Introduction to Production Technologies

Module 2: Production Technologies Introduction to Production Chemicals

Production Chemicals: Course ObjectivesAfter completing this module, you should be able to:Discuss Production Chemical Treatment TypeDescribe key Production Chemical Application LocationsDiscuss why Chemical Management is important , Recognize IPCE and know its Key ObjectivesRecognize KemTrax and why is it used

2Production Chemicals: Service Definition MI SWACO Production Technologies provide Chemical Additives for the treatment of hydrocarbon production and processing issues and Integrated Management of these functions for Exploration and Production operating companies.

Importantly these solutions must ensure optimal treatment cost while meeting production objectives and legislated water quality targets, concurrent with ensuring required oil or gas quality. All in a safe and environmentally responsible manner.

Production Chemicals: Treatment FocusProduction Chemicals Treatment CategoriesCleaning Products. Corrosion Inhibitors Defoamers Demulsifiers Hydrate Inhibitors H2S ScavengersMicrobiocides Oxygen Scavengers Paraffin Inhibitors Scale Dissolvers Scale Inhibitors . Tracer Dyes. Water ClarifiersAsphaltene Inhibition

The agreed focus of MI SWACO Production Technologies is the provision of specialty chemicals, mechanical equipment and management tools that solve operator problem/s.

Production ChemicalsOil Production Background and ProblemsProduction Chemicals: Hydrocarbon ProductionHydrocarbon Production A typical production facility flows crude oil from an underground rock reservoir following drilling and completion. Crude oil is lifted to the surface under its own pressure or with specialized equipment referred to as artificial lift. Once on the surface oil is moved through a wellhead, flowline, and on to processing facilities.

The term Crude or Crude oil refers to hydrocarbon product ranging from light mobile gases and liquids through to near-solid waxes and includes associated aqueous brine and minor amounts of solids.

Production Chemicals: Hydrocarbon Production

Typical Oil and Gas CycleProduction Chemicals: Hydrocarbon ProductionProcess SummaryThe process facility function is to separate the produced crude into three key streams; Hydrocarbon liquid oil Hydrocarbon gas Produced Water

Magnitude of process problems is dependent on Characteristics of the crude oil Size and type of production process equipment used

Production Chemicals: Hydrocarbon ProductionProduced Water BackgroundFor most oil and gas production fields the amount of chemical used is proportional to volume of water produced. The nature of the produced water and the volumes of produced water change with time and modifications to chemical dosing will be required in response. The technical demands and the economics of fouling control [scale, corrosion, and microbiology] may vary considerably over the lifetime of a field.

Production Chemicals: Operational VariablesProcess problem variables include;Time available to processChanges in temperature and pressure Amount and composition of associated produced waterAge of the field

Production Chemicals: Classes of Production ProblemsTypes of Production DisruptionFouling-the deposition of unwanted matter in a system including;Scale Corrosion products Paraffin wax Asphaltene Bio-fouling Hydrates

Production Chemicals: Classes of Production ProblemsTypes of Production DisruptionFlow Assurance -problems caused by fluid physical properties Foam Emulsions Viscous flow [Paraffin, Asphaltene, and Naphthenate]Integrity including safetyCorrosion related issuesEnvironmental-Water discharge Oil in WaterResidual chemical treatment content

Production Chemical UsesProduction Chemicals: Application UsesProduction treatment chemicals are added to;Improve the flow of fluids from the reservoir, Facilitate the separation of gas, liquid hydrocarbon, liquid brine and solid materials, Prevent (inhibit) the fouling of pipes and equipment, Reduce corrosion of facilities and, Remove any deposited solids. Benefits of production chemicals Improves the health and safety of workers, Improves the efficiency of operation Reduces operating costs Enables environmental compliance. Production Chemicals: Application UsesChemical Application by Operational Need

Production Chemicals: Application UsesProduction Chemicals Mitigate/ManageCorrosion Scale Demulsification Water ClarificationMicrobiological fouling/corrosionWax and Asphaltene precipitationFoam appearanceHydrate formationHydrogen Sulphide/ other sulphur compounds removal

Application LocationsProduction Chemicals: Application LocationsDownholeLocation of usageReservoir immediately around the production and injection well perforationsTransport of the oil and gas to surface. Application treatment emphasisMaintenance of flow from the perforations to the wellhead or in the case of an injection well in the reverse direction. Control of fouling - prevention or minimisation of scale and wax depositsPrevents System Fouling by inhibiting Hydrates Paraffin Asphaltene

Production Chemicals: Application LocationsDownholeSystem Integrity Corrosion control, Downhole Technology advances required:Squeeze chemicals in horizontal and highly deviated wells Down-hole separation of water requiring different chemical process aids.Smart wells inhibition of scale or wax depositsMultifunctional production chemicals.

Production Chemicals: Application LocationsSurface Processing Location: Process FacilitiesSeparationGas DehydrationWater HandlingStorage Application treatment emphasisHandling and processing of oil, gas , and produced water from the wellhead to sales export. Prevent System Fouling by inhibiting ScaleParaffinAsphaltene

Production Chemicals: Application LocationsSurface Processing System Integrity Corrosion control Flow Assurance -problems caused by fluid physical properties Foam Emulsions Viscous flow [Paraffin, Asphaltene, and Naphthenate]Technology advances required:Deepwater sea floor processingHigh pressure and temperature applicationsMultifunctional production chemicals.

