Date post: | 04-Oct-2015 |
Category: |
Documents |
Upload: | muhd-haziq-de-rozario |
View: | 19 times |
Download: | 2 times |
CGE665
Facilities Engineering
Lecturer: Lecturer: NikNik KhairulKhairul IrfanIrfan Bin Bin NikNik AbAb LahLah
UNIVERSITI TEKNOLOGI MARAUNIVERSITI TEKNOLOGI MARA
Nik Khairul Irfan profile
Office- Lecturer Room level 11
Office No- 0355436347
Email- [email protected]
Education Background
BSc in Mechanical Eng. (UTP)
UNIVERSITY TEKNOLOGI MARA
BSc in Mechanical Eng. (UTP)
Msc in Petroleum Eng. (UTP)
Working experience
UTP (Graduate Assistant)
Shin Nippon Machinery Sdn Bhd (Sales Engineer)
UiTM (Lecturer)
Course Information
Subject Name Facilities Engineering
Code CGE665
Credit hour /contact hour 3 (3 hour Lecture & 1 hour
Tutorial per week)
Level BachelorLevel Bachelor
Prerequisite (if any) Nil
Assessment
Test/ Assignment/ Project 40%
Final Exam 60%
Semester Taught 6
UNIVERSITY TEKNOLOGI MARA
Learning OutcomeUpon completion of this course, student should be
able to:
To describe and identify suitable equipment and processing techniques for petroleum production
and export facilities.
To integrate the first stage design and optimization technique in the selection of major process
equipment on oil & gas facilities.
To identify and describe the equipment used in subsea developments.
UNIVERSITY TEKNOLOGI MARA
Rules & Regulation
UNIVERSITY TEKNOLOGI MARA
Rules & Regulation
UNIVERSITY TEKNOLOGI MARA
OVERVIEW OF CGE665OVERVIEW OF CGE665
This course is designed to introduce the
students with the surface equipment
related to Exploration and Production
(E&P) processes and the conception of the
UNIVERSITY TEKNOLOGI MARA
(E&P) processes and the conception of the
overall facilities setup as well as designing
of some of the critical equipments.
Outline - Chapter1
Overview of the oil & gas industry
E & P business
1.1) Phases of E&P Activities
1.2) Details of Project Dev. Phase
11
UNIVERSITY TEKNOLOGI MARA
1.2) Details of Project Dev. Phase
PSC Production Sharing Contract (Malaysia)33
44 Project Life Cycle Concept
E & P Project Costs 22
1.1a. E&P Business- Acquisition of Rights
Phases of Activities in Petroleum Industry
Acquisition of Rights To obtain permission from government
or relevant agency before drilling of
Exploration wells.
These can be done through
A) Concessions Agreement : E&P activities are determinedA) Concessions Agreement : E&P activities are determined
by the Contractors. The host
country only interested in the
profits (profit sharing and taxes)
B) Production Sharing
Contracts Agreement: E&P activities are performed by the
(PSC) Contractors and approved by the host
country / agency. Costs are recoverable
through some mechanisms and profits
are shared. Taxes imposed.
UNIVERSITY TEKNOLOGI MARA
1.1a. E&P BusinessAcquisition of Rights
Phases of Activities in Petroleum Industry
Acquisition of Rights To obtain permission from government
or relevant agency before drilling of
Exploration wells.
These can be done through (contd).
C) Joint Venture Agreement : E&P activities are jointly performedC) Joint Venture Agreement : E&P activities are jointly performed
by the Contractors and the host country.
Costs and profits are shared based on
the agreed equities. Taxes are imposed.
D) Service Contract Agreement : E&P activities are performed by the
host country representative but some
agreed scope of work are contracted
out to a Contractor. Costs are borne by
the host country. Contractor only
benefits from the scope of work they
have provided. Taxes may be imposed.
UNIVERSITY TEKNOLOGI MARA
1.1b. E&P Business - Exploration
Phases of Activities in Petroleum Industry
Acquisition of Rights
EXPLORATION
To obtain permission from government
or relevant agency before drilling of
Exploration wells.
