KMI International Symposium 30th March 2011 - Expo 2012 · KMI International Symposium ... Hands on and Lessons Learnt Experience on FPSO Perintis, ... Deepwater Projects in Malaysia

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Experiences & Challenges in FPSO/FSO Operations in Malaysia

Captain Hisham Hashim30th March 2011

KMI International Symposium

30th March 2011


Presentation Structure

Global Mariner Offshore Services (GMOS)

Definition. Why FPSO/FSO? Applications

Hands on and Lessons Learnt

Experience on FPSO Perintis, FSO Ratu Songkhla and FSO

Puteri Cakerawala

Recent Malaysian Outlook

Introduction

Floaters Outlook

Issues &

Challenges

Concluding

Remarks

FPSO/FSO

Managing Issues

and Challenges

Future Prospect


GMOS - What we do

•Network of associate consultantacross the globe with specificexpertise

•Services in business & technicalmanagement consultancy, marketing& sales consultancy and offshorerenewable energy.

Global Mariner Offshore Services

•Established in 2010

•Marine Consultant Specializing andTechnical Services Company specializingin the Offshore Energy Sector


Floating Production, Storage and Offloading

• Marine facility to provide storage and tank management

• Topside process plant for hydrocarbon separation and

stabilisation (FPSO)

• Other ancillary services i.e. Power Generation, Water Injection,

Gas Lift and Gas Export

• Terminal facility - Pilotage, Tandem Mooring, Custody Metering

and Offloading

DefinitionFPSO/FSO


Is it a Marine or Oil & Gas facility?

Kikeh

Source: PraGlobal

FPSO/FSO

Tanker Production

Platform


Is it a Marine or Oil & Gas facility?

Kikeh

Source: PraGlobal

FPSO/FSO

Tanker Production

Platform

FPSO


Kikeh

Source: PraGlobal

FPSO/FSO

• Suitable for Marginal Fields - Hummingbird concept

• Offshore Development Hubs

• Early Production System (EPS)

• Life of field production

• Extended Well Test (EWT)

Applications


Kikeh

Source: PraGlobal

FPSOs are preferred in frontier offshore regions and

Marginal Fields:

• Adaptability for water depth

• Easy to install

• Flexibility to take crude oil directly to the refining centre of choice.

• Do not require a local pipeline infrastructure to export oil

• Can be a conversion of an oil tanker or can be a vessel built specially for the

application.

• Reduced upfront investment

• Earlier cash flow because they are faster to develop than fixed platforms

• In areas of the world subject to cyclones (northwestern Australia) or icebergs

(Canada), some FPSOs are able to release their mooring/riser turret and steam

away to safety in an emergency

• Retained value because they can be relocated to other fields

• Abandonment costs are less than for fixed platforms

Why FPSO/FSOFPSO/FSO


Kikeh

Source: PraGlobal

The graphs below illustrates that FPSOs are by far the preferred choice among

the different floating production concepts. 143 FPSOs are currently working or in

yard, preparing for re-deployment.

FPSO - a preferred choice for floating production solutions

Distribution producing FPUs

Source: Pareto Research, ODS Petrodata

Preferred Choice of FPUFPSO/FSO


Floaters in MalaysiaFPSO/FSO


FPSO/FSO's in operation in Malaysia

FPSO/FSO Vessel Name Field Operator FPSO/FSO Owner

FPSO Perintis PCSB M3nergy

FPSO Armada Perkasa PCSB Bumi Armada

FPSO Bunga Kertas PCSB MISC

FPSO Kikeh Murphy MISC/ SBM

FSO Esso Mercia Exxon/ PCSB SBM

FSO Dulang PCSB MISC

FSO Ross Sea Talisman Tanker Pacific

FSO Cendor Petrofac MISC

FSO Abu PCSB MISC

FSO Angsi Talisman MISC

FSO Orkid Talisman MISC

FSO West Patricia Murphy Tanker Pacific

FSO Cakarawanla* Carigali/Hess

Carigali/Hess (M3nergy

Operator)

FSO Ratu Songkhla* CPOC M3nergy

Total of 4 FPSO and 10 FSO (2 in Malaysia

Thailand JDA)

