August - September 2015 Vol. 12 No. 5 ` 150
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August - September 2015 Vol. 12 No. 5 ` 150
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CONTENTS
INTERVIEW ‘The Government and Producers have the same convergent objectives’
VOL. 12 | NO. 5 | AUGUST - SEPTEMBER 2015 | MUMBAI ` 150
– Ashu Sagar, Secretary General, Association of Oil & Gas Operators - India
OFFSHORE WORLD R.NO. MAH ENG/ 2003/13269 Chairman Publisher & Printer Chief Executive Officer
EDITORIAL
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Offshore Reserves to Account for 50% of Oil Production in Abu Dhabi by 2018
8
– Rakesh Roy
FEATURES
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STG+ Technology: Transforming Underutilised Natural Gas Resources into Valuable End Products 14
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– Sam Golan Building Blocks of FSRU Development: Key Challenges and Opportunities
18
– Anand Kumar, Scott Smith, Maruthi Ethakota and M K E Prasad Data Excellence in Oil & Gas Industry 24 – Vasudha Prabhala and Sandeep Roy Robust ERP in Upstream Oil & Gas Industry
28
– Vinodkumar Raghothamarao Project Management Challenges in Large Oil & Gas EPC Projects
32
– Ajay Gharpure and Vinay Tamhankar MOSES Minimises Redundant Steel in ORCA Offshore’s Analysis of Self-installing Platformy
36
– Anne-Marie Walters When Intelligent P&IDs are not Enough 38 – Vornel Walker Energy Commodities Exhibit Range-bound Price Movement
41
– Niteen M Jain & Nazir Ahmed Moulvi
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Offshore World | 6 | August - September 2015
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NEWS FEATURES
OFFSHORE RESERVES TO ACCOUNT FOR 50% OF OIL PRODUCTION IN ABU DHABI BY 2018 As per report, offshore reserves will account for approximately 50 per cent of total oil production in Abu Dhabi by 2018, thus advancing the sector through developments in research and technology is becoming ever more critical to preserving it as a valuable energy resource. Dagher Al Marar, CEO, Abu Dhabi Offshore Services Company, ESNAAD, says that tapping into offshore oil reserves has always had its specialty and challenges, and advances in technology have been helping the industry overcome such challenges.
O
ffshore reserves will account for approximately 50 per cent of total oil production in Abu Dhabi by 2018 as a result of continued investments in production capacity, experts revealed.
With USD 25 billion worth of investments in offshore oil projects planned by the Abu Dhabi National Oil Company (ADNOC) over the next five years, advancing the sector through developments in research and technology is becoming ever more critical to preserving it as a valuable energy resource, said industry leaders. The ADNOC investment is part of the UAE’s strategy to boost its total oil output capacity to 3.5 million barrels per day (bpd) by 2017-18 from the current 2.8 million bpd. Currently, an estimated 40 per cent of oil produced in Abu Dhabi comes from offshore reserves, however sources say that figure will rise to 50 per cent in the next three years. Globally, about 30 per cent of oil produced worldwide comes from offshore oil wells, and offshore resources are playing a greater role in supplying the rising demand for energy, with a growing interest in the potential of deep water reserves. According to figures from a 2014 report by Total, the deep offshore is believed to contain more than 5 per cent - an estimated 300 billion barrels - of the world’s liquid hydrocarbon resources, or 12 per cent of total conventional oil resources. In 2013, deep water liquid reserves accounted for 6 per cent of global production. That share is forecast to rise to close to 11 per cent of conventional oil output, or 9 million barrels per day, by 2035, according to the same document.
The ADNOC investment is part of the UAE’s strategy to boost its total oil output capacity to 3.5 million barrels per day (bpd) by 2017-18 from the current 2.8 million bpd. www.oswindia.com
Dagher Al Marar, CEO, Abu Dhabi Offshore Services Company, ESNAAD, said: “Offshore production will represent around 50 per cent of oil production in Abu Dhabi by 2018, and therefore ESNAAD’s offshore services primary role is to accommodate the logistical and technical requirements of this vital sector within the emirate of Abu Dhabi. Tapping into offshore oil reserves has always had its specialty and challenges, and advances in technology have been helping the industry overcome such challenges.” Efficiency through innovation and automation should be the focus of the industry when considering cost-cutting measures in today’s economic environment, added Mr. Al Marar. “Thanks to technology and new field discovery, hydrocarbons will continue to be the primary source of energy as long as they are available,” Mr. Al Marar said. “Although it is important that we look into alternative sources of energy – particularly renewable energy – we also must continue developing the ones we have available.” - Rakesh Roy
Offshore World | 8 | August - September 2015
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INTERVIEW
‘The Government and Producers have the same convergent objectives’
Though the global upstream oil & gas sector has been going through a rough patch since few times due to the plunging oil price, India upstream sector has also affected with the wind, along with numerous issues related to upstream activities in the country. Ashu Sagar, Secretary General, Association of Oil & Gas Operators (AOGO) – the representative body of oil & gas operators involving upstream operations in India that apprises the industry views and interests to the Indian regulatory and legislative bodies for developing proposals & policies for the industry that are effective and practical to implement – says that hydrocarbon price volatility & uncertainty is a fact of life for all upstream players and Indian players suffer like their Global peers in Oil. In an exclusive interaction with Rakesh Roy, he shares his views on the nitty gritty of the Indian upstream hydrocarbon sector. Indian Oil & Gas sector with its Geological challenges, administrative processes, administered gas prices, incestuous regulatory setup is currently seeing vigour only in the PSU sector where commercial decisions can be subordinated to national interest.
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Offshore World | 10 | August - September 2015
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INTERVIEW Despite 100% FDI in Indian oil & gas sector and nine NELP rounds, international oil companies have been reluctant to invest in Indian hydrocarbon sector. What are the bottlenecks that hinder the growth rate of the industry and the right approaches need to be addressed in this direction? We had good terms but challenging geology gives a lower probability of success. Top that with thinner sands resulting in smaller pools. These factors make us attractive only to a certain segment of exploration players. Government focus generally has been to get big players. We have already seen more than a dozen foreign companies quit the Indian Operations. It is not a secret that many more may like to quit if they can dispose of their assets at a fair price. Government therefore needs to review its administrative and policy framework. Is this in tune with what is required to make this sector grow and become an attractive destination? Why is it that despite being aware of issues and solutions, the decisions tend to be politically attractive and administratively safe - despite their being economically disastrous. As per media report, NELP X, which has been in back burner for a quite few times, is likely replaced by open acreage licensing policy (OALP). It has also heard that NELP X may be sugar-coated with a uniform licensing model — and also usher in the revenue-share model. Please share you view on these issues? OALP is certainly a welcome step. However, no exploration company expressed being overwhelmed by Revenue Sharing Model. We don’t know enough on how the Government is tackling the known problems for unconventional resources in Uniform Licensing Policy. Otherwise even the current contracts have no bar on Shale exploitation. Atleast I have not seen any real enthusiasm for the factors mentioned by you. How has the current gas price at USD 5.6, which is further projected to slide to USD 4.8 per mmbtu from Oct 1, affected the investment scenario in India oil & gas sector? As a matter of fact the current trends indicate that the price shall go way below the 2007 price of USD 4.20. These are difficult times. You can be sure that low prices are hitting investment in exploration all over the world. The first round launched by Mexico a few months back has been an abject failure. Indian Oil & Gas sector with its Geological challenges, administrative processes, administered gas prices, incestuous regulatory setup is currently seeing vigour only in the PSU sector where commercial decisions can be subordinated to national interest. There is a likelihood of this being the theme for next some time. What are your thoughts on the unprecedented crude oil fall that the industry has to face? How has the fall in price affected the net price realisation per barrel to Indian E&P players? Hydrocarbon price volatility & uncertainty is a fact of life for all upstream players. The periods of boom and bust repeat. Many more M&As, busts are on the cards. These are tough times. The current trough is likely to last long and be more painful. www.oswindia.com
A focused & objective based approach to expeditiously and efficiently extract the last drop of Oil and restructuring for an independent regulator; as well as a single window contract administrator cum facilitator – both away from the policy maker shall go a long way to make working in India attractive. The Indian players suffer like their Global peers in Oil. However for Gas players, where prices are administrative, the situation is critical. The earlier formula price was way below the market price, and is taking a huge beating. Companies never got the upside to build a capacity to sustain tough times. Soon companies may be moving to operating loss positions. It is a wild guess what shall happen then? The tragedy is that in other domains a boom period may follow to help companies recover their losses. In India with basic thinking developed from cost plus regimes, these companies can never get that opportunity and may never fully recover. What are the new frontiers for the domestic oil and gas industry to encourage the upstream activities in India? From the Government Policies and initiatives announced so far, I don’t see anything encouraging. I certainly hope that there shall be policy reviews if this Government seriously wants to achieve the 10 per cent import reduction set by the Hon’ble Prime Minister. There has been a long discussion of developing unconventional hydrocarbons like, CBM, Shale gas in the country. What is the potential & challenges for developing unconventional hydrocarbons in India? There isn’t enough information in public domain to put down an estimate. Also there are known initiatives required to be undertaken by Government. These are not yet on the horizon. Shale Gas is in a significant quantity is quite far away. How do you evaluate the current regime in center in policy & regulatory fronts of oil & gas sector and what are expectations of Indian hydrocarbon producers from the government that will create a cordial environment to attract investment from domestic players and international players too? The Government and Producers have the same convergent objectives. Government is the Sovereign. It needs to increase the interaction with the operating stakeholders with a willingness to take economically valid decisions irrespective of how difficult or bitter these may look. There is no genuine empowered independent regulator in India, although industry has been highlighting the need thereof. A focused & objective based approach to expeditiously and efficiently extract the last drop of Oil and restructuring for an independent regulator; as well as a single window contract administrator cum facilitator – both away from the policy maker shall go a long way to make working in India attractive.
Offshore World | 12 | August - September 2015
FEATURES
STG+ TECHNOLOGY: Transforming Underutilised Natural Gas Resources into Valuable End Products While the World Bank-led Global Gas Flaring Reduction Partnership (GGFR) has concerned about the rising of CO 2 in the atmosphere due to flaring at oil production sites, oil and gas companies is looking for new ways of monetising natural gas resources, especially those that are stranded, either for economic reasons – the size of the resource is too small to justify the investment in production – or because they are located in remote locations with limited access to pipelines to deliver the gas to market. The article explains on how can STG+ process - one of the most effective GTL technologies - transform stranded natural gas resources that would otherwise be unexploited or flared into valuable transportation fuels and chemicals like high value gasoline or methanol.
T
he record production of gas and oil around the world is prompting oil and gas companies to seek new ways of monetising natural gas resources, especially those that are stranded, either for economic reasons – the size of the resource is too small to justify the investment in production – or because they are located in remote locations with limited access to pipelines to deliver the gas to market. The quest for new ways to use underutilised natural gas is also motivated by the need to comply with new initiatives to reduce flaring. The World Bank-led Global Gas Flaring Reduction Partnership (GGFR) estimates that approximately 140 billion cubic meters of natural gas are flared worldwide annually, releasing 300 million tons of CO2, a greenhouse gas that contributes to global warming, into the atmosphere.
they can easily be disassembled and reassembled elsewhere. They are also simple to operate, requiring minimal labour and only yearly maintenance, which translates to ultra-low operations and maintenance costs. The STG+ process is also suitable for stranded gas applications because of its flexibility in terms of both feed gas composition and end products.
Primus GTL Solution Examples Associated Gas at Oil Wellpad
Primus Unit
As a result, initiatives aimed at accelerating the reduction of routine flaring at oil production sites are being implemented around the world, including the World Bank’s ‘Zero Routine Flaring by 2030’ initiative, launched in April 2015, which has been endorsed by dozens of governments, oil and gas companies and development institutions, including Royal Dutch Shell, Statoil and BP, as well as oil-producing countries such as Norway, Gabon and Kazakhstan. The most effective way to monetise underutilised natural gas resources – while also complying with anti-flaring initiatives – is through gas-to-liquid (GTL) technologies that transform stranded natural gas resources that would otherwise be unexploited or flared into valuable transportation fuels and chemicals. The STG+ Process One of the most effective GTL technologies is Primus Green Energy’s proprietary STG+ process, which converts natural gas into high value gasoline or methanol. The process is extremely efficient, producing a yield of 4 to 5 gallons of gasoline per 1 MMBtu of natural gas – one of the highest conversion efficiencies in the industry. STG+ has a number of advantages that make it ideal for stranded gas applications, most notably that – unlike other GTL technologies – it is economical at scales as small as 5,000 MMBtu/d (100,000 Nm^3/d) of feed gas and that it can easily be deployed to remote locations where natural gas is typically stranded. This easy deployability is due to the fact the units are modular, scalable and flexible: trucked in and assembled at the site, they can be integrated with existing operations or self-sufficient, depending on the need. If they are no longer needed at one site, www.oswindia.com
Liquid
High CO2 Gas from Stranded Offshore Gas Field
(Gasoline, Diluent, Methanol)
Associated Gas from Offshore Oil Field
Flexible Feed Gas Requirements The STG+ process accepts a wide range of feed gas types with minimal pretreatment, including wellhead gas, gas with high levels of CO 2 (up to 25 per cent) and dry or wet gas with no limits for C2, C3 or C4. The ability to accept feed gas with high CO2 levels is particularly important in offshore applications since offshore gas often has a high CO2 content. Both the natural gas and the CO2 are monetised, with all of the gas being transformed into a liquid product. The STG+ process, which has been awarded an Approval in Principle (AIP) designation for offshore use from the American Bureau of Shipping (ABS), also has other advantages for offshore applications, including that it requires no oxygen or air separation units, which present explosion hazards; that its flexible modular layout can easily be retrofitted to tight spaces; that it does not produce any wastewater due to integrated recycling of process water; and that it can be automated for remote operation.
Offshore World | 14 | August - September 2015
FEATURES Primus is in the process of forming marine engineering partnerships for offshore applications on barges, FPSO, and FSO vessels, and the STG+ systems are available now for applications in which natural gas produced offshore is piped to land, where it is often flared. In such cases, a STG+ system can be set up on land to process the associated gas from an offshore field.
With the end of the era of ‘easy’ oil, drilling is becoming increasingly difficult and expensive. At the same time, our existing fossil fuel resources are not being fully utilised. The advent of low-cost, efficient GTL technologies such as STG+ addresses these issues by making better use of what we have while also helping to preserve the environment. other GTL technologies, STG+ minimises complexity, improves product quality and increases yield, which translates to low capital and operating costs. When the cost of the natural gas feedstock is less than the market rate – as with flare gas – the economics are even more favourable.
A Range of End Products Using the proprietary STG+ technology, Primus offers three types of GTL systems, accommodating regional market demand and customer needs for different liquid products. One system produces high quality, zero-sulfur gasoline; another system produces methanol; and a third system produces diluent. The ability to produce methanol or diluent onsite also creates a local, vertically integrated source of these products. Methanol is in demand as a wellsite injection agent to prevent hydrate formation. Diluent is also in demand at heavy oil production sites to lower crude viscosity for easier pipeline transport. Also important in offshore associated gas applications is the fact that the gasoline or diluent end product can be mixed with crude for easy transportation offsite, which eliminates the need for storage of an additional liquid product in the limited onsite space in offshore facilities. How It Works The STG+ process starts with steam methane reforming, in which natural gas or other hydrocarbon gases react with steam at a high temperature and pressure to produce synthesis gas, or syngas.
The STG+ process also has advantages over the leading competing GTL technology, Fischer-Tropsch (FT). FT was invented in Germany in the 1920s and later used by the Germans during World War II to fuel the Third Reich’s Luftwaffe and tank divisions. A main drawback of FT is that it produces a synthetic crude that must then be further refined before end use. While some companies are now trying to use FT on a smaller scale for stranded and flared gas applications, the two-step synthesis and refining process is an inherent limitation that adds considerably to capital and operating expenses. By contrast, the fact that STG+ is economically viable and practically feasible at small scales means that the GTL potential of a substantial portion of the world’s unexploited gas fields could be tapped, transforming natural gas into valuable end products. Similarly, STG+ offers the opportunity to monetise associated gas that is now being flared due to the limited pipeline infrastructure in remote areas where much of the world’s oil production is now taking place. Since the dawn of the petroleum age, the impetus in the oil and gas industry has always been toward increased drilling. But with the end of the era of ‘easy’ oil, drilling is becoming increasingly difficult and expensive. At the same time, our existing fossil fuel resources are not being fully utilised. The advent of low-cost, efficient GTL technologies such as STG+ addresses these issues by making better use of what we have while also helping to preserve the environment.
Next, the syngas is conver ted into gasoline via methanol and dimethylether intermediates through a proprietary series of fixed bed catalytic reactors. In the final step, the reactor output is condensed and separated. The liquid fuel is piped to a storage unit, while any unconverted gas is recycled, with a portion being used to fuel the reformer. The process water is recycled to the reformer steam boiler, which means that no wastewater is created. By comparison with www.oswindia.com
Offshore World | 16 | August - September 2015
Sam Golan CEO Primus Green Energy Email: info@primusge.com
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Conventional leak detection equipment such as a Volatile Organic Compound meters (or sniffers) mean that the operator must visit and test each potential leak site. Using a FLIR GF-Series thermal imaging camera you get a complete picture and can immediately exclude areas that do not need any action. This means you can achieve enormous savings in terms of time and personnel. Another advantage is that systems do not have to be shut down during the inspection. Depending on the model, a wide variety of gas can be detected. All FLIR GF-Series thermal imaging cameras are dual-use systems. They not only allow the user to detect gases. They can also be used for industrial maintenance inspections.
Captured gas leak
Electrical inspection
Gas leak
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The images displayed may not be representative of the actual resolution of the camera shown. Images used for illustrative purposes only.
flir Gas AD A4 25-5-15.indd 1
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FEATURES
Building Blocks of FSRU Development: KEY CHALLENGES AND OPPORTUNITIES While the share of Natural Gas (NG) in the worlds’ energy mix has been increasing day by day, India’s domestic gas production does not meet its current demand. Thus a substantial quantity of natural gas is imported from surplus gas producing countries to India. NG is transported as LNG, following cryogenic refrigeration, and then regasified close to consumer locations in an LNG regasification plant before final transport by pipeline. These are traditionally located in coastal areas at ports, which present a number of issues. A new concept for floating regasification plants called FSRU (Floating Storage & LNG Regasification Unit) has emerged as an alternative to land based regasification units. The article presents the main design options, challenges and risks of FSRU developments that must be considered when comparing to a traditional onshore land based LNG regasification plant.