To search for oil and gas fields
This is a high risk activities may constitute :This is a high risk activities may constitute :
a) Gravity and Magnetic Surveys :
Mapping of gravity and/or magnetic anomalies due to the
variations of the earths geological structures and magnetic
properties of rocks.
b) Seismic Survey : Seismic lines producing Coarse 2-dimensional
seismic grid reflecting the geophysical nature of the rocks etc.
c) Wildcat Exploration well drilling,
UNIVERSITY TEKNOLOGI MARA
Facilities Engineering - Introduction
1.1c. E&P Business Appraisal Phase
Phases of Activities in Petroleum Industry
Acquisition of Rights
EXPLORATION
To obtain permission from government
or relevant agency before drilling of
Exploration wells.
To search for oil and gas fields
To determine the commercial significance of
3/10/2015 APDrRazaliHamzah 12
APPRAISALTo determine the commercial significance of
the discovery and to shape the initial development
plan for the field.
UNIVERSITY TEKNOLOGI MARA
1.1c. E&P Business Appraisal Phase
EXPLORATION
EXPLORATION DRILLING
APPRAISAL
RESULTSDry
DISCOVERY
3/10/2015 APDrRazaliHamzah 13
QUIT
APPRAISAL
Appraisal drilling to define the extent of discovery
Data gathering to aid in the development studies
Development feasibility studies
DEVELOPMENT
RESULTSInconclusive
UNIVERSITY TEKNOLOGI MARA
1.2d. E&P Business Development Phase
Phases of Activities in Petroleum Industry
Acquisition of Rights
EXPLORATION
To obtain permission from government
or relevant agency before drilling of
Exploration wells.
To search for oil and gas fields
To determine the commercial significance ofAPPRAISAL
DEVELOPMENT
To determine the commercial significance of
the discovery and to shape the initial development
plan for the field.
To formulate the Field Development Plan, install
platforms / facilities, drill and complete the
development wells.
UNIVERSITY TEKNOLOGI MARA
1.1d. E&P Business Development Phase
This is the DEVELOPMENT of Production Concept and IMPLEMENTATION activities.
The objectives:
To meet the maximum recovery with minimum cost.
Consideration in the Development plan are:Consideration in the Development plan are:
i) Drilling requirements. (Number of wells, well spacing and drainage pattern, drilling program, completion strategy, etc. )
ii) Production techniques and policy anticipated. (Artificial lift needs, pressure maintenance, etc.)
iii) Facilities required Drilling and Production)
iv) Development time and cost expected.
UNIVERSITY TEKNOLOGI MARA
1.1e. E&P Business Production Phase
Phases of Activities in Petroleum Industry
Acquisition of Rights
EXPLORATION
To obtain permission from government
or relevant agency before drilling of
Exploration wells.
To search for oil and gas fields
To determine the commercial significance ofAPPRAISAL
DEVELOPMENT
PRODUCTION
To determine the commercial significance of
the discovery and to shape the initial development
plan for the field.
To formulate the Field Development Plan, install
platforms / facilities, drill and complete the
development wells.
To bring oil/gas from sub-surface to surface and
to separate gas/oil/water before oil is stored and
gas is processed.
UNIVERSITY TEKNOLOGI MARA
1.1e. E&P Business Production PhaseDRILLING OF PRODUCTION WELLS
i.i. Production wells are drilled by a Drilling Contractor for Production wells are drilled by a Drilling Contractor for
the whole drilling campaign to completely produced the whole drilling campaign to completely produced
the prospects.the prospects.
ii.ii. The specified drill rig is mobilized and the drilling will The specified drill rig is mobilized and the drilling will
start.start.start.start.
iii.iii. The First Oil/Gas is the first Production starting at the The First Oil/Gas is the first Production starting at the
platform when the first well is completed and producedplatform when the first well is completed and produced
iv.iv. The drilling campaign will drill all the planned The drilling campaign will drill all the planned
production wells on the platform before the drill rig is production wells on the platform before the drill rig is
demobilized.demobilized.
