity and cost effectiveness.


Process Solutions

Honeywell’s Business SegmentsHoneywell’s Business SegmentsHoneywell’s Business SegmentsHoneywell’s Business Segments

Broad and Diverse Businesses, Technologies and Products Broad and Diverse Businesses, Technologies and Products

2003 Sales

$8.8B$8.8B

$3.7B$3.7B

$7.5B

$3.2BAerospaceSpecialty

Materials

Automationand Control Solutions

Transportation Systems Total = $23B


Process Solutions

• Businesses:– Honeywell Fire Solutions– Honeywell Sensing & Control

Now also including Honeywell Sensotec– Honeywell Environmental Combustion & Control– Honeywell Building Solutions– Honeywell Process Solutions

• Products: – Controls for heating, cooling, ventilation, air conditioning,

humidification, industrial process automation, video surveillance, people and asset tracking and access control equipment;

– Security/fire alarm and industrial safety systems, home automation systems;

– Advanced software applications for home/building control and industrial optimization;

– Sensors, switches, control systems and instruments for measuring pressure, air flow, temperature, electrical current and more

– Drinking water solutions– Combustion control solutions– Commitment to service

• Global Presence:– 40,000+ employees in 100 countries– Headquarters: Minneapolis, Minnesota

• Sales --- $7.5 billion in 2003

Automation and Control SolutionsAutomation and Control SolutionsAutomation and Control SolutionsAutomation and Control Solutions


Process Solutions

AGIPAmerada HessAramcoAshlandBritish Gas

Dakota GasificationDiamond ShamrockDome PetroleumELFEl Paso Natural Gas

Examples - Honeywell Oil & Gas ExperienceExamples - Honeywell Oil & Gas Experience

Northwest PipelineOccidentalPetronasPhillipsShell

British PetroleumBritoilBotasChevronCorpoven

EnronEnterpriseExxon/EssoKuwait OilMobilMarathon

StatoilSunTexacoTotalTransokWoodside

customerGas Plant

AmocoTexacoExxonConocoGas Plants

CorpovenGas Fractionation /Marine Terminal Sonatrach

LNG Plant

WoodsidePetroleumLNG/Platforms

EPMI/PetronasPlatforms

PetronasGas Plants

AramcoProductionProjects

Over 15 MajorNorth Sea Platforms

TuhaOil Field

TarimOil Field

DukhanOil Field

AGLPipeline

PemexGas Fractionation

Atlanta Gas LightLNG Plant

ChevronOil Field

Amoco TrinidadOffshore PlatformLNG Plant

India OilPipelineBP

Gas MeteringShellPipeline

KazakhstanWell Field / Fractionation

British PetroleumWell Field

British PetroleumMarine Terminal

Chevron Escravos

Sasol


Process Solutions

Honeywell controls offshore platforms and FPS in all worldwide regions• North Sea (UK and Norway)• Middle East• Australia• Southwest Asia

• West Africa• Gulf of Mexico• Caribbean

Recent EMEA Offshore Projects•Shell Shearwater, North Sea •Mobil Galahad, North Sea•Amerada Hess Scott, North Sea•Shell Brent, North Sea•Chevron Escravos, Nigeria•Chevron Robertkiri, Nigeria•Statoil Kvitebjorn, Norway•Esso Ringhorne, Norway•Veba Hanze 2, The Netherlands•ExxonMobil Skene/UK•BP Clair UK / FEED•Dong Naturgas Torup, Denmark

Selected FPSReferences:-Hydro Troll Olje / Norway- Semisub.-Texaco Captain / UK FPSO-Woodside Laminaria / Australia FPSO-Esso Jotun / Norway FPSO

Oil &Gas - Offshore production ReferencesOil &Gas - Offshore production ReferencesOil &Gas - Offshore production ReferencesOil &Gas - Offshore production References


Process Solutions

Operational Excellence Solutions

ProductionOFF-SHORE PLATFORMS

ONSHORE GAS/OIL FIELDS

Transportation

Field Instrumentation

SCADA / DCS & Safety, Security Systems

Oil & Gas Process & Production Management Solutions

Asset Management & Security Solutions

Honeywell Integrated Oil & Gas SolutionsHoneywell Integrated Oil & Gas Solutions

Processing

PRODUCTION TERMINAL

GAS PLANTBusiness metrics

Bestpractices

ImprovedPerformanceLower OPEX


Process Solutions

Oil & Gas Operational ExcellenceOil & Gas Operational ExcellenceOil & Gas Operational ExcellenceOil & Gas Operational Excellence

