REport

INTERNSHIP REPORT 1

OGDCL Kot Sarang Logistics Base

TABLE OF CONTENTS

1. INTRODUCTION ---------------------------------------------------------------------------------------------------------- 4

1.1. ESTABLISHMENT OF OGDC: ------------------------------------------------------------------------------------------------- 4

1.2. LOGISTICS BASE KOT SARANG: --------------------------------------------------------------------------------------------- 4

1.3. OIL AND GAS TRAINING INSTITUTE (OGTI) ------------------------------------------------------------------------------ 5

1.3.1. AIMS AND OBJECTIVES OF OGTI ---------------------------------------------------------------------------------------------------- 5

1.4. BACKGROUND OF THE INTERNSHIP --------------------------------------------------------------------------------------- 5

1.5. PURPOSE OF THE INTERNSHIP ---------------------------------------------------------------------------------------------- 5

1.6. SCOPE OF THE STUDY --------------------------------------------------------------------------------------------------------- 6

1.7. LIMITATION OF THE STUDY -------------------------------------------------------------------------------------------------- 6

2. PRESENT STATUS OF THE COMPANY ------------------------------------------------------------------------------- 6

2.1. VISION STATEMENT ----------------------------------------------------------------------------------------------------------- 6

2.2. MISSION STATEMENT --------------------------------------------------------------------------------------------------------- 6

2.3. OBJECTIVES ---------------------------------------------------------------------------------------------------------------------- 6

2.4. HISTORICAL BACKGROUND OF THE COMPANY ------------------------------------------------------------------------ 6

2.4.1. ESTABLISHMENT ------------------------------------------------------------------------------------------------------------------------ 6

2.4.2. DEVELOPMENT -------------------------------------------------------------------------------------------------------------------------- 7

2.5. PRODUCT LINE ------------------------------------------------------------------------------------------------------------------ 7

2.6. FUNCTION OF OIL AND GAS DEVELOPMENT COMPANY ------------------------------------------------------------ 7

3. ORGANIZATIONAL STRUCTURE -------------------------------------------------------------------------------------- 8

3.1. MAIN OFFICES ------------------------------------------------------------------------------------------------------------------- 8

3.2. MAIN DEPARTMENTS --------------------------------------------------------------------------------------------------------- 9

4. DRILLING OPERATION SERVICES ----------------------------------------------------------------------------------- 10

4.1. WELL SERVICES: --------------------------------------------------------------------------------------------------------------- 10

4.2. FUNCTIONS AND RESPONSIBILITIES ------------------------------------------------------------------------------------- 10

4.3. HUMAN RESOURCES: ------------------------------------------------------------------------------------------------------- 10

5. CEMENTATION --------------------------------------------------------------------------------------------------------- 10

5.1. MUD PLANT: ------------------------------------------------------------------------------------------------------------------- 10

5.2. CUTTING BOTTLE ------------------------------------------------------------------------------------------------------------- 11

INTERNSHIP REPORT 2


5.3. KENTHWORTH CEMENT PUMP TRUCK --------------------------------------------------------------------------------- 11

5.4. AIR COMPRESSOR ------------------------------------------------------------------------------------------------------------ 12

5.5. CEMENT SLURRY MIXER ---------------------------------------------------------------------------------------------------- 12

5.6. MUD DIVISION/ DRILLING FLUID SERVICES: -------------------------------------------------------------------------- 13

5.7. BASIC FUNCTIONS OF MUD ----------------------------------------------------------------------------------------------- 13

6. WELL STIMULATION: ------------------------------------------------------------------------------------------------- 14

6.1. INTRODUCTION TO STIMULATION -------------------------------------------------------------------------------------- 14

6.2. TYPES OF WELL TREATMENT ---------------------------------------------------------------------------------------------- 14

6.2.1. MATRIX ACIDIZING ------------------------------------------------------------------------------------------------------------------- 14

6.2.2. HYDRAULIC FRACTURING TREATMENT ----------------------------------------------------------------------------------------- 15

6.2.3. FRACTURING FLUIDS AND ADDITIVES ------------------------------------------------------------------------------------------ 15

6.3. EQUIPMENT USED FOR STIMULATION --------------------------------------------------------------------------------- 16

6.3.1. NITROGEN PUMPER ------------------------------------------------------------------------------------------------------------------ 16

6.3.2. COIL TUBING UNIT -------------------------------------------------------------------------------------------------------------------- 16

7. OVERHAULING SECTION/RIG MAINTENANCE KOT SARANG ----------------------------------------------- 17

7.1. REPAIR AND MAINTENANCE: --------------------------------------------------------------------------------------------- 18

7.1.1. ENGINES: -------------------------------------------------------------------------------------------------------------------------------- 18

7.1.2. MUD PUMP ----------------------------------------------------------------------------------------------------------------------------- 21

7.1.3. DRAW-WORK SR. TF-20 ------------------------------------------------------------------------------------------------------------- 22

7.1.4. SWIVEL/KELLY SPINNER SR. 6600 ------------------------------------------------------------------------------------------------ 23

8. LOGISTICS WORKSHOP ----------------------------------------------------------------------------------------------- 23

8.1. FUNCTIONS -------------------------------------------------------------------------------------------------------------------- 24

8.2. INVENTORY OF HEAVY OIL FIELD TRANSPORT ----------------------------------------------------------------------- 25

8.3. PAST PERFORMANCE / ACHIEVEMENTS ------------------------------------------------------------------------------- 25

8.4. CAPABILITIES ------------------------------------------------------------------------------------------------------------------ 25

9. OIL WELL DRILLING BY OGDCL ------------------------------------------------------------------------------------- 26

9.1. INTRODUCTION --------------------------------------------------------------------------------------------------------------- 26

