April - May 2015 Vol. 12 No. 3 ` 150
MIOGE Special 23 - 26 June 2015 Moscow, Russia
FOCUS: PIPELINES
OiL
World Expo 2016
International Exhibition & Conference March 3-5, 2016 | Mumbai, India
Fully Integrated Combustion Expertise, Onshore and Off. Why choose Zeeco for end-to-end combustion solutions? Let’s start with peace of mind, knowing that every ZEECO® flare and flare pilot is designed, manufactured, tested, and serviced by one company — not just metal fabricators but combustion experts who offer complete end-to-end capabilities. Then there’s our reputation for exceeding customer expectations with the aftermarket parts and support that have made us the industry’s preferred provider. Finally, whether your operations are on land or sea, Zeeco’s ultra-reliable VariJet flare delivers superior performance, even under the harshest conditions. And, our HSLF pilot is proven to withstand typhoon-force winds.
Global experience. Local expertise.
®
Visit zeeco.com/pilot to watch the HSLF Pilot test
Burners • Flares • Thermal Oxidisers • Vapour Control Aftermarket: Parts, Service & Engineered Solutions Explore our global locations at Zeeco.com/global
©Zeeco, Inc. 2015
Offshore World (India)_Apr2015.indd 1
Experience the Power of Zeeco. Zeeco India 701/702 Swastik Chambers Sion Trombay Road Chembur, Mumbai 400 071 India +91 (0) 22 66 245 300 zeeco_india@zeeco.com Zeeco, Inc. 22151 E 91st St. Broken Arrow, OK 74014 USA +1 918 258 8551 sales@zeeco.com 3/11/15 5:03 PM
Contents INTERVIEW “OIMPP – ‘It will be a known as GAS HIGHWAY, and will make India ‘No Dark Zone’” 12 VOL. 12 | NO. 3 | APRIL - MAY 2015 | MUMBAI ` 150 OFFSHORE WORLD R.NO. MAH ENG/ 2003/13269 Chairman Publisher & Printer Chief Executive Officer
EDITORIAL
Editor Features Writer Editorial Advisory Board Design Team Events Management Team Subscription Team Production Team
Jasu Shah Maulik Jasubhai Shah Hemant Shetty
– Dr Ajay Kumar, Chairman & Managing Director, Fox Petroleum Limited
GUEST COLUMN Paying Hefty Price for Being Transit Nation 16
Mittravinda Ranjan (mittra_ranjan@jasubhai.com) Rakesh Roy (rakesh_roy@jasubhai.com) D P Mishra, H K Krishnamurthy, N G Ashar, Prof M C Dwivedi Prasenjit Bhowmick, Arun Parab Abhijeet Mirashi Dilip Parab V Raj Misquitta (Head), Arun Madye
– Jenik Radon, Esq, Adjunct Professor, School of International and Public Affairs, Columbia University The Trans-Afghan Pipeline Initiative: No Pipe Dream 20
PLACE OF PUBLICATION: Jasubhai Media Private Limited
– Marc Grossman, Vice Chairman, The Cohen Group
210, Taj Building, 3rd Floor, Dr. D. N. Road, Fort, Mumbai 400 001. Tel: + 91 -22-4037 3636, Fax: +91-22-4037 3635
SALES
General Manager, Sales Amit Bhalerao (amit_bhalerao@jasubhai.com) Prashant Koshti (prashant_koshti@jasubhai.com)
NEWS FEATURES Management of LNG Projects & their Supply Chain - Globally & Domestically
MARKETING TEAM & OFFICES
Mumbai Godfrey Lobo / V Ramdas / Sabyasachi Das Taj Building, 3rd Floor, 210 D N Road, Fort, Mumbai 400 001 Tel: 91-022-40373636, Fax: 91-022-40373635 E-mail: godfrey_lobo@jasubhai.com, v_ramdas@jasubhai.com, sabyasachi_das@jasubhai.com Ahmedabad Vikas Kumar 64/A, Phase-1, GIDC Industrial Estate Vatva, Ahmedabad 382 445 Tel.: 91-079-49003636/627, Fax: 91-079-25831825 Mobile: 09712148258 E-mail: vikas_kumar@jasubhai.com Vadodara Pervindersingh Rawat 202 Concorde Bldg, Above Times of India Office R C Dutt Road, Alkapuri, Baroda 390 007 Telefax: 91-0265-2337189, Mobile: 09737114204 E-mail: pervinder_rawat@jasubhai.com Bengaluru Princebel M Mobile: 09444728035 E-mail: princebel_m@jasubhai.com Chennai / Coimbatore Princebel M / Yonack Pradeep 1-A, Jhaver Plaza, 1st floor, Nungambakkam high Road, Chennai 600 034 Tel: 044-43123936, Mobile: 09444728035, 09176963737 E-mail: princebel_m@jasubhai.com, yonack_pradeep@jasubhai.com Delhi Priyaranjan Singh / Suman Kumar 803 Chiranjeev Tower, Nehru Place, New Delhi 110 019 Tel: 011 2623 5332, Fax: 011 2642 7404 E-mail: pr_singh@jasubhai.com, suman_kumar@jasubhai.com Hyderabad Princebel M / Sunil Kulkarni Mobile: 09444728035, 09823410712 E-mail: princebel_m@jasubhai.com, sunil_kulkarni@jasubhai.com Kolkata E-mail: industrialmags@jasubhai.com Pune Sunil Kulkarni Suite 201, White House, 1482 Sadashiv Peth, Tilak Road, Pune 411 030 Tel: 91-020-24494572, Telefax: 91-020-24482059 Mobile: 09823410712 E-mail: sunil_kulkarni@jasubhai.com Subscription Rate (per year): Indian - ` 810/-; Foreign - US$ 120 Price of this copy: ` 150/The Publishers and the Editors do not necessarily individually or collectively identify themselves with all the views expressed in this journal. All rights reserved. Reproduction in whole or in part is strictly prohibited without written permission from the Publishers.
6
– Gaurav Moda & Mukesh Dhiman
FEATURES Pigging for Flow Assurance in Oil and Gas Pipelines 22 – Robert Davidson Regulatory Compliances & Legislations for Laying Oil and Gas Pipelines in India 26 – Santosh Pandey Importance of Oil & Gas Assets Management to Achieve Energy Security 28 – Capt S B Tyagi, FISM, CSC Cyber Security Vulnerability Assessment Reduces Risks to Gas Pipeline Operation 32 – Honeywell Process Solutions Energy Commodities Continues to Exhibit Mixed Price Movement 34 – Niteen M Jain & Nazir Ahmed Moulvi
PROJECT UPDATE
48
TRENDS
Jasubhai Media Private Limited
News
AN ISO 9001 : 2008 CERTIFIED COMPANY
Registered Office: 26, Maker Chambers VI, 2nd Floor, Nariman Point, Mumbai 400 021, INDIA Tel.: 022-40373737, Fax: 022-2287 0502 E-mail: sales@jasubhai.com
Products 50 Events Diary 55
Printed and published by Mr Maulik Jasubhai Shah on behalf of Jasubhai Media Pvt. Ltd., 26, Maker Chamber VI, Nariman Point, Mumbai 400 021 and printed at Varma Print, Pragati Industrial Estate, N M Joshi Marg, Lower Parel, Mumbai 400 011 and published from 3rd Floor, Taj Building, 210, Dr. D N Road, Fort, Mumbai 400 001. Editor: Ms. Mittravinda Ranjan, 26, Maker Chamber VI, Nariman Point, Mumbai 400 021.
www.oswindia.com
40
Bookself Offshore World | 4 | April - May 2015
56
Make GAS visible! FLIR GF-Series Thermal imaging cameras for gas detection and industrial applications
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
If you want to have more information about the FLIR GF-Series or any other FLIR thermal imaging camera please contact:
FLIR Systems India Pvt Ltd. 1111, D-Mall, Netaji Subhash Place, Pitampura, New Delhi – 110034. INDIA Tel : +91-11-4560 3555 Fax :+91-11-4721 2006 E-mail : flirindia@flir.com.hk
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
25/05/15 6:03 pm
news features
Management of LNG Projects & their Supply Chain Globally & D o m est ic a l l y In past few years, ‘Natural Gas’ has been preferred as a viable, efficient, benevolent alternative vis-à-vis ‘Oil’ due to the rising energy demand and environmental concerns. Gradual increase in demand-supply has given prominence to regional demand-supply imbalances, paving the way for trade of natural gas across the world. Trading natural gas from overseas is achieved by the medium of LNG terminals – be it Liquefaction and Regasification. However, LNG terminals being high capex investments, including encountered issues like escalations in labour costs, increased regulatory burden, complex contractor relationships, lack of coordination on common infrastructure and insufficient ‘big picture’ government engagement. The article details on ways of unlocking LNG projects successfully through optimising supply chain.
W
ith increasing energy demand and environmental concerns, natural gas has come across as a viable, efficient, benevolent alternative vis-à-vis oil and its demand-supply has risen steadily over the years. Gradual increase in demand-supply has given prominence to regional demand-supply imbalances, paving the way for trade of natural gas across the world. As trade becomes a necessity, so does the medium to achieve this i.e. LNG terminals. In fact, post 2008 oil pricing crisis and the Fukushima disaster, things have changed and LNG is now being considered as a viable energy source and resultantly there has been great interest in setting up LNG terminals (both liquefaction and Regas) across the world. However, LNG terminals being high capex investments; has also been marred with situations atypical of high capex projects i.e. cost over-runs. In fact recent LNG projects in Australia, have encountered budget overruns of up to 50 per cent 1 due to escalations in labour costs, increased regulatory burden, complex contractor relationships, lack of coordination on common infrastructure and insufficient ‘big picture’ government engagement.
Table 1: Typical characteristics of LNG projects Complicated Large Scale Projects
LNG projects are particularly massive undertakings with thousands of construction workers on-site during project implementation.
Set in Challenging geographies and locations
New wave of LNG projects are to a large extent in challenging locations – remote from traditional industry supply bases, often remote in absolute terms from any population centres, and sometimes in tough terrain that is at times environmentally or politically sensitive too. Other than mining and dams, few other such large construction projects are being undertaken outside industrialised areas, away from supplier and labour base(s).
Vertically Integrated Ventures
LNG projects can also be a vertically-integrated single venture encompassing the upstream supply (gas fields), a pipeline, the liquefaction plant and the marine terminal. This multiplicity of projects in a single contiguous location, puts stress on local workforces and suppliers, and possibly leads to sharp rise in costs.
Hydrocarbons supply management
Supply of hydrocarbons for processing, liquefaction, and/or regasification is at the heart of any LNG project, and is a critical part of the operational phase. Schedule of Hydrocarbons supply has to be in sync with operational availability and market dynamics
Access to Markets
Access to markets is a critical success factor for LNG projects. Downstream infrastructure and scheduling for supply of LNG has to match with glocal forces of demand-supply
www.oswindia.com
The above identified characteristics underlies that delivering new LNG projects successfully requires holistic project planning with strong governance and operating models working beyond silos to enhance linkages with project team through the supply chain while keeping technical issues central alongwith the stakeholder, regulatory and human resources considerations in mind while undertaking decision-making. A wider range of equity/financial partners, public-private partnerships and synergistic developments with other LNG projects in a region can help align interests and save costs. This is essential to achieve acceptable shareholder returns and win the confidence of LNG purchasers and project financiers. 2 What does managing an LNG project’s Supply Chain mean: Managing a supply chain means determining LNG projects get the materials and the people they need to be built and to operate efficiently, on time, in the right order and condition, safely and yet at a low price. Such management is essential to reduce costs to realistic levels, to achieve acceptable financial returns. The following are key actions that can be undertaken to improve supply chain performance. But, first of all, setting up of long-term goals to help ensure a resilient and responsible supply chain is essential: Table 2: 10 ways to improve the LNG supply chain HUMAN RESOURCES 1
Put human resources first— and treat supply chain excellence as a core skill.
Offshore World | 6 | April - May 2015
• Major projects have suffered from inexperienced workers, not properly prepared for scope required • Competition for employees • Short-term contractors: resulted in high turnover, lack of continuity, loss of corporate memory • Remote locations require investment in training centres, partnering with global institutions or academia New working practices and technologies Supply chain expertise is a core competence in itself. Companies should: • Develop competency matrices, plan how people will acquire credentials and qualifications • Retain experienced, aging workers via flexible options, different working environments for retirees • Accelerate learning and enhance productivity from afar e.g. virtual collaboration, simulations • Collaborate with government
TOP Distributors for Semikron / Jean Muller / ELECTRONICON (Germany) Bussmann FUSES, EATON-CUTLER HAMMER & MOELLER / BEI Encoders / CRYDOM S. S. R. in INDIA.
news features ORGANISATIONAL MODELS 2
3
4
5
CONSTRUCTION
Find and adapt • M i n i n g : v a s t e x p e r i e n c e i n o p e r a t i n g learning from large projects: understand local other industries w e a t h e r, s e t u p c a m p s , s t a f f m o t i v a t i o n • Retail/manufacturing: Just-in-time delivery may be suitable in some locations or learnings in scheduling and managing disruptions in transport industries • Logistics companies: drones, autonomous vehicles, sophisticated IT tools can enhance logistics with multiple suppliers or multiple project sites Collaborate with other operators
Rethink contractual relations with suppliers
Prepare for environmental, ethical, and local content supply chain requirements
• Emergence of clusters with numerous projects in close proximity; featuring other natural resources • Operators often unwilling to realise synergies: fear of added complexity, reduced control, reliance on competitors or contractual problems of cost allocation • Contractual supply chain is not fit-for-purpose: stems from failure to manage EPCMs and EPCs appropriately • Utilise a mix of contractual approaches • Relationships with suppliers • Assess suppliers on ability to deliver on time • Challenge with remote locations and nontraditional suppliers e.g. newer Asian shipyards • Adopt good practices: regular reviews, sharing lessons learned, focus on improving performance of client and supplier • Utilise incentives, contractual models, early engagement to identify challenges in delivery and constructability • Deliver robust, timely and cost-effective supply chains by providing local economic opportunities to win support from governments, communities and indigenous people • Help small local businesses understand their supply chain procedures and build the necessary skills to meet them • Pay attention to sustainable sourcing, human rights and labour conditions • Plan specific environment requirements in advance
Lessons for India: Rise in downstream infrastructure and increasing energy appetite of India has caused substantial rise in India’s natural gas demand. Currently, the demand for natural gas exceeds the domestic production, with price sensitive power and fertilizer sector accounting for ~60 per cent of total demand. In fact, the new energy policy focusses on increased usage of natural gas (20 per cent by 2030) in the primary energy mix from the current levels of ~9 per cent. To meet the growing demand and supply gaps, Indian O&G companies are aggressively looking for building new LNG capacities and expanding existing capacities. As per estimates by PNGRB (Petroleum and Natural Gas Regulatory Board), India’s current regasification capacity is expected become four times to grow up to 73 MMTPA by 2019-20 . However, current/considered LNG projects in India has been characterised with a host of issues as mentioned under: www.oswindia.com
6
Unlock the • Modularisation can reduce the total number of personpotential of hours’ work required in remote locations modularisation • Effec tive modularisation enables fast projec t installation and start-up and considers a reasonable maintainability over its target life
7
Consider a floating LNG
• FLNG can be used for offshore fields or moored nearshore for offshore fields; can simplify the supply chain at the project site • Puts more emphasis on off-site supply chain, with work at shipyard and other fabrication sites needing coordination • Once operating, FLNG vessel faces a more complex supply chain than onshore projects
8
Understand the local environment
• In environmentally-sensitive locations: restrictions on what material can be brought in, where it can be quarantined and stored: a challenge to modularised approaches • Tough climates can damage equipment when not stored properly • Weather poses challenges to supply chain schedules during construction and operation
OPERATIONS 9
Manage the transition to operations
• Resourcing the operations function early is key • Proactively plan the hand- over of elementar y documents to determine clarity, fit-for-purpose, vital contracts for services/spares are in place, warehousing, inventory and maintenance management is properly functional and surplus materials are dealt with • Smooth the transition via training and simulation that replicates the real plant with a 3-6 month handover period
10
Adapt a maintenance philosophy specific to the situation
• Depending on location, utilise different maintenance polices • Remote and insecure locations may require different maintenance policies and larger inventory levels
Lack of Integrated Infrastructure Planning: • Currently, India lacks a national pipeline grid which makes a big section of India (or market) in-accessible. Equitable development of pipeline across various regions remain a challenge. This has also made tie-in-connectivity an issue for RLNG terminals planned in remote locations. LNG projects on the east coast are facing a challenge of synchronising the LNG project development with existing/ planned pipelines. In fact, in India, though LNG project development remains de-licensed, but pipeline /CGD project development remains independent from the LNG project development and is licensed under competitive bidding regime. Non- completion/ delay in downstream pipeline infrastruc ture highlighting Lack of skills in enhancing routing and scheduling: • Delays in market accessibility has caused serious supply chain issues. In one
Offshore World | 8 | April - May 2015
Van Beest B.V. is manufacturer and supplier of wire rope- and chain accessories with branches in The Netherlands, Germany, France and USA. There are stock holding distributors of Van Beest products in over 80 countries worldwide. Manufacturer of Green Pin shackles: a genuine made in Holland product. S-7593
Registered trade marks ‘Green Pin’ and ‘Excel’
ADVERTISE TO EXPAND your reach through
Jasubhai Media Pvt. Ltd.
For Details Contact
Jasubhai Media Pvt. Ltd. Taj Building, 3rd Floor, 210 Dr D N Road, Fort, Mumbai - 400 001 Tel: 022-4037 3636, Fax: 022-4037 3635 Email: industrialmags@jasubhai.com
www.vanbeest.com
Member of Van Beest International
INSIGHT INTO THE PHARMACEUTICAL AND BIOTECH INDUSTRIES
sales@vanbeest.com
news features such case, delays in development of Kochi-Bengaluru Mangaluru pipeline (~45 Km pipeline was laid vs planned ~1200 Km pipeline due to land acquisition issues) as the Kochi LNG terminal got commissioned and happened to receive its first cargo. Lack of adequate market demand not only lead to erosion of investor’s wealth; but also lead to LNG boil off from the received cargo, underlying concerns over deep-rooted supply-chain issues. Delays in market development: • Though, the LNG sector goes forward with its large-scale investments, but the market development remains a concern. Regulations and policies auguring L-CNG growth (with projects like CNG stations on highways) , concepts like price pooling to improve LNG commerciality are still in a discussion mode and is creating concerns over viability and utilisation levels of planned LNG projects. Taxation problems with part cargo delivery to multiple destinations: • Existing zonal pipeline tariff regime in the current multiple pipeline networks and complex distorted tax systems (tax rate varies from 2-26per cent for same location depending on mode) results in severe artificial cost distortions for consumers, resulting in their continuation with environmentally harmful fuels. The ‘pancaking’ of tariffs across pipeline systems and segment results in higher cost of transportation of gas (~50per cent of the gas price at USD5.05/ MMBTU). Though, GST implementation may ease out the scenario; but as GST still remains under approval stage, pancaking of tariffs may continue to be a stumbling block for LNG project development in the country. Thus, the current situation makes it amply evident that on-going projects shall be associated with cost overruns and delayed breakeven points. Thus, it is imperative for project proponents to evaluate projects in a holistic manner. The government of India needs to adopt models where market accessibility and market development activities are being undertaken together to enhance silos of associated projects (pipelines, gas fields, demand centres development viz, power plants, fertilizers, refineries, CGD’s, etc.). In fact, today’s LNG projects need a wider range of equity/financial partners, public-private partnerships and synergistic developments with other projects in a region that can help align interests and save costs.
Effective use of supply chains, both during construction and operations is key to reducing costs, expediting ‘time to market’ and effecting early returns for LNG projects. state support for land acquisition, permits and clearances and determining right of way for pipelines and city gas investments • Streamlining the VAT and taxation framework for natural gas consumption and transport across the country • Promoting and incentivising the consumption of natural gas where sensible from a national interest perspective. International O&G companies: • A substantial business opportunity exists for LNG driven by India’s innate energy requirements coupled with lack of domestic resources to satiate its demand • Indian players are evaluating upstream opportunities in East Africa and Canada and can provide a first mover advantage in access to global gas assets. References 1) KPMG Thought leadership Series- KPMG GLOBAL ENERGY INSTITUTE -Unlocking the supply chain for LNG project success, Publication name: Unlocking the supply chain for LNG project success, Publication number: 131838-GPublication date: March 2015 2) blog.kpmgafrica.com
(The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG in India. The information contained herein is of a general nature and is not intended to address the specific circumstances of any particular individual or entity.)