W
ith a global energy share of around 24 per cent, Natural Gas (NG) is an important green energy source, particularly for growing economies such as India. India’s natural gas production does not meet the current demand, hence it needs to find cost effective ways to take advantage of NG producing countries either through pipeline or Liquefied Natural Gas (LNG) carriers. For long distances, it is most economical to transport as LNG by liquefying (thereby decreasing volume by ~600 times) and then regasifying near consumer locations. Traditionally LNG regasification plants are located onshore in coastal areas at ports. Recently, a new concept for offshore floating regasification plants called FSRU (Floating Storage & LNG Regasification Unit) has emerged as an alternative to land based regasification units. FSRU is a permanently moored floating vessel for LNG storage and regasification. FSRU can compete with land based LNG regasification under certain business scenarios, however it comes with some challenges and risks which are deliberated in this paper. Major Building Blocks for FSRU Configuration Selection: There is no standard configuration for an FSRU development. But the systems that make up the overall development can be broken down into functional blocks. The major building blocks for FSRU configuration to meet particular business models are FSRU location, mooring system, FSRU acquisition model, LNG storage tank type and capacity, LNG carrier size, LNG vaporiser technology, LNG offloading system LNG stoarge
and power supply system. Some of these are pictorially shown below in Figure 1. Several of the building blocks are limited, due to availability on the market (vessel type and size) or technology limits (LNG transfer) and it is necessary to understand these constantly changing limits and what their selection means to the other parts of the development. A key relationship that must be understood is outlined in Figure 2. The vessel size is defined from the gas send out rate and required availability of the export gas. The contingency is the additional gas required in storage and is determined by the resupply rate and the availability of the resupply. The resupply is more complex and must consider the supply tanker frequency, berthing, weather and LNG transfer technology. When understood early in the development, this relationship can allow a realistic gas supply contract to be drawn up leading to an efficient development. • FSRU Location is heavily dependent on marine & weather condition. Given suitable sea conditions the FSRU will be located offshore, giving the benefit of safe distance and access, but may be located in a port. The ship to ship LNG transfer technology and weather governs this decision. Also proximity to existing gas pipeline network is one of the considerations while deciding the FSRU location. Factors to be taken into consideration are minimum dredging requirement, distance from populated area, avoidance of sensitive environment concerns, draught requirement, soil condition, break water requirement etc. It should be preferably located in a protected harbour to minimise wave and wind effects. ste
Figure 1: Major building blocks of FSRU www.oswindia.com
Fig 2: Key Relationship elements to draw realistic gas supply contracts Offshore World | 18 | August - September 2015
FEATURES • Mooring System can be single point or spread mooring, turret mooring, dynamic positioning system etc depending upon the water depths & weather conditions. • FSRU Vessel (with or without propulsion system or barge) acquisition model can be newly built or a LNG carrier converted to FSRU or chartered. There are limited yards available for building new FSRU and availability has a major impact on schedule of project. Availability of required capacity chartered FSRU depends upon the market availability as there are few suppliers of FSRU. • LNG Storage Tank can be of membrane or moss type. Moss type tank has less of a sloshing effect compared to membrane type. However feasibility of either type of tank can be explored during project execution phase. • LNG Carrier Size is limited in the market and available systems for charter are generally 1,30,000 cbm, 1,70,000 cbm and 2,66,000 cbm (Qmax). Although the larger size is relatively new at time of writing and so a longer lead time must be factored in, affecting the project economics and offsetting the benefits of FSRU. • LNG Vaporiser Technology: There are many technologies available for LNG vaporisation. These are intermediate fluid vaporiser with propane, utilising an open loop with seawater or a closed loop, Open rack vaporiser (ORV), submerged combustion vaporiser (SCV) etc. Selection is made based on location specific conditions, operating expense (OPEX) and capital expenditure (CAPEX) considerations. Most FSRU developed for charter are supplied with IFV with open and closed loop heating to provide flexibility to seawater temperatures. Waste heat from the power generation is captured in the closed loop to supplement the open loop seawater heating system. • LNG Offloading System: These are side by side unloading, tandem or across jetty, rigid or flexible. Offloading system selection is based on location, size of vessel and marine/weather conditions. Technology is limited in this area and a firm understanding of the technology readiness levels will help to frame the development and supply contracts. • Power Supply System: Power system can either integrated with existing ship systems or retrofitted as a standalone gas turbine or gas engine using LNG as fuel. Alternatively power can be sourced from onshore through umbilical, although this has not been proven in practise. Models of FSRU Development Various models of FSRU development are possible based on market availability and regasification requirements. Some of these development models are briefly summarised below. The main selling point of the FSRU model is fast track schedule and reduced CAPEX. • New-build FSRU: New built FSRU is one of the FSRU project development options. Though it offers flexibility with respect to send out capacity, it does not have the same benefits as the onshore development options, as its lead time would be longer as construction schedule depends on the availability of yards. Also its CAPEX is very high compared to other FSRU development options, thus reducing some of the FSRU benefits. • LNG Carrier (LNGC) Converted FSRU: Another development model is to purchase an LNGC and convert it to FSRU. The advantages of this model are short project duration and medium capital expenditure. However it is dependent upon market availability of required LNGC size and also it requires more involved project management. • FSRU Charter: FSRU chartering is one of the lowest CAPEX development options wherein quick monetisation of gas is possible due to the short project duration, however it has higher operating expenses due to chartering cost. • LNG Regasification on Barge: In a similar theme to offshore FSRU, the regasification could be built on a barge that an LNG tanker moors along-side as www.oswindia.com
The major building blocks for FSRU configuration to meet particular business models are FSRU location, mooring system, FSRU acquisition model, LNG storage tank type and capacity, LNG carrier size, LNG vaporiser technology, LNG offloading system and power supply system. storage. The advantage is that it requires only mooring dolphins to be installed around the barge, which could be piled itself to form part of the mooring. Key Opportunities The advantages of FSRU development option for LNG regasification over onshore regasification are: • Short Gestation Period: Chartered FSRU option requires less lead time than onshore regasification development plan, however it depends upon availability of FSRU Vessel as there are few FSRU suppliers available. Chartered FSRU lead time is typically 1-2 years whereas a newly built FSRU requires slightly higher lead time in the order of 3 years. • Low Capital Expenditure: Particularly for the chartered option, CAPEX is much lower than that of equivalent onshore installation. Even for the newly built FSRU option, CAPEX is typically lower than the onshore LNG plant. • Flexibility: FSRU has the flexibility to move the development to a different location. This is particularly important for the dynamic and varying demand scenario of LNG. FSRU can be moved by using ocean going tug boats or more easily if FSRU itself is self-propelled. The additional investment associated with this is only basic infrastructure development (like Jetty, administrative offices etc). It can be also used as an LNG carrier in lean periods. • Fewer Labour Problems: The FSRU development option may bring less labour associated problems compared to the onshore regasification development option as FSRU is operational offshore. • Reduced Onshore Footprint: Most of the processing facilities of Regasification including storage are on the offshore vessel and only limited facilities like custody metering may be at the onshore site requiring minimum onshore footprint. Timing of FSRU project development is very important with respect to availability of FSRU vessel and maturity of LNG/gas purchase agreement to realise all above opportunities. Key Challenges FSRU is relatively new as a development around a dozen operating references and little standardisation. Though technology is proven, the major risk lies in successful delivery and operation of FSRU. The challenges associated with FSRU development options are: • Contingency: Capacities of FSRU available for charter are in the capacity range of 1,40,000 m3 – 1,70,000 m3 which gives lower LNG storage capacity than an onshore development and thereby lower contingency for adverse condition such as cyclone, late arrival of LNG carrier etc. Also expansion possibilities are limited due to space constraints.
Offshore World | 20 | August - September 2015
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FEATURES • Sensitive to Weather Condition: FSRU are sensitive to weather condition like cyclone and hurricane etc which can disrupt the export gas due to delays to the transfer of LNG. • Mooring in Adverse Weather Conditions: If cyclones occur in the area then the FSRU vessel would need to leave the mooring during these times. Options are to retain the ship systems and head to open sea, or to install a mooring in the harbour that can be pulled in and safely anchor the FSRU. The selected option will depend upon the location and marine condition which needs to be anticipated early in the project. • Uncertainty in Regulatory Requirement for Berthed FSRU: An absence of clarity in regulatory requirements, procedures and applicable codes and standards for the floating LNG import development project may lead to regulatory risks which may jeopardise the project. This is particularly important for India as there is still ambiguity about the applicable code requirement for FSRU. Authorities should be engaged early to gain clarity on expectations. It is important to ascertain the requirement of exclusion radius, based on Quantitative Risk Assessment (QRA) study, from FSRU to habituated area of shore to avoid regulatory risks at later date. In case of sea water based vaporisation technology for FSRU, cold sea water recirculation effect to be studied and suitable mitigation method to be applied. Applicable Coastal Regulatory Zone (CRZ) guidelines have to be adhered for cold sea water discharge from FSRU in case of sea water is used for LNG Vaporisation. • Difficulty in Maintenance Activities. Maintenance activities at FSRU are constrained due to limitation of space. Also for a long duration FSRU, the main concern is storage tank inspection. The inspection philosophy of storage tank should be confirmed with class certification agencies prior to selection of FSRU. Economic Consideration of FSRU Development Option From an economic stand point, typically a chartered FSRU or LNGC converted FSRU definitely has a better rate of return, lower CAPEX and lower cost of production compared to an equivalent onshore LNG regasification plant. Even a newly built FSRU has the edge over an onshore LNG regasification plant. However a detailed economic evaluation is required on a case to case basis considering market uncertainty and market availability of FSRU.
Various models of FSRU development are possible based on market availability and regasification requirements where the main selling point of the FSRU model is fast track schedule and reduced CAPEX. as insufficient contingency due to limitation in vessel availability, disruption in gas send out and mooring due to adverse weather conditions, limitation in expanding the capacity and difficulty in maintenance. FSRU may have to be disconnected during weather disruptions and may have to be sailed to open sea during that duration. Some of above mentioned constraints can be addressed with reasonable techno/ economic solutions like building the additional storage capacity onshore to accommodate disruptions with relatively little additional cost, or utilising the buffer capacity in onshore export gas pipelines. We can conclude by saying FSRU development option may be viable for certain situations where the availability is not a critical factor and short contingency of FSRU can be tolerated. India is poised for GDP growth rate of over 7.5 per cent in coming years, and has ambitious plans to increase the power generation and fertilisers production substantially, creating a huge gas demand in the coming 4 to 5 years. Our domestic gas production cannot cater to this huge demand making a suitable attractive case for FSRU development for LNG regasification to meet huge gas demand for these core Industries, in shortest time frame in comparison to onshore regasification development.
Safety Issues Due to space constraints in FSRU, it is important to design the layout with adequate attention to segregate the operating area and living area. Layout should comply with all regulatory requirements. Access for maintenance, escape routes, minimising effect of spillage, permitting ventilation, protection against flare radiation are some of the key considerations in finalising the layout. Other important risks to be considered are potential failure of regasification equipment causing large liquid or gas release. Risk to life depends on levels of habitation nearby, plant manning requirements, threat from LNG tankers berthing at regular intervals etc. All above safety issues need to be suitably addressed during the design phase of FSRU. Conclusion FSRU development has an advantage over onshore regasification development owing to its short project duration, early access to gas contracts, low capital expenditure, flexibility to move the FSRU to a different location and a reduced onshore footprint requirement. However it has its own challenges and risks such www.oswindia.com
Offshore World | 22 | August - September 2015
Anand Kumar Sr Principal Engineer – Process Technip India Limited Email: anakumar@technip.com
Scott Smith Operations Director Genesis Oil and Gas Consultants Ltd Email: Scott.smith@genesisoilandgas.com
Maruthi Ethakota DOC Process Head, General Manager Technip India Limited Email: methakota@technip.com
M K E Prasad Sr Vice President Technip India Limited Email: mkeprasad@technip.com
15th Edition
Chemical | Pharma & Biotech | Oil & Gas | Pumps, Valves Pipe & Fittings | Filtration & Separation
Who’s Who is an ‘Exhaustive Listing and Fact Book on Chemical Process Pharma & Biotech, Oil & Gas, Pumps Valves Pipe & Fittings, Filtration & Separation Don’t miss this unbeatable brand building opportunity. Advertise in the biggest & best of the India’s Process Industry & watch your Company grow. We look forward to your participation in our 15th issue. Thank you for your support. You would like to know that Who’s Who has progressed by leaps & bounds over the last 14th editions. We are now in the process of compiling the 15th edition. Who’s Who is an exhaustive listing & fact book on the process engineering companies in the Chemical, Pharma & Biotech, Pumps Valves Pipes & Fittings, Filtration & Separation . It also carries extensive information on the Oil & gas industries & Industrial Automation. The database covers more than 10,000 participants at our Chemtech events. Who’s Who is an important part of the literature accessed by purchase managers from this industry for their research before procurement. It is also made available to visitors to our stalls at international expositions who evince interest in Indian products. The whole compilation rendered on CD is a big hit with these visitors. The international audience can also access Who’s Who at the libraries of Indian Trade Chambers abroad. Important Segments 2. Pharma Process Equipement / Packaging 4. Plant and Machinery 5. Pumps, Valves, Pipes & Fittings 6. Filtration & Separation 7. Industrial and Process Automation 8. Water and waste management 9. Material Handling & Logistics 10. Engineering, Procurement & Construction 11. Oil & Gas
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DATA EXCELLENCE IN OIL & GAS INDUSTRY Though oil & gas industry is known as capital and high-risk intensive business because of the complexity, vastness and sheer scale of the industry, it is not surprising that data and related technologies play an integral role in its evolution. While field automation in the past was about acquiring data or information, the focus is now shifting towards making it actionable by providing the information in real time in the right place (remote or localised) and increasingly on a wide variety of devices. The article details on new and emerging technologies in collecting data and real time information to provide contextual information for Oil & Gas workforce to do their job more efficiently and effectively.
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he Oil and Gas Industry is amongst one of the few forerunners in collection and transmission of data from computing devices like sensors, control systems and storage and management of data as well has harnessing the power using big data and predictive analytics. This has traditionally helped oil and gas companies improve production and manage performance. With the recent fall in oil price, rapid regulatory change and unending search for natural resources this focus has to only get sharper if the industry wants to lower costs, improve operational efficiency and reduce capital expenditure. Back in early 2014, when Google first publicised plans to pursue the enterprise opportunity for Glass, it called out two companies already at the forefront of exploring its possibilities1. One of those was energy multinational Schlumberger, where a modified version of the device had already been piloted to deliver workflow management tools 2 and real-time intelligence 3 to field workers and real-time performance metrics4 to managers. It’s not merely Glass; almost every emergent technology today has an immediate and exigent, application in the energy sector – be it Industrial Internet (automated remote operations), autonomous vehicles (surveying difficult terrain), unmanned aerial vehicles (inspecting remote installations), cognitive computing (appraising exploration blocks) 5, robotics (pipeline leakage detection)6, Augmented Reality (visualising complex equipment)7, nano-technology (self-healing pipelines) or 3D printing (on demand parts replacement in remote locations) to harness data in volume and in detail. Given the complexity, vastness and sheer scale of the industry it is not surprising that data and related technologies play an integral role in its evolution. To start with, there is the challenge of building efficient operations in some of the remotest places on earth. Then comes the imperative of securing a supply chain transporting a hazardous, increasingly scarce commodity from these exacting environments to the pump on Main Street. Finally, the mandate to do all this without endangering health, safety or the environment 8. By any measure this is an audacious task. But today’s technological possibilities allow us to craft an equally audacious vision with which to accomplish it. Contextualising the Physical World with Digital Information Field automation in the past was about acquiring information (e.g. LWD, MWD) but the focus is now shifting towards making it actionable by providing the information in real time in the right place (remote or localised) and increasingly on a wide
www.oswindia.com
variety of devices. This shift to the concept of Digital Oil Field has markedly improved drilling efficiency and safety performance. Digital Oil Field helped accelerate the development of integrated asset and production models. In recent years sensor technology is getting smarter and can capture precise, realtime information about drilling length, penetration rate, pressure, temperature, rock characterisation and other geotechnical data. With thousands of such smart sensors and microprocessors installed in topside, subsea and down-hole equipment capture and synthesise massive volumes of data which once interpreted by operational teams helps them make real time decisions and prevent costly errors. These technologies save millions of dollars in operational costs. As data and software design become an organic part of the design of physical systems in the energy sector, it creates the foundation for the next layer of innovation. The logical next step should be to create a software platform that empowers an integrated rig-to-retail model of asset management. This unified data flow on secure high speed industrial class networks will form the backbone of the Industrial Internet. A singular priority towards achieving this goal will be to integrate the digital and physical worlds to provide contextual information for Oil & Gas workforce to do their job more efficiently and effectively. Streamlining Emergency Response using GIS and Remote Sensing Oil and gas pipelines have to withstand some of the most punishing natural conditions imaginable e.g in the Arctic or in ultra-Deepwater. Until now it was not possible to instantly detect pipeline damage, let alone rectify it expeditiously. Imagine, for instance, pipeline corrosion damaging a portion of a pipeline in a remote location in Alaska. Sensors embedded in the pipe immediately detect the resultant drop in pressure and automatically transmit the exact coordinates to the closest control center. The center then deploys a surveillance drone that hones in on the affected pipe section to survey and report extent of the actual damage. This input is instantaneously transmitted back to the control center where image recognition software compares them against input received during regular operations to determine the exact point and quantum of damage. This information is then transmitted to the intervention team in the ‘collaboration center’ as well as to a pipeline expert, who sees them on an iPad application, and recommends an
Offshore World | 24 | August - September 2015
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FEATURES Field automation in the past was about acquiring information (e.g. LWD, MWD) but the focus is now shifting towards making it actionable by providing the information in real time in the right place (remote or localised) and increasingly on a wide variety of devices.
appropriate intervention strategy to the concerned team. Automated valves can be activated to cut off supply to the affected part of the pipeline to stem the leak till a task force can be deployed. The surveillance drone continues to collect atmospheric hydrocarbon information and relaying it to the command center until level come to an acceptable level and the task force is then quickly deployed to the affected location to secure the area and repair the damage. Stretching the scenario further, nano-bots can be constantly monitoring the pipeline looking for corrosion damage and reporting pipeline health on a real time basis to the ‘collaboration center’ or even proactively repairing it without the need for costly downtime. Ensuring Equipment Uptime using Analytics, 3D Printing and Augmented Reality A single component failure in an offshore rig can potentially result in significant losses just from halted production. Imagine now an offshore oil and gas platform that has been in operation, and efficiently so, for an extended period of time. A number of sensors on equipment within the oil and gas platform are constantly transmitting operational data to big data analytics platform, which is also analysing data from many other oil and gas platforms. At a certain point in time, the software forecasts a high probability of compressor breakdown on the oil & gas platform if a particular metal spare part is not substituted. The required component is not readily available onboard the platform but is quickly printed off a 3D printer at the installation’s mechanical workshop. A technician then proceeds to replace the component using an Augmented Reality interface built into glasses, which gives him hands-off access to the maintenance procedure workflow, the checks and balances required at each stage and all the relevant digital information required to complete the task. Even as maintenance process is underway, sensor values are being continuously transmitted to experts at an onshore location who are remotely supervising and guiding the technician.
In Conclusion A confluence of new and emerging technologies is creating a transformative opportunity for the energy industry. The collective impact will be felt across every aspect of the business – from enhancing asset performance to increasing operational efficiencies to enabling real-time decisions. But to maximise the value realised from these technologies, energy companies have to ensure standardisation of data and real-time flow of information across all upstream and downstream assets and operations and across all key business processes and establish the industrial internet for the industry. Though the sector is awash in data, most of it still remains restricted to process silos. In an increasingly connected world, it will be critical to streamline the flow of data across the enterprise to empower more efficient and agile decision making. The strategic focus should be on gradually evolving into a unified platform model from which to monitor and manage all assets, key operations and performance metrics. Historically speaking, continuously harnessing power from data and produce value needs to be a CEO’s agenda and requires sustained focus of leadership. Contact: Rajarshi.Basu@infosys.com References: 1) https://plus.google.com/+GoogleGlass/posts/2Vq4oTd1UkE 2) http://www.fastcompany.com/3031171/the-surprising-reason-oil-companies-love-google-glass 3) http://www.fool.com/investing/general/2014/04/13/google-glass-is-appearing-in-some-placesyou-would.aspx 4) http://www.fastcompany.com/3031171/the-surprising-reason-oil-companies-love-google-glass 5) http://www.ibmbigdatahub.com/blog/5-ways-iot-technologies-are-enabling-oil-and-gas-industry 6) http://www.nanowerk.com/news2/robotics/newsid=36124.php 7) http://blog.augmentedev.com/augmented-reality-in-the-energy-sector/ 8) http://www.dynamiccio.com/2014/08/internet-of-things-building-a-digital-oil-gas-business.php
Lean Operations through an Intelligent Central Terminal Control Hub Imagine 100 fuel distribution terminals spread across continental USA, managed from one Central Control Hub and supplemented by a lean operations team present at each fuel terminal. Using a visualisation platform, personnel at the control hub will be able to monitor and control all entry/exit points, fuel loadings, tank levels and flow rates to optimise output and productivity at each terminal. The hub will also be able to proactively monitor and control all engineering equipment and sensors on tanks, pumps, valves and loading arms. By monitoring stocks at downstream retail sites, the hub will automate and optimise deliveries to those with low stocks. www.oswindia.com
Offshore World | 26 | August - September 2015
Vasudha Prabhala Principal Infosys
Sandeep Roy Senior Principal Infosys
Safety valves for Oil & Gas industry LESER India launches Type 526 IC and 459 IC UV Stamp
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Read more about the new safety valve Type 526 IC & 459 IC on the LESER India website www.leser.co.in Head office in Mumbai
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Robust ERP in Upstream
OIL & GAS INDUSTRY With the challenges of ever-fluctuating global demand for energy, growing calls for alternative energy sources and rising production and exploration costs, today’s oil and gas companies have to rebuild their older infrastructure and incorporate new technologies to improve production to remain competitive. The article urges of a robust ERP (Enterprise Resource Planning) for upstream oil & gas industry in managing CAPEX and OPEX spend that will help to standardise complex supply chain demands; in accessing the right financial information to improve timely decision making, helping to add international operating environment and project accounting into the mix; to manage project portfolios such as schedules, costs and resources across all projects, ensuring projects are delivered within budget and on time; and analysis project risks in advance, using cost and schedule analysis capabilities.
