VOL.13 | ISSUE 5 | AUGUST-SEPTEMBER 2016 | US $ 10 | ` 150
OFFSHORE WORLD
INSIGHT INTO UPSTREAM & DOWNSTREAM HYDROCARBON INDUSTRY
www.oswindia.com
AUGUST-SEPTEMBER 2016 VOL. 13 ISSUE 5 Mumbai ` 150
VOL.13 | ISSUE 5 | AUGUST-SEPTEMBER 2016 | US $ 10 | ` 150
INSIGHT INTO UPSTREAM & DOWNSTREAM HYDROCARBON INDUSTRY
www.oswindia.com
ADIPEC 2016 Special International Exhibition & Conference February 2018 : Mumbai, India
FIRST-CLASS REFINING OF REFORMING CATALYSTS Rely on our collaborators Heraeus‘ expertise in precious metal services for more than 160 years.
Physical supply of precious metals in all relevant forms
Pool accounts
Precious metal financing and risk management
Recycling & refining Logistics, insurance and waste management
Heraeus Metal Management
A UNIQUE PARTNER FOR PRECIOUS METAL SOLUTIONS Ravindra Heraeus Pvt Ltd A 196 A MIA, Madri Road F Udaipur 313001 Rajasthan Tel: 0294 3044222 shaileshchoksi@ravindraheraeus.com www.ravindraheraeus.com
HMM160009_AZ_Ravindra_07_2016_V02.indd 1
21.07.16 15:27
CONTENTS
INTERVIEW “‘Make in India’ becomes central to the transformation in the energy industry” -Sashi Mukundan, Regional President and Head of Country - India, BP Group Wärtsilä sees a promising future for gas-based systems in India - Parvez Chughtai, Associate Vice President - Marine Solutions, Wärtsilä India
VOL. 13 | NO. 5 | Aug-Sep 2016 | MUMBAI ` 150 OFFSHORE WORLD R.NO. MAH ENG/ 2003/13269 Chairman Publisher & Printer Chief Executive Officer
EDITORIAL
Editor Editorial Advisory Board Design Team Subscription Team Production Team
Maulik Jasubhai Shah Maulik Jasubhai Shah Hemant Shetty Mittravinda Ranjan (mittra_ranjan@jasubhai.com) D P Mishra, H K Krishnamurthy, N G Ashar, Prof M C Dwivedi Arun Parab, Shankar Joshi Dilip Parab V Raj Misquitta (Head), Arun Madye
SALES
General Manager, Sales
An International EPC Company for Operating in Indian Space - Sunder Kalyanam, Regional Managing Director - E&C, Petrofac
10
GST Impact on Oil and Gas Sector - Sanket Desai Advanced Subsea Water Treatment Soon a Reality - Eirik Dirdal ‘Make India Asbestos Free by 2020’
13
Transporting Cleaner Fuel Across India -Dr. Ashutosh Karnatak Product Innovation: Aqueous-Based Pour Point Depressants - Ritesh Gulabani and Larisa Mae Reyes Increasing Refinery Margins with Automation and Behaviour Changes - Tim Olsen New Age Technologies Transform Oil and Gas Companies into Digital Enterprises - Sahil Dhawan Paradigm Shift in Well Economics thru Robotic Well Interventions - Jyoti Prakash Nayak Instrumentation on Production Platform - Santosh Shanbhag Configuration Study of Sour Water Stripper Units at Refinery - Subrata Das and Naresh Kumar Singh Steel up! to meet India’s Oil Consumption Needs - Mohan Gawande Most Energy Commodity Prices Moves Down in Varied Proportion - Niteen Jain & Nazir Moulvi
8
NEWS FEATURES
Amit Bhalerao (amit_bhalerao@jasubhai.com) Prashant Koshti (prashant_koshti@jasubhai.com)
MARKETING TEAM & OFFICES
Mumbai
Ahmedabad
Vadodara
Bengaluru Chennai / Coimbatore
Delhi
Hyderabad
Kolkata Pune
Godfrey Lobo / V Ramdas 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 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 Vikas Kumar 202 Concorde Bldg, Above Times of India Office R C Dutt Road, Alkapuri, Baroda 390 007 Telefax: 91-0265-2337189, Mobile: 09712148258 E-mail: vikas_kumar@jasubhai.com Princebel M Mobile: 09444728035 E-mail: princebel_m@jasubhai.com 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 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 Princebel M / Sunil Kulkarni Mobile: 09444728035, 09823410712 E-mail: princebel_m@jasubhai.com, sunil_kulkarni@jasubhai.com E-mail: industrialmags@jasubhai.com 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
16 17
FEATURES
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.
23
GUEST COLUMN
PLACE OF PUBLICATION: Jasubhai Media Private Limited
210, Taj Building, 3rd Floor, Dr. D. N. Road, Fort, Mumbai 400 001. Tel: + 91 -22-4037 3636, Fax: +91-22-4037 3635
19
26 28 32 34 38 43 47 49
NEWS
54
PRODUCTS
57
EVENTS DIARY
59
BOOK SHELF
60
Jasubhai Media Private Limited
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 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
Offshore World | 6 | August-September 2016
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.
Captured gas leak
Electrical inspection
Gas leak
Images used for illustrative purposes only.
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.
WWW.FLIR.IN/GF-SERIES
For more details call us on: +91-11-4560 3555 or write to us at flirindia@flir.com.hk FLIR Systems India Pvt. Ltd. 1111, D Mall, Netaji Subhash Place, Pitampura, New Delhi – 110034 Fax: +91-11-4721 2006 | Website: www.flir.in
flir india gas ad.indd 1
24/05/16 7:14 PM
GAIL (India) Limited India’s Youngest Maharatna
Transporting Cleaner Fuel across India GAIL (India) Ltd, a state-owned natural gas processing and distribution company, is one of the major pipeline operators in India and has been in business of sales and transportation of natural gas by pipeline since 1984. Dr Ashutosh Karnatak, Director (Projects), GAIL (India) Ltd and Chairman, Mahanagar Gas Limited (MGL), shares GAIL’s nitty-gritty business segments for the entire hydrocarbon gamut in India and globally, with Offshore World.
G
AIL (India) Ltd, a state-owned natural gas processing and distribution company, is one of the major pipeline operators in India and has been in business of sales and transportation of natural gas by pipeline since 1984. Previously known as Gas Authority of India Ltd, the company operates around 11,000 km of Natural Gas (NG) and 2050 km of Liquefied Petroleum Gas (LPG) pipelines spread across the country. Apart from its core business of Gas/LPG transportation through pipeline, GAIL has emerged as an integrated natural gas company with presence spread across the entire value chain, from gas transportation and marketing to processing of liquid hydrocarbons and polymers, and also pioneered city-gas distribution (CGD) in India. GAIL owns and operates a gas-based integrated petrochemical plant at Pata, in Uttar Pradesh, with a capacity of producing 440,000 tons/yr of polymers; capacity expansion of the plant to 900,000 tons/yr is in an advanced stage of stabilization. Through a joint venture with Brahmaputra Cracker and Polymer Ltd (BCPL), GAIL has recently commissioned a 280,000 tons/yr petrochemical complex at Lepetkata, in Dibrugarh, Assam, the company is also an equity partner in OPaL, which is setting-up a greenfield petrochemical project at Dahej with capacity of 1.1 MM tons/yr of ethylene. Offshore, GAIL has expanded into exploration and production, and currently has stakes in 12 E&P blocks in the country , two blocks in Myanmar and one shale gas asset in the USA. GAIL’s pipelines are designed to ASME B 31.8, Oil Industry Safety Directorate (OISD), and other similar guidelines. Standard line pipes conforming to API 5 L are used in the pipeline network, and are provided with three layers of polyethylene corrosion-protection coating and are laid with a minimum of 1 m cover to the crown of the pipe. All pipelines are equipped with IP (intermediate pigging) stations at suitable intervals in order to facilitate the operation, and an impressedcurrent cathodic-protection system is installed to provide active protection against external corrosion according to international and NACE standards. Voice and data communications are supported by a dedicated optical-fibre cable network laid along the pipelines, and the network is clearly marked by boundary markers, kilometre (KM) markers, aerial markers, and warning-sign boards with
www.oswindia.com
emergency contact telephone numbers. These markers are useful for monitoring of right-of-way (RoW) of the operating pipelines. During commissioning, the company’s pipelines are hydro-tested to a pressure defined in design codes (corresponding to 95% of specified minimum yield strength); radiography of all welding joints in conformance to Engineers India Ltd (EIL) and API standards is carried out to ensure the pipelines are safe to operate. GAIL has a well-laid-down policy and guidelines for operation and maintenance of its pipelines. Maintenance and inspection activities such as cleaning pigging, intelligent pigging, CPL/DCVG surveys, etc., are undertaken in conformance with the latest applicable international standards and Indian regulations. The National Gas Management Centre (NGMC) Noida in the National Capital Region is a state-of-the-art centralized control room for monitoring and controlling the pipeline network’s operation. Round-the-clock monitoring of all critical parameters is undertaken through an on-line SCADA system both at the NGMC and at Regional Gas Management Centres. The NGMC also acts as an emergency-response centre; immediate action based on any observed or predicted abnormality can be taken in co-ordination with maintenance bases located in different regions along the pipelines. Experienced and trained maintenance teams equipped with all emergency tools, equipment, etc., are deployed at these major maintenance bases. The safety and integrity of entire infrastructure, including pipelines and process plant, always remains as one of the topmost priorities of GAIL’s management. For monitoring of the RoW, GAIL has started foot patrolling along its pipelines using GPS devices. For efficient and effective monitoring of pipelines in harsh locations, monitoring through satellites and drones is in an advance stage of implementation. For creating awareness among inhabitants along the pipeline routes about the potential threat involved in pipeline operations, safety-awareness campaigns are being held on a regular basis. Local people are encouraged to report leakages and inform GAIL before carrying out any excavation around the pipelines, under GAIL’s Sahyogi Scheme.
Offshore World | 8 | August-September 2016
GAIL (India) Limited India’s Youngest Maharatna
Looking at the further need to strengthen pipeline integrity, GAIL’s management has established a dedicated Centralized Integrity Management Group (CIMG) and at regional levels Regional Integrity Management Groups (RIMGs) have been established. The prime responsibility of these groups is to ensure the integrity of the pipeline infrastructure. To further improve safety and reliability of its pipelines, GAIL is implementing a linear-asset management system, SAP work manager, and a manufacturing intelligence and integration system. These systems will facilitate and connect linear-asset management activities for managing the pipeline network with the company’s existing enterprise processes and data available in SAP. In its endeavour to provide efficient and flawless services to its customers, GAIL strives to maintain its pipeline network in a healthy state. Pigging and inspection operations are carried out according to the company’s guidelines, based on which repairs or replacement of pipeline sections are planned and undertaken. As an example of this, the company recently replaced around 850 km of regional pipeline in the Krishna-Godavari basin, the Cauvery Basin, and the Gujarat region. These pipelines were brought into service after following the recommendations from the engineering consultant Engineers India Ltd and with clearance from the regulator – Oil Industry Safety Directorate (OISD). The frequency of ILI for wet-gas pipelines has been revised from every ten years (the regulatory norms) to every five years to further strengthen the safety of the pipeline network. Around 12% of GAIL’s pipeline network is currently unpiggable, and efforts are being made to make these pipelines piggable as soon as possible. Wherever conversion is not possible, GAIL has laid-down a set of guidelines for establishing the integrity of unpiggable pipelines, such pipelines are being inspected periodically through digging at vulnerable locations including low-lying areas, bends, CP-draining areas, etc. The company considers that a technological shift is required to ensure the integrity of these pipelines and advanced technologies such as the magnetic-tomography method (MTM) are being tested for such use. MTM is a non-intrusive pipeline-inspection which can evaluate the relative change in mechanical stress through measurement of the magnetic field strength of the pipeline. The method helps to locate defects in the pipe steel and the welded joints and can assess the state of corrosion and monitor its development. The quality of gas in the pipeline network is monitored through online analysers and offline laboratory analysis. Recently, advanced online analysers for H2S and moisture analysis have been installed at most of the source locations. New laboratories are being set-up, and existing facilities are being upgraded to cater for the need to ensure source quality and undertake increased analysis from pigging. Corrosion-inhibitor dosing and strict monitoring of the source gas quality
for harmful constituents such as moisture; H2S and CO2 are being regularly implemented. Furthermore, Oil and Natural Gas Corporation Ltd (ONGCL) – a major gas supplier for GAIL’s pipelines – has also installed Gas-dehydration facilities in the Krishna-Godavari basin areas and is planning installation similar facilities in the Cauvery and Gujarat regions. GAIL has extended all possible support for this including sharing installation costs with ONGCL in order to help and ensure the future safety of its pipeline. Significant improvements in the water and hydrocarbon dewpoints have been observed for the sources where gasdehydration facilities are functioning. Other options, such as using steel pipes of different quality with a design life of 10 years (instead of normal 25 years) are being explored where installation of dehydration facilities is not technically or commercially feasible. For low-pressure systems, medium-density polyethylene (MDPE) pipes are being used. GAIL has engaged an internationally recognized subject-matter experts and engineering consultant to assess the overall integrity of its pipeline network. The SME and the consultant have clearly stated that the measures being taken by GAIL to control external corrosion and the condition of its pipelines is one of the best globally. However, there is a scope for further improvement on in the area of internal corrosion mitigation for GAIL’s pipelines. The suggestions by the SME and the consultant regarding internal corrosion assessment have been taken very seriously by the top management, and various measures for improvement have been initiated. GAIL has engaged The Energy Research Institute (TERI) for a detailed analysis of fluid samples from pig runs and also to detect, characterize, and identify various microbial flora and select appropriate biocides for controlling microbial-induced corrosion (MIC). Training and skills’ development are also given due importance and GAIL’s personnel are given training on regular basis at the company’s training institutes at Noida and Jaipur. Employees are also encouraged to participate in national and international seminars and conferences. In co-ordination with NACE International, the company recently organized a technical seminar on internal corrosion to share the knowledge among its various industry partners. GAIL is the first Indian company to become a member of the Pipeline Operators’ Forum (POF). It has initiated a proposal for creation of Pipeline Forum in India to bring together the country’s pipeline operators in order to share their experiences and keep updated on technological advances in the field of pipeline operations. GAIL remains focussed on the safety and integrity of its pipeline network, and the company is committed to the use of the latest technology in all spheres of its operations. Efforts are continually being made to implement these technologies to maximise safety of the infrastructure, and stakeholders.
Offshore World | 9 | August-September 2016
www.oswindia.com
LESER India is Now EIL Approved
Safety Valves & Thermal Relief Valves for Oil & Gas We are pleased to announce that “LESER” valves manufactured at our Paithan works are now approved by Engineers India Ltd (EIL)
UV Stamp | Quick Delivery | Durable Design EIL Approved Product Ranges: Type 526 IC - API Series
Type 441 - High Performance Series
Type 459 IC - API Series
Approvals: ASME Sec. VIII UV - IBR - CCoE Learn more about the EIL approved safety valves on LESER India website: www.leser.co.in Head office in Mumbai: LESER India (Fainger LESER Valves (P.) Ltd.) 136/137, Sanjay Bldg. No. 3, Mittal Estate Marol, Andheri Kurla Road, Andheri (E), 400 059 Mumbai, India Board : +91 2228532200 | Email: ssc@leser.co.in | projects@leser.co.in
Brilliant technology quality ADVERTISE TOItalian EXPAND
your reach through
Saurus939: High quality, versatile and long life vacuum pump, unique in reliability, performances and operating costs. Fit & forget!
Criox System: Patented rotary vacuum dryer with electric lump-breakers
INSIGHT INTO THE PHARMACEUTICAL AND BIOTECH INDUSTRIES
Planex System: Multi-patented paddle vacuum dryer with ZeroFriction® planetary movement eccentric agitator
CosmoDry System: Paddle vacuum dryer with concentric agitator, fitted with a shaft dismountable in sections.
For Details Contact
Agent for vacuum pumps
Jasubhai Media Pvt. Ltd. Vac Enterprises India LLP, Mr. Jayant Joshi Taj Building, 3rd Floor, 210 Dr D N Road, Fort, Mumbai - 400 001 B 102 Shubh Sarita, Appasheb Sidhaye Road Tel: 022-4037 3636, Fax: 022-4037 3635 Shree Krishna Nagar, Borivali (East) Mumbai 400 066 Email: industrialmags@jasubhai.com Your vacuum drying specialist marketing@italvacuum.com | italvacuum.com
Tel. 02228975275 | Mobile 9820047858 info@electromechengineering.com
GUEST COLUMN
An International EPC Company for Operating in Indian Space Scale, speed and skill are intrinsically important ingredients in India’s future growth; specifically so in the Oil & Gas upstream and downstream industry. India is well positioned to push forward growth initiatives in the upstream, refinery and petrochemical space, says Sunder Kalyanam, Regional Managing Director - E&C, Petrofac.
A
ligning with reliable partners can be the catalyst towards a greater realisation of the country’s growth dreams. International contractors can bring a wealth of technical and execution experience and are likely to offer the right partnership; supporting a sustainable and local model. Well established and understood, the lumpsum EPC model has been successfully implemented in the Oil & Gas industry the world over and still continues to be used to great effect. Over time the EPC model has varied but the core, which is ‘optimum risk sharing’ has remained intact. Globally, clients and contractors alike have been extremely successful in negotiating and tailoring the base lumpsum EPC model to suit specific execution styles and legislative frameworks. This has allowed the parties to focus on the activities within their respective spheres of control and rely upon their partners within the extent of the contract to manage other execution fronts. Simply put, interests have to be aligned at the very outset with one common agenda – delivering a successful project collaboratively; safely, on time and within budget. It is so much more than just executing a contract. If we look at the illustrations, the scale of things to unfold is clearly ambitious and substantial. That a big wave is set to rise is quite emphatic. What is required is that we are prepared and equipped to ride and harness this wave. Success cannot be realised without skill and speed.
a meaningful partnership, aligning with local businesses and implementing a ‘global-local’ model to great effect. With complementary strength and depth being brought into the local market, it provides a great recipe for stimulus. An increased appetite for simultaneous project sanction, as projects would be supported by resources otherwise not immediately available or ready and a significant risk element can be taken up by the international EPC partner businesses. State owned public sector undertakings and the large private players only stand to benefit if the bidding slate comprises competition from strong and competent national and international EPC contractors. Reputable international lumpsum EPC contractors are financially robust, have a solid and tested reputation for safe project delivery, underpinned by well-honed processes and governance covering all aspects of project execution. This has developed and evolved over the years as a result of exposure to multiple clients in diverse geographies from which best practices have been learned and embedded in business protocols ensuring adherence to high standards of international safety, quality and integrity.
For India the last decade or so has not seen a major push forward in the refinery and petrochemical space; for a variety of perfectly logical and economic reasons. However, one of the consequences of a slowdown in any market can result in local skills erosion and movement of skills away from the local environment. This is where international EPC contractors can offer
A competent and reputable EPC contractor will offer a strong in-house engineering capability resourced with highly motivated, talented and experienced engineers and designers. This forms the bedrock of EPC delivery. Experienced buyers with exposure to international suppliers will help leverage the relationship built over a period of time and the quantum of ongoing business. Cost and schedule benefits will benefit the end user in securing competitive quotes from the EPC contractor during the bidding phase, and will see delivery assurances in execution. Construction and completions management teams bring in a wealth of construction best practice.
Chart 1: Annual Investment in the Period, India
Chart 2: Energy Production/Consumption Forecast, India
www.oswindia.com
Offshore World | 10 | August-September 2016
GUEST COLUMN
VOL.13 | ISSUE 2 | FEBRUARY MARCH 2016 | US $ 10 | ` 150
VOL.13 | ISSUE 1 | DECEMBER 2015 - JANUARY 2016 | US $ 10 | ` 150
www.oswindia.com
OFFSHORE WORLD
OFFSHORE WORLD
INSIGHT INTO UPSTREAM & DOWNSTREAM HYDROCARBON INDUSTRY
INSIGHT INTO UPSTREAM & DOWNSTREAM HYDROCARBON INDUSTRY
www.oswindia.com
DECEMBER 2015 - JANUARY 2016
DECEMBER 2015 - JANUARY 2016
VOL. 13 ISSUE 1
VOL. 13 ISSUE 1
Mumbai
Mumbai
` 150
` 150
Advancements in Oil & Gas Industry
Chart 3: Change in oil demand by selected countries and regions in the New Policies Scenario, 2014 - 2020
In addition to cost management on projects, HSSE and quality performance and delivery have long been well documented considerations which have the Indian infrastructure/construction industry alarmed. There have been step changes in improvement in HSSE and quality with standards improving at all levels in the supply chain, all the time. Most international firms are operating with best in class auditing requirements and have an established track record which could help local businesses manage their projects with less supervision; the net result being a reduced cost. India is ambitious, hungry for success on the world stage and is working hard towards realising these goals; attracting the highest quality of investments and corporate interests in the country. International firms bring their particular niche experiences and capabilities in executing multiple commercial models; EPC lumpsum, hybrid EPC with open book procurement, reimbursable convertible to lumpsum. Listening to what a client wants is always extremely important and through an open dialogue, there are numerous ways to achieve optimal commercial outcomes. A number of international contractors also have the capability to bring in finance or work with export credit agencies.
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, covers insights into Exploration & Production, EPC/M in Oil & Gas Industry, Hydrocarbon Infrastructure viz; Oil & Gas Logistics, Transportation and Pipelines; Hydrocarbon Processing & Refining; Natural Gas and LNG through articles and features by industry Leaders and Dignitaries. The publication also carries inputs and views of Policy & Regulations; latest trends and technology from Policy Makers and Experts from Hydrocarbon Industry.
Evolved international contractors having worked with multiple global customers over time have developed tried and tested ‘fit for purpose’ delivery models with safety, schedule and cost being the pillars of quality delivery. This experience and capability allows customers to award work with basic functional specifications and rely-upon data which competent EPC contractors grow and develop to provide the desired end result. This approach will help gain overall time by cutting short the pre-bid and tendering time and will help the Indian nation realise its dream of ‘speed’.