Implications for various stakeholders The evolution of the Indian natural gas market has presented opportunities as well as challenges for various stakeholders Indian O&G companies: • Public sector companies need to diversify portfolios as well as help ensure efficiencies to remain competitive as the market opens up • Expanding strategic plays across the value chain- upstream, midstream and downstream may further allow them greater value addition, retention and control over margins and maintain market share • Private companies need to decide their strategic plays across the value chain given the obvious advantage that incumbent public sector players have in the market. Government initiatives: • The government should fast track investments in the natural gas space. E.g. www.oswindia.com
Offshore World | 10 | April - May 2015
Gaurav Moda Partner - Oil and Gas Practice KPMG India Email: gauravmoda@kpmg.com Mukesh Dhiman Associate Director KPMG India Email: mukeshdhiman@kpmg.com
interview
“OIMPP – ‘It will be a known as GAS HIGHWAY, and will make India ‘No Dark Zone’” India has been mulling several transnational gas pipelines – be it onshore or offshore – over the past two decades to meet the rising demand of natural gas - mainly from new power generation projects, fertiliser plants, and industrial users. But, till now none of the projects becomes a reality. Fox Petroleum, an associate company of Fox Petroleum FZC based in United Arab Emirates, has proposed to build the Oman-to-India Deepwater Multi Purpose Pipeline (OIMPP), a deepwater transnational, natural gas pipeline system to bring natural gas from Oman to India. Dr Ajay Kumar, Chairman & Managing Director, Fox Petroleum Limited, spoke exclusively to Rakesh Roy on the various aspects of the proposed project and how it is important to execute such kind of projects for India’s energy security point of view. In past, a lot of transnational pipeline projects like TAPI, IPI, etc have proposed but nothing has succeeded so far. According to you, how important it is to implement these kind transnational gas pipeline projects for India’s energy security point of view? Yes, You are right, these all were talked not seen; There was only hurdle to do it whosever has planned the “NOC” to go ahead on the subject; Besides that, it becomes the tool to settle the geopolitical score; Let me not confuse you, must explain in my capacity and knowledge, what Geopolitics is in this case; Geopolitics,” meant “the cram of how factors such as geography and economics influence politics and relations between nations.” Now it means politics among (not just between) nations and rivalries for international power. A geopolitically successful nation delivers on promises to allies and threats to rivals — or loses allies and strengthens rivals. And, earlier weapon was Crude Oil now an added weapon to settle the score is LNG between the Countries; the failure of some of them was due to the Geopolitics in the region; you will get LNG supply if you are in good books of the supplier country and the banking channels are open. The second most viable reason is – Security of the pipeline & regional instability has long haunted the Turkmenistan, Afghanistan, Pakistan, and India (TAPI) project, first conceived 18 years ago, and that remains the main obstacle to the pipeline becoming a reality.
As far as our country is concerned and the knowledge I have, I can say, if TAPI comes with full fledged role to supply LNG to gas hungry energy market of India, no doubt it will make India – ‘NO DARK ZONE’ as well as ‘FATTEN THE ECONOMY’. www.oswindia.com
Third most and very important reason is – which has not been discussed anytime anywhere, who will finance the project; One Country or the Consortium of Countries who are going to be benefitted with this pipeline; So, far I am sure, it was burden on one Country, that was the major cause for non implementation on the ground. As far as our country is concerned and the knowledge I have, I can say, if TAPI comes with full fledged role to supply LNG to gas hungry energy market of India, no doubt it will make India – “NO DARK ZONE” as well as “FATTEN THE ECONOMY”. As you know carrying LNG through pipeline is less costly then ships; If TAPI would
Offshore World | 12 | April - May 2015
interview
The Route Map of Oman India Multi Purpose Pipeline
have conceived, it would have given a reliability and stability in energy market – because then we could have been depend on – Turkmenistan’s 618.1 trillion cubic feet of proven natural gas reserves and as well as Iran’s 1,187.3 trillion cubic feet of proven natural gas reserves. Can you please apprise us the detail plans like funding, foresee project duration & cost, technology feature, consortium, sourcing & reaching points, landed cost of LNG, etc of the Oman–India Multi-Purpose Pipeline (OIMPP) proposed by Fox petroleum? We at Fox Petroleum Group, has plans to build the Oman –to- India Deepwater Multi Purpose Pipeline (OIMPP), a deepwater transnational, natural gas pipeline system that will cross the Arabian Sea. The OIMPP is anticipated to be the first of many in a corridor of pipelines that will form the final leg of a major energy supply route linking the two countries crossing the sea. Importing LNG is a rather costly process, but unavoidable because the sources of gas are far away. This cost can be avoided if gas is imported through pipelines and then transported across the country through existing and future-planned pipelines in India. In the last few years, deep sea gas pipeline technology has matured. Since India has serious security concerns with regard to pipeline projects over land, a deep sea pipeline is probably the most promising option. OIMPP will be 1609 km Aprox. The project intends to transport 8 tcft (trillion cubic feet) of natural gas to India over a period of 20 years. The pipeline is planned to be about aprox 1,300 km long in phase I and 300 km more to connect Mumbai, laid at a max depth of 3,400 to 3500 metres below the seabed. It will connect onshore the Middle East Compression Station near Oman with the receiving terminal near Porbander, Gujarat. The estimated cost of this project is USD 5-5.6 billion and can be executed in about max to max five years. Geographically, the Oman-India Pipeline is comparatively more feasible because India is close to the sources of natural gas in the Middle East and the undersea distance is less than 1,300 km if connected to Gujarat coast only. Another reason in favour of this project is the landed cost at Oman Point, which will be lesser by USD 1.5 to USD 2 per million BTU as compared to LNG imports. Furthermore, this pipeline could be linked to other natural gas sources in the Middle East and even to Turkmenistan and Iran if need be. A single uniformly sized pipeline from the Oman coast near Al Duqam near to Ra’s Al Jifan to the Indian coast at Porbander, Gujarat.
Considering the fact that known sources of natural gas in India till date is just 1.33 trillion cubic metres, India will need to source a major portion of natural gas supply from outside to meet the rising demand. The government will need to make planned efforts to find a lasting solution to the problem. The sooner the government takes a serious view on the proposal, the better it will be in the interest of the country to ensure its energy security. A boom in LNG demand and projects is taking shape in India. Demand for natural gas, mainly from new power generation projects, fertilizer plants, and industrial users, is projected to soar in the world’s second most populous nation. Its paltry domestic output of natural gas mandates that India must import natural gas to meet it expected explosive growth in demand for the fuel. While pipeline imports might seem a logical choice, this is a problematic alternative. Hence, Oman-India Multi-Purpose Pipeline can solve the energy demand in wholesale for next 25-30 Years; According to the US Energy Information Administration, this shortfall is expected to rise dramatically by 2020 and continue rising through 2030, when it will peak at 3.56 billion cubic feet per day. Final proposed route map of OIMPP as decided by our team and it is a dual sized, single, pipeline from the Oman coast near Ra’s Al Jifan will be linked to DUQAM onshore and from Al DUQAM to the Indian coast at Gujarat; You will see the Impact of the Line Oman–India – Multi-Purpose Pipeline on India – “It will be a known as GAS HIGHWAY, and will make India ‘No Dark Zone’”. For the implementation, we have undergone thru vast study, we have thought about four possible cases of laying the pipeline with calculation the CAPEX and OPEX of the project; But finally, still we are planning to go by our costlier plan i.e. Plan – A (Excluding the plan B, C, D); Plan A - High Pressure (Dense Phase):This 42 inch (1067 mm) OD pipeline is a single compressor station configuration. The pipeline inlet pressure is in the dense phase zone. After processing and passing through the first stage scrubber, the lean gas pressure is raised from 4.24 to 9.122 MPa (615 to 1323 Psia), then cooled to 37.8 ˚C (100 ˚F). The gas is compressed further in the second stage to 19.623 MPa (2846 Psia). The high pressure compressed gas is cooled back to 37.8 ˚C (100 ˚F) and then passed through a separator before entering the long pipeline. And the CAPEX of this will be : USD $ 5165.95 Million Dollar plus Power station cost for 105.7 MW + all other sub station cost : USD 238 Million Dollar along with ±5% of the project cost i.e USD 5.6 Billion Dollars Approx.
Offshore World | 13 | April - May 2015
www.oswindia.com
interview
In the last few years, deep sea gas pipeline technology has matured. Since India has serious security concerns with regard to pipeline projects over land, a deep sea pipeline is probably the most promising option.
We assure and ensure that project will never get shortage of finances and material to be used in this project. The project worth calculated is USD 5.6 Billion with ±5%; We have arrangements of funds to follow the project in timely manner and at targeted date; We will not expect any subsidy from the Government of The Sultanate of Oman as well as Government of the Republic of India for this project and we will abide and follow all norms as a general company rules; And, most likely, we will not take any loan from any Indian Private or Public Sector Banks; That means, it will be funded from our associate companies worldwide against their Oil Collateral and foreign lenders like banks have also agreed in principally to fund the project, which has been arranged with back up of funding one and back up funding two, that is same amount from two more sources against the reserves of petroleum products. How do you compare this deepwater pipeline with other onshore pipelines like TAPI & IPI? All pipeline projects, be it IPI / TAPI / OIMPP are technically feasible and commercially viable. However, IPI and TAPI have geo-political issues, as pipeline passes through Pakistan / Afghanistan. But in OIMPP, the advantages would be hassel free, safe and secure. For the success of the project, the two connecting countries have to give approval while Arabian Ocean and Fox Petroleum are the third parties to this project. While SAGE group had proposed the same kind of deepwater transnational pipeline from Middle East to India, how do you think the OIMPP is more feasible option? We have nothing to say what others are doing. It will be great if we can have more Pipelines in Arabian Ocean to Connect Oman and India; But, we are going to use our HEAD and HUT (i.e. Brain and Life’s all secured and unsecured assets) to complete this project; This makes it different from other’s; I want to do it, because I wanted to be named THE NUMBER ONE LOVER OF MY NATION; I love my India and YOU=The Indians, that has forced me to think about it; What is the technology aspect of this deep-sea pipeline project, while India has lack the ability of deepwater pipeline technology? We are going to use – Foreign Companies for this – like we have planned to give contract of supply to European & Chinese Companies for Pipe supply. We have a www.oswindia.com
plan to use Two Onshore Pipeline Companies for two coasts, two Offshore for both side shelf level laying and three in deep water, and a separate company will be used for power and compression station. So, now you can say we will deliver the world if given an opportunity – THE GAS HIGHWAY. India is now more serious on transnational pipeline projects whether it is onshore or offshore. What kind of response so far from the government towards the OIMPP? We have visited the Petroleum Ministry and we have been said work hard; But we have written letter to Petroleum Minister of Oman and met Ambassador of Oman in India and updated the status and our plan; I am learning the art of living well and the art of dying well under pressure of going to office to office; But I know, the greater the difficulty, the more the glory in surmounting it; Oh Sorry, I am behaving like a poet, but it is due to my love towards my Country and for this project; Hope the Government will also reciprocate the same love to my love. How will the proposed pipeline project open doors for India in sourcing crude or natural gas from other gas-rich producers of the Gulf, Middle East and potentially Central Asia? India can tap at least permanent solution of gas; that much I can say now. The cost to transport for crude oil or petroleum products by pipeline is a fraction of the cost of other modes of transportation. The cost to crude oil by ship or rail is generally USD 10 to USD 15 per barrel versus under USD 5 per barrel by pipeline. LNG Transportation cost fixed USD 1.5/MMBtu that is too cheap to control the price; as per Indian requirement of USD 8.0/MMBtu; We will transport, other petroleum gases from the same pipeline as per calendar booking of the year; Project will have 8 Contractors working at one time; For Onshore Two Contractors; For SHELF level Offshore Two Contractors; Two Contractors for Deepwater Pipeline laying; And One for Onshore Project Management Consultant and One for Offshore Project Management Consultant; And one for Power and Compression Station in addition; Oman Government is enthusiastic as per the sourced information, but waiting for the approval of Government of India for a ‘YES’. No matter what conditions I encounter in life, my right is only to the works--not to the fruits thereof. I should not be impelled to act for selfish reasons, nor should I be attached to inaction. I mean efforts is my motto, result will be a collection for ‘Juniors’.
Offshore World | 14 | April - May 2015
612
guest column
Paying Hefty Price for Being Transit Nation Jenik Radon, Esq Adjunct Professor School of International and Public Affairs Columbia University
Energy is an integral part of human being. Energy in the form of oil and gas is carried through the means of pipelines from producing nation to its destination ultimately the market. Transit nations from where pipelines are passing have to bear the burnt of environment pollution, challenges the residents who are dislocated from their places to make way for the construction of these pipelines. The author says that the cost transit nations pay is much more than they earn from laying off of these cross-border pipelines.
P
ipelines are the roadways of the oil and gas industries. Pipelines deliver needed and wanted energy from producing areas, including from places not commonly heard of, whether from the fields of Hassi R’mel or Kirkuk, to industry, to homes and, simply put, to the market, both domestic (national) and international markets. But, internationally, until Russia, in a 2005-06 headline grabbing fight with Ukraine over transit fees and increased gas prices, stopped sending gas through pipelines in the Ukraine to the nations of Europe, no one really paid much attention to pipelines or transit nations, let alone their concerns or what it meant to be a transit nation. The continued operation of pipelines, even across borders, was taken for granted, as given, and potential international political problems and social challenges were until then ignored.
the rest of the world, have achieved high GNPs per capita and continue to save their substantial earnings from the sale of oil and gas in sovereign wealth funds, which will provide financial support for future generations. But other resource rich, and comparably well endowed, nations, such as Russia, Azerbaijan, Algeria and Iraq, seeking to achieve similar economic success, are dependent, at least in part, on pipelines, mostly gas pipelines, that have to cross the transit nations of Ukraine, Georgia, Morocco and Turkey, respectively, in order to bring their oil and gas to the world markets. This requires the negotiation of complex intergovernment agreements between producing nations and transit nations, as well as host government agreements between energy companies and transit nations, to establish the transit fees to be paid to them as well as the other terms of transit.
As is illustrated, for example, by the freedom of transit principle set forth in, and the other provisions of, the Energy Charter Treaty, adopted in 1994, cross border or transit pipelines are there to transport an uninterrupted flow of energy in order to satisfy the needs and demands of consumers for energy, as well as that of the producers of energy. No one can argue with the fundamentals of the principle of freedom of transit. However, the Treaty also calls for costbased transit tariff pricing. The conclusion from that is clear: transit tariffs, the fees charged by nations through which a pipeline crosses, are not to be guided by the free market principle of profit-making, notwithstanding, among other things, that transit nations will bear the cost of, and the stress caused by, the dislocation of residents whose property has to be used for the construction of a pipeline, the damage from any environmental pollution, and the challenges of other risks, such as security, in order to make possible the transport of oil and gas or energy from producing nations to consuming nations.
But in the course of such negotiation, an age-old truism is too readily forgotten by the producing nations, namely that one is only as strong as the weakest link, which, in this context, potentially means the transit nation.
Energy ignites the imagination as well the emotions, especially economic and political emotions. The reason is simple. Energy is a necessary good. Energy, as we so well know, literally lights up our homes, makes it possible for students to read at school and at home, and drives our factories. Energy powers such megacities as New York, London and Tokyo, which are so vibrant at night and therefore brightly so lit that they can be seen from space. The world simply cannot do without energy; and since we cannot do without it, we demand it and we expect its flow to be uninterrupted. Moreover, international energy companies (IOCs) are the darlings of Wall Street and the finance world with Exxon/Mobil, Shell and other IOCs composing six to seven of the top 10 firms in the world by revenue and also by profits. They are clearly handsomely rewarded for producing energy and bringing it to market from literally around the world. Energy rich nations, such as Norway, Saudi Arabia and Qatar, which have direct access to the energy consuming markets of Europe and www.oswindia.com
The logical consequence or implication of that saying is that nations which voluntarily open their borders for the construction and operation of transit pipelines need to benefit and be compensated for their contribution. In market terms, these nations need to make a profit as they provide the use of a valuable asset. In real estate lingo, transit nations in fact have three very valuable assets: location, location and location. They serve as the indispensible link in the supply chain between energy rich nations, especially those that are effectively landlocked, and the world’s energy market. But surprisingly, the critical location of transit nations has not translated into significant economic rewards or benefits for them. In the case of the BTC (Baku-Tbilisi-Ceyhan) oil pipeline, for example, Georgia receives on average a maximum of USD 62 million per annum for the transit rights. The South Caucasus gas pipeline, also known as the Baku–Tbilisi– Erzurum Pipeline, pays Georgia 5 per cent of the shipped volume. For having the Maghreb– Europe Gas Pipeline cross its territory from Algeria to Spain, Morocco receives a 7 per cent transit fee which is paid in gas. But if significant fees are not the reward for the transit nations, what is? Energy pipelines it is said, especially by the international (consuming) community, serve and benefit the common good, as the pipelines are the enablers for the supply of power and light, albeit to the consuming nations, and therefore serve as motors of and for the economy, albeit again their economy. This is certainly true at a general level.
Offshore World | 16 | April - May 2015
guest column If the power of eminent domain is not available, directly or indirectly, to a company to secure necessary rights of way for the construction of a pipeline, it is argued that private proper t y owners could effectively thwart the pipeline’s construction and thereby, among other things, hinder the achievement of energy security for the US, notwithstanding that the oil, as noted below is to be sold in the open market, which includes, but is not limited to, the United States. Such owners could simply refuse to make their land available for the pipeline, irrespective of the amount of compensation offered. This could theoretically make the construction of the pipeline impossible, and, in any event, more expensive and certainly delay or extend the time necessary for construction.
Still, when pipelines stretch across borders, a number of questions need to be addressed, and answered, as it is not obvious that the common good is universal, a good shared by all: what constitutes the common good; what is the cost of achieving the common good; who bears the cost of such achievement; who bears the cost of maintaining this achievement; and who, in fact, actually benefit from these pipelines and who does not. The list of questions goes on. Reasonable people can reasonably differ on the answers, but reasonable people cannot, and should not, avoid asking these questions. And they need answers which are openly discussed and debated. Even in the United States, which does not historically view itself as a transit nation, people are now asking those questions in respect of the prospective and controversial Keystone XL pipeline project which is to designed to bring tar sand oil from Alberta, Canada to refineries in Houston, Texas. The Keystone project, given the controversy that surrounds it, still awaits US government approval for the pipeline to cross the US - Canadian border. Some Texans, for example, are asking whether a one -time, one - off, payment for the taking/ use of their property for the Keystone pipeline is adequate compensation, especially taking into the consideration the fact that the pipeline will remain a permanent obstruction or fixture on their property and pose a permanent environmental threat as pipelines are known to fracture and therefore spill. Is a one-time payment, as distinguished from a share of future profits from the project, adequate compensation for their sacrifice? Some are also questioning, and going to court to support their questioning, whether the power of eminent domain, which is traditionally associated with the taking of property for a generally and traditionally accepted public purpose, such as a school, a hospital or police station, should be used to further or support profit making economic or commercial activities such as the Keystone pipeline project. The pipe line will be owned by TransCanada Corporation, which has USD 48 billion dollars in assets and is registered on the Toronto and New York stock exchanges. Privately owned refineries in Houston will refine and market the shipped or transported oil. In other words, is a profit-making activity, even if it brings employment for some, a public purpose? Lawsuits questioning whether such a pipeline should be considered a common carrier, such as a telephone line, and have the statutory support of eminent domain, have been filed in the state of Texas.