UNIVERSITY TEKNOLOGI MARA
1 E&P Business - Summary
Phases of Activities in Petroleum Industry
Acquisition of Rights
EXPLORATION
APPRAISAL
To obtain permission from government
or relevant agency before drilling of
Exploration wells.
To search for oil and gas fields
To determine the commercial significance of
the discovery and to shape the initial developmentAPPRAISAL
DEVELOPMENT
PRODUCTION
Processing / Export
the discovery and to shape the initial development
plan for the field.
To formulate the Field Development Plan, install
platforms / facilities, drill and complete the
development wells.
To bring oil/gas from sub-surface to surface and
to separate gas/oil/water before oil is stored and
gas is processed.
To condition the gas / oil and sell to customers.
UNIVERSITY TEKNOLOGI MARA
1.1g. E&P Business Facilities, Transportation, Storage and
Export
Acquisition of Rights
EXPLORATION
APPRAISAL
3/10/2015 APDrRazaliHamzah 19
APPRAISAL
DEVELOPMENT
PRODUCTION
Processing / Export
Facilities Engineering, Transportation
Storage and Metering (for Export)
falls under these phases of the E&P
business
UNIVERSITY TEKNOLOGI MARA
1.2 E&P Business Development Phase
Field Development Evaluation.
Geologist
OOIP
Fluid Contacts
Rock Quality
Facilities Eng.
Types of Platforms
Pipelines and
Support Fac.
Drilling Eng.
Max. Reach
Min. Time
Reservoir. Eng.
EUR
No. of Plat.
No. Of Wells
Production Plan
FIELD
LEVEL
Facilities Eng
Facilities Selection
Investment Cost
Operating Cost
Reservoir Eng.
EUR
Production
Plan
Production
Forecast
Drilling Eng
Drilling Cost.
Geologist
OOIP
Economic Evaluation
Platform
LEVEL
UNIVERSITY TEKNOLOGI MARA
1.2a1. E&P Business Details of Project
Development & Implementation Activities
Oil and Gas Development Activities:
a. FEASIBILITIES STUDIES
b. CONCEPTUAL DESIGNb. CONCEPTUAL DESIGN
c. FABRICATION / CONSTRUCTION
d. INSTALLATION
e. HOOK-UP AND COMMISSIONING
f. DEVELOPMENT DRILLING
UNIVERSITY TEKNOLOGI MARA
1.2a2. E&P BusinessProjects Development & Implementation
Oil & Gas Projects Milestones.
Year 1Year 1 Year 2 Year 2 Year 3Year 3 Year 4Year 4
Feasibility Study
Conceptual Design
Detail Design
3/10/2015 APDrRazaliHamzah 22
Project DevelopmentProject Development Project ImplementationProject Implementation
Procurement / Long Lead Items
Contracting
Fabrication
Hook-up & Commissioning
Installation
Drilling & Production
First Oil/Gas
Production
UNIVERSITY TEKNOLOGI MARA
Facilities Engineering - Introduction
1.2b. E&P BusinessProject Development
Oil & Gas Projects Milestones.
FEASIBILITY STUDY
i.i. General Concept DefinitionGeneral Concept Definition
ii.ii. Preliminary Cost EstimatesPreliminary Cost Estimates
Economic EvaluationEconomic Evaluationiii.iii. Economic EvaluationEconomic Evaluation
iv.iv. Feasibility Screening StudiesFeasibility Screening Studies
v.v. Field Development PlanField Development Plan
vi.vi. Work Program and BudgetWork Program and Budget
NB. Done by an InNB. Done by an In--house Project Teamhouse Project Team
UNIVERSITY TEKNOLOGI MARA
1.2c. E&P BusinessProject Development
Oil & Gas Projects Milestones.