You can share technical articles, case studies, and product write-ups in OSW. • Article length should around 1500-2000 words, along with maximum three illustrations, images, graphs, charts, etc. • All images should high resolution (300 DPI) and attached separately in JPEG or JPG format. • Product write-up length should be around 150-200 words, along with image of the product and contact details.
Leadership and empowerment are quintessential for successful project management and project execution. Leadership has to be understood in the context of ownership and self-drive. International contractors are well placed to identify and hire talented current and potential leaders from a larger and diverse international pool due to their reach. A proven track record, the leadership and the lessons learned along the decades of execution are the three of the most important differentiators for a global delivery firm.
Have a look at Editorial calnder of OSW - www.oswindia.com
In summary, an international EPC company can fit perfectly well in the current and near-future economic environment and growth ambitions in India. They offer complementary tools and experience to support the local growth path that India is looking forward to. Indian industry needs reliability and assurance from all stakeholders in the path forward. www.oswindia.com www.oswindia.com
To know more about Chemtech Foundation, Jasubhai Media and other publication and events, please our website – www.chemtech-online.com Thank you, Regards, Nidhi Agrawal (Sub- Editor) Jasubhai Media Pvt Ltd Tel: +91 22 4037 3636 ( Dir: 40373678) | E-mail: nidhi_agrawal@jasubhai.com
Off shore World Offshore World || 12 10 || August-September August-September 2016 2016
NEWS FEATURES
GST Impact on Oil and Gas Sector Goods and Services Tax (GST) has now become a reality for India Inc. While the Petroleum Products have been included under the ambit of GST, the article explains the impact of GST if the entire value chain of oil & gas sector will come under it.
W
ith the GST Constitutional amendment bill enacted and the GST Council being formed, Goods and Services Tax (GST) has now become a reality for India Inc. While the Petroleum Products have been included under the ambit of GST, this article seeks to explain the impact of GST if the entire value chain of oil & gas sector will come under it. GST is proposed to subsume several Central (central excise duty, service tax, special additional duty of customs etc) and State (octroi, entry tax, value added tax, purchase tax etc) taxes into a single tax which would mitigate cascading taxation and facilitate a common national market. GST would have an impact on prices, business processes, IT systems, supply chain and profitability in all segments of the economy. The Oil and Gas sector is one of the six core industries in India. It is of strategic importance and plays a pivotal role in influencing decisions across other important spheres of the economy. With India’s economic growth closely linked to energy demand, the need for oil and gas is projected to grow further, rendering the sector a fertile ground for investment. Inclusions and Exclusions of Petroleum Products under GST For the Oil and Gas industry, five petroleum products namely, crude oil, natural gas, motor spirit, high speed diesel and aviation turbine fuel have been included in the GST Constitutional Amendment Bill but their levy has been deferred to a future date as per the recommendation of the GST Council. Other products such as LPG, naphtha, kerosene, fuel oil etc have been included under the ambit of GST. Therefore, the industry would have to comply with both the current indirect tax regime as well as the GST regime. Given the above, the taxes applicable on petroleum products pursuant to implementation of GST in India, under the current regime and GST regime would be as follows: Crude oil, motor spirit, aviation turbine fuel, high speed diesel and natural gas constitute a significant share of the production of the upstream and Products Crude
Oil Cess and Excise V A T / S G S T / IGST NCCD Duty CST CGST √
×
√
×
downstream industry. Hence, keeping these out of the ambit of GST would bar the oil and gas industry from most of the benefits of GST. Also, excluding crude oil and natural gas from the purview of GST could have an inflationary impact on the prices of other downstream products produced from these feedstocks such as naphtha, kerosene, petrochemicals etc. The Oil and Gas sector, including its end-consumer segments are likely to be severely impacted due to its exclusion from the GST regime. The exclusion would result in breakage of credit set-offs across the value chain for the industry. Further, the industry would have to operate simultaneously in VAT/ CST and GST regime as part of their input whereas output goods/services would be subject to GST. This is likely to increase the compliance effort and cost for the industry multifold. The profitability of the industry could also be under stake due to the tax-related under recoveries. Potential Issues for Oil and Gas Sector under GST Regim GST is expected to have a substantial impact on the Oil and Gas sector. Some of the potential issues are discussed below: Dual Indirect Tax Regime for Oil Refineries Oil refineries would continue to pay the existing indirect taxes for the 5 specified petroleum products, whereas other petroleum products would attract GST. This would result in a complicated indirect tax regime for oil refineries. This would continue till the time, all petroleum products are brought under the GST net.
NN
Input Tax Credit Losses NN While 5 specified petroleum products would not attract GST (and would attract the existing indirect taxes ie Excise duty, VAT, sales tax etc), the various inputs and input services used for manufacture of the said petroleum products would still attract GST. Petroleum companies would not be eligible to set off the input GST against the output excise duty, VAT and sales tax. NN
× NN
Natural gas
×
×
√
×
×
HSD, MS, ATF
×
√
√
×
×
Naphtha, LPG, SKO etc
×
×
×
√
√
Further, with respect to common inputs and input services which are used for manufacture for products not liable to GST and products liable to GST, proportionate input tax credit may be available. Th i s wo u l d re s u l t i n a s i g n i f i c a nt i n p u t t a x c re d i t l o s s f o r petroleum companies.
Taxability of Activities carried out at Offshore Locations between 12 to 200 Nautical Miles N N Various activities in relation to oil drilling and exploration are carried out at offshore platforms located in high seas.
Offshore World | 13 | August-September 2016
www.oswindia.com
NEWS FEATURES NN
NN
NN
At present, service tax is applicable on services provided at offshore locations, continental shelf and exclusive economic zones up to 200 nautical miles from the Indian coast. VAT is applicable on sale of goods within 12 nautical miles and there is an ongoing litigation with respect to levy of VAT and sales tax in areas between 12 to 200 nautical miles. Under the Model GST law, ‘India’ has been defined to include a continental shelf, exclusive economic zone or any other maritime zone. There is no clarity on whether a supply of goods or services at offshore locations (between 12 to 200 nautical miles) would qualify as an intrastate supply or an interstate supply and consequently would attract SGST+CGST or IGST. The Oil and gas industry should ask for a specific clarification on this aspect.
Ambit of the Term ‘Natural Gas’ N N Vide the 122 Constitutional Amendment Bill, natural gas has been kept outside the ambit of GST. Accordingly, provisions under the GST regime would not apply to natural gas and the current taxation regime would continue. NN
Issue: Whether natural gas would include compressed natural gas (CNG), liquefied natural gas (LNG), piped natural gas and rich natural gas / lean natural gas
Customs Exemption for Oil Field Operations Currently, full customs duty exemption (including Basic, Additional and Special Additional duty) is available for import of equipment and goods required for oil field operations, if imported under an ‘essentiality certificate’.
Inclusion of Subsidy in the Value of Supply Under the Model GST law, the transaction value shall include subsidies provided in any form or manner, linked to the supply.
NN
NN
Issuance of Form- C by Companies other than Oil Marketing Companies/Resellers NN Natural gas is an input for other industries such as fertilizer. VAT credits on local sale would not be available to companies in other industries in the GST regime. Interstate sale of natural gas would be subject to CST @ 2%. NN
Issue: Whether the exemption of custom duty on import of equipment and goods required for oil field operations would continue under the GST regime.
Taxability on Transportation through Pipeline N N Under the Model GST law, ‘Fixed establishment’ has been defined to mean a place which is characterised by a sufficient degree of permanence and suitable structures in terms of human and technical resources to supply service. NN
Issue: Whether taxability in respect of transportation services provided through a pipeline would be in all the states where pipeline is located. Also, whether credits would need to be availed in all the states where pipeline is located.
Eligibility of Credits N N Under the Model GST law, input tax credit shall not be available in respect of goods or services acquired by the principal in the execution of a works contract when such contracts results in construction of immovable property except for plant and machinery. NN
Issue: Since the term ‘Plant and machinery’ has not been defined, whether storage tanks or pipelines would qualify as plant and machinery?
www.oswindia.com
Issue: Clarity is awaited under GST regime as to whether the concept of Form C would apply for companies in other industry in the GST regime.
Treatment of Post-sale Discounts Under the Model GST law, the transaction value shall not include any discount or incentive that may be allowed after the supply has been effected. Such discount should be established as per the agreement and is known at or before the time of supply and specially linked to relevant invoices.
NN
NN
NN
NN
Issue: Whether GST is payable on the value inclusive of subsidy (eg for LPG supplied under PDS) at the time of stock transfer. Inclusion of subsidy for GST would increase the subsidy to be claimed and hence, would ultimately impact the working capital outflow.
Issue: In cases where intimation for post-sale discounts is given before the sale is effected then whether an agreement would still be required for availing post-sale discounts under GST. Further, the requirement of one to one co-relation with each invoice would also pose a significant challenge.
Treatment of Natural Losses N N Under the Model GST law, the Central or State Government may, provide for remission of tax on such supplies which are found to be deficient in quantity due to natural causes. Further, the Government would also specify the limit beyond which remission may not be available. NN
Issue: Whether losses during manufacturing or during storage (factory / warehouse) would constitute self-consumption / supply. Whether each State and Centre would specify a remission limit.
Other Impact Areas under GST The Oil and Gas industry would need to undertake significant changes in its existing IT and Accounting systems to ensure compliance with both the current indirect tax regime and GST regime. Upgradation of IT Systems Introduction of GST will also warrant upgradation and modification in the IT systems of the companies in terms of recording of transactions, changes in IT masters, tax coding systems, invoicing formats, formats of sales and purchase register in order to ensure that the information captured is in line with the statutory requirements under the current indirect tax regime as well as under the GST regime including registration requirements, invoicing, computation of taxes, filing of returns, maintaining statutory records, and generating reports and data required for assessments and audits undertaken by the tax authorities.
Offshore World | 14 | August-September 2016
NEWS FEATURES Impact on Accounting Inventory valuation in respect of products included under GST (ie LPG, naphtha, kerosene, fuel oil etc) would need to undergo a change since under the current regime, costs of purchase of inventories comprise the purchase price, and the various non creditable indirect taxes attributable to the acquisition of finished goods and material. With GST replacing these taxes, the inventory valuation will be directly impacted as GST would be creditable, thereby would not get included in cost of inventory. The current chart of accounts and general ledger codes would need to be mapped and new chart of accounts of general ledger codes would need to be created for recording, accounting and reporting of products covered under GST. A systematic tracking mechanism would need to be implemented to ensure accurate accounting of products covered under GST under the new chart of accounts and GL codes and for accounting of products not covered GST under the existing chart of accounts and general ledger codes. Way forward GST, over a period, could free India from the complex indirect tax laws and usher in a new era of a rational tax system in line with the international regime and which is conducive to growth and prosperity. GST is expected to remove the distortions and inefficiencies in the current indirect tax system and pave the way for a higher GDP. However, the GST law in its present form excludes a major portion of the Oil and Gas industry products thereby excluding the industry from most of the benefits of the one-tax-one-nation proposal.
Offshore World is an all-encompassing
magazine for the hydrocarbon and allied industries. The magazine extensively covers technological advances, reviews & forecasts, new products, processes & solutions, upcoming projects, market trends, R&D, events, products review, b o o k r e v i e w, i n d u s t r y s u r v e y s , environment management, news & views, interviews, awards, outstanding performance by individuals & organizations, case studies & practice oriented and well researched articles and features by industry experts.
As it stands currently, the Oil and Gas sector could lose out on account of dual taxation regimes, non-creditable tax costs and increased compliance burdens. While the Oil and Gas Industry will have to gear up for the revised tax accounting and management dashboards, upgradation of IT systems, etc required under the GST regime, it will also need to continue making representations to the Government for including petroleum products under GST, albeit at a concessional rate, so that input tax credit of GST could be seamlessly availed.
Offshore World is the ideal platform to
showcase the technologies to the user industry. For Details Contact:
Jasubhai Media Pvt Ltd Sanket Desai Director Ernst & Yong LLP Email: sanket.desai@in.ey.com
Taj Building, 3rd Floor, 210 Dr D N Road, Fort, Mumbai - 400 001. Tel.: 022-4037 3636, Fax: 022-4037 3635 E-mail: industrialmags@jasubhai.com
Offshore World | 15 | August-September 2016
www.oswindia.com
NEWS FEATURES
Advanced Subsea Water Treatment soon a Reality NOV has developed a game changing technology for providing tailor-made water at the seabed for enhanced oil recovery purposes. The technology now enters the final stages where a full-scale prototype for the production of sulphate free and low salinity water at the bottom of the ocean is being built for an extensive functionality test in northern Norway.
W
ater injection is the most common, and generally the most important factor to increase recovery from oil reservoirs. Typically, water injection will more than double recoverable reserves compared to production by pressure depletion only, but the variations are large. To avoid damages to the reservoir it is critical that the injection water has the right quality. Undesired bacterial activity in the reservoir must be avoided, otherwise souring of the reservoir by sulphate reducing bacteria and H2S generation will occur. Permeability must also be retained by keeping particle loading at bay. For optimum oil recovery, the ability to tailor the chemical composition of the injection water to a specific reservoir is also of great importance and the industry’s focus on this factor continues to increase. The chemical composition of the injection water must be compatible with the natural reservoir water to avoid unwanted chemical reactions, such as scaling problems and blocking of production wells and equipment. Tailor-made water, like low salinity water, can also alter the wettability in certain reservoirs and release initially ‘non-movable’ oil, resulting in significantly enhanced oil recovery beyond traditional recovery mechanisms. Conventionally, the huge volumes of seawater required for offshore waterfloods, which is normally several times greater than the volumes of oil produced from a given field, are treated at a topside facility before being pumped into the reservoir at the required pressures. The seawater treatment system is extensive and is typically some of the larger and heavier process items onboard. Thus, they represent a major impact on the overall design and capital cost of a platform. Currently there are no technologies available to provide tailor-made water at the seabed. This imposes great restrictions and cost on both green- and brownfield developments and induce greater risks in a project development where critical decisions have to be made early in the project development phase with only a limited amount of data. As the old adage tells us, ‘necessity is the mother of invention,’ the rise of the NOV’s new technology is no exception. To be able to do all this water processing at the seabed and provide the awaited flexibility to expand capacity based on actual demand, where and when required, brings the reservoir drainage strategy possibilities for both green- and brownfield developments to a whole new level. Sponsored by the industry, the Norwegian Research Council and Statoil, NOV is now building a full-scale prototype of a low salinity treatment plant to be tested in northern Norway. This will be the first of its kind in the world and an awaited asset in the offshore industry’s drive towards its ‘seabed factory’ goal.
electrolysis and also removes the majority (99%) of particles above 24 µm. 2. Microfiltration Module: Following 1), fine filters remove all suspended solids to an absolute filtration of 0.1 µm. Compared to typical topside challenges, these filters are easily kept at bay due to the thorough disinfection from the Seabox module. 3. Pump Module: A pump is required in order to draw seawater through the first two modules and to energize the water for further processing. 4. Membrane Module: Following 3), membranes are used to remove dissolved ions to reduce salinity and/or sulphate concentrations in the seawater. The S eabox module has been qualified and commercialized through ex tensive testing in Oslofjord in previous joint industry projec ts and is now being considered in several field developments where highly disinfected water and par ticles less than 24 µm are sufficient. The test planned in northern Norway is the final stage in order to commercialize a system with a wide variety of seawater treatment capabilities ranging from highly disinfected water in one end to drinkable freshwater in the other end. The system will be installed at approximately 100 meter below sea level and thus represent a field application for the shallow North Sea, although the system is designed to withstand depths down to 3000 meter. Detailed engineering has commenced and will be followed by manufacturing and test startup in the second half of 2017. The project is heavily funded by NOV, but also Statoil and the Norwegian Research council contributes significantly with both funding and technical guidance. Other potential participants are also currently evaluating their involvement in this project. The budget is in the order of 20 million USD and with close cooperation with key sub suppliers cover the cost of building all modules and functionality tests over a period of six months in continuous subsea operation.
The prototype plant will consist of four basic water treatment modules capable of producing 20,000 barrels of low salinity water each day, yet is designed to be easily scalable for other and far higher rate requirements:1. Seabox Module: The incoming raw seawater is first subjected to the Seabox module, which offers a state-of-the-art disinfection method through www.oswindia.com
Offshore World | 16 | August-September 2016
Eirik Dirdal | Project Manager NOV Completion & Production Solutions Subsea Production Systems, Seabox Email: Eirik.Dirdal@nov.com
NEWS FEATURES
‘Make India Asbestos-FREE by 2020’ Honourable Prime Minister Narendra Modi’s ‘Make in India’ Campaign has enhanced Indian reputation abroad as a future Global Manufacturing Powerhouse. This has attracted Global Manufacturing giants to set up Equipment Manufacturing facilities in India with their International quality standards, says Darshan Parekh, Managing Director, Pilot Gaskets and Engineers. Pilot Gaskets was established in 1981 primarily as a manufacturing arm of Supreme Mill Stores. The parent firm Supreme Mill Stores, established in 1957, has a rich history across the Indian Oil & Gas sector serving nearly all Indian Refineries for more than half a century. In 2011, the company pivoted the business model and started concentrating on offering API & ISO certified sealing and insulation products in India, which was ahead of its time in an Industry that still to this date indulges in Carcinogenic Asbestos Fibre (CAF) at the Factory Level. “We are slowly educating our customers about the alternatives, health benefits and savings associated with using correct certified sealing,” explains Parekh. The primary focus of Pilot Gaskets is to reduce the production downtime, maintenance Schedules, shutdown timelines and fugitive emissions while increasing the plant safety. “We have even conducted case studies where we have successfully increased Refinery production by approximately 17 per cent and reduced emission loss by 32 per cent just by replacing seals and Gaskets with the correct nonAsbestos alternatives,” recalls Parekh. Pilot Gaskets is India’s leading solution provider for 100 per cent AsbestosFREE Gaskets, Gland Packings, Insulation, Fire Safety and Brake Liners. Pilot Gaskets represents Manufacturers from Europe, USA & India that specialize in Environmental Safe products and focus primarily on reducing Fugitive Emissions across the Oil & Gas Sector.
Pilot Gaskets manufactures API 607 Certified Gaskets, API 622, API 624 for Valve Packing, IS 16752 for Pump Packing, and ISO 11612 for Fire Safety. “We are also diversifying into a Nanotechnogy based Universal Corrosion Prevention Coatings that can be used across all sur faces including Steel, Iron, Wood, Cement and Ceramic,” elucidates Parekh. Challenges & Opportunity to stay ahead in Indian Market PILOT Gaskets considers Indian market always as a refreshing challenge with full of opportunities. Contrary to popular belief, Indian Market is a value market bereft of information. Since there is a genuine lack of information sharing, price is used as a barometer for differentiation which gives an impression of being price conscious. In fact nothing is further from the truth, affirms Parekh. We have regularly seen Maintenance Engineer being open to understand our product, our offered quality, and discuss the technical parameters used in differentiating one product from another based on tests, performance, experience, and International accreditation, he adds. He believes that if a company is willing to discuss and share information and expertise, Indian refineries are more open to change their methods and processes for greater efficiency. We conduct such honest Technical Presentations at Refineries where we discuss not only our strengths but also acknowledge our weakness. We even accept harsh facts if a competitor product is better suited in certain applications than ours. In turn, this realization drives us to encourage our R&D and Quality Control teams, he adds. In 2017, we shall continue our approach of sharing knowledge and giving Engineers the information they need to compare and make an informed decision, affirms Parekh asserting ‘PILOT Gaskets’ vision to Make India AsbestosFREE by 2020’.
DONITUsed Gaskets
Continuing the Legacy of Providing Corrosion Resistant Products The legacy of corrosion resistant products of Pilot Gaskets started while we were experimenting with different coatings for our packing material when we collaborated with Ultratech Brands, USA and introduced their range of Corrosion Resistant Coatings. These coatings were developed by the United States Military to keep Fighter Jet Visors clean and manufacture Spill resistant Army Clothing. This is actually a single type of Corrosion Resistant Coating that works on any surface Offshore World | 17 | August-September 2016
www.oswindia.com
NEWS FEATURES
Flange Tightening
including Aluminum, Iron, Steel, Wood, Glass, Concrete, Clothing, Cement and also has excellent hydrophobic and oleophobic properties, claims Parekh.
allows the Engineers to stand by us and get alternative local material approved, considers Parekh.
Imagine a surface that completely repels all forms of water, hydrocarbons, solvents, paint, oil, dust, sea water and ice. All of these fluids just slide off and on top of this, the coating also offers excellent abrasion protection and is completely transparent, he states.
Future Plans in India Pilot Gaskets thinks imported spares are a great burden for the company thus necessities to invest more on Equipment manufactured in Europe or Japan. Without proper guidance or information, using an incorrect spare can ruin the equipment resulting in huge loss to the customer, affirms Parekh.
In making the Maintenance Engineer’s job as easy as possible, Parekh confirms that the coating is going to create ripples in the Surface Coating Industry. The current adoption is at the LNG Terminals where the coating ensures there is no icing on any equipment, and the Indian Army that is conducting field trials for its Hydrophobic Properties, he adds.
The first step our company is planning to reduce dependency on Imported Spare Parts for Refinery Process Equipment by developing them in India with the quality standards demanded by the OEM. Once we reach the desired level in Spare qualities, we can move to the more critical Equipment Manufacturing, he adds.
Need of R&D to Keep Pace with the Changing Indian Market Dynamics Honourable Prime Minister Narendra Modi’s ‘Make in India’ Campaign has enhanced Indian reputation abroad as a future Global Manufacturing Powerhouse. This has attracted Global Manufacturing giants to set up Equipment Manufacturing facilities in India with their International quality standards, says Parekh. In fact, we are in the enviable position to carefully choose and select which technology translates better to our environment and select our research and development carefully. We can also learn a lot from failures of other countries for example; currently, Australia is facing extensive difficulties in working with a Chinese Supplier that has been installing Asbestos laced products and now has to reevaluate and overhaul their Entire policies, he adds. Another aspect we concentrate on is changing the outlook of the Industry. While India does fabricate some amazing technical marvels in terms of Boilers & Turbines across India, the Design and Quality is strictly controlled by the Overseas Customer. We want to portray the Indian Engineer to actually be a valuable partner to their design rather than an outsourced manufacturer. Our goal of offering Technological superior products and sharing our information www.oswindia.com
We are also implementing an easy identification system for Asbestos Free products across India which will be used by all the major Manufacturers together. There are discussions to have joint committee and bring all of Asbestos Free manufacturers under one umbrella to offer best practices on par with international standards, Parekh outlines. We are also in extensive discussions with Ministry of Environment, Ministry of Power, Ministry of Health, and Ministry of Oil & Gas in establishing an Indian Standard on par with Europe for Asbestos Free products and Fugitive Emission standard. Lastly, once we have these quality standards in place it is only going to encourage more Engineering Equipment manufacturing to be outsourced from India, he adds. While the challenges are enormous especially with India being the largest importer and consumer of Asbestos in the world, Parekh assures that if we avoid the mistakes made by the rest of the world, we can ensure that we reach our vision of Making India Asbestos Free by 2020.