Many others are asking whether the risk of environmental contamination or pollution from an accidental oil spill, or a negligent one, is worth any compensation, not to mention the intense controversy concerning the potential environmental impact of the development of the Canadian tar sand oil fields themselves, which is not even within the jurisdiction of the United States to determine. Others have raised the issue of whether permitting the export of the refined tar sands oil from Houston refineries is in the US national interest since permitting such export will not improve US energy security. In short, the overriding question that is being asked is whether it is in the national interest of the US to be simply a transit nation for Canadian tar sands oil, ironically without even charging transit fees? The specific question is what benefits are there in fact for the US and also for its citizens who are directly impacted by the construction of the pipeline? Interestingly, the questions being raised by civil society in the US are in essence the same that every transit nation must address in considering a transit pipeline. What are the benefits for the nation, as well as for the people impacted by a transit pipeline, and what are the costs, which, after construction, invariably could be environmental costs, especially if there is ever a spill or explosion? In the case of Georgia, the BTC pipeline is constructed through a number of earthquake faults and skirts the Borjomi fresh water basin of Georgia. The threat of environmental damage is therefore ever present. In addition to environmental damage, there are other potential costs for transit nations. People normally have to be relocated to permit pipeline construction with the consequence that their lives will have to be disrupted in order to achieve what has been politically declared a greater national good. What is fair and adequate compensation for people who have to be relocated or otherwise impacted, which question is exacerbated when the transported natural resource is not even a domestic resource? Moreover, the energy pipelines in many parts of the world have become a magnet for terrorist action. This is true, for example, in the case of the IraqTurkish pipelines. Also when a pipeline from Iraq to Turkey is bombed, Turkey must endure negative press from around the world questioning its security practices. The cost of security, of protecting, these pipelines, must therefore be taken into account and factored in, not to mention the cost in manpower and of lost and disrupted lives. The reward for Turkey in having such pipelines has clearly been political. Turkey is achieving its strategic vision by becoming an important energy hub for Europe, which may yet be Turkey’s ticket to EU membership, assuming, of course, that
Offshore World | 17 | April - May 2015
www.oswindia.com
guest column Turkey still wants membership. Also Turkey has benefited commercially and economically from those pipelines, as well as the prospective pipelines from Kurdistan region of Iraq, as Turkey has successes in securing energy for its industries and developing a refinery industry.
thereby avoid the devastating 2008 war. Although Nigeria is not a pipeline transit nation, it does stand as an example of the principle that national energy extraction and development, as well as the construction and maintenance of the ancillary pipelines, require societal acceptance, a social license, to operate.
The general assessment, by applying a cost-benefit approach, is that Turkey benefits politically and economically from being a pipeline transit nation. But such success has only been achieved as a result of a well thought out strategy, over time and though perseverance. And such success was never assured and has not come without cost.
In other words, a society, including especially the impacted communities, must benefit from the sacrifices they are asked to make for a greater public or common good. They must also feel they have “ownership,� in the philosophical sense, of the projects that impact them. The concept of ownership of course needs clear articulation, even more so in the case, where the overwhelming benefits of a project, such as a transit pipeline, are outside of one’s own country.
It is important to realise, acknowledge and respect the fact that a transit nation bears costs, and often considerable costs, by accommodating the construction and the operation of a transit pipeline within its borders. Another nation, the producing nation, will earn the preponderance of the profits in the development of its oil and/or gas fields. If the transit nation as a whole, and its citizens who are impacted by the pipeline, do not adequately, and one can even say handsomely, benefit, the transit nation will potentially be a weak link in the energy supply chain. One can only speculate if Georgia had received pipeline transit fees in amounts that could significantly support the cost of government operations and contribute to powering its economy, would Georgia have been incentivised to focus more on diplomacy in settling its disagreements with Russia and
Transit nations can only successfully function as such if they, and their citizens, become better off for, benefit by, being a transit nation. Transit nations should not be viewed as merely a means to an end, the closing of a link in the energy supply chain. Transit nations, and their citizens, should be recognised for their sacrifices, respected for their contribution, and both acknowledged and accepted as integral partners in the energy supply chain. A sustainable deal, which in the case of a pipeline needs to last a lifetime, requires such benefit as well as such respect.
(This article was published in the previous issue of Offshore World)
ADVERTISE TO EXPAND your reach through
For Details Contact
Jasubhai Media Pvt. Ltd. Taj Building, 3rd Floor, 210 Dr D N Road, Fort, Mumbai - 400 001 Tel: 022-4037 3636, Fax: 022-4037 3635 Email: industrialmags@jasubhai.com www.oswindia.com
Offshore World | 18 | April - May 2015
guest column
The Trans-Afghan Pipeline Initiative: No Pipe Dream Despite a stream of bad news around the global political arena, development plans are underway even among nations with adversarial relations. This past summer, a step forward was taken for the realisation of the Trans-Afghan natural gas pipeline project, Afghanistan, Turkmenistan, Pakistan and India signed an agreement in early July to move forward with a 1,700-kilometer natural gas pipeline. “This USD 7.5 billion project has the potential to catalyse investment and trading opportunities in a region sorely in need of both,” says Marc Grossman, Vice Chairman, The Cohen Group, and the former US Special Representative for Afghanistan and Pakistan. He further adds: The four countries and the Asian Development Bank now have a clearer path forward on creating the conditions for a successful project.
A
n avalanche of bad news has engulfed the world – murder in the skies over Ukraine, renewed war between Israel and Hamas, and a terrorist resurgence in Iraq. Amid the global chaos, one positive development got little attention – a development that could help advance peace between India and Pakistan, improve chances for reconciliation in Afghanistan, undermine energy blackmail by Russia, and keep economic pressure on Iran while nuclear negotiations continue. On July 8, 2014, Turkmenistan, Afghanistan, Pakistan and India signed an agreement in Ashgabat to move forward with a 1,078-mile natural gas pipeline. This USD 7.5 billion project known as TAPI, or the Trans-Afghan Pipeline Initiative, has the potential to catalyse investment and trading opportunities in a region sorely in need of both by bringing gas from Turkmenistan through Afghanistan and Pakistan into India. The project will have to overcome many hurdles but TAPI could also have serious geopolitical implications. Consider the benefits a completed pipeline could bring: First, TAPI has the potential to promote more positive political and economic interaction between Afghanistan and Pakistan. Tensions between Kabul and Islamabad over trade and terrorism are deep, but TAPI would give each side something larger to gain by providing an avenue for mutually-beneficial economic cooperation.
of the region is dependent on Moscow for energy. Turkmenistan has the world’s sixth largest reserves of natural gas. With further energy infrastructure investments, the country could become a major energy exporter. The more natural gas that gets into world markets, the less power Moscow and Gazprom have to coerce America’s allies and friends. Finally, TAPI would create a viable alternative to the proposed Iran-Pakistan pipeline, which could help western negotiators maintain the economic pressure on Tehran to end its nuclear weapons’ programme. With TAPI, Pakistan can find a way to meet some of its energy needs without providing Tehran with an economic windfall and undermining western economic sanctions. For these and other reasons, Washington has been a strong advocate for TAPI. The project is a key foundation for the New Silk Road initiative announced by then-Secretary of State Hillary Clinton in India in July 2011. The idea is to use this historic trade route in a modern way: to connect the vibrant economies in Central Asia and India’s thriving markets with Afghanistan and Pakistan in the center, where they could both benefit first from transit trade and ultimately from direct investments. TAPI would play a critical role in such an effort to support economic integration in the region – and by extension, US political and security objectives in the area. With TAPI as its core, is about acting on diverse opportunities and challenges simultaneously.
Second, TAPI could help improve relations between India and Pakistan and reduce chances of armed conflict between these two nuclear powers. Joint support for TAPI could – along with enhanced trade through most favored nation status and liberalised visa regimes for business people – support an effort by Indian Prime Minister Narendra Modi and Pakistani Prime Minister Nawaz Sharif to enhance political ties through commercial opportunities.
Under the current arrangement, Pakistan and India will each receive 42 per cent of the gas and Afghanistan 16 per cent. Today’s estimates envisage a construction period of four to five years, given the long delays the project has experienced so far. With more hard work yet to be done to move TAPI from concept to concrete, some observers expect the project to take longer to complete and the bill to rise to USD 10 billion.
Third, TAPI has the potential to contribute to reconciliation in Afghanistan by creating economic opportunity for the Afghan people. TAPI could change the calculations of at least some Afghan Taliban fighters, who might see it as a way to give up guns for jobs.
As part of the July 8 accord, the four TAPI-partner countries have asked the Asian Development Bank – ADB has acted as the TAPI Secretariat since 2002 – to establish a lead consortium by November 2014 so that construction work can start as soon as possible. The recent development says that the four member nations will be met on February 11-12, 2015, in Islamabad to finalise the consortium partner for executing the project. The ADB’s role will be crucial to getting the project financed with as much private sector money as possible.
Fourth, TAPI could undermine Russian President Vladimir Putin’s ability to blackmail his neighbours by threatening their energy supplies. Today, much www.oswindia.com
Offshore World | 20 | April - May 2015
guest column
Dotted line shows proposed pipeline to cross Turkmenistan, Afghanistan, Pakistan into India (Source: 2008 map, Canadian Centre for Policy Alternatives)
The Bloch Factor While the TAPI pipeline has the potential to transform the entire region, the project does face some major hurdles. For example, although Total, Chevron and ExxonMobil have shown interest in financing and running the pipeline project and have been shortlisted for the contract, no company or consortium has stepped forward to take the necessary lead to manage the finance, design, construction and operation of the pipeline. Crucially, the energy companies with the capacity to support TAPI have told the government in Ashgabat that they will require exploration rights in Turkmenistan’s onshore gas fields, mainly Dauletabad, to make the project economically attractive. Turkmenistan so far will only consent to offshore exploration. This impasse has made any deal impossible. Another major challenge facing construction is the security and political situation in Afghanistan. Kabul views the pipeline as a significant revenue stream as well as a source of energy as the country builds its economy. Sediq Seddiqi, Spokesman for the Ministry of Interior Affairs has said that Afghan security forces are fully motivated to provide security for the project, and Afghan authorities have promised to deploy 5,000 to 7,000 security personnel to safeguard the route. But the ongoing turmoil in Afghanistan by fierce Taliban attacks across the country and lingering uncertainty about US and allied military support to the country are all cause for hesitation in both government and private sector offices.
So how can TAPI succeed? Energy expert David Goldwyn offers the reminder that there are three parts to any successful gas pipeline project: a seller committed to making enough gas economically available for a viable project; a buyer ready to commit to longterm contracts; and a builder, with the right financing to create the physical project. The July 8 accord is an important step in aligning the interests of Turkmenistan, Afghanistan, Pakistan and India. The four countries and the Asian Development Bank now have a clearer path forward on creating the conditions for a successful project. There is still a long, slow road to travel before gas moves from Turkmenistan through Afghanistan and Pakistan to India, and the next phase is to convince the private sector that the project is commercially sound and technically feasible. Much work remains. But in the midst of many other seemingly intractable challenges the world has faced the last summer, the agreement reached in Ashgabat on taking the next step toward the TAPI pipeline is an achievement worth acknowledging.
(This article was published in the previous issue of Offshore World)
Offshore World | 21 | April - May 2015
www.oswindia.com
Features Pipeline Pigging
Pigging for Flow Assurance in Oil and Gas Pipelines Oil & gas pipelines – whether for onshore or offshore, for feedstock or product - need to be regular maintenance and inspection to remove debris, which is come from the transported fluids themselves while others can be caused by chemical reactions between fluids and system metallurgy or through a combination of different fluids in transport lines, for insuring the pipeline integrity and flow assurance. Maintaining or increasing flow, pipeline pigs are necessity at regular intervals through the line to remove debris before it can become an issue. The article explains on various pigging solutions for the future strategies for pipeline cleaning.
M
any pipeline articles use clichés alluding to the importance of pipeline infrastructure to convey production fluids and finished products to market. Imagery related to blood flowing through arteries has been used to convey the vital role pipelines play in the global energy market. Recent world events have further re-enforced this notion, as political and economic climates are at the very forefront of shaping the infrastructure of the future, with high profile projects shelved and new partnerships forged between governments relating to developing and expanding pipeline systems. As the price of oil remains depressed worldwide, pressure increases on existing pipeline systems to ensure delivery of fluids in the most cost effective and dependable means possible. Whether lines are onshore or offshore, feedstock or product, maintaining or expanding capabilities is increasingly important, with the mantra ‘more for less’ but also ‘for longer’ often cited. Existing pipelines are having their design lives extended and others are having their uses changed (e.g., oil production to water injection) to drive the economics of recovery in the proper direction. Mature systems are producing fluids with properties differing from those for which they were designed, while new lines are becoming longer, deeper, higher pressure, and more exotic in material than ever before. Added to this mix are a global drive on pipeline regulation and the need for regular inspection, which have become the norm. All of these factors – and more – have created new challenges for pipeline operators and those service companies associated with pipeline integrity and flow assurance. Maintaining or increasing flow, cleaning for inspection, and coping with ‘unpiggable’ systems are everyday issues. Typical deposits found inside operational oil and gas pipelines include – but are not limited to – salts and scales, corrosion products (including ‘black powder’), paraffin wax, asphaltenes, hydrates, sand and well fines, napthenates, emulsions, sludge, and water. Many of the deposits come from the transported fluids themselves while others can be caused by chemical reactions between fluids and system metallurgy or through a combination of different fluids in transport lines. Regardless of their origin, their deposition in a pipeline is not preferred and can lead to issues, such as increased back pressures, decreased flow, reduced system reliability, and the risk of full or partial blockage. As a result, product quality is negatively impacted, operational expenditures (OPEX) rise, and correspondingly, profitability decreases.
www.oswindia.com
In many circumstances, deposits are managed through regular ‘maintenance pigging’; that is to say, pipeline pigs are run at regular intervals through the line to remove debris before it can become an issue. Other lines, however, are never pigged until there is a requirement to do so, such as for internal inspection or because of negative impacts on flow regime. Whatever the scenario, there is associated risk. For the former, there is a risk that pigging is too frequent and therefore not at optimum efficiency. In other words, the pigging interval can be increased without significant probability of impeding flow or running the risk of a pig becoming stuck when it is eventually run. For the latter, there is always the risk of any pig being run becoming stuck because of unknown quantities of debris within the flowline or a poor choice of pig. In the current arena, the goal is to be able to evaluate what is in the line before launching any intrusive tool to help mitigate and manage the associated risks. Knowing which deposits are present, where those deposits are located, and the quantity of the deposits inside the line are key to devising the best strategy, not only for cleaning the pipeline but also for handling what comes out of the line at the receiving end, to help minimise the risk of clogging or damaging the process plant downstream. Non-intrusive technologies are currently available that can be used to determine some of the ‘unknowns’ related to the pipeline internal condition. This added knowledge helps allow informed decisions to be made. Magnetic resonance imaging (MRI) type tools can be attached to a pipeline, effectively detailing a ‘slice’ through a cross-section at a given point. These provide a good definition of deposition profile and can even yield information related to deposit density, which helps determine the type of deposit present. This information, coupled with knowledge of what is being produced, can help identify the deposit composition as well as the size and location. There are drawbacks, however, as the ‘slices’ can be very small in length, making the process of scanning an entire line time-consuming and potentially cost prohibitive. In As the price of oil remains depressed worldwide, pressure increases on existing pipeline systems to ensure delivery of fluids in the most cost effective and dependable means possible.
Offshore World | 22 | April - May 2015
Features
addition, access is required to the outside pipe wall to attach the tooling. This can be problematic in buried or subsea lines. Similarly, ultrasound technology can be applied in the same vein; however, issues related to access and survey length also exist.
Non-intrusive technologies are currently available that can be used to determine some of the ‘unknowns’ related to the pipeline internal condition. This added knowledge helps allow informed decisions to be made.
Time of flight (TOF) surveys have been used for years, in which a suitable tracer is introduced into the flow within a pipeline, and the time taken for that tracer to pass a fixed point is measured. The time difference between the theoretical time to traverse the distance and the actual measured time (at the pipeline fixed flow rate) is then used to calculate the actual hydraulic diameter of the pipeline. This information is, in turn, used to calculate the volume of a deposit within the line (theoretical hydraulic diameter - calculated hydraulic diameter). Drawbacks exist with this methodology, though. The calculated volumes are averaged over the distance of the monitoring. For example, if the tracer is only monitored inlet to outlet, the hydraulic diameter would be averaged over the entire length of the line; in other words, it would not be possible to differentiate between the two extremes shown in Figure 1 or anything in between.
transducers measure responses resulting from internal reflections. By tuning out background noise through the use of proprietary algorithms, the time for the reflection can be translated into a pipeline distance, and the pressure variations of the return signal are related to hydraulic diameter changes. As such, an internal ‘map’ of the line can be generated. This operation is easy to perform, with minimal personnel, a simple set up, and a minimal interruption of product flow required; however, as with the other methods listed, limitations exist. Homogenous liquid with limited gas content is required to produce reliable data. In addition, the proper flow conditions and system geometry must be present to perform successful surveys, and the ability to create a clear pulse through a quick closing valve is key to obtaining a ‘clean’ survey. Just as with a TOF survey, PP surveys do not identify the deposit type; however, as with TOF surveys, this can be determined through either production history or sampling. The industry is a long way from achieving a ‘one-size-fits-all’ off-the-shelf solution that definitively determines the composition, volume, and location of deposits in pipelines. Each solution has advantages and limitations. The best compromise between cost, risk, and accuracy should be considered for each line to allow informed decisions on future strategies for pigging regimes for pipeline cleaning.
Figure 1: Extreme examples of deposit formations.
This can be mitigated by introducing multiple monitoring points at regular intervals; however, this can lead to access issues in buried or offshore pipelines as well as increase the cost of the operation. Another potential issue is choice of tracer used. It should be possible to monitor the tracer from outside of the pipeline, such as when using a radioactive fluid or including radio frequency identification (RFID). However, if monitoring at certain points in the line (e.g., by means of a suitable offtake that is routed safely to continued production) is required, then dyed fluids or gels can be used, but downstream fluid compatibility is also a consideration. A TOF survey, while effective at quantifying, will not determine the nature of any deposit in the line, but this might be known already from production data and production history. If the deposit composition is not known, a TOF survey can be used in conjunction with obtained samples to help provide some missing information. Another viable non-intrusive technology for debris deposition analysis is the use of a pressure pulse (PP) survey. In flowing conditions, a PP is introduced into the flowline, typically by closing a valve. The impulse travels through the fluid within the line at the speed of sound, and high-fidelity rapid sampling pressure www.oswindia.com
Offshore World | 24 | April - May 2015
Robert Davidson Product Manager, SureStream® Flow Assurance Services Halliburton Pipeline and Process Services Email: Robert.davidson@halliburton.com Thomas Redares Technical Professional, SureStream® Flow Assurance Services Halliburton Pipeline and Process Services Email: thomas.redares@halliburton.com
Inspiring Intelligence... ..Igniting Innovation
Jasubhai Media Pvt. Ltd. A n I S O 9 0 0 1 - 2 0 0 8 C E R T I F I E D C O M PA N Y
Features Pipelines Legislations
Regulatory Compliances & Legislations for Laying Oil and Gas Pipelines in India Almost 40 per cent of India’s energy demand comes from oil & natural gas, thus there is an imminent need to have a robust pipeline infrastructure to transport petroleum & natural gas & its products through pipelines. Regulatory compliances & legislations on pipeline infrastructure in India is principally regulated by Petroleum and Natural Gas Regulatory Board (PNGRB), Govt of India. The article gives an insight into the regulatory framework for laying Oil & Gas pipelines in India.
T
he petroleum and natural gas sector forms a major source of energy in India as it accounts for nearly 40 per cent of the country‘s energy demand. The share of oil and gas in India‘s energy requirement is projected to increase in the near to medium term, thereby resulting in a projected rise in the dependence on imports. Even though the two products are used differently, their exploration processes are similar and this has often led to them to being addressed in the same category, particularly in legislations. The Oil and Natural Gas (‘O&NG’) sector has tremendous growth potential in India. It is a well regulated industry and in spite of the slowdown in the Indian and global economy, demand for O&NG has been consistent. Traditionally, O&NG has been the domain of the Government of India and select government enterprises. However, with liberalisation and privatisation, there has been active participation from private entities, both domestic and foreign and such participation has continuously seen an upward trend. From the legal perspective, it is the Union Govt, under the Constitution of India that has the power to legislate in respect of O&NG. Legislative powers are conferred on the Union Govt by Entry 53, to List I of Schedule VII of the Constitution. From an industry perspective, O&NG industry is divided into three major sectors: upstream, midstream and downstream. The upstream sector is a term commonly used to refer to exploration, recovery and production of O&NG. In industry parlance, it is simply called Exploration and Production (‘E&P’). The downstream sector is a term commonly used to refer to the refining of crude oil and the selling and distribution of natural gas and products derived from crude oil. The midstream industry processes, stores, markets and transports commodities such as crude oil, natural gas, natural gas liquids (liquefied natural gas such as ethane, propane and butane) and sulphur. The midstream sector was opened for private participation in 2002. The pipeline tariffs are based on the principle of common carrier and the sector is regulated by the PNGRB. The country’s pipeline infrastructure spans 19,300 km for crude oil, 16,293 km for gas and 15,903 km for products. However, the pipeline density in the country is still among the lowest in the world with onshore natural gas pipeline density being 3 km per 1,000 km 2 of area as compared to 50 km per km 2 in the USA, China and the UK.
www.oswindia.com
The sector has seen participation from domestic players apart from PSUs such as Reliance Gas Transportation Infrastructure limited (RGTIL) which operates the East West Gas Pipeline and one of its subsidiaries, Relogistics, which is in the process of laying additional pipelines. Provision of third party access/common carries in natural gas pipelines has also led to a development of the natural gas transmission networks in the country. Long-distance natural gas pipelines are by nature, a natural monopoly and provision of excess capacity for usage by parties other than the owner/operator, is fundamental to providing access to infrastructure in the sector. Regulatory Framework Pipeline regulation is warranted on two counts, (a) to limit the profits of an unregulated monopolist and (b) to offer a level playing field to all players (fostering a competitive environment). Over the years, various Acts, Regulations, policies, etc have been implemented by the Government to regulate and develop the midstream sector, which are discussed here for an insight into the regulatory framework for laying Oil & Gas pipelines in the Country: The Petroleum Act, 1934 The Act is one of the oldest acts in the oil and gas sector. The act deals with import, transport, storage, production, refining, and blending of petroleum. Earlier to this Act, the rules regarding the above specified activities were separate for separate States. This Act brought about uniformity in this field. The Petroleum Minerals Pipelines (Acquisition of Right of users in Land) Act, 1962 With regard to acquisition of user rights on a land where petroleum and/or mineral pipelines have to be laid, the Petroleum and Minerals Pipeline Act was passed in 1962. This Act has provisions relating to the acquisition and utilisation of land for laying pipelines. The central government has been given the authority The country’s pipeline infrastructure spans 19,300 km for crude oil, 16,293 km for gas and 15,903 km for products. However, the pipeline density in the country is still among the lowest in the world with onshore natural gas pipeline density being 3 km per 1,000 km 2 of area as compared to 50 km per km2 in the USA, China and the UK.