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il and gas companies operate in dynamic and complex environments where they face constant challenges, especially in terms of fluctuating supply and demand. Within the oil and gas value chain, upstream oil and gas companies are operating in challenging times. They are trying to maintain optimal production levels while increasing recoverable reserves and reducing unplanned well downtime. They are implementing processes to improve their use of technology to proactively detect anomalies, manage remote well operations, organise logistics and improve enhanced recovery from reservoirs they acquire and develop. Additionally, market price volatility demands accurate and timely visibility into portfolio production yield. Managing CAPEX and OPEX spend is critical for making decisions about portfolio risk, investment, divestment and development. All of these elements impact operations and can easily determine the success of a field, not to mention success for a company. Volatility in oil prices and new oil field discoveries are some of the demand drivers in the industry. Quicker delivery times, greater use of sub-contractors and, above all, cost competitiveness are some of the challenges faced by suppliers to the industry. Quick adaptation to change, entire project lifecycle support have become the ‘must have requirements’ of suppliers today. While every company is different, some of the most common oil and gas ERP requirements include, but are not limited to: • Cost control and tracking • Equipment management • Supply chain and procurement • Project management • Document management • Financial accounting for oil and gas (including JV accounting) • Production planning and reporting • Human resources and talent management • Multilingual, multi-currency for global customers and partners • Standard financial management, cash management, and accounts receivable management. • Investment tracking
that wish to remain competitive have to rebuild their older infrastructure and incorporate new technologies to improve production. By using robust ERP solutions, the companies are able to see current projects to completion and still remain competitive. Epicor understands the pain points and challenges of oil and gas ERP implementations and the definitive need for a strong and robust ERP solution for operators. When processes are standardised, data is consistent, as opposed to having many different systems of record across the company. In an industry with so many units dispersed geographically, an enormous number of wells, and complex supply chain demands standardisation plays an important role, and ERP provides it. We clearly understand that the ultimate payoff from standardisation is not just cost savings from achieving economies of scale; it is also the competitive advantage and flexibility that comes by allowing rapid movement into new markets and workload adjustments among offices.
With the ever-fluctuating global demand for energy, growing calls for alternative energy sources and rising production and exploration costs, oil and gas companies www.oswindia.com
Offshore World | 28 | August - September 2015
FEATURES Managing CAPEX and OPEX spend is critical for making decisions about portfolio risk, investment, divestment and development. All of these elements impact operations and can easily determine the success of a field, not to mention success for a company.
With regard to assets, a lack of current and accurate information may cause some companies to delay the replacement of under-performing assets, or upgrade entirely functional assets too soon. A recent global survey revealed that many financial decision makers are dealing with a ‘data deficit’ that threatens decision making and fiscal management and financial operations. The survey found that over 46 per cent of financial executives rely on ‘gut-feel’ and instinct to make business decisions in lieu of fast access to accurate internal data. This inability to access the right financial information is having a direct impact on business performance. Of those polled, 45 per cent say poor data hampers timely decision making, and inaccurate information is the main cause of organisational mistakes. In contrast, a robust ERP system will provide managers with pertinent timely information about external events and internal resources, thus improving the quality of managers’ decisions. The oil and gas operating environment has some unique facets though, and brings in multiple stakeholders such as JV partners, stakeholders from the country where the exploration and production activities are taking place, investors and shareholders amongst others. The Production Sharing Contract (PSC) leads to complexities within the accounting environment. The contract with the government means that the operator is able to claim its costs of developing the asset. This obviously means close scrutiny of the JV accounts and processes by the government. The issue is that not all costs are claimable and that costs need to be transparent and there must be readily accessible audit trails available. The financial system will therefore need to feature a reliable method of disclosing the claimable and non-claimable costs and reporting in the manner prescribed by the government. The consequence for oil and gas businesses is that the accounting and operating environment is complex. A solution that addresses these challenges in a simple and effective way means less work around, spreadsheet management, paper trails and less risk. The joint venture environment leads to complexities in consolidation, and inter venture accounting in particular. A well thought out ERP system implementation is needed especially when there is a need to add an international operating environment and project accounting into the mix.
companies looking to remain competitive in the coming years will have no option but to integrate robust ERP solutions with their operations. Another area where a robust ERP solution can be effective is risk analysis. Organisations can use their ERP system to understand and plan for project risks in advance, using cost and schedule analysis capabilities. Companies can get comprehensive information on the success levels of a project and quickly come up with effective risk response and contingency plans. For example, ERP can support project governance and financial planning by analysing the cost and schedule impacts of mitigation scenarios, model risks and calculate most-likely completion times. Going forward, we realise that even though some of the ERP value chain best practices have trickled through to the oil and gas industry, there is always scope for further improvement. Better project portfolio planning, strong risk mitigation, improved demand planning and optimised inventory management will help oil and gas companies maintain their competitive edge and earn far better return on investment on their oil exploration and production. Epicor believes that compliance to best practices in oil and gas ERP design blue print, coupled with the implementation of a strong software solution, is the way forward for oil and gas companies to reduce costs and mitigate risks and to focus on production and exploration in the most optimised way. It will be really interesting to see how upstream oil and gas companies can effectively manage the deployment of best-in class ERP solution, coupled with the adoption of best practices. Reference • www.epicor.com/Press-Room/News-Releases/New-Research-Reveals-Data-DeficitMaking-the-Job-of-CFO-More-Challenging-and-Profitability-More-Elusive.aspx
Robust ERP solutions for oil and gas companies need to provide a powerful yet easy way to manage project portfolios. The solution should enable companies to manage schedules, costs and resources across all projects, ensuring projects are delivered within budget and on time. Moreover, they should provide accurate project execution and appropriate visibility at all levels, enhancing collaboration and management of tasks across departments. By implementing modern, next-generation ERP solutions, oil and gas companies can ensure they choose their projects wisely. Apart from this, ERP solutions can also help companies mitigate risks associated with various projects, improve employee productivity and reduce operational costs. Oil and gas www.oswindia.com
Offshore World | 30 | August - September 2015
Vinodkumar Raghothamarao Oil & Gas Expert Epicor Software – Middle East Email: Vinod.Raghothamarao@epicor.com
THE ABU DHABI INTERNATIONAL PETROLEUM EXHIBITION & CONFERENCE REGISTRATION NOW OPEN www.adipec.com/visreg
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Project Management Challenges in Large Oil & Gas EPC Projects Mega scale EPC projects in oil & gas are becoming international in nature, with many geographically diverse teams which usually comprise of client, suppliers, sub-contractors and third party service providers. Such teams are not only located in geographically different regions of the world, but they also bring differing cultural traits, work ethics and work methods to the table. Such EPC projects are also diversified with regards to domain knowledge, lifecycle periods and stakeholder integration. The purpose of this article is to focus on challenges faced by the project management teams on these projects and elucidates some effective solutions in this direction.
I
n large scale EPC projects in the oil & gas industry, three main challenge areas have been identified:
• Effective management of geographically and culturally diverse teams • Improving the cultural intelligence to create an effective communication environment. • Bridging the information gap In the era of globalisation and technology evolution, the new economy has created a more competitive environment for companies, where businesses are required to deliver superior products and quality services to customers at lower margins. Project organisations need to integrate a diverse mix of individuals into a high performing team that is agile, flexible and great at team-work. As new technologies have eliminated the barriers of communication, collaboration across borders and time zones enables project organisations to better utilise human resources with access to distinct skillsets and functional expertise. This has created the concept of global virtual project teams.
Global virtual teams create unique challenges, and the project management team should recognise these challenges early by providing arenas to make the collaboration seamless and effective. The creation of a project specific Learning and Development Centre will help in integrating the project team effectively. Effective Management of Geographically and Culturally Dispersed Teams Probably the biggest challenge faced by project management team is the cultural and language diversity among the team members. This can create barriers, which then cause misinterpretation of project requirements, poor expectation management and lack of trust. Project leaders also encounter issues with maintaining the strength of communication. It is obvious that virtual teams do not have regular face-to-face interactions, and are dependent on technology for communication or decisions. Frequent delays in response and feedback may lead to communication breakdowns. Failure to establish working relationships and common ground may lead to team conflicts, incomplete tasks, lack of interest, confusion, and anxiety, affecting the team morale and performance. Another problem for project teams could be misaligned communication and documentation tools. The resulting unstructured exchange of project information makes it more difficult for leaders to keep all stakeholders on the same page in terms of project progress, issues and processes. Improving Cultural Intelligence to Create an Effec tive Communication Environment Global virtual teams are a collation of personnel from different cultures. A culture usually defines behaviour, values, language, habits and a general approach to work and life. Cultural differences add value and diversity to teams, but can cause problems as well. The two main cultural issues that significantly undermine the effectiveness of global virtual teams are the false perception of similarity and differing ideas of teamwork. Being culturally aware in a virtual environment is crucial, and it is important to promote cultural training for all team members. Sensitising the project team to various cultures builds cultural intelligence and thereby increases the efficacy of the virtual team.
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FEATURES team building helps to bridge the cross cultural communication barriers, as team members bring different ideas, goals, values, beliefs and needs to their teams. These differences are a primary strength of global teams. 3. Create a physical space for the team - The fact remains that geographically dispersed teams do not have a mutual space, so providing a virtual space or website where team members can post things about themselves can assist in increased communication, trust, and mutual understanding. Effective use of social networking sites can also be a good way of providing a platform to share ideas and thoughts
1. Learn the definition and different types of culture – When starting a global project in a new country, or when new project team members have a cultural origin that you never experienced before, the cultural dimensions can be a first source of reference to understand their general mind-set and the cultural patterns likely to be found in their culture. The cultural differences exist across countries but are also influenced by a diversity of age, gender, regions, and many other types of social groups. 2. Understanding the cultural differences – Use cultural dimensions to know what differences to expect between people from different cultures. Employ a team building exercise to identify how your team and colleagues view these differences. 3. Respect the cultural differences – Keep the differences in mind when confronted with opposite views of the world. You must accept them and show respect for the different standpoints. A manager has to go through different sources of information on the country, not only to show the team members that you care for their culture, but to really understand how they live, think, and what the main sources of cultural and economic richness are. 4. Enjoy the richness of a multi-cultural team – Remember that you can build on the differences to identify and mitigate risks, to find alternative approaches and achieve the project objectives in better ways, and to increase the level of innovation and quality of your project deliverables. 5. It is essential for leaders to distinguish between problems that result from cultural differences and problems that are performance based. Geographically dispersed teams will intrinsically lack co-ordination structure because they have not had the opportunity to interact in a face-to-face environment. Team members may be wary of overarching goals because of this lack of structure. Leaders must facilitate the development of a structure in the group, and even intervene by over-structuring these teams to compensate. This can be achieved by scheduling periodic e-meetings (using video conferencing, for example) 1. Have clear lines of authority in the team – In trying to obtain clarity and maintain structure, having good leadership can often make the difference between success and failure. Choose an effective team leader and make sure that the lines of authority are clearly communicated to each team member. 2. Recognise that geographically dispersed teams do not have ways to communicate as effectively and team members do not have natural ways of getting to know each other. To overcome this problem, arrange a certain number of face-to-face meetings, such as off-site training sessions. An efficient www.oswindia.com
4. When conducting meetings, maintain an overall focus on team initiatives, team goals, team challenges, and any other common team issues. Minimise dialogue that focuses on individual personal issues that might jeopardise alignment. Discussion of individual goals, issues, and development can be conducted on a one-on-one basis, allowing team time to be shared, integrated time. 5. Recognise that geographically dispersed teams need more time than their face-to-face counterparts. These teams need more time to coordinate, discuss options, and reach a consensus, so when setting deadlines, make sure to build in that extra time. Consider adding a buffer period for people to post things to their shared virtual space, or extra time to plan discussions with other team members. Cultures react different to conflicts and thus the manager of a multi-cultural team requires an array of conflict management skills. Conflicts on projects often arise when project pressures increase, when personalities clash, or when personal goals collide. This is intensified in a multi-cultural team by the different value systems on the team. Therefore, the ability to handle conflict constructively is vital. Some of the skills that project manager should have are summarised below: 1. R emain neutral, and use an impartial, third party approach 2. Verify your understanding of each of the viewpoints 3. Work with the team members to establish options for resolution of the conflict 4. Agree on the course of action. This method requires the team manager to step outside his/her value system (i.e. cultural beliefs), in order to remain neutral. It is intended to build the skills necessary to adopt a collaborative or synergistic style of conflict management. The sequence of development of the competencies is also important. Self-awareness is a precursor to other-awareness and sensitivity, and therefore must be developed first. Bridging the Information Gap More than any other project environment, a global team’s access to information can be the most challenging. In many cases, global project team members and stakeholders do not have the luxury of walking over to their colleague’s desk to ask questions. Consequently, a formal strategy documenting project details and providing the means to readily access information 24/7 is critical in effectively moving a project on a successful path. All projects have files, documents and assets that pertain to the project and tasks. Project assets can include project scope documents, risk lists, issues lists, files, emails, and deliverables, to name a few. The challenge with even the best file storage systems is that team members still complain that they cannot find critical documents. It is simply too easy to forget where those assets and files are, unless they are frequently used.
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FEATURES
The other problem with this is that usually third parties, vendors, clients or those the project team needs to collaborate with outside one’s four walls (and network) cannot access these files. Many organisations do not permit third parties to connect to their network for security reasons. This means that the project manager must resort to emailing those assets to these outside team members, which can result in a version control problem. A server shared drive is the best solution to these issues, as it enables the team to post all project assets in the centralised repository. A drive that links documents repositories with the project they pertain to, makes finding the specific assets easy. The value of this is that the entire project history is captured in the documents repository.
key. The flexibility of being able to determine who has access to which folder or folders will also make the software more powerful and usable by the entire team. Conclusion The increasing use of global virtual teams demands special attention to differences in culture, communication barriers, and inherent trust existing among the team members. While these teams are not fundamentally different from traditional teams, additional focus and effort in key areas is necessary to ensure team success. Project management teams should evaluate the use of a project specific Learning and Development Centre (LDC) that can provide a unified platform to make global virtual teams effective. An illustration of a recommended LDC is provided below.
Other distinguishing features worth looking for include: 1. Document check-in/out - Document check-out will permit one team member to edit a file at a time. If others attempt to edit the file, the solution will inform them that the file is checked out, by whom, and the exact date and time of modification. Check-in makes the file editable again. 2. Document version control - File version control refers to tracking all iterations of a file or document. A common example is a project scope document that goes through several changes over the course of the project lifecycle. A decent solution will keep track of all of the versions of the file and post who made the changes, and the exact date and time of the change. 3. Document routing and approval processes - Many project deliverables are documents that require approval. A great feature is a solution that automatically routes the document for approval. So, when one team member has finished approving the deliverable, a notification is sent to the next person in the approval chain. 4. Ability to set permissions at any level in the folder structure - An ability to set up a folder structure to mirror the business processes and methodologies is Offshore World | 35 | August - September 2015
Ajay Gharpure Senior Project Manager Aker Solutions Email: ajay.gharpure@akersolutions.com
Vinay Tamhankar Senior Project Engineer Aker Solutions Email: Vinay.Tamhankar@akersolutions.com www.oswindia.com
CASE STUDY
MOSES MINIMISES REDUNDANT STEEL IN ORCA OFFSHORE’S ANALYSIS OF SELF-INSTALLING PLATFORM Transport and Installation Specialist Demonstrates Validity of Dynamic Load and Structural Strength Analysis Using Bentley Software Massive but Movable hen Centrica acquired the F3-FA field in the Dutch sector of the North Sea, it planned to develop the field for four years of production and then relocate to another field. A EUR 200 million reusable platform was crucial to the project’s success. ORCA Offshore joined a team of design, fabrication, and installation contractors to provide the naval architectural analysis for transport and installation of the nearly 9,000-ton, self-installing platform. ORCA Offshore provided motion and stability analysis, multibody dynamic analysis, structural spectral analysis, and scale model testing. Bentley’s MOSES offshore platform design and installation software simulated and analysed the transportation and installation of the unique production platform.
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Tapping Marginal Fields The F3-FA field was discovered in 1971, about two miles below the surface of the North Sea. Centrica is the third owner and acquired the field along with its acquisition of Venture Production in 2009. With only about four to five years of production life, it would be too costly to develop the F3-FA field by installing a conventional fixed platform. Instead, Centrica planned to deploy a self-installing platform that is constructed in harbor, transported by barge, and installed by putting down legs on the seabed and elevating the platform. When the field is exhausted, the supports are taken up, and the platform is transported by barge to the next
location. The cost savings across three or four marginal fields would be significant. The F3-FA platform footprint measures 63-by-45 meters, and the structure reaches a height of 133 meters above the sea floor. Each of four 440-ton suction piles is 13 meters high and 15 meters in diameter. The design weighed in at about 8,800 tons. During transport, the platform’s piles would be raised and attached to the barge with temporary sea-fastening beams. Because of the size of the piles and the proximity to the wave zone, huge hydrodynamic loads would act on the piles. For the design to be viable, the team had to know the size of these loads at an early stage. Unconventional Analyses It quickly became clear that the F3-FA platform design posed a challenge in strength management, in part because the four legs were without braces and subject to the direct force of the waves. The team used finite element analysis to model the entire platform including about 200 load cases. These included the static and dynamic loads, which had to be balanced to optimise steel quantities. Bentley MOSES offshore analysis and design software was used for the static calculation, in combination with an ANSYS model. ORCA Offshore used MOSES to provide the multi-body dynamic analysis for the extreme conditions during transport. The challenge was to convince the project stakeholders that this unconventional method would give reliable results. The loads
Project Summary Organisation: ORCA Offshore Solution: Offshore Engineering Location: Dutch sector of the North Sea Project Objective: • Safely deploy the F3-FA self-installing offshore platform on time and on budget. • Utilise the best available analytical tools to minimise redundant steel. • Minimise the size of the sea fastening to allow for safe handling. Products used: MOSES Optioneering enabled by MOSES reduced material costs. www.oswindia.com
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CASE STUDY Fast Facts • Single-body marine transport analysis included ballast condition, intact and damaged stability, bollard pull analysis, motion analysis, and barge longitudinal loading • Multi-body marine transport analysis resolved leg and deck support loads. • Structural transport and fatigue analysis looked at deck, joint, and leg-member utilization; and grillage and sea fastening.
ROI • Complex analysis and model tests reduced both steel quantities and project risk. • The self-installing platform design was easy to install, which saved project-delivery time. Integrated simulation capabilities in MOSES ensured safe installation.
during transport and upon lowering the suction piles and legs had to be accurate to size the steel to hold them. MOSES determined those loads using a five-body model, with each body having its own hydrodynamic database to derive the motions and loads acting between bodies. A model test verified the MOSES results to the stakeholders’ satisfaction. MOSES was also used to confirm the structural strength of the platform during transport and installation. The spectral structural analysis allowed ORCA Offshore to derive the structural loading without being unnecessarily conservative. Conventional methods would have determined the maximum load acting on each pile and combined that with maximum motion loads acting on the whole structure. The MOSES approach considered the natural relationship between loads to reduce the quantity of steel required for the platform itself and for the temporary sea fastenings. Model Tests Prove Valid Compared to conventional analysis, ORCA Offshore’s analyses provided a more realistic representation of the loads and stresses during transport. Model tests carried out in a towing tank validated the transport plan for the F3-FA platform. After an initial attempt scuttled by severe weather, the successful transport journey to the F3-FA field in the North Sea took about three days. The platform withstood extreme wave loading, which proved the reliability of results produced by the project team’s unconventional methods of analysis. Installation work in the 40-meter-deep water was concluded within 52 hours. The leg sea-fastening system required no steel cutting or welding. Suction piles were driven into the seabed using submerged water pumps, the entire topsides attached to the four legs with 16 two-ton super-bolts, and the 4,000-ton deck lift system used strand jacks to maximize workability. The whole design concept proved to be easy to install.
MOSES software can perform real-integrated analysis for any type of marine structure in a dynamic sea environment, which contributes to the realisation of innovative offshore structures. – Herm Bussemaker, Managing Director, ORCA Offshore F3-FA platform. Optioneering support enabled design exploration to eliminate redundant steel work in the topside and legs, resulting in reduced material costs. Validating the self-installing platform concept and design had both environmental and economic benefits. All remnants of the self-installing platform are removed from the seabed upon relocation. The ability to reuse a self-installing platform three or four times over the course of its lifetime not only reduces fi production costs but also taps smaller reservoirs in marginal fields that would otherwise be too costly to operate. This ensures that energy resources are fully exploited.