9.2. FUNCTIONS -------------------------------------------------------------------------------------------------------------------- 27

9.3. RESOURCES -------------------------------------------------------------------------------------------------------------------- 27

9.4. OPERATIONS ------------------------------------------------------------------------------------------------------------------- 27

9.4.1. FORMING OIL -------------------------------------------------------------------------------------------------------------------------- 27

9.4.2. LOCATING OIL -------------------------------------------------------------------------------------------------------------------------- 28

INTERNSHIP REPORT 3


10. OIL RIG SYSTEMS --------------------------------------------------------------------------------------------------- 30

11. THE OIL DRILLING PROCESS -------------------------------------------------------------------------------------- 32

11.1. TESTING FOR OIL ---------------------------------------------------------------------------------------------------------- 32

11.2. EXTRACTING OIL ----------------------------------------------------------------------------------------------------------- 33

11.3. OFFSHORE OIL DRILLING ------------------------------------------------------------------------------------------------ 33

INTERNSHIP REPORT 4


1. INTRODUCTION Prior to OGDCL's emergence, exploration activities in the country were carried out by Pakistan Petroleum

Ltd. (PPL) and Pakistan Oilfields Ltd. (POL). In 1952, PPL discovered a giant gas field at Sui in

Balochistan. This discovery generated immense interest in exploration and five major foreign oil

companies entered into concession agreements with the Government.

During the 1950s, these companies carried out extensive geological and geophysical surveys and drilled

47 exploratory wells. As a result, a few small gas fields were discovered. Despite these gas discoveries,

exploration activity after having reached its peak in mid-1950s, declined in the late fifties. Private

Companies whose main objective was to earn profit were not interested in developing the gas discoveries

especially when infrastructure and demand for gas was non-existent. With exploration activity at its lowest

ebb several foreign exploration contracting companies terminated their operation and either reduced or

relinquished land holdings in 1961.

1.1. ESTABLISHMENT OF OGDC:

To review exploration in the energy sector the Government of Pakistan signed a long-term loan

Agreement on 04 March 1961 with the USSR, whereby Pakistan received 27 million Rubbles to

finance equipment and services of Soviet experts for exploration. Pursuant to the Agreement, OGDC

was created under an Ordinance dated 20th September 1961. The Corporation was charged with

responsibility to undertake a well thought out and systematic exploratory programs and to plan and

promote Pakistan's oil and gas prospects.

As an instrument of policy in the oil and gas sector, the Corporation followed the Government

instructions in matters of exploration and development. The day to day management was however,

vested in a five-member Board of Directors appointed by the Government. In the initial stages the

financial resources were arranged by the GOP as the OGDC lacked the ways and means to raise the

risk capital. The first 10 to 15 years were devoted to development of manpower and building of

infrastructure to undertake much larger exploration programmes.

1.2. LOGISTICS BASE KOT SARANG:

Logistics department has the resources and expertise of shifting rigs throughout Pakistan in rough and

rugged Hilly terrain, sandy and plan areas in remote fields of KPK, Punjab, Sindh and Baluchistan

Provinces. Besides providing quality MUD Engineering, Cementation & Stimulation services, for the

enhancement of Exploration & Production Activities.

INTERNSHIP REPORT 5


1.3. OIL AND GAS TRAINING INSTITUTE (OGTI)

The oil and gas development company limited (OGDCL) was set up in 1961 in the public sector under

the ministry of petroleum and natural resources.

1.3.1. Aims and Objectives of OGTI

The aims and objectives of OGTI are to identify the training needs of the industry, offer practical

training programme to professional of the petroleum industry, and provide training advice and

guidance to OGDC and to help established standards for training which will meet the performance

needs in the field and on the job.

OGTI is dedicated to:

Establish courses and in-house training programmes which will meet the specific needs of OGDC

and the Pakistan petroleum industry.

“Designing training material that recognizes the capabilities and specific needs of newly hired

employees and those who change their job assignment providing refresher and upgrade training

for industry personnel in cost effective manner”

In-house basic training programmes are being designed and developed to provide a base level of

training which employees require to function in their jobs. OGDC recruits men from all across

Pakistan. The universities and technical schools do not provide the full range of subject matter

necessary for a graduate entering the petroleum industry. It is OGTI’S intention to ensure that the

individual has an opportunity to obtain this training within his first two years with OGDC. In

addition to basic training courses, OGTI will Organizes in-house technology update seminars.

1.4. BACKGROUND OF THE INTERNSHIP

Oil industry is a lifeline for an economy. It is a world of oil exploration, oil refining and engineering.

Pakistan understands the importance of this industry for its economic uplift. Therefore the government

of Pakistan established OGDCL in 1961. OGDCL is the leading firm providing 23% of total

consumption, saving Pakistan from imports and contributing to economy by paying different charges

to the government.

1.5. PURPOSE OF THE INTERNSHIP

This report is based on Internship carried out for the fulfilment of the degree requirement of the

Bachelor of Science Degree in Mechanical Engineering at the International Islamic University

Islamabad. The purpose of the Internship is to do practical work in field and apply the knowledge of

classroom lectures to the real life situations.

INTERNSHIP REPORT 6


1.6. SCOPE OF THE STUDY

The scope of my internship is focused on the Mechanical Engineering operations in Logistic Field Kot

Sarang. This report will explains department’s working but also flow of work activities among the

sections and fields.

1.7. LIMITATION OF THE STUDY

No matter how efficiently a study is conducted, it cannot be perfect in all respects. The problem of

short time period also makes the analysis restricted as one cannot properly understand and thus analyze

all the operations of the field just in four weeks.