Offshore World | 26 | April - May 2015
Features
to acquire the land. Once the land has been acquired, the central government has the option of either keeping the acquired land or transferring it to either the state government or the corporation for which the land has been acquired. The Act also provides for compensation in case of any damage, loss or injury is sustained by any person interested in the land under which the pipeline is proposed to be, or is being, or has been laid. Further, the liability of paying the compensation lies with the concerned authority, i.e., the central or state governments or corporation. This Act was amended in 2012 with the aim to make provisions for sufficient deterrence to criminals from committing the offence of pilferage or sabotage. The Petroleum and Natural Gas Regulatory Board (PNGRB): The Petroleum & Natural Gas Regulatory Board Act, 2006 provides the legal framework for the development of the natural gas pipelines and city or local gas distribution networks. PNGRB was set up in 2007 to regulate midstream and downstream activities, which include refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas. It protects the interest of consumers and entities engaged in the specified activities relating to petroleum, petroleum products and natural gas and ensure the uninterrupted and adequate supply of petroleum, petroleum products and natural gas in all parts of the country to promote competitive markets. Guidelines for Laying Petroleum Product Pipelines, 2002 The Central Government has issued guidelines for laying Petroleum Product Pipelines in November 2002, wherein the petroleum product pipelines have been categorized as: i. Pipelines originating from refineries, whether coastal or inland up to a distance of around 300 kilometers from the refinery. ii. Pipelines dedicated for supplying product to particular consumer, originating either from a refinery or from Oil Company’s terminal. iii. Pipeline originating from refineries exceeding 300 km in length and pipeline originating from ports, other than those specified above.
The present FDI policy for petroleum & natural gas sector allows 100 per cent automatic route for petroleum product pipelines and natural gas pipelines, but subject to the existing sector policy and regulatory framework. policy is to promote investment from public as well as private sector in natural gas pipelines and city or local natural gas distribution networks, to facilitate open access for all players to the pipeline network on a non-discriminatory basis, promote competition among entities thereby avoiding any abuse of the dominant position by any entity, and secure the consumer interest in terms of gas availability and reasonable tariff for natural gas pipelines and city or local natural gas distribution networks. Further, the present FDI policy for petroleum & natural gas sector allows 100 per cent automatic route for petroleum product pipelines and natural gas pipelines, but subject to the existing sector policy and regulatory framework. Conclusion Large domestic natural gas discoveries as well as addition in LNG import capacity have necessitated the development of gas pipeline infrastructure. The PNGRB has approved the laying of a number of gas pipelines providing a significant opportunity for strategic investors as well as service providers and equipment suppliers. While movement by pipelines is irrefutably the least-cost option for product movement, for transmission and distribution of gas, it is the sole option. In addition, product movements by pipelines require much less energy than by other modes. Product distribution costs contribute significantly towards the consumer prices at the retail end. Access to pipelines, which offer the most economical form of product transfer, is thus critical. However, unregulated pipelines could be natural monopolies in the areas that they serve. Pipeline regulation is thus warranted to limit the profits of an unregulated monopolist and to ensure a level playing field for all players.
The guidelines provides for the mode of ownership & access of such pipelines, applicable tariff and conditions for acquisition of Right of Use. Policy for Development of Natural Gas Pipelines and City or Local Natural Gas Distribution Networks - 2006 The natural gas sector is at the threshold of rapid growth in the country. With increased exploration efforts under NELP, large scale discoveries of gas in the East Coast, commissioning of the LNG import terminals in the West Coast, projected upcoming LNG terminals and the Government’s initiatives in natural gas through transnational pipelines, there was an imminent need to provide a policy framework for the future growth of the pipeline infrastructure in the country with a view to facilitating the evolvement of a nation-wide gas grid and the growth of city or local gas distribution networks. The objective of the Offshore World | 27 | April - May 2015
Santosh Pandey Associate Partner Dhir & Dhir Associates Email: santosh.pandey@dhirassociates.com www.oswindia.com
Features Asset Management
Importance of Oil & Gas Assets Management to Achieve Energy Security Energy security or independence of a nation is considered by the fact of ensuring interrupted energy supply to all its citizens and meet their demand for safe and convenient energy at affordable costs at all times. Any Country’s energy security is directly related to security of its Oil, Gas and Pipeline assets - both domestic and overseas - to ensure uninterrupted production, processing and protection of the supply chain. The article details on the challenges & pragmatic strategies for reliable security of oil & gas assets to achieve the energy security of a nation.
T
he relationship between energy consumption and growth of a nation is well documented. In fact, it is the steady economic rise of India and China that in substantial measure has placed the issue of energy security on the forefront. This growth is also inaccurately and simplistically portrayed as one important cause for the unprecedented price rise in the world oil market. ‘Energy Security’ of a Nation What can legitimately be described as ‘Energy Security’ of a nation? A 1999 UNDP report defined Energy Security as the continuous availability of energy in varied forms in sufficient quantities at reasonable prices. In India, the Parikh Committee report stated that, “a country is energy secure when it can supply energy to all its citizens and meet their demand for safe and convenient energy at affordable costs at all times with a prescribed confidence level considering shocks and disruptions that can be expected”. Nation’s aspirations to develop and progress will remain unfulfilled without energy. The Energy Security will guarantee to strengthen national economy and defense preparedness. It calls for continuous availability of energy in varied forms in sufficient quantity. It require following steps: • An elaborate distribution network for domestic supplies • To grow our energy supply in an environmentally responsible manner How to Ensure Energy Security for a Nation Energy security consideration for a nation will require following steps: • Ensuring availability of energy sources through domestic efforts or through long term supply agreements or through buying assets abroad; • An elaborate distribution network for domestic supplies; • Development of infrastructure to cope with the growing demand in terms of storage, import terminals etc; • To grow our energy supply in an environmentally responsible manner; • Above all, institutional and policy mechanisms to ensure an equitable supply of energy both in terms of reaching underdeveloped regions and in terms of the economically backward sections of the Indian society. Energy Security & Security of Oil, Gas & Pipeline Assets Country’s energy security is directly related to security of its Oil, Gas and
www.oswindia.com
Pipeline assets. Every step needs to be taken to ensure uninterrupted production; processing and protection of supply chain in this sector which can be termed is ‘Key-infrastructure Sector’ for country’s steady growth, sound economy and sustainable energy independence. Security provides oil and gas companies the freedom to find, develop and manage assets and to deliver supplies without interference. Being ‘secured’ stems from having the correct strategy which is translated through innovative technology into a robust implementation supported by rigorous system’s management. While ensuring availability of energy sources becomes prime concern of the Nation, securing its Oil, Gas and Pipeline assets become prime responsibility of all stake-holders. Why Transnational Pipeline Projects Why two or more countries would agree to have trans-national pipelines? This would find answer in following key-considerations for such projects • Some one’s waste is other’s raw material – it makes commercial sense. • Clean and cheap fuel – reduces carbon foot-prints. • Ensures energy security of Nation. • Demand & Supply Imbalance – results in increased import – pipeline being safest and cheapest mode of transportation. • Links progress and development – ‘have-not’ draw immense socio-economic benefits. • Socio-political reasons – regional power balance and political considerations decide the participating Nation’s stake in the joint venture. • Economic well-being – since products transported though trans-national pipelines are used for energy, power generations, besides used as raw-material for fertilizers and petroleum products, such projects improve economic well-being of end-user country. • Ethnic aspirations - chances of ethnic, religious and cultural aspirations and well-being increase as it brings industrial development, employments and CHALLENGES FOR PLANNERS, BAD DREAMS FOR SECURITY MANAGERS Planning Challenges • Pipeline projects are riddled with problems. Geo-political situations across nations pose a major hindrance in pipeline projects
Offshore World | 28 | April - May 2015
Features
• No overarching legal regime that can be used to resolve differences between nations and regulate activities and contracts • Clear distinction between the oil and gas market because unlike the oil market, the gas market is more disaggregated and there are no benchmarks for gas and prices • allow host countries to make ad hoc changes in gas pricing (example of IPI) • Conflicts and impediments in transcontinental projects are result of politics due to or in the absence of legal and regulatory regimes • Co-operation hindered by competition and mistrust • Tariff monitoring and price volatility - Issues relating to pricing and the geopolitics of the pipeline in general poses as impediment • Multi-dimensional set of policy responses • implementation of rules embedded in multilateral agreements in the 1994 General Agreements on Tariffs and Trade( GATT) under WTO or the Energy Charter Treaty (ECT) Why Oil, Gas & Pipeline Assets’ Security? • LPG & Natural gas pipelines are treated as utility services, • Constitute National Infrastructure sector • Life Line of the Nations, • Have Destruction capabilities • Loss of business to the company – tangible & intangible • Measure of Security = Vulnerability X Probability X Criticality Challenges for Planning & Execution Conflicts and impediments in transcontinental projects are more often the result of politics due to or in the absence of legal and regulatory regimes. There is no overarching legal regime that can be used to resolve differences between nations and regulate activities and contracts. The problems relating to terrain can be overcome but the geo-political situations across nations still pose a major hindrance in pipeline projects. [1] • Selection of trans-national suitable route agreed by all stake holding Nations, • Natural / anthropogenic constraints • Socio-political and local law-and-order issues • Sovereign guarantees and discharge of contractual obligations • Mobilization and protection of seismic / geological survey parties and inventories • Common operational frame-work, time management and activity coordination • Stringing, Cabling, trenching and lowering of line pipes • Setting early collection / dispatch facilities Post-commissioning Security Considerations • Pumps & Control Systems • Buried Pipelines / Aboveground Pipelines – surveillance and monitoring • Sectionalizing / Isolation Valves – Manually, Remotely or Automatically Operated • Relief valves - Thermal or other types • Pipe-bridges or other Supports
Conflicts and impediments in transcontinental projects are more often the result of politics due to or in the absence of legal and regulatory regimes. • • • • •
Cased Sleeves under Roadways or Rail lines Leak Detection Systems River / Road Crossings - exposures and wash-outs Pig Launchers / Receivers – transportation and operations Cathodic Protection System – regular monitoring and maintenance
Major Areas of Security Concerns The production of Oil and Gas is a major logistical operation from locating and investigating new sites to the movement of personnel and establishment of facilities. It takes an enormous amount of resources to establish such sites and all the operators have to rely on a sound cloak of security to prevent theft of equipment, extortion, sabotage and kidnapping of work force. There are following major areas of security concerns – • Security of geological survey party, their equipment and explosives • Land acquisition and establishing camp sites • Pre-camp armed - static security • Security during movement of drilling equipment and personnel • Executive and employees travel protection • Transportation - armed security (rail, air & sea) • Commencement of drilling / pipeline laying activities • Establishing early oil / gas collection centers and security thereof • Security of off-shore platforms, receiving terminals, dispatch terminals, compressor stations etc. • Security of larger installations such as refineries, LPG plants and petrochemical complexes • Security of supply chain – storage / warehouse, rail / road transportation • Intelligence gathering and disaster planning • Constitution of Emergency Response Teams For the Key Infrastructures such as Oil and Gas, security is always a major concern as this sector world over has high probability and vulnerability from terrorist attacks and sabotage. [2] Their operations also have high criticality. Following are the specifics of the security management of this sector Security of Pipeline Installations Examples of recent attacks on oil pipelines and offshore oilrigs have included those carried out in Nigeria, Columbia, and the facilities of ExxonMobil in the Aceh region of Northern Indonesia. Though the number of such attacks has considerably dropped from 200 to 45 last year, there still lurk the threats to numerous oil rigs, supply depots and refineries as well as loading terminals; further demanding a deeper insight on measures for enhancing security and safeguarding the larger oil infrastructures. Another aspect that ‘has made offshore oil-rigs or oil platforms all the more vulnerable is their potential target value for terrorism-for-profit, rather than
Offshore World | 29 | April - May 2015
www.oswindia.com
Features terrorism-for-political ends, as the majority of the world would like to believe’. http://www.primedefence.com This phenomenon can be observed in the countries of Angola, Gabon and The Ivory Coast and though of lesser significance; in South Africa as well. With concerns for profit rather than politic motives becoming common, and the popularity of networks such as the Al-Qaeda, there is now a much more likely chance that this phenomenon will spread in other regions of the world. [2] Off-shore platforms are highly vulnerable, high risk installations having high probability of attacks of terrorist which may be equipped with some of the best technical capabilities. Somalian sea-pirates have well demonstrated that now-a-days any one can get anything provided they have sufficient funds! It is therefore very important that beside sturdy infrastructure security and the security risk management mechanism including airborne, maritime and ground surveillance, these platforms have very reliable and impregnable communication and cyber security measures. Tracking and positioning of manpower and material is equally important. To devise an action plan to combat attacks on its offshore installations. Potential terrorist-related crisis situations should be incorporated in the CMP (Crisis Management Plan) along with the response mechanisms/capacity building required to handle such situations. Vessel Automatic Tracking and Monitoring System for the security of large oil infrastructures in high sea areas assume greater importance to rule out attack capabilities of Somalian like out-fits which might draw their attention to the vulnerabilities of these assets. Pragmatic Strategies for Reliable Security of Oil & Gas Assets The Operations, Safety, Security, and IT decision-makers of the Oil & Gas industry are well advised to pay attention to following aspects Optimizing Assets through Centralized Command & Control: The Integrated command and control system must be positioned to provide integrated solution to capture and validate data that can be used throughout the organization during normal operation. Whilst providing relevant, useful information in difficult and emergency situations, this approach will enable operators of critical national infrastructure to optimize their assets whilst maintaining their investment in legacy systems. New developments in technology can improve the security of personnel and assets and provide enhanced operational capabilities. Securing Oil & Gas Control Systems: More and more reliability on Local Area Network (LAN), Wide Area Network (WAN) and Broadband Global Area Network (BGAN) brings increased threats to operations of organizations using them. The networks are susceptible to attacks aimed to disrupt and destroy them. Such an attack by viruses, worms or other forms of cyber-terrorism on oil and gas industry process control networks and related systems could destabilize energy industry supply capabilities and negatively impact the national economy. Sandia National Laboratories, Albuquerque (USA) has served as the lead national lab in Project LOGIIC (Linking the Oil and Gas Industry to Improve Cyber Security). The project was created to keep U.S. oil and gas control systems safe and secure, www.oswindia.com
For the Key Infrastructures such as Oil and Gas, security is always a major concern as this sector world over has high probability and vulnerability from terrorist attacks and sabotage.
and to help minimize the chance that a cyber-attack could severely damage or cripple oil and gas infrastructures. It works to identify ways to reduce cyber vulnerabilities in process control and SCADA (Supervisory Control and Data Acquisition) Systems). The goal of the project was to identify new types of security sensors for process control networks. Sandia worked with project partners to create a simulation test bed and apply this environment to counter potential threats to the oil and gas industry using hypothetical attack scenarios. Sandia researchers created two real-time models of control systems used for refinery and pipeline operations. The trials have come out with very encouraging results and technology is ready for deployment. Biometric Integrated Safe System of Work: Integrated Safe System of Work (ISSoW) is a key tool in ensuring the safe operation of Oil and Gas installations. However, such systems can only be truly effective if user identities can be quickly validated and definitively authenticated. For this to be implemented in practice in providing advanced authentication and identity management, the biometrics based access contrpol solutions are found to be very reliable. There are many solutions aviable solution where worker identities can be positively and accurately registered, identified and managed securely throughout their lifecycle. High Accuracy Real Time Personnel & Asset Location: There is need to have a system that improves the safety of workers in hazardous environments and helps to improve the effectiveness of emergency response measures. There are systems available which can locate an individual, or asset, to within 1 meter in 3D (e.g. in a multi-storey/multi-level facility) and it can do this up to 1km from a base station. The system provides a position update every second and, for example, could be used to track a lone worker or road tanker’s progress through a plant or ensure that personnel are moving towards the correct muster points in an emergency. Such system do not require large amount of infrastructure or extensive cabling and is therefore easily installed in an existing plant at minimal cost. Situational Awareness - Securely Integrating Site Data: This aspect deals with the need to simply and securely integrate data from a wide variety of systems to show site leaders and managers the overall condition of their site - and what is happening on it. This capability brings together data from operational, security and work management systems and merges this private data with public information from the internet to provide a complete picture. By using an underlying open data architecture together with security protection system, it can bring these data sources together and share them securely among multiple disparate user groups, and at different locations, whilst ensuring data validity, security, and privacy. As well as the complete picture, it can also provide custom views for users such as maintenance teams, emergency services and even the media and general public in the event of a major incident. Upstream Collaboration: Collaborative working can generate significant benefits to improve time to market, reduce risk and increase productivity with
Offshore World | 30 | April - May 2015
Features the upstream energy business. It allows any combination of knowledge workers on and offshore, the ability to collaborate on any document or application with video anywhere in the world. [3]
resilient telecommunications networks such as Broadband Global Area Network (BGAN), which allow for simultaneous voice & data communications and secure access to applications from almost anywhere in the world [7].
A true collaboration environment seeks to make decisions and resolve issues faster. It allows plant engineers to share photo evidence and discuss issues with the head office, risk management office to comply with HSE requirements; Upstream exploration processes linking a remote geological survey unit to share seismic data and structure a next stage of exploration program; and plant design and build to allow large scale programs to collaborate on critical design and project build processes with all parties, creating an effective way of delivering complex projects. [4]
Conclusion While above are the main strategies for securing the trans-national oil and gas pipelines assets, constant improvement and improvisation need to be carried out to make security measures reliable as well as cost effective, as in present phase of economic melt-down no organization will take decision without working out the ROI (Return on investment). Dedicated manpower ready to face the disaster would always be central consideration for any security and disaster response plan and needs to be embraced by the partner Nations. To keep the involved manpower constantly motivated and updated is also another prime responsibility of the Managements of partner companies of involved Nations as otherwise even the best plans are doomed to fail! Only those will succeed in this type of multinational venture who foresee and fore-plan and rehearse thereafter their security and emergency response plans!