ROI across Fields With the integrated capabilities of MOSES, ORCA Offshore was able to perform the numerous analyses required to ensure fast, simple, and safe installation of the Offshore World | 37 | August - September 2015
Anne-Marie Walters Industry Marketing Director, Process and Resources Bentley Systems Inc www.oswindia.com
FEATURES
When Intelligent P&IDs are not Enough The Importance of Delivering Information at the Point of Need While the P&ID has been the ‘go-to’ document for the representation of the process and functionality of a facility, it is unfortunate that much of the rich data that P&IDs represent in the real world is seldom even available at the time of their creation. This article discusses the various methods available to link rich asset data to P&IDs and how that data can be interlinked and made available to all stakeholders at their various points of need.
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he promise of legible and intelligent P&IDs has always been the touchstone of plant documentation. The sad thing is that you could ask one hundred plant owners what defines an intelligent P&ID and if you were really lucky you would get fifty answers. But at their base level all would agree that each entity on the P&ID would represent a physical entity, and there should be some way of pulling up information that links that symbol to the real world.
Silos of Expediency Obviously personnel safety and emergency procedures are of paramount importance in a facility, that is a given. But the fact is that the need of safety and emergency information is not always planned, but is almost always urgent. This means that gathering, collating and indexing of this information in advance, and in a readily accessible form, would be ideal. But typically, that is not the case.
Having these goals for intelligence is a good start, especially if done from the start. This would mean that when information is created it would be retained and that retention would then allow those downstream to benefit from the information captured. But it is a sad truth that much of this information is not always made available at the time these P&IDs are being created. Like it or not, most of the information represented by a P&ID component is created long after the P&ID is completed.
If you visit any site you will find those one or two people that everyone knows who to turn to for information. It could be Jan for the information on the new compressor expansion or Bernie in maintenance, who may have been there for 30 years, and does not even have to look at a drawing to locate that leaky valve you were searching for.
Reality Check What we in the software world often forget is that most information gathering is done to help someone make a decision, and hopefully the best possible decision at that moment. That being the case it is important that the best info is made available at the point of need. We all have to take a deep breath and be realistic about how much information we need to collect and for what purpose this information is to be used. So when we look at owners’ drivers for information gathering and retrieval we can see that they generally fall into the following seven categories: • Safety • Emergency • Operations • Maintenance • Expansion/Decommissioning and Demolition • Asset Inventorying • Asset Transference Where safety is the most critical and the last, asset transference, while not critical for safety or operations, may none the less be extremely important when needed.
Coordination is the Key Challenge
The bottom line is that, although this may often be a convenient and expedient form of gathering information, there is a danger in relying on employees’ great memories or their siloed knowledge for critical information. Likewise, we cannot risk point-of-need retrieval on anyone’s good health, an accident, poor adherence to standards or people leaving our employ – we need a better plan. “I Don’t Have a Problem” – Really? So are we even talking about a real problem? And if so, how bad is it? One owner operator, on acquiring a floating production, storage and offloading (FPSO) unit requested all of the information on the FPSO from the past owner, and its engineering support company. In answer to this request the new owner received 11TB (terabytes) of hard drives full of information (this is equivalent to 4.8 trillion typewritten pieces of information or approximately 36 million P&IDs!), and much of this information was mostly unstructured. In one instance, the owner enquired as to how many P&IDs covered the asset and were advised by the engineering support company that there were 150. During the capture exercise, it found that there were over 7,000 P&IDs distributed around the drives – clearly, there were many duplicates and at many stages of revision. After a full audit the new owner was finally able to determine that there were actually just over 300 master P&IDs for the asset. Double what was expected and 4 per cent of what they originally received.
“As many units are under construction and commissioning at one time with many people involved, coordination is the key challenge. The flow of information and actions is missing and delays are caused due to one-toone contact only.”
Collating & checking Pre-Startup Safety Review (PSSR) information time consuming
*Source: TechValidate. TVID: D4A-7CF-BF5
*Source: TechValidate. TVID: CE3-1ED-2E5
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20 experts surveyed spend 17 per cent of their time on average locating, collating, and checking information during PSSR.
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FEATURES You are not alone The truth is that there are 1000’s of well operated and functioning facilities that face the same challenges and, in an emergency situation, could anyone be absolutely certain that they have the latest information that they require at their point of need? Out of the 7000 P&IDs we mentioned previously would anyone be able to find the right one at the right revision that would show which manual valve(s) needed to be shut down in an emergency?
taking about developing a graphical information foundation upon which access to all of your site data will be based, so it may be worth it.
The bottom line is that, in an emergency, the information we deliver to the field ought to be better than ‘run!’
Here readers may be justified in thinking “we have now moved from one silo, and created a better (shinier) one, where the creators and drafters of those P&IDs are now the ‘go-to’ persons for information.” Luckily that is not the case, as CADWorx P&ID Professional also allows P&ID projects, with all of their associated data, and linked documentation, to be published and accessed by any stakeholder through a browser interface.
Dealing with the Realities of Information Creation At this point there is little point in not dealing with the reality of plant owners’ situations. The truth is that owners are in possession of a vast quantity of existing electronic design information, from multiple engineering companies, created with a variety of tools. These design systems are so varied and could include: Intergraph Smart 3D, Intergraph PDS, AVEVA PDMS, Intergraph CADWorx, Bentley AutoPLANT or AutoCAD Plant 3D or P&ID – each with their own way of representing the ‘truth’. That means that whatever system is selected to gather and disseminate this information should have the ability to use as much of this information as already exists. Additionally, users should be able to navigate between the tagged assets inside the system, and the streamed 3D model representation of the plant, regardless of the format the information was originally created. Fake it till you make it Software vendors often speak about intelligent systems and information gathering and the downstream benefits that can come from having that information available to all stakeholders. On a positive note the truth is that those benefits are not only real, but can be quantified in hard cash. Then what is not to like? Well, for a plant owner, whose assets can range in age from one week to sometimes one hundred years, it would make the task of documenting and collating existing plant information daunting. This should be no surprise as information could be held on anything from scanned drawings to fully intelligent 3D plant models. So is it possible to access this collateral and thereby leverage the investments already made in the creation of existing information? Well the answer is ‘yes’ to providing access, as even the oldest drawings can be scanned and made available electronically. The real challenge is not being able to view drawings, but in accessing the underlying information these drawings, documents, and files represent and the intelligent linking and grouping of common information.
Poor quality of information results in significant effort
68% of surveyed experts spend 10-30% or more of project hours dealing with wrong or missing information. *Source: TechValidate. TVID: 967-A1F-F79
Biting the Bullet One approach on the road to recovery is to redraw P&IDs in a standard, legible and intelligent format. Does it take time? Yes, it does, but here is the thing, we are
In this case a solution like CADWorx P&ID Professional would help greatly as it can not only quickly recreate these documents, and make them intelligent but it can also allow any related data or documentation to be linked to any intelligent P&ID component.
But if you do not want to redraw your P&IDs CADWorx P&ID Professional also allows the mapping of components in non-intelligent P&ID to and intelligent database, and from there the drawings and linked data can also be published and shared. Aims of Existing and Ongoing Asset Capture So what if the desire is to automatically capture and aggregate information that is already out there, without redrawing anything? That is also possible but for any system to be successful it would have to as painless, accurate, and single touch in its execution as possible, and should address these key challenges: • The asset identification retrieval system would have to be simple to use. • The cataloging of existing data should be as painless and automated as possible. • Tools and information should be widely available and secure. • Searching and acquiring data should be as easy and intuitive. • Information should be viewable on various devices to give true point of need access. • The acquisition and cataloging of ongoing data should be automated. This is where SmartPlant Fusion can help, as it does not focus on the creation of information, but on the automated capturing, extraction and aggregation of existing information from a variety of assets and available collateral. This information may be stored as P&ID and 2D drawings, datasheets, 3D models, laser scans, operation manuals, etc and can be in a variety of document, drawing, and data formats, but can be linked and accessed via a common tool. The above capabilities enable existing datasets, which share common tag names, to be quickly and automatically associated with one another. But what makes sure that future information does not sink into a black hole is that SmartPlant Fusion continually does this work on an ongoing basis. This means that personnel can quickly access, not only pre-existing information, but also information that is constantly being created as part of any facility’s ongoing process of development and reinvention.
Complete & accurate information essential to improve mechanical completion processes 85 per cent of surveyed experts believe that complete & accurate information will improve efficiency of their mechanical completion and/or commissioning process most. *Source: TechValidate. TVID: B0F-8B6-3E6
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FEATURES Let’s Get Physical One aspect of all of this that is seldom mentioned is the physical as-built documenting of an asset and the need for accurate information for time sensitive site updates, maintenance, repairs and operations. Owners are increasingly electing to scan portions of their facilities, and intelligently tag scanned assets, such as pumps, valves, vessels etc. What is interesting is that, unlike in the past, these point clouds are not just a sea of either yellow, red, orange or green dots that seem formless. These captures now carry color and shade information about the asset being scanned, and a free tool, Leica TrueView, makes viewing this information easy to do. An advantage of documenting the physical site using scanned point cloud data is that after tagging assets in the model, these can also be linked into the dataset by SmartPlant Fusion for ongoing linking and information retrieval. Ongoing Maintenance, Repair and Operations Point cloud models can also be leveraged by Intergraph CADWorx fieldPipe and CADWorx Plant Professional and by picking surface points on the scanned model owners are able to create intelligent models based on the latest as-built information for the production of fabrication or analysis deliverables. If only a few lines are needed to be as built, and scanning seems like overkill, teams no longer have to rely on the ‘accuracy’ of plumb bobs, tape measures and unnecessary scaffolding to carry out as-built studies or verification of an installation. Now teams can go on site and still leverage the power and accuracy of lasers. By using Intergraph CADWorx fieldPipe and Plant Professional, in conjunction with Leica Total Station, by picking a few points on a line, users create intelligent as-built models, and fabrication deliverables directly in the field. Conclusion The maintenance of up-to-date, and therefore viable, site information has always been and challenge, with the elephant in the room being the acquisition of existing facility data. Tools like Intergraph CADWorx and SmartPlant Fusion are now available that make this task, not only more palatable, but now realistic. In the 21st century we now have the chance to give all stakeholders to access the latest information at their individual points of need, so that they can make informed accurate decisions based on the best possible data. *These quotes present data that TechValidate has sourced via direct research with verified customers and users of Intergraph Information Management/Owner Operator Solutions. TechValidate stands behind the authenticity of all published data (http://www.techvalidate. com/product-research/intergraph-information-management-owner-operator-solutions). • 268 Customers Surveyed • 2,191 Data Points Collected • 69 Published TechFacts • 16 Published Charts • 9 Published Case Studies
Vornel Walker Vice President - Product Marketing Intergraph CADWorx & Analysis Solutions www.linkedin.com/in/vornelwalker www.oswindia.com
Dear Readers, Offshore World (OSW), a bimonthly publication of Jasubhai Media & CHEMTECH Foundation, disseminates into the entire hydrocarbon industry from upstream to midstream to downstream. The endeavour of OSW is to become a vehicle in making “Hydrocarbon Vision 2025” a reality in terms of technologies, markets and new directions, and to stand as a medium of reflection of the achievements and aspirations of Indian hydrocarbon industry. OSW, the niche bi-monthly publication, has been extensively covered technological advances, reviews & forecasts, new products, processes & solutions, upcoming projects, market trends, R&D, events, products review, book review, industry surveys, environment management, news & views, interviews, awards, outstanding performance by individuals & organisations, case studies and practice oriented and well researched articles and features by industry experts for more than a decade. You can contribute in the magazine with technical articles, case studies, and product write-ups. The length of the article should not exceed 1500 words with maximum three illustrations, images, graphs, charts, etc. All the images should be high resolution (300 DPI) and attached separately in JPEG or JPG format. Have a look at Editorial calnder of OSW - www.oswindia.com To know more about Chemtech Foundation, Jasubhai Media and other publication and events, please our website – w w w.chemtech-online.com Thank you, Regards, Mittravinda Ranjan Editor Jasubhai Media Pvt Ltd Tel: +91 22 4037 3636 ( Dir: 40373615) E-mail: mittra_ranjan@jasubhai.com
Offshore World | 40 | August - September 2015
FEATURES
MOST ENERGY COMMODITIES ON SOUTHBOUND JOURNEY ENERGY COLUMN (PRICE REVIEW): JULY - AUGUST 2015 Overall, futures prices of most energy commodities moved down in the two-month period of July and August 2015. NYMEX gasoline futures dipped the most by 21.5 per cent on increased supplies in US amidst weak demand sentiments. On the other hand, ICE EUA (European Union Allowances) futures moved up by 8.2 per cent on weak supply.
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ata release showing unexpected rise in weekly US oil inventory levels led NYMEX (CME) crude oil (light sweet) futures start the month of July at USD 56.96 per barrel, down by 4.22 per cent from previous month’s close. With oil prices moving down almost through the next two months (July-August), NYMEX crude oil futures registered its eventual two-month-high of USD 58.98 per barrel on month-opening day itself. 2015’s first increase in the number of active oil-drilling rigs in US and lingering Greek turmoil kept oil prices on downtrend. Further, progress in talks over potential Iranian nuclear deal raised expectations of flooding of millions of barrels of Iranian oil to existing global oil glut, which aided the decline in oil prices. Prospects of lower energy demand from China especially after a massive sell-off in Chinese equity markets, highlighting a fragile Chinese economy - added to bearish sentiments in oil prices. Decline in oil prices were briefly interrupted as a selloff in Chinese stocks abated following some drastic steps by Chinese policymakers. Releases of a few upbeat economic data in Japan and Germany lifting prospects for energy demand also briefly helped in stemming fall in oil prices. However, with IEA (International Energy Agency) stating that the global demand for oil would slow next year, oil prices quickly resumed its south-bound journey. Expectations of higher global
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supplies tied to Iran (especially with the announcement of the Iranian nuclear agreement), rising production from the Organisation of the Petroleum Exporting Countries (OPEC) and a strong US dollar kept oil prices on downtrend. Additionally, North American oil production, driven by the US shale boom and Canadian exports, continued to contribute to oil glut. Later, the Caixin China Manufacturing Purchasing Managers’ Index’s initial reading coming at 48.2 in July - a 15-month low as well as significantly below market expectations – raised oil demand worries from China and hence pushed oil prices down. At the fag-end of the month of July, oil prices staged some recovery largely helped by US government data that showed sizable weekly declines in crude supplies and production. But strength in the US dollar in wake of upbeat US GDP data quickly changed the oil price movement. Further, weak economic data from China and talk by Iran’s energy minister over the country’s ability to quickly ramp up production at the start of the month of August, kept downward pressure on oil prices. Amidst steady downward rally, oil prices got some brief respite largely on comments by US Federal Reserve Vice Chairman Stanley Fischer that the central bank might not hike rates until inflation moves closer to its 2 per cent target. However, the respite was brief as China’s surprising decision to devalue the yuan sent oil prices tumbling as
Futures price movement (July - August 2015)
65
200
59
180
53
160
140
120
NYMEX Heating oil (USd/gal) - LHS NYMEX Gasoline (USd/gal) - LHS NYMEX WTI crude oil (USD/barrel) ICE Rotterdam Monthly Coal (USD/MT)
47
41
35
Source: Bloomberg
Offshore World | 41 | August - September 2015
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FEATURES 8.5
Futures price movement (July - August 2015)
3
8.2
2.9
7.9
2.8
7.6
2.7
7.3
2.6 ICE-ECX EUAs (Euro/tonne) - LHS
NYMEX Natural gas (USD/mmBtu)
7
2.5
Source: Bloomberg
worries mounted over the health of the Chinese economy and the country’s appetite for crude oil. Later, release of solid US retail sales figures and other upbeat economic data reaffirming expectations for a rate increase by the Federal Reserve as early as the next month aided the fall in oil prices. Market participants continuing to fret over a global crude glut amidst sustained rise in the number of active US oil drilling rigs, ensured steady fall in oil prices. Later, weaker-than-expected Chinese manufacturing data and a plunge in the global stock markets spurring worries about the global outlook for energy demand led NYMEX crude oil futures register its two-month low of USD 37.75 on August 24.
rise in weekly US natural gas inventory levels ensuring enough supply, along with a rise in U.S. natural gas rigs kept natural gas futures prices under pressure.
Thereafter, China’s decision to cut interest rates and banks’ reserve requirement triggered oil price recovery. Oil prices were also supported by recovery in US and European stock market. Further, amidst weekly decline in crude inventories, oil prices were boosted following a report that Venezuela had asked the OPEC to hold an emergency meeting. A special meeting of key oil producers implied that they would discuss a possible production cut to help stem the recent drop in oil prices. Additionally, growing expectations that the overall weakness in prices would soon prompt sizable declines in oil production as well as the rising tensions in Yemen raising concerns over stability in the Middle East aided rise in oil prices. Subsequently, a US government report showing a roughly 1 per cent decline in monthly crude production and a bulletin from the OPEC expressing the group’s concerns over the low price of oil, pushed oil prices up. Finally, NYMEX crude oil futures closed the month of August at USD 49.2, registering a fall of 17.27 per cent over the two month period of July-August.
Finally in the emission segment, EUA futures traded on the ICE platform bucked the general downtrend and instead moved up by 8.2 per cent in the two-month period of July-August. Greek bailout deal and the Emission Trading System (ETS) structural reform helped EUA prices move up. Reduced supply due to backloading also aided price rise. Meanwhile, Market Stability Reserve (MSR) has passed all but one legislative hurdle in EU. A fully operational MSR, reducing auction supply by 12 per cent per year of the total over-supply, is slated to come into effect in January 2019.
Like crude oil, futures prices of oil derivates such as heating oil and gasoline (both traded on NYMEX-CME platform) also moved down in the two-month period of July-August 2015. While, NYMEX heating oil futures prices declined by 11.3 per cent; NYMEX gasoline futures prices plummeted by 21.5 per cent aided by an increase in US supplies and restart of a few refineries following maintenance activities and outrages. The other major energy commodity, NYMEX natural gas futures prices moved down by 5.05 per cent in the two-month period of July-August. A consistent www.oswindia.com
Another energy commodity, ICE Rotterdam monthly coal futures prices too traded down by 8.7 per cent in the two-month period of July and August. Like other energy commodities, coal prices too came under pressure on concerns of sluggish global growth especially due to a sharp slowdown in China. Additionally, weak European demand outweighed effect of lower supplies as warm summer across Europe pushed power demand, and hence, coal consumption.
(The views expressed by the authors are their personal opinions.)
Niteen M Jain Senior Analyst, Department of Research & Strategy Multi Commodity Exchange of India Ltd E-mail: niteen.jain@mcxindia.com Nazir Ahmed Moulvi Senior Analyst, Department of Research & Strategy Multi Commodity Exchange of India Ltd E-mail: nazir.moulvi@mcxindia.com
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ADVERTORIAL
3D PLANT DESIGN: INTERGRAPH’S TWO-PRODUCT STRATEGY AND WHY SMALLER PROJECTS STILL DESERVE QUALITY TOOLS FOR QUALITY DELIVERABLES In the following article Rick Allen, President, Intergraph CADWorx & Analysis Solutions; Dominik Hepp, Product Manager, CADWorx Plant Design Suite; and Venkat Raman, Business Development Director, ImageGrafix, Middle East & India, are interviewed by Vornel Walker, Vice President - Product Marketing, Intergraph CADWorx & Analysis Solutions. Vornel: People often ask, “Why does Intergraph develop and offer both Smart 3D and CADWorx to the plant design community.” Could either of you clarify the reasoning here? Allen: Thanks Vornel, I’ll take that one. Smart 3D and CADWorx have the capabilities that make both of them suitable for a wide range of projects and applications, although each have their strengths and niches. Smart 3D is excels at delivering very complex, or megaprojects projects with perhaps multiple design centers regionally or globally. Often these projects last a long time and require major investments in resources and manpower. For CADWorx, its sweet spot is in the small to medium project range, but it can also effectively handle larger projects, but certainly not at the scale that can be undertaken by Smart 3D. As an example, one of our clients, Richard Design Services (RDS) (http://www.richardig.com/rds/), recently completed a USD 360 million renewable diesel facility in Norco, Louisiana – actually the largest renewable diesel facility in the United States. The project consisted of 450 pieces of equipment, 200,000 feet of pipe ranging from 1½ to 24 inches in diameter. The project also required a very fast-track 12-month engineering timetable with a 22-month overall schedule. The ability for CADWorx to deliver fast implementation capabilities and project turnarounds for small, medium and some larger projects has been a major key for its success. Hepp: Also, it is worth remembering that some smaller projects are often part of larger megaprojects. CADWorx not only handles these projects really well, it also integrates with Smart 3D as part of the enterprise solution. This provides best-inindustry design practices and efficiencies. Vornel: We have just heard a global perspective, could you share what things look like in the Middle East and India? Venkat: For the vast majority of the design sites in our region CADWorx is a perfect fit. India in particular is seeing fantastic growth and you see mega projects taking place to support that growth. However, there are also many facilities that are in desperate need of performance modifications, as well as maintenance and repair work.