2. PRESENT STATUS OF THE COMPANY

2.1. VISION STATEMENT

“To be a leading, regional Pakistani E & P Company, recognized for its people, partnerships and

performance”

2.2. MISSION STATEMENT

Our mission is to become a competitive, dynamic and growing E & P Company, rapidly enhancing

our reserves through world class workforce, best management practices and technology and

maximizing returns to all stakeholders by capturing high value business opportunities within the

country and abroad, while being a responsible corporate citizen.

2.3. OBJECTIVES

a) Developing E & P Work Flow Models for Data Integration and connectivity.

b) Conduct geo-scientific, algorithms and systems architecture research leading to the development

of robust, interactive and user-friendly geosciences applications software that are tightly integrated

into the workflow environment.

c) Detailed testing of the developed applications to achieve the highest performance.

d) Detailed testing of the developed applications to achieve the highest performance.

e) Training and systems support to the end - users.

2.4. HISTORICAL BACKGROUND OF THE COMPANY

2.4.1. Establishment

The Oil & Gas Development Company Limited (OGDCL) was created under an Ordinance in

1961, to undertake comprehensive exploratory program and promote Pakistan’s oil and gas

prospects. In 1997, it was converted into a Public Limited Company and is now governed by the

Companies Ordinance 1984.

INTERNSHIP REPORT 7


2.4.2. Development

With a balanced, efficient and competitive structure, OGDCL explores and exploits indigenous

resources for optimum production of oil and gas, besides seeking opportunities abroad.

OGDCL has the largest acreage position in Pakistan and currently operates 17 exploration

concessions and holds non –operated working interest in another 7 exploration concessions. In

addition OGDCL has 35 Mining and Development & Production Leases, which are operated by it

besides having working interest ownership in 28 non-operated Mining and Development &

Production Leases, OGDCL has an extensive database. Services of the Company’s highly qualified

and skilled expertise in the fields of geology and geophysics are frequently availed y the local and

foreign oil companies. It also leases out its drilling rigs to the private sector and carries out seismic

surveys and data processing on contract for these companies on extremely competitive rates.

OGDCL now holds the largest shares of oil and gas reserves in the country, i.e. 48% of total oil

and 37% of total gas reserves. Its percentage share of the total oil and gas production in Pakistan

is 34% and 28% respectively. On the basis of its activities since inception, the company has until

June 30, 2003 and made 59 discoveries with a success ratio of 1:3. OGDCL’s updated estimates

for remaining recoverable oil and gas reserves as on 1st July, 2003, stood at 9.228 billion

Standard cubic feet (BSCF) of gas and 164.25 million barrels of oil including company’s share in

non – operated Joint Ventures.

During the last 42 years OGDCL has grown into a technically and commercially viable

organization.

2.5. PRODUCT LINE

In the product line of OGDCL, the following are its products by which it is earning profits:

a) Crude Oil.

b) Gas.

c) LPG.

d) Sulphur.

e) Gasoline/High and Low Speed Diesel.

f) Kerosene Oil.

g) Naphthalene.

h) Solvent Oil.

2.6. FUNCTION OF OIL AND GAS DEVELOPMENT COMPANY

The main functions of the Corporation are:-

a) To plan, organize and implement programs of exploration of development of oil and resources.

b) To carry out geological, geophysical and other surveys for the exploration of oil and gas.

INTERNSHIP REPORT 8


c) To carry out drilling and other prospecting operations to prove and estimate the reserves of oil

and gas.

d) To produce, refine and sale oil and gas

e) To perform other functions as the Federal Government may from time to time assign to the

Corporation.

3. ORGANIZATIONAL STRUCTURE

3.1. MAIN OFFICES

OGDCL Head Office is situated at Jinnah Avenue, Blue Area Islamabad and Regional Offices are

located in Karachi and Multan. Besides this OGDCL has its Liaison Offices in Hyderabad, Sukkhur,

and Quetta for operational activities. The overall organizational structure / organogram is as under

A Board of Directors comprising twelve Directors, all of whom are nominated by the Ministry of

Petroleum and Natural Resources, is responsible for policy related issues. The autonomous Board is

headed by a non-executive Chairman and there is a Managing Director/Chief Executive Officer.

Following are the main offices located throughout Pakistan:

1. OGDCL Head Office, Jinnah Avenue Islamabad.

2. Pirkoh Gas Company Private Limited, Islamabad.

3. OGDCL Regional Office, Shafi Chamber, Karachi

4. OGDCL Regional Office, Multan

5. OGDCL Liaison Office, Quetta

6. OGDCL Liaison Office, Sukkur

7. OGDCL West Wharf Office, Karachi

8. OGDCL Base Store, Islamabad

9. OGDCL Base Store, Khadiji, Karachi

10. OGDCL Base Store, Korangi

11. OGDCL Base Store, Kot Addu

12. OGDCL Logistics Field, Kot Sarang

13. Medical Centres, Islamabad, Rawalpindi & Karachi

14. OGDCL Workshops, Islamabad

15. Oil & Gas Training Institute, Islamabad.

INTERNSHIP REPORT 9


3.2. MAIN DEPARTMENTS

1. Administration Department

2. Corporate Department

3. Human Resource Department

4. Personnel Department

5. Security Department

6. Legal / Regulation Department

7. Communication Department

8. Procurement Department

9. Stores Department

10. Finance & Accounts Department

11. Audit Department

Exploration & Production Departments

1. Exploration Department

2. Exploitation Department

3. Production Department

4. Process Department

Technical Services Department

1. Drilling Department

2. Data Logging Department

3. Mud Engineering Department

4. Well Services Department

5. Cementation Department

6. Geological Well Supervision Department

7. Engineering Department

8. Wire line Logging Department

9. Geological Department

10. Data Processing Department

INTERNSHIP REPORT 10


4. DRILLING OPERATION SERVICES

4.1. WELL SERVICES:

To provide quality MUD Engineering, Cementation & Stimulation services, for the enhancement of E

& P Activities.