• Performing at best-possible state–People–Assets–Process–Business

• With the equipment, assets, production configuration we have today

• From minute-to-minute, hour-to-hour, day-to-day

• For improved management of–Safety, –Reliability, –Security, –Process & production performance optimisation, –Production management


Process Solutions

Operating Excellence: Achieving Optimal asset Operating Excellence: Achieving Optimal asset performanceperformanceOperating Excellence: Achieving Optimal asset Operating Excellence: Achieving Optimal asset performanceperformance

DCS/ESDRegulatory

Control

APC

Optimization

Operator

CMMS

AssetDiagnostics

Maintenance

Approach:Decision Support

Diagnosticfor Integrated Teams

Remote expertdiagnostic fromsupport center

The Future?In use now!

onshore & offshore production

ProcessSensors

Process & AssetSensors

AdvancedAnalysis

tools

Security

Business Management

Flexible real-time technology must support the operational business processes


Process Solutions

Operating Excellence ChallengesOperating Excellence ChallengesOperating Excellence ChallengesOperating Excellence ChallengesProduction Cost reduction / control–Reliability, Uptime!–Personnel–Work Practices improvement

Increased top line revenue–Reliability, Uptime!

–Maximize production from existing facilities–Push constraints–Optimize process

Improve People Effectiveness–Work Practices improvement

–Learn from Operations

–Safety Management

Detect Problems, Mitigate Impact–Safety Management

–Reliability, Uptime! : need to track health and performance of all plant and automation assets

–Environmental Monitoring / compliance

Lifecycle Costs– Plan and Manage Version-up & obsolescence

to capture operational improvements– Integrated Management of automation asset

WITH the plant asset

Focus on more production, more reliability, more safetyFocus on more production, more reliability, more safety


Process Solutions

Honeywell’s approachHoneywell’s approachHoneywell’s approachHoneywell’s approach• Honeywell looks at all Oil & Gas operational Business

Processes– Provide solutions that are focused on enabling the day-to-day,

hour-by-hour decisions Including closed loop response capability where appropriate and

possible Minute-by-minute events & activities

• Not focused on the drilling business processes• Not focused on detailed reservoir/petrophysic part of oil

& gas asset management• Knowledge of

– Automation & safety– Process– Advanced Control– Asset Management– Production Management– Security– IT / Integration Expertise


Process Solutions

Figure from POSC SmartFields meetings: Figure from POSC SmartFields meetings: Loop Characteristics (Shell)Loop Characteristics (Shell)Figure from POSC SmartFields meetings: Figure from POSC SmartFields meetings: Loop Characteristics (Shell)Loop Characteristics (Shell)

subjectivityuncertaintycomplexity

organizational scale

production optimization

production operations

Reservoir Surveillance

cycle time

Physical Asset

Models

Pla

ns &

Decis

ion

s

Data

Physical Asset

Models

Pla

ns

&D

ecis

ion

s

Data

generate and

evaluate options

inte

rpre

t

and m

odel

exec

ute

acquire data

Physical Asset

Models

Pla

ns

&D

ecis

ion

s

Data

generate and

evaluate options

inte

rpre

t

and m

odel

exec

ute

acquire data

Physical Asset

Models

Pla

ns

&D

ecis

ion

s

Data

Field Development

Focus on short term improvement opportunities, with

given assetEnable Ease of information exchange to

reservoir surveillance function


Process Solutions

Experion, PlantscapeTPS

Operations

EnterpriseReservoir

Management

Reservoir Management

ERPERP

Oil & Gas Operations Excellence: Solution Oil & Gas Operations Excellence: Solution Map Map Oil & Gas Operations Excellence: Solution Oil & Gas Operations Excellence: Solution Map Map

Field

SecuritySecurity

Regulatory Reporting


Enterprise IntegrationEnterprise Integration

Integrated FieldIntegrated Field

APC & OptimizationAPC & OptimizationAsset ManagementAsset Management

Production Management


Decision SupportDecision Support

Operator Effectiveness


Production ReportProduction Report

Intelligent Choke CntrlIntelligent Choke CntrlPipeline Leak Detection*Pipeline Leak Detection*

Well Test ManagerWell Test Manager

Production Event Analyst& Shift Report


Metering ReportMetering Report

Production SummaryProduction Summary

Shut Down AnalyzerShut Down Analyzer

Safety StateSafety State

PCC Rich Client &Thin Client


Safety Valve ScoutSafety Valve Scout

KPI ManagerKPI ManagerOperations Management

Operations Management

All the components to achieve Operations ExcellenceAll the components to achieve Operations Excellence