Image Courtesy: Harris Pye Engineering, Dubai.
These clients are still demand quality deliverables – irrespective of the size of the project. The main point is that if a plant, offshore platform or ship, is being modified, revamped or repaired it needs to be back in service as soon as possible. That means that any fabrication or installation should take place as smoothly as possible. Vornel: Makes a lot of sense. Rick, let me go back to something you just said about small and large projects. Are you saying that CADWorx suits smaller firms and it has no place in larger EPCs? Allen: Absolutely not! For larger engineering companies and facility owners, who choose Smart 3D as their enterprise solution, CADWorx certainly has a place. Many of these companies have smaller or fast turnaround projects and the need for ongoing maintenance, repairs, facility operations and plant updates. We have many such users that like CADWorx because of its full intelligence, automation and full integration with analysis solutions and Smart 3D. In addition, its ease of use ensures fast turnarounds for virtually any type of job or project. The market recognizes the value offered by both CADWorx and for SmartPlant, which is why each has been so successful.
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ADVERTORIAL Vornel: What are the organizational benefits for companies having or running both solutions? Allen: Automating can lower a firm’s ongoing administrative and operational investments. CADWorx has helped many engineering firms succeed, especially on fast-track projects, and these firms have gained new clients as a direct result. However, a smaller fast turnaround project still requires a quality clash-free model from which automatic deliverables can be generated. CADWorx does this for them. Hepp: These smaller projects can also be part of a larger enterprise endeavor, so interoperability and the ability to feed existing enterprise systems is still required. This bidirectional exchange of information CADWorx provides with Smart 3D offers a truly integrated enterprise-wide design solution. The Richard Design Services design project for the Norco diesel facility is a good example. With CADWorx, they were able to cut 100,000 project hours off design and engineering – a significant one-third reduction in time. Also, the project is part of a larger facility. Because it was done with CADWorx, it can be easily integrated into the Smart 3D enterprise management system. Vornel: You know that readers out there are trying to get a sense of what constitutes a small or large job, and what part of total plant expenditure the CADWorx market represents. Can any of you shed some light on that? Hepp: Yes Vornel, I think that I can. There is certainly an overlap between Smart3D and CADWorx in the addressable market. But what is interesting is that in a conversation with OOs we were told that 90 per cent of the projects they award a below USD 10 million! We estimate that these smaller projects represent around 50 per cent of the total engineering capital expenditure. As I said before, most of these projects are still being done without intelligent tools and without automation. This is where CADWorx could offer major benefits if implemented. We have customers who use CADWorx on job in the USD 100’s thousand and still these jobs are cost effective and profitable. CADWorx is the solution for 90 per cent of the projects out there, and even clients that award these projects deserve quality deliverables.
for CADWorx for many types of projects where fast implementation and turnaround are required. With CADWorx the designer activates the design checking processes to make sure design standards are maintained. CADWorx is also an AutoCAD-based 3D plant design solution, which is a significant advantage. Vornel: That makes a lot of sense. As we finish up here I’d like to go back to CADWorx and Image Courtesy: Harris Pye Engineering, Dubai. get a clearer idea of the sort of projects are you both see in this “sweet spot?” where the majority of OO projects are awarded? Allen: With oil prices at all-time lows, we are seeing a keener focus on making sure that what is already working is doing so as efficiently and effectively as possible. This means that many projects are more likely to be brownfield projects, and therefore smaller in scale – a perfect fit for CADWorx. That said there is still the same client pressures of excellence, quality, timeliness and cost required on these projects. Limited scope is no longer an excuse for poor deliverables, and MRO (maintenance, repair and operation) projects have an extremely negative effect on profitability if they do not go as planned. Vornel: Can you give some examples of the negative impact of MRO and brownfield projects not going online as planned? Allen: I can, but it may be better for me to quote from an article that appeared on www.fuelfix.com where Ed Winston, Principal Engineer for turnarounds and maintenance at Dallas-based HollyFrontier refining and petrochemical company said, “A turnaround is, by definition, a loss of profitability. In refining, if you’re not running you’re losing money.” So it follows that one of the best ways to make sure that a turnaround is done as quickly as possible is to make sure that whatever is being installed goes in right, first time.
Venkat: One of our users, UAE based MUC Oil & Gas Engineering Consultancy, who conduct projects related to the design of new tank farm areas and their modifications, accurately illustrates what Dominik is saying. Their Managing Director, Eng. Mohammad Shahin shared that “CADWorx is an ideal solution for the work that we do, and because it is AutoCAD-based, we are able to use our existing resources our team was able to produce deliverables from day one.”
Venkat: You know Vornel, Rick makes a good point, accurate designs, that take into full account the boundary conditions that exist on the site, are vital if accurate installations and on-time startups are the goal. Companies should look at costs not as it relates to the design or even fabrication of a revamp, but on the cost of lost production and revenues if startup dates are not met.
Vornel: With both products providing 3D plant design, what is the difference? Is it project size?
Vornel: So are you all saying that the accuracy that CAD offers is the answer to the problem?
Allen: The difference between the two is not project size alone because a project’s cost is typically determined by the equipment costs which can represent 60 per cent of a typical project. Overall complexity is more of the issue. Smart 3D provides rich rules-based processes, so the company knows that Smart 3D with rules established can maintain design standards where there are many people involved and where the work is spread over many countries. CADWorx doesn’t require rules even though it allows for that option. That is actually a major advantage
Hepp: Well not quite. There are no shortages of CAD systems, or even plant design systems, but very few of them adequately address the capture of site information with the flexibility that allows information capture to, not only be accurate, but also cost effective, depending on the magnitude of the work being undertaken.
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Venkat: To follow on from what Dominik has just said, if for instance you are just replacing a single line you could use a combination of CADWorx Plant Professional
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ADVERTORIAL and CADWorx fieldPipe in conjunction with a Leica Total Station. That setup will not only allow a single user to quickly and accurately capture the installation information of that line, but also simultaneously model the line and automatically create the fabrication deliverables. The beauty is that it can be done without the operator even leaving the site! Vornel: Dominik, in mentioning flexibility, you seem to allude to scalability of these solutions. How can Plant Professional and CADWorx fieldPipe help address as-built project larger than those mentioned by Venkat? Hepp: The great thing about CADWorx Plant Professional and CADWorx fieldPipe is that they also combine well to work with previously captured pointcloud data. Which, as you can imagine, is ideal for the creation of deliverables sourced from the capture of tens to thousands of piping, equipment or steel components. Allen: Many companies around the world are making use of the flexibility that CADWorx Plant Professional and CADWorx fieldPipe offers. At this year’s Hexagon Conference, HxGN LIVE Hong Kong, we will be featuring the success story of Setch Design, a company based in Queensland, Australia, that focuses on as-built design and brownfield remodeling. One project that comes to mind was for the installation of a new Jameson Cell (floatation tank) into the existing zinc concentration process for a mineral extraction facility – and if you have ever seen one you’d know how confined and tightly packed they are. Setch was responsible for the site survey, as-built and conceptual studies and all of the process fabrication deliverables. Vornel: So in this case, and projects like this in general, what tangible results can clients of these engineering firms realistically expect to see? Hepp: In this case, the outcome was that Setch was able to produce high quality deliverables that exceeded the client’s, MMG’s, expectations. Because designs were turned around quickly, it enabled concurrent design review, off-site fabrication and on-site construction to take place. They were also able to precisely locate complex plant, equipment & piping into a brownfield environment without any field fit or rework. In addition, the client had the installation delivered under budget and ahead of schedule.
“When done we know we have a clash-free design that can produce automated fabrication deliverables such as isometrics and bills of materials that install right first time. This ensures that clients experience minimal downtime and keeps ships operational and productive for as long as possible.” In an increasingly difficult market Harris Pye Engineering is thriving, and it is because they are differentiating themselves from the competition by exhibiting and delivering true value to their clients. Vornel: That is impressive. Any closing thoughts gentlemen? Allen: It is good that Venkat mentions the importance of value. Things may be tight for many in our industry, but the bottom line is that we all have to get better at delivering even better value to our clients – and that includes us at Intergraph. Oscar Wilde said that a cynic was “a man who knows the price of everything and the value of nothing.” We owe it to ourselves to fully know the value of the decisions we make and actions we take. Only when we ruthlessly pursue value can we know that our decisions are made for the best possible reasons, and that is because we know the best possible outcome. I would also add that a major reason for the success of our solutions, in delivering value, is the strong pre- and post-sales support provided through our Intergraph offices and dedicated channel partners worldwide. In Middle East and India the strong physical presence and dedicated team ImageGrafix has in place, helps ensure that customers have the right solutions and, through training and support, are using them effectively. This has increased the confidence level of the clients to embrace CADWorx as a reliable plant design solution for small and medium size projects in the region. ImageGrafix is the Intergraph CADWorx & Analysis Solutions Global Network Partner covering Egypt, the Middle East and India.
Venkat: We are finding the same in our region. I have a story that I would like to share, but I’ll read it directly in the words of Mr. Vitaliy Alekseenko, Design Manager at Harris Pye Engineering, Dubai. He says: “Because most of our projects are retrofits, on existing marine vessels or offshore platforms, we have found the flexibility offered by CADWorx Plant Professional to be ideal for our detail design and 3D modelling. Our speciality is using 3D scanners to conduct on-board surveys to capture as-built data of equipment, structural, piping components. This capturing of information now takes hours, instead of days, when compared to manual methods.” Mr. Alekseenko goes on to say, “CADWorx fieldPipe is then used to convert scanned data into an intelligent 3D CADWorx model that can be manipulated and reviewed with the client to establish what best fits their budget and needs. Ultimately, installing the updated piping in the virtual model saves our clients a considerable amount of time and money and allows the evaluation of an infinite number of virtual options before settling on the right design. Offshore World | 45 | August - September 2015
Rick Allen President Intergraph CADWorx & Analysis Solutions Dominik Hepp Product Manager CADWorx Plant Design Suite Venkat Raman Business Development Director ImageGrafix, Middle East & India Vornel Walker Vice President - Product Marketing Intergraph CADWorx & Analysis Solutions www.oswindia.com
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MINI REFINERY ORIENTAL NICCO PROJECTS PRIVATE LIMITED
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riental Nicco provides turnkey solution for Design, Procurement & Installation of Relocatable Modular Mini Refinery. These modular Mini Refinery comprising of Crude Topping Units, Strippers & Stabilisers can be installed either at Well head locations of residual oil wells or at a strategic Group Gathering Stations. Oriental Nicco has credential for turnkey installation of such a Modular Refinery for the first time in India at M/s. ONGC, Tatipaka. Capacity & Flexibility in Operation The modular mini refinery can be designed & constructed for handling crude and/or condensate. The typical capacities of such modular refinery can be from 500 BOPD to 20,000 BOPD. Highly customized, scalable solutions designed for specific processing requirements of different crude oil / condensate feedstocks. Advantages of Modular Relocatable Refinery • The modular refinery can be easily relocatable with minimum field work. • Optimal shortened project schedule. • Enhanced quality control for entirely equipment being fabricated in shop. • Reduction in field work. • Elimination of delays due to inclement weather. • Improved safety & environment requirements. • Overall project time schedule and cost savings. Special Features of Modular Refinery A typical modular refinery consists of Atmospheric Distillation Unit, Stripper Columns, Stabilisers, Desalter and can produce the following saleable products : • Naphtha • Kerosene • Diesel • Atmospheric Gas Oil • Reduced Crude Oil Scope of Deliverables and Works We can offer turnkey solutions comprising of Know-how, Basic Engineering, Detail Engineering, Project Management, Procurement, Supply, Fabrication, Installation, Commissioning and Performance Test Run of the complete Modular Refinery. Modularization of Refinery Typically a modular refinery consists of the following transportable skids which are fully piped, with complete instrumentation & electrics required for processing of crude / condensate :
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• Heat Exchanger Skids comprising of either shell & tube or hair pin exchanger (TEMA-R). • Vessel Skids • Pump Skids consisting of either horizontal centrifugal pumps or vertical online pumps as per API codes. • Desalter Skids • Air Cooled Heat Exchanger Skids (for locations where cooling water is not available). • Columns Skids consisting of Atmospheric Crude Columns, Stripper Column and Stabiliser Columns in a structurally supported frame work. • Fired Heater Skids or Thermic Fluid Heater Skids. • DCS based Control & Automation facilities installed in Modular Bunk Houses. • Electrical Switchgear & Power Distribution system installed in Modular Bunk Houses. Offsites & Utilities We offer complete offsites & utilities packages required for such refinery which are • Package Boiler and Steam Generation Unit • Flare Stack with Flare Header • Compressed Air & Instrument Air System with Distribution Network • Cooling Water System with Distribution Network • OWS & Effluent Treatment facility • Crude & Product Storages Tank Farm • Product Loading Bays and Tank Farm Management System • Fire Fighting & Hydrant Network Fabrication & Assembly Equipment & modular skids shall be carried out in our fabrication complex in Vadodara which is ASME-R, S & U Stamp approved. The major equipment that shall be shop fabricated are : • Columns • Heat Exchangers • Pressure Vessels • Piping Spools • Fired Heater • Structural Skid • Assembly & testing of entire skid What we Value We start a project with evaluation of our customers need, project site, installation and any other factors to identify most appropriate constructability of the modular mini refinery. Oriental Nicco offers end-to-end processing solutions, design to take our customer from planning to production, we are committed to provide you with high quality solutions at the lowest possible price.
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MARKETING INITIATIVE
SUPER-DUPLEX STEELS IN DEMANDING TOPSIDE OFFSHORE APPLICATIONS Vikram Pandit, Product Manager for Hydraulic & Instrumentation Tubing at Sandvik India, explains how the stainless steel manufacturer has developed advanced hydraulic and instrumentation tubing in super-duplex material for topside applications.
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nergy and petrochemical suppliers worldwide are highlighting the need for innovation and collaboration in order to meet the most pressing issues facing the global oil and gas industry. These challenges include greater needs for cost-efficiency as well as growing health, safety and environmental (HSE) demands. Global demand for energy continues to grow, especially in developing economies such as China and India. Market pressures are driving oil and gas companies towards deeper wells in more exposed locations to achieve higher productivity and efficiency. This subjects rigs to even greater threats of localized corrosion. On offshore platforms stainless steel tubing is used in process instrumentation, hydraulic lines, chemical inhibition and utility applications. Many of these applications are topside and in tropical sea waters corrosion of AISI 316L stainless steel tubing often occurs, primarily due to marine atmospheric corrosion. In the main this is pitting and crevice corrosion that takes place in inaccessible locations such as beneath clamps, support trays and connections. Both types of corrosion depend on chloride concentrations and moisture levels. However, they can be further exacerbated by surface contamination caused by iron particles from welding and grinding operations, surface deposits from handling, drilling and blasting and from sulfur-rich diesel engine exhaust. Operational experience in tropical waters, such as the Gulf of Guinea and the Gulf of Mexico, prove that AISI 316L tubing service life is less than 5 years while in some extreme cases it can be under 1 year. Obviously, this has serious implications not least of which is life hazard accidents resulting from sudden failures as well as the potential serious damage to the platforms. Improved corrosion resistance for longer lifecycles The normal lifecycle of AISI 316L steels can exceed 100 years in non-corrosive environments. However, tests in chloride containing environments have demonstrated that tubing made from AISI 316L has a service life shorter than 5 years and, in some cases, less than one year. This has since been confirmed by operational experience. Such corrosion failures are adverse to the increasing performance demands faced by oil and gas companies. In process systems found on topside platforms – consisting of various vessels, heat exchangers, separators and compressors – poor equipment
Table 1 – Range of chemical composition and PRE values for some corrosion resistant alloys. (Okeremi & Simon-Thomas, 2008.) PRE (Pitting Resistance Equivalent) is a practical application for selecting appropriate materials, today widely recommended by stainless steel manufacturers. PRE = % Cr + 3.3% Mo + 16% N.ww
life spans pose serious risks of sudden equipment failures and may even lead to hazardous, costly and highly-publicized accidents. Consequently, some oil and gas suppliers have gone so far as to implement a ‘zero tolerance policy’ against accidents. With the growing demand on oil and gas exploration is going deeper and the processing environments are becoming more extreme and corrosive to meet production targets. The industry is turning to corrosion resistant alloys (CRAs). These CRAs include grades from 13Cr and upwards and 6Mo austenitic steel types (containing 6% Mo) such as 254 SMO™ and alloy 625. However, because they have higher levels of Ni and Mo and somewhat lower market availability they are more costly than super-duplex steels. Twice the strength of high-alloy steels Fortunately, there is a further alternative material that is helping the oil and gas industry face emerging market challenges, while also achieving lower lifecycle costs and other operational benefits. Super-duplex steels have been gaining a bigger market share thanks to their higher strength which can reduce the wall thickness of tubes and pipes in hydraulic and instrumentation systems, thus reducing both cost and weight. Among these materials is the super-duplex austenitic-ferritic steel Sandvik SAF 2507™, which has a PRE (Pitting Resistance Equivalent) value of 42.5 due to its chemical composition of 25% Cr, 4% Mo and 0.3% N compared to other steels (see Table 1).
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Figure 1 – AISI 316L stainless steel and Sandvik SAF 2507™ super-duplex tubing installed side by side, with the AISI 316 tubing showing extensive corrosion and the super-duplex tubing showing none. (Schiroky, Dam, Okeremi and Speed, 2009.)
Figure 2 – The lower deck test installation showing where the five tube samples were installed for the 18 month period of the trial.
Sandvik SAF 2507 is specially designed for highly corrosive conditions and chloride-bearing environments. Its high mechanical strength can also enable lighter constructions with weight savings of up to 50% over standard steels. With these qualities, the material can endure long and secure equipment durations, as was clearly proven when it was installed alongside AISI 316L in Sandvik’s Gulf of Mexico tests. While AISI 316L experienced heavy corrosion in the tests, no signs of corrosion were detected in the super-duplex tubing, Figure 1. The latter material’s mix of austenite and ferrite provides a very high mechanical strength with a minimum proof strength of 550 MPa (N/mm2) – nearly twice that of high-alloy austenitic steels. The material’s excellent resistance to stress corrosion cracking (SCC), pitting and crevice corrosion in chloride bearing environments makes it a natural choice for hydraulic and instrumentation tubing applications on offshore platforms.
Lower deck test installation An extensive trial on an offshore oil rig in the Gulf of Mexico saw the installation of hydraulic and instrumentation tubing in various material grades in order to observe and measure their resistance to corrosion in a harsh marine environment, Figure 2. The period of the study was from 22nd August, 2002 to 12th February, 2004. During this time the temperature range was between 30 - 40˚C. The tube samples installed were of the following grades: 316L (UNS S31603 – minimum 2.5% Mo), 904L (UNS N08904), Sanicro 28 (UNS N08028), Sandvik SAF 2205 (UNS S32205) and Sandvik SAF 2507 (UNS S32750).
Material selection and chemical composition Pitting and crevice corrosion at temperatures above 50oC to 60oC (122˚F to 140˚F) and stress corrosion cracking (SCC) are the most common of all types of corrosion in oil and gas topside applications. Such corrosion is caused predominantly by localized attacks from seawater. Here the chloride content, alongside other factors such as fouling and galvanic effects induce stress corrosion cracking, particularly if the material is too low alloyed for the service conditions. Corrosion challenges are driving companies to upgrade their platforms with intelligent infrastructure to reduce costs and prolong equipment lifecycles. Materials selection for the hydraulic and instrumentation tubing is of paramount importance for these improvements. In light of these requirements, the high-alloy super-duplex stainless steel grade Sandvik SAF 2507 has become a favored choice for hydraulic and instrumentation tubing in such exposed locations. The proven corrosion resistance of Sandvik SAF 2507 makes the grade an increasingly justifiable solution for economic considerations, such as operational reliability and long service life. The steel’s Mo content is 4% which gives it performance levels comparable to 6% Mo austenitic stainless steels like 254 SMO and AL-6XN. www.oswindia.com
Figure 3 – These images show the levels of corrosion present on the 316L tubing sample after just 18 months of exposure.
