Introduction to Oil & Gas

Exploration and Processing

[email protected] www.ifluids.com
 iFluids Engineering
On-Line Webinar Session 2020

“Introduction to Oil & Gas Exploration

and Processing”

PRESENTER
N. NAGARAJAN, M.E.(Chemical)
Technical Director, iFluids Engineering
Chairman, IIChE – CRC.

iFluids Engineering Webinar Presentation, 19th July 2020

 OIL & GAS INDUSTRY – AN OVERVIEW

The dependency on Oil & Gas products, are evident in

all aspects of our daily life -
•How they were formed ?
•How are oil and gas deposits located?
•How are they safely and efficiently extracted for
onward processing without creating detrimental
environmental impacts ?
This is a comprehensive presentation designed to give
an overview and to introduce oil & gas operations.

Introduction to Oil & Gas sector 19th July 2020

 Fossil Fuels
What is a fossil fuel?
➢ Fossil fuels are hydrocarbons such as Coal, Oil and Natural gas.
➢ Sourced from the organic remains of prehistoric organisms.
How do fossil fuels form?
❖ Oil and Gas are formed from the organic remains of marine organisms.
❖ Coal is typically formed in non-marine settings from the remains of land
vegetation.
Oil & Gas formation
▪ Oil and Gas formation begins with the accumulation of organics on the sea-
floor.
▪ The sediment pile becomes deeper and the organics within it are
subjected to Heat and Pressure which leads to formation of Oil and then
Gas.
▪ The geometry of the reservoir and cap-rock bodies must be such that the
hydrocarbons become trapped; usually folding will suffice.

Introduction to Oil & Gas sector 19th July 2020

 Exploration methods

Visible surface features

❖ Oil Seeps.
❖ Natural Gas Seeps.
❖ Pock marks (Under water craters made by escaping gas).
Exploration Geo-Physics
➢ Gravity Survey (Gravity meter).
➢ Magnetic Survey (Magnetometer).
➢ Passive Seismic or Seismic Reflection Surveys.
➢ A significant amount of Geological, Structural and Seismic
investigation must first be completed to redefine the
potential Hydrocarbon drill location from a Lead to a
Prospect.

Introduction to Oil & Gas sector 19th July 2020

 Oil & Gas Exploration Economics

•Oil exploration is an expensive, High-risk operation.

•Exploration is generally only undertaken by very large
Corporations or National Governments.

Cost of Oil Exploration :

➢ Shallow shelf oil wells cost USD$10 – 30 Million.
(e.g. North sea)
➢ Deep water wells can cost up to USD$100 million plus.

Introduction to Oil & Gas sector 19th July 2020

 Definition of Oil Reserves
Oil reserves are primarily a measure of geological Risk of the Probability of oil
existing and being producible -
(A) Under current economic conditions.
(B) Using current technology at current prices.
(C) With current commercial terms and Government consent.
Three categories of reserves are : Proven, Probable, and Possible Reserves
-
◼ Proven reserves - Defined as oil and gas "Reasonably Certain" to be producible
satisfying (A),(B) & (C) - also known in the industry as 1P. e.g.,P90 - i.e. having
a 90% certainty of being produced.
◼ Probable reserves - Defined as oil and gas "Reasonably Probable" of being
produced satisfying (A),(B) & (C) - Industry specialists refer to this as P50 - i.e.
having a 50% certainty of being produced. This is also known in the industry
as 2P or Proven plus probable.
◼ Possible reserves - i.e. “Having a chance of being developed under favourable
circumstances" - Some industry specialists refer to this as P10 - i.e. having a
10% certainty of being produced. This is also known in the industry as 3P or
Proven plus probable plus possible.

Introduction to Oil & Gas sector 19th July 2020

 Drilling Equipment

Tricone rock bit

PDC bit for well drilling

Well drilling is the process of drilling a hole in the ground for the extraction of Natural
Resources such as
❖ Water , Natural gas or Crude Oil.

Drilling for the exploration of the natural Resources underground (such as Oil & Gas) is
best described as borehole drilling, or “Drilling”.

Well drilling can be done either manually or mechanically and the nature of required
equipment varies from Simple and cheap to very Sophisticated.

Drill bits are made of Diamond (due to it’s hardness).

Introduction to Oil & Gas sector 19th July 2020
 Drilling and Production Process
Step 1: Gathering Seismic information
The existence of oil and natural gas may be determined by using sound waves
(Process called 3-D seismic). Vibrations are sent underground and reflected back to
a listening device on the surface. Different zones and formations below the earth
reflect these vibrations at different speeds, allowing operators to generate a
picture or cross section of the potential zones and structures located beneath the
surface.