Communication Technology: Legacy v/s Ethernet: Everyone is trying to monitor and control remote assets without sending personnel out to distant locations. It’s expensive to send someone on a three to four-hours’ drive several times a day to check an oil-well. People want to get the same benefits without leaving the office, and Ethernet technology allows personnel to be virtually on location [5]. Processes can be started and stopped, gas production levels can be monitored, and tank levels can be checked, just as if someone were physically at the location of the asset. Radio is the key that allows us to create a link in the office and do all this. After investing millions in legacy serial communications systems - and in many cases, millions more in older SCADA RTUs (Remote Terminal Units) and EFMs (Electric Flow Meters) — many oil and gas producers are in a fix? Because they are now being driven by IT to convert these systems to Ethernet! The benefits of Ethernet usually make it worthwhile. The first advantage is that people have been using licensed radios in the oil and gas industry for almost 20 years, and the frequency allocations are pretty well used up in areas where there’s a large oil and gas production. New frequencies just aren’t available. [6]
References 1. Why Transnational Energy Pipelines Remain Pipedreams in South Asia - http://www.idsa.in/ event/WhyTransnationalEnergyPipelinesRemainPipedreamsinSouthAsia.html 2. Energy policy and cooperation in Southeast Asia: The history, challenges, and implications of the trans-ASEAN gas pipeline (TAGP) network - http://www.sciencedirect.com/science/article/ pii/S0301421509000846 3. The Iran–Pakistan–India Natural Gas Pipeline: Implications and Challenges for Regional Security - http://www.tandfonline.com/doi/abs/10.1080/09700160903354815#. VCT2WmeSySo 4. European Union energy security: the challenges of liberalization in a risk -prone international environment Society - http://halshs.archives-ouvertes.fr/docs/00/78/71/23/PDF/ClastresLocatelli-EEM12.pdf 5. 2014 Data Breach Investigations Report -Energy And Utilities - http://www.verizonenterprise.
Security is one of the best reasons to make the switch. Serial radios can’t provide all the security features of Ethernet. One can supplement serial to get certain levels of security, but it is still not as secure as Ethernet. With Ethernet technology, the radios themselves become individually addressable, and you know that you are talking only to that radio. You can also create a “white list” or “black list.” The white list would include TCP addresses that are authenticated on the system and are permitted to talk. This prevents someone from finding or stealing a radio and talking with a major oil company’s network. Users have to be authenticated or the system won’t respond. This feature makes it very useful for police and law enforcing agencies as this enables their communication highly secure compared to conventional radio communication.
com/resources/factsheets/fs_2014-dbir-industries-energy-and-utilities-threat-landscape_ en_xg.pdf 6. Energy and Utilities Solutions - http://www.verizonenterprise.com/industry/utility/remotemonitoring/ 7. Broadband Global Area Network & voice and broadband data communications http://en.wikipedia.org/wiki/Broadband_Global_Area_Network
Robust, Secure, Global Communication Solutions: This capability calls for seamlessly connecting all oil & gas installations of an organization and on more higher level , of the Nation by providing highly available, robust, secure, integrated communication networks for critical operational systems. A number of communication solutions are available which provide robust connectivity and communication helpful for protection of assets and personnel in environments where a high standard of inherent safety is a mandatory requirement. There are Offshore World | 31 | April - May 2015
Capt S B Tyagi, FISM, CSC Co-Founder International Council of Security and Safety Management Email: sbtyagi1958@gmail.com www.oswindia.com
Features Case Study
Cyber Security Vulnerability Assessment Reduces Risks to Gas Pipeline Operation Natural gas transmission & distribution through pipelines involves numerous safety aspects, including cyber security. The case study explains about Honeywell’s cyber security vulnerability assessment solution for operating safely and efficiently of natural gas distribution pipeline network.
A
s a result of Honeywell’s cyber security vulnerability assessment solution, a natural gas pipeline company was able to empirically identify and quantify all of the steps required to improve the security and reliability of its natural gas distribution pipeline network, and therefore increase the uptime and availability of its system. The Honeywell cyber security assessment identified all critical gaps within the enterprise. Once gaps were identified, Honeywell helped the customer develop, implement and manage a comprehensive information security program to ensure current compliance with applicable industry regulations and ongoing protection of information and systems. Thanks to the Honeywell solution, company personnel are now more aware of potential cyber security threats and can take action to ensure gas continues to reach residential and commercial customers throughout the company’s service area. Background The pipeline organisation, which was incorporated in the USA in the early 1900s, is one of the largest combination natural gas and electric utilities. There are approximately 20,000 employees who carry out the transmission and delivery of energy. The company provides natural gas and electric service to approximately 15 million people. They operate tens of thousands of miles of natural gas distribution and transportation pipelines. While large interstate natural gas pipelines may serve major wholesale users such as industrial or power generation customers directly, it is the distribution system that actually delivers natural gas to most retail customers, including residential natural gas users. A gas utility’s central control center continuously monitors flow rates and pressures at various points in its gas distribution system. Sophisticated computer programs are used to evaluate the delivery capacity of the network and to ensure that all customers receive adequate supplies of gas at or above the minimum pressure level required by their gas appliances. Challenge Today’s natural gas transmission and distribution systems are heavily dependent
www.oswindia.com
upon computer technology and supervisory control and data acquisition (SCADA) systems to operate safely and efficiently. For gas utilities, the challenges involved in ensuring effective cyber security are similar to those faced by bulk electric system and local power distribution providers, except that natural gas systems transport molecules, not electrons, and are equipped with safety devices, which are, in most cases, manually operable as federally required. But all of these groups depend on communications infrastructures, computer technologies, and people to safely and efficiently transport the energy product to the end user. Designing, operating, and maintaining a pipeline facility to meet essential availability, reliability, safety, and security needs as well as process control requirements requires the careful evaluation and analysis of all risk factors. Attacks on a cyber system may involve only the cyber components and their operation, but those impacts can extend into the physical, business, human, and environmental systems to which they are connected. A cyber event, whether caused by an external adversary, an insider, or inadequate policies and procedures, can initiate a loss of system control, resulting in negative consequences. The client recognised the importance of the cyber security profile of its gas distribution pipelines and equipment. An operational incident underscored the need to better manage networks and data access. It had become clear that the company required expertise in the niche market of IT security as applied to critical control networks. Solution Honeywell Industrial IT Solutions provided quality service and professional results to the client on more than one previous occasion. In this instance, they needed help assessing and remediating the cyber security vulnerabilities of their gas distribution pipelines and equipment. Honeywell’s solutions for oil and gas pipelines promote safety, environmental responsibility, and efficient operations. Honeywell’s industrial cyber security expertise has been evolving over the last decade, combining best practices from traditional IT with the needs of a complex process control environment.
Offshore World | 32 | April - May 2015
Features
The organization recognized the importance of the cyber security profile of its gas distribution pipelines and equipment.
The cyber security vulnerability assessment is designed to examine the three core facets of an organisation’s cyber security: • People: What is the cyber security awareness level in the organisation? Are staff members following security policies and procedures? Have they been adequately trained to implement the security program? • Process: What are the cyber security policies and procedures in place in the organisation? Do these policies and procedures meet key requirements? • Technology: What cyber security technologies are in use in the organisation? How are these technologies configured and deployed? The assessment process takes inventory of all cyber assets, how they’re connected, and how they’re programmed. This includes: • Servers • Network switches • User terminals • Desktop and laptop PCs • PLCs and controllers • Terminal racks • Wireless transmitters and receivers • Mobile devices on the network Through the assessment, Honeywell’s team documented the vulnerabilities in all facets of the client’s pipeline operation, interpreted and assessed the associated cyber security threats, and provided a roadmap to mitigate risks. This included: • Site and system assessment—Review of particular site and system-specific vulnerabilities. • Policy and procedures assessment—Review of current policy and procedure documents. • Compliance assessment—Review of operations and processes against applicable compliance standards and best practices. • Security baseline—Gauges progress against current status and operating model for security. • Risk assessment—Identifies appropriate levels of security for each asset. The final analysis included suggestions for improvement by order of importance, a project plan, and order-of-magnitude costs for budgetary purposes. Going forward, Honeywell will help the client further develop or refine and execute their cyber security program.
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 & organizations, 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 | 33 | April - May 2015
www.oswindia.com
Features Energy Watch
Energy Commodities Continues to Exhibit Mixed Price Movement Continuing on past few months’ trend, energy commodities continued to exhibit mixed price movement over the twomonth period of March and April 2015. Potential supply disruptions in the Middle East and hopes of reduction in oil supply glut led NYMEX crude oil futures to jump the most among all energy commodities, by 19.8 per cent. On the other hand, NYMEX heating oil, after a big price jump early in the year, plunged the most i.e. by 14 per cent.
N
YMEX (CME) crude oil (light sweet) futures started the month of March 2015 at a steady note of USD 49.59 per barrel, down by just 0.34 per cent from previous month’s close. Later, a surprise rate cut in China in addition to violence in Libya – threatening oil supply, pushed oil prices up. Subsequently, releases of a few downbeat US economic reports and news of rising oil output from Libya applied brakes on oil price rise. Weekly US oil inventory report indicating a bigger-than-expected increase in crude oil inventories also aided the fall in oil prices. Further, China projecting its economic growth of about 7 per cent for 2015 down from 7.4 per cent in 2014 coupled with a release of stronger-than-expected US jobs report that helped the dollar to strengthen, added to bearish sentiments. With increasing expectations that the US Federal Reserve would begin raising rates soon, along with a ninth straight weekly climb in US crude oil supplies, oil prices continued to decline. Subsequently, the monthly report by International Energy Agency raised concerns that the glut of crude supplies and tightening storage capacity in the US may cause prices to weaken further. As a result, NYMEX crude oil futures registered its eventual two-month low of USD 42.03 per barrel on April 18. Following the registering of their two-month low, oil prices started to rebound as comments from the US Federal Reserve, contrary to expectations, signaled a cautious approach in its intent to raise key interest rates. The rise in oil prices was further helped by a drop in the US dollar and a data release showing decline
in US oil rig counts. Interestingly, the US administration revealed new rules on hydraulic fracturing — a drilling technology used to unlock reserves of oil and natural gas - that could slow down drilling and development. Release of upbeat manufacturing data from the US and increase in private-sector activity from Germany to a four-year high ensured the rally in oil prices. Later the turmoil in Yemen raising concerns over crude supplies in the Middle East got accentuated with Saudi Arabian airstrikes in Yemen, exerting upward pressure on prices. By end of the month of March, expectations of favourable outcome from talks over Iran’s nuclear program, which could in turn result in an easing of sanctions against the crude exporter and hence bring more Iranian oil to the market, pushed oil prices down to some extent. Later, data showing a small decline in U.S. oil production and a larger-than-expected drop in weekly US gasoline supplies, pushed oil prices back on rising spree. Barring a brief intermittent dip, oil prices continued to move up. Signs of strengthening Asian demand as Saudi Arabia raised its official crude oil selling price for Asian buyers for May and weakening of the US dollar on release of weaker-than-expected US jobs data helped oil prices rise. Meanwhile, the US oil-rig count fell by 11 to 802 for the 17th consecutive week. By April, emerging doubts over a potential nuclear deal with Iran as well as downbeat Chinese economic data spurring expectations for stimulus measures in turn potentially
Futures price movement (March - April 2015)
210
200
60
190
55
180
50
170
160
45 NYMEX Heating oil (USd/gal) - LHS
NYMEX Gasoline (USd/gal) - LHS
NYMEX WTI crude oil (USD/barrel)
ICE Rotterdam Monthly Coal (USD/MT)
Source: Bloomberg
www.oswindia.com
65
Offshore World | 34 | April - May 2015
40
Features
3.1
Futures price movement (March - April 2015)
8
NYMEX Natural gas (USD/mmBtu) - LHS 2.9
ICE-ECX EUAs (Euro/tonne)
7.5
2.7
7
2.5
6.5
2.3
6
Source: Bloomberg
boosting oil demand, helped crude oil prices to rally. Talks of a potential output cut from the Organization of the Petroleum Exporting Countries (OPEC), expectations of a decline in US oil production as well as International Energy Agency forecast for higher crude oil demand, ensured northbound movement of oil prices. Meanwhile, China actually made a move to shore up its economy with its central bank announcing a surprise one percentage point cut in banks’ reserve requirement. In the later part of April, potential oil supply disruptions in the Middle East with Saudi Arabia’s resumption of airstrikes against Houthi rebels in Yemen and weak data releases from China raising more prospects for economic stimulus, kept the uptrend in oil prices. In the final phase of the month, a weekly decline in crude inventories at the US storage hub for the first time in months fed expectations that the nation’s production and supply glut will soon start to ease. Consequently, NYMEX crude oil futures registered its month high of USD 59.85 on the last trading session of the two-month period before closing the month at USD 59.63, a rise of about 20 percent in the two-month period. Amongst the crude oil derivates, while NYMEX (CME) gasoline futures prices treaded a path similar to crude oil prices i.e. rose by about 16 per cent during the 2-month period, the other derivate i.e. NYMEX (CME) heating oil futures struck an opposite path. NYMEX heating oil futures prices moved down by about 14 per cent during this period, on unfolding of weather related demand and resolving of workers’ strike in a few U.S. refineries, which led to a sharp price rise in early February.
Another energy commodity, ICE Rotterdam monthly coal futures prices continued its downtrend, falling by 3.24 per cent in the two-month period. A global oversupply with rising supply from some producers, coupled with falling demand from top consumers such as China, kept a downward pressure on coal prices. Chinese coal demand has been suffering on two accounts - slower economic growth and new environmental rules. Moreover, coal prices are also not being helped by the plunging oil prices, which have made coal lose its prized ranking as one of the cheapest sources of power. Finally in the emission segment, EUA (European Union Allowances) futures prices traded on ICE platform were up by 4.08 per cent during the two-month period. The EU plan to bring forward important reforms to revive moribund carbon prices got a boost after Poland failed to corral sufficient opposition in Eastern Europe to block the market overhaul. Earlier, European Union member states reached a provisional agreement that carbon market reforms should begin on January 1, 2019, two years earlier than originally proposed, paving the way for a further round of negotiations. Meanwhile, the EU agreed to withhold 900 million allowances that had been scheduled for auction in an attempt to tackle the oversupply in the market, which also led to the EUA price rise. (The views expressed by the authors are their personal opinions.)
The other major energy commodity, NYMEX (CME) natural gas futures exhibited range-bounded price movement in the two-month period of March-April. In March, lesser than expected decline in US natural gas stock coupled with forecasts for warmer US weather – denting gas demand sentiments, pushed natural gas prices down. On the other hand, natural gas prices recovered in April on lesser than expected rise in weekly reported US stock levels and expectations of a boost in gas demand from power plants in view of the ensuing summer season in US. Offshore World | 35 | April - May 2015
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 www.oswindia.com
OSW marketing initiative
Remote detection and localization of gas leaks with autonomous mobile inspection robots in technical facilities Detection of gas leaks in industrial facilities cannot only be dangerous and time-consuming; it is also susceptible to human error and interpretation. In order to provide a safer, more efficient and more reliable detection solution, RoboGasInspector was conceived. This innovative robot system for remote detection and localization of gas leaks was developed by a range of German companies and institutes, and uses a FLIR GF320 optical gas imaging camera.
A
s part of the German technology program AUTONOMIK, a consortium of nine companies and research institutes developed a prototype of an autonomous mobile robot for gas leak detection and localization in large industrial facilities. The consortium came up with a system that is able to perform inspection tasks in industrial facilities without having to access hazardous areas directly - and without requiring any human presence. The robot can be used for routine inspections of facilities or for targeted inspections of specific system parts. The independent mobility of the system was implemented with various navigation sensors and the option of manual intervention via remote control at any time. The system is also equipped with video and optical gas telemetry, which enables it to inspect system parts that were previously difficult to inspect due to restricted accessibility.
This was the starting point for a collaborative research project headed by Dr. Andreas Kroll and Dr. Ludger Schmidt at the Mechanical Engineering Department of the University of Kassel and subsidized with € 2.4 million from the Federal Ministry of Economics and Technology.
The development of innovative monitoring processes that make the most of stateof-the-art measuring and automation technology as well as robotics promises improvement in the reliability, efficiency and cost-effectiveness of inspections. At the same time, it relieves technical personnel of monotonous, time-consuming and labor intensive tasks.
Safety and efficiency Operators of industrial plants (e.g. chemical plants, refineries, gas compression stations) give top priority to the safety of their staff and their production facilities. Exercising the utmost care wherever toxic or explosive gases are used is absolutely essential. That’s why rigorous inspection specifications apply to the chemical
“The objective of this project was the development and testing of an innovative human-machine system with inspection robots equipped with remote gas measuring technology and local intelligence,” explained Dr. Andreas Kroll of the Department of Measuring and Control Technology at the University of Kassel. “The detection and localization of gas leaks should be performed largely independently by mobile robots. During this process, the mobile robots should also analyze the measured data and document the inspections.”
The RoboGasInspector consists of three modules: a chain-driven mobile platform, a navigation module and an inspection module. Note the FLIR GF320 on top of the unit. www.oswindia.com
Offshore World | 36 | April - May 2015
OSW marketing initiative
Panning range (view from above) and tilt range (side view from below) of the sensor system
industry, biogas facilities and gas suppliers. Usually, preventive inspection programs require personnel to perform time-consuming routine inspection procedures on a daily basis.
Working from a safe distance is not possible with TVAs. Furthermore, wind or other weather factors can scatter gas and vapors, so that the accuracy of the measurements is impaired.
During these regular inspections, staff members check the system for proper functionality and therefore he or she usually relies on perceptions and experience without making use of measuring technology. For professors Andreas Kroll and Ludger Schmitt, a top requirement for the new system was that it should allow for automated, hazard-free inspection and monitoring and that it should be able to respond independently to problems. Technical detection options: Toxic Vapor Analyzer (TVA) To prevent harm to people, the environment and investment goods, gas leaks from systems and infrastructure facilities must be detected and located quickly and reliably, as they can form toxic and/or explosive mixtures. Today, various methods are used to accomplish this. The conventional method of detecting Volatile Organic Compounds (VOCs) in plant fittings is based primarily on Toxic Vapor Analysis (TVA) or “sniffing” technology. During the search for gas leaks, an inspector checks all relevant system parts at sites marked in advance. According to a study carried out by the American Petroleum Institute, 84% of all leaks occur in 1% of the equipment. That means that companies have to dedicate the majority of their inspection procedures to the 99% of functioning, reliable and leak-free areas - a possible source of inattention due to monotonous routine and a considerable expense. Moreover, TVA technology has a number of disadvantages. First, it exposes the employees searching for leaks to invisible and potentially dangerous chemicals.
The FLIR GF320 thermal imaging camera visualizes more than 20 for the naked eye invisible, organic gas compounds. For more information about thermal imaging cameras and this application, please contact: FLIR Systems India Pvt. Ltd. 1111, D Mall, Netaji Subhash Place, Pitampura, New Delhi – 110034 Tel: +91-11-4560 3555 | Fax: +91-11-4721 2006 E-mail: flirindia@flir.com.hk
Offshore World | 37 | April - May 2015
www.oswindia.com
Now : Mobile App of Offshore World For Android & Apple Platforms Download FREE App from
NEXT ISSUE FOCUS:
‘Automation’ advances have been came in a big way in the Oil & Gas industry in transforming the decision making ability through real-time data to improve production & maintenance planning, safety and availability. The June July issue of Offshore World is “Automation Special” and will cover insights on Industrial Automation, Smart Refinery, Process Automation, CFD Analysis, reservoir simulation, Information & Computational Technology in Oil & Gas Industry and many more. To ensure Offshore World continues to meet your needs, we would appreciate in getting your feedback. Please feel free to write us at rakesh_roy@jasubhai.com.
OSW marketing initiative
V-Cone Flow meter Solves test Separator Problems for the Oil & Gas Industry Test separator applications Ideal for Measuring Wet Gas, Condensate and Dirty or Abrasive Flows With its advanced space-saving design, the new high accuracy V-Cone® FPSO Flow Meter from McCrometer is the ideal liquid, gas or steam measurement solution for cramped Floating Production, Storage and Offloading Vessels operating in deep water or remote areas.
T
est separators are normally used when more than one well and field deliver fluid to the platform at the same time. It is important to continuously monitor the oil, condensate, water and gas being delivered to the platform from each well. However, in the gas metering section of a test separator, liquid “carry over” is a well-known problem, especially when new wells are put on stream. Occasionally, when the well stream flow exceeds the capacity of the test separator, water, oil, agitated solids and other debris are carried over into the metering devices. As a result of this harsh treatment, orifice and conventional turbine meters have sometimes been found buckled or damaged—even when relocated somewhere downstream of the process.
These heavy and bulky installations can incur weight and space penalties, a major consideration for today’s offshore platforms.
Other common problems with conventional meters include wax/asphaltene build-up, sand/cavitation erosion and grease ingress/deposition from upstream valve lubrication. They contribute to inaccurate measurement, which in turn leads to an increase in total cost of ownership of the system. Also, when a well-test is being performed, there is usually higher than normal flow regimes/velocities and the separator performance is reduced due to the meters’ over ranging. Generally, plate changes are needed on orifice designed measurement systems to cope with the turndown But this can be time- consuming, risky and costly when removing plates under system pressure.