For the purpose of this article we have focused on two of the grades in the trial, 316L and Sandvik SAF 2507. Once the sample tubes had been removed from site and returned to the laboratory extensive tests were carried out to determine the corrosion present. In the analysis that followed 316L showed that significant corrosion had occurred in the 18 months duration of the trial, Figure 3. Detailed analysis using Scanning Electron Microscopy (SEM) and Energy Dispersive X-ray Spectroscopy (EDS) was carried out. This revealed the presence of sulfur and chlorine in the corrosion area on the 316L tube sample, as can be seen in the graph and table in Figure 4. In the Sandvik SAF 2507 tube sample there were no visible signs of corrosion, Figure 5. SEM/EDS scans, Figure 6, confirmed that no harmful corrosion agents were present after 18 months exposure in the demanding environment of the Gulf
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of Mexico. There was no chlorine present and only the original sulfur content of the material. The Pitting Resistant Equivalent, or PRE number, is widely accepted as the best method to rank the pitting resistance of stainless steels. It is calculated from the level of Cr, Mo and N present in an alloy, PRE= %Cr + 3.3% Mo +16%N. For offshore applications the common specified minimum PRE number is 40. While AISI 316L and its variants, like AISI 317L, have insufficient corrosion resistance with maximum PRE numbers of 27.9 and 34.8 respectively, Sandvik SAF 2507 is a satisfactory alternative with a minimum PRE of 42.5. F i g u re 4 – A n a l y s i s ca r r i e d out with SEM/EDS showed the presence of sulfur and chlorine in the corrosion areas of the 316L tubing.
Collaborating with long-term partner The challenge for the oil and gas industry is to continue its long-held track record in overcoming technological obstacles – and
Figure 6 – SEM/EDS scan readings and tables taken from the Sandvik SAF 2507 tube sample after 18 months exposure confirming there was no reading of chlorine or additional sulfur.
Meanwhile, as dynamic and cost-effective steel materials and infrastructures become ever more critical to oil and gas producers, Sandvik is confident that its operationally tested Sandvik SAF 2507 super-duplex is one of the best material grades for the replacement of AISI 316L in hydraulic and instrumentation tubing on offshore platforms.
Figure 5 – By comparison the Sandvik SAF 2507 tubing sample showed no traces of additional sulfur or chlorine and no visible signs of corrosion after 18 months exposure.
no single organization or government can meet these industry changes alone. This is where Sandvik 150 years of unmatched expertise in metallurgy and steel production for varied applications comes into play. Sandvik can be a long-term productivity partner for its customers, with the know-how and experience to create next generation materials that can bring more value for end users and help to future-proof their business.
Sandvik, Sandvik SAF 2205, Sandvik SAF 2507 and Sanicro are trademarks owned by Sandvik Intellectual Property AB. 254 SMO is a trademark owned by Outokumpu OY and AL-6XN is a registered trademark of ATI Properties, Inc. Inconel 625 is a trademark of Special Metals Corporation.
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TEKLA IMPROVES OFFSHORE EFFICIENCY AT NPCC ENGINEERING LIMITED The leading offshore company NPCC Engineering Limited (NEL) is a joint venture of NPCC, Abu Dhabi and Arcadia Shipping, Mumbai, carrying out design and engineering activities for oil and gas upstream industry. NEL’s Quality Management System (ISO 9001:2008) is certified by Bureau Veritas and it has carried out several design and engineering projects of new well head platforms, subsea pipelines and topsides modifications on well head/process platform.
• NEL had a task to create well head platforms at WO-16 and SB-14 cluster field located at South East of SH process complex of Mumbai High Field in water depth of 75 to 80m. The project scope consists of 5 new well head platforms and 2 major deck extension on process complexes. NEL was already equipped with high end softwares needed for oil and gas upstream projects such as PDS, PDMS, STAAD, Sacs and Caesar. • There was need to have 3D software to handle their all structural needs start from concepts to engineering/detailing/ fabrication to erection. After extensive evaluation and anticipating upcoming challenges NEL decided to switch from traditional 2D based platform to 3D BIM based process & technology. Their obvious choice was Tekla and they decided to implement the software in this fast track green field well head platform project.
requirements of offshore industry incorporation. This can further fine tune Tekla offerings to all offshore players. OTHER SALIENT FEATURES OF TEKLA THAT CAN HELP ON A FAST-TRACK PROJECT • Easy to learn and implement. • Tekla Structures allows simultaneous access by multiple users to the same model. • Web-link facility allows engineers to review the model simultaneously as it is getting developed.
WO-16 CLUSTER & SB-14 WELLHEAD PLATF ORMS PROJECT • This project is a new well head platform which is supported on four legged fixed jacket structure with two legs having single batter and other two legs have double batter. Jacket is made of tubular sections, welded together, and it is anchored in seabed with main/skirt piles. Jackets have spider deck at top level and have diagonal bracing in all faces connecting horizontal framing levels. It also includes boat landing, buoyancy tank, anodes, riser, skirt pile guide and lifting/ upending trunnion etc. Maximum jacket weight is 2100MT. The platform top side consists of sub-cellar deck, cellar deck, main deck and aluminium helideck. Top side also includes building module, vent boom, crane pedestal, solar panel supporting platform, well head access platform, walkways, stairways, ladders and railings. Maximum topside weight is 1900MT. COMPLEXITY HANDLED WITH EASE: • NEL structural design team worked based on the requirements of client and came up with relevant technical and design issues to be developed and incorporated in the Tekla model. Tekla technical support team and NEL design team worked together during development and customized few tools as per the project requirement. Although the project had time constraint, NEL managed to achieve defined results in relatively short period with the help of versatile Tekla software and the excellent implementation support provided by the Tekla team. In the process of project execution Tekla local support team got valuable feedback on a few small www.oswindia.com
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MARKETING INITIATIVE INTEROPERABILITY CONTRIBUTED TOWARDS SUCCESS: • The design and modeling of the structure was done with the Tekla Software right from the early stage. Modeling began with the main steel & secondary steel structure as soon as the calculations were completed with SACS. The model is completed later with all the tertiary elements such as the connecting plates, equipment supports, access platforms, padeyes, stiffeners, node plates, cut outs and penetrations as the vendor information was made available. The robustness of the software in dealing with the changes was beneficial in the overall smooth execution of the project.
• Tekla Structures users can streamline the design and fabrication processes, ultimately ensuring the highest level of quality in project deliverable. • Free tools Tekla BIMsight for every NEL team member involved in projects to communicate collaborate with others. NEL RECEIVED THE FOLLOWING BENEFITS: • Generating detailed structural material take off list very quickly and accurately during design phase of job. • Monitoring weight of the structure and the position of the deck structures center of gravity during the design phase. • Direct output of 2D drawings to present to the end user or client and the relevant authorities for approval or certification purposes thus reducing human errors and checking time drastically. • The software allows user friendly interface with Piping or E&I models in PDS for reviews and complete clash free structural model. • Import of main steel frame directly from analysis software SACS. • Using Tekla 3D structural model for regular design review kept it fully coordinated from any conflicts with the equipment, piping, cable trays and access routes. OUR AMBITION IS TO MULTIPLY YOUR POTENTIAL TO THINK AND ACHIEVE BIG • With an ambition to multiply its customers’ potential to think and achieve big, Tekla provides a BIM (Building Information Modeling) software environment that can be shared by contractors, structural engineers and detailers and fabricators of all materials.
This translates into increased productivity and elimination of waste, thus making construction and buildings more sustainable. • Tekla Corporation drives the evolution of digital information models and provides competitive advantage to the construction industry. Tekla software is used worldwide to model all types of structures. TEKLA AND TRIMBLE • Tekla was established in 1966, and today it has customers in 100 countries, offices in 15 countries, and a global partner network. Since 2011, Tekla has been a part of the Trimble Buildings Group. Trimble group’s solutions tightly link officebased process and information with the field crew. Trimble Design-Build-Operate platform responses to the needs of owners and the AEC industry by increasing productivity and reducing rework. TEKLA BIMSIGHT • Tekla BIMsight is a free professional tool for construction project collaboration. Anyone can combine models, check for clashes, mark-up and share information using the same easy-to-use 3D environment. With Tekla BIMsight project participants can identify and solve issues already in the design phase.
Tekla software is made for creating, combining and distributing highly detailed, constructable 3D models. Information-rich models lead the way for production control and more collaborative and integrated project management and delivery.
Offshore World | 51 | August - September 2015
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MARKETING INITIATIVE
BP CHEMICALS ENHANCES SITE SAFETY WITH FLIR INFRARED In the production of acetic acid BP Chemicals is world renowned and responsible for a significant proportion of world capacity. Its proprietary methanol carbonylation technology, Cativa, is in demand globally and in particular in Asia where the company continues to establish new manufacturing partnerships. In the UK its site at Saltend in East Yorkshire is not only a manufacturing flagship but also a major centre for ongoing research and development of the process.
A
cetic acid is a highly versatile substance. It is perhaps best known as a major constituent in vinegar and other foodstuffs but is also widely used as a chemical intermediate and solvent in paints, adhesives, textiles, papers and chewing gum. It is produced by the combination of carbon monoxide and methanol in the presence of a catalyst. Every year the company invests many millions of pounds in improving production efficiency, minimising environment impact and protecting the workforce. And it is largely with personnel safety in mind that BP Chemicals is now taking a fresh look at how FLIR thermal imaging can help minimise leaks. Effective leak detection is of course a site priority at Saltend and one of a number of procedures for ensuring safe operation. As Senior Technologist, Dr. Geoffrey Wilcox confirmed, “We have several established programmes which help us to comply with both regulatory and local requirements.” The EU Chemical Agents Directive to protect the health and safety of workers using chemicals and the Control of Major Accident Hazards Regulations, commonly referred to as COMAH, are typical examples. Bought in 2005, the FLIR GasFindIR camera has been central to Dave Fashimpaur’s troubleshooting work and it now accompanies him all over the world. He added, “There’s no set-up involved. When you switch the camera on it has to cool down to the required temperature but after that you get your images immediately. There’s no post processing involved and I just play the video footage back via Windows Media Player.” The camera allows him to inspect wide areas efficiently and to pinpoint the source of the leak. “I’m looking for motion in the black and white image,” he continued. “Of course that could be steam or metal tags waving in the breeze so my judgement is informed by experience but by changing
Dave Fashimpaur from BP is checking for leaks of natural gas using his GasFindIR HSX www.oswindia.com
the lens I can capture the complete scene or a small detail.” The 25mm lens is the most popular but Dave also has 50mm and 100mm for longer range inspection. This now vitally important piece of equipment was one of three FLIR GasFindIR cameras recently employed to check plant integrity at the Saltend site. Dave Fashimpaur used his HSX model to detect a range of gases including methane and methanol that are both predominant at the UK plant; HSX is able to detect 20 different gases in total. In addition, a long wave version of the camera was used that is capable of detecting acetic acid, acetic anhydride and ammonia, three of the total of eight products processed at Saltend. Completing the set was a brand new camera in the FLIR GasFindIR family. This model is specifically designed to detect carbon monoxide, CO. To a greater or lesser degree, the majority of process gases at BP Chemicals are hazardous but CO is certainly in a class of its own. Even in the low parts per million it can cause serious health problems and naturally BP ensures that any of its personnel that could potentially come into contact with CO carry personal monitors at all times. The carbon element of CO is obviously a problem environmentally too so the detection of any leaks is doubly important. Although some process areas of BP Chemicals at Saltend are nearly 30 years old this is a site that is exceptionally well maintained and this was born out by the relatively few emissions detected during the IR survey. Nevertheless all three cameras acquitted themselves well by pinpointing several gas leaks. In the case of the FLIR GasFindIR™ HSX camera there had been some previous evidence of leakage at the plant entry point for natural gas from which carbon monoxide is produced. To enhance safety, odour is added to the natural gas and as Process
Using GasFindIR HSX to check for natural gasleaks
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MARKETING INITIATIVE
Engineer CS Chung confirmed, “We were able to smell the leak but didn’t know its exact location.” The HSX camera found the culprit to be a leaking flange that has since been tagged for repair during the next maintenance shut down.One of the main sources for the natural gas used in the process is the BP terminal at nearby Dimlington. The site processes in the region of 900 million standard cubic feet of North Sea gas daily. The infrared survey at Dimlington confirmed more than 99% of components to be leak-free. However the HSX camera was able to trace the source of an odour at a condensate sump and small leaks around compressor flange plates. This FLIR GasFindIR™ HSX camera is designed for outdoor use. For that purpose it comes complete with selectable frame acquisition rates to suit the ambient temperature. Too great a heat results in a saturated image and too cold, insufficient detail. This feature ensures optimum performance whatever the ambient temperature so that the GasFindIR can be used with equal efficiency for inspecting hot compressors or sites characterised by permanent ice. Unlike other gases at Saltend CO doesn’t have the advantage of odour and therefore unless the emission exceeds the alarm setting of a personal monitor or a fixed detector, a leak will remain undetected. The first small escapes that the FLIR GasFindIR CO camera found were from an infeed pipe and a heat exchanger flange, both part of an electrically driven compressor. From a gantry in an adjoining covered section of the plant, the camera was then used to inspect a series of steam driven compressors. Two further CO leaks were found. In high sensitivity mode both were clearly visible as plumes of gas. “These were great examples of small and easily fixable leaks that the camera picked up speedily and at a safe distance,” Geoff
Wilcox explained. The FLIR GasFindIR LW proved equally effective. This camera was primarily developed for the detection of the greenhouse gas, sulphur hexafluoride (SF6), but its wider capabilities made it a good choice for BP. It can also ‘see’ acetic acid and therefore provided clear images of small emissions from the vapour space in tankers and from a vent in the roof of the loading bay. It also identified small escapes from automatic loading arms whose emissions are largely controlled by recovery systems. Ammonia is another gas detectable by this LW camera and this was seen in a vent situated 20m above ground level with the camera position at a distance of 150m or so. FLIR GasFindIR cameras are increasingly being adopted by plants across the world for the visualization and documentation of gas leaks. The reasons for this were clearly demonstrated at BP Chemicals. FLIR GasFindIR can scan large areas rapidly and pinpoint leaks in real time. It is ideal for monitoring plant that is difficult to reach with contact measurement tools and literally thousands of components can be scanned per shift without the need to interrupt the process. It reduces repair downtime and provides verification of the process. And above all it is exceptionally safe, allowing potentially dangerous leaks to be monitored from several meters away. Press enquiries, electronic press releases and digital photography Trudi, Sal or Caroline at NEW RIVER Tel: 01920 468443 Fax: 01920 460528 Email: info@newriver.co.uk www.newriver.co.uk For more information, visit www.flir.com/ thg or contact: FLIR, Sweden World Wide Thermography Center Rinkebyvägen 19 - PO Box 3 SE-182 11 Danderyd, Sweden Tel.: +46 (0)8 753 25 00 Fax: +46 (0)8 755 07 52 e-mail: sales@flir.se
In both pictures CO leaks where found with the GasFindIR CO
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MARKETING INITIATIVE
NAGMAN’S TRI-PHASE (FLOW) METERING SYSTEM
Working theory he flow from oil well is mixture of oil with Water and Gas, which is called ThreePhase Flow. Tri-Phase Metering Systems featured with good performance, high accuracy, and the real-time result, can indicate the oil field production condition, improve the management of oil field, and solved the problems in measurement of single well, multi-wells and well stations.
T
Gas from mixed medium will get separated from liquid by going through Gas-Liquid Separating Unit, including Hydrocyclone Separation, Colliding To Break Gas, and Gas Separating Regulator. Then gas goes to ultrasonic gas Flow Meter and liquid goes to Coriolis Mass Flow Meter that can get water-ratio by its water-oil density difference analysis. After processed by the PLC controlling unit, the measured signals become data of liquid volume, oil percentage, water percentage, gas percentage, system pressure and temperature. The system has TFT display to show real-time status, and it can also be equipped with remote communication with internet. This system effectively handles the flow from Multi-wells (Typically 6, 11, 15 & 20) using multiple valves that automatically shifts among different wells, including by-pass line. This system has Manual Cleaning facility. Features Accuracy : Liquid relative error : 0.5% Water ratio relative error : 2% Gas relative error : 1% 1. Flow range : Liquid flow range : 0 - 2400 m3/d (as user’s request) Gas flow range : 0 - 9000 m3/d (as user’s request) Water ratio : 0 - 100%; Gas rate : 0 - 100% 2. Medium : for all flow pattern 3. Liquid viscosity : 5000 cp (working condition) 4. Pressure loss : 0.1 MPa 5. Medium temperature : <100 6. Working pressure : 4.0 MPa (as request) 7. Ambient temperature : -20 ~ 55 8. Data process: Display for Instantaneous flow and total volume of liquid, gas water (oil), Real time status for system and device Journal sheet 9. Remote monitoring (as user’s request) www.oswindia.com
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MARKETING INITIATIVE
CHALLENGES IN FORMING PROJECT AND EXECUTION
O
IL & GAS is the source of energy and need to develop at any cost to satisfy the need of every single individual of the world. However by seeing today’s scenario industry is experiencing tremendous pressure due to a recent drop in oil prices. Still it is possible to form an industry as where one field stops needs begin generating and another field start taking shape. Forming projects and challenges mainly during FEED (Front End Engineering Design) and detail engineering are attempted to clarify in this article... It is very important to understand how project comes in the market and executed to get desired results. As it is said that development need visionaries in light of the fact that vision makes work for all furthermore vision drives Technology and Technology drive industry… “Need” develop product and vision set goal acquire goal in to reality. There are thousands in the world to support goal by doing Feasibility Study, providing technology, converting technology in to engineering, converting engineering in to construction and by financing. Finally industry is driven by Vision… only thing it is totally depend upon the individual’s confidence and faith in their goal. To bring vision to reality, skilled manpower plays very important role in the industry at various levels and in different industries. As we are in the computer world, software plays an important role but to use software technical knowledge is must. Hence the vision that comes from one’s mind to be implemented into
reality and after having strong hold on subject can be converted into electronic using relevant software. The fact is generating data for software need highly skilled manpower to bring required result as we know that any person is coming in the plant is having full right to go back their home safely means it is necessary to have better skills for getting greater result, better review for lesser mistakes and better construction for lesser risk… one need to understand this concept throughout in the life cycle of any chemical process plant… hence as software are developed,it is very important to have Skilled Manpower to work on Concept to get quality result. Many EPC contractors are setting up their workplaces, many engineering workshops and also third party inspection companies are enhancing skills as per industry requirement. Every year billion dollars are invested in constructing new process plants, revamping chemical process plants, environment compliances and increasing plant system reliability in the Oil & Gas, Petrochemical and related chemical process Industry. Along with this there is also investment in asset management and plant maintenance.. Presently we should perceive how the skilled professionals are confident to carry out assigned task and at different stages like it begins with technology provider. As technology provider develop project at lab scale and gives all required details
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MARKETING INITIATIVE which are required for taking decision to the investor. After feasibility study once Final Investor Decision (FID) is made then an EPC contractor is finalised and project is floated into market. After finalisation of project first activity is ‘FEED’ (Front End Engineering Design). FEED processes to engineer the initial design, quantify capital cost including type of units, technology and overall performance detail. Some of the major points to be considered are Scope, Process Guarantee, Basis of Design, and Statutory requirements, Standards, Quality and Technical Reviews. During FEED main challenge are making plant design cost effective and timely delivery under tight schedule. Fear is of disappointment and failure as a result of accessibility and availability of skilled manpower which develop scarcity of engineering resources which might result in failure of project activities at various phases. Likewise issue is not sharing the gathered information to the respective department and developing link and sequence of various suppliers in the project. After FEED, detail engineering started for generating documents for procurement and construction purpose which is performed by an EPC contractor. It is an extraction of FEED like drawings required for procurement, fabrication and erection items including Bill of Quantities. This is then divided in to several parts like Engineering Execution Strategy, commencing detailed Design, initial design and hazardous identification, Design Reviews and Audit, Approval of Design, Approval of construction and closing of design. Major documents for commissioning and startup also are prepared during detailed engineering. Mr. Vasant Dinkar Mestry, has done his MS in Mechanical Engineering from Atlantic International University and he is also the member of ASME.. Along with his engineering he has done Piping Engineering from Mumbai IIT and to provide better and better solutions in various oil and gas project he has continued his education and doing Masters in Project management specialization in Oil and Gas from Liverpool University London… and has developed urge to continue education to support in setting up project…. A key role in a multinational oil & gas company led to him overseeing various projects in India and abroad. During his work assignments, he realised the immense shortage of trained and skilled manpower in the industry. He further realised that a lot of time and money was wasted as many a time the projects or assignments had to be reworked upon as they failed in meeting a client’s specifications or needs. Incorporating his own work experience and research, besides interacting with various authorities from the industry, leading piping consultants and looking at the future global demand, he conceived a robust and user-friendly basic module of piping. This ingenious module was capable of saving remarkable efforts involved at every stage of designing and delivered an optimal output that met the challenges of competitive cost-effective projects. Along with this he is having very good experience during his working of Process Plant Engineering from Concept Development to Commissioning worked on various www.oswindia.com
Some of the challenges during detail engineering are the reviews and man hour management. Many times it fails because of revised inputs, updating in process technology, aligning new inputs with project sequence, failing in skill management, sudden change schedule, resource conflict, data sharing with procurement & vendors site team etc… delays project and reduce profits. Many EPC Organisations which are consultancies are equipped for successful execution of the project from concept to construction. Also takes responsibility for provision of engineering and design services, manage construction phase of the project, plant operating for identifying and fixing problems which is single point responsibility of entire project by performing Simulation, which is helping to minimize the cost of physical testing, by developing new technologies to enhance productivity, by evaluating novel concepts to get better result and by assessing product performance for minimising risk. For more details visit our website: www.suvidya.ac.in / www.accent.net.in projects like Qatar Petroleum, HPCL, Mathura Refinery, NIPA America, Thai Peroxide etc…also have very good hold in Skid (Packages) designing of various units of Oil and Gas. In the recesses of his mind, he truly desired to share his work experience and impart training and education to the needy students for the industry. Mr. Vasant Dinkar Mestry, is Founder of Accent Techno Solutions, an EPC organisation which is contributing in many engineering activities in all disciplines of engineering in various chemical process plant and manpower supply to many engineering companies globally. He is also the Managing Director of Suvidya Institute of Technology Pvt. Ltd. Institute provides industrial training based programs into engineering field. There are Corporate and In House Training programs designed as per current job requirements using international codes and standards. Corporate Trainings are designed for converting working difficulties into Customize Training for enhancing skills of employee to improve their efficiency and accuracy to meet project schedule. In-house trainings are designed for Engineers, Designers and Draughtsman to make engineers productive from day first of their job by designing dummy project during Training Program. Today the Institute is known globally for its contribution in skilled manpower development in Engineering industry and rewarded at many forums. Approximately 12,000 students have been benefitted by the trainings provided at SIT
Offshore World | 56 | August - September 2015
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NEWS
Auction of Marginal Fields by Dec: OilMin
IOC to Invest for Scaling Output
New Delhi: 69 marginal fields, which had approved by the cabinet for auctioning, will open from late November or early December and expressed confidence of getting good response from across the globe, said Dharmendra Pradhan, Petroleum and Natural Gas Minister. The fields, which have been pending for development since the 1970s and expects to unlock ` 70,000 crore worth energy reserves, have allowed unified licence (it be gas, oil, shale gas or CBM) apart from revenue sharing (as against the existing practise of PSC) and complete freedom of marketing the produce at market prices. Of the 69 fields to be put on the block, 63 are owned by ONGC and six by Indian Oil. Dharmendra Pradhan, Minister for Petroleum and Natural Gas
NOCs from Middle East Keen to Hike Storage in India Visakhapatnam: National oil companies (NOCs) of Saudi Arabia, Iran, Kuwait and UAE have showed interest to hire a part of the under-construction strategic oil storages being built on the west coast. But they want India should liberalise policy by allowing export of crude oil. India recently built a 1.33-million-ton underground oil storage at Visakhapatnam and caverns totalling 4 million tons at Mangalore and Padur in Karnataka will be built by December. UAE’s Abu Dhabi National Oil Company (ADNOC) and Kuwait Petroleum Corp (KPC) as well as Saudi Aramco of Saudi Arabia have expressed interest in storing about 2 million ton of crude oil in the caverns on the west coast, a senior official said. While the Mangalore strategic storage is at in a SEZ that allows duty free import of oil, Padur caverns are in domestic tariff area (DTA) where oil can be imported by paying applicable import duty which currently is zero. But rules currently do not permit export of crude oil from either DTA or SEZ, the official said, adding that the Middle East national oil firms want India to amend rules so that they can store oil at the caverns and export it when they get customers or good price for it. The oil companies want to use the caverns on the west coast for commercial storage of oil which they can use to supply to refiners like Mangalore Refinery and Petrochemcials Ltd or to a third country. MRPL buys large quantity of crude oil from Iran and Kuwait. The official said models to lease out the storage were being worked out and the cabinet approval will be required for allowing export of crude oil from the storages.