4.2. FUNCTIONS AND RESPONSIBILITIES

To arrange & supply Mud Chemicals, Cement & additives to the Drilling & work over Rigs.

To prepare & implement Mud & Hydraulics programmes for drilling of OGDCL wells.

To design cement slurries in the Cement Laboratory and to execute the Cementation programmes

To test Mud & Mud Chemicals, in the Mud Laboratory for its suitability in Drilling Operations.

To provide Nitrogen & Coil tubing services to work over wells and at processing Plants.

Shifting of Mud between wells when feasible.

Acid Pumper for stimulation jobs at wells

4.3. HUMAN RESOURCES:

The department has a team of technically sound, highly experienced and dedicated professionals

consisting of Engineers, Chemist and Technicians.

Most of the Professionals have more than 15-20 years of working experience in their professions and

have undergone training in Pakistan in OGDCL and with the Multinational Companies at USA and

Canada.

1. Head Office OGDCL House Blue Area Islamabad. Central Control

2. Logistics base Kot Sarang located in Teh. Talagang Distt. Chakwal For North

3. Logistics base Kot Addu located in Teh. Muzaffar Garh Distt. Muzaffer Garh For Mid Country

4. Logistics Unit Tando Alam located in Teh. Hyderabad Distt. Hyderabad. For South

5. CEMENTATION

5.1. MUD PLANT:

Mud division of Well Services Department has recently established a Mud Plant of about 1500 bbls

storage capacity at Tando Alam Oil Complex (Sindh Province). This plant is meant for storage and

necessary treatment of the left-over mud for recycling purpose. In the current fiscal year a further

enhancement of the capacity of the Mud Plant is planned so as to make the total capacity up to 3500

bbl,



5.2. CUTTING BOTTLE

Cutting Bottle is an intermediate & important part of bulking equipment that is commissioned in the

bulking and pumping circuit to load and shift the cement to pressure silos taking pneumatic drive from

the Air compressor.

5.3. KENTHWORTH CEMENT PUMP TRUCK

Twin Engine 500 HHP

32 BBL RMX Skid Unit Cat 3406 Engine

Allison HT750 Transmission, Triplex Oil Well Pump



5.4. AIR COMPRESSOR

Nine Positive Displacement Air Compressors are available with the Cementation Divisions to cater

necessary Cement Operations. These are actually reciprocating type compressors with three (03)

cylinders , which can intake air from atmosphere at or below atmospheric pressure (14.7 psi-absolute)

and deliver through or without cutting bottle to pressurize The Pressure Silos. The delivery pressure

has a lower limit of 40 psi gauge pressure.

5.5. CEMENT SLURRY MIXER

100 BBL Cement Slurry Mixer (CSM), 03 No. having mixing ability to prepare slurry of 22.0 ppg

Slurry Weight (In addition to that, 02 Nos 20 BBL capacities CSM are also in the possession of

Cementation Division).



5.6. MUD DIVISION/ DRILLING FLUID SERVICES:

Having been one of the important divisions of Well Services Department, the subject is extending to

provide its discrete Mud Engineering Services along with Mud Chemicals on a vast scale at various

OGDCL well locations to drill down the wells to specific depth for exploiting desirable prospects.

Mostly popular with synonym “The Blood” in mainstream drilling operations, the Mud, also known

as “Drilling Fluid” is one which contain Gel or High yield clay, pre-hydrated in fresh or brackish(salt

or sea) water as a base medium , which performs number of Functions while circulating through a

drilling hole. In conjunction to base clay, there are chemicals, commonly known as Polymers, which

are used to control the miscellaneous properties & fluid dynamics, as dictated by the well condition.

5.7. BASIC FUNCTIONS OF MUD

A Large amount of experimental work has been done in connection with the preparation of mud fluids

of various types, but comparatively little information is available as to the function& of the different

types of muds and details in regard to the ways in which these functions are carried out.

Following is a brief detail of, what a drilling fluid can do while in drilling hole.

To transport & carry away the cuttings & cavings as the bit cuts down the formation , while drilling

down to a specific depth, known as “Target Depth”

To cool & lubricate, the metallic hardware, including bit, Drill Colours & Drill Pipes as well as

wall of the hole.

To control the subsurface formation pressure using the “Hydrostatic Head” of contained fluid

while in static condition & Equivalent Circulating Density “ECD” in dynamic conditions.

To maintain well bore stability



To consolidate certain strata, such as heaving & sloughing water sensitive shales, which tend to

breakdown as the water phase react with sodium montmorillinite & cause serious mechanical

problems, including, pipe-stucking, bridging & difficulty in drilling.

To seal & clog permeable formation in Non-Productive zones. Extra care is taken to run “Non-

Damaging type Mud” at zone of interest in the likelihood of hydrocarbons, as anticipated by GDO

& previous Composite Logs.

To control & transmit the hydraulic energy to string, tools & bit in the hole.

To control the corrosion of metallic components to acceptable levels

To acquire adequate information about the Formations & important lithalogies by the onsite

geologist evaluation of cuttings & caving’s transported to surface by existing mud.

To be used as media for transmitting logging information using conductivity of Mud.

To facilitate cementing & completion

6. WELL STIMULATION: Stimulation is define as to perform operations on the oil wells so that we increase production of the oil

from the well.

6.1. INTRODUCTION TO STIMULATION

Reservoir stimulation deals with well productivity. As a result, a successful stimulation first requires

accurate identification of parameters controlling well productivity and the determination of whether

or not stimulation can improve production. This is therefore the very first step of the stimulation job

design.