Offshore World | 18 | August-September 2016
- Rakesh Roy
INTERVIEW
INTERVIEW
“‘Make in India’ becomes central to the transformation in the energy industry”
Offshore World | 19 | August-September 2016
Globally as well as in India, new oil and gas production is focused on more remote, challenging and expensive to operate locations; and Deep-water, ultra deep-water, tight oil and shale gas are great examples of this. However, a different approach will have to be taken to bring in investments in exploring for oil and gas in new areas, developing discovered oil and gas resources and enhancing production from existing fields, says Sashi Mukundan, Regional President and Head of Country - India, BP Group. In a candid interaction with Offshore World, he talks about the existing E&P activities and investments in India and the required steps along with government’s paradigm shifts in reforms to augment the domestic E&P. He further outlines Gas potential in bridging the energy gap of India and the key initiatives to realise the Honourable Prime Minister’s call for building a gas based economy.
www.oswindia.com
INTERVIEW
Significant opportunities exist across the oil and gas value chain and ‘Make in India’ is one focused policy that promotes the E&P sector to extract resources in the sedimentary basins of India to the last molecule.
Business Opportunities in India’s Energy Industry for the ‘Make in India’ Campaign ‘Make in India’ becomes central to the transformation in the energy industry. As we address big societal challenges, like sustainable environment, health & cleanliness, food, energy and water, we need to keep in mind the need to efficiently and affordably solve the problems of citizens at the bottom of the pyramid. Scope and scale, as never before, combined with the dynamism of enterprise and cutting edge technology will be needed. Significant opportunities exist across the oil and gas value chain and ‘Make in India’ is one focused policy that promotes the E&P sector to extract resources in the sedimentary basins of India to the last molecule. It is obvious that energy produced domestically is advantaged in many ways namely: economic stimulus, energy security, FDI flow, feedstock to make industry competitive, developing and employing latest technologies and building new skills and capabilities. Domestically produced oil and gas will have to play a critical role to achieve Prime Minister’s vision of reducing 10 per cent energy dependence on imports by year 2022. E&P Activities and Investments in India India E&P sector is yet to be fully explored or produced. There are 26 sedimentary basins; 3.14 million sqkm, 52 per cent yet to be appraised and 65 per cent of the prognosticated resources yet to be established besides significant discovered resources yet to be developed. Oil and Gas will need to continue to play a pivotal role in the energy mix for India with its demand expected to more than double in next 15 years. Globally and in India, new oil and gas production is focused in more remote, challenging and expensive to operate locations. Deep-water, ultra deep-water, tight oil and shale gas are great examples of this. A different approach will have to be taken to bring in investments in exploring for oil and gas in new areas, developing discovered oil and gas resources and enhancing production from existing fields. The Government needs to act as an enabler, provide flexibility and space for participants to work at scale and build competitiveness. This is an industry that is inherently affected by high risks which need to be managed and mitigated efficiently. What is required? • Accelerated exploration to discover significant yet to find resources in both conventional and unconventional. • Fast track development of undeveloped discovered resources in both oil www.oswindia.com
& gas. There are significant gas resources in challenging areas with a potential to double India’s gas production. • Enhance recovery factor from existing fields bringing new technology expertise through strategic partnerships using an effectual contractual model. Steps to Increase E&P Activities in India Government of India through Ministry of Petroleum and Natural Gas has rolled out a series of new initiatives and reforms to boost E&P activities in India. The key ones are: • New domestic Natural Gas Pricing Guidelines • Policy for monetization of discovered small fields • New Hydrocarbon Exploration and Licensing Policy (HELP) • Streamlining working under various Production Sharing Contracts • Setting up of committees to look into site restoration guidelines and best petroleum industry practices • National Data Repository These forward looking initiatives are a step change and will provide the much needed impetus to the Indian oil and gas industry. It demonstrates the Government’s intent to transform the oil and gas sector and enhance import substitution. We believe this should help unlock the development of existing discoveries, and encourage additional exploration. It will also lead to the development of a competitive gas market in the country. BP brings state of the art technology and years of expertise into the E&P sector in deep-water, large fields & gas value chain. Gas-based Economy in India Industry studies show that there is huge potential for a gas-based economy in India. There is greater potential in India for discovering gas resources than oil, besides already having significant undeveloped discovered gas resources. Significant volumes of undeveloped discovered gas resources in the deep water, ultra-deep water, HPHT and other challenging frontier areas exist with the potential to double India’s current gas production by 2022. Gas could play a key role in bridging the energy gap as India transitions to affordable clean energy and renewables. With a national gas grid, gas can help India leapfrog across many years with smart cities, industrial and energy corridors, expressways and high speed transportation fuelled by gas much like the telecom revolution that vaulted Indians from landlines to high speed mobile telephony and data transmission in just a decade. The need of
Offshore World | 20 | August-September 2016
INTERVIEW the hour is to have multiple players in the gas value chain, who will be the energy providers and users of the future to meet the Prime Minister’s call for building a gas based economy. There is a need for a gas master plan: • The plan should touch all aspects of the gas value chain from supply sources to infrastructure to demand creation and management. • Gas as co-generation for solar and wind power • Gas as green fuel for smart cities, city gas, transportation, industrial corridors, new highway networks, railways, peaking power, etc. • Infrastructure build of new highways and mega industrial corridors to include gas (and fibre optic) grids as part of development – fuel and communication network as part of basics. • Fast track development of stranded gas and fully exploit new exploration options Also, the following 4 key initiatives can change the paradigm. 1. Augmenting Natural Gas Supply: Deepwater gas discoveries are around 10 trillion cubic feet (tcf ) of which projects in advanced stages of preparation will help monetise around 7 tcf of this over the next 5 years with investments of over INR 1 lakh crores (USD 15 billion), employing close to 1 lakh skilled workers and producing around 75 mmscmd of gas by 2022. This needs to be followed by development of all remaining discovered resources and more through exploration. These will be in addition to existing production from on-land and shallow-water fields; most of which are associated gas. I expect domestic gas availability to reach at least 300-350 MMSCMD by 2030. We should aspire and set a goal to get this number to 500 mmscmd or roughly 50 per cent of our consumption in 2030. This will then be supplemented by imported LNG. We, today, have LNG import terminals with a capacity of 30 mtpa. An additional 10 mtpa is being installed and 15 mtpa being planned in the next 3-5 years. This will provide room for 200 mmscmd of LNG supply. We need to more than double this capacity by 2030 to meet the balance demand. While I appreciate transnational gas pipeline are politically very challenging, a focus effort should be made towards this. HELP and OALP launch next year on the back of deep water projects being sanctioned would attract major players and help accelerate exploration to keep the development funnel and pipelines full. We need to collaborate to encourage and support all activities that increase production, ensure robust compliance of contracts and let public/private capital get to work for India. 2. Expanding Gas Supply and Distribution Infrastructure: When we say a gas value chain it means a well-connected gas supply and distribution infrastructure to the last mile. This is now a priority and like the national highway and state highway projects it has to be driven by the government – like what the minister has now done in the east coast. We now need to look at a hub based approach like in
Gujarat rather than a one size fits all. In the east coast the government has initiated a gas value chain build up using the Dhamra LNG project, a refinery as anchor customer, a potential gas grid, with 7 city gas distribution licenses all supported and gap funded by the ministry. This infrastructure would also support the potential development of the Mahanadi domestic deep water gas discoveries. Similar opportunity exists in the KG basin with infrastructure, trunk pipelines, and discoveries in place – it needs the last mile connectivity and development of Gas Economic Zones. Similar hubs can be developed around other domestic fields and LNG import facilities in the west and south. Accessing land through National Highways/State Highways, Railway lines, Water or Oil Pipelines would ensure speedy implementation of gas grids. Having state governments on boarded into this objective will ensure speedy clearances and prompt dispute resolution, and enforcing pipeline ROU rights, resulting in creating end mile connectivity. 3. Linkages to Tap Global Gas: India needs to fully tap the global gas glut. There are too many LNG projects coming up globally – one train each 8 weeks for the next 5 years! Gas is abundant; it is readily available. This is the time to attract major gas players to come to India, invest and be part of the growth – similar to what is happening with the refining and fuels marketing business. These major players will then become India’s partner in ensuring uninterruptable supplies come in and also help in developing transnational pipelines so that India is linked – in any which way to the global gas market. 4. Policy Reforms in Downstream to Move from Monopoly to Competition: For gas and gas based industry to prosper, we must move to a market place where the consumer is agnostic to the source of gas supply and they must have multiple competing gas supply options to ensure that supply is available, affordable and sustainable. Unbundling marketing and transportation assets like in many markets around the world; with true common carrier access to infrastructure will be needed to stimulate competition and provide supply options to the customer. The world, as we know, is fast moving towards Gas as its primary energy source and this growth is rising due to 4 key value propositions that only natural Gas has. I spoke about its Abundance and Availability. It is also Affordable today (HH at USD 3 and spot LNG at USD 5-6), Acceptable as it has a cleaner footprint than coal or liquid fuels. So I wrap up my introductory remarks with this last important fact a 10 per cent replacement of liquid fuel by gas will reduce our import bill by nearly 3 billion dollars every year… if not for any of the other fine attributes of natural gas, just for this significant savings India has a business case to switch fast to natural gas. Role of Technology in Offshore E&P Operations in India Technology has become very relevant in different fields of life over the past few decades. Today, no industry can exist or become fully operative without the optimum use of technology. Oil and Gas have direct influence on every other commodity in the market. Therefore, it is critical to identify
Offshore World | 21 | August-September 2016
www.oswindia.com
INTERVIEW risk and solutions through technological innovation to maintain global economic balance and need.
Mumbai ` 150
www.oswindia.com www.oswindia.com
VOL. 13 ISSUE 1
Energy is a theme which is intrinsically intertwined with our purpose as an organization. Worrying about meeting the energy needs of the population in a sustainable and affordable manner into the future is our third area of community investment focus.
DECEMBER 2015 - JANUARY 2016
A solid foundation in mathematics and science paves the way to logic & reasoning and good engineering skills. We believe this is critical for the country. STEM (Science, Technology, English and Mathematics) foundations need to be strengthened and boosted across education delivery in order to produce a workforce with a scientific bent of mind for the future.
OFFSHORE WORLD
The need for skilled labour with appropriate safety training cannot be overstated. The country as a whole is poised for significant spike in manufacturing and production and skilled safety conscience labour is going to be in demand. BP is focussed on delivering safety at the bottom of the skills pyramid.
` 150
CSR and Talent Development in India At BP we strongly believe in building long term and sustainable partnerships with the communities around us. We want to make a positive difference, wherever we do business. Social investment is one of the many ways in which we contribute to the communities around us. Globally, our focus is on access to education, building enterprise and ensuring access to energy. In India, we have fine-tuned the social investment strategy to adapt to the specific needs of the community around us.
Mumbai
Some of the key lessons that have emerged from our exploration campaigns are that while geological risks are very high, prospect sizes are typically small and scattered over large areas (thousands of square kilometres) and at big distances (30 to 350 km) from shore.
www.oswindia.com
VOL. 13 ISSUE 1
Key will be selecting right technology as per the requirements is very critical. We are now seeing upstream companies selecting an increasingly varied set technology to achieve their development needs. Lots of intensive researches are being done on technology in the recent time and these have resulted to unimaginable impact in the oil and gas industry.
INSIGHT INTO UPSTREAM & DOWNSTREAM HYDROCARBON INDUSTRY
DECEMBER 2015 - JANUARY 2016
An abundance of supply and a fall-off in demand growth have driven energy prices down and constrained the funds available for investment. Such price falls compel the industry to develop new technologies to reduce costs. Technologies such as enhanced oil recovery, advanced seismic imaging, and digitisation will have a huge impact on which of the available fossil resources we develop, how, where and when. Innovation will not only help to sustain the supply of hydrocarbons.
VOL.13 | ISSUE 2 | FEBRUARY MARCH 2016 | US $ 10 | ` 150
VOL.13 | ISSUE 1 | DECEMBER 2015 - JANUARY 2016 | US $ 10 | ` 150
OFFSHORE WORLD
The world of energy faces some tough challenges in the decades ahead, particularly in meeting increasing demand with less environmental impact. Technology can play a major role in meeting these challenges by widening energy resource choices, transforming the power sector, improving transport efficiency and helping to address climate concerns out to 2050.
INSIGHT INTO UPSTREAM & DOWNSTREAM HYDROCARBON INDUSTRY
www.oswindia.com
Advancements in Oil & Gas Industry
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, covers insights into Exploration & Production, EPC/M in Oil & Gas Industry, Hydrocarbon Infrastructure viz; Oil & Gas Logistics, Transportation and Pipelines; Hydrocarbon Processing & Refining; Natural Gas and LNG through articles and features by industry Leaders and Dignitaries. The publication also carries inputs and views of Policy & Regulations; latest trends and technology from Policy Makers and Experts from Hydrocarbon Industry. You can share technical articles, case studies, and product write-ups in OSW. • Article length should around 1500-2000 words, along with maximum three illustrations, images, graphs, charts, etc. • All images should high resolution (300 DPI) and attached separately in JPEG or JPG format. • Product write-up length should be around 150-200 words, along with image of the product and contact details. 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 – www.chemtech-online.com Thank you, Regards, Nidhi Agrawal (Sub- Editor) Jasubhai Media Pvt Ltd Tel: +91 22 4037 3636 ( Dir: 40373678) | E-mail: nidhi_agrawal@jasubhai.com
Offshore World| |22 10| |August-September August-September2016 2016 Off shore World
INTERVIEW
INTERVIEW
‘Wärtsilä sees a promising future for gas-based systems in India’
Offshore World | 23 | August-September 2016
Wärtsilä has indigenous designs and a large portfolio to provide one shop solution for small scale LNG vessels, which will be mandated for inland waterways, coastal shipping and transportation of gas from main terminals to islands and other locations, says Parvez Chughtai, Associate Vice President Marine Solutions, Wärtsilä India. He shares his views on the company’s offering solutions to marine and energy markets and future plans, in an interaction with Rakesh Roy.
www.oswindia.com
INTERVIEW
Wärtsilä sees a promising future for gas-based systems in India and looks forward to supporting the market needs as a solution provider.
What are the services and solutions Wärtsilä India’s offerings for the entire Oil & Gas industry? Wärtsilä provides complete lifecycle power solutions for the marine and energy markets. Wärtsilä has been recognised as a market leader in providing gas-based marine solutions that are customised, reliable and affordable to its customers. Gas has different compositions and needs adaptation for each solution. Wärtsilä has a vast portfolio for the Oil and Gas industry, and is a solution provider for this market – right from ship and cargo tank design, LNG/Bio gas receiving terminals, LEG/LPG carriers to following systems, Inert gas, flare gas recovery, flare gas ignition, hydro carbon blanketing, VOC recovery, gas reformer, cargo handling for gas carriers, cargo handling for fully refrigerated vessels, LNG liquefaction and regasification, reliquefaction, LNG pac, tank control systems, etc. Wärtsilä has 50 years of experience in this field, and is a world leader in supply of the above solutions with very mature technologies. We work with the most reputed customers in the world and hold a good market share. Wärtsilä sees a promising future for gas-based systems in India and looks forward to supporting the market needs as a solution provider. India’s Natural Gas Vision has underscored the development of Natural Gas market across various application areas and establishment of allied infrastructure in India. What kind of challenges & opportunities will be available in Indian Gas market? The market offers vast opportunities, right from setting up of LNG receiving terminals, FSRUs and shore-based regasification facilities, to transportation through small-scale LNG vessels and allied infrastructure and EPC requirements. India has faced some major challenges with LNG, LNG storage systems and allied infrastructure for distribution in India. For example, the Kochi terminal of Petronet LNG lacks a distribution pipeline network, and the terminal is therefore of very limited benefit to users of natural gas. What are the other business challenges related to transportation & storage of natural gas in the country? The technical requirements for LNG storage systems can be addressed by OEMs. However, the development of the downstream market and gas provisioning need necessary support through policy making and timely implementation to expedite the LNG story in India. www.oswindia.com
Petroleum minister Dharmendra Pradhan has recently issued a statement on doubling the R-LNG capacity in country – what kind of opportunities do you see as the EPC contractor? What steps would the industry and the government will have to take to realise the same? Wärtsilä is a leader in Oil and Gas technologies and looks forward to supporting the market through its value propositions. We look forward to higher opportunities and hope for speedy realisation of projects under consideration by various stakeholders. We look forward to speedy decision-making, with an even playing-field in terms and conditions, to ensure viability of projects. How do you perceive the growth of natural gas in India with the current falling oil prices? The dropping of oil prices globally has certainly proved to be a major challenge, and has inevitably led to the slowing down of exploration & production activities, even in basins with proven oil and gas reserves. However, given the pollution levels in India and the demand for peaking power requirements, there is a clear case for introduction of LNG at a fast and sustained pace. Now that GST is likely to be implemented, what are the bottlenecks that you feel still need to be sorted? A major problem of implementing GST would be the mode of recovery of this tax for the second seller. The law still lays the entire onus on the second seller of proving that the tax was indeed paid by the original seller. If, after a couple of years, it comes to light that the tax was not paid to the government by the original seller, the entire set-off amount claimed by the second seller will be reversed, along with interest and penalty. This is not an ideal situation, since it is extremely difficult for the second seller to access the books and payment records of the original vendor. May we have your comments on collaboration with Indian shipbuilding companies to build LNG vessels under ‘Make in India’? Shipbuilding in India has unfortunately shrunk after the abolition of the 30 per cent government subsidy that shipyards received on export new buildings until 2007. Frankly, I hope something comes of the GAIL India plan to build LNG ships in India. Wärtsilä is looking keenly at the possibility of these sophisticated
Offshore World | 24 | August-September 2016
INTERVIEW INTERVIEW
The market offers vast opportunities, right from setting up of LNG receiving terminals, FSRUs and shore-based regasification facilities, to transportation through small-scale LNG vessels and allied infrastructure and EPC requirements.
ships being built in the country; we would definitely bid to contribute equipment to such vessels. Cochin Shipyard is right now trying to collaborate with South Korea to build LNG vessel indigenously. Are there such technology collaborations that Wärtsilä would seek in India? Wärtsilä with its high competency in provisioning gas solutions can support Indian shipyards in building LNG vessels, and looks forward to such partnerships fructifying in the future. Wartsila has indigenous designs and a large portfolio to provide one shop solution for small scale LNG vessels, which will be mandated for inland waterways, coastal shipping and transportation of gas from main terminals to islands and other locations. We look forward to working together with Indian yards for gas solutions in near future. What are the challenges that you see here in terms of availability of trained skill set and how can these be addressed? Skills can be generated through training and support. Induction of any new technology demands efforts for acquisition of new competencies. However, with our vast experience in this area, we do not see the same as an insurmountable difficulty. Please share the future plans of Wärtsilä in India and globally. Wärtsilä India has contributed immensely to the power segment of the country, delivering nearly 250 power plants with a combined output of over 3,500 MW. We take care of the operation and maintenance on behalf of our customers in over 55 power plants (including steam and wind turbines) with a total output of over 1000 MW in India. We are looking to produce more marine equipment in India. Of course, we would have hoped that shipbuilding would be bigger here, especially because that activity has shrunk so much in China in the past few years. It is a little disappointing to note that just 0.2 per cent of the world’s shipbuilding is done in India; and the figure has come down steadily from 1 per cent levels in the past 15 years. The trend can be reversed with the introduction of progressive policies.
are doing well. We have recently delivered engines and equipment to two huge LNG-fired power projects in Kerala and Assam, and we are hoping LNG will pick up further. We have considerable experience in providing propulsion solutions for dredgers, and have worked closely with IHC, with whom Wärtsilä has a strategic alliance. The engines selected for these vessels have exactly the right output power for the ships’ operational profiles and will be tuned accordingly. At the global level, Wärtsilä last year completed a major acquisition on the marine side, in the shape of the Germany based L-3 Marine Systems International (MSI), which operated from 38 locations in 14 countries and had more than 1,700 employees on its payroll. By June 2015, MSI had been fully integrated into Wärtsilä. Our strong position in the development of technologies that enhance operational efficiency has been further strengthened with the addition of MSI’s broad range of capabilities. On June 30 this year, Wärtsilä signed an agreement to acquire the Helsinkibased Eniram, a Finnish technology company providing the maritime industry with energy management and analytics solutions. Eniram provides the technology to reduce fuel consumption and emissions, with its solutions ranging from single on-board applications for trim, speed and engine optimisation to comprehensive fleet analysis. The company’s solutions have been installed in over 270 vessels, saving fuel, increasing profitability and reducing harmful emissions. The acquisition of Eniram is expected to enable Wärtsilä to grow and strengthen its digital offerings and in-house capabilities, specifically in data analytics, modelling and performance optimisation. In short, we would look forward to being a solution provider in all these sectors, and remain on the lookout for more opportunities in the market.
Wärtsilä has three strong divisions – Energy, Marine and Services. Even if there is over-capacity in Marine, we are looking at the segments that Offshore World | 25 | August-September 2016
www.oswindia.com
FEATURES
Product Innovation: Aqueous-based Pour Point Depressants During production, oil can change both chemically and physically as it moves from the reservoir to the refinery. These changes can contribute to problems related to solid precipitation, deposition, phase separation, materials integrity and EHS. Oil production chemicals are often used to address these problems. Pour Point Depressants (PPDs) and wax inhibitors form an important part of this segment and play a critical role in controlling the adverse impact of paraffin (wax) precipitation and gelation during crude oil production and transmission. Increased production of waxy crude oils in areas with lower temperatures and pressure is expected to lead to increase in usage of PPDs. The article explains about the necessary technical development efforts to make them more efficient and sustainable.