Production Chemicals: Application LocationsPipelines Location of usageFlowlinesProduction headersGathering pipelinesExport pipelinesApplication treatment emphasisHandling of oil, gas , and produced water from the wellhead to sales export. Prevent System Fouling by inhibiting ScaleParaffinAsphalteneHydrates

Production Chemicals: Application LocationsPipelines System Integrity Corrosion control Flow Assurance -problems caused by fluid physical properties Flow Improvers Viscous flow [Paraffin, Asphaltene, and Naphthenate]Technology advances required:High pressure and temperature applicationsMultifunctional production chemicals

Production Chemicals: Application LocationsDeepwaterLocation of usageSub Sea HPHT* Production headersSub Sea HPHT SeparatorsExport pipelinesApplication treatment emphasisHandling of oil, gas, and produced water subsea and specifically on the sea floor. Prevent System Fouling by inhibiting ScaleParaffinAsphalteneHydrates* HPHT = High Pressure High Temperature

Production Chemicals: Application LocationsDeepwater 4. System Integrity Corrosion control 5. Flow Assurance -problems caused by fluid physical properties Flow Improvers for Low Gravity OilsViscous flow Inhibition [Paraffin, Asphaltene, and Naphthenate] 6. Technology advances required:Water shutoff treatments focusing on injection wellsScale, wax, asphaltene, hydrate inhibitors, and friction reducers effective for wide temperature extremes (0 to 250C)Investigate non-interventional methods for extending scale inhibition other than traditional squeeze treatments

Intro to Production Technologies : Key Details to this PointThe agreed focus of MI SWACO Production Technologies is the provision of specialty chemicals, mechanical equipment and management tools that solve operator problem/s. For most oil and gas production fields the amount of chemical used is proportional to volume of water produced. The nature of the produced water and the volumes of produced water change with time and modifications to chemical dosing will be required in response.Process problem variables include;Time available to processChanges in temperature and pressure Amount and composition of associated produced waterAge of the field

Summary of Production TechnologiesIntro to Production Technologies : Key Details to this PointTypes of Production Disruption includeFoulingScale, Paraffin , and AsphalteneFlow AssuranceFoam , Emulsions, and Viscous flowIntegrityCorrosionEnvironmentalOil in Water and Residual Chemical TreatmentApplication LocationsDownholeSurface ProcessingPipelinesDeepwater

Summary of Production Technologies

Chemical ManagementBackground and PrinciplesProduction Chemicals: Chemical ManagementKey Objectives and PrinciplesDeliver a reduction in Total Cost of Operation [TCO]Fundamental shift in treatment ownership to the supplierBased on a contractual structure that will allow the service company to operate in the best interests of the client, whilst providing a good return for their company.Essentially a shift from aseptic vendor/customer relationship to part of the clients company.Ultimately sharing the financial benefits the team delivers

Production Chemicals: Chemical ManagementHistory of Production Technology Supply

IPCE and KemTraxM-I SWACO approach to CMS [Chemical Management Strategy] differs from our competitorsM-I SWACO approach is characterized by the acronym IPCE - [Integrated Production Chemicals Engineering]IPCE is the M-I SWACO management approach and KemTrax is the reporting tool

Production Chemicals: Chemical ManagementCMS and KemTraxChemical Management Strategy or CMS is the vehicle for running large chemical supply contractsCMS is key to obtaining large contracts issued by Multinational OperatorsKemTrax is a software tool that M-I SWACO has developed to gain an advantage over our competitorsProduction Chemicals: Chemical Management Production Chemicals: Chemical Management

Performance Requirements Key to delivery of long term success and client satisfactionUse to jointly;Align goalsAgree and set targetsManage project feedbackMeasure performanceAdd value, reduce OPEX, and enhance QHSETwo versions exist;New application - product developmentManagement of Change PROJECT MANAGEMENT (Balanced Scorecards)Production Chemicals: Chemical Management34Set group task based on different weightings and same products offered fro change. Also include in final examProduction Chemicals: Chemical ManagementPerformance Integration

Chemical ManagementReportingKemTrax ScopeKemTrax is a software tool used for Chemical Application, Data Management and Performance Metrics review.KemTrax is the software program that ensures all the data collection, assessment, and reporting conforms with IPCEThe software is an essential tool used to deliver chemical treatment solutions expertise coupled to project management Kem-Trax collects facility specific operating data and chemical treatment records, conducts data synthesis and compares results to specific metrics commonly referred to as KPIs. The presentation of data generated may be then be adapted to routine report requirements such as analysis report writing, historical and predictive trend analysis and KPI compliance. Production Chemicals: Chemical Management37

Decisions Influenced by KemTraxImproving day-to-day management of chemical operationsProactive chemical managementAct before problems occurAlarms and interventionsTrend analysisPredictive chemical managementPlanning risk of future problemsTrend analysis and predictionAdvanced data analysisKey Performance IndicatorsManagement MonitoringReporting

Production Chemicals: Chemical Management38Example: Middle Management KPI and Scorecards Dashboard

Production Chemicals: Chemical Management39