Step 2: Signing the Leasing Agreement

Standard Oil and Natural gas lease forms establish partnership between the
mineral Owner and Operator for the drilling and production of oil and natural gas.
The mineral owner bears no risk, but in return receives regular royalty payments
based on the well’s production revenue. The operator incurs all risks and costs
associated with drilling and producing the well.

Step 3: Preparing the Drill site

After a lease agreement is signed, Operator builds drill sites, utilizing as small an
area as possible that will safely accommodate the drilling Rig and associated
equipment. Once drilling is completed, the drill site is typically downsized to a
minimum area for the surface production equipment.

Introduction to Oil & Gas sector 19th July 2020

 Drilling and Production Process (Contd.)

Step 4: Drilling
Once the drilling rig and other necessary equipment are in place, the drilling
process begins. The depths of wells vary greatly depending on the formation and
play. Some operators specializing in horizontal drilling techniques, begin with
vertical hole before drilling horizontally into the potential productive zone to
recover the maximum reserves.

Step 5: Completing
As a well reaches the completion phase, the original drilling rig is removed and a
smaller completion rig is moved-in to perforate and treat the potentially
productive zones. These high-technology “fracing” completion processes stimulate
production by pressuring completion fluids and materials into the zone and creating
cracks for the gas to flow up into the wellbore.

Step 6: Producing
A wellhead or “Christmas tree” is placed on top of the existing well site to control
and regulate the flow of gas into a pipeline in order for the gas to be transported
to market through a regional pipeline system.

Introduction to Oil & Gas sector 19th July 2020

 Wellhead Equipment - Christmas Tree
In Petroleum and Natural gas extraction, a Christmas tree, or "tree", (not “Wellhead"
as sometimes incorrectly referred to) is an assembly of Valves, Spools, and Fittings
used for an Oil well, Gas well, Water injection well, Water disposal well, Gas
injection well, Condensate well and other types of wells. It was named for its
resemblance to a “Decorated Tree”

Drillin
g

Introduction to Oil & Gas sector 19th July 2020

 TYPES OF WELLS

Introduction to Oil & Gas sector 19th July 2020

 History of Off-Shore Oil & Gas Exploration

When did the Offshore Industry begin?

 First Submerged Oil Well around 1891 at Grand Lake, St. Marys in Ohio, USA.

 Submerged Oil well in Salt water 1896 at Santa Barbara channel in California, USA.

 The First platform out of sight of land was built at Louisiana Offshore in 1947, USA.

 Initial Platforms developed in Shallow waters at depths of 14 to 20 ft.

 The offshore industry has moved from the First Platform to the present stage of

safely producing at 7000 feet (2100 meters) of water and safely drilling at 10000

feet (3050 meters) of water.

 The industry is still learning & there is more to come !!

Introduction to Oil & Gas sector 19th July 2020

 Louisiana : Sep.9,1947 Ship Shoal Block 32

Introduction to Oil & Gas sector 19th July 2020

 Lake Maracaibo, Venezuela in 1920

Introduction to Oil & Gas sector 19th July 2020

 Caspian Sea - Soviet Era Up To 100 KM Offshore

➢ The Oil Rocks, a

full town created
in 1947 on the
Azerbaijani side
of the Caspian
Sea

➢ The pearl of
Soviet and
Azerbaijani
ambition in the
1950s.

Introduction to Oil & Gas sector 19th July 2020

 Types of Off- Shore Facilities

 Fixed Platforms – up to 520 m water depth

 Compliant Towers – 450 to 900 m water depth

 Semi-Submersible Platforms – 60 to 3050 m water depth

 Jack-up Platforms – 120 to 170 m water depth

 Drill Ships – Can drill in water depths up to 3660 m

 Tension-leg Platforms – 200 to 1300 m water depth

 Spar Platforms – 588 to 2438 m water depth

 Floating Production systems - FPSO, FSO

Introduction to Oil & Gas sector 19th July 2020

 Fixed Platform - Installation

Introduction to Oil & Gas sector 19th July 2020

 Jacket Load-out (Transportation)

Introduction to Oil & Gas sector 19th July 2020

 Completed Production Platform

A typical offshore

Oil / Gas platform.