6.2. TYPES OF WELL TREATMENT

Hydraulic fracturing treatment

Matrix Acidizing

6.2.1. Matrix acidizing

A low value of the permeability or high value of the skin factor would result in low well

productivity. Matrix acidizing is generally applied to reduce a large skin resulting from

permeability damage during completion or production. There is virtually nothing practical that can

be done to the permeability, although investigators have erroneously suggested that hydraulic

fracturing increases the reservoir permeability. A hydraulic fracture, as it will later be shown, is a

superimposed structure on a reservoir which remains largely undisturbed outside of the fracture.

The fracture, however, can greatly improve the well productivity by creating a large contact surface

between the well and the reservoir. The production improvement results from effectively

increasing the wellbore radius, which is indicated in subsequent testing as a reduction in the skin

factor, generally to negative value



6.2.2. HYDRAULIC FRACTURING TREATMENT

A theoretical examination of the fracturing of rocks by means of pressure applied in boreholes

leads to the conclusion that, regardless of whether the fracturing fluid is of the penetrating or non-

penetrating type, the fractures produced should be approximately perpendicular to the axis of least

stress (Fig. 7). The general state of stress underground is that in which the three principal stresses

are unequal. For tectonically relaxed areas characterized by normal faulting, the least stress should

be horizontal; the fracture produced should be vertical with the injection pressure less than that of

the overburden. In areas of active tectonic compression, the least stress should be vertical and

equal to the pressure of the overburden; the fracture should be horizontal with injection pressure

equal to or greater than the pressure of the overburden.

6.2.3. Fracturing Fluids and Additives

To achieve successful stimulation, the fracturing fluid must have certain physical and chemical

properties:

1. It should be compatible with the formation rock.

2. It should be compatible with the formation fluids.

3. It should be capable of suspending proppants and transporting them deep into the fracture.

4. It should be capable, through its inherent viscosity, to develop the necessary fracture width

to accept proppants.

5. It should be an efficient fluid (i.e., have low fluid loss). It should be easy to remove from

the formation.

6. It should have low friction pressure. Preparation of the fluid should be simple and easy to

perform in the field.

7. It should be stable so that it will retain its viscosity throughout the treatment.

8. The fracturing fluid should be cost-effective.



6.3. EQUIPMENT USED FOR STIMULATION

6.3.1. NITROGEN PUMPER

Vacuum Truck (Mack), 05 Nos; 350 HHP, 120 BBLs capacity (can haul 20 PPG Mud)

Acid Bulker, 400 HHP, 72 BBL Capacities. 18 Nos,“HP” Silos having 1000 Ft3 bulk Capacity

with 40 psi Operating Pressure.

6.3.2. COIL TUBING UNIT

The coil tubing unit is used for the basic stimulation jobs. The coil tubing unit which consists of a

metallic pipe wrapped around in the form of a roll. It is inserted into the well for various stimulation

purposes.



7. OVERHAULING SECTION/RIG MAINTENANCE KOT SARANG Overhauling section is located inside KOT SARANG Logistics Base providing the maintenance functions

for the RIG components and machinery including Engines, Draw works & Mud Pumps etc. These

machineries all-over from OGDCL field locations came for the repairing and overhauling in the Base

KOT SARNG. This section provides services of maintenance under the supervision of Engineers which

led the task of overhauling of machinery. The section is facilitated with the experienced technicians

provided with the advance tools for the maintenance of machinery along with the facilities of gas welding,

arc welding and Fork lifting. The part of this section also provides winding of electrical motors and

repairing of electrical machines.

Apparatus:

Gas welding Equipment

Arc welding Equipment

Fork-Lifter

Motor winding machine



7.1. REPAIR AND MAINTENANCE:

7.1.1. ENGINES:

CAT G3406 GAS ENGINE Sr. 2WB2732

Tough and durable, built on the industry-standard G3400 platform brings maximum uptime

and low operating cost to your operation. G3406 engines meet the most demanding continuous

duty gas compression applications with virtually no unscheduled downtime. Ideal applications

for G3406 engines include gas lift, gas gathering, and wellhead gas compression.

Technical Specifications:

Ratings: 6 cylinder 160-242 bkW (215-325 bhp) @ 1800 rpm are NSPS site compliant capable

with customer-provided air-fuel ratio control and after treatment or available for non-regulated

areas.



CAT G3408 GAS ENGINE Sr. IDZ14242

Tough and durable, built on the industry-standard G3400 platform brings maximum uptime

and low operating cost to your operation. G3408 engines meet the most demanding continuous

duty gas compression applications with virtually no unscheduled downtime. Ideal applications

for G3408 engines include gas lift, gas gathering, and wellhead gas compression.


Ratings: 8 cylinder190-298 kW (255-400 bhp) @ 1800 rpm are NSPS site compliant capable

with customer-provided air-fuel ratio control and after treatment or available for non-regulated

areas



CAT D398 PROPULSION ENGINE Sr. 66BO-9752

These engines are the ideal solution for your demanding operations in the oilfield. Decades of

field operation and intense research and development allow Cat D398 engines to deliver

excellent performance with low operating costs and emissions. This is an ideal engine for land

mechanical drilling applications such as mud pump drives. Cat engines are backed by the

worldwide network of Cat dealers ready to support your operation with technical support,

service, parts, and warranty.


Ratings: 12 cylinder 597-858 bkW (800-1150 bhp) @ 1800-2100 rpm meet U.S. EPA Tier 2

equivalent emission standards.



7.1.2. MUD PUMP

A mud pump is a reciprocating piston/plunger device designed to circulate drilling fluid under

high pressure (up to 7,500 psi (52,000 kPa)) down the drill string and back up the annulus.

