Oil & Gas introduction Course for Non-Engineers SEC

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Module 2

Offshore Field Development

Oil & Gas introduction Course for Non-Engineers SEC

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1. Crude Oil

First stage Processing: (Stabilisation)

1. Water separation2. Associated Gas and solids seperation3. Desalination (take salt out)

Done at about 20 bars and 50 degree Celsius

Crude oil is a very complex mixture of compounds composed of (mainly) carbon, hydrogen, oxygen, and sulfur. Of these elements, carbon and hydrogen are by far the major components. Linked together with inter-atom bonds, these CH compounds form a dazzling variety of different kinds of molecules of many different shapes and sizes. Liquids, solids and gas.Collectively, these carbon-hydrogen compounds are referred to as "hydrocarbons."

Oil & Gas introduction Course for Non-Engineers SEC

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2. Natural GasNatural Gas: Mainly consisting of Methane (CH4).

By-product of Oil production in Vietnam.

Before natural gas can be used as a fuel, it must undergo extensive processing to remove almost all materials other than methane. The by-products of that processing include ethane, propane, butanes, pentanes and higher molecular weight hydrocarbons, elemental sulfur, and sometimes helium and nitrogen

Unit of measure:Nm3 (1 bar and 25 degrees Celsius)

Vietnam: 6.8 billion Nm3 per year

CNG = Compressed Natural Gas (still in gaseous state)

Oil & Gas introduction Course for Non-Engineers SEC

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3. Field DevelopmentAssumptions resulting from Exploration (Module 1):

1. We know where the reservoir is located and how deep;2. We know how much Oil and/or Gas is in the reservoir;3. It is economically feasible to produce the reservoir.

Field development:

What infrastructure do we need to install to bring the crude O&G to the market or shore in the most economical way?

Main driver for the costs?

CAPEX = Capital Expenses (what does it cost to put the equipment there)OPEX = Operational Expenses (what does it costs yearly to maintain it)

Oil & Gas introduction Course for Non-Engineers SEC

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MONTARA Field, Australia

Oil & Gas introduction Course for Non-Engineers SEC

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4. FEEDFEED: Front End Engineering & Design = A study used to analyze the various technical options for new developments with the objective to define the facilities required.

Answers the following questions:

- Method of production;- Location of Platform/Floating equipment;- Location Wells;- Dimension pipelines;- Capacity and location of processing;- Budget costs;- Scenarios.

Pre-FEED = Conceptual design

Oil & Gas introduction Course for Non-Engineers SEC

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5. Water Depth

- Sub sea Well head or Well head platform?

- Installation and Drilling costs?

Cuu Long Basin = 40-60 mNam Con Son Basin = 40-110 mSong Hong Basin = 30-55 m

Oil & Gas introduction Course for Non-Engineers SEC

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6. Location- How far from the shore?

- How far from the closest Processing facility?

- How far from the closest pipe line to shore?

- Is it economical to use the stranded gas?

Oil & Gas introduction Course for Non-Engineers SEC

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7. Platforms (Jacket, Module)

Top side , Module or DeckJacket

Oil & Gas introduction Course for Non-Engineers SEC

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8. Well Head Platform (WHP)

Manned or unmanned

Equipment on WHP:- Well head;- Pumps, compressors;- Generators;- Valves;- Filters

Oil & Gas introduction Course for Non-Engineers SEC

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9. Central Processing Platform (CPP)

Mostly Manned

Equipment on CPP:- Stabilization; (see Crude oil)- Separators;- Pumps, compressors;- Generators;- Valves;- Filters

Where the production of all wells in a field comes together to be processed for transport by pipeline or tanker.

Oil & Gas introduction Course for Non-Engineers SEC

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10. SLM

Equipment on SLM:- Pumps, compressors;- Generators;- Engines;- Valves;- Filters.

SLM = Single Lift Module

Oil & Gas introduction Course for Non-Engineers SEC

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11. MonopodMono Pod = Offshore structure founded on one single support

Shallow water

Advantage?

Oil & Gas introduction Course for Non-Engineers SEC

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12. TripodTripod = Offshore structure founded on three piled legs

Shallow water, low weight of topside

Advantage?

Oil & Gas introduction Course for Non-Engineers SEC

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13. FlareFlare = A structure on a platform to burn off stranded gas

Use restricted due to green house gas emission.

Flare boom

Oil & Gas introduction Course for Non-Engineers SEC

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14. FPSOFPSO = Floating Production, Storage and Offloading

Hull

Topsides

Turret

When is it used?

Oil & Gas introduction Course for Non-Engineers SEC

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15. FSOFSO = Floating, Storage and Offloading

Hull

Turret

When is it used?

Rang Dong FSO, 350 km South of Vungtau

Oil & Gas introduction Course for Non-Engineers SEC

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16. TurretA loading point that allows rotation of the FPSO/FSO

1. Internal turret2. External turret

Swivel stack

Oil & Gas introduction Course for Non-Engineers SEC

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17. PipelinesPipe line = A structure installation to transport oil or gas from one location to another location

Export Pipe lineTrunk line = approx. 16 until 48Infield pipe line = 6 until 18Flow line = short distance

Oil & Gas introduction Course for Non-Engineers SEC

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18. RiserRiser = A pipe or hose to bring the flow of oil or gas to the surface

Flexible riser

Riser base

Mid Water Arch

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19. Single Point MooringSPM or CALM Buoy

When is it used?

CALM = Catenary Anchored Leg Mooring

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20. LNGLNG = Liquefied Natural Gas LNG is Liquefied Natural Gas. It is a clear, odorless,

non-toxic and non-corrosive liquid. It is natural gas cooled to a very low temperature (roughly - 160 C). In its liquid state, natural gas occupies 600 times less volume than non-liquefied natural gas.

Oil & Gas introduction Course for Non-Engineers SEC

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21. LNG Train

A plant to liquefy produced LNG

Processes:

- Receive Natural Gas by pipeline- Condensate removal- CO2 removal- Mercury and H2S removal- Refrigeration to -160 C

Oil & Gas introduction Course for Non-Engineers SEC

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22. Terminal

A facility on the shore to receive and process gas or Oil

Processes:

- Offloading- Processing- Storage- Re-gasification

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23. FSRU

FSRU = Floating Storage and Re-gasification Unit

Processes:

- Receiving LNG- Heating- Re-gasify- Offloading to Gas grid

Oil & Gas introduction Course for Non-Engineers SEC

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24. LPG

LPG = Liquefied Petroleum Gas By product of Oil refining:

60 % Propane [C3H8]40 % Butane [C4H10]

Heavier than Air