Introduction to Oil & Gas sector 19th July 2020

 Concrete Piled Platform

Introduction to Oil & Gas sector 19th July 2020

 Typical Fixed Platforms in operation

Introduction to Oil & Gas sector 19th July 2020

 Semi – Submersible Platform

Introduction to Oil & Gas sector 19th July 2020

 Semi – Submersibles in Operation

Introduction to Oil & Gas sector 19th July 2020

 Platform P-51 off the Brazilian coast is a
semi-submersible platform

Introduction to Oil & Gas sector 19th July 2020

 Jack-up Platform – Different types

Introduction to Oil & Gas sector 19th July 2020

 Transportation of Jack-up Unit

Introduction to Oil & Gas sector 19th July 2020

 Operating Jack-up Unit

Introduction to Oil & Gas sector 19th July 2020

 Drill Ships – Earlier and Modern versions
Zapata Sidewinder Offshore Malaysia,1963

Introduction to Oil & Gas sector 19th July 2020

 Floating Production Systems

Introduction to Oil & Gas sector 19th July 2020

 Foinaven FPSO

Introduction to Oil & Gas sector 19th July 2020

 Summary of Deep Water Production Systems

Introduction to Oil & Gas sector 19th July 2020

 World’s first Advanced Floating Gas Refinery

Introduction to Oil & Gas sector 19th July 2020

 Crude oil / Natural gas Characteristics

➢ A mixture of hundreds of hydrocarbon compounds

(including Oil and Gas).
➢ Components range from Methane to Asphalts.
➢ Also contains emulsified salt water (Formation water).
➢ Hydrocarbons are Lighter than water.
➢ Crude types range from very Light such as Condensate to
very Heavy as Asphalt.
➢ Can be Sweet (no sulfur) or Sour (with Sulfur).
➢ Characterized by Density, expressed in degrees API
gravity.

Introduction to Oil & Gas sector 19th July 2020

 API Gravity

API gravity is a measure of Oil Density

Given by the formula -

❑ Degrees API = (141.5/SG at 60 °F) - 131.5

❑ Water has an API gravity of 10 degrees

➢ Light Crude Oil > 31, API Gravity

➢ Intermediate = 22-31, API Gravity
➢ Heavy crude < 22, API Gravity

Introduction to Oil & Gas sector 19th July 2020

 Hydrocarbon Families - Paraffins

Hydrocarbon Chemistry – Paraffins

CH4 : Methane , BP (-161 deg C)

C2H6 : Ethane , BP (- 88 deg C)

C3H8 : Propane , BP (- 40 deg C)

C4H10 : Butane (normal and iso-) ,

BP (0 deg C/ -12 deg C)

Introduction to Oil & Gas sector 19th July 2020

 Hydrocarbon Families - PONA
Types of Hydrocarbon Compounds

➢ Paraffins : straight or branch chain : CnH2n+2 > Saturated

➢ Cycloparaffins (Naphthenes) : CnH2n > Saturated

➢ Alkenes (Olefins) : Mono-olefins : CnH2n > Unsaturated

➢ Aromatics : Stable Benzene : CnH2n-6 > Unsaturated

➢ Diolefins, Dienes or Alkenes : CnH2n- 2 > Unsaturated

➢ Alkynes : CnHn > Unsaturated

ACETYLENE

1,3-BUTADIENE

Introduction to Oil & Gas sector 19th July 2020

 FUNDAMENTALS OF OIL AND GAS

Diagram of Oil and Gas bearing deposits or fields

Ground or sea bed level

Gaseous layer at Impervious layer above

top of oil field oil bearing rock layer

Oil bearing layer

Water layer below oil

Introduction to Oil & Gas sector 19th July 2020

 Overall Block Diagram - Oil and Gas Industry

Introduction to Oil & Gas sector 19th July 2020

 CRUDE OIL CONSTITUENTS
CRUDE OIL : From the Well
❖ Mixed Hydrocarbon Oils

❖ Gases

❖ Water

❖ Dirt (Minerals) / Contaminants (Metals)

Field separation
➢ May be several stages of pressure letdown and stilling

➢ Separates Hydrocarbon Mixture into

❑ Gas (Re-injected, Flared or sent to Processing)
❑ Oil (Crude Oil - for Shipment and/or Storage)
❑ Water (for Treatment & then Disposal)
❑ Solids ( Sand, Dirt - for Disposal)
Introduction to Oil & Gas sector 19th July 2020
 Typical processing requirements for well fluids
prior to export
GAS DEHYDRATION
GAS AND DEWPOINTING
SWEETENING

❖ WELL HEAD SEPARATION GAS TO EXPORT

❖ PRIMARY SEPARATION OR REINJECTION
❖ PARTIAL PROCESSING DEW POINT COMPRESSION
CONTROL CHEMICAL
INJECTION
ELECTROSTATIC COALESCENCE

OIL TO EXPORT
DEOXYGENATION

REJECT OIL WATER TO DISCHARGE FILTRATION DISINFECTION

PRODUCED OR REINJECTION
WATER
TREATMENT CHEMICAL
INJECTION

Introduction to Oil & Gas sector

19th July 2020
 Typical Field Separation Scheme

Associated Gas to
To HP Shipment or Re-injection
Flare
To MP
From the Flare
Well FIRST STAGE
To LP Flare

Water and
solids
SECOND
STAGE

Water and
solids
Crude Oil to
THIRD Desalting or
HEATING STAGE Shipment or Storage
(Optional)

Water and solids

Introduction to Oil & Gas sector 19th July 2020

 Typical Gas Processing Steps
Gas Processing
❖ At the well : Remove dirt, free water, condensate etc. and make
it ready to transport.
❖ Gas to be stable and at a high enough pressure to reach its
destination. Minimal processing is normally done close to the
well.