CONCEPTUAL DESIGN (Front End Engineering)
i.i. More Detail Concept DefinitionMore Detail Concept Definition
ii.ii. Facilities OptimizationFacilities Optimization
iii.iii. Environmental / Site SurveysEnvironmental / Site Surveysiii.iii. Environmental / Site SurveysEnvironmental / Site Surveys
iv.iv. Design SpecificationsDesign Specifications
v.v. Contracting Strategies / DocumentsContracting Strategies / Documents
vi.vi. Design Basis Memorandum or ConceptualDesign Basis Memorandum or Conceptual
vii.vii. DBM Report.DBM Report.
NB. Usually done inNB. Usually done in--house/contractorhouse/contractor
UNIVERSITY TEKNOLOGI MARA
1.2d. E&P BusinessProject Implementation
Oil & Gas Projects Milestones.
DETAIL DESIGN
i.i. Develop specifications for each equipment.Develop specifications for each equipment.
ii.ii. Approved for Bid (AFB) DrawingsApproved for Bid (AFB) Drawings
iii.iii. Approved for Construction (AFC) DrawingsApproved for Construction (AFC) Drawingsiii.iii. Approved for Construction (AFC) DrawingsApproved for Construction (AFC) Drawings
iv.iv. Detail Design ReportDetail Design Report
v.v. Materials Procurement for long lead items.Materials Procurement for long lead items.
NB. Specifications, AFB/AFC are either done inNB. Specifications, AFB/AFC are either done in--house or house or
by Design Consultants.by Design Consultants.
Procurement are done by Purchasing unit.Procurement are done by Purchasing unit.
UNIVERSITY TEKNOLOGI MARA
1.2e. E&P BusinessProject Implementation
Oil & Gas Projects Milestones.
PROCUREMENT & FABRICATION
i.i. Fabrication works are done at Fabrication Fabrication works are done at Fabrication
Yards Yards chosen through competitive bidding.chosen through competitive bidding.
ii.ii. Procurement of Materials e.g. tubular, sheet Procurement of Materials e.g. tubular, sheet
metals, valves, welding equipment, metals, valves, welding equipment, metals, valves, welding equipment, metals, valves, welding equipment,
construction equipment such as cranes are construction equipment such as cranes are
responsibilities of the fabrication contractors..responsibilities of the fabrication contractors..
iii.iii. PrePre--commissioning of individual systems e.g. commissioning of individual systems e.g.
pumping unit, heat exchanger and fire deluge.pumping unit, heat exchanger and fire deluge.
iv.iv. LoadLoad--out and transportationout and transportation
UNIVERSITY TEKNOLOGI MARA
1.2f. E&P BusinessProject Implementation
Oil & Gas Projects Milestones.
INSTALLATION
i.i. Installation is performed by Installation Contractors Installation is performed by Installation Contractors
obtained through competitive bidding.obtained through competitive bidding.
ii.ii. Used Installation Spread consisting of Installation / Used Installation Spread consisting of Installation /
Crane Barge , Tug Boats, Supply Vessels, Divers @ Crane Barge , Tug Boats, Supply Vessels, Divers @ Crane Barge , Tug Boats, Supply Vessels, Divers @ Crane Barge , Tug Boats, Supply Vessels, Divers @
Diving Equipment, Construction Crew, Steam Diving Equipment, Construction Crew, Steam
Hammers, Welders and Riggers and onboard Hammers, Welders and Riggers and onboard
accommodation and catering.accommodation and catering.
iii.iii. HookHook--up and Commissioning can be part of the up and Commissioning can be part of the
installation scope of works.installation scope of works.
iv.iv. System Testing and StartSystem Testing and Start--up.up.
UNIVERSITY TEKNOLOGI MARA
1.2g.E&P BusinessProject Implementation
Oil & Gas Projects Milestones.