ONGC Acquires Stake in Russia’s Vankor Oil Field Mumbai: Oil and Natural Gas Corp (ONGC) has paid just over USD 1.25 billion for a 15 per cent stake in Russian oil major Rosneft’s Vankor oil field, a source with direct knowledge of the deal said. ONGC expects to get more than 3 million tonnes of oil a year (between 66,000 and 70,000 barrels per day) from its holding in the huge Siberian oil field. The Vankor field produces about 442,000 barrels per day (bpd) of crude oil, four per cent of Russia’s overall crude oil production. After ONGC acquires stake in the field, its daily production would stand at about 66,000 bpd. www.oswindia.com
Mumbai: State-owned oil refiner and marketing company Indian Oil Corporation Limited (IOCL) will invest ` 1,75,000 crore over the next seven years to scale up its output to around 100 million tonnes from 65 million tonnes at present, said B Ashok, Chairman and Managing Director, IOCL. B Ashok, Chairman and Managing Director, IOCL
“In the next 5-7 years, all our existing refineries would need expansion and upgradation. We will also invest on supporting infrastructure and pipeline. Our total investment would be ` 1,75,000 crore,” Ashok said.
Besides this investment, the company also plans to build a refinery on the western coast of India and acquire assets abroad, he added. The ` 1,75,000-crore capex would be on all business, and includes primarily an investment if ` 50,000 crore on refineries, ` 15,000 crore on building pipelines, ` 35,000 crore for marketing, ` 35,000 crore into exploration and production, ` 30,000 crore into petrochemical projects, and ` 7,000 crore into gas.
India Seeks LNG from Qatar as per Current Price New Delhi: India has asked Qatar, the largest LNG supplier to the country, to cut in gas prices to match the 60 per cent slump in global rates in the last one year. India buys 7.5 million tonnes of LNG a year on a long-term 25 year contract, indexed to a moving average of crude oil price. The price of LNG from Qatar comes close to USD 13 per Kapil Dev Tripathi, Oil Secretary, MoPNG million British thermal unit as compared to the USD 6-7 rate at which it is available in the spot or current market. Petronet LNG Ltd, which has been buying LNG from Qatar on a long-term contract since 2004, is working to mitigate the impact of the higher prices under the long-term contracts so as to bring the LNG prices more in line with the current market conditions, said Kapil Dev Tripathi, Oil Secretary , who is also the Chairman of Petronet. He said that the prices of LNG in the spot or current markets have come down considerably in the past one year. While this is good for the consumers, this has also created a disparity in the prices of LNG under the long-term contracts vs the spot prices. The high price of LNG under the long-term contract has led to users in fertiliser and power industry finding it cheaper to use alternate fuels like naphtha and fuel oil, he adeed.
LNG Terminal to come up at Kakinada Port Kakinada: The Andhra Pradesh government has signed two pacts for setting up a floating LNG Terminal at Kakinada Deep Water Port in the state. The first MoU is the terminal company agreement between APGDC (Andhra Pradesh Gas Distribution Corporation), GDF SUEZ and Shell. It supports the development/ execution of the terminal, according to an official statement. The second MoU is the trading company agreement between GAIL, GDF SUEZ and Shell and covers both the sourcing of LNG and the marketing of the regasified LNG from the terminal. The Floating storage and Regasification Unit (FSRU) would be constructed with a cost of ` 1,800 crore initially.
Offshore World | 58 | August - September 2015
NEWS BP Supports Marketing, Pricing Freedom to Gas Fields PNGRB Invites Bids for CNG Retailing Licences Mumbai: BP Plc, Europe’s second-largest oil company, has made a case for extending the marketing and pricing freedom given to operators of marginal and small oil and gas fields to conventional fields like KG basin D6 block.
New Delhi: PNGRB, Oil regulator, has invited bids for giving CNG retailing licences in 34 cities, including Amethi in Uttar Pradesh, Ahmedabad in Gujarat and Bhatinda in Punjab. While it is yet to award licences for previous round of bidding that happened in June this year, the Petroleum and Natural Gas Regulatory Board (PNGRB) has invited bids for development of City Gas Distribution network in 34 cities.
Speaking at India-UK Business Council event, Sashi Mukundan, Head, BP India, welcomed the auction of 69 idle oil and gas fields of state-owned ONGC and Oil India to private firms on a new revenue sharing model and liberalised terms, including pricing and marketing freedom.
In a notice, PNGRB invited bids for cities in Madhya Pradesh, Gujarat, Maharashtra, Uttar Pradesh, Karnataka, Haryna, Punjab and Goa. In Gujarat, bids have been invited for allowing retailing of CNG to automobiles and piped cooking gas to households in Dahod, Patan, Banashantha, Amreli, Dahej-Vagra Taluka, Ahmedabad, Anand and Panchmahal.
“So what I would say is that it is a step in the right direction. We clearly are seeing the government (is) looking into overall picture and saying it is important to also get domestic oil and gas production increased,” he said.
Licences for Auraiya, Nainital, Baghpat, Amethi, Etawah, Saharanpur, Raebareli, Manipuri and Ramabai Nagar in Uttar Pradesh are also up for grab. Besides, licences for Bhiwani, Yamunagar, Rewari and Rohtak in Haryana, are on offer. Bids have also been invited for CGD licences for Jhabhua, Dhar, Rewa and Shahdol in Madhya Pradesh, Ahmadnagar in Maharashtra, Chitradurga and Gadag in Karnataka, Bhatinda, Rupnagar and Fatehgarh Sahib in Punjab and North Goa.
Sashi Mukundan, Head, BP India
BPCL to Raise Refining Capacity
S Varadarajan, Chairman and Managing Director, BPCL
Mumbai: As part of its overall ` 1 trillion capex plan under ‘Project Sankalp’ - primarily focusing on brownfield expansion, Bharat Petroleum Corp (BPCL) has set a target of increasing its refining capacity to 50 million tonne per annum from 30 mtpa now with an investment of ` 40,000 crore over the next five years, said S Varadarajan, Chairman and Managing Director, BPCL.
Of the ` 1-trillion capex, the refiner plans to spend ` 25,000 crore for upstream development, including developing its Brazilian and Mozambique oil and gas fields and buying more oil equity abroad. The remaining amount will go into marketing spends, which will see a lot of money being put into ramping up its non-fuel retail venture under the In & Out brand, Varadarajan said on the sidelines of the company’s AGM. While work on expanding its capacity in Kochi to 15 mt is on course, the Bina capacity will be increased from 6 mt to 15 mt and Numaligarh to 9 mt from 3 mt.
A K Srinivasan Appointed as Director Finance of ONGC Mumbai: A K Srinivasan has appointed as the Director (Finance) of Oil and Natural Gas Corp (ONGC), the nation’s biggest oil and gas explorer. Srinivasan, 57, took over following his presidential appointment to the ONGC Board of Directors,” a company press statement said. An IIM Bangalore alumnus, he was Executive Director (Finance) in ONGC before being elevated. Starting his professional journey with ONGC as graduate trainnee in 1983, he is an accomplished finance professional with experience of over 31 years in upstream oil and gas finance. A K Srinivasan, Director - Finance, ONGC
Iran Offers Gas at Cheaper Price, India to invest ` 1 lakh crore: Gadkari
Nitin Gadkari, Minister for Road Transport, Highways and Shipping
New Delhi: With the US and other western powers easing sanctions against Iran, the country has offered to supply natural gas at USD 2.95, which is less than half the rate at which India currently imports natural gas from the spot or current market, for a urea plant that India will set up at Chabahar port on the Persian Gulf, but New Delhi has demanded it at USD 1.5 per mmBtu rate.
India has been in talks with Tehran to set up a gas-based urea manufacturing plant at the Chabahar port, besides developing a gas discovery ONGC had made. The total investment in the projects will be around ` 1,00,000 crore, said Nitin Gadkari, Minister for Road Transport, Highways and Shipping. India, which imports around 8-9 million tonnes of the nitrogenous fertiliser, is negotiating for a price of USD 1.5 per mmBtu with the Persian Gulf nation in a move which if successful will see a significant decline in the country’s ` 80,000 crore subsidy for the soil nutrient, he addded.
Rajasthan Pacts with Petroleum Firms Jaipur: Rajasthan government has signed memoranda of understanding (MoUs) worth ` 30,530 crore with nine petroleum companies including Cairn India, GAIL and IOC for facilitating gas distribution, pipeline network and terminals for exploration and production activities. These include projects by Cairn India (` 2,500 crore), GSPL Gasnet India (` 5,000 crore), Focus Energy (` 3,730 crore), GAIL (India) (` 3,000 crore), Rajasthan State Gas Ltd (` 2,700 crores) and IOCL (` 2,300 crore) among others. The investment plan of the MoUs will be implemented over a period of three years from 2015, a statement said.
Offshore World | 59 | August - September 2015
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NEWS Jayanta Borgohain Appointed as Resident Chief PNGRB to End Supplier Monopoly in PNG Executive of OIL New Delhi: Piped gas consumers can expect market competition among suppliers Guwahati: Jayanta Kumar Borgohain will be the new resident chief executive at its field headquarters in Assam’s Duliajan of Oil India Ltd (OIL), said in a press release by the company.
Jayanta Borgohain, Resudent Chief Excusive, Oil India Ltd
Borgohain, 59, prior to his new assignment, had served as executive director (production) on his lateral transfer to the field headquarters Duliajan in January, this year.
He had earlier served as Head-Geoscience in the Rajasthan Project, where he was subsequently promoted as General Manager (Geoscience) and then as Executive Director (Rajasthan Project). Borgohain had joined Oil India as a Geologist in October 1981 after working as Junior Geologist in the Geological Survey of India for more than a year.
Asian Premium’ a Misconception: Saudi Oil Minister New Delhi: Saudi Arabian Oil Minister Ali al-Naimi, the soft-spoken oil czar and kingpin of Organisation of the Petroleum Exporting Countries (OPEC), said that the Saudi Arabia is ready for big-ticket investment in India and strongly disagreed with Indian counterpart Dharmendra Pradhan’s forcefully articulated assertion that countries like Saudi Arabia were unfairly charging an ‘Asian Ali al-Naimi, Oil Minister, premium’ by saying “There is no Asian premium. Saudi Arabia There is a misconception, complete misconception. What is the Asian premium? I have no idea.” Saudi Arabian Oil Minister Ali al-Naimi is ready for big-ticket investment in India and is unfazed by crude’s dramatic fall. The Organisation of the Petroleum Exporting Countries (OPEC) kingpin said the international oil cartel will expand its market share, suggesting that high-cost suppliers may crumble and prices will rise again. In a rare interview with an Indian publication, the usually reticent, soft-spoken oil czar also strongly disagreed with Indian counterpart Dharmendra Pradhan’s forcefully articulated assertion that countries like Saudi Arabia were unfairly charging an ‘Asian premium.’ Earlier, Pradhan told OPEC in Vienna that given the new market realities, there should be an Asian discount, not a premium, and OPEC needed to end the practice immediately. While Al-Naimi disagreed with Pradhan’s view, he expressed warmth and goodwill toward India and repeatedly articulated the eagerness of the world’s top oil exporter to ensure smooth energy supplies to the country, where it has regularly shipped numerous giant tankers to state-owned refineries and Reliance Industries’ Jamnagar plant, the world’s largest refining complex. “India is a big customer of ours. We are also committed to ensure supplies that are essential for India,” he said. Al-Naimi said Saudi Arabia was interested in investment in refining, marketing and petrochemicals in India, for which the kingdom has been in talks for some. “But (it) hasn’t gelled yet. Hopefully these talks will come to a good conclusion,” he said. www.oswindia.com
as the monopoly of city gas firms in Mumbai, Delhi and about 20 other cities is likely to end. The Petroleum and Natural Gas Regulatory Board (PNGRB), the downstream regulator, has initiated a consultative process to end the marketing monopoly of city gas distributors. In a public notice, the regulator has said it “intends to declare the end of exclusivity period” for several city gas distribution networks and invited suggestions and objections within three weeks from all stakeholders likely to be affected by the decision. Currently, distribution in each city, or geographical area, is a monopoly. Having won the bid in an open auction and made large investments in building gas network, the distributors have an exclusive right to use the infrastructure and market gas in the area. Under the law, however, the regulator has the authority to end this exclusivity following a consultative process where the current distributor must be heard. The regulator can fix the terms and conditions subject to which the pipeline or network may be declared as a common carrier or contract carrier while keeping in mind the key objectives of promoting competition among distributors and protecting consumer interest.
India Should Benchmark Gas Price to Similar Gas-deficient Nations: S&P New Delhi: Concerned the govt’s decision to cut natural gas prices by 18 per cent, Standard & Poor’s Ratings Services said that this will discourage oil exploration and production (E&P) companies from committing new capital expenditure. It further said that India should benchmark its natural gas prices to similar gas-deficient nations instead of using rates prevalent in gas-surplus geographies like the US and Canada. “Given India’s gas production deficit and emerging gas transport infrastructure, comparing prices in similar geographies will be more relevant, in our opinion,” it said in statement. Gas prices in India, S&P said, are lower than in its regional peers as well. Natural gas prices in Thailand and Indonesia average USD 8-10 per mmBtu. “We believe the government’s plan to stimulate private sector participation and bring in transparency in gas pricing by introducing formula-driven gas pricing is well intended. However falling hydrocarbon prices over the past one year have brought in uncertainty over the viability of exploration projects,” it said.
Essar Oil to Increase CBM Output Mumbai: Essar Oil aims to produce 1.2 million standard cubic meters per day of gas from the Raniganj coal bed methane (CBM) asset over the next few months and ultimately up to 3 million SCMD, said Prashant Ruia, Chairman, Essar Group. He said that we anticipate Prashant Ruia, completing our programme for development ahead Chairman, Essar Group of the May 2016 deadline. High quality infrastructure, including gas conditioning and compression stations, in-field pipelines and a last mile pipeline connectivity network is already in place.
Offshore World | 60 | August - September 2015
NEWS Global Oil Investments to be 20% less than 2014: Govt Thinks to Lower Cess on Output IEA Chief New Delhi: The government is examining a demand by oil companies to lower New Delhi: Low oil prices have triggered a record cut in exploration investment, which will put upwards pressure on global oil prices, said Fatih Birol, Head, International Energy Agency (IEA), at the G-20 energy ministers meeting in Istanbul, raising concerns for energy importers like India.
cess on output by switching from a fixed amount to ad valorem as the crash in crude prices has disproportionately increased the contribution of cess to their overall cost.
For India, which imports three-quarters of the oil it consumes, this would be bad news as the country has gained phenomenally after oil prices tumbled after June 2015, reducing the country’s import bill, lowering the subsidy burden of sate-run refiners and higher tax revenue for the government as it raised duties instead of fully passing on the price cut to consumers.
ONGC, the biggest operator of the producing blocks, has recently written to the oil ministry, seeking a change to ad valorem cess, or tax based on price of the product, a government official said.
Fatih Birol, Head, IEA
“As a result of this, we expect that next year, US oil production will fall by 400,000 barrels per day because of projects not making economic sense ... We may well seen soon upwards pressure in price,” he said. “I expect there will be adjustment of the market ... Sooner or later we will see upwards pressure,” he said.
LPG terminal to come up at Haldia Kolkata: State-run Bharat Petroleum Corporation Limited (BPCL) plans to build an import terminal at West Bengal’s Haldia, with an estimated cost of ` 1,200 crore. The terminal will help the company meet the rise in demand for liquefied petroleum gas (LPG). The company has acquired 35 acres for the purpose and plans to complete the project in three years. BPCL, in its annual report, said as LPG consumption in the country in the domestic segment continues to grow at seven per cent per annum, imports of LPG are increasing. Oil companies are required to make adequate infrastructure arrangements to handle the inc. “We infrastructure in the western and southern regions but there is a problem in the eastern region. The next market for us is Bihar, North-East, Jharkhand, Eastern Uttar Pradesh and West Bengal. So our import terminal will come up at Haldia,” said a BPCL official.