Amidst increasing complexity of oil field development projects, oil and gas producers continually look for opportunities to reduce cost and improve product performance. The industry depends on new technology to improve reliability, EHS (environment, health, safety), application performance and price. During production, oil can change both chemically and physically as it moves from the reservoir to the refinery. These changes can contribute to problems related to solid precipitation, deposition, phase separation, materials integrity and EHS. Oil production chemicals are often used to address these problems. Production chemicals are expected to account for 23 per cent of the global sales for oil field chemicals with forecasted sales of USD 30 billion in 2019 1. Pour Point Depressants (PPDs) and wax inhibitors form an important part of this segment and play a critical role in controlling the adverse impact of paraffin (wax) precipitation and gelation during crude oil production and transmission. Increased production of waxy crude oils in areas with lower temperatures and pressure is expected to lead to increase in usage of PPDs, thereby necessitating technical development efforts to make them more efficient and sustainable. PPDs - State of Art and Market Waxes or paraffins (linear and branched aliphatic molecules, > C18) in crude oil can form three dimensional crystal networks due to the reduced solubility resulting from changes in temperature, pressure and composition of the crude oil upon exiting the well. PPDs and wax inhibitors are usually polymeric materials that inter fere with the cr ystallisation of waxes thereby preventing crude oil gelation, wax deposition, flow restriction and ultimately plugged production piping. Traditional PPDs are typically dissolved in organic solvents in order to pump and inject them downhole or into transport pipelines. However, their limited solubility in these solvents necessitates the production of low active content products. This leads to increased handling, transport and storage costs. It also introduces safety hazards (flammability) and health concerns into the logistics considerations. In addition, for use in arctic environments that require stability as low as -40°C, their applicability is significantly restricted due to extremely low solubility of the polymers in organic solvents. In terms of global consumption of oil production chemicals, pour point depressants account for 6% share by value and 9% share by volume (on www.oswindia.com
a formulated basis) when benchmarked against other specialty chemicals like demulsifiers, corrosion inhibitors, water clarifiers, biocides, scale inhibitors, H 2 S scavengers, gas well foamers and other miscellaneous additives 1 . The difference in their value vs. volume share is par tly attributable to the relatively low active content composition of the conventional PPD formulations. Aqueous-based PPDs – Value Proposition As par t of a continued endeavour to offer innovative produc ts and technologies to its customers, Dow Chemical’s Oil, Gas & Mining business has recently developed novel aqueous dispersions of PPD polymers. The dispersions, prepared using a Dow proprietary technology produce products with high active polymer concentration. As a result, dispersed products with 30-50% active content have been prepared making them 6-10 times more concentrated than traditional solvent based PPDs 2 . The impact of this paradigm shift is reflected in transportation and logistics costs savings which get magnified at higher dosing, as represented qualitatively in Figure 1. Higher active content translates into a lower total formulation dosage requirement of the aqueous-based PPD in field application which is a distinct operational advantage.
F igure 1: Graphical representation comparing the required volume of an aqueousbased PPD compared to a traditional solvent-based PPD.
Offshore World | 26 | August-September 2016
FEATURES This indicates a preferential dissolution of the copolymer in the oil phase and hence effectiveness where water is present in the crude. Lab trials simulating field conditions have also confirmed good pumpability and shear stability of the aqueous-based PPDs. Furthermore, shelf life investigation and thermal exposure studies have not shown any adverse impact on the product properties including viscosity and phase stability, thereby confirming their suitability for downhole applications 2.
Figure 2: Comparison of pour point reduction observed with aqueous-based PPD 1341 and xylene-based PPD on North American crude oil.
When benchmarked against conventional solvent-based PPDs in terms of performance at same active copolymer concentration (5% actives), the aqueous-based PPDs (30% ac tives) demonstrate per formance differentiation at lower formulation dosages as shown in Figure 2 due to higher concentration of active in the formulation. S ome of D ow ’s aqueous PPDs are freeze protec ted to ensure their pumpability at temperatures as low as -40°C. Although a slight increase in viscosity is obser ved with decrease in temperature, all the sample viscosities remain below 2 Pa-s, typically considered the threshold for pumpability. Figure 3 shows the viscosity vs temperature profile of the freeze-protected formulations from -40°C to 20°C. The winterised PPD grades were further benchmarked against the non-winterised grades at equivalent active dosages and were found to deliver statistically similar performance indicating that the additional freeze protection does not limit the effectiveness of the PPDs 2 .
Path Forward The increased focus on production of waxy crudes in colder climates, coupled with the efforts of service companies to control cost necessitates a major shift from the conventional oil field production chemicals and solutions, including PPDs. Although conventional PPDs may meet the current field requirements, there are several value drivers to improve their performance robustness, transportation limitations, logistics footprint and environmental profile. These are critical attributes for service companies who are balancing the conflicting demands of global field presence and local product customisation. Dow’s aqueous PPDs have shown promising performance with wet and dry crude oils from Africa, North America and Russia, delivering pour point depression of up to 30°C. In addition, their good rheological properties, stability and pumpability suppor t successful field application. Freeze protection, high active content and good environment profile provide further operational advantage over conventional organic solvent based PPDs and represent a significant advancement in flow assurance technology. References 1. Schlag et al; ‘Oil Field Chemicals report - Specialty chemicals update program’; IHS Chemical, December 2014 Rev June 2015 2. Potisek et al; ‘High active aqueous-based pour point depressants and wax i n h i b i to r s’ ; S P E - 1 7 3 7 9 9 - M S , S P E I n te rn a t i o n a l Sy m p o s i u m o n O i l f i e l d Chemistry, April 2015
Dow’s aqueous PPDs have been shown to perform well in wet crude oil. Experiments conducted with standard brine (20-40%) mixed crude oil samples showed the same reduction in pour point as that measured in the neat crude.
Ritesh Gulabani Senior Technical Service & Development Manager Dow Oil, Gas & Mining Dow Chemical International Pvt Ltd Email: rgulabani@dow.com
Larisa Mae Reyes Associate Research Chemist Dow Oil, Gas & Mining The Dow Chemical Company Email: lmquijano@dow.com Figure 3: Low temperature viscosity profiles of freeze-protected formulations. Offshore World | 27 | August-September 2016
www.oswindia.com
FEATURES
Increasing Refinery Margins with Automation and Behavior Changes Key Focus Areas include Responsiveness, Utilisation, and Energy Efficiency While the falling crude prices since the end of 2014 has uplifted the margins of refiners worldwide, the supply glut versus dismal demand is a matter of concern for refiners. To take the advantage of discounted crude oils, the business focus of refineries has shifted to serve new markets when traditional markets are suppressed and shift behavior to operate safely and reliably with fewer experienced staff. The article focuses on three key areas - responsiveness, utilisation, and energy efficiency - where refiners have changed their behaviors related to automation enhancements that positively impact refinery margins.
W
ith the sudden drop in crude oil prices at the end of 2014 and increase in global supply versus demand, refiners have enjoyed an uplift in margins. However, as fuel product supplies have increased beyond demand, the margins have recently fallen. Refiners are still profitable, but their business focus has shifted to take advantage of discounted crude oils, serve new markets when traditional markets are suppressed, and shift behavior to operate safely and reliably with fewer experienced staff.
out more easily and result in accelerated and unpredictable fouling in the pre-heat exchangers within the crude unit. It should also be noted that the percentage of crude oils blended will have an impact on crude incompatibilities. For example, an 80-20 blend with 20 per cent light tight oil may not be enough to see accelerated fouling, whereas a 70-30 blend may be unstable and have additional unwanted fouling. In order to maximise the use of discounted crudes, refiners have recently installed online measurements (typically WirelessHART sensors - IEC 62591, EN 62591) around each heat exchanger bundle within the crude unit. These data points can be analysed with in-house or with solution provider analysis software to alert when the rate of fouling has increased. This valuable insight to the rate of fouling information can be used to adjust the current blend percentage to mitigate the accelerated fouling, and then this learning can be used in the future to avoid incompatible crude oil blend percentages. In addition, refiners working with volume flow for crude blends can experience overall volume shrinkage when blending a heavy and light crude oil; this 8
Brent crude oil price (USD) over the past 5 years
Three key areas - responsiveness, utilisation, and energy efficiency – should be focused, where refiners have changed their behaviors related to automation enhancements that positively impact refinery margins. Responsiveness The petroleum refining industry has notably changed over the past few years with an abundance of discounted ‘opportunity’ crude oils available, the expansion into markets served beyond the traditional local or regional demands, and staying focused on being both competitive and profitable while complying with ever-changing regulations. With various influences on the refiners’ business, the key to improving refinery margins is to have the refinery available and responsive to opportune market conditions. Today, refiners are trying to maximise the use of discounted opportunity crude oils without increasing risk related to asset integrity (corrosion) or production availability (fouling) while maintaining crude oil properties to best match the refinery design capabilities. Rarely do refineries process one type of crude and often the crude comes from varying locations. The abundance of discounted opportunity crude oils available has meant that refiners are constantly blending to match the design and processing capabilities of the refinery—and often crude oil blends can be incompatible with each other. With incompatible crude blends, asphaltenes precipitate www.oswindia.com
l Easy set-up of network
and HART devices l Self-organizing, adaptive mesh network l Seamless integration to existing hosts
l Robust, multi-tiered
always-on security l Device authentication and passwords l Industry standard data encryption
l Channel hopping to avoid interference l Time-synchronized communication l Redundant self-healing network
WirelessHART 8 back in 2010 became the process industry’s first international open wireless communication standard (IEC 62591, EN 62591).
Offshore World | 28 | August-September 2016
FEATURES volume shrinkage phenomenon is not observed when using mass flow to blend crude oils (the volume may change, but the mass does not). Some opportunity crudes can also be high or near high TAN, thus the importance of online corrosion and inferred corrosion monitoring, proper corrosion inhibitor injection, and inspections during turnarounds all contribute to reducing the risk of corrosion and potential piping failures. Today, refiners have more non-intrusive monitoring solutions available to use along with traditional intrusive methods. Most refiners agree that having multiple monitoring and inspection methods are needed to mitigate risk of corrosion since it can still happen in places of the refinery not expected. Some refiners are also upgrading their piping metallurgy and control valve internals to accommodate higher TAN opportunity crude oils as another means to reduce risk of unwanted corrosion when using these crudes. In addition to maximising the use of discounted opportunity crude oils, many refiners have expanded to other markets beyond traditionally served. For example, the United States became a net exporter of petroleum products in 2011. With varying markets to serve, each can have different product specifications resulting in additional complexity to the product blending system. Refiners are looking for automation solution providers to deliver reliable and repeatable blending capabilities to ensure on-spec products and best use of all fuel components; such as not using high octane alkylate in the regular octane gasoline blend. Several countries have also implemented lower sulfur regulations in the fuel products, thus adding one more constraint to the blending system.
US Department of Energy, Energy Information Administration
It seems regulations are always changing and requiring further investment into the refinery capabilities, and many times without a return on that investment. Some refiners have a longer term vision and make additional investments to ensure a return on investment (ROI) when meeting new regulations. One example is the ULSD investments a decade ago with many refiners investing in hydrotreaters to comply, whereas some refiners invested more in hydrocrackers to provide additional flexibility and margin potential beyond the ULSD regulation requirements. Refiners should evaluate all investment options when considering new regulatory compliance requirements. Utilisation When market conditions are favorable for refiners, they are anxious of an unscheduled slowdown or shutdown to interfere with their ability to serve the market during opportune times. There are significant differences between refiners with those cultures that focus on failure elimination
compared to those cultures that believe failures are inevitable, so their primary focus tends to be reacting rather than planning. The later culture also finds the ability to shift beyond a reactive maintenance programme to be overwhelming and impracticable to achieve, mostly because they seem to always be chasing the next asset failure or unscheduled shutdown. Refiners may find that enlisting outside expertise can make the advancement to condition-based and planned maintenance processes much easier. Most older refineries were designed and built with minimal amount of instrumentation to safely operate the refinery, not necessarily operate it efficiently or reliably. Instrumentation was expensive in the past; so typically only critical assets were wired with online monitoring and/or protection. Today, instrumentation is relatively inexpensive but it is the wiring installation costs that prohibit additional asset health monitoring capabilities. Online data from sensors has been available for decades, but a transformation is now taking place due to the low cost and quick installation time for wireless sensors when compared to their wired counterparts. Examples of wireless applications include vibration sensing of rotating equipment, ultrasonic leak detection, steam trap monitoring, corrosion and erosion detectors, flows, pressures, and temperature measurements. These and other wireless sensors are providing additional insight into asset health at many process plants; this awareness has resulted in lower maintenance costs and energy usage while reducing downtime and mitigating the probability of a safety or environmental incident. Online data from sensors, both wired and wireless, can be analysed and used to provide plant operators with the actionable information to make timely decisions for improving asset reliability and efficient operations. Data from these additional sensors can be analysed and turned into information by a variety of commercially Additional measurements enable the opportunity available software programs, for behavior change each of which can evaluate process and asset health data for abnormal operation and provide alerts. Properly trained operations are invaluable in this process, as they not only act on information from predictive analytics software, but often make decisions on their own based on sensor data. The traditional approach has been to collect and historise process data, and then only use the data to look back and evaluate after an incident. The new approach is to utilise predictive analytics software to automatically analyse data and turn into information; this new approach looks forward and alerts before abnormal operation or imminent failure, thus the ability to take appropriate timely action to avoid asset failure. Refiners can utilise software developed in-house or purchased from solution providers. The advantage of home grown software is lower overall costs and designed specifically
Offshore World | 29 | August-September 2016
www.oswindia.com
FEATURES for the needs of the refinery, whereas the disadvantages can be the time commitment to design and maintain the software. The advantages of a solution provider software package are easier to scale up for many assets, and software is maintained by the supplier. The disadvantages of a solution provider software can be higher costs compared to in-house development, and there may be customisation requirements to match site specific needs.
compliance. For refiners, key focus with energy efficiency typically is around the process fired heaters, boilers and steam generation, and steam usage within distillation columns. Refiners are aware that operating fired heaters with excessive oxygen is not fuel efficient, but most operate conservatively because of the severe consequences of operating without sufficient oxygen to burn all the fuel in the heater. One of the keys to energy efficiency is providing operations the confidence in their flue gas analyser measurements to operate efficiently. If operations are not confident, the heater operation will continue to operate with too much oxygen. Small reductions in excess oxygen can result in millions of dollars in fuel gas savings across several fired heaters throughout the refinery, not taking into account the reduction in emissions that come from operating more efficiently.
Online data collection can be analyzed and turned into actionable information
While this new asset health information can be effectively used to mitigate abnormal operation and asset failure for day-to-day operation, it can also be used for turnaround planning. There can be challenges with getting sufficient number of skilled craft for a turnaround, and it is no longer competitive to touch all assets during a turnaround. The end result is that scope turnarounds have been reduced from a traditional duration, but the main question is how was the scope cut? Most refiners utilise a risk based matrix calculation that may or may not include the asset health measurements. Best practices utilise asset health insight (beyond a single data point) with integrating risk analysis into the deferred maintenance decision making. Having additional online asset health trends ensures only the assets that need attention during a turnaround are part of the scope, and this also provides confidence that an asset requiring attention was not missed when reducing overall scope. Energy Efficiency The Energy Intensity Index (EII) as benchmarked by Solomon Associates measures energy efficiency in the petroleum refining industry. The EII is an aggregate value that essentially indicates how much energy is expended to process each barrel of crude oil – the lower the number, the more efficient the operation. A Solomon EII value of 100 is standard; a Solomon EII plant specific value below 100 indicates a more efficient plant, while a value above 100 indicates a less efficient plant.
Operating with optimal excess O2 in fired heaters can provide significant operating savings
For example, Emerson Process Management’s combustion solution utilises a ‘consumed air’ model to adjust for changes in fuel BTU. This model calculates the heat release of the fuel based on the amount of O2 that is consumed in the combustion process. The consumed air model requires a measurement of the airflow to the furnace as well as the stack O2 content. Also, fuel BTU indication can also be obtained from a specific gravity meter to reduce variability in the fuel for the fired heater. An O2 trim controller is used to trim the air demand based on the desired percent stack O2. A CO override controller relaxes the O2 target when CO levels in the stack gas increase. A draft pressure override controller may also override the air damper demand to prevent operating in an unsafe region.
According to the Solomon guidelines, differences in crude characterisation, petroleum products generated, technology and general practices can be significant in determining a refiner’s energy use. As mention early, refiners are taking advantage of discounted opportunity crudes which can make it challenging to operate energy efficiently, especially if incompatible crude blends contribute to be accelerated fouling in heat exchangers. Because reducing energy consumption is important to society and the environment, as well as industrial competitiveness, energy efficiency improvements always deserve attention.
Boilers have similar issues as fired heater related to excess oxygen use, but have one additional challenge related to the use of steam throughout the refinery. Since demand for steam fluctuates and can change quickly in comparison to the boiler operations, most refiners operate with excess steam and vent what is not needed (trim control). Unfortunately, the excess steam generated beyond what is needed results in higher boiler operating costs and emissions. Both have a negative impact on refinery margins. Utilising boiler consultants and advanced control applications can mitigate the generation of excess steam, and take a closer look at the actual demand for steam.
Many different factors can affect energy use in a refinery, and in nearly every site, there is the potential for energy efficiency improvement. Automated process controls can have long-term benefits not only for improving energy efficiency, but also to control and monitor CO2 emissions related to regulation
One cannot just look at the boilers and steam generation system without also looking at the steam usage or demand for steam, especially in distillation columns. Many refiners use too much steam in distillation columns and over-reflux resulting in less throughput and over purifying products beyond
www.oswindia.com
Offshore World | 30 | August-September 2016
FEATURES specifications. Steam to the column reboiler determines the vapor-liquid traffic going up and down the column, so excess vapor traffic will limit overall column throughput. In addition, over-purifying a component can impact overall yield. For example, if the spec is 99.0% component A (high value) with less than 1.0% component B (lower value), why would a refiner purify the distillation column overhead to 99.5%? This would mean missing out on selling 0.5% component B for the higher value of Component A. Distillation columns that implements advanced process controls (APC) on them typically see a reduction of double
Next iSSue focuS:
automatioN iN oil & GaS iNduStry The forthcoming October November 2016 issue of Offshore World is themed “Automation in Oil & Gas Industry” and will cover insights on Automation & Instrumentation for the Entire Hydrocarbon Industry and views of the companies that successfully employ automation and significantly improve their bottom line.
Some of the topical iSSue will cover:
Excess Reflux can be costly and limit overall throughput
Intelligent Oil Platforms, Digital Oilfield
•
Internet of Things (IoT), Big Data Analytics, Robotics in Oil & Gas Maximizing Asset and Well Integrity through Automation
•
digit steam usage, lower probability of column flooding with reduced reflux, an increase in overall column throughput, and the ability to operate consistently and energy efficiently across all shifts no matter the console operator. Closing Thoughts Advances in automation and wireless have enabled refiners to invest in additional measurements, but that is only the beginning. For improved refining margins, the new process and asset health measurements need to be analysed, alerted when abnormal, and acted on appropriately in time to prevent failure. The new information should not create confusion when an alert is triggered, thus training staff to use this new insight is part of the behavior transformation. This also means that refinery staff can now focus on higher value tasks such as operating efficiently and reliably; while maintenance focuses on repair and maintenance, rather than hunting for problems with manual checks in the field. Refiners that focus on responsiveness, utilisation, and energy efficiency with the capabilities of automation can change refinery behavior in a proactive manner and increase overall margins.
Tim Olsen Refining Consultant Emerson Process Management Email: Tim.Olsen@Emerson.com
•
•
Downhole Instrumentation – Drilling Automation
•
Wireless Solutions for Oil and Gas Applications
•
Automation in Pipeline transportation of liquid and gaseous Hydrocarbon
•
Pigging in Pipeline
•
NDT for Offshore Pipeline
•
Automation for LNG Carrier
•
Future Refinery Automation in realising Euro VI fuel Norms
•
Sensor based robotic automation real world demonstration in oil and gas industry
• •
Automated catalytic reduction system Real time optimization of Hydrocarbon production system
• •
Future automation for Oil & Gas Industry Benefits of manufacturing execution system for plant-wide automation
•
Decision support and workflow automation in Hydrocarbon industry
•
Oil & Gas terminal & Storage Automation
For editorial submission in Offshore World, please contact:
Nidhi Agrawal Sub- Editor Offshore World Email: nidhi_agrawal@jasubhai.com OffshoreWorld World||31 17||August-September August-September2016 2016 Offshore
www.oswindia.com www.oswindia.com
FEATURES
New-age Technologies Transform Oil & Gas Companies into Digital Enterprises The unpredictability of declining oil prices has slashed profit margins, intensifying pressure on Oil and Gas (O&G) industry to get a handle on their inefficiencies, rein the operating costs and reduce downtime. While all the three major aspects of the O&G sector worldwide – upstream, midstream and downstream – are faced with many challenges, it could certainly use a game changer to deal with the many challenges it faces – technology and digitisation. The industry is expected to leverage technology in order to optimise asset utilisation, improve operational efficiency, gain sustained performance and deliver better experiences. The article explains on technologies such as Big Data and Analytics, data management and platforms, Internet of Things (IoT), IT modernisation, virtual reality, robotics, machine-to-machine (M2M) learning and real-time solutions that will play an imperative role in guiding the future for the O&G companies in terms of digital refinery, connected fueling, remote pipeline monitoring, etc.
T
he Oil and Gas (O&G) industry is a globally integrated one. It is a key indicator of how economies around the world perform and define their monetary policies. Further it has a multiplier effect on the growth of secondary industries such as the production and sale of heavy machinery, motors, pumps, drills, transportation, automobiles, chemicals, etc. According to the International Energy Agency (IEA), the oil products demand in India is said to continue on an upward trajectory, rising two-and-a-half-fold to 10 million barrels per day (b/d) by 2040, which is the biggest rise projected for any country. Experts feel that the Smart Cities mission and the boost from the Make in India campaign for manufacturing will further drive this rise.