PIPELINE INSTALLATION
i.i. Pipeline installation is performed separately by a Pipeline installation is performed separately by a
Pipeline Installation Contractors obtained through Pipeline Installation Contractors obtained through
competitive bidding.competitive bidding.
ii.ii. Used Installation Spread consisting of Pipe Laying Used Installation Spread consisting of Pipe Laying ii.ii. Used Installation Spread consisting of Pipe Laying Used Installation Spread consisting of Pipe Laying
Barge , Anchor Handling Boats, Supply Vessels, ROV/ Barge , Anchor Handling Boats, Supply Vessels, ROV/
Equipment, Construction Crew, Welders and Riggers Equipment, Construction Crew, Welders and Riggers
and onboard accommodation and catering.and onboard accommodation and catering.
iii.iii. Pressure Testing and Commissioning are part of the Pressure Testing and Commissioning are part of the
installation scope of works.installation scope of works.
iv.iv. System Testing and StartSystem Testing and Start--up.up.
UNIVERSITY TEKNOLOGI MARA
1.2h. E&P BusinessProject Implementation
Oil & Gas Projects Milestones.
DRILLING and PRODUCTION
i.i. Production wells are drilled by a Drilling Contractor for Production wells are drilled by a Drilling Contractor for
the whole drilling campaign to completely produced the whole drilling campaign to completely produced
the prospects.the prospects.
ii.ii. The specified drill rig is mobilized and the drilling will The specified drill rig is mobilized and the drilling will
start.start.start.start.
iii.iii. The First Oil/Gas is the first Production starting at the The First Oil/Gas is the first Production starting at the
platform when the first well is completed and producedplatform when the first well is completed and produced
iv.iv. The drilling campaign will drill all the planned The drilling campaign will drill all the planned
production wells on the platform before the drill rig is production wells on the platform before the drill rig is
demobilized.demobilized.
UNIVERSITY TEKNOLOGI MARA
2. E&P Project Costs.
a. CAPEX Costs.
Exploration Seismic Survey
- Exploration wells
Appraisal wells
Platforms / Jackets
Development Wells
Production Facilities
Pipelines inter-platforms & to shore
Terminals & Export facilitiesTerminals & Export facilities
b. Operating & Maintenance Costs.
c. Abandonment Costs.
Facilities Mothballing & Removal,
Wells plugging & Facilities Removal
UNIVERSITY TEKNOLOGI MARA
2a. E&P Project Costs.Development Wells
Depend on - Total Reserves
- Reserves per well
- Off-take rate
Include - Drilling
- Casing/Cementing
- Completion equipment
- Well Heads
Type - Production Wells
- Injection Wells- Injection Wells
Statistics - USD 2 million / well (shallow wells:
4,000 ft.)
- USD 4 million / well (deep wells :
8,000 ft.)
Reserves - 1.5 to 4 million bbls/well
(average 2.5 million bbls/well).
Capacity - 1000 2000 bopd/well
UNIVERSITY TEKNOLOGI MARA
2b. E&P Project Costs.Platforms / Jacket
Depend on - Field Size (Area Extend )
- Water Depth
- Number of Slots for Drilling of wells
Include - Structure
- Piles (depends on depth of penetration) /
Foundation.
- Conductors (for wells)- Conductors (for wells)
Type - Central Production & Processing (CPP)
- Satellite Production (SP)
- Manned / Unmanned
Statistics - CPP = USD 65 million
- SP = USD 25 million
Reserves - CPP = 60 Million Bbls.
- SP = 30 Million Bbls.
Water depth up to
70 meters
UNIVERSITY TEKNOLOGI MARA
2c. E&P Project Costs.Production Facilities
Depend on - Throughput Volume
- Requirement for Gas and/or
Water Injection
- Requirement for Gas Lift Requirement
Include - Processing Facilities Include - Processing Facilities
- Injection Facilities.
- Pumping Facilities
- Power Generation
Statistics - 70% of Wells Costs (Approximation).