Process Solutions

Operational Excellence Solutions: People, Operational Excellence Solutions: People, BusinessBusinessOperational Excellence Solutions: People, Operational Excellence Solutions: People, BusinessBusiness• Production Control Center (PCC) enables improved decision

making & Improved visibility of facilities• Installations on Statoil Kvitebjorn, Norsk Hydro Troll B, BP Ula,

BP Valhall, ChevronTexaco Alba, Talisman Gyda• Consistent management & work practices

– Helps operators, managers focus on the real issues: find / focus on bottlenecks to improve production and manage important safety issues

– Single environment to manage all operations work related tasks– Assign causes for production deferments– Includes safety valve scout, shutdown analyzer, production event

analyzer, Well test Manager– Integrates production, process, safety, asset and work flow

information together– Designed for Collaborative work, improving work practices, such as

reducing routine work load

• Matches the vision of major oil companies• Is the overall framework enabling new value to be captured from

even existing historians• Use from any web page

Safe and Efficient operations: It's like having the best operator on every shiftSafe and Efficient operations: It's like having the best operator on every shift


Process Solutions

Operational Excellence Solutions: People, Operational Excellence Solutions: People, BusinessBusinessOperational Excellence Solutions: People, Operational Excellence Solutions: People, BusinessBusiness

• Available functions / applications/ reports with PCC:

• Production Overview – advanced form of report and display• Production Reporting• Well Test Manager• Production Balance• Production Allocation• Metering Reports• Lab, chemicals, Emissions tracking• Operations Monitoring & KPI - Manager• Flexible Shift Reporting system• Production Event Analyst• Weather Information• Load Stabilisation

– With a partner

• Pipeline Management, including multiphase– With Fantoft as pipeline management partner


Process Solutions

A Typical Control Room ScreenA Typical Control Room ScreenA Typical Control Room ScreenA Typical Control Room Screen

Proprietary and Confidential


Process Solutions


Operations

EnterpriseReservoir

Management


ERPERP


Field

SecuritySecurity



























Process Solutions

Operational Excellence Solutions: AssetsOperational Excellence Solutions: AssetsOperational Excellence Solutions: AssetsOperational Excellence Solutions: Assets• Asset Management Solutions enables path to Best

Practice AND lowest cost reliable Oil & Gas Operations– Overall

Improvements due to 3-5% increase in production reliability & increase in throughput

In some markets, savings in cost $1M-$2M due to staff effectiveness & reduction in maintenance cost

– Large installation on Pemex Cantarell– Lower deferred production from fewer trips and unplanned

shutdowns– Lower maintenance cost through better real time follow up of

equipment performanceTransmitters, valves, process equipment, exchangers, vessels,

pumps etcAll plant assets can be tracked by Asset Manager

– Catch Abnormal Situations early!Alarm Configuration management, Early Even Detection

Reliable means more production, lower cost, more safetyReliable means more production, lower cost, more safety


Process Solutions

Operational Excellence Solutions: AssetsOperational Excellence Solutions: AssetsOperational Excellence Solutions: AssetsOperational Excellence Solutions: Assets• (2) Asset Management Solutions enables path to Best

Practice AND lowest cost reliable Oil & Gas Operations– Through TurboSuite: Better follow-up of turbo-machinery

performance due to advanced real-time performance tracking– Lower cost of work order generation – automatic links to ERP

systems– Safety Valve Scout & Shutdown Analyzer: Lower cost of

safety system tests – obtain business value from analyzing actual shutdown / safety system performance.

– Opportunity to foster joint work teams – maintenance and operations

– Alert Manager: Better engineering and management response due to quicker notification of alerts: issues and potential problems, using automatic email, SMS etc messaging.

Reliable means more production, lower cost, more safetyReliable means more production, lower cost, more safety


Process Solutions

Solution ComponentsSolution ComponentsSolution ComponentsSolution Components• Asset Effectiveness

– Early, rich diagnostics per type of equipment Including partnerships with 3rd party equipment

suppliers

– Diagnostic knowledge with the equipment itself

– Automate work processes– Wireless field work support– Calibration support– Compressor / rotating equipment monitoring– Control Loop monitoring– Links to CMMS, documentation

• Safety Management Reporting– Checking Shutdown systems – Safety Valve monitoring– Safe management of the Alarm system

• Remote Management– Example Solutions

– Web-framework for oil & gas operations and production management


Process Solutions

The Asset Manager PKS – responding to faults

Fill out a work order …

Clicking on the advised action can trigger an action--in this case a work order

An action has many different possibilities

Send a page ...

Or an email...