As the O&G sector comes face-to-face with reality, it could certainly use a game changer to deal with the many challenges it faces – technology and digitisation. The industry is expected to leverage technology in order to optimise asset utilisation, improve operational efficiency, gain sustained performance and deliver better experiences. Technologies such as Big Data and Analytics, data management and platforms, Internet of Things (IoT), IT modernisation, virtual reality, robotics, machine-to-machine (M2M) learning and real-time solutions will play an imperative role in guiding the future for the O&G companies in terms of digital refinery, connected fueling, remote pipeline monitoring, etc.
While demand for oil and gas is always on the high, the industry faces a few challenges nevertheless. Geopolitical events, globalisation, pricing, environmental change influence, demand and low availability of workforce are affecting the industry now, more than ever. The unpredictability of declining oil prices has slashed profit margins, intensifying pressure on companies to get a handle on their inefficiencies, rein the operating costs and reduce downtime.
While we can expect a lot of transformation in the industry, below are a few areas where we will especially see technology influence and digitisation taking place.
All the three major aspects of the O&G sector worldwide – upstream, midstream and downstream are also faced with many challenges. Upstream companies, involved with exploration and production (E&P), explore new hydrocarbon fields, develop them and produce petroleum are mainly affected by the increasing dollar valuation. They are on the constant lookout for better machinery and skillful workforce to operate the electrical equipment. The Midstream firms, which take care of transportation, shipping, pipeline management and liquefied natural gas (LNG) terminals, are whereas concerned with asset management and its effective usage. They run on the principle that ‘less the breakdown, better the productivity’. On the other end are the downstream companies which are concerned with the refinery processes of crude oil to produce different products such as petrochemical plants, polymers, plastics, etc. With focus on customer factors and trends which change on a continuous basis, the challenge arises in transportation and tracking of the trucks’ movements, theft of the product in the trucks, adulteration, etc. Availability of workforce on a contract basis is a matter of concern as well. www.oswindia.com
Streamline Inventory Management With the infusion of new technologies such as big data and analytics, companies seek to improve reliability, optimise operations and create new information and value. This helps in minimising the risks to health, safety and environment, improve cost and capital efficiency, explore new avenues for income and competitive advantage that transform the business. Through analytics we can predict the demand and accordingly produce and distribute the products to the relevant markets. Open communication protocols, sensors, advanced wireless mesh networks, augmented intelligence through integrated devices and asset-management analytics facilitate a shift towards condition-based predictive strategies. One will slowly see a change of mindsets from preventive planning to predictive planning. Companies have to invest in measuring this predictability of demand which is linked to the production. This will help in addressing a lot of challenges faced by the industry. For example, demand for digital oil-field applications will rise due to the plunge in oil prices. In such cases, one can avert the need for physical on-site inspections by creating opportunities to connect multiple platforms which can be operated remotely from a single onshore center. Having more automation in oil fields and using data analysis is considered the way forward. The constant stream of data produced by automated equip-
Offshore World | 32 | August-September 2016
FEATURES ment also known as measurement data, will be mined, collected as big data, and altered into smart data through intelligent analysis. This will help us in understanding production processes better. One can soon see the future where valves will be operated by machines than people. The flying of workers to offshore oil platforms in helicopters may someday become an exception rather than a practice. Making Pipelines More Secure According to a Deloitte 2015 study, the promise of IoT applications in the O&G sector isn’t just about managing existing assets, customer relationships and supply chains. It helps in creating an entirely new value or asset (i.e.) information. To obtain the full value of IoT, O&G companies must have an integrated deployment strategy. The industry can benefit from the use of operational technologies to locate and exploit complex resources. The data generated from devices can also be used in a structured way to make hydrocarbon extraction and the various other successive stages before sale, more efficient and profitable. According to Oxford Economics, industry-wide adoption of IoT will increase global GDP by 0.8 per cent (USD 816 billion) during the next decade. Fuel leaks and thefts have to be considerably brought down. The aging pipeline networks, manual monitoring and use of control devices present both challenges and opportunities for midstream companies who can visibly up their game in improving reliability and pipeline safety. Use of big data and analytics helps in creating data about potential breaches with the help of advanced sensors placed inside and outside the pipeline. Amplify Customer Experience The O&G sector is customer driven and the consistent increase in demand worldwide is what drives the sector. The way forward for the firms, is investing intelligently in making the business economically and efficiently viable. Fuel retailers are boosting sales at their gas stations through alternative forms of income, by tying up with food and beverage (F&B) firms, opening convenience stores, fashion outlets, ATMs, etc. These are some of the existent practices nowadays in Asian countries. Going forward, the retailers have to focus on providing a complete digital customer experience for people visiting petrol pumps by enrolling in connected-car prototypes. This involves collecting customer information and analysing this data to gather more useful information. The future of retail marketing at petrol pumps is all about: • Correlating consumer profiles with fuel and in-store purchases across a specific retailer’s owned stations and franchisees • Adding more appeal to the traditional loyalty and reward programs of offering discounts and redeemable points • Combining the existing data on petro-cards along with data generated from cloud-enabled emerging telematics solutions and connected Vehicles • Facilitating predictive analytics and behavioral marketing by collecting data from social-media networks
Reporting by Exception With the availability of workforce on the downside, getting technology and easy to use software would benefit, so that even non-engineers can understand and operate them. Enterprise Resource Planning (ERP) will help with skilling and reskilling the people available and identify where the gap is. It will be useful in determining workforce triggered procedure to fix problems. Data collected through various means of monitoring is automatically gleaned to generate an estimate within minutes, thereby assisting in putting together a corrective-action plan immediately. Digital Transformation at Workplace An average worker in this industry is seven times more likely to be injured. This necessitates bringing the issue of safety and compliance to the forefront. Reshaping of the workforce is also necessary. If the O&G sector looks at employing and retaining some of the best talent in the market, then the need to offer a work environment that fits a millennial’s mindset. Experts have to be brought into a more virtual world so that they can guide people using technology and thereby bridge distances and expertise. Having mobile applications for maintenance – with solutions like Smart Glass, Guided Maintenance solutions, Remote Monitoring and Maintenance Solutions, etc. also helps. Digital Enterprises of Tomorrow The digitally connected O&G enterprises of the future will also see adoption of three-dimensional (3D) imaging technologies, smart robots, sensors and Machine-to-machine (M2M) learning. These will help with the right tools which can accurately identify and measure cracks, dents and corrosion on the pipeline’s outer surface. It can also help with the art of drilling and predict the availability of oil in the rigs. While these technologies will make things simpler and create a better world, challenges will crop up in terms of implementation and localisation of this for large scale public sector oriented industry. The O&G industry’s digital maturity is among the lowest, at 4.68 on a scale of 1 to 10 (1 - least mature; 10 - most mature), according to the MIT Sloan Management Review and 2015 Deloitte global study of digital business. Organisations need maturity to embark on this digitisation journey with the mindset to retract and modify their traditional policies and procedures. They need to give and get digital approvals and also imbibe a digital culture. This is where technology providers with strong domain expertise can step in, to help achieve digital transformation. They have to help with building a digital roadmap, assessing where to start from, identifying problem areas and solving them. They have to provide end-to-end digital adoption and device-level exposure to strengthen internal security and overall simplification of processes. In short, O&G industry has to rise to the occasion, reposition itself. The industry might not disappear, but it will be very different, a decade from now.
According to industry estimates, around 33 per cent of IoT-derived benefits for an integrated marketer can be achieved from connected marketing, if they are able to conceive a workable and secure system. Offshore World | 33 | August-September 2016
Sahil Dhawan Associate Vice President & Head Energy & Utilities Vertical (Asia, Middle East & Africa) KPIT Technologies Email id: Sahil.Dhawan@kpit.com www.oswindia.com
FEATURES
Paradigm Shift in Well Economics thru Robotic Well Interventions In the back of low crude prices, new oil & gas projects have been delayed or indefinitely postponed so production targets are now being met from existing wells and fields. While fields maturing, it is imperative for all offshore assets to have an efficient and reliable solution to enable increased oil production while minimising investment cost and ensuring profitability. In last two decades, e-line based Robotic Intervention has evolved as future methodology or practices of Well Engineering to enable recovery rates higher than 50 per cent in offshore assets. The article discusses paradigm shift in ‘Well Intervention’ that allows future smart robotic intervention to minimise intervention cost along with increasing life of the well.
W
e are in the third quarter of 2016 and Oil & Gas E&P business has adapted itself to the new low price regime. Objectives and outlooks have evolved to enable increased oil production while minimising investment cost and ensuring profitability. New projects have been delayed or indefinitely postponed so production targets are now being met from existing wells and fields. With fields maturing, the need of the hour for all offshore assets is to have an efficient and reliable solution which will reduce the cost of production. For last two decades, e-line based Robotic Intervention has evolved to reach the moment when it defines future methodology or practices of Well Engineering to enable recovery rates higher than 50 per cent in offshore assets. There are three paradigm shift in Well Intervention - firstly, adopting intervention as methodology of increasing life of well; secondly, when wells are designed to enable future smart robotic intervention’ and thirdly, adoption of robotic intervention to enable low
cost intervention - to recovery higher rate in minimum cost of production for the companies operating mature fields. Adopting Intervention as Methodology of Increasing Life of Well As wells are being designed, a universal design criterion is the capability to keep production flowing as long as possible without having to intervene in the well. This is why, typically, interventions are only done when something ‘breaks’ i.e. production becomes restricted, or stops or an unwanted production type begins. But this conventional strategy often forces operators into a position where they must cope with unnecessary levels of uncertainty, leading to inefficient responses. No other industry works on the principle of ‘fix it when it breaks’ approach and yet in the oil and gas industry billions of dollars are invested into putting wells in the ground only to squander the potential performance of the well and reservoir development through gross inefficiencies.
Figure 1 www.oswindia.com
Offshore World | 34 | August-September 2016
FEATURES Similar to a vehicle or other expensive asset, regularly performed maintenance will increase the current performance and extend the overall life of the asset. Operators can prolong production and achieve the highest ROI possible while simultaneously increasing recovery factor and reservoir drainage. This is point number one, illustrated in Figure 1. Figure 1 shows the theoretically understanding of higher recovery or increased life of well thru regular intervention and the data on the right courtesy Norwegian Petroleum Directorate shows the example of four fields in the North Sea which shows increased recovery thru management of wells thru Well. What happens when Operator Designs Completion based on Intervention Operators around the world design and complete wells based on production estimates and not based on future intervention plans. Planning wells with future intervention enables operators to extend live of well rather than only plan for side tracks or drilling new wells. An operator in Offshore India had to design well based on new found production zone in well which meant zonal isolation was required to enable production from different production zone. Operator planned the well with 4.5” tubing in combination with 2.313” SSDs. Prior to running completion, operator contacted Welltec to plan future intervention; and it was determined, intervention on e-line was not feasible due to well completion restrictions. Well completion was redesigned with 3.5” production string which could be intervened in future with e-line robotic Intervention. Well intervention was carried out with Well Stroker, and 3 SSDs were opened to enable production of the well. New Well Completion design enabled saving of OPEX reduction of USD 750,000 per intervention as no barge and CT was required for intervention. This has enabled the operator to complete the well with multi zonal completion enabling extending the life of well and increased ROI for single well CAPEX cost. Adoption of Robotic Intervention to Enable Low Cost Intervention Intervention is generally defined by three generic parameters which amazingly have no clear definition across the industry: efficiency, Reliability and Innovation. Welltec believes in defining efficiency as the ability to quickly mobilise, rigup, run in and out of the well, rig-down and demobilise off location, it’s clear that a WO rig is the lowest while slickline and e-line score the highest. Reliability is defined as the ability to solve the problem once on location.
Here the WO rig scores the highest as it can generally overcome even the most severe of challenges. On the definition of innovation, this is the ability to understand what the problem is, adapt to the challenge and bring the appropriate technology to bear quickly, minimising downtime and restoring production as quickly as possible. With real time, surface controllable features enabled by e-line versus the mechanical solutions offered by the others, it scores the highest in this category, offering a 40 per cent advantage over the WO rig. While a workover rig has the highest chance of success to rectify the problem, what about the trade-off on efficiency and innovation? Slickline may be efficient as per our definition, but what is the confidence level on its reliability and innovation to overcome and fix the unknown challenge? Overall, e-line stands out as the overall winner for these key elements of success. Another important factor which has not been addressed or scored, but should be considered as part of the innovation content is the ability to accomplish the work in the safest, most sustainable and cost effective way possible. A quick comparison of a CT unit to an e-line crew with regards to some simple metrics: total footprint, size, number of people, number and weight of lifts, sustainability, complexity of operations and carbon footprint, demonstrates that there is significant additional value to be gained from deploying e-line. If a WO rig were to be compared the contrasts become even greater. When you consider these additional benefits it becomes even more clear that an e-line solution offers significant advantages, especially if you’ve got the right portfolio of tools. That’s point number three. A few examples to highlight that approach are provided below: 94% Time Savings, Increased Safety and Cash Flow Offshore Mexico, subsurface safety valves (SSSV) require periodic function testing to ensure reliable operation when needed. Typically, they are tested and if they fail, a workover rig is scheduled to shut in the well and replace them. A new technique has successfully been implemented which precludes the requirement to shut in the production or even to mobilize a workover rig. Using the Well Cleaner
Offshore World | 35 | August-September 2016
www.oswindia.com
FEATURES Wishbone Honer (WBH), the operator has been able to repair the valve insitu with the well flowing. Analysis determined that often the SSSV failed to close completely due to debris which limited its ability to hold pressure during the testing. After careful planning, a Well Tractor® and Well Cleaner® WBH were mobilized and run on e-line to the desired depth. There the WBH was activated and cleaning of the SSSV and surrounding tubing was performed. Following the cleaning the SSSV was successfully tested. The entire operation was completed in only 18 hours compared to ~1 week for the rig operation to pull the SSSV. And the well remained on production throughout, demonstrating the benefits that e-line interventions can provide. Production Restored, USD 2 million Saved Onshore Nigeria, a retrievable safety valve assembly failed to seat properly in the tubing and flowed up hole with the production to get stuck somewhere near the tubing hanger; precise position unknown.
Offshore India, limited crane height, space and daylight operations posed challenges on a small platform to an operator trying to restore injection on a converted producer. A thorough risk assessment was conducted and equipment mobilized offshore to rectify the problem. The first run revealed that the GS profile couldn’t latch onto the lock mandrel completely. A Well Cleaner Power Suction Tool (PST) was then run to remove debris which had settled on top of the lock mandrel. The Well Cleaner PST uses a venturi system to create a powerful vacuum which agitates and mobilizes the debris, trapping it inside bailers and removing it from the wellbore. Once the Well Cleaner PST was recovered, the Well Stroker with GS pulling tool was run. It latched the lock mandrel and with one stroke pulled the reluctant lock mandrel (and attached T TSS) free. The entire assembly was removed from the well and injection established at 22,000 bwpd. The operation was carried out in only three days and provided significant savings, approximately 90%, versus a barge-based, coiled tubing operation.
More than 1,000 slickline jar attempts were made to free the fish. Indicators showed that the lock mandrel fishing neck was partially open, suggesting that its keys were jammed in a slightly inclined position, below the lower ID of the tubing hanger profile. Based on this problem description, Welltec engineered a solution. Using the Well Tractor and Well Miller plus a custom nipple milling bit in combination with the Well Stroker the team succeeded in milling out the safety valve which fell to the bottom of the well as desired, restoring access and production. This successful milling operation enabled the operator to avoid having to pull the entire completion string and saved more than USD 2 million compared to the alternatives. The operator was very pleased to be able to regain the well in a shorter time frame and estimated that the milling solution was twice as efficient as the other options. 90% Cost Reduc tion while Restoring Injec tion on a Limited Space Platform
Jyoti Prakash Nayak Sales Director – APAC Welltec Email: jnayak@welltec.com www.oswindia.com
Offshore World | 36 | August-September 2016
Host
Host
Co-located with:
The Abu Dhabi International Co-located with: Petroleum Exhibition & Conference
7-10 2016 TheNovember Abu Dhabi
International Petroleum Exhibition & Conference 7-10 November 2016 Abu Dhabi National Exhibition Centre Abu Dhabi, UAE
ADIPEC OFFSHORE AND MARINE YOUR GATEWAY TO THE MIDDLE EAST Why exhibit at Offshore & Marine 2016? • Capitalise on US$25bn worth of offshore oil and gas investments in the region
ADIPEC 2016 OFFSHORE & MARINE IN NUMBERS
• Network with international offshore and marine companies from more than 40 countries • Showcase your products and services to 15,000+ marine and offshore industry professionals
4,500+ SQUARE METERS SPACE
• Meet new prospects and maintain relationships with existing customers
100+ EXHIBITORS
• Enjoy unrivalled networking and business opportunities with our unique matchmaking programme • Gain cutting-edge knowledge and share best practices at the Offshore and Marine Conference - website: www.adipec.com/conference
15,000+ OFFSHORE & MARINE ATTENDEES
• Enjoy exclusive discounted flights with Etihad and hotel stays with our dedicated travel partners - www.adipec.com/travel
250+ CONFERENCE DELEGATES 30+ CONFERENCE SPEAKERS
BOOK YOUR STAND TODAY adipec.sales@dmgeventsme.com +971 2 4444 909
Supported By
Official Airline
Official Travel Agent
Official Hotel
Host City
Official Media Partner
Venue
Conference Organiser
ADIPEC Organised By
Support
FEATURES
Instrumentation on Production Platform The article describes the instrumentation requirements of three critical and front end sections – Wellheads, Flowlines and Manifolds, and Separator - of a production oil & gas platform.
The hydrocarbons are believed to be formed by thermal conversion of organic matter trapped in sedimentary rocks from Jurassic era. The process is lengthy and not fully understood. The essential factors needed for oil and gas to evolve, to accumulate in a reservoir in known with a degree of uncertainty. Drilling is very expensive especially offshore and it is essential that suitable exploration surveys should be undertaken before drilling begins. One well does not make an oilfield, far more must be found before oil operator can decide whether it is profitable to exploit the strike. A number of appraisal wells are drilled and samples taken for lab analysis. If appraisal wells indicate the field is big enough to be of commercial value then drilling of development wells begin. Due to enormous cost of offshore platforms the most economical way to develop an oil field usually involves drilling a large number of wells from a single structure using a technique called deviated drilling. Depending on type of reservoir several layers of strings of tubing will be inserted in to well bore and cemented in place to provide passage for oil and gas to flow to surface. The oil and gas flow to surface needs careful regulation at surface and cluster of valves and fittings is known as Xmas tree (see Figure 1). A typical offshore production platform consists of the following sections: • Wellhead Area • Flow line & Manifold area • Separation • Metering • Gas Compression/dehydration • Gas Export • Oil Stabilisation • Produced water treatment • Fuel gas
In this article, we will restrict to the critical and front end section of the production platform up to the separator section. The Instrumentation requirements of these 3 sections will be described in this article. 1. Wellheads The term wellhead is used to describe the top section of the well located onboard the platform. Commonly referred to as the wellhead area this is where the well terminates and flow of oil or gas production can be controlled by series of valves. Whether the well is single or dual completion the valve arrangement is similar for each string. The first valve within the tubing string of a well is located at a depth of approximately 600 meters below the platform. This valve is known as the sub surface safety valve (SSSV) or downhole safety valve (DHSV) and is controlled from the surface and hence the term surface controlled subsurface safety valve. These valves play a vital part in well isolation and because of their importance are only operated when needed. Subsurface valves are actioned close at the higher end of the platform shutdown hierarchy e.g. High Gas or confirmed fire situations. When referring to a production well, topsides valves comprise the following in order of fluid flow. (a) Lower Master Gate Valve (LMGV): This valve is manually operated and as with the subsurface valve is only operated when needed. The valve will be function tested periodically but this will involve partial closure and re-opening only. Obliviously a partially open or stuck closed LMGV will have serious consequences on the production rates available. (b) Upper Master Gate Valve (UMGV): This valve is remotely operated and is used when the occasion demands such as when production from a well is required to be stopped immediately. This situation can arise when a production cutback is required by closing in selected wells or when production stop is required and all wells are closed in. All upper master valves or selected upper master valves can therefore be closed within matter of seconds.
Source: Schlumberger Oilfield Glossary
Figure 1: Well head & Xmas Tree www.oswindia.com
Downstream of UMGV the well effectively divides in to three paths or routes normally referred to as: • Production or active side is the route for reception of well fluids. • Non-active or kill side of the tree whereby wellhead pressures can be monitored and kill fluids can be injected into well in order to stem or kill the flow. • Swab connection is the connection provided at the top of Xmas tree vertically above the well stream through which access can be gained to the wellbore. Offshore World | 38 | August-September 2016
FEATURES (c) Active Side – Production or Flow Wing Valve: This valve is used to isolate the well fluids from the associated well flowline (which in turn leads to production and test manifolds).
pressure due to distance and downhole pressures and any returns are routed back to a calibrated tank on the HPU. The wellheads valves return their fluid directly to the HPU main storage tank.
(d) Non Active Valve or Kill Wing Valve: This valve provides access/isolation to the wellhead and is used when injecting kill fluid or monitoring the well.
1.5 Production Choke Purpose of Choke The production of oil or gas from a well is controlled by a variable valve referred to as choke which is either mounted directly on the upper part of the Xmas tree or in close proximity to the wellhead. The choke is located on the production flowline downstream from all other shutdown valves.
(e) Swab Valve: The swab valve allows well service operations through the well service lubricator. Xmas trees and their associated valves are designed to withstand the maximum pressures that can be met. Typically 5000 and 10000 psi rated tress and valves are installed as required. 1.1 Interface with Other Systems The wellhead valves indicated in section 1.0 are generally supplied by the drilling/ Xmas tree vendor as part of the drilling package. Engineers at APG integrate the signals from the above valves with the platform Control/Safety system or Wellhead Control Panel (WHCP) based on the control philosophy of the platform.
The purpose of the wellhead choke is to provide precise control of flow and pressure, tight shut-off and high degree of reliability Source: msp-drilex and resistance to wear and tear. Since the choke is the first stage of control over the well Figure 2: Choke Valve and Disc flow, it is essential that it is correctly sized for the required operating conditions from the outset.