Mud pump is a large reciprocating pump used to circulate the mud (drilling fluid) on a drilling rig.

It is an important part of the oil well drilling equipment.

The overhauling/Rig maintenance have special maintenance technicians whom responsible for the

maintenance and repair work of the machine. Mud Pumps and other mechanical equipment

inspected and maintained on a scheduled and timely basis to find and address problems ahead of

time, in order to avoid unscheduled shutdown. The engineers attend to the size of the sediment

particles; when finding large particles, the Mud Pump wearing part often checked for repairing

needs or replacement. The wearing parts for Mud Pumps include pump casing, bearings, impeller,

piston, liner, etc. Advanced anti-wear measures adopted to increase the service life of the wearing

parts, which can reduce the investment cost of the project, and improve production efficiency. At

the same time, wearing parts and other Mud Pump parts are repaired rather than replaced when

possible



7.1.3. DRAW-WORK Sr. TF-20

A draw-works is the primary hoisting machinery that is a component of a rotary drilling rig. Its

main function is to provide a means of raising and lowering the traveling blocks. A modern draw-

works consists of five main parts: the drum, the motor(s), the reduction gear, the brake, and the

auxiliary brake.

Complete overhauling of Draw-Works is done by the Rig maintenance department of KOT

SARANG under the supervision of engineers.



7.1.4. SWIVEL/KELLY SPINNER Sr. 6600

The Kelly Spinner is used for driving the Kelly stem by air or hydraulic motor, and matching to

the clamp of the mouse hole to making up with the single automatically, during the drilling

operation. It has the advantages of safety, high efficiency and manpower reduction.

8. LOGISTICS WORKSHOP

Logistics department has the resources and

expertise of shifting rigs throughout Pakistan

in rough and rugged Hilly terrain, sandy and

plan areas in remote fields of KPK, Punjab,

Sindh and Baluchistan Provinces.



Logistics workshop is part of the base KOT SARANG is equipped for maintenance, repair, and

overhauling of Earth-Moving-Machines which are used for the transportation, construction and load-

lifting purposes. These machines include Crawler machines, Shovels, Clamshells, Hydraulic Cranes,

PowerShell, Excavator, Bulldozers, Fuel-Tankers and Loading-Trucks etc. Engineers along with the

technicians put their efforts to keep these machines working and running for the operational needs of

OGDCL. All the logistics equipment needed for the exploration and production is maintained by the

logistics workshop of KOT SARANG.

8.1. FUNCTIONS

Shifting of drilling and work-over rigs.

Shifting of tabular chemicals and all type of supplies for drilling rig sites.

Shifting of all type of material and equipment of service companies associated with E & P activities.



8.2. INVENTORY OF HEAVY OIL FIELD TRANSPORT

Logistics department has acquired variety of good equipment and maintained operational bases

consisting of heavy transport which include trailers cranes and dozers.

The trailers and cranes of Logistics department are fully equipped with latching equipment and

necessary slings etc. for different load binding, loading and off-loading.

The brief of usable inventory is as under:

60 High bed trailers capacity 40 ton 6x6 and 6x4 drive.

10 Low-bed trailers capacity 50 ton 6x6 and 6x4 drive.

10 Cranes capacity 50/40 ton 8x4 drive lattice boom

extendable to 120 feet

2 Dozer Caterpillar D8N.

8.3. PAST PERFORMANCE / ACHIEVEMENTS

Average rig shifting per year 18 Drilling + 07 Work over.

General shifting assignments of supplies for well sites For all the above wells.

General shifting assignments for Exploration, Production, Plant

and Process, Store and Engineering Depts. Etc.

As and when required.

Logistics department has the resources and expertise of shifting rigs throughout Pakistan in rough

and rugged Hilly terrain, sandy and plan areas in remote fields of KPK, Punjab, Sindh and

Baluchistan Provinces.

8.4. CAPABILITIES

The logistics machinery is capable of moving the following rigs at a time:

1. Long distance over 1000 KM. round trip 01 Rig move at a time

2. Short distance below 1000 KM round trip 02 Rig moves at a time

3. Within field radius of 150 KM 03 Rig Moves at a time.



9. OIL WELL DRILLING by OGDCL

9.1. INTRODUCTION

As Pakistan’s largest oil & gas producer, OGDCL share in Country’s total oil and gas production

stands at 42,520 bpd of Crude oil (Net Averaged), 1,120 mmcfd of Gas (Net Averaged) and 171 M.

T/d of LPG (Net Averaged).

Having 40 operated oil & gas fields, geographically distributed all across the country; OGDCL has

embarked upon development works on 32 fields, to bring these on production. OGDCL has 35 oil &

gas processing plants. These include Dehydration, LPG, Sulphur Recovery, H2S Removal, Gas

Sweetening, Condensate Stabilization, Refining and Compression plants.

Various measures have been taken in order to augment production levels to reach new heights. This

includes setting up of aggressive targets, enduring commitment by its professionals, and induction of

latest technologies, pursuing industry best practices, strengthening surveillance techniques, enhancing

in-house engineering design & simulation capabilities, utilization of state-of-the art automation

systems and fostering use of information technology.

Hydraulic Crane

CAT Clamshell



9.2. FUNCTIONS

Well Design and project manuals for all exploratory, appraisal & development wells.

AFE /Wells cost time.

Monitoring AFE approval & actual cost on daily basis.

Drilling engineering studies.

Drilling Operations as per approved programs.

Supervision of drilling & work over operations.

Work over operations as per approved programs.

Preventive maintenance, repair and overhauling of rig equipment’s.

Fishing operations on limited scale.

Monitoring of non-operated joint venture.