Or run a program …


Process Solutions

Asset Manager as the key real-time notification Asset Manager as the key real-time notification and work flow platformand work flow platformAsset Manager as the key real-time notification Asset Manager as the key real-time notification and work flow platformand work flow platform

OPC

APCScout

APCApps

Asset Manager

PKS

Safety Valve Scout

Asset ManagementCollaborative Control Center

Scouts

SafetyValves

AllLoops

Loop Scout

TurboSuite

Rotating

ProfitSensor

Data Scout

HART & FF

ShutdownAnalyzer

Valves..All

ExperionPKS

Virtual

Notification via all methods, including

Experion Alarm interface

Collaboration and Impact Assessment

Documentation, Information

IntelaTrac PKS

Field Entry, View

The plant is more than the sum of the instruments

Usable on any facility, whatever the automation platform


Process Solutions


Operations

EnterpriseReservoir

Management


ERPERP


Field

SecuritySecurity



























Process Solutions

Operational Excellence Solutions: ProcessOperational Excellence Solutions: ProcessOperational Excellence Solutions: ProcessOperational Excellence Solutions: Process• APC (Advanced Process Control) and Optimization

technologies boost Production, providing a direct Revenue Increase– Honeywell’s APC and Optimization have repeatedly been used to

increase Production and Reduce Cash Costs.

–Can increase production by 2% to 10% depending on current conditions

• Intelligent Choke controller– Flexible control able to smooth impact of slugs by manipulating

choke valves.– Reduces trips due to smoother resulting level control in high

pressure separator. Documented cases on Shell platforms

• Multivariable control – Profit Controller– Mature technology– Proven in oil & gas, onshore and offshore applications

In one recent case, increase was 6000 bbl/d. Also documented cases on BP Ula platform, Woodside

• Optimisation – Gas Lift and field wide– Coordinating multiple controllers for optimal performance– Enhanced optimisation by modeling from sand face to surface,

through gathering network and gas lift. – with partner EPS.APC provides proven value in oil & gas!APC provides proven value in oil & gas!


Process Solutions

Field Optimization NetworkField Optimization Network

iDOWell, Pipe Network, Facilities

iDOWell, Pipe Network, Facilities

Profit OptimizerProfit Optimizer

Profit ControllersProfit Controllers

SCADASCADA

UNIFORMANCEUNIFORMANCE

Facilities

Manifold

Well Choke Valve

Field Pump

Oil

Gas

Gathering Compressor


Process Solutions

SEPARATOR 1MV CONTROL

PVO OBJECTIVE FUNCTION{PRODUCT VALUES, ENERGY COSTS}

Profit Optimizer – MV Control coord

Wells, Separators

Profit Bridge

Production Planning

SEPARATOR 2MV CONTROL

GAS LOOPMV CONTROL

MULTIPLECHOKES

MV CONTROL

i-DOi-DO Server

i-DO Client

Targets

LAN/WAN/Internet/Intranet

Review,Approval

EngineerPCs

Well PerfCurvesNetwork

Model and

OptimizerPres, kh,Skin

TransientPressure Analysis

Pres,GOR, BS&W

ReservoirModels

ProductionTests

WellModels

Production Data

Management

EconomicParameters

GAIN

AIM

i-DO SUSTAIN

Profit Controllers(RMPCT)

Integrated Field-Wide optimisation:

Closing the loop with Multivariable Control


Process Solutions

Additional areas covered by HoneywellAdditional areas covered by HoneywellAdditional areas covered by HoneywellAdditional areas covered by Honeywell

• Operator Training simulators– High fidelity– Platforms, gas plants etc, as well as LNG– Shell, BP as major customers

• Business integration– Large project capability

Experience at Nodco, Statoil, others– Integration to SAP via Business Hiway– Implementation of SAP via partner

Experience at Sasol– Implementation of Maximo Maintenance system

• Improved Production Site, Plant & platform security– Honeywell security solutions include perimeter protection, Honeywell cctv

cameras, Access control, Personnel on Board Implement and link in 3rd party marine or other harsh service cameras

– Central Management capability – country wide– DVM: Digital Video Manager– TemaLine Access Control– Integrated, unique real-time monitoring platform – EBI.

Including Caspian Pipeline consortium, Shell, Spanish nuclear plants, Dubai airport, Sydney Olympics


Process Solutions

Oil & Gas Operational Excellence: Oil & Gas Operational Excellence: conclusionsconclusionsOil & Gas Operational Excellence: Oil & Gas Operational Excellence: conclusionsconclusions

• It’s achievable now• Technologies exist to support integration of safety,

reliability, process and business management as well as security of facilities

• Benefits are real: in increased production, reduced lifting costs, improved reliability and safety

• Does not require a capital project to get started• Is not dependent on the underlying automation

platform

Documents

Ditc Commb Energy 0188