For retrofit purposes, the V-Cone is simple to install. The V-Cone flow meter measures wet gas efficiently and provides a more stable, accurate result than other meters. There are no build-up problems with the V-Cone, unlike the orifice plate and some other flow meters. When two V-Cone flow meters are placed in parallel on a test separator gas run, the flow meters can cover the range that would require at least 10 orifice plates.
Why the V-Cone Flow meter is ideal for Test Separator Applications McCrometer’s patented V-Cone flow meter offers an advanced differential pressure flow technology that acts as its own flow conditioner. This unique design enables the V-Cone flow meter to provide outstanding performance without the long lengths of upstream or downstream pipe runs usually required by other types of flow meters. This requirement for reduced straight pipe run results in significant space savings, especially on offshore platforms.
The V-Cone provides an accuracy from ±0.5% and repeatability of ±0.1%. It comes in sizes from 1/2 inch to over 120 inches. It handles flow turndowns in excess of 10:1. High pressure meters are available. Corrosion resistant models in most materials are also available.
For more information, please contact:
V-Cone installation on a typical test separator application.
Toshniwal Hyvac Pvt. Ltd. 267 Kilpauk Gardens Road, Chennai – 600 010 sales@toshniwal.net www.toshniwal.net Offshore World | 39 | April - May 2015
www.oswindia.com
india news Videocon Confirms Huge Oil at Offshore Brazil
V N D ho ot, Chairman & M a n a g i n g D i re c to r, Videocon
Mumbai: Bharat PetroResources Limited (BPRL), upstream arm of Bharat Petroleum Corporation Limited (BPCL), and Videocon Industries, have confirmed that Petrobras, operator of the block SEAL-M-426 in BM-SEAL-11 Concession, Brazil, had completed assessment of the petroleum potential of the wells located in the ultra-deep waters of the Sergipe-Alagoas Basin.
In a filing to an exchange, BPRL and Videocon said that the results confirmed the presence of light oil and good productivity of the reservoirs. This drilling identified two reservoir intervals of light oil and gas - the top with a thickness of 44 metres, and the bottom 11 metres thick, the bottom zone being a new discovery for the area. V N Dhoot, Chairman & Managing Director, Videocon, said that the company believes the total reserve in Brazil is three to four times of Oil and Natural Gas Corporation’s Bombay High discovery. The production will take about two and half years.
Cairn Pulls out of Sri Lanka Oil Fields Mumbai: Cairn India has withdrawn its offshore fuel and natural gas explorations within the Mannar Basin in Sri Lankan waters due to due to the fall of fuel prices in the world market. The company has instead decided to further strengthen its oil production from its fields in Rajasthan in India. According to reports, the Sri Lankan government has not abandoned its efforts of commercially exploiting the natural gas deposits discovered by Cairn India within the Mannar Basin, it has begun negotiations to attract other entities for this process. In July 2008 Sri Lanka entered into an agreement with Cairn India for fuel and natural gas exploration in one block of the Mannar Basin. The extent of this block is 3,400 square kilometres, the government had allowed Cairn India to drill to a depth of between 200 to 1,800 metres. A Norwegian company, TGSNOPEC Geophysical Company discovered fuel deposits off the coasts of Mannar and following this the Sri Lankan government divided this area into eight blocks.
Venezuela to Boost India Oil Supplies New Delhi: Venezuela, the OPEEC member country, plans to significantly increase crude oil supply to India and is negotiating with Reliance Industries, its major customer, said Eulogio Del Pino, Head, Petroleos de Venezuela SA (PDVSA), Venezuela’s national oil company. Reliance, the operator of the world’s biggest refinery complex at Jamnagar, and Essar Oil, which also runs a large refinery, are key customers of PDVSA, consuming 500,000 barrels per day of the country’s exports of about 2.4 million bpd. China absorbs another 550,000 bpd. Top executives said the two Asian giants would purchase half of Venezuela’s output when it more than doubles to 6 million bpd by 2019 with the help of its long-term investment plan of USD 143.7 billion. www.oswindia.com
RIL Lowers US Shale CAPEX Mumbai: In the back of falling crude price, Reliance Industries Ltd (RIL) has cut capital expenditure on its US shale gas business due to lower prices, while asserting that it plans to step up exploration and production activity in its Indian assets. The company said that it has lowered capital expenditure on its shale gas business for 2015-16 by 30 per cent year-on-year to USD 860 million. RIL’s shale gas business, which had posted strong growth in previous quarters, reported a decline in revenue and profits due to low volumes and sharply lower realisations. The company, which has so far invested USD 8.1 billion on shale gas in the US, has already scaled down operations in response to lower prices. The company holds stake in three joint venture companies in the US for shale gas and has reduced activity across all of them to cap operational expenses.
India to Invest More in Mozambique Hydrocarbon New Delhi: India plans to invest another USD 6 billion by 2019 in the Mozambique’s Rovuma gas field, said Dharmendra Pradhan, Oil Minster who has just returned from a visit to the African nation. State-run firms ONGC Videsh, Oil India and Bharat Petroleum have already invested that much in the field and hold a combined 30 per cent interest in the Rovuma Area-1, which is estimated to have recoverable gas reserves of up to 75 trillion cubic feet. He said that Mozambique is an important destination for India’s energy security and the two countries are working on enhancing cooperation. The Rovuma field will have its first output on the market by 2019. India may or may not import liquefied natural gas (LNG) from Rovuma fields and the decision to import will depend on the market situation, including the price available to gas produced in Mozambique, Pradhan said.
Jagdishpur-Haldia Pipeline Project Commenced Kolkata: The first phase of the Jagdishpur-Haldia pipeline project of GAIL (India) Ltd has commenced after Dharmendra Pradhan, Minister of State (Independent Charge) for Petroleum and Natural Gas inaugurated the project office in Patna. ‘Jagdishpur-Haldia Pipeline has been heralded onto the national agenda as part of Government’s vision of doubling the natural gas pipeline network to over 30,000 km in next five years,” the company said in a statement. GAIL is taking up the first phase of this Pipeline which involves laying of approximately 750 km of pipeline at an estimated expenditure of Rs. 39.57 billion. The capacity of Phase-I Pipeline is 7.4 million standard cubic metres a day (mscmd) and that of entire Jagdishpur – Haldia Pipeline will be 16 mscmd. “While supplying gas to anchor load customers like Gorakhpur and Barauni fertilizer plants and Barauni Refinery, the first phase of the pipeline will also cater to domestic needs through city gas distribution development in cities like Varanasi and Patna when the authorizations for the same are accorded by Petroleum & Natural Gas Regulatory Board (PNGRB),” GAIL’s statement added. Of the total 750 km in the first phase, 413 km of pipeline will be laid in Bihar covering nine districts. “The Jagdishpur-Haldia pipeline is a crucial infrastructure project that can make available clean and green fuel to develop the states in Eastern India,” said Pradhan.
Offshore World | 40 | April - May 2015
india news Total, MRPL to Start Fuel Retailing
Cambay Basin Holds 206 Bcf Gas in One Zone
Mumbai: Total, the French energy company, talks with state-run Mangalore Refinery and Petrochemicals Ltd (MRPL) to start fuel retailing in India.
H Ku m a r, M a n a g i n g Director, MRPL
It is not yet clear whether the agreement, if reached, will apply to all or just a few outlets. Similarly, the two companies will have to work out whether they want to use a common brand or separate brands at outlets which dispense products from both companies.
“There was a proposal from Total for some partnership. But we will need government permission for that. So it’s premature to discuss it,” said H Kumar, Managing Director, MRPL, without elaborating on the nature of the proposal from Total.
ONGC Agrees to Take over Tapti Field New Delhi: The abandoned assets of the western offshore Tapti gas field will take over by Oil and Natural Gas Corp (ONGC) from it joint venture partners Reliance Industries and BG. With Tapti output declining rapidly, partners in the Panna-Mukta and Tapti fields - RIL, BG and ONGC, have decided to abandon the field. Gas output from the field has almost halved to 14.2 billion cubic feet (bcf ) in 2014-15 while oil production was 0.2 million barrels, down 22 per cent from previous fiscal. ONGC official said that the company plans to use the Tapti field assets, which include sub-sea pipelines and gas gathering stations as well as process platform, to advance production of gas from its neighbouring Daman field.
Mumbai: Cambay basin discoveries in Gujarat holds 206 billion cubic feet (Bcf ) of gas and 8 million barrels of condensate reserves in just one zone, said Oilex, the operator of the field. “RISC Operations, an Australia-based, internationally recognised independent petroleum advisory group, has completed a resource report of the Eocene Formation of the Cambay Field,” Oilex said in a statement. The Y zone in the Cambay block holds ‘2P reserves (proved and probable) of 206 Bcf gas and eight million barrels of condensate,’ it said. Oilex said Unrisked Contingent Resources in zone Y together with another zone, X, comes to 720 Bcf gas and 52.8 million barrels of condensate. In oil and gas terminology, 2P reserves as considered more accurate with 50 per cent certainty of being recovered or produced. Contingent resource has only 10 per cent chance of being produced. The Cambay block has a third zone, Z and contingent resource across the three zone may be as high as 12 trillion cubic feet.
Indian Strategic Oil Reserves are in Advance Stages New Delhi: In the back of low crude price, it is welcome news that India is forging ahead on creating a dedicated strategic oil reserve. There has been movement on this front in the past month or so. The special purpose vehicle responsible for the construction and maintenance of India’s oil reserve, the Indian Strategic Petroleum Reserves Ltd (ISPRL), has finished constructing one storage facility at Visakhapatnam, where it can hold about nine million barrels. Two more facilities in Mangaluru and Padur (both on the West Coast) with another 30 million barrels of capacity are expected to be ready by October. The Budget allocated ` 49000 million for crude oil purchases for this strategic reserve. This would buy about 13 million barrels at current prices.
India Pitches for Iranian Gas Field New Delhi: With easing of Western sanctions against Iran in sight, India has made a renewed pitch to get rights to develop ONGC-discovered Farzad-B gas field in the Persian Gulf. A high level delegation compromising of officials from the ministries of finance and petroleum as well as executives from ONGC Videsh and Mangalore Refinery and Petrochemicals Ltd (MRPL) visited Tehran to re-engage with Iran. The talks centered on getting development rights to the Farzad-B gas field in the Farsi block as well as on the possibilities of setting up gas-based petrochemical/urea plant in Iran, sources privy to the development said. The Farzad-B gas field may hold an estimated 21.68 Tcf of in-place reserves, of which 12.8 Tcf can be recovered. The reserves in Farzad-B are almost thrice the largest gas field in India.
India Looks to Diversify its Crude Imports New Delhi: Amid the volatile in Middle East, India is looking at Mexico to raise its crude imports strategy. Oil Minister Dharmendra Pradhan on his maiden visit to Mexico sought deeper collaboration with the Latin American nation that is opening up to foreign companies. As part of strengthening bilateral ties through enhanced cooperation in the energy sector, ONGC Videsh Ltd (OVL), the overseas arm of state-owned explorer ONGC, has decided to open a dedicated office in the Latin American nation. Pradhan on a two-day official visit to Mexico held talks with his counterpart, Minister of Energy of Mexico Pedro Joaquin Caldwell. He also met Minister of Economy Ildefonso Guajardo Villareal and CEO of national oil company of Mexico PEMEX, EmilioLozoya Austin.
Offshore World | 41 |April - May 2015
www.oswindia.com
india news GAIL Appoints Subir Purkayastha as Director (Finance)
RIL Plans to Triple Production from KG-D6 by 2021-22
Mumbai: GAIL India, the largest state-owned natural gas processing and distribution company, has appointed Subir Purkayastha as the Director of Finance. A Chartered Accountant and Company Secretary by profession, Subir Purkayastha has a rich experience of nearly 30 years in the areas of Corporate Finance and Treasury including Forex Risk Management, Capital Budgeting, Corporate Subir Purkayastha, Director (Finance), GAIL Budgets, Corporate Accounts, Finalization of Long Term LNG and Gas Agreements, Liquefaction India and Regasification Terminal Service Agreement, Shareholders Agreements and Joint Ventures Agreement etc.
Mumbai: Reliance Industries and its partner BP plc will nearly triple natural gas production from their eastern offshore KG-D6 block by 2021-22 in anticipation of a ‘right’ gas price covering their exploration risk.
Prior to his appointment as Director (Finance), he held the position of Executive Director (Finance & Accounts) in GAIL. Additionally, Purkayastha also holds the position of Director in GAIL Gas (USA) Inc, Ratnagiri Gas and Power Pvt Ltd (RGPPL) and TAPI Pipeline Company Limited. He joined GAIL in 1985 as a Finance Officer and rose to the position of Executive Director.
NOCs to Invest Heavily in E&P in 3 Years New Delhi: Even though recent falling global crude prices, India’s national oil companies are likely to invest around USD 20 billion (` 1,25,000 crore) in developing oil fields services, exploration & production in between 2015-2017, according to a new study by industry body PHD Chamber of Commerce and Industry and global consultancy Ernst & Young. The report said that in the present scenario oil field services (OFS) companies would be looking to expand service capabilities which would be realised through strategic joint venture opportunities both onshore and offshore. The report also said that the refining capacity of national oil companies would rise to 245 MMTPA by 2018 from current level of 223 MMTPA.
Govt to Ensure Faster Approval for Exploration New Delhi: To give a major impetus to the exploration activities in the country, the oil ministry has accelerated the pace of approvals for explorers’ budgets and work programmes, ensuring that companies begin the current fiscal with clear investment plans, as opposed to previous years when operators would complain of uncertainty due to delays. India currently imports 78 per cent of its crude oil requirement. Prime Minister Narendra Modi has set an ambitious target of raising crude oil output to cut import dependence by 10 per cent in seven years. The government held about 100 meetings of the management committee (MC) in March, many times more than the usual number of such meetings, to consider and approve operators’ annual budgets and work programmes, an oil ministry official said. The management committee comprises representatives of the government, regulator (directorate general of hydrocarbons) and the operator, and all must agree on the operator’s work-plan. www.oswindia.com
KG-D6 block, which produced an average of 11.5 million standard cubic meters per day of gas in January-March quarter, will see output rise to 30-35 mmscmd by 2021-22, according to a presentation RIL-BP gave at a meeting in Prime Minister’s Office (PMO). The output rise will come from R-series, 4-satellite and other satellite fields and MJ-1 fields, they told the meeting which was attended by Principal Secretary to Prime Minister Nripendra Misra and Cabinet Secretary Ajit Seth.
British Petroleum to Invest in Indian Hydrocarbon: Oil Min New Delhi: BP Exploration (Alpha) Limited (BPXA), a wholly owned subsidiary of BP plc, is planning investment of USD 477 million (including USD 259 million of Capex investment) and proposed investment of USD 2300 million in Indian hydrocarbon sector, informed Dharmendra Pradhan, Minister of State (I/C) for Petroleum & Natural Gas, the Lok Sabha. The requirements interalia, include investment or proposed investment of Rs 2000 crore in exploration or production, refining, pipelines or terminals leading to additionality to the existing assets and /or creation of new assets in the eligible activities.
ONGC to Invest on Exploration, to Develop Deepwater Assets Kolkata: State-run Oil and Natural Gas Corporation (ONGC) plans to spend about Rs 14,000 crore on exploration this fiscal and is seeking partnerships to develop its deepwater assets at a time when low oil prices have made technology and talent cheaper, its said Ajay Kumar Dwivedi, the new Exploration Chief of the company. He said that we are trying to cover all the acreage we have through new 3D seismic data. ONGC is exploring the possibility of technology partnerships with firms that have competence in deepwater exploration. Dwivedi didn’t specify if a possible technology partnership could also expand to an equity partnership.
IOCL Commissions Paradip Refinery New Delhi: Indian Oil Corp, the country’s biggest refiner, has began crude processing at its 300,000 barrel per day (bpd) Paradip refinery and aims to fully commission the plant in six months. Output from the USD 5.2 billion Paradip refinery will compete with rising supplies of fuels from new and expanded plants in the Middle East and China, putting pressure on the profit margins of Asian refiners. The Paradip refinery is the most sophisticated of IOC’s 11 plants. With the commissioning of Paradip refinery, IOC’s overall refining capacity has been increased to 1.61 million bpd, about 35 per cent of the country’s 4.6 million bpd capacity.
Offshore World | 42 | April - May 2015
india news Ajay Dwivedi Appoints as Director (Exploration) Government to Auction Marginal Fields of ONGC New Delhi: The government will soon auction 69
Ajay Dwivedi, Director (Exploration), ONGCL
New Delhi: Ajay Kumar Dwivedi has taken over as the Director (Exploration) in the Maharatna Board of India’s flagship explorer ONGC. A postgraduate from Kanpur University, Dwivedi has a distinguished career of more than 34 years in ONGC, holding key exploration-related assignments at different work centers starting from Mumbai, moving to Dehradun in North, Chennai in South, Jorhat in east, Vadodara in the west and MBA Basin in Kolkata, before taking over Western Offshore as Basin Manager.
Dwivedi has managed ONGC’s prime exploration portfolios in Western Offshore: Kutch-Saurashtra, Mumbai Offshore and Kerala-Konkan Basin. Under his stewardship, Western Offshore Basin has achieved 109 million metric tonnes of Oil plus Oil Equivalent Gas including 4 discoveries. His keen analytical acumen coupled with a people-centric approach has been his forte. Mr Dwivedi was involved in redesigning structure, systems and business processes aligned to Asset based model and also looked after the implementation of this new approach in two pilot projects.
small and marginal oil fields of state-owned ONGC and Oil India to private firms as a precursor to a full fledged licensing round, said Saurabh Chandra, Oil Secretary.
Saurabh Chandra, Oil S ecretar y, Ministr y of Petroleum and Natural Gas
The fields will be bid out on the basis of revenue share or the share of oil and gas a bidder offers to the government upfront, and work programme, he said.
Oil Minister Says India Eyeing Acquisitions Abroad New Delhi: In the back of falling crude, India is looking at acquiring fuel assets abroad and also to negotiate better for developing domestic projects, said Oil Minister Dharmendra Pradhan.
ONGC Agrees to Take over Tapti Field Mumbai: ONGC Videsh Ltd (OVL), the unlisted overseas arm of state-run petroleum explorer Oil and Natural Gas Corporation (ONGC), has updated its net profit for the financial year ended march (2014-15) stood at Rs 1,904 crore, a 57 per cent slump as compared to the previous year (2013-14). “Despite higher production during FY15, the decrease in profit is mainly due to lower oil prices, higher financing cost including exchange loss, higher depletion charge and impairment provision in one of the assets,” the company said in a statement. OVL’s crude oil production last fiscal increased by a marginal 0.8 per cent to 5.5 million tonne (MT) even as natural gas production jumped 16 per cent to 3.3 billion cubic meter (bcm). Overall, production of oil and oil equivalent gas was up 6.1 per cent to 8.8 million tonne of oil equivalent (MTOE).
BPCL Gets Green Nod for Expansion Project Kochi: Environment Ministry has been given its nod to BPCL’s Kochi refinery expansion project worth of Rs 4,588 crore, paving way for its ambitious plans to produce some niche petrochemicals that are mostly imported into the country. According to state-run Bharat Petroleum Corporation Ltd (BPCL), the proposed Propylene Derivatives Petrochemical Project (PDPP) consists of three major process units -- acrylic acid, oxo-alcohol and acrylates. “About 329 KTPA of products will be manufactured from 250 KTPA of Propylene feed stock in the PDPP complex. Matching Utilities and off-site facilities are also envisaged as part of the project,” the company said.
The Oil Ministry has floated a note for Cabinet Committee on Economic Affairs (CCEA) for auctioning of the fields that state-owned firms are surrendering because they were uneconomical to develop due to government’s subsidy sharing mechanism.
Dharmendra Pradhan, Minister of State (I/C ), Petroleum & Natural Gas, GoI
Pradhan said that the ministry and state-run energy companies are committed to work towards Prime Minister’s mandate of reducing India’s oil import dependence by 10 per cent over the next seven years from 78 per cent at present.
“We are focusing oil diplomacy efforts on Russia, Latin America and Africa. We are also exploring Gulf, where we have an opportunity for a breakthrough. We are talking to some of the Gulf countries and exploring opportunity to have a partnership in offshore exploration there,” he said.
Huge Invest for KG Basin Mumbai: State-run Oil and Natural Gas Corporation and its partner, Cairn India, are readying to spend between USD 750 million and USD 1 billion (` 4,800-6,400 crore) in the Nagayalanka onshore block in the Krishna-Godavari Basin. Officials from ONGC and Cairn India said the finds were promising and they were set to commence production next year. The investments would be over three to five years, on creation of infrastructure, production facilities and transportation. “We are very positive on the block. In addition to oil, there are small amounts of gas with recoverable reserves of around 70 billion cubic ft,” said an ONGC official. From the Declaration of Commerciality documents, Nagayalanka has oil resources of about 320 million barrels, of which about 40 million can be recovered.