9.3. RESOURCES

OGDCL owns 07 drilling & 01 work-over rigs as under:

Deep drilling up to 6000 M 01 Rig

Deep drilling up to 5000 M 03 Rigs

Medium drilling up to 4000 M 01 Rig

Shallow drilling up to 2800 M 02 Rig

Work over medium depth up to 3500 M 01 Rig

All rigs are operated by OGDCL’s own experienced & qualified crew.

The rigs crew have vast drilling & work-over experience of wells scattered all over the country.

Maintenance standards at rigs have been improved.

9.4. OPERATIONS

9.4.1. FORMING OIL

Oil comes from the remains of tiny plants and animals (plankton) that died in ancient seas between

10 million and 600 million years ago. After the organisms died, they sank into the sand and mud

at the bottom of the sea.

Over the years, the organisms decayed in the sedimentary layers. In these layers, there was little

or no oxygen present. So microorganisms broke the remains into carbon-rich compounds that

formed organic layers. The organic material mixed with the sediments, forming fine-grained shale,

or source rock. As new sedimentary layers were deposited, they exerted intense pressure and heat

on the source rock. The heat and pressure distilled the organic material into crude oil and natural

gas. The oil flowed from the source rock and accumulated in thicker, more porous limestone or



sandstone, called reservoir rock. Movements in the Earth trapped the oil and natural gas in the

reservoir rocks between layers of impermeable rock, or cap rock, such as granite or marble.

These movements of the Earth include:

Folding - Horizontal movements press inward and move the rock layers upward into a fold

or anticline.

Faulting - The layers of rock crack, and one side shifts upward or downward.

Pinching out - A layer of impermeable rock is squeezed upward into the reservoir rock.

9.4.2. LOCATING OIL

Whether employed directly by an oil company or under contract from a private firm, geologists

are the ones responsible for finding oil. Their task is to find the right conditions for an oil trap --

the right source rock, reservoir rock and entrapment. Many years ago, geologists interpreted

surface features, surface rock and soil types, and perhaps some small core samples obtained by

shallow drilling. Modern oil geologists also examine surface rocks and terrain, with the additional

help of satellite images. However, they also use a variety of other methods to find oil. They can

use sensitive gravity meters to measure tiny changes in the Earth's gravitational field that could

indicate flowing oil, as well as sensitive magnetometers to measure tiny changes in the Earth's

magnetic field caused by flowing oil. They can detect the smell of hydrocarbons using sensitive

electronic noses called sniffers. Finally, and most commonly, they use seismology, creating shock

waves that pass through hidden rock layers and interpreting the waves that are reflected back to

the surface.

In seismic surveys, a shock wave is created by the following:

Compressed-air gun - shoots pulses of air into the water (for exploration over water)

Thumper truck - slams heavy plates into the ground (for exploration over land)

Explosives - detonated after being drilled into the ground (for exploration over land) or thrown

overboard (for exploration over water)

The shock waves travel beneath the surface of the Earth and are reflected back by the various rock

layers. The reflections travel at different speeds depending upon the type or density of rock layers

through which they must pass. Sensitive microphones or vibration detectors detect the reflections

of the shock waves -- hydrophones over water, seismometers over land. Seismologists interpret

the readings for signs of oil and gas traps.



Once geologists find a prospective oil

strike, they mark the location using GPS

coordinates on land or by marker buoys

on water.

Once the site has been selected,

scientists survey the area to determine

its boundaries, and conduct

environmental impact studies if

necessary. The oil company may need

lease agreements, titles and right-of way

accesses before drilling the land. For

off-shore sites, legal jurisdiction must

be determined.

After the legal issues are settled, the

crew goes about preparing the land:

The land must be cleared and levelled,

and access roads may be built.

Because water is used in drilling, there must be a source of water nearby. If there is no natural

source, the crew drills a water well.

The crew digs a reserve pit, which is used to dispose of rock cuttings and drilling mud during the

drilling process, and lines it with plastic to protect the environment. If the site is an ecologically

sensitive area, such as a marsh or wilderness, then the cuttings and mud must be disposed of offsite

-- trucked away instead of placed in a pit.

Once the land has been prepared, the crew digs several holes to make way for the rig and the main

hole. A rectangular pit called a cellar is dug around the location of the actual drilling hole. The

cellar provides a work space around the hole for the workers and drilling accessories. The crew

then begins drilling the main hole, often with a small drill truck rather than the main rig. The first

part of the hole is larger and shallower than the main portion, and is lined with a large-diameter

conductor pipe. The crew digs additional holes off to the side to temporarily store equipment --

when these holes are finished, the rig equipment can be brought in and set up.

Depending upon the remoteness of the drill site and its access, it may be necessary to bring in

equipment by truck, helicopter or barge. Some rigs are built on ships or barges for work on inland

water where there is no foundation to support a rig (as in marshes or lakes).



10. OIL RIG SYSTEMS Once the equipment is at the site, the crew sets the

rig up. Here are the major systems of a land oil rig:

Power system

Large diesel engines - burn diesel-fuel oil to

provide the main source of power

Electrical generators - powered by the diesel

engines to provide electrical power

Mechanical system - driven by electric motors

Hoisting system - used for lifting heavy

loads; consists of a mechanical winch (draw-

works) with a large steel cable spool, a block-

and-tackle pulley and a receiving storage reel

for the cable

Turntable - part of the drilling apparatus

Rotating equipment - used for rotary drilling

Swivel - large handle that holds the weight of

the drill string; allows the string to rotate and makes a pressure-tight seal on the hole

Kelly - four- or six-sided pipe that transfers rotary motion to the turntable and drill string.

Turntable or rotary table - drives the rotating motion using power from electric motors.

Drill string - consists of drill pipe (connected sections of about 30 feet (10 meters) and drill collars.