BPCL Eyes in Kenya Oil Block Mumbai: Encouraged by depressed crude prices, state-owned oil retailer Bharat Petroleum Corporation (BPCL) is in talks with UK-based Tullow Oil to buy a 10 per cent stake in its discovered oil block in the South Lokichar Basin in Kenya with an estimated one billion barrels of oil reserves, of which 600 million barrels may be recoverable. At current oil prices, the resource potential is valued at USD 27 billion and BPCL may have to shell out about USD 2.7 billion, depending upon the recoverable resource potential of the block, said sources in the know. The basin in Kenya shares many similar geological qualities with the Lake Albert Rift Basin in Uganda where Tul low Oil has discovered estimated gross recoverable resources of over 1.7 billion barrels of oil since the first exploration well in 2006.
If the government were to concede to the demand of oil producers, it would mainly benefit state producers as well as private firms.
At present, the output cess is fixed at Rs 4,500 per metric tonne, which looks disproportionately big as oil prices have fallen more than 60 per cent since June last year.
Natural Gas Prices Cut by 18% New Delhi: Following a global slide in the commodity prices, the government has reduced the price of the locally-produced natural gas by 18 per cent to USD 3.82 per unit for six months. This is the second six-monthly revision since November when the government introduced a gas price formula linking it with international prices following demands from the industry that the then prices were too low to incentivize producers. Following the introduction of the formula, the prices went up by a third but fell about 8 per cent in the first revision in April. Now, it has fallen further to $3.82 per million British thermal units (mmBtu) on gross calorific basis from USD 4.66 per mmBtu, applicable for the last six months. On net calorific basis, the gas price would be about USD 4.24 per mmBtu, marginally higher than the USD 4.2 per unit Reliance Industries and state-run Oil and Natural Gas Corporation (ONGC) received for gas before the formula was announced.
PSUs Investment to Raise in FY16 New Delhi: Capital expenditure by public sector undertakings (PSUs), including Indian Oil, Bharat Petroleum and PowerGrid, is expected to rise from ` 1.29 lakh crore in FY15 to ` 1.5 lakh crore this financial year. The 16 per cent increase follows a 23.5 per cent decline in FY15, compared with ` 1.69 lakh crore in FY14. Of the big-budget investments in FY16, PowerGrid is investing ` 22,500 crore in setting up new towers to evacuate electricity, while oil refiners Bharat Petroleum Corporation and IndianOil are investing ` 10,000 crore and ` 15,000 crore, respectively, in expanding capacity. Fresh investments have been planned across sectors. Coal India has planned capital expenditure of ` 5,990 crore, as well as an additional ` 4,150-crore investment on various infrastructure projects, for this financial year.In FY15, PSUs were sitting on a large cash pile, of ` 1.72 lakh crore. This, however, was lower than the figure of ` 1.9 lakh crore in FY14.
Offshore World | 61 | August - September 2015
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PRODUCTS
DUAL CARTRIDGE FILTER UNITS Sharplex Filters (India) Pvt Ltd offers dual vessel cartridge filter units exclusively designed for oil field filtration jobs. The dual cartridge units have a robust offshore proof frame work with lifting facilities, work platform, built-in ladder and safety railing. Safe and easy access to filter vessels allow for quick cartridge replacement. The complete unit is skid-mounted with piping, valve, pressure gauges, which makes it plug-and-play unit ready for operation. The framework is DNV Certified as per DNV 2.7-1 It finds application in completion fluids, water injection, produced water, oily water clean up, pre-filtration RO, etc. For details contact: Sharplex Filters (India) Pvt Ltd R-664 MIDC, TTC Indl Area Rabale, Navi Mumbai 400 701 Tel: 022-69409850, 69409860 E-mail: sharplex@vsnl.com Website: www.Sharplex.Com
AUTOMATIC POTENTIOMETRIC TITRATOR Model AT 38 C, which is specially designed for titration having high accuracy and reproducibility. It also has flexibility, good scope to select right parameters for right applications. It has four basic methods: Anticipatory Speed Dosing (ASD), Fixed End Point Dosing (FED), Step Volume Dosing (SVD) and PH Stat. AT 38 C is an advanced microcontroller-based user-friendly state-of-the-art product design with user-interactive software in dialogue mode for ease of operation with protection against invalid entries. GLP/FDA compliant, compliant to ASTM D664, D2896 and D4739 for TAN and TBN analysis for oil samples. Spectralab AT 38 C is fully automatic titrator for acid base, Redox, Complexometric, Precipitation titrations for simple to complex applications â&#x20AC;&#x201C; pH Stat, Enzymes. The titration system can give precise dosing with simultaneous monitoring and control of pH. Small volume vessel, facility to purge nitrogen, smooth stirring can make the system dependable for delicate enzymes. Record of time and volume dosed together with automatic calculations of enzyme activity and graphics for reaction kinetics. Some of the unique features are: single shift key to convert alpha to numeric, storing of last 10 results and corrosion-resistant fibre body housing. This instrument is useful in pharma, bio-chemistry, environmental and water pollutions, chemical industries, dyes and paints, petrochemicals, food and beverages, dairy industries, etc. For details contact: Spectralab Instruments Pvt Ltd W-446, Rabale MIDC Navi Mumbai 400701 Tel: 022- 27644030 to 34 E-mail: marketing@spectralab.biz www.oswindia.com
CLAMP-ON ULTRASONIC FLOWMETERS FLEXIM presents new generation of clamp-on ultrasonic flowmeters: the FLUXUS F/G 721. With its new hardware design and improved, powerful digital signal, it sets standards in terms of accuracy, reliability and versatility. FLUXUSÂŽ F/G721 offers non-intrusive flow measurement of virtually any kind of liquid or gas, from the smallest tubing to the largest penstock, independent of the pressure inside the pipe and over a very large temperature range. Highly sophisticated signal filters and substantially improved measurement algorithms together with the proven transducer technology and sturdy mountings make the FLUXUS F/G721 a state-of-the-art measuring solution even for the most challenging applications, such as flow measurement of liquids with gaseous of solid entrainments or even of wet gas. The meter adapts itself automatically to the respective measurement conditions and compensates for perturbations. Extremely fast measurement cycles allow for precise real time monitoring of highly dynamic processes. FLEXIM calibrates transmitters and transducers independently from each other, therefore ensuring highest accuracy in the field, regardless of the actual configuration of the measuring system. Explosion proof versions for operation in hazard areas (ATEX, IECEX Zone 2, FM Class I, Div. 2, EAC TR TS, Inmetro) are available. The FLUXUS F/G721 comes with all common communication protocols. HART, Modbus, Foundation Fieldbus, Profibus PA and BACnet allow bidirectional field communication, parameterisation and online diagnostics. Further special configurations guarantee optimal customisation to the individual application. The FLUXUS F/G721 is also one step ahead in terms of user guidance and diagnostics. It can easily be parameterised via USB. Its ethernet connectivity provides additional bidirectional communication capabilities. For details contact: FLEXIM GmbH Wolfener Str 36 12681, Berlin, Germany Tel: +49 30 936676 914 E-mail: ofoth@flexim.de www.flexim.com
DOUBLE CARTRIDGE SEALS Chem Seals Engg Pvt Ltd offers double cartridge seal Type CS 22 (D) with dual seal; cartridge; independent of direction of rotation; double pressure balanced; integrated pumping device; etc. Variants available for accentric screw pumps and gas lubricated versions. It finds application in waste and water technology, chemical industry, petrochemical, pharamcutical industry, food and beverage industry. For details contact: Chem Seals Engg Pvt Ltd 10 Sidhapura Indl Estate Gaiwadi Lane, Off S V Road Goregaon (W), Mumbai 400 062 Tel: 022-28712765, 28772286 E-mail: chemseals@chemseals.com
Offshore World | 62 | August - September 2015
AUTO BACKWASH FILTER The automatic self-cleaning auto backwash filters Type PRVC are capable of filtering any solid particles larger than the specified degree of filtration. The water or fluid enters the filter inlet nozzle and flows from inside of filter elements to outside. The dirt particles are collected on the inside of the filter elements. As the dirt level increases the differential pressure between the dirty and clean side increases and when the differential pressure reaches the preset value back-flushing starts automatically. In the manual mode back-flushing (cleaning cycle) is activated by means of adjustable timer. During the cleaning or back-flushing cycle two signals are issued by the control panel, one actuates the motor, the other bottom valve. Geared motor rotate the internal arm under each filter element at the same time valve opens causing a temperary reverse flow to accomplish the cleaning of dirty filter element and removal of accumulated dirt to drain through bottom valve. Most suitable for cooling tower water filtration (side stream filtration), river water filtration, process water filtration, sea water filtration, filtration before RO. It finds application in power station, process industry, steel industry, sewage treatment plant, environmental technology, mining, paper industry, machine to industry, etc. For details contact: Sharplex Filters (India) Pvt Ltd R-664 MIDC, TTC Indl Area Rabale, Navi Mumbai 400 701 Tel: 022-69409850, 69409860 E-mail: sharplex@vsnl.com Website: www.Sharplex.Com
ADJUSTABLE PRESSURE REGULATOR FOR HIGH FLOW-RATES Adjustable pressure regulators for high flow rates are regulators having wider outlet pressure range. The outlet pressure can be easily adjusted by rotating the knob of spring adjusting screw. By rotating the knob anticlockwise the outlet pressure is reduced and by rotating it clockwise the outlet pressure is increased. These regulators are mainly used as first stage pressure regulator in the LPG/ natural gas pressure reducing system. For details contact: Star Gas Service G-30, Express Tower, Azadpur Comml Complex New Delhi 110 033 Tel: 011-27682643, 27677160, 27670185 E-mail: stargasservice@gmail.com / rajesh@stargasservice.co.in
PRODUCTS PRESSURE VESSELS FOR LIQUIDS & GASES Innovative Engineers offers pressure vessels for liquids and gases using premium grade stainless steel sourced from known dealers. These SS pressure vessel can also be customized as per the customerâ&#x20AC;&#x2122;s requirement and presented at the best rates in the industry. These pressure vessels are widely used to store gases and liquids at the desired pressures. For details contact: Innovative Engineers S No: 821 / 2, Charholi B K B/h Maharashtra Warehousing Corpn, Nasik Road, Tal. Haveli Pune, Maharashtra 411 038 Tel: 020-20280144, 25388341
LPG SENSOR Conceptronics offers LPG sensor to the clients. The excellent technology used by this LPG Sensor is responsible for its accurate performance for long time period. Their experts have designed this in the precise manner and operate with the help of analogue signals. This is completely compatible and could be availed in excellent technical specifications. For details contact: Conceptronics 8B Raja Naba Krishna Street Kolkata 700 005 Tel: 033-25554650
GAS FLOW METER Heatech Engineers offers range of gas flow meters used to test the flow of the gas in various pipe equipment and other gas-oriented furnaces or industrial appliances. This meter is used in testing purposes, especially on various gas burners and gas equipment to ensure that the required amount of gas-pressure is obtained. For details contact: Heatech Engineers 514, Palaniyandavar Nagar, Ranga Layout 2 Backside Nallampalayam, Ganapathy Post Coimbatore, Tamil Nadu 641 006 Tel: 0422-6576521
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PROJECT UPDATE
Media Barter with gulfoilandgas.com
Projects Database Petrochemical Plants and Refineries
Major Projects in the Middle East, Africa and Caspian Sea
Project
Country
Value ($)
Status
Middle East Bahrain Deep Gas Exploration Project
Bahrain
Bahrain Field Development Project
Bahrain
Akri-Bijeel Exploration Block
Iraq
Execution
Atrush Block
Iraq
Execution
Taq Taq Oil Field Development
Iraq
Execution
Tawke Oil Field Development
Iraq
Gathering Center 29
Kuwait
Kuwait New Facilities
Kuwait
46,000,000,000
Execution
Block 60 Concession
Oman
2,500,000,000
Execution
Block 61 - Khazzan and Makarem Gas Fields Development
Oman
650,000,000
Execution
Oman Block 36
Oman
AI-Shaheen Offshore Field Development
Qatar
6,000,000,000
Execution
Bul Hanine Field Expansion
Qatar
11,000,000,000
Execution
Qatar North Gas Field Development
Qatar
20,000,000,000
Execution
Ghawar C02 Injection Project
Saudi Arabia
100,000,000
Execution
Khurais Light Crude Increment Program
Saudi Arabia
3,000,000,000
Execution
Saudi/Kuwaiti Onshore Partitioned Neutral Zone
Saudi Arabia
Execution
Turaif Shale Gas Project
Saudi Arabia
Execution
ADMA-OPCO Nasr Field Development
UAE
2,000,000,000
Execution
GASCO- Hail Sour Gas Field Development
UAE
1,000,000,000
Bidding
Sahil, Qusahwira & Mender Fields
UAE
1,000,000,000
Bidding
Zakum Central Super Complex Demothballing (ZCSC)
UAE
350,000,000
Execution
Africa
Country
Value ($)
Status
Angola - Block 20
Angola
Execution
Angola - Block 9
Angola
Execution
Lagia Oil Field
Egypt
Execution
North Port Fouad (Block 7)
Egypt
Execution
North Thekah Concession
Egypt
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Offshore World | 64 | August - September 2015
Execution 1,500,000,000
335,000,000
Execution
Execution Execution
Execution
163,000,000
Execution
PROJECT UPDATE
Rift Valley Block
Ethiopia
TEN Project
Ghana
Offshore Guinea Concession
Guinea
Execution
Block Cl-504
Ivory Coast
Execution
Block L25
Kenya
Bidding
Blocks L27 & L28
Kenya
Execution
Block LB-13
Liberia
85,000,000
Execution
Area B Block 4- Chinguetti Field Development
Mauritania
720,000,000
Execution
Block C19
Mauritania
Execution
Sidi Moktar Development Licence
Morocco
Execution
Tendrara Lakbir Licence
Morocco
Execution
Tenere Ouest Block
Niger
On Hold
Bonga Field
Nigeria
3,600,000,000
Execution
OPL 209 - Erha and Erha North Fields
Nigeria
3,500,000,000
Execution
Blocks 4/1B and 4/1C
Tanzania
Ksar Hadada Permit
Tunisia
Uganda First Petroleum Exploration Licensing Round
Uganda
Caspian Region
Country
Umid & Babek Fields
Azerbaijan
Azeri-Chirag-Gunashli (ACG) Project
Azerbaijan
Neft Dashlari (Dashlary) Field Development
Azerbaijan
Shah Deniz Stage 2 Development
Azerbaijan
28,000,000,000
Execution
Farzad-B (Forouz B) Offshore Gas Field - Farsi Block
Iran
5,000,000,000
Execution
Ramshir Oilfield
Iran
Execution
Serajeh Gas Storage Facility
Iran
Compeleted
South Pars Gas Project
Iran
16,000,000,000
Execution
South Pars Phases 15 & 16 Onshore & Offshore Development
Iran
2,900,000,000
Execution
South Pars Phases 20 & 21
Iran
6,000,000,000
Execution
Alakol Block (Kazakhstan Project)
Kazakhstan
35,000,000
Execution
Arman Field Development
Kazakhstan
BNG Contract Area
Kazakhstan
100,000,000
Execution
Karachaganak Project
Kazakhstan
15,000,000,000
Execution
North Buzachi Field
Kazakhstan
800,000,000
Execution
Tengiz Field
Kazakhstan
23,000,000,000
Execution
Licence 61
Russia
Execution
Lineynoye & West Lineynoye Oil Fields
Russia
Execution
Tungolskoye Oil Field
Russia
Execution
Vankor Oil and Gas Field Development
Russia
Execution
Vladimir Filanovsky Field
Russia
3,500,000,000
West Siberian (Exillon WS) Fields
Russia
Execution
Offshore World | 65 | August - September 2015
Execution 4,900,000,000
Execution
Study 14,500,000
Execution Bidding
Value ($)
Status Execution
20,000,000,000
Execution Execution
Execution
Execution
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Filter Concept Pvt Ltd
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FLIR Systems India Pvt Ltd
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Kirloskar Pneumatic Co Ltd
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KSB Pumps
Inside Cover II
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Larsen & Tourbo Ltd
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Leser India
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Nirmal Industrial Controls Pvt Ltd
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Sandvik Materials Technology
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Van Beest BV
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Vega India Level & Pressure Measurement Pvt Ltd
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EVENTS DIARY
ENERASIA 2015
ADIPEC 2015 Date: November 9-12, 2015 Venue: Abu Dhabi, UAE Event: The Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) is the world’s new meeting point for Oil & Gas professionals. The 30th Anniversary edition closed on the 13th November 2014 having attracted 1,868 exhibitors and 76,240 attendees from 112 countries during the 4 days of the event. ADIPEC provides an unrivalled global platform for Oil & Gas professionals to do business. The world-renowned conference programme within ADIPEC further educates and provides knowledge transfer and unparalleled network working opportunities. Located in the capital city of the United Arab Emirates, Abu Dhabi acts as a natural cross-roads between the east and the west and is fast becoming one of the world’s most influential energy hubs for the 21 st century.ADIPEC is supported by industry through its unique Executive Committee that convenes to shape the conference content of the event and is supported by many of the world’s leading National Oil Companies, International Oil Companies and key service providers. For details contact: dmg events Jhoanna Kilat T: 02 6970 529 E: JhoannaKilat@dmgeventsme.com
Date: 24-26 November 2015 Venue: Mumbai, India Event: The SPE Oil and Gas India Conference and Exhibition, taking place 24-26 November 2015 in Mumbai, will incorporate a high quality, multi-disciplinary technical conference with an exhibition showcasing state-of-the-art, fit-to-purpose and innovative technologies. OGIC is renowned for its comprehensive technical agendas and enticing exhibitions, hosting some of the most reputed companies in the oil and gas industry in India. An event dedicated to the Indian oil and gas industry has never been more fundamental. The oil and gas industry has been influential in stimulating India’s economic growth; the petroleum and natural gas sector constitutes approximately 15% of the country’s GDP. With the Indian economy expected to continue to demonstrate robust growth going forward, there is an emphasised need for wider and more intensive exploration for new finds, as well as more efficient and effective recovery. Previous editions of this event have been highly successful. Over 800 professionals attended OGIC in 2012, making OGIC the largest SPE event in India, providing excellent face-to-face opportunities to interact and network with regional professionals and experts of the highest esteem.
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ENERASIA provides robust platform to energy professionals to connect with new customers and suppliers and build their businesses. The event promises to provide update to all the stakeholders in energy sector including energy professionals, energy producers and dealers with the latest developments and technology. ENERASIA Exhibition participation is considered to be one of the most efficient, effective and successful marketing activities. It provides a platform to meet, interact and share ideas with potential clients in a quality time. It also provides an excellent opportunity to pull together leads, initiate sales, build and strengthen business relationships and much more. For details contact: 102, Shanti Arcade, 132’ Ring Road, Naranpura, Ahmedabad – 380 013, India Telefax: +91 79 27496737, 27494266 E-mail: booking@enerasia.in
SPE Oil and Gas India Conference and Exhibition
For details contact: Khushbu Rajwani Society of Petroleum Engineers Email: krajwani@spe.org
Date: 2-4 December, 2015 Venue: Gujarat, India Event: ENERASIA 2015 is the definitive Annual Global Energy Summit to be held in Ahmedabad on 11-12-13 December, 2015. The Event is supported by Energy & Petrochemicals Department, Government of Gujarat. Pandit Deendayal Petroleum University (PDPU), India’s world class University in energy education and research, is the Knowledge Partner of the event.
Oil & Gas World Expo 2016 Date: 3-5 March, 2016 Venue: Mumbai, India Event: Oil & Gas World Expo 2016, the 7 th International will organise by CHEMTECH Foundation, who has been a pioneer in connecting & conceiving international exhibitions & conferences since 1975. The international expo & conference is for aiming to connect, discuss and conclude views of leaders, policy makers, regulatory authorities, service providers of the Indian & Global hydrocarbon industry. Since its inception in 2004, the series of Oil & Gas World Expo has been a big affair of luminaries of global hydrocarbon industry that reflect India’s growing role in the global hydrocarbon industry. The expo will provide a platform to showcase services, technologies, innovations & current & future trends of the entire value chain of hydrocarbon industry ranging from upstream to midstream and downstream. For details contact: Jasubhai Media Pvt Ltd 3rd Floor, Taj Building, 210 D N Road, Fort Mumbai - 400001, Maharashtra, India Tel : 022-40373636 Fax : 022-40373535 Email: conferences@jasubhai.com Web: http://www.chemtech-online.com/
Offshore World | 68 | August - September 2015
RNI No. MAHENG/2003/13269. Date of Publication: 1st of every alternate month.