Offshore World | 45 |April - May 2015
www.oswindia.com
international news Liquidation Stacks up in Global Oil Industry
Iran says OPEC unlikely to Cut Production
London: In the back of oil price plunge, almost two dozens oil & gas groups worldwide have triggered a string of bankruptcies, debt defaults. Drop on Brent crude prices has put smaller, cash-strapped producers in financial trouble, according to City analysts, with up to a quarter of a million barrels a day of oil supply at risk of being curtailed. Even after a rebound in prices from January’s lows, there have been “numerous small corporate casualties” across the globe, and especially in the US and Canada, says a report by Bernstein Research. It has identified 22 companies ‘under duress’ from lower oil prices, with USD 33 billion (Dh121 billion) of assets, including eight that have filed for bankruptcy protection and others warning of insolvency or deferred interest payments on bonds.
Gulf Capital to Invest in Egypt Abu Dhabi: Gulf Capital, the Abu Dhabi based investment company, has signed a Dh92 million debt financing agreement with Egyptian petrochemical company Carbon Holdings to support their mega industrial projects in Ain Al Sokhna on the Suez Canal in Egypt. The five-year loan facility was extended by Gulf Capital’s credit fund, GC Credit Opportunities Fund to finance the development and expansion of three of Carbon Holdings petrochemical projects including Egypt Hydrocarbon Corporation, Oriental Petrochemicals Corporation and Tahrir Petrochemicals Corporation. Egypt held a major economic summit in the Red Sea resort town of Sharm Al Shaikh in March in order to attract investments and boost their economy. Deals worth more than USD 138 billion were signed on the first two days of the conference in addition to financial pledges by Gulf countries including Kuwait, Saudi Arabia and the United Arab Emirates.
YPF Strikes Oil in South Patagonia Patagonia: YPF, Argentina’s oil and gas government managed corporation, has announced the discovery of a new oil field in Los Caldenes, in Patagonia Rio Negro province, with resources estimated in 40 million oil barrels. Manzano Grande x-1 is the second ‘discoverer well’ in this block of 115 square kilometers located north of the Cinco Saltos town. “Last year we drilled another well of similar characteristics in Los Caldenes with resources calculated in 15 million oil barrels. Based on this information and analyzing seismic studies we were able to reach this new finding that broadens the resource horizon within the block,” affirmed Carlos Colo, YPF Exploration Executive Manager. Argentina hopes that by increasing investment in the vast Vaca Muerta oil and gas shale formation, also in southern Patagonia, it will be able to reduce energy imports, which among other items and policies are draining its low foreign reserves. www.oswindia.com
Dubai: OPEC is unlikely to change its production strategy when the group meets in its next meeting, said Bijan Zanganeh, Oil Minister, Iran.
Bijan Zanganeh, Oil Minister, Iran
“Lowering Opec’s production ceiling requires consensus between all members ... under current conditions it seems unlikely that the OPEC production ceiling will change,” added Zanganeh.
Lower oil prices have caused pain for Opec’s less wealthy producers, including Iran. The next meeting meeting in Vienna is likely to hear renewed demands from some OPEC members for a reduction in the amount of oil pumped; even officials from countries which favour a curb see it as unlikely. Iran wants other Opec members to make way for a rise in its exports if it succeeds in reaching a final deal with six world powers over its nuclear programme.
Oil Found at Zebedee Well New York: Premier Oil has announced that the Zebedee well, located in PL004b in the Falkland Islands, discovered 81 ft of net oil-bearing reservoir and 55 ft of net gas-bearing reservoir. The well penetrated multiple targets in the Cretaceous F2 and F3 formations with a total hydrocarbon net pay of 136 ft. The reservoir at both the Hector and Zebedee intervals is of good quality, and the results are in line with prognosis. Good oil shows were recorded at the deeper F3 targets, but at this location the sands are not well developed. The well will now be plugged and abandoned as a successful exploration well. Ocean Rig’s Eirik Raude semisubmersible will then drill the first exploration test of the Elaine/Isobel fan complex in the southern part of the North Falkland Basin with the Isobel Deep well. The results of this well are expected in late April.
Esso Strikes Oil Offshore Guyana Georgetown: Esso Exploration & Production Guyana Ltd, a unit of ExxonMobil Corp, reported an oil discovery on Stabroek block 120 miles offshore Guyana. The Liza-1 well, which was spudded and drilled to 17,825 ft in 5,719 ft of water, encountered more than 295 ft of oil-bearing sandstone reservoirs, Esso E&P said. It is the first well drilled by the company on the 6.6-million acre Stabroek block, said Stephen M Greenlee, President, ExxonMobil Exploration Co. Over the coming months, Esso E&P will work to determine the commercial viability of the discovered resource and evaluate other resource potential on the block, he added. Esso E&P holds 45 per cent interest in the prospect. Partners include Hess Guyana Exploration Ltd 30 per cent and CNOOC Nexen Petroleum Guyana Ltd 25 per cent.
Offshore World | 46 | April - May 2015
international news Egypt to Launch LNG Purchase Tender
Oil Discovery at Liuhua 20-2 Block
Cairo: Egypt is all set to launch what will be a highly sought after tender to buy up to USD 3 billion (Dh11 billion) of liquefied natural gas (LNG) over 2016 and 2017, a senior state officials and trade sources said.
Beijing: China National Offshore Oil Corp Ltd (CNOOC) has announced that it has made a mid-sized discovery at the Liuhua 20-2 block in the Eastern South China Sea. The Liuhua 20-2 structure is located in Northern Slope Belt of Baiyun Sag in the Pearl River Mouth Basin of the South China Sea with an average water depth of about 1,280 feet (390 meters).
Egypt has emerged as a major new market for LNG as it looks to ease its worst energy crunch in decades. Falling output and rising demand have transformed it from an oil and gas exporter to net importer. In 2015, it secured USD 2.2 billion worth of LNG largely from European traders in its first-ever tender to supply a newly installed import terminal moored on its Red Sea coast.
ADCO Awards EPC Contract to Develop Mender Field Abu Dhabi: The Abu Dhabi Company for Onshore Petroleum Operations (ADCO) has awarded the Engineering, Procurement and Construction (EPC) contract valued USD 334 million for the development of the Mender field to China Petroleum Engineering and Construction Corporation (CPECC). With a production capacity of about 20,000 barrels per day, the Mender field project is of strategic importance since it will help boost Adco’s daily crude production from 1.6 mbpd barrels to 1.8 mbpd by 2017. The contract covers the construction of gathering stations, pipelines and power transmission lines, as well as sewage systems.
China Makes Biggest Tight Oil Discovery to Date Beijing: State-run CNPC’s unit PetroChina has reportedly made the biggest tight oil discovery yet - in the Changqing oilfield in the western province of Shaanxi. The find is estimated to contain more than 730 million barrels in geological reserves. This marks CNPC’s largest tight oil discovery to date in the onshore play, Reuters quoted the company-run newspaper China Petroleum Daily as reporting. According to the paper, technically recoverable reserves may be significantly lower than the 730 million barrels (100 million tonnes) of geological reserves. The paper said that tight oil production capacity in northwest China’s Ordos basin, where the field is located, is more than 1 million tonnes per day.
The discovery well LH20-2-1 was drilled and completed at a depth of about 9,744 feet (2,970 meters) and encountered oil pay zones with a total thickness of 116 feet (35.2 meters). The oil production of the well tested around 8,000 barrels per day and the crude oil density is approximately 0.75. The successful exploration of Liuhua 20-2 has further proved the huge exploration potential of Baiyun Sag in the Pearl River Mouth Basin, and Baiyun Sag is expected to become the new reserves growth area of deepwater exploration of crude oil in South China Sea.
Chayvo Field Produces millionth ton of Crude Oil Moscow: Russian oil company Rosneft produced one millionth ton of crude oil at the Northern Tip of Chayvo field on the shelf of the Sakhalin Island. The company has said that the milestone was reached just eight months after drilling of the first well at the field was completed in September 2014 from the onshore site. RN Shelf Far East, a Rosneft subsidiary, is currently producing crude oil at the field with two extended-reach wells that are 10,825 m and 9,923 m of measured depth. Their cumulative daily output amounts to over 5,000 million tons.
Uruguay has Hefty NatGas Potential: ANCAP Montevideo: Energy importer Uruguay may be sitting atop shallow-lying natural gas reserves as well as previously identified oil resources, Uruguayan state oil company ANCAP said on Thursday, citing seismic studies by an Australian firm. The 2D seismic study by Petrel Energy Limited indicates as much as 910 million barrels of oil and 3.1 trillion cubic feet of gas may lie under the soil in the Salto and Piedra Sola regions, based on a recovery rate of 30 per cent on estimated reserves. ANCAP President Jose Coya said the oil and gas deposits were located at “relatively shallow depths between 1,500 and 2,000 meters.”
Maersk Oil Makes New Discovery in Danish North Sea
Eni Confirms Gas Find Offshore Libya Tripoli: Italy’s Eni has confirmed a new discovery of gas and condensates offshore Libya, in the Bouri North exploration prospect in Area D, 140 kilometers from the coast and 20 kilometers north of the production field of Bouri. Eni reports that the discovery was made through the A1-1/1 well, drilled at a water depth of 125 meters, which encountered gas and condensates in the Metlaoui Group of Eocene age. During the production test, constrained by surface facilities, the well flowed 1,340 Boepd with a ‘64/64‘ choke size. In production configuration, the well is estimated to deliver in excess of 3,000 Boepd.
Copenhagen: International energy firm Maersk Oil announced that it has made a hydrocarbon discovery in the Danish North Sea. The Maersk Group subsidiary said it found hydrocarbons in the exploration well Xana-1X, which was drilled in license 9/95 in the northern part of the Danish sector. Maersk Oil’s Xana-1X well was drilled in a water depth of 223 feet to a total drilling depth of 16,637 feet in the Jurassic formation. Martin Rune Pedersen, Managing Director, Maersk Oil Danish Business Unit said in a company statement that the drilling of the high pressure, high temperature exploration well has been completed. At present the partners are in the process of assessing the technical and commercial implications of the discovery and looking at potential follow-up.
Offshore World | 47 | April - May 2015
www.oswindia.com
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 ($)
Status
Bahrain Deep Gas Exploration Project
Bahrain
-
Execution
Bahrain Field Development Project
Bahrain
1,500,000,000
Execution
Atrush Block
Iraq
-
Execution
Halfaya Contract Area Development
Iraq
-
Execution
Rumaila Oil Field Development
Iraq
15,000,000,000
Execution
West Qurna Phase 2 Contract Area
Iraq
30,000,000,000
Execution
Kuwait Manifold Project
Kuwait
-
Bidding
Kuwait New Facilities
Kuwait
46,000,000,000
Bidding
Block 61 - Khazzan and Makarem Gas Fields Development
Oman
650,000,000
Execution
Oman Block 38
Oman
-
Execution
Ras Markaz Oil Storage Terminal
Oman
500,000,000
FEED
Al-Shaheen Offshore Field Development
Qatar
6,000,000,000
Execution
Bui Hanine Field Expansion
Qatar
11,000,000,000
Execution
ISND Field Development - Phase 5
Qatar
3,000,000,000
Bidding
Al-Khafji Hout Field Offshore & Onshore Facilities
Saudi Arabia
-
Execution
Contract Area A - Lukoil Concession
Saudi Arabia
215,000,000
Execution
Saudi/Kuwaiti Onshore Partitioned Neutral Zone
Saudi Arabia
-
Execution
Wasit Gas Development Program - Processing Facilities
Saudi Arabia
-
Execution
Bab Sour Gas Project
UAE
10,000,000,000
Bidding
GASCO - Hail Sour Gas Field Development
UAE
1,000,000,000
FEED
Sahil, Qusahwira & Mender Fields
UAE
1,000,000,000
Bidding
Sharjah Western Offshore Concession
UAE
135,000,000
Execution
Africa
Country
Value ($)
Status
Angola - Block 5
Angola
27,000,000
Execution
Block 31 Offshore Development
Angola
4,000,000,000
Execution
Abu Sennan Concession (Block III)
Egypt
-
Execution
North Alexandria Concession
Egypt
-
Execution
Middle East
www.oswindia.com
Offshore World | 48 | April - May 2015
project update
West Nile Delta Field
Egypt
12,000,000,000
Execution
Rift Valley Block
Ethiopia
-
Execution
Block Tano 2A
Ghana
-
Execution
Alen Field
Guinea
1,600,000,000
Execution
CI-514 License
Ivory Coast
-
Execution
Block 14T
Kenya
-
Execution
Kenya - Block 2B
Kenya
-
Execution
Blocks LB-08 and LB-09
Liberia
8,000,000
Execution
Block C19
Mauritania
-
Execution
Blocks C8, C12, and C13
Mauritania
-
Execution
Lalla Mimouna Area
Morocco
-
Execution
Tendrara Lakbir Licence
Morocco
-
Execution
R1/R2 Permit
Niger
-
Execution
Oil Prospecting Licence (OPL) 233
Nigeria
19,000,000
Execution
OML 120-Oyo Field
Nigeria
600,000,000
Execution
Mtwara & Lindi Licences (Ruvuma PSA)
Tanzania
-
Execution
El-Bibane Offshore Re-development Project
Tunisia
-
Execution
Block 2 - Butiaba Area
Uganda
-
Execution
Caspian Region
Country
Value ($)
Status
Absheron Block
Azerbaijan
100,000,000
FEED
Azeri-Chirag-Gunashli (ACG) Project
Azerbaijan
20,000,000,000
Execution
Gunashli Oil Field Development
Azerbaijan
500,000,000
Execution
Shah Deniz Stage 2 Development
Azerbaijan
28,000,000,000
Execution
Ahwaz Oil and Gas Field (Bangestan Layer)
Iran
-
Execution
Khangiran Gas Field
Iran
-
Bidding
South Pars Phases 13 & 14 Project
Iran
5,000,000,000
Execution
South Pars Phases 17, 18 Development
Iran
4,850,000,000
Execution
Yadavaran Oilfield Development
Iran
2,000,000,000
Execution
Yaran Oil Field Development
Iran
-
Execution
BNG Contract Area
Kazakhstan
100,000,000
Execution
Galaz Contract Area
Kazakhstan
-
Execution
Karachaganak Project
Kazakhstan
15,000,000,000
Execution
Kashagan Oilfield
Kazakhstan
136,000,000,000
Execution
Tengiz Field
Kazakhstan
23,000,000,000
Execution
Zharkamys West 1
Kazakhstan
450,000,000
Execution
Bazhenov and Achimov Tight Oil Formations
Russia
300,000,000
Execution
Chayanda (Chayandinskoye) Field
Russia
-
Execution
Lagansky Block
Russia
-
Execution
Prirazlomnoye Oil Field Development
Russia
5,000,000,000
Execution
Termokarstovoye Gas Condensate Field Development
Russia
900,000,000
Execution
Uvat Project Development
Russia
5,500,000,000
Execution
Offshore World | 49 | April - May 2015
www.oswindia.com
products
NITROGEN REGULATOR
OIL & GAS DRILLING ELEVATOR
Noble Engineers offers range of gas regulators characterized by it’s sturdy design with the only operating considerations being good gas pressure regulation and flow control. These regulators are a predominant product in this welding aid class. They are forged body regulators with rough internal surfaces, relatively large internal volume and with a diaphragm of neoprene or other type of elastomer. They are highly efficient to control a narrow list of gases such as acetylene, oxygen, air, argon, carbon dioxide, helium, nitrogen, and mixtures of these gases. Noble Engineers deliver gas regulators that are in compliance with the ISI standards. The different types of gas regulators include single stage single meter, single stage double meter as also multi-stage with double meter.
To fit the needs of natural gas and petroleum industry, Omeshwar Steel put forth a broad array of oil and gas drilling elevators. Offered elevators are hinge devices with handles that are used for wrapping around the tool joint of drill pipe, casing or lift nipples (for collars) for facilitating the lifting and lowering of the drill string. The demand of offered elevators are widely used as these need minimum maintenance.
For details contact: Noble Engineers C-203 Ekta Residency, Plot No: 14, Sector-6, Khandeshwar New Panvel, Navi Mumbai 410 206
MULTI-STAGE GAS REGULATOR TMulti-stage gas regulator is suitable for 230 bar inlet pressure and imported safety pressure gauges designed for 300 bar service pressure, confirming to EN-837 Standards. Features much bigger plenum chamber (2nd stage plenum chamber is 5 times the volume of 1st stage plenum chamber) ensures outlet pressure stability and steady flow of gases; SS diaphragm in 1st stage can withstand shock of fully cylinder pressure; neoprene in 2nd stage gives flexibility and better pressure regulation; and fire-retardant valve material. For details contact: Arc Welding Co 7, CSC-1, DDA. Market Nr Mother Dairy Booth, G H-14, Paschim Vihar, Nr Peera Garhi New Delhi 110 087 Tel: 011-25289751, 25288693 Fax: 91-011-25288693
TETRA GAS DETECTOR Tetra 3 SSS-PGD-2303 top display personal multi-gas monitor is a compact and easy to use diffusion based detector. It is a diffusion based water-proof detector that is used in water, telecoms, food, brewing or hydrocarbon sectors. For details contact: Super Safety Services 5 Indu Chambers, 349/353, Samuel Street, Masjid (W) Mumbai 400 003 Tel: 022-23473300, 23473311 Fax: 91-022-23471133 www.oswindia.com
Offered elevators have precise internal diameter, with an appropriately profiled shoulder for the purpose of accommodating the lower profile of a tool joint. These elevators work on latch mechanism has that stop the opening under radial loads of up to hundreds of tons. Offered elevators need to resist cross-axial loads of the weight of the pipe joints For details contact: Omeshwar Steel 8 Jay Jayant Estate, Opp: Kewal Weigh Bridge, Rakhial Ahmedabad, Gujarat 380 023, Tel: 079-22740875 E-mail: info@omsteeltube.com / omeshwarsteel@yahoo.co.in
PORTABLE MULTI GAS DETECTOR Industrial & Commercial Services offers Cannonball 3 continuous sample draw multi-Gas detectors from Gas Alarm Marketing, for detection and monitoring multigases in confined area, process plants, etc. Cannonball 3 includes a sealed case coupled with an oversized, scratch-resistant, self-healing display. The Cannonball 3 can be configured to detect oxygen, combustible gases and vapours and a wide variety of toxic hazards. The optional high sensitivity HC-PPM LEL provides broad range monitoring at PPM levels for nearly all toxic and combustible gases and vapours to address a wide range of health and safety concerns. The gas sample is drawn into the Cannonball 3s internal sensor chamber by a field-replaceable internal pump module. As an option, the Cannonball 3 may be equipped with a dilution pump module, which allows for the proper monitoring of combustible gases and vapours in oxygen-deficient or inert (oxygen-free) atmospheres without a dilution orifice or labour-intensive manual calculations. More features than any other Sperian gas detector and rugged enough for the harshest environment. For details contact: Industrial & Commercial Services Plot No: 47, Street No: 11, HMT Nagar, Nacharam Hyderabad, Telangana 500 076 Fax: 91-040-27159006
Offshore World | 50 | April - May 2015
products
GAS LEAKAGE ALARMS
GAS LEAK DETECTION SYSTEM
World-Tech Enterprises offers huge array of technically advanced gas leakage alarms in various specifications. Also, their gas leakage alarms are excellent in finishing and have long service life. On detection of gas leakage there are warnings/alarms at site of leakage and main panel. It can detect ignitable gas like LPG, CNG and town gas. Alarm sound is more than 50 dB. It can be used as a standalone gas leakage sensor.
GE Projects Pvt Ltd offers wide assortment of gas leak detection system in product range that includes small domestic gas leak detectors to simple gas leak detection system, which only gives an audio-visual alarm. Apart from that, these also includes highly sophisticated integrated system, complete with power back-up and display unit which indicates level of leakage as percentage of LEL or in PPM with pre-set alarm points. Also, GE Projects Pvt Ltd offer handy and portable gas leak detectors, which are very easy to operate and maintain. Both the systems are available for detection of all types of gases including flammable, toxic and other special gases.