FPSO Armada Perkasa and FSO Esso Mercia are no longer in Operation

Kikeh

Source: PraGlobal


Specification - FPSO

Kikeh

Source: PraGlobal

FPSO/FSO

• Owner : X

• Operator : X

• Year built / converted : 1984 / 1999

• Conversion Shipyard : MSE Sdn Bhd, Malaysia (Now MMHE)

• Classification Society : ABS

• Tonnage : 94,000 DWT

• Storage capacity : 650,000 bbls

• Production capacity : 35,000 bopd

• Gas Compression : 100 MMscfd

• Accommodation : 75 men

• Mooring System : Ext. turret, 6 anchor legs

• Production/ Gas Export/ WI/ Gas Lift : 1x16” & 2x14” / 1x12” / 1x6” / 1x4”

• Product : Crude oil (waxy, about 20%)


Operations and Maintenance Overview

Kikeh

Source: PraGlobal

FPSO/FSO


Who are the Stake Holders

Kikeh

Source: PraGlobal

FPSO/FSO

Client (PetronasCarigali)

Class

Public

Shareholders

EmployeesFinanciers

Suppliers and Sub-

Contractors

Insurers and Underwriters

HostGovernment


Kikeh

Source: PraGlobal

• Environmental concerns, political stability, access, remoteness

and, of course, the price and price stability of the produced

gas/liquids.

• Conscious targeting of projects. Contracting T&C.

• Appreciation of customer & host country perspectives

• Corporate culture; right blend of shipping & offshore

• Continuous HSE attention

• Up-time focus. Reliability and Asset Integrity. Legacy equipment

• “On time within budget” construction/conversion/redeployment

• Financial strength

• Availability of crude oil tankers for fast-track conversions

Issues and Challenges for all FPSOFPSO/FSO


Issues and Challenges for all FPSO

Kikeh

Source: PraGlobal

FPSO/FSO

15

• Equipment Standardisation

• Changing from periodic survey cycle to a

5 year continuous survey cycle.

• Legacy equipment spares. Long lead

items

• Planned maintenance schedules

• Materials Selection

• Riser and Mooring Tensioning Systems

• Hull Coating

• Offshore Loading Operability

• Contractor Bid Evaluation

• Ageing facility

• Ballast tank


Key Issues – Own Experience

Kikeh

Source: PraGlobal

FPSO/FSO

• Poor Operational Efficiency & equipment selection (failures, poor performance)

• cost driven choices –Owner cost challenge, operability not the driver

• misapplication of some major equipment (Crude separators)• unproven technology (control system, PCHE heat exchangers)

• Ship-building standards versus FPSO requirements• Layout• Quality• Long term operability/repair philosophy and strategy• Accessibility for maintenance – corrosion and overhauling

• Process/Marine interface• deck movement/flexing. Difference in static and dynamic conditions

of operation – Minox tower, TEG contact level and separator level.• Legacy equipment support services

• Package approach• lack of integration - ESD, F&G not common• many suppliers – differing standards and integration issues• different standards/philosophies

• Distinguish between FPSO (offshore) and marine practices & standards• HSE awareness and appreciation


Key Issues – Grouping of “3P “

Kikeh

Source: PraGlobal

FPSO/FSO

• Retention

• Competency

• Safety CulturePeople

• Uptime & Performance Assurance

• Interfacing with legacy equipment

• Integrity issues. Ageing facility.Plant

• Standards

• Systems

• ManualsProcedure


Key Issues - Major Works

Kikeh

Source: PraGlobal

FPSO/FSO

• Equipment failure & repairs

• Heat Exchangers, Gas Turbines, Flare Header, Turret

Swivel, Fire & Gas system, Boilers

• Export Gas dehydration unit failure to meet Dew Point

requirement

• Crude carry-over to the gas compression

• Failure of the PCHE compact heat exchanger for the gas

cooler

• Health, Safety & Environment incidents

• Upgrades

• Dehydration, Compression, DCS, Materials Handling,

Insulation, Vibration/Noise reduction

• Ballast tank repair – In-situ and online steel renewals


Issues & Challenges for the Ballast Tank Steel Renewal

Kikeh

Source: PraGlobal

FPSO/FSO

Technical• Design basis

• R&D

•Functional

• Availability

Schedule• Credibility

• Who’s float

• Engineering

• Procurement

• Construction

• Installation

Owner• Financial ability

• Corporate policy

• Reporting

•Monitoring

Offshore• Resources

• Acts of God !