Typical operations (Simple clean-up)

➢ Glycol or Methanol injection - to absorb water vapour and
prevent hydrate formation.
➢ Corrosion Inhibitor injection - to prevent gas contaminants from
damaging the pipeline.
➢ Heating - so that frictional pressure drop and associated
temperature decrease does not result in condensate fallout.
➢ Compression - to ensure the gas will reach its destination.

Introduction to Oil & Gas sector 19th July 2020

 Typical Glycol (TEG) Drying System

Dry Gas Out Water

Lean Glycol vapor out
Cooler

Glyco
Flash l Still
Gas
Flash Tank

TEG Reboiler

Burner
Glycol
Filters Stripping column
Wet Glycol
Gas In Contactor
Surge Drum

Lean-Rich
Exchanger
Introduction to Oil & Gas sector
19th July 2020 Rich Glycol
Lean Glycol Glycol
Pumps
 Produced Water Treatment

❖ De-oiling
❖ Filtration

Typical Processes
1. Dissolved Air Flotation
(DAF)

2. Induced Gas Flotation

(IGF)
3. Hydro cyclone

Introduction to Oil & Gas sector 19th July 2020

 Typical Oil & Gas Field Equipment

Typical Vessel type Slug Catcher

Gas Out

Demister
Pad

Pipeline Fluids in

Liquid level

Baffle plate

Vortex Breaker on
raised pipe
Condensate Glycol/Methanol/Water/Dirt
out out

Introduction to Oil & Gas sector 19th July 2020

 Typical Oil & Gas Field Equipment

A Typical Finger type Slug Catcher

Pipeline Fluids in

Gas Out

80 -100 meters long or more, and sloped

towards liquid outlet end

Liquids Out

Introduction to Oil & Gas sector 19th July 2020

 Typical Oil & Gas Field Equipment
Gas Out
Typical Three Phase Separator
Inlet pipe with
baffle device
Demister Pad
or Vane pack
(optional)

Overflow
Weir Plate

Perforated Inlet Coalescer

Calming Baffle Plate Pack Vortex
plate (optional) Water/Dirt Oil Out Breakers
Out

Introduction to Oil & Gas sector 19th July 2020

 Typical Oil Processing Facility Schematic
To Fuel
Gas

To Flare

Heat
Manifold Exchanger

Crude from
Wellhead
Dehydration/d
esalting

Heating
Fluid
Crude Oil to Shipping

Water
Conditioner

Water to Re-injection
or Disposal

Introduction to Oil & Gas sector 19th July 2020

 Final Oil Processing prior to Shipment

Dehydration / Desalting
❖ Primary water removal
❖ Electrostatic DEHYDRATION / DESALTING

Stabilisation
❖ Mild heating to boil off the last of the light fractions
(mostly i and n-butanes)
❖ Pressure reduction to allow last of light ends to evaporate
❖ Stabilisation Column

Introduction to Oil & Gas sector 19th July 2020

 Electrostatic Crude Desalter / Dehydrator

1. Vessel is liquid full.

2. Salt is dissolved in water phase.
3. Water is emulsified in small droplets.
4. Alternating electrical field acts on
conductive salt water droplets.
5. Droplets vibrate as a result, collide,
coalesce and fall out of emulsion.

Introduction to Oil & Gas sector 19th July 2020

 Crude Stabilization

Light Gas

Stabilized Oil
Water Draw-off

Crude Oil
Feed /
Effluent
Exchanger
Re-boiler

Introduction to Oil & Gas sector 19th July 2020

 Pipeline – Launcher / Receiver

Introduction to Oil & Gas sector 19th July 2020

 Typical Pigs

Cylindrical Brush Pig Gauging Pig Gauge Plate

Brush
Sphere Pig - Used for
separation or displacement

Foam Pig

Introduction to Oil & Gas sector 19th July 2020

 Introduction to Oil & Gas Exploration / Processing

➢ Questions ?

❖ Thank You !

Introduction to Oil & Gas sector 19th July 2020