1.2 Wellhead Control Control of the downhole safety valve (DHSV) is by way of hydraulic line that is run and strapped to the production string. The platform valves can be either pneumatically or hydraulically actuated valves are controlled by a wellhead control panel (WHCP) that is in turn supplied by a hydraulic power unit (HPU).
The choke is generally referred to as Multiple Orifice Valve (MOV) by virtue of its capability to interchange the trim internals to achieve a multiple range of operating conditions (see Figure 2). The means of control is by two discs each having 2 holes of the same diameter.
1.3 Hydraulic Power Unit (HPU) The HPU normally supplies hydraulic power to operate the wellheads valves through a control panel. • Surface controlled sub surface safety valves • Hydraulic upper master valves • Hydraulic wing valves
One disc referred to as back disc is kept stationary by means of locating pins and other disc referred to as front disc is rotated through 90 degrees to expose a portion of the flow area.
The HPU can also supply hydraulic pressure for subsea riser valves and remote wellheads. The HPU is a closed loop system using either mineral based hydraulic fluid for surface operations or glycol based fluid for subsea operations. The cleanliness level of the hydraulic fluid is usually high. The HPU can supply hydraulic power at several levels using air and electric driven pumps as required by the volumes pumped.
The choke is likely to encounter three types of conditions which are prevalent to all used equipment used in flow control. These are erosion, corrosion and cavitation and hence metallurgy of the valve is very important and should be taken care during section of the valve.
1.4 Wellhead Control Panel (WHCP) The WHCP receives the hydraulic power and manifolds it into various hydraulic actuated valves. The WHCP opens and closed the wellhead valves on signals from the main control room. The ESD logic is translated by a series of isolation and dump valves.
Choke valves are fitted with calibration bands in 64ths of an inch or in oilfield language ‘bean size’
2 Flowlines and Manifolds Flowlines are installed in order to transmit fluids to or from the wellheads. On the production side of the well the production flowlines is used to transmit the well fluids to the production or test manifold, the production flowline will normally include a choke for controlling the amount of fluids passing forward to the manifolds. The flowlines normally do have additional tappings in order to facilitate injection of chemicals as required. Typical examples are scale inhibitor to prevent calcium carbonate scales and methanol injection to prevent hydrate formation.
A series of hydraulic accumulators are usually fitted to provide security of supply. Also installed on the flowlines are the various instrument tapping’s that are used to communicate pressure and temperature indications of the well fluids to the control room. Further there is provision for sampling monitoring of flowline contents.
The output from WHCP is divided into 2 discrete systems. • Sub surface safety valve operating system • Wellhead operating system The differences between two systems is that SSSV is usually controlled at a higher
Individual well flowlines are routed to either a production manifold or a test manifold. See Figure 3 for a typical Wellhead Oil production Flowline
Offshore World | 39 | August-September 2016
www.oswindia.com
FEATURES 2.1 Production Manifold The production manifold is designed to accommodate the total production from all the wells and once the individual flows are combined in the manifold they pass on to main separation train. Where each flowline terminates at the manifold there will be valve isolation available plus a non-return valve in order to prevent flow reversal back along the individual flowlines. In event of problems arising within the system i.e. effective boxing in of
the manifold at both ends, then the manifold can be depressurized to the flare system through a blowdown valve and then drained for maintenance. 2.2 Test Manifold The test manifold is designed to accommodate individual wells by routing them to a test separator. This is required so those individual wells can be tested in order to ascertain their flow and what the composition of the fluids is. As with production manifold, the test manifold has facility to be depressurized and drained. See Figure 4 for production and test manifolds.
Source: msp-drilex
Figure 3: Wellhead Oil Production Flowline
Source: Percocohs Figure 4: Production and Test Manifolds www.oswindia.com
Offshore World | 40 | August-September 2016
FEATURES 3. Separator A separator is a vessel in which a mixture of fluids, which are not soluble in each other, can be segregated. On offshore installations, separators are used to segregate gas from liquids or one liquid from another such as water from oil. For separator of gas and liquid, the separator is referred to as a two phase type. For separation of gas, oil and water, the separator is referred to as three phase type.
• Low level shutdown • High level alarm • High level shutdown • High pressure shutdown • High pressure relief valves • In order to give added safety by preventing gas blow-by between separators, a shutoff valve is fitted to the pipework connecting the vessels. This valve is designed to close on a low level being detected in the upstream vessel or a high pressure being detected in the downstream vessel. Should either or both of these conditions be detected, then excessive pressure from an upstream vessel will not be communicated to a lower rated pressure vessel. Regardless of what function is being monitored the sequence for alarm and shutdown is the same. The first notice is the alarm allowing the operator to take corrective action. If no corrective action is taken or action is ineffective, further deterioration occurs and a shutdown results. All level, pressure or temperature separator shutdowns normally result in the closure of all producing wells upper master gate (surface safety valve) and flow wing valves.
Source: Oilngasprocess Figure 5: Production Separator and Instrumentation
3.1 Separator Instrumentation Within the limits of design and construction all separators have the same basic Instruments & Controls and are as follows: 1. Pressure Transmitters - Monitors the pressure in the separator with remote indication in the central control room. 2. Temperature Transmitters - Monitors the temperature in the separator with remote indication in the central control room 3. Pressure Safety valve - Relief valves are installed on each separator, one in service and other isolated. 4. Manual blowdown line - This gives the facility to manually depressurize the separator, the gas being routed to the flare system. 5. Gas outlet line - This is split into two streams- the gas to the recompression and treating section and gas to flare system. 6. Pressure Indicating Controller and PCV - These two Instruments control the separator pressure. The PIC monitors and modulates the PCV as required 7. Gas off-take flowmeter - This measures the volume of the gas flowing from the separator in both the flare or recompression mode. 8. Level Indicating Controller and LCV - The LIC monitors the level and modulates the LCV to control the level at the set point 9. Oil outlet Line - This line which has the LCV in it, leads the oil to the next link in the process train which could be a lower stage of separation, storage or transfer pumps 10. Drains - This gives the facility to manually drain down the separator through the closed drain system A typical production three phase crude oil separator together with its associated instrumentation and control system is shown in Figure 5. 3.2 Separator Controls All Separators are fitted with the following protection facilities: • Low level alarm Offshore World | 41 | August-September 2016
Santosh Shanbhag Sr Engineering Manager (Instrumentation) Aker Powergas Pvt Ltd Email: Santosh.Shanbhag@akersolutions.com www.oswindia.com
ﺗﺤﺖ رﻋﺎﻳﺔ ﻓﺨﺎﻣﺔ اﻟﺮﺋﻴﺲ ﻋﺒﺪ اﻟﻔﺘﺎح اﻟﺴﻴﺴﻲ رﺋﻴﺲ ﺟﻤﻬﻮرﻳﺔ ﻣﺼﺮ اﻟﻌﺮﺑﻴﺔ HELD UNDER THE PATRONAGE OF HIS EXCELLENCY PRESIDENT ABDEL FATTAH EL SISI PRESIDENT OF THE ARAB REPUBLIC OF EGYPT
Gateway To Egypt's New Oil & Gas Opportunities 14 - 16 February 2017, CICEC, CAIRO
EGYPS
CONFERENCE REGISTRATION NOW OPEN
EGYPT PETROLEUM SHOW
www.egyps.com/conferenceregistration
Why attend EGYPS Technical Conference? BENEFIT
LEARN
ACCESS
from 28 sessions across up, mid and downstream divided into 10 technical categories, over 3 days
about the new trends, solutions and technical innovations
key technical decision makers, contractors, suppliers and key players in the industry
What to expect at EGYPS 2017?
400+
800+
Exhibitors
Conference Delegates
10,000+
Visitors
EARLY BIRD DEADLINE: THURSDAY 27 OCTOBER 2016
SPECIAL GROUP BOOKING DISCOUNTS AVAILABLE
4
www.egyps.com/conferenceregistration
Easy ways to register
egyps.conference@dmgeventsme.com
Dubai: +971 4 445 3726 Cairo: +20 22 753 8401 Fax: +971 4 438 0361
SUPPORTED BY
Diamond Sponsor
Official Travel Agent
Platinum Sponsor
EGYPS is Co-organised By
Gold Sponsor
Official Publication
Silver Sponsor
Official Egyptian Media Partner
FEATURES
FEATURES
Configuration Study of Sour Water Stripper Units at Refinery
Refineries worldwide are increasing their capacity accordance with the increasing demand for refined oil products and to process high Sulphur crude. To facilitate this change the revamp of auxiliary process units such as Sour water Stripper (SWS) units and Amine treating Units (ATU) is a vital need for the refinery. The article discusses about various possible configurations for the design and revamp of SWS units at Refinery.
A
s the demand for the refined oil product increases, the refiners are increasing the capacity of their crude processing facility to accommodate higher throughput. In addition, considerable shift is noticed in the countries where indigenous crude production is going down necessitating the need to process imported high sulfur crude. To facilitate this change the revamp of auxiliary process units such as Sour water Stripper (SWS) units and Amine treating Units (ATU) is a vital need for the refinery. As these units are not the profit earning units in a refinery, clients do not want to spend much on these units and look for very cost effective means by carrying out revamp of these auxiliary units rather than going for a new unit. Advantage of revamping rather than constructing a new unit is less turnaround time. Space availability in existing refineries is also a big constraint in constructing a new unit. This paper discusses about various possible configurations for the design and revamp of SWS units. The objective is maximum utilisation of existing SWS units for the revised feed configuration with necessary modifications. If existing SWS units are not adequate to handle the increased capacity, a new SWS unit may be recommended. The bottom line is achieving the desired goals with minimum capital cost expenditure. Background The revamp of refineries is required due to the following reasons: 1) Increasing margins of the existing refinery unit 2) Increasing the flexibility of the existing refinery to process high sulfur crude. 3) Meet future product specification requirements. 4) Meet the fuel (energy) security of the country. Refinery revamp typically include revamp of primary processing units like Crude Distillation Unit (CDU), Vacuum Distillation Unit (VDU) and secondary processing units like hydrocracker (HCU), Fluid Catalytic Cracking (FCC), Diesel Hydrotreater (DHT), Naphtha Hydrotreater (NHT) etc. New secondary processing units may also be required to meet the gasoline and diesel product specifications. Typically feed to the SWS unit is from CDU, VDU, FCC, DHT, Kerosene Hydrotreater (KHT), Sat Gas Plant (SGP), Naphtha Hydrotreater (NHT), Selectfining unit, Sulfur recovery unit (SRU) etc. Introduction The SWS unit in a refinery consists of a sour water storage tank to collect the sour water, a sour water surge drum to separate entrained vapors from the sour water and a sour water stripper column with reboiler and overhead condenser to strip H 2S and NH3 from the sour water. Feed is pumped from feed surge drum to the column via a feed-stripper bottom exchanger to preheat feed to the column feed temperature. Sometimes two different stripper columns are used for the removal of H 2S and NH 3 separately due to the severity of feed. Another configuration is to
use packed bed column instead of trays. The column can be steam stripped or reboiled. The column has a pump around type overhead condenser which reduces plugging and corrosion problem in the column. The operating pressure in a sour water stripper is normally in the range of 0.8 kg/cm2g to 1.1 kg/cm 2g. Normally the stripper pressure is set at the minimum level required to deliver the sour gas to the disposal destination. There are several advantages of operating stripper at minimum possible pressure. As the operating pressure increases, the required area in the reboiler increases because of the higher bottom temperature and resulting in smaller temperature difference between heating medium and stripper bottoms. Higher operating pressure may also require the use of more expensive steam to provide an adequate reboiler temperature differential. NH 3 removal efficiency is also improved by operating at the lowest possible pressure. The stripper feed temperature is determined by an economic balance between the cost of feed / bottoms exchanger surface v/s the cost of heating steam required to heat the feed. A feed temperature in the range of 95ยบC to 105ยบC in the column is a good practice. If the temperature is set too high an excessive amount of water vapor would be carried over with the sour gas. This excess water can cause combustion problem in the sulfur plant or incinerators. The reflux temperature is also one of the most critical design parameter of the stripper system. If this temperature is set too low, the resulting high concentration of H2S and NH 3 will cause corrosion in the overhead system and also plugging may occur in the overhead condenser due to the deposition of solid ammonium hydro sulfide. For these reason feed temperature is set above 85ยบC. H 2S composition in the severe feed may be as high as 18000 wppm whereas NH 3 concentrations may go up to 24000 wppm. A typical product target specifications for the stripped water is 10 wppm H2S and 25 wppm ammonia. Block flow diagram of a typical SWS unit is shown in Figure 1. In case of a revamp, the revised sour water flow rates and compositions from various process units and equipment design data of existing SWS units will form the design basis for the sour water stripper revamp project. The first step is the configuration review to evaluate different options for routing the sour water streams into the existing SWS units and the second step is to check the adequacy of existing SWS unit as per the outcome of first step. These are explained below. Configuration Review The configuration review is a brainstorming process so as to assist the client to limit the project spending and meet the target specifications. A typical refinery may have a large number of sour water stripper units based on the sour water generated by the process units in the refinery. Routing of sour water streams to the existing SWS unit during refinery revamp should be done in such a way that the modifications would be cost effective yet most efficient.
Offshore World | 43 | August-September 2016
www.oswindia.com
FEATURES
Figure 1: Block Flow Diagram, typical sour water stripper unit. The review includes: • Identifying the various sour water streams from refinery process units and re-routing of existing sour water streams to different SWS units. • Check of the existing SWS units to evaluate the design margins available by analysing the operating data and discussion with the client operations engineers. • Adequacy checks of the existing equipment and identify the constraints. • Carry out the process simulations keeping the constraints of the existing unit in mind and finalise the optimum design. This will require simulation of various combinations of feed streams. New additional sour water stripper units may also be set up if required. In the first step different options for routing the sour water streams into the existing SWS units are evaluated. This can be done with the help of heat of material balance document and refinery LP model. The location of different process units with respect to the existing SWS unit in the plot plan is an important consideration that needs to be taken care during configuration study. This will be followed by adequacy check of existing SWS units for revised feed conditions and finalise the design considering the options described in the following paragraphs.
phenolic sour water is generated from process units other than FCC unit. The stripped water generated from phenolic sour water cannot be recycled back to refinery process units for re-use as wash water as it is harmful to the catalyst; however there is no such issue with non phenolic stripped water. Dedicated SWS units are designed for processing sour water from FCC process units. Sour water generated by FCC unit is phenolic in nature, in addition to H 2S and NH 3 it contains phenols, cyanides and other undesirable pollutants generated in catalytic cracking and coking operations. It is not possible to recycle this stripped water as wash water for the refinery because these pollutants cannot be removed during stripping and these are corrosive and harmful to the catalyst. Therefore stripped water is sent to effluent treatment plant. The sour water from the other refinery process units eg. HCU, DHT, KHT, SGP, CDU, VDU, Selectfining etc. contains essentially only H 2S and NH 3; hence the stripped water is recycled to process units for use as injection wash water.
Depending on the nature of sour water and concentration of contaminants like H 2S and NH 3 in the sour water feed, there are various possible configurations to design a SWS unit to facilitate refinery revamp.
In some cases, separate columns are used in series for removal of H2S and NH3 from sour water. This is due to very high concentration of NH3 and H2S in the sour water. Since H 2S is much less soluble in water than NH 3 and is therefore more readily stripped out in the H2S stripper which is the first column. The feed from the sour water feed surge drum is first heated to the H2S stripper feed temperature by exchange heat with NH3 stripper bottoms and H 2S stripper bottoms. The off-gases from the H 2S stripper are routed to SRU. Incase SRU is down, off-gases are routed to Flare. On the other hand due to the higher solubility of NH3 in water, it is the controlling design component. The H 2S stripper bottom is sent to the NH 3 stripper column for removal of NH 3 from sour water. The acid gases from the NH 3 stripper are routed to incinerator. Use of a single column in such case may also lead to larger column diameter thereby causing operational problem. Refer Figure 3 for SWS unit with separate columns in series for stripping H2S and NH3.
The nature of the sour water in the refinery is either phenolic or non phenolic. The phenolic sour water is generated mostly from the FCC unit whereas the non
Packed columns are used in sour water strippers where high turn down is required that may not be possible to meet by using trayed columns. A trayed column can-
Typical configuration of a sour water stripper unit is given in the below schematic (Figure 2) as an example. In this example, sour water streams from CDU, VDU, DHT, KHT and RCD are routed to this existing SWS unit whereas sour water from Sat Gas Concentration, Selectfining, NHT and LPG are routed from this existing SWS unit to different SWS units in the refinery as an outcome of configuration review.
www.oswindia.com
Offshore World | 44 | August-September 2016
FEATURES
Figure 2: Schematic of configuration review of a sour water stripper unit. not be used when the flow rate is very less due to its size limitation and turndown issue at lower flowrates. A packed column does not have such problems at lower flow rates and there is no issue with a packed column when high turn down is desired. A typical packed column sour water stripper is depicted in Figure 4. Another configuration of sour water stripper design is pump around column or non pump around column with no reflux. In a pump around stripper column, most of the steam at the top section of the column is condensed and returned back to the stripper. This pump around material is rich in H2S and NH3 and therefore, increases the load on the stripper. Hence more stripping and heating steam is required and a larger diameter of stripper is necessary. There is some corrosion issue in the pump
around section of the stripper column and can be taken care by selecting proper metallurgy. However the overhead gas contains less water compared to a non pump around stripper column. In case of a non pump around stripper column the overhead material contains larger amount of water compared to the pump around stripper. Removal of this water vapor is essential before sending overhead material to Sulfur Recovery Unit (SRU). Refer Figure 1 for a pump around type SWS unit. The main advantage of using the pump around stripper column is that the overhead acid gas contains minimum amount of water which is required for the downstream SRU unit. The stripping medium may be steam or reboiled. Regardless of the medium used, if NH3 removal is desired, a temperature of 110ยบC or more is required (near at-
Figure 3: SWS unit with separate column in series for H 2S and NH 3 Stripping. Offshore World | 45 | August-September 2016
www.oswindia.com
FEATURES
Figure 4: Steam stripped SWS with Packed Column. mospheric pressure) to have reasonable stripping. Generally, a reboiler may be more economical than direct steam injection considering the value of recovered condensate. On the other hand the amount of stripped water will increase by use of direct steam. This will increase the initial investment cost of downstream waste water plant. The disadvantages of a reboiler are the increased capital cost and increased maintenance due to corrosion, fouling and sludge build up. For steam stripped columns the overhead vapor contains considerable amount of water to send it as a feed to the sulfur plant. The entrained water need to be removed before sending overhead vapor to Sulfur plant (SRU). Refer Figure 4 for a steam stripped SWS unit. Caustic is added in sour water to remove ammonia. Sour water contains not only H2S and NH 3 but also various acid forming compounds such as carbon dioxide (CO 2) and cyanides (CN). These compounds fix the NH 3 in solution which hinders the formation of free NH 3 by hydrolysis. When the situation exists, there is always a residual NH 3 concentration in the tower bottoms even with the high stripping steam rates or a large number of stages. To remove the residual NH 3 a strong base such as NaOH is added to the sour water. The sodium Ion replaces the NH4+ ion resulting in the formation of ammonium hydroxide (NH 4OH) which makes NH 3 strippable. However the disadvantage of adding caustic is that the NaOH will react with H2S to form excessive amount of Na2S in the stripper bottoms. To prevent this, the caustic solution is added at an intermediate point in the stripper, where due to its low solubility, most of the H 2S has already been removed.
For sour water from non FCC units, the H2S and NH3 free stripped water is recycle back to process units like CDU, VDU, DHT, NHT, RCD, SRU etc. as per requirement of process units. • Provision of a blower/ compressor for sending off gases to SRU/ incinerator. • The stripping medium may be steam, fuel gas or fuel oil. The use of fuel gas introduces CO2 in the system and fuel gas becomes contaminated with H2S and water. Because of the economic considerations and strictly environmental standards, steam is recommended as a stripping medium. • Mineral acids such as H 2SO4 or HCL can be added to the sour water prior to stripping to facilitate the removal of H 2S. These acids fix the NH3 in solution as ammonium sulphate or ammonium chloride. A disadvantage of this process is that stripped water is contaminated with ammonium salts. Conclusion As there are various combinations possible in the refinery to process sour water generated from different refinery units, a configuration review in consultation with client is essential where sour water streams from different process units are re-routed to the existing SWS units in such a way that the modifications are cost effective. The configuration review will also envisage the design of new units, if required. Based on the selected configuration, modification of existing SWS units and / design of new SWS units are carried out considering various possible options, as discussed above to achieve an efficient yet cost effective design.
Other Design Considerations • Sour gases from the SWS column overhead should be routed to sulfur recovery unit (SRU). In case SRU is down sour gas can be routed to Flare. • Column overhead pressure should be set in such a way that sufficient pressure gradient is available for the sour gas to send it to SRU. Hence, review the location of SRU in plot plan and set column overhead pressure accordingly. • Separate storage tanks are designed for sour water from FCC units and sour water from other refinery units due to the presence of phenolic components in FCC sour water, which cannot be routed to process units after stripping. • Stripped water from the FCC unit is routed to effluent treatment instead of recycling back to process units due to the presence of phenolic components. www.oswindia.com
Offshore World | 46 | August-September 2016
Subrata Das Process Specialist Fluor Daniel India Pvt Ltd Email: subrata.das1@fluor.com Naresh Kumar Singh Sr. Process Specialist Fluor Daniel India Pvt Ltd Email: naresh.k.singh@fluor.com
FEATURES
Features Steel up! to meet India’s Oil Consumption Needs The article discusses the benefits of hyper-duplex stainless steel to bolster India’s oil exploration and production efforts.