UNIVERSITY TEKNOLOGI MARA
2d.E&P Project Costs.Pipelines
Depend on - Throughput Volume
(Diameter & Wall-thickness)
- Distance/Length
- Materials Specifications
Include - Facilities (Pumps & Compressors) Include - Facilities (Pumps & Compressors)
- Storage Capacities
- Loading or Pumping Rates
Type - Oil Pipelines
- Gas Pipelines
Statistics - 15 to 20 for oil CS X 52
(USD/in./m) - 20 to 30 for gas CS X 65
UNIVERSITY TEKNOLOGI MARA
2e.E&P Project Costs.Terminal / Tanker
Depend on - Throughput Volume (Storage Capacity)
- Infra - Structure
Include - Facilities
- Storage Capacities
- Loading or Pumping Rates- Loading or Pumping Rates
Type - Terminal (Oil)
- Tanker (FPSO/FSO)
Statistics - USD 400k/1000 bbls. capacity
- USD 100k-200k/1000 bbls. capacity.
UNIVERSITY TEKNOLOGI MARA
2f.E&P Project Costs.Operating & Production
Depend on - Type of Operations
(Onshore/Offshore)
- Gas Injection
- Water Injection
Include - Facilities Operating/Maintenance
- Overhead and management
- Wells workovers- Wells workovers
Statistics - Based On Cumulative CAPEX
- 9% for Compressors
- 1% for Structures / Jackets
- 1% for Pipelines
- 10 % for wells tangibles
- 10% for on-shore Terminals
- USD 0.5 million USD 2 millions / well
UNIVERSITY TEKNOLOGI MARA
2g.E&P Project Costs.Abandonment
Depend on - Type of Facilities Size & Complexity
- Location (Offshore/Onshore)
- Scope of Work ( Total/ Partial).
Include - Platform/Jacket Removal
- Super-Structure
- Production Facilities
- Pipelines- Pipelines
- Wells plugging
Experience - Based on the Crane Barge Rates &
Transportation Barge Rates
(Study shows that the cost of Platform removal
may be similar to that of installation costs)
- Drilling Rigs Rates and Number of wells
UNIVERSITY TEKNOLOGI MARA
3. PSC-Malaysian Model.
COMPARISON of the 1976, 1985 AND DEEPWATER PSC TERMS
MAIN FEATURES 1976 TERMS 1985 TERMS DEEPWATER TERMS
1. ROYALTY
2. Cost Recovery
a. Oil
b. Gas
3. Profit Split
(in favor of PETRONAS)
a. Oil
10%
20%
25%
70:30
10%
50%
60%
First 10,000 bopd 50:50
Next 10,000 bopd 60:40
10%
75%
75%
(In favor of Contractors)
First 50,000 bopd 14:86
Next 50,000 bopd 18:82a. Oil
b. Gas
4. Contract Period (Yr.)
5. a. Signature Bonus
b. Discovery Bonus
c. Production Bonus
6. Research Cess
7. Carigalis Participation
70:30
3+2 Expl.
4 Dev.
15 (oil) Prod.
Nil
RM2.5 million
RM5.0 million
0.5%
Nil
Next 10,000 bopd 60:40
Above 20,000bopd 70:30
(for first 50 millions bbls)
First 2 trillion scf 50:50
Excess 2 trillion scf 70:30
5-Exploration
4-Development
15-Oil Production
20-Gas Production
Waived
Waived
Waived
0.5%
Minimum 15%
Next 50,000 bopd 18:82
Above 100,000 bopd 37:63
After cumulative production
Of 300 mmbbls 50:50
To be negotiated
7-Exploration
6-Development
25-Oil Production
Waived
Waived
Waived
0.5%
Minimum 15%
UNIVERSITY TEKNOLOGI MARA
4. Projects Lifecycle
PrePre--DevDev BuildBuild--UpUp PlateauPlateau DeclineDecline AbandonAbandon
PRODUCTION
ENVELOP
TimePOTENTIAL PROJECTS : Funding Requirements
NEW PROJECTS : High Capital Spending
YOUNG PROJECTS : Cash Generating
AGEING PROJECTS : Self Financing
ABANDONMENT:
Cash SinkMAINTENANCEOPERATIONS &ACQUISITION
UNIVERSITY TEKNOLOGI MARA