• Tank management

Operator• Bring in early

• HSE

• Budget

• Uptime

•ResourcesContract T&C

• Do not close eyes

• Include legal

from day 1

• Manage

Insurance• Coverage

• CostCustomer• Value for money?

• Field risk

• Mitigation

• Resources

Sub

Contractors• Project packaging

• Capabilities

• Capacities

• Changes

Logistics• Boat schedules

• Availability

• Customs

Class• Verify action plan

•Approval

QHSE


Ballast Tank Repair and Steel RenewalFPSO/FSO

20

Igloo /

HabitatDeck

Cutting

Marking in Tank


Ballast Tank Repair and Steel RenewalFPSO/FSO

21

Hotwork Confined space

Bulkhead holed


Issues & Challenges – Pay close attention

Kikeh

Source: PraGlobal

FPSO/FSO

22

Leadership / Roles & Responsibility.

Hazard/risk evaluation processes.

Management of Change & Maintenance Systems.

Protective Systems/Safety Critical Equipment

Strategy/Processes /Plans linked to AIM Strategy.

Competency of staff and status of procedures.

Effective incident investigation/emergency response

Performance management & assurance

Processes and ageing facility (converted FSO/FPSO)

Legacy equipment to match new production modules

Hybrid equipment needs hybrid personnel

Different cultures between Marine and Offshore disciplines


Main Lesson Learnt – What is Needed?FPSO/FSO

23

EFFECTIVE MAINTENANCE & INSPECTION MANAGEMENT SYSTEM• Can be an optimum mix of preventive, predictive and corrective maintenance. The

execution of the inspection & maintenance plan will be prioritised, resourced and

performed to the required standard of safety and environmental attention.

• The efficiency of the maintenance plan, maintenance strategy and performance of

maintenance tasks will be measured by means of production and operational

parameters.

This is currently developed further to be

ASSET INTEGRITY MANAGEMENT SYSTEM (AIMS)


Asset Integrity Management System (AIMS)

Kikeh

Source: PraGlobal

FPSO/FSO

24

Management Strategy

Survey and Inspection

Plan

Survey and Inspection Execution

Anomaly Assessment

Asset Integrity

Examination

Implement Changes

ASSET

INTEGRITY

MANAGEMENT

SYSTEM


Kikeh

Source: PraGlobal

• 106 marginal fields with a total of 580 million barrels of

oil equivalent

• Petronas plans to develop 25%, or 27, of the total

marginal fields

• Marginal field will be group together in a cluster of 4-5

fields each for development

• Development costs were high as much as USD800

million.

• Increase in Deep Water exploration

Outlook – Malaysian MarketFPSO/FSO


2011 and Beyond

Kikeh

Source: PraGlobal

Malaysia Floaters Out look

Deepwater Projects in Malaysia

Estimated ReservesWater Depth

Kikeh 400 mboe 1,300

Gemusut 500 mboe 1,200

Malikai 100 mboe 480

Kebangan 2 tscf 200

Jangas 80 mboe 1000

Ubah Crest 200 mboe 1000

Pisangan 55 mboe 1000

Kamansu 2 tscf 1000

Deep-water oil and gas fields contributes to 4% of the Malaysia’s hydrocarbon production

22 Deepwater/ Ultra Deepwater blocks

More than 163 oil & 216 gas fields have been discovered – Only a fraction of those are producing


Outlook – Malaysian Market

Kikeh

Source: PraGlobal

FPSO/FSO

Marginal Fields

Deepwater Fields

Isolated Fields with no existing

pipeline infrastructure


Opportunities in the Malaysian FPSO Market

Kikeh

Source: PraGlobal

Concluding Remarks

1. Industry’s move into deepwater areas

2. Exploitation of marginal fields

3. Growing emphasis on “fast track” and/or phased

development

4. Continuing expansion in the use of subsea production

technology

It is still a “Sunrise Industry”

GlobalMariner Offshore Services Sdn BhdCapt. Hisham Hashim

[email protected]

A-16-9 Menara UOA BangsarJalan Kemuja, Bangsar

59200 Kuala Lumpur MalaysiaTel: +603- 2282-5280

Fax: +603- 2282-5258

mailto:[email protected]

Documents

KMI International Symposium 30th March 2011 - Expo 2012 · KMI International Symposium ... Hands on and Lessons Learnt Experience on FPSO Perintis, ... Deepwater Projects in Malaysia