J
ust earlier this year, India surpassed Japan to become the world’s third largest oil consumer in the world, behind the United States and China. However, India’s oil and gas sector is heavily reliant on imported energy as production is not on par with surging domestic demand. According to BP’s Statistical Review of World Energy 2015, Indian oil production has remained at around 900 thousand barrels per day since 2011, but local oil consumption has risen to nearly 4 million barrels per day over the past decade 1 . In an effort to enhance domestic gas production, the Government of India has recently introduced initiatives such as the Hydrocarbon Exploration Licensing Policy (HELP) aimed at mordernising India’s existing oil and gas exploration policies, stimulating new exploration activities and reducing import dependence 2 . For example, the government plans to encourage the exploration of deep water and high pressure-high temperature areas, by implementing a concessional royalty regime for finds in such areas. The Importance of Choosing the Right Materials This presents an opportunity for oil explorers to penetrate into the country’s oil and gas scene by conducting wider and more extensive exploration efforts for new oil well finds, as well as investing in more efficient and effective recovery efforts. Furthermore, oil refiners can capitalise on these activities by optimising refinery output. However, as exploration efforts delve into deeper waters, explorers will have to contend with issues such as the increasing corrosive conditions. Similarly, in regards to downstream operations, oil refineries have to contend with an ongoing decline in crude oil quality and intensifying production demands which would also lead to highly corrosive environments within refinery operations, particularly in heat exchangers. Corrosion is the deterioration of a metal or its properties, which can cause equipment breakdowns, hence, incurring additional costs, loss in revenue as well as production downtime for the business. In order to remain competitive, companies must be able to address these issues with the most ideal solutions for them, such as selecting and investing in the most suitable equipment for their various operating needs. Should the equipment fail to perform reliably, the cost incurred for maintenance or even replacement could be significant.
At the end of the day, reliability is the key for players in the oil and gas industry. Choosing the right materials is essential in order to ensure smooth operations with little to no hiccups, increased productivity levels in order to get the best return of investments in the long run. Super-duplex Stainless Steels – A Reliable Workhorse Super-duplex stainless steels have been used for industry purposes for many years. Since their introduction by Sandvik 15 years ago, they have found widespread use in the oil and gas and related industries. Their popularity is attributed to an attractive combination of high corrosion resistance, excellent mechanical properties as well as a relatively low cost compared to other higher performance materials, such as super austenitic stainless steels and Ni-based alloys. Super-duplex stainless steel materials have replaced traditional carbon and austenitic stainless steels as they exhibit high yield strength properties. With greater corrosion resistance, high welding strength and lower costs through easier welding and fabrication, they are well suited for replacing tubes made of carbon and austenitic stainless steel. The use of duplex stainless steels has also been shown to distinctly reduce types of equipment failures caused by corrosion, which are otherwise evident when conventional materials, such as copper-based alloys and different types of austenitic stainless steel, are applied. However, despite the very broad range of applications for super-duplex stainless steels, there are areas where the corrosion resistance of these grades proved to be insufficient for long service, especially so in aggressive chloride environments. With the high costs often associated with maintenance, and the desire to prolong the periods between planned inspections, there was a clear need among industry players for new grades of steel with higher corrosion resistance than the existing super-duplex stainless steels. Hyper-duplex Stainless Steel – High Chloride Corrosion Resistant Combined with High Mechanical Strength To that end, an improved grade of steel called the hyper-duplex stainless steel, was developed. Compared to super-duplex stainless steel, this hyperduplex grade is high chloride corrosion resistant, making it suitable for use in aggressive chloride environments, such as in hot tropical seawater like the
Choosing the right materials is essential in order to ensure smooth operations with little to no hiccups, increased productivity levels in order to get the best return of investments in the long run. Offshore World | 47 | August-September 2016
www.oswindia.com
FEATURES Indian Ocean. It also allows for extended safe operating conditions in a number of other situations, such as critical heat exchangers in oil refineries as well as severe corrosive environments in chemical and petrochemical processing. Hyper-duplex stainless steel also offers increased mechanical properties, which in many cases will allow substantial reductions in material thickness, lowering the weight and total cost of the installation. Furthermore, despite its high strength, ductility remains at a high level and fabrication procedures, such as bending and expansion, can be performed in the same way as for austenitic steels. Through our conversations with various industry players, they have started to notice the benefits of hyper-duplex stainless steel, identified as a competitive alternative to expensive nickel alloys and high-alloy austenitic stainless steels. This is especially so when it also helps to increase service life and reduce unplanned shutdowns, ultimately decrease safety risks and maintenance costs, which are very important factors in today’s oil and gas industry. Meeting India’s Oil Consumption Needs As India continues to open up and push for the exploration of oil in deeper waters and the augmentation of refineries to bolster domestic demand,
organisations that wish to capitalise on these new opportunities must first ensure they have the required equipment to do so. Possibilities that come with hyper-duplex stainless steels are still being explored and we are excited to be at the forefront of this technology. Ultimately, the myriad of advantages can give companies the competitive edge they need to be key players in India’s booming oil and gas industry.
References: 1. https://w w w.bp.com/content/dam/bp/pdf/energy- economics/statisticalreview-2015/bp-statistical-review-of-world-energy-2015-full-report.pdf 2. http://pib.nic.in/newsite/printrelease.aspx?relid=137661
Mohan Gawande General Manager – Tube Core and Standard Sandvik Material Technology Email: mohan.gawande@sandvik.com
ADVERTISE TO EXPAND
your reach through
INSIGHT INTO THE PHARMACEUTICAL AND BIOTECH INDUSTRIES
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 | 48 | August-September 2016
FEATURES
FEATURES
Most Energy Commodity Prices Moves down in Varied Proportion Energy Column (Price Review): July - August 2016
Most energy commodities barring coal witnessed price fall in the two-month period of July and August 2016, albeit in varied proportion. Of energy commodities under review, NYMEX crude oil futures prices dipped the most by about 7.5 per cent. On the other hand, ICE Rotterdam monthly coal futures prices rose by about 11.5 per cent.
R
eleases of a few upbeat US economic data at month-start helped NYMEX (CME) crude oil (light sweet) futures to start the month of July at USD 48.99 per barrel, up by 1.37 per cent from previous month’s close. The Institute for Supply Management report showed its US manufacturing index jumped in June to its highest level since 2015. Later, oil prices got some support as Saudi Arabia’s energy minister stated that the global oil market is heading toward balance as well as with attacks in Nigeria seen as curbing the country’s oil production. With oil prices then treading down almost NYMEX (CME) crude oil futures registered its eventual two-month high of USD 49.35 per barrel on July 5. Thereafter, concerns over a slowdown in US production declines as well as on over global economy feeding concerns about energy demand pushed oil prices down. Price decline was also helped on downbeat US economic data, with factory orders dropping a per cent in May. Barring brief trading session, crude oil prices continued to move down. US government data showing a smaller-than-expected weekly decline in crude-oil inventories and a survey revealing that crude production from members of the Organization of the Petroleum Exporting Countries (OPEC) climbed to a nearly eight-year high kept downward pressure on oil prices. Nevertheless, intermittently oil prices were offered respite by factors such as release of upbeat US jobs report, OPEC report forecasting for higher oil demand and lower production next year etc. Further in the month of July, weekly data showing rise in US oil output
along with increase in supplies of gasoline and distillates and prospects for Libyan crude supplies adding to oil glut kept crude oil prices on downtrend. Despite a few upbeat data releases from China and the US, consistent rise in the number of active US oil rigs and an expected slowdown in US refining activities kept pressure on oil prices almost through July. Further, continuing on past month’s momentum, worries over a global glut of crude oil as well as uncertainty on near-term outlook for global oil demand, pushed NYMEX (CME) crude oil futures to two-month (July-August) low of USD 39.19 per barrel on August 3. Thereafter weekly data release showing an unexpected large drop (3.3 million barrels) in US gasoline inventory levels lead to the recovery in crude oil prices. Later oil prices was also supported by data release that showed the US economy created 255,000 new jobs in July, topping forecasts for a rise of 185,000 – a sign of strengthening economy. Oil prices then got boost as the Organization of the Petroleum Exporting Countries (OPEC) announced that it will hold an ‘informal’ meeting in Algeria on September 26-28 on the side-lines of the 15th International Energy Forum to discuss ways to restore stability and order to the crude market. Further in the month, comments from Saudi Arabia’s energy minister the Saudis could discuss possible action to stabilize the market with members of the OPEC and other producers at a meeting next month kept oil price
Offshore World | 49 | August-September 2016
www.oswindia.com
FEATURES
on uptrend. The comments also helped in offsetting pressure from an International Energy Agency report that revealed a weaker forecast for global oil demand growth next year. Weakness in US dollar as US data showed inflation was flat in July, underscoring the Fed’s case for leaving interest rates on hold and rising expectations that the prolonged price rout may drive major producers to reconsider a collective production cap continued to help the rally in oil prices. Later, a larger-than-expected weekly decline in US crude stockpiles and a weaker dollar (as July Fed meeting minutes showed split amongst central bank officials on need for an interest rate hike - dampening expectations of a hike) kept supporting oil prices. By last decile of August, expectations of higher global crude production especially from Iraq and Nigeria and possibilities no agreement amongst major oil producers, on measures to stabilize oil output, pulled oil prices down. However, a major fall in oil prices was averted as a report indicated that Iran has shown willingness to work with other major crude producers to support the market. Still a release of larger-than-expected weekly rise in US crude oil inventories ensured that oil prices remained on mild slide through the end of the month. Finally, NYMEX crude oil futures closed the month of August at USD 44.70, registering a fall of 7.51 per cent in the two-month period.
rise in US gas stock levels. Further, again in early August, concerns that gas consumption in the US is set to decline with impending end of the summer and expectations that gas surplus in the US is set to persist, pulled natural gas prices down. But in later half of August, smaller-than-expected weekly climb in US gas supplies, warmer weather in US lifting air-conditioning demand prospects for the fuel led the recovery in gas prices. In the emission segment, EUA futures too threaded relatively range bound price movement in the two-month period. EUA futures closed the month of August at EUR 4.46 per tonne, registering a marginal fall of 0.22 per cent over two-month period. Unlike other energy commodities, ICE Rotterdam monthly coal futures prices moved up by 11.45 per cent in the two months of July-August, closing the period at USD 61.3 per MT. Slowing supply growth from China helped in part by Beijing’s decision to limit coal mines operating days to 276 or fewer a year, bad weather and operating issues keeping supply subdued from Australia along with increased demand from China and India helped the rise in coal prices. (Authors are Managers with Multi Commodity Exchange of India Ltd., Mumbai. Views expressed here are personal.)
The fall in crude oil prices was also reflected in fall in prices of its derivates i.e. heating oil and gasoline. In the two-month period of July-August, NYMEX heating oil futures prices moved down by 5.02 per cent closing at USD 141.02 per gallon; NYMEX gasoline futures prices declined by 5.94 per cent, closing at USD 141.22 per gallon. The other major energy commodity, NYMEX natural gas futures prices threaded relatively range-bound movement in July-August with a close at USD 2.887 per mmBtu. Overall, natural gas futures slipped by 1.27 per cent in the twomonth period. Early in the month of July, reports of growing gas production in U.S. and weather forecasts calling for lesser indoor-cooling demand for gas than previously expected in the US pulled gas prices down. Later at fag-end of July, gas prices staged some recovery as weekly data showed a smaller than expected www.oswindia.com
Offshore World | 50 | August-September 2016
Niteen M Jain Manager, Department of Research & Strategy Multi Commodity Exchange of India Ltd E-mail: niteen.jain@mcxindia.com Nazir Ahmed Moulvi Manager, Department of Research & Strategy Multi Commodity Exchange of India Ltd E-mail: nazir.moulvi@mcxindia.com
29 Nov – 2 Dec 2016
Marina Bay Sands, Singapore www.osea-asia.com
Future-Ready Your Business Now Are you preparing to make the next spurt when the industry swings back in energy? Be inspired at OSEA2016 – the trusted platform by trade professionals for its relevance to the oil & gas industry for over 40 years.
SEIZE THESE OPPORTUNITIES • Explore collaborations with over 1,300 exhibitors from 49 countries / regions. • Level up business capabilities with innovations showcased by the strongest-ever line-up of 22 group pavilions. • Check out advanced manufacturing technologies at OGmTech 2016 for solutions to complex parts manufacturing specifically for the oil and gas industry.
• Network and exchange first-hand industry developments with over 13,000 trade visitors from 60 countries / regions. • Learn from the best in the industry and formulate your next winning strategy at the OSEA International Conference which will encompass 18 interactive masterclasses. Also, hear from top experts at the newly launched LNG EquipTech Asia.
• Keep updated on trends related to subsea equipment and services at SUBSEA Asia 2016 (first time at OSEA).
Visitors from Asia who stay for a minimum of 2 nights can get up to SGD 100 to offset their spending in Singapore. Find out more about the Meet in Singapore programme at www.osea-asia.com.
Pre-register your visit before 17 Nov 2016 at www.osea-asia.com
Held alongside:
OSEA16Ad-W210xH270OW-1.indd 1
Organiser:
Worldwide Associate:
Endorsed:
Supported by:
Held in:
2/9/16 5:59 PM
MARKETING INITIATIVE
Optical Gas Imaging for the Chemical Industry Optical gas imaging cameras are a proven method to detect dangerous and costly gas leaks in time. Optical gas imaging technology has been successfully applied in the oil refining, chemical, petrochemical and many other industries to help improve worker safety and prevent costly production shutdowns.
C
hemical compounds and gases are invisible to the naked eye. Yet many companies work intensively with these substances before, during and after their production processes. The FLIR Gas Detection cameras are infrared cameras which are able to visualize gas by utilizing the physics of fugitive gas leaks. The camera produces a full picture of the scanned area and leaks appear as smoke on the camera’s viewfinder or LCD, allowing the user to see fugitive gas emissions. The petrochemical industry produces hydrocarbon and other substances using base feed stocks from the oil refining companies either by conversion processes or further separation that is not normally carried out at an oil refinery. Most of the chemicals used or made in these industries have good visibility using the mid wave gas detection camera. The chemical industry produces nonhydrocarbon or inorganic chemicals from base feed stocks. These are often a mixture of batch and continuous processes that yield very high purity products. The mid wave gas detection camera has a good response to a lot of chemicals found in this sector. Safety The key success factors of optical gas imaging cameras for businesses are safety, efficiency and profitability. A gas detection camera is a quick, non-contact measuring instrument that can be used in hard-to-access locations. It can detect small leaks from several meters away and big leaks from hundreds of meters away. This way, operators do not need to approach the leak from close by, which improves the safety significantly. Efficiency Working with sniffers or probes can be very time-consuming and a lot
of the time spent inspecting installations that are safe and leak-free is wasted. Using a Gas Detection camera you get a complete picture and can immediately exclude areas that do not need any action. This saves a lot of time and personnel. With a gas detection camera, measurements can be carried out remotely and rapidly and – most important of all – problems can be identified at an early stage. Environmental Regulations Optical gas imaging allows the industry to comply with new industrial emissions regulations & procedures as set by the new IED (Industrial Emissions Directive) within the EU as part of the BREF (Best Available Technique Reference) for Refining or Mineral Oil & Gas. Chapter 5.1.4 is the draft BREF conclusion, for the Refining or Mineral Oil and Gas industry sector, stating optical gas imaging is one of three BAT (Best Available Techniques) which must be used for monitoring diffuse VOC emissions. Optical Gas Imaging Cameras: Buy or Loan? Although the cost of optical gas imaging cameras has decreased in recent years, purchasing a gas detection camera is still a significant investment for a lot of companies. According to Frank Zahorszki, CEO of Itema GmbH, a German service company specialized in thermographic inspections, the purchase price of an optical gas imaging camera should not deter smaller chemical companies from making use of this technology. “Today, more and more companies are contracting outside service providers for leak detection and repair to specialized service companies”, says Zahorszki. “This begs the question whether your company should buy or loan an optical gas imaging camera.”
HSM is in part an image subtraction video processing technique that effectively enhances the thermal sensitivity of the camera. www.oswindia.com
The two main reasons for a plant buying an OGI camera are the amount of targets to inspect and the just-in-time availability of the camera in case of a leak. Companies that only require one to five inspection days per year, or
Offshore World | 52 | August-September 2016
MARKETING INITIATIVE
Captured gas leak from production site.
Gas leak is clearly visible on the thermal image.
companies that have the convenience to wait for a service company to come over, will opt for an external contractor. Very often, companies need to monitor different types of gases with different types of cameras, which justifies an external service provider even more.
GF306: Crackers, Ammonia, SF 6 Cracking is a conversion process used in petroleum refineries which converts the high-boiling, high-molecular weight hydrocarbon fractions of petroleum crude oils to more valuable gasoline olefinic gases and other products. Gases escaping from the cracking process can be highly flammable and dangerous. Being a non-contact measurement device, OGI cameras like the FLIR GF306 are ideal for monitoring chemical plant process areas/operations, such as steam crackers and reformers, especially for components that are difficult to reach with contact measurement tools.
The gas detection camera technique has a wide range of potential uses in the chemical and petro-chemical industries. GF320: Hydrocarbons Optical gas imaging cameras like the FLIR GF320 help to spot leaks in piping, flanges and connections in petrochemical operations. The GF320 can rapidly scan large areas and pinpoint leaks and is ideal for monitoring plants that are difficult to reach with contact measurement tools. Literally thousands of components can be scanned per shift without the need to interrupt the process. It reduces repair downtime and provides verification of the process. Above all it is exceptionally safe, allowing potentially dangerous leaks (e.g. methane) to be monitored from several meters away. GF346: Improving Workplace Safety Optical gas imaging cameras are an efficient way to inspect the workplace for dangerous gas leaks. This can especially be useful in foundries or in other processes where significant amounts of carbon monoxide (CO) are generated. CO is a colorless, odorless gas usually formed during the combustion process. Anywhere there is a heated process leading to the formation of smoke such as moulds and cupola furnaces CO will be present. Workers on charging platforms or catwalks can unknowingly breathe high concentrations of this gas. This can block oxygen being transported, from the lungs, causing the worker to suddenly lose consciousness. High concentrations may prove rapidly fatal without any warning symptoms. GF343: Leak Tightness Testing Carbon dioxide (CO 2) is considered to be a relatively inexpensive tracer gas for tightness testing. The method is also reliable, can be used to test complex equipment, and CO2 is easy to obtain. With optical gas imaging cameras, like the FLIR GF343, you can see CO2 leaks quickly, easily, and from a safe distance. This is very helpful at turnarounds and shut-downs to test the inertization and filling of the equipment.
High Sensitivity Mode FLIR gas imaging cameras are surprisingly sensitive, so they can be used to detect even smaller gas leaks from about several meters away. This is especially the case when operation in the High Sensitivity Mode (HSM). This is a special feature included in all GF-Series optical gas imaging cameras. It is an image subtraction video processing technique that effectively enhances the thermal sensitivity of the camera. The HSM feature subtracts a percentage of individual pixel signals from frames in the video stream from the subsequent frames, thus enhancing the differences between frames, which make leaks stand out more clearly in the resulting images.
For more information about thermal imaging cameras or about this application, please visit: www.flir.com/ogi The images displayed may not be representative of the actual resolution of the camera shown. Images for illustrative purposes only. Š2015 – FLIR Systems Inc., All rights reserved (created 11/15
Offshore World | 53 | August-September 2016
www.oswindia.com
NEWS
STAHL India Appoints ‘SPARE PARTS DISTRIBUTOR & STOCKIST’ in Chennai Chennai: STAHL Crane systems India Private Ltd, subsidiary of STAHL Crane Systems GmbH, has appointed M/s Indstahl Spare Parts and Distribution Company, the independent distributor cum stockist for genuine spare parts, of Chennai. The distributor stocks all the necessary parts in Chennai and the end users can order the spares locally through the Sales Partners who have supplied the original equipment. Thomas Kraus, Director, STAHL Cranes Systems GmbH is inaugurating the facility in Chennai on 16th September 2016 which is followed by a Customer Meeting Ceremony in famous hotel in Chennai. Thomas Kraus believes that this is a major step in making the spares available in India and thus reducing the supply time for our Indian customers. Anand Dayanidhi, Country Head of STAHL Crane Systems India Private Ltd is extremely happy to dedicate this facility in India which will go a long way in boosting the brand value that STAHL Cranes is enjoying for many years in this subcontinent.
Germany ’s Heraeus Udaipur, Rajasthan
Opens
Facility
in
Udaipur: Heraeus, one of the world’s largest recyclers of reforming catalyst, has opened a new facility in India to recover precious metals from spent petroleum catalysts. The new site in Udaipur/Rajasthan will be operated by the German-Indian joint venture ‘Ravindra Heraeus’ and will offer India’s petrochemical industry more capacity and state-of-the-art technology to recycle Platinum and Palladium in the country. Indian companies will therefore benefit from larger national recycling facilities, which will provide less transpor t costs and easier file processing, faster recycling times and better transparency in the market and overall improved costing for catalyst recycling. The new technology will fur thermore offer latest environmental and social standards. After the recycling process, ‘Ravindra Heraeus’ offers its customers to either receive new precious metals products, precursors or the pure recycled precious metals. “The new recycling facility of Ravindra Heraeus in India will allow our customers from the petrochemical sector to receive outstanding catalyst recycling standards in India. We will be the only globally active precious metal company with local recycling capabilities in this very important sector. Together with our trusted and long-term partner Ravindra we will be able to offer fast, local and first class recycling services to our customers.” said André Christl, President of Heraeus Metal Management, the companies precious metal recycling and trading unit. www.oswindia.com
Gas Deal with Qatar will Save Import Bill: PM New Delhi: The renegotiation of a long-tern gas import deal with Qatar will let India save up to Rs 200 billion, says Honourable Prime Minister Narendra Modi. India buys 7.5 million tons of LNG (Liquid Natural Gas) from Qatar every year and the price formula was fixed since 13 years irrespective of slump in global energy prices last year. Narendra Modi Honourable Prime Minister
Qatar’s RasGas supplies LNG to India under a 25 year long contract since 2004. PM Modi said, the world economy has changed and Qatar’s LNG price posed a huge burden on Indian economy. The renegotiation of terms was reopened using India’s foreign policy.
IOCL to Set up LPG Terminal Plant in Bangladesh New Delhi: Bangladesh Petroleum Corporation (BPC) and Indian Oil Corporation (IOC) signed an agreement this year to jointly set up a LPG (Liquefied Petroleum Gas) terminal plant in Chittagong, (Bangladesh) port city to help pipe gas to the north-eastern states. Numaligarh Refinery Ltd (NRL) in Assam and BPC signed a sale-purchase agreement for construction of a pipeline from Siliguri (West Bengal) to Parbatipur (Bangladesh) for supply of High Speed Diesel (HSD). This project is a part of Hydrocarbon vision 2030, said IOC Executive Director S C Soni. The agreement took shape in the meeting between PM Narendra Modi and Bangladesh Prime Minister Sheikh Hasina in June last year.