(larger diameter, heavier pipe that fits around the drill pipe and places weight on the drill bit)

Drill bit(s) - end of the drill that actually cuts up the rock; comes in many shapes and materials

(tungsten carbide steel, diamond) that are specialized for various drilling tasks and rock formations.

Casing - large-diameter concrete pipe that lines the drill hole, prevents the hole from collapsing,

and allows drilling mud to circulate.



Circulation system - pumps drilling mud (mixture of

water, clay, weighting material and chemicals, used to lift

rock cuttings from the drill bit to the surface) under

pressure through the kelly, rotary table, drill pipes and drill

collars

Pump - sucks mud from the mud pits and pumps it to

the drilling apparatus

Pipes and Hoses - connects pump to drilling apparatus

Mud-return line - returns mud from the hole

Shale Shaker - shaker/sieve that separates rock cuttings

from the mud

Shale Slide - conveys cuttings to the reserve pit

Reserve pit - collects rock cuttings separated from the

mud

Mud pits - where drilling mud is mixed and recycled

Mud-mixing hopper - where new mud is mixed and

then sent to the mud pits

Derrick - support structure that holds the drilling

apparatus; tall enough to allow new sections of drill pipe to be

added to the drilling apparatus as drilling progresses

Blowout preventer - high-pressure valves (located under the land rig or on the sea floor) that seal the

high-pressure drill lines and relieve pressure when necessary to prevent a blowout (uncontrolled gush

of gas or oil to the surface, often associated with fire)



11. THE OIL DRILLING PROCESS The crew sets up the rig and starts the drilling operations. First, from the starter hole, the team drills a

surface hole down to a pre-set depth, which is somewhere above where they think the oil trap is located.

There are five basic steps to drilling the surface hole. Place the drill bit, collar and drill pipe in the hole.

Attach the kelly and turntable, and begin drilling. As drilling progresses, circulate mud through the pipe

and out of the bit to float the rock cuttings out of the hole. Add new sections (joints) of drill pipes as the

hole gets deeper. Remove (trip out) the drill pipe, collar and bit when the pre-set depth (anywhere from a

few hundred to a couple-thousand feet) is reached.

Once they reach the pre-set depth, they must run and cement the casing -- place casing-pipe sections into

the hole to prevent it from collapsing in on itself. The casing pipe has spacers around the outside to keep

it centred in the hole.

The casing crew puts the casing pipe in the hole. The cement crew pumps cement down the casing pipe

using a bottom plug, a cement slurry, a top plug and drill mud. The pressure from the drill mud causes the

cement slurry to move through the casing and fill the space between the outside of the casing and the hole.

Finally, the cement is allowed to harden and then tested for such properties as hardness, alignment and a

proper seal.

11.1. TESTING FOR OIL

Drilling continues in stages: The crew drills, then runs and cements new casings, then drills again.

When the rock cuttings from the mud reveal the oil sand from the reservoir rock the crew may have

reached the well's final depth. At this point, crew members remove the drilling apparatus from the hole

and perform several tests to confirm this finding:

Well logging - lowering electrical and gas sensors into the hole to take measurements of the

rock formations there

Drill-stem testing - lowering a device into the hole to measure the pressures, which will reveal

whether reservoir rock has been reached

Core samples - taking samples of rock to look for characteristics of reservoir rock

Once they've reached the final depth, the crew completes the well to allow oil to flow into the casing

in a controlled manner. First, they lower a perforating gun into the well to the production depth. The

gun has explosive charges to create holes in the casing through which oil can flow. After the casing

has been perforated, they run a small-diameter pipe (tubing) into the hole as a conduit for oil and gas

to flow up through the well. A device called a packer is run down the outside of the tubing. When the

packer is set at the production level, it's expanded to form a seal around the outside of the tubing.

Finally, they connect a multi-valved structure called a Christmas tree to the top of the tubing and

cement it to the top of the casing. The Christmas tree allows them to control the flow of oil from the

well.



After the well is completed, the crew must start the flow of oil into the well. For limestone reservoir

rock, acid is pumped down the well and out the perforations. The acid dissolves channels in the

limestone that lead oil into the well. For sandstone reservoir rock, a specially blended fluid containing

proppants (sand, walnut shells, aluminium pellets) is pumped down the well and out the perforations.

The pressure from this fluid makes small fractures in the sandstone that allow oil to flow into the well,

while the proppants hold these fractures open. Once the oil is flowing, the oil rig is removed from the

site and production equipment is set up to extract the oil from the well.

11.2. EXTRACTING OIL

After the rig is removed, the crew puts a pump on the well head.

In the pump system, an electric motor drives a gear box that moves a lever. The lever pushes and pulls

a polishing rod up and down. The polishing rod is attached to a sucker rod, which is attached to a

pump. This system forces the pump up and down, creating a suction that draws oil up through the well.

In some cases, the oil may be too heavy to flow. In these cases, the crew drills a second hole into the

reservoir and injects steam under pressure. The heat from the steam thins the oil in the reservoir, and

the pressure helps push it up the well. This process is called enhanced oil recovery.

11.3. OFFSHORE OIL DRILLING

Not all oil is accessible on land or in shallow waters. You can find some oil deposits buried deep under

the ocean floor. Reaching these oil deposits is dangerous, but if done correctly, it can also be

rewarding. If things go wrong, however, the results can be deadly both for oil workers and the

surrounding environment.

Using sonic equipment, oil companies determine the drilling sites most likely to produce oil. Then

they use a mobile offshore drilling unit (MODU) to dig the initial well. Some units are converted into

production rigs, meaning they switch from drilling for oil to capturing oil once it's found. Most of the

time, the oil company will replace the MODU with a more permanent oil production rig to capture oil.

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