For details contact: World-Tech Enterprises 146, 1st Main Road, Chamrajpet Mysore Road, B/h Nalanda Theatre Bengaluru, Karnataka 560 018 Tel: 080-26754896, 26756312
LPG AUTOMATIC SHUT OFF DEVICE Indus International offers LPG automatic shut off device. These are used for log cylinders, which saves human life and gas as well.Gas enters the automatic shut off device directly from the cylinder and is channeled into a chamber, where it passes the shutoff element. Gas is then channeled up out of the chamber and past the gauge pin. Gas then exits. The various uses of these all follow from this sequence. Importantly, the gauge pin is directly attached to the gauge and acts as a pressure detector, which causes the gauge to show changes in gas pressure via movement in the needle. The shut off mechanism works on the bernoulli principle. A sudden increase in gas flow (eg, from the hose rupturing) changes the pressure around the shut-off element, lifting it up and causing it to plug the exit to the chamber and stop the flow of gas completely. The shutoff element will stay in this position until you push down on the gauge. The gauge pin then pushes the shutoff element back down into the chamber, so resetting it ready for normal operation. For details contact: Indus International E-133, Greater Kailash-1 New Delhi 110 048 Tel: 011-41633313
LPG GAS DETECTOR H-tech Safety Care offers range of LPG gas detector by implementing best available technologies. Their devices are acclaimed for their compact size and rugged construction. For details contact: H-tech Safety Care 293, 2nd Flr, Arcot Road, Kodambakkam, Chennai 600 024
GE Projects Pvt Ltd offer innovatively designed Odor Monitors for abnormal temperature. Also supply detection system using Odor Sensors. The temperature detection system is normally installed on cables and which gives an odour depending on the temperature and which is sensed by the Odor Sensor thereby giving a warning before a major failure of cables takes place, thus preventing serious accidents. For details contact: GE Projects Pvt Ltd 1/5 & 1/6, DSIDC Factory Shed Khichri Puri, Block-3, Nr Gazipur New Delhi 110 091 Tel: 011-22784827, 65660399
OIL PURIFICATION & CLARIFICATION SYSTEM HMT offers compact oil purification and clarification system. Its application find its best use in curbing expenditure of oil to its fullest advantages by recycling and reusing the spent oil through this recovery system. The oil purification and clarification system OPCS-01, capacity 1,000 LPH is well suited for purification and separation of water from mineral oil, as well as for separation of liquid mixtures, or for the purification of fluid from solid constituents (dirt, dust, etc). Process of purification is separation of the two liquid phases from the solid content/ impurities and separating the two liquid phases from each other too. The high efficiency of separation of the two liquid phases is achieved by choosing the suitable regulating disc. Process of clarification is separation of the solid content/impurities from the liquid phase. The high efficiency of the clarification is achieved by minor manual adjustment in the purification bowl. HMT’s unique bowl design makes it possible to use the separator both as purifier and as clarifier with minor adjustments only. For details contact: Hmt Ltd H-2, MIDC, Chikalthana Indl Area Aurangabad, Maharashtra 431 006 Tel: 0240-2485008, 2485596
Offshore World | 51 | April - May 2015
www.oswindia.com
products
HYPER-GAS MKII HYPERBARIC HYDROCARBON MONITOR Unique Hydrographic Systems Pvt Ltd offers wide range of hyper-gas MKII Hyperbaric hydrocarbon monitor procured from trustworthy vendors. These are highly demanded due to their reliable performance and high durability. For details contact: Unique Hydrographic Systems Pvt Ltd A4, Electronic Sadan, No: 1, Mahape Circle, Nr GTL, Mahape Navi Mumbai 400 710 Tel: 022-27619939, 27619940 Fax: 91-022-27619976
Minda Emer Technologies Ltd offers LPG/CNG filling valve. It complies with AIS 028 requirements. A manual shut off knob on filler valve disconnects regulator from cylinder for service purpose. Micro switch acts as a safety feature by disconnecting the electric supply to starter motor when dust plug is taken out for CNG filling.The filling automatically gets cut off when the cylinder pressure becomes equal to dispenser pressure. For details contact: Minda Emer Technologies Ltd Village Naharpur Kasan, PO Nakhrola Manesar, Gurgaon Haryana 122 050
LPG MULTI-VALVES OMB Saleri Valves India Pvt Ltd offers range of LPG multivalves- ST that is specially designed for ring shaped and cylindrical tanks. Conforming to international standards, these valves not only allow free flow of LPG but also control the filling limit of the tank. High on performance, these multi-valves are resistant to corrosion and abrasion. For details contact: OMB Saleri Valves India Pvt Ltd Plot No: 490, Pace City 2, Hero Honda Chowk Gurgaon, Haryana 122 001
LPG/CNG PRESSURE REGULATOR Minda Emer Technologies Ltd offers assortment of LPG/CNG pressure regulator for pressure and fuel regulators that are developed using finest quality materials and sophisticated technology at vendors’ end as per customers’ specifications. For details contact: Minda Emer Technologies Ltd Village Naharpur Kasan, PO Nakhrola, Manesar Gurgaon, Haryana 122 050
CALIBRATION GAS MIXTURES & SPECIALTY GASES Cryogen is proud to be associated with Scientific and Technical Gases Ltd UK to offer a complete variety of Calibration Gas Mixtures, Standards for Industry Applications, UHP Gases and Specialty Gases. Some of the products that offered are multi-component hydrocarbon mixtures - CH4, C3H8, C4H10, etc; toxic mixtures and corrosive gases - H2S, SO2, Quad gases, Cl2, NH3, HCL, NO, NO2, PH3, etc; non reactive mixtures - CO, CO2, N2, O2, etc; LEL gas mixtures; mixtures suitable for all gas detection equipment (Draeger, MSA, Honeywell, BW, etc); UHP gases; specialty gases; etc. For details contact: Cryogen Analytical Laboratory 21 Shreeji Arcade, Almeida Road Panchpakhadi, Thane, Dombivli Maharashtra 400 602
LPG VACUUM VAPORISER
NITROGEN GASES Super Oxytech Pvt Ltd offers nitrogen gas (standard and UHP grade) using latest technology. Their quality analyst checks proper composition in liquid gases. For details contact: Super Oxytech Pvt Ltd 147/1/20 J N Mukherjee Road, Ghusuri, Howrah, West Bengal 711 107 Tel: 033-26559770, 26557280 Fax: 91-033-26551890 www.oswindia.com
LPG/CNG FILLING VALVE
The vehicle can be started in any mode, ie, petrol or LPG by selecting the mode in the switch. Whereas for easy starting in LPG mode press the choke provided in the switch for 2-3 seconds. The vehicle can be shifted from LPG mode to petrol mode only by shifting the switch. While shifting from petrol mode to LPG mode first finish off the petrol present in the carburetor by keeping the switch in the neutral mode. When the vehicle starts to stall, shift to the LPG mode. For details contact: SKN Group 12/3, Mile Stone, Delhi Mathura Road Faridabad, Haryana 121 003
Offshore World | 52 | April - May 2015
products
LPG PRESSURE REGULATOR
OIL PURIFICATION EQUIPMENT
Silicon Piped Gas Systems offer an extensive range of LPG pressure regulator that are durable in nature and have high strength. They are light in weight and are energy efficient in nature. Silicon Piped Gas Systems offer them in varied dimensions and are functionally advanced in nature. For details contact: Silicon Piped Gas Systems Plot No: 11, Brindavan Colony, A S Rao Nagar,ECIL Hyderabad, Telangana 500 062
GAS FLOW METERS Blue Bell offer various types of gas flow meters in industries as well as residential buildings and commercial malls. Blue Bell understands each application, in different elevation and pressure requirement. As per your requirement Blue Bell designs an individual metering system which can be accurate and robust. For details contact: Blue Bell 8B Lalbazar Street, 1st Flr, PO Box 2980, Kolkata 700 001 Tel: 033-40076595, Fax: 91-033-22488483
GAS SAFE Vardhaman Agencies offers gas safety and saving device. It cuts major hazardous gas leaks; facilitates in detecting gas leakage in system; indicates low level of LP gas in cylinders; avoids accidents; saves gas; etc. For details contact: Vardhaman Agencies Siddhi Sadan 180, Tikekar Road, Dhantoli Nagpur, Maharashtra 440 012 Tel: 0712-2436712
Pall presents the second in its family of HLP Series fluid conditioning purifiers – the HLP22 Oil Purifier. The HLP Series combines the water removal performance of mass transfer purifiers with high reliability and easeof-use to help ensure maximum equipment up-time and lowest cost of ownership – enabling you to focus on your process, and not your equipment. Pall HLP series purifiers come with the following standard features: dissolved water sensor (Pall Model WS10); low watt density heater (15 kw output); and condenser with gravity drain. For details contact: Hima Marketing Pvt Ltd F-101, 201, 202 & 301, Laxmi Residency 7-1-55/1, Dharam Karan Road, Ameerpet Hyderabad, Andhra Pradesh 500 016
SEPARATOR PURIFIERS Pradnya Enterprises offers wide range of new spare parts and reconditioned separator purifiers and decanters for marine and chemical industries. Where saving money is crucial, Pradnya Enterprises can offer fully reconditioned separators. All machines prior to reconditioning are stripped of all components, cleaned, inspected and rebuilt. The horizontal and vertical drives are carefully checked for wear and new parts are fitted if needed. All ball bearings are automatically changed. All electric motors are exchanged for new units regardless of their condition. The bowls are dismantled and checked for wear and damage on all sealing faces. Lock rings large and small are checked for wear and zeroed in the correct position. All sealing faces are then machined and bowls are re-balanced to original manufacturers’ specific actions. For details contact: Pradnya Enterprises Kishor Kunj, Plot No: B 26-2 & 26-3, Sector 20 Nerul (W), Mumbai 400 706
PORTABLE GAS DETECTOR Maxima Automation Solutions Pvt Ltd offers best quality portable gas detectors in compliance with the industry set norms and parameters, using best quality raw materials. Offered gas detectors are acknowledged for their hassle-free detection and simple functionality.
LPG RETICULATED SYSTEM (PIPED GAS) GE Projects Pvt Ltd offers wide assortment of LPG reticulated system (piped gas). These premium grade LPG Reticulated System (Piped Gas) are highly appreciated for its renowned features such as 24 hours gas supply at your command. For details contact: GE Projects Pvt Ltd 1/5 & 1/6, DSIDC Factory Shed, Khichri Puri, Block-3, Nr Gazipur New Delhi 110 091 , Tel: 011-22784827, 65660399
For details contact: Maxima Automation Solutions Pvt Ltd 2/87 Raghava Nagar, 7th Street, Movvarasanpet, Madipakkam Chennai 600 091. Tel: 044-45565025, Fax: 91-044-45565026
Offshore World | 53 | April - May 2015
www.oswindia.com
products
BURST PIPE ISOLATING VALVE FOR HAZARDOUS MEDIA Sherman International Pvt Ltd offers burst pipe isolating valve for hazardous media. It shuts-off pipelines in case of a leakage, automatic locking after response. Suitable for liquids, gases, steam, etc. Completely made of deep-drawn CrNiMo-Steel (316L). Surface finish of the body is Ra ≤ 1.6 μm. For details contact: Sherman International Pvt Ltd 106-108, Arunanchal Bldg, No: 19, Barakhamba Road, Delhi 110 001 Tel: 011-23356147, 23320684, 23320623
GASMAN GAS DETECTOR The Gasman SSS-PGD-2302 is personal single gas monitor, which is essentially safe device. The device is compact and light in weight and is fully suitable for tough industrial environment. The device is simply operated with single button and possess large and easy to read display that shows gas concentration, and audible, visual and vibrating alarms. For details contact: Super Safety Services 5 Indu Chambers, 349/353, Samuel Street, Masjid (W) Mumbai 400 003 Tel: 022-23473300, 23473311 Fax: 91-022-23471133
FLOW REGULATORS Bright Medi-Weld Appliances offers flow regulators. A modified version of standard series consist of dynamic forged round brass body, filtered nipple, nylon reinforced synthetic diaphragm, capsule along with safety valve provides a high purity flow, volume and attractive appearance. Used for high accuracy, flow, general and mild corrosive services. Brass key with chuck nut and SS rolling ball allows easy and accurate setting of delivery pressure Used for gases oxygen, CO2, argon, acetylene, nitrogen, hydrogen, etc. They are available in diaphragm and piston type at user pressure requirements. Preset regulator available according to your requirement. For details contact: Bright Medi-Weld Appliances Old Anjirwadi, Ganesh Mandir Trust Lane Rubber X Compound, Opp: Hasanabad Nr Dhobi Ghat, Mazagaon, Mumbai 400 010 Tel: 022-23452004 E-mail: sales@brightmw.net / hdhoondia@gmail.com www.oswindia.com
HIGH GAS PRESSURE REGULATORS DUNGS/MEDENUS high gas pressure regulators are available for inlet gas pressures up to 8 bar and outlet gas pressures up to 750 mbar. These are also suitable for flow rates of up to 5,000 Nm3/h of natural gas. They are available in sizes from DN25 to DN200. They are available with integrated over pressure and under pressure shutoffs for additional safety in the gas trains. Each of these regulators is uniquely customized to the customers’ exact application so that perfect regulation is provided to the customer. Popular Models Include DUNGS/MEDENUS gas pressure regulator RS250 and DUNGS/MEDENUS gas pressure regulator RS 251. For details contact: Minda Emer Technologies Ltd Minicon Thermal Systems Gala No: U-50, Nr Paliwal Doodh Jai Matadi Compound, Opp: Rajlakshmi Complex Thane-Bhiwandi Road, Kalher, Bhiwandi, Maharashtra 421 302, Tel: 02522-662064
COMBUSTIBLE GAS LEAK DETECTOR Mastercool introduces it’s new hand-held combustible gas leak detector W/220V battery charger . Offering the most advanced sensor technology with a state-of-the-art microprocessor, these units detect leaks fast and accurately. The flexible 15” probe has a bright LED light built into the tip for easy viewing in hard to reach locations. The membrane switch panel offers easy one touch control and operation. Each of the six levels of sensitivity has an audible alarm and visual indicator to identify leak activity. These units include the newest rechargeable Ni-MH battery (nearly double the power of existing Ni-Cad batteries) and comes in a custom moulded case (patent# 6,647,761). For details contact: Lakshya International C 19, New Siyaganj, VIP Road, Nr Indore Railway Station Indore, Madhya Pradesh 452 011 E-mail: sales@lakshyainternational.org / ishanair@hotmail.com
GAS METERING SKIDS Rockwin provides skid-mounted systems, each engineered to their customer’s exact requirements for natural gas metering, pressure regulation, conditioning and control. These skids have been supplied to gas distribution/gas transportation companies and end users. For details contact: Rockwin Flowmeter India Pvt Ltd B-24, Site 4, Sahibabad Indl Area, Ghaziabad, Uttar Pradesh 201 010 Tel: 0120-4538230
Offshore World | 54 | April - May 2015
events diary 13th MIOGE 2015 Date: June 23-26, 2015 Venue: Expocentre – Moscow, Russia Event: The 13th biennial Moscow International Oil & Gas (MIOGE) Exhibition will take place on 23-26 June 2015 at the Expocentre in Moscow, Russia. The adjoining 12th Russian Petroleum and Gas Congress (RPGC) will take place on 23-25 June 2015. MIOGE is the largest and most recognized oil and gas trade event in Russia and Central Asia. For over 20 years, MIOGE has become the traditional meeting place for the world’ leading oil and gas companies to converge and build new business partnerships with local trade operators and suppliers. Rosneftegaz, LUKOIL and Gazprom, plus many others, have previously participated. Traditionally supported by the Ministry of Energy of the Russian Federation, RPGC provides a senior-level platform for in-depth discussions and analysis on Russia’s thriving oil and gas market. Over the past 12 years, RPGC has connected thousands of oil and gas professionals from more than 40 countries For details contact: S K Singh | CEO EXPO CONSULT LLP- Team MIOGE 2015 Mumbai: 6, Monalisa Apartments, 1st Road, T P S IV Bandra (W), Mumbai- 400 050 Bangalore: Old Airport Road, Bangalore-560017 Email: sksingh@expoconsult.co.in, expoconsult.india@gmail.com URL: www.mioge.com Mobile: +91-98860 50823, +91 95900 50236
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
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 13 th 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
ENERASIA 2015 Date: 11-13 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 | 55 | April - May 2015
www.oswindia.com
book shelf
OIL & GAS PIPELINES Authors: Thomas O Miesner and William L Leffler Hardcover: 357 pages Publisher: PennWell Corp Book Description: Oil & Gas Pipelines in Nontechnical Language examines the processes, techniques, equipment, and facilities used to transport liquids such as refined products, crude oil, natural gas, and natural gas liquids through cross-country pipelines. Topics include the importance of the pipeline infrastructure; planning, designing, constructing, operating, and maintaining pipelines; regulatory requirements; and the challenges for the future. Special emphasis is included on control and leak detection systems as well as emerging technologies and systems to ensure safe and environmentally sound operation. Thorough but easy to read, this text is useful for anyone who wants to learn about pipelines, from petroleum industry newcomers and students to personnel in related arenas such as legal, accounting, financial, government, and others.
OIL AND GAS PIPELINES: INTEGRIT Y AND SAFETY HANDBOOK Author: R Winston Revie Paperback: 856 pages Publisher: Wiley Book Description: Oil and Gas Pipelines: Integrit y and Safet y Handbook is a comprehensive and detailed reference guide on the integrity and safety of oil and gas pipelines, both onshore and offshore. The books covers wide variety of topics, including design, pipe manufacture, pipeline welding, human factors, residual stresses, mechanical damage, fracture and corrosion, protection, inspection and monitoring, pipeline cleaning, direct assessment, repair, risk management, and abandonment. The practice book links modern and vintage practices to help integrity engineers better understand their system and apply up-to-date technology to older infrastructure. It has also carry case histories with examples of solutions to complex problems related to pipeline integrity, includes chapters on stress-based and strain-based design, the latter being a novel type of design that has only recently been investigated by designer firms and regulators. www.oswindia.com
SUBSEA PIPELINE INTEGRITY AND RISK MANAGEMENT Author: Yong Bai and Qiang Bai Paperback: 428 pages Publisher: Gulf Professional Publishing Book Description: Subsea repairs and inspection are costly for petroleum and pipeline engineers and proper training is needed to focus on ensuring system strength and integrity. Subsea Pipeline Integrity and Risk Management is the perfect companion for new engineers who need to be aware of the state-ofthe-art techniques. This handbook offers a ‘hands-on’ problem-solving approach to integrity management, leak detection, and reliability applications such as risk analysis. Wide-ranging and easy-to-use, the book is packed with data tables, illustrations, and calculations, with a focus on pipeline corrosion, flexible pipes, and subsea repair. Reliability-based models also provide a decision making tool for day-to-day use. Subsea Pipeline Integrity and Risk Management gives the engineer the power and knowledge to protect offshore pipeline investments safely and effectively. COMPUTATIONAL RHEOLOGY FOR PIPELINE AND ANNULAR FLOW Editors: Wilson C. Chin, PhD Paperback: 272 pages Publisher: G u l f P ro f e s s i o n a l Publishing Book Description: Computational Rheology for Pipeline and Annular Flow develops and applies modern analytical and computational finite difference methods for solving flow problems in drilling and production. It also provides valuable insights into flow assurance analysis in subsea pipeline design. Using modeling techniques that simulate the motion of non-Newtonian fluids, e.g., power law, Bingham plastic, and Herschel-Bulkley flows, this book presents proven annular flow methodologies for cuttings transport and stuck pipe analysis based on detailed experimental data obtained from highly deviated and horizontal wells. These methods are applied for highly eccentric borehole geometries to the design of pipeline bundles in subsea applications, where such annular configurations arise in velocity and thermal modeling applications. The book also covers extensively are the design and modeling of pipelines having non-circular cross-sections, where deviations from ideal circular geometries arise from plugging due to wax deposition and the presence of hydrates and asphaltenes.
Offshore World | 56 | April - May 2015
HEADING TO WORK 10,000 FEET BELOW? WE HELP YOU GET THERE Your next big opportunity lies 10,000 feet below the sea. To uncover it, you’ll need to navigate harsh waters and cope with corrosion in hot, sour, high-pressure wells. In situations like these, you need to ask yourself: “What is the most suitable material?” Can you afford to take any risks? This is where we at Sandvik come in with our premium corrosion resistant alloys and expertise. For more than 20 years we’ve helped our oil and gas customers enhance their performance and minimize risks with more than 300 million feet of stronger, lighter, corrosion-resistant tubing umbilicals delivered. But that’s just part of our portfolio. As you go deeper, we’re working at your side with a range of subsea solutions to help amplify your possibilities. SMT.SANDVIK.COM/OILGAS
March 3-5, 2016