LTHE Aims Bagging Major Contracts in Offshore Business Mumbai: L&T Hydrocarbon Engineering (LTHE) is seeking to win at least USD 1 billion worth project contracts in the upcoming years. “Hydrocarbon industry is currently going through a difficult period. At USD 40-50 a barrel, capital expenditure has reduced across the globe though there is lesser impact on gas development,” LTHE CEO and Managing Director Subramanian Sarma said. However, India being the second largest oil consumer after China with daily oil demand expanding 8.1 per cent per year, and with the Make-In-India initiative, the domestic market is poised to improve and the sector is expected to attract nearly USD 5 billion in the next 4-5 years.
Ratnagiri Gas and Power Pvt Ltd to Demerge Mumbai: Maharashtra Government has decided to demerge Ratnagiri Gas and Power Pvt Ltd (RGPPL) into two independent companies - Electricity Generation Centre and Regassified Liquefied Natural Gas (RLNG) terminal. The decision was taken at a Cabinet meeting chaired by Chief Minister Devendra Fadnavis, an official said. The Cabinet also approved the Court Infrastructure Policy. The policy will be helpful for construction of court buildings and residential quarters for judges as well as expansion and repairs of existing infrastructure, he added.
Offshore World | 54 | August-September 2016
ONGC and IOC to Invest in Bokaro Block
PESB Selects Sanjiv Singh to Head IOCL
BMumbai: ONGC (Oil and Natural Gas Corporation) and IOC (Indian Oil Corporation) are the stakeholders of the Bokaro coal-bed methane (CBM) Block BK-CBM-2001/1 with 80 and 20 percent of shares respectively.
Mumbai: The Public Enterprise Selection Board (PESB) has selected Sanjiv Singh, Director – Refineries, IOCL to be the new Chairman of the public-sector Corporation. Besides Singh, the government headhunters inter viewed eight candidates. Singh, who has been Director of Refineries at IOC since 2014, will replace B Ashok Sanjiv Singh Director on his superannuation at end of May 2017. He Refineries, IOCL will have three -year tenure at the helms of India’s largest oil refining and marketing company. IOC is also the nation’s biggest company by revenue.
According to firm’s Chairman Dinesh K Sarraf, ONGC and IOC are investing ` 823 crores to produce natural gas from coal seams of Bokaro block. It includes drilling 141 wells with multilayer hydro- fracturing system and installation of three production facilities.
India Tries to Take Advantage of LNG Excess New Delhi: India’s Fair Trade Commission is renegotiating deals worth more than USD 600 billion in contracts and encouraging the number of shorter term agreements. India’s market for LNG (Liquefied Natural Gas) is on glut as there are new suppliers from Australia and US. “There will be 40 million to 50 million tons of homeless LNG by 2020, which can go anywhere or doesn’t have any fixed customers,” said Hiroki Sato, Senior Executive Vice President, Jera Co, a fuel buyer that plans to increase spot and short-term LNG deals. This natural gas glut is causing countries like India that import LNG to support renegotiating existing deals that can run 20 years or more as reduce the prices so as to shrink stockpiles.
Cairn to Invest in Exploratory Wells in AP Hyderabad: Cairn India is planning to invest around USD 150 million in taking up exploratory and appraisal drilling of ten wells in Palar block at the coast in Nellore district Andhra Pradesh. An Expert Appraisal Committee (EAC) under the Ministry of Environment, Forests and Climate Change examined and gave its nod to the proposal under Coastal Regulatory Zone (CRZ) perspective for drilling to Cairn India. The project was granted environmental clearance in 2011. The PR-OSN-2004/1 block has been awarded by the government during NELP-VI licensing round in 2007 for hydrocarbon exploration. Exploration activities will be carried out as per the Production Sharing Contract (PSC) signed between CIL and the Centre, the minutes of the meeting of EAC held last month said.
ONGC to take Stake in GSPC Gas Block Ahmadabad: The Board of state-owned ONGC has approved to sign an MoU for taking a stake in Gujarat Petroleum Corp Ltd’s (GSPC) KG basin gas block. The MoU approved strangely also incorporates a dispute resolution wherein any differences over issues like valuation or natural gas reserves would be referred to a three-member committee of outside experts. Sources said this is perhaps for the first time that a memorandum of understanding (MoU) sets out a dispute resolution committee and it perhaps is indication of the pitfalls that ONGC anticipates in buying a stake in the block.
Belorusneft to Provide Engineering and Consulting Services to Oil India Guwahati: Belorusneft has signed a contract for engineering and consulting ser vices with Oil India Limited. Those are comprehensive high-tech ser vices for the rehabilitation of Digboi oilfield. The Par ties discussed the project during the visit of the top managers of the Indian company to Belarus. Digboi oilfield is the oldest Indian oil asset; commercial oil was discovered here in 1889. Today, however, the field is not producing. Belarusian specialists have never worked rehabilitation of such a mature oil deposit. This project is real challenge for them. Digboi Integrated Rehabilitation Project will be implemented in several stages. The oilfield database with production data the history development has already been created to analyze its current state and prospects. The next step is to create geological and hydrodynamic models, make recommendations and prepare work program for production stimulation. This pilot project will be the basis for developing bilateral cooperation.
ONGC to Buy Extra Stake in Russian Vankor Fields New Delhi: Oil and Natural Gas Corporation (ONGC) has signed an agreement with Russian oil major, Rosneft OAO to purchase additional 11 per cent stake in JSC Vankorneft. OVL will have 26 per cent stake in JSC Vankorneft, along with the 15 per cent acquired in May 2016. The definitive agreement was signed in Moscow on September 14 by ONGC’s overseas arm ONGC Videsh Ltd’s (OVL) Chief Executive Officer Narendra K. Verma and Rosneft Chairman, Igor Sechin. “The daily production from the field is around 421,000 barrels per day of crude oil on an average and together with the earlier acquisition of 15 per cent, ONGC Videsh’s share of daily oil production from Vankor will be about 110,000 bpd,” said ONGC. The acquisition of this extra 11 per cent would add about 30 per cent to OVL’s existing production, and about 2.2 million tons of oil and 1 billion cubic meters of gas annually.
Offshore World | 55 | August-September 2016
www.oswindia.com
NEWS
NEWS
NEWS BPCL Kochi Refinery Set to become World-class: OilMin Kochi: BPCL Kochi Refinery is all set to become a world-class refiner with crude oil processing capacity of 15.5 MMTPA which had embarked the journey by processing 2.5 Million Metric Tonnes Per Annum (MMTPA), said Dharmendra Pradhan, Union Oil Minister, in the sideline of a function to commemorate BPCL Kochi Refinery’s Golden Jubilee. Dharmendra Pradhan Union Oil Minister
The refinery is also setting up a petrochemical complex which would enhance the value chain, generate employment opportunities and increase economic activity in Kerala, he said. BPCL will set up a green bio-fuel refinery to produce ethanol at Kochi by converting agricultural and municipal waste, he added. The minister said about Rs 30,000 crore worth of investment is being implemented in Kerala including that of enhancing crude refining capacity of Kochi Refinery and the petrochemical complex.
OVL to Acquire Stakes UAE’s Onshore Hydrocarbon Blocks New Delhi: In an attempt to leverage the strategic relationship between India and the United Arab Emirates (UAE), state-run ONGC Videsh Ltd (OVL) is working as part of an Indian consortium to acquire stakes in Persian Gulf nation’s onshore energy acreages. This comes in the backdrop of India’s Prime Minister Narendra Modi’s visit to the UAE in August last year—the first for an Indian premier after 34 years. “There is an Indian consortium which is currently exploring the possibility of partnership for onshore fields in the UAE. OVL is part of it,” said a person close to the development requesting anonymity.
HPCL to Start Global Oil Trading Desk Mumbai: Hindustan Petroleum Corp. Ltd (HPCL) is planning to set up an international oil trading desk, two company officials aware of the matter said. The desk would either be set up in Singapore or London. “We are thinking of setting up an oil trading desk. We are working on the details which will be finalised in the next six-12 months. Given Singapore is the trading hub, we are more inclined to it,” said one of the two officials cited above, on condition of anonymity. “A trading desk gives us the flexibility to enter and exit markets as and when required. It will take care of our hedging and trading activities. At such desks, operations take place through the day, helping traders watch out for arbitration possibilities and support agreements between companies and investors,” the second HPCL official added, also declining to be identified. HPCL did not respond to an email questionnaire. “A trading desk at Singapore allows better access to information on crude oil and ensures operational flexibility. This will be a good move for HPCL now as crude prices are low,” an analyst with a domestic brokerage said on condition of anonymity. www.oswindia.com
Cabinet Clears Indian Consortium’s Stake Buy in Russian Oilfield New Delhi: The Cabinet Committee on Economic Affairs (CCEA) has approved the purchase by a consortium of Indian Oil, Oil India and Bharat Petroleum of stakes in two Russian oilfields for a total of USD 3.14 billion. “CCEA has given its approval to an Indian consortium comprising OIL, IOCL and Bharat Petro Resources Ltd (BPRL) for acquiring 23.9 per cent stake in JSC Vankorneft and 29.9 per cent stake in LLC Taas-Yuryakh from Rosneft Oil Company (Rosneft), the national oil company of Russian Federation (Russia),” a Petroleum Ministry statement here said. The acquisition in Vankorneft will provide 6.56 million tonnes of oil equivalent (MMTOE) while 29.9 per cent stake in Taas-Yuryakh will provide 0.5 MMTOE initially and 1.5 MMTOE by 2019, the statement said. “The acquisition is in line with India’s stated objective of adding high quality international assets to its exploration and production portfolio and thereby augmenting India’s energy security,” it added. The consortium will be paying $2,020.35 million for acquiring stake in Vankorneft and USD 1,242 million for Taas-Yuryakh.
India to Purchase More crude Oil from Nigeria New Delhi: India plans to buy more crude oil from Nigeria, Nigeria’s presidency on Tuesday quoted India’s Vice President as saying during a visit to Abuja. “His country, which is the leading buyer of Nigeria’s crude oil, will increase its purchase of the commodity in addition to natural gas,” India’s vice president Hamid Ansari told Nigerian president Muhammadu Buhari, according to the presidency. Separately, the upper house, the Senate, rejected a call by its president to sell oil assets to help plug a budget deficit and boost the country’s foreign reserves hammered by a fall in oil revenues. Last week, Senate president Bukola Saraki said Nigeria should sell stakes in oil and gas joint ventures with oil majors and other state assets to raise funds in hard currency and help fund the 2016 budget. “The Senate should reject the sale of our national assets,” said a motion filed by one senator, which was accepted by the upper house. The Senate also urged the government to launch a stimulus to drag the country out of recession. Nigeria’s 2016 budget was the largest in the nation’s history, but an oil price drop and militant attacks on oil pipelines in the Niger Delta have left the government scrambling for funds.
‘Energy Bridge’ between India and Russia New Delhi: In the 22nd Indo-Russia intergovernmental Commission meeting, which were co-chaired by External Affairs Minister Sushma Swaraj and Russian Deputy Prime Minister Dmitry Rogozin, a working group for creating an ‘Energy Bridge’ was launched to deliver gas from Russia to India directly. “Both sides launched an industry level Working Group - led by Gazprom, biggest Russian gas company, and a consortium of Indian oil and gas companies- for creating an ‘energy bridge’ between the two countries through possible gas pipelines for direct gas delivery from Russia to India,” said the Ministry of External Affairs (MEA).
Offshore World | 56 | August-September 2016
PRODUCTS
Liquid Concentration Analyzers
HIGH-PRESSURE PUMPS
Based on the modern principle of sonic velocity measurement, the LiquiSonic V10 provides an inline analytical solution used to determine the concentration of process liquids in industry and research. The V10 fuses this principle into a remarkably user-friendly system with a high level of accuracy.
High-pressure pumps from SRS Pumps are manufactured with Advanced Pump Technology. Their pumps are horizontal, simplex or triplex positive displacement plunger pumps. Their high-pressure equipment is the most versatile, time-and-cost-effective solution for cleaning, cutting, removing, descaling, testing, spraying, etc.
The sensor design includes a new electronics enclosure, which is characterized by increased compactness and maximum robustness. The use of the latest technology allows even more precise and faster measurement and improved repeatability. The V10 sensors use less energy and meet the increased requirements on energy efficiency and environmental protection. For use in hazardous areas like petrochemistry, the V10 sensors are ATEX-, IECEx- and FM-certified, while other V10 sensor types are 3-A-certified for use in the food and pharmaceutical industry. The internal data storage with 2 GB SSD gives a clear lead in the market. By simultaneous visualization of multiple process parameters and optimized charts, the trend view is more informative with clear structure. An absolutely unique feature of the touch screen and the virtual keyboard is the integration of not only Latin but also Cyrillic and Asian characters, which allows a worldwide comfortable use of LiquiSonic systems and sets benchmarks for controllers in process analytics. Under highest safety standards, it is possible to access the controller via the network interface or through a web browser connection. For details contact: SensoTech GmbH Steinfeldstr 1 D-39179 Magdeburg–Barleben, Germany Tel: +49-39203 514100, Fax: +49-39203 514109 E-mail: info@sensotech.com
Double Acting Plunger Pumps Double acting plunger pump is plunger type dosing pump, which the working fluid acts alternately on both sides of the piston. This one as it fills one end of the liquid chamber is discharging liquid from the other end of the chamber. On the return stroke, the end of the chamber just emptied is filled and end just filled is emptied. Each stroke of the piston fills one chamber and empties another, which nearly doubles the flow rate over a single-acting plunger pump. This pump can be used for high precision injections with pulse rates of Âą1%. For details contact SensoTech GmbH SRS Pumps Chawl No: B, Pitch No: 3, Pimpal Galli N R Hindustan Naka Charkop, Kandivli (W) Mumbai 400 067 Tel: 022-28688422 E-mail: info@srspumps.net
Pump drive end assemblies are of rugged construction with high quality materials and heavy duty taper roller bearings. Bearings are lubricated by splash lubrication. Pumps are designed to permit rapid and economical maintenance, particularly regarding plunger, packing and valves are manufactured to ensure accurate alignment on reassembly.Liquid ends can be offered in SS-304, SS-316, SS-316 L, Hastalloy B or C, Alloy 20, etc. Fluid can be accelerated to high velocities through a nozzle by the application of sufficient hydraulic high-pressure (HP). Hydraulic HP is proportional to the product of fluid pressure and the volume delivered. Fluid velocity is proportional to the pressure developed through a nozzle orifice. The impact of high pressure fluid jets can remove deposits which defy mechanical cutting tools, without any damage to underlying materials by correct selection of nozzles, accessories and power sources. Interchangeable conversion kits are available for all pump units so that the pressure/ volume relationship can be altered to suit a particular operation without altering the pump speed, thus maintaining efficient working of the drive motors. For details contact: SRS Pumps Chawl No: B, Pitch No: 3, Pimpal Galli, N R Hindustan Naka Charkop, Kandivli (W), Mumbai 400 067 Tel: 022-28688422 E-mail: info@srspumps.net / srspumps@gmail.com
Digital Mass Flow Meters/Controllers EL-FLOW Select Series mass flow meters/ controllers are thermal mass flow meters of modular construction with a laboratory style PC-board housing. Control valves can either be integrally or separately mounted to measure and control gas.Features electro-polished stainless steel wetted parts; low pressure drop; lower contamination risk; easy to clean; and has long life when used on corrosive gases. It is available with control valve to constitute a complete, compact control loop and with industrial (IP65 weatherproof ) housing. Visit www.bronkhorst.com For details contact: Toshniwal Hyvac Pvt Ltd 267 Kilpauk Garden Road, Chennai 600 010 Tel: 044-26448558, 26448983, Fax: 91-044-26441820 E-mail: sales@toshniwal.net
Offshore World | 57 | August-September 2016
www.oswindia.com
PRODUCTS
Inverting Filter Centrifuges
Mass Flow Controller
Heinkel offers the inverting filter centrifuge that is accepted and highly regarded in all application areas of the pharma industry. For products with a large proportion of free material <20 um and high filtration resistance, the centrifuge drum can be pressurised with a gas pressure of up to 6 bar in order to combine the process engineering advantages of centrifugation with the possibilities offered by differential pressure filtration. The residual moisture in hard-to-filter products can be reduced by a further 10-20 per cent in comparison with pure centrifugation.
Alicat Scientific has engineered a new mass flow controller with its highest top flow rate suitable to a wider range of applications. The MCRH can accommodate flow rates of up to 5000 slpm, without compromising speed or precision of gas control. The highly stable controller manages industrial processes with more chaotic upstream fluctuations, such as control of industrial combustion gases or mass flow into food and packaging processes.
Pressure added centrifugation can also be used for drying solid matter to a residual moistness <1%. This drying method is used most importantly in situation where valuable, toxic or extremely small quantities of product are being processed with no transfer of solids between the filtration and drying apparatus. Centrifuging process can be regulated flexibly and adjusted automatically according to product properties. Homogeneous washing results through the even cake structure. Comparatively low consumption of wash medium and consequently low volume of wash filtrate to be processed. No manual emptying of the drum or opening of the process housings necessary. For details contact: Heinkel Engg Pvt Ltd 209, 2nd Floor, Block IV, Emrald Plaza Hiranandani Meadows, Gladys Alwarys Road Thane (W), Maharashtra 400 610 Telefax: 91-022-21730785 E-mail: sales@heinkel.in
EL-FLOW Select Series mass flow meters/controllers are thermal mass flow meters of modular construction with a laboratory style PC-board housing. Control valves can either be integrally or separately mounted to measure and control gas. Features electro-polished stainless steel wetted parts; low pressure drop; lower contamination risk; easy to clean; and has long life when used on corrosive gases. It is available with control valve to constitute a complete, compact control loop and with industrial (IP65 weatherproof ) housing. Visit www.bronkhorst.com
www.oswindia.com
The instrumentâ&#x20AC;&#x2122;s Gas Select firmware includes a library of up to 130 preloaded gases, user selectable in the field. The MCRH 5000 slpm can be programmed with the instrumentâ&#x20AC;&#x2122;s pushbutton menus and onboard display or via remote connection. Digital communications options include RS-232 or RS-485 Serial, Modbus, or PROFIBUS, as well as analog 0-5 V DC, 1-5 V DC and 0-10 V DC or 4-20 mA. For details contact Halma India Prestige Shantiniketan, Gate No: 1, Tower C, 7th Floor ITPL Main Road, Whitefield, Mahadevapura Bengaluru, Karnataka 560 048 Tel: 080-67475300 E-mail: sunil.balan@halma.com
Loop Reactor
For details contact: HLE Engineers Pvt Ltd A-6 Maroli Udyognagar Post: Maroli Bazar, Dist: Navsari Gujarat 396 436 Tel: 02637-270150 E-mail: info@hlengineers.com
The MCRH 5000 slpm precisely and rapidly controls mass flow rate, volumetric flow rate or back pressure of gases in high flow processes. To overcome the poor turndown ratio and slow response of existing methods (such as interlinking a meter with an external valve) Alicat designed a new flow geometry. This new design accommodates the higher flow rates, with a low pressure drop of 14.1 psig at full scale. A dual valve design enables a fast 100 millisecond control response time without significantly raising instrument power requirements.
M Pumps EL-FLOW Select Series mass flow meters/ controllers are thermal mass flow meters of modular construction with a laboratory style PC-board housing. Control valves can either be integrally or separately mounted to measure and control gas. Features electro-polished stainless steel wetted parts; low pressure drop; lower contamination risk; easy to clean; and has long life when used on corrosive gases. It is available with control valve to constitute a complete, compact control loop and with industrial (IP65 weatherproof ) housing. Visit www.bronkhorst.com For details contact: Shanbhag & Associates B-50 Nandbhuvan Indl Estate Mahakali Caves Road, Andheri (E) Mumbai 400 093 Tel: 022-28346604, 28340071, 28218008, Fax: 91-022-28388334 E-mail: info@shanbhags.com
Offshore World | 58 | August-September 2016
EVENTS DIARY
events diary OSEA2016
EGYPS 2017 Date: 14 - 16 February 2017 Venue: CICEC, Cairo, Egypt Event: EGYPS 2017 brings together Egyptian and North African government representatives, key project owners, NOCs and IOCs, international service providers, EPC contractors, consultants and financiers to address the evolving opportunities in the Egyptian and North African energy arena. The event, held under the high patronage of His Excellency Abdel Fatah El Sisi, President of The Arab Republic of Egypt, will help you identify Egypt’s future project requirements, the country’s short and long term plans, strategic priorities and masterplans and gain insights into the wider North African oil and gas sector. EGYPS 2017 technical conference sessions and panel discussions will include critical insights into Egypt and North Africa’s fast evolving hydrocarbon business. For details contact: Kathleen Rebello, Marketing Executive dmg events, Middle East 5th Floor, The Palladium, Cluster C, Jumeirah Lakes Towers T: +971 (0)4 445 3738 M:+971(0)55 505 4707 W: www.dmgeventsme.com
In line with the industry trends and the extensive feedback from the recently concluded OSEA2014 International Conference, the upcoming Conference in 2016 will highlights some of the current trends going on the global hydrocarbon industry viz; Deepwater Exploration & Production; Optimising New and Unconventional Hydrocarbon Assets; Commercial Opportunities in Shale Gas, FPSO and FLNG; Process Safety and HSE; Asset Integrity Maintenance and New Techniques; Terminal, Bunkering, Tank Farms and other Downstream Opportunities; Digital Oil Fields, Communication, Cyber Security and Disaster Management, etc For details contact: Singapore Exhibition Services Amy Tan Assistant Manager, Marketing Services DID: +65 6233 6619 Fax: +65 6233 6633 Email: amy@sesallworld.com Web: http://osea-asia.com/
ADIPEC 2016
Date: 7-10 November 2016 Venue: Abu Dhabi National Exhibition Centre (ADNEC), Abu Dhabi, UAE Event: With a 31 year history in the marketplace, ADIPEC 2016 will provide an unrivalled audience of Oil & Gas professionals with real buying power, enabling more than USD 9.76 billion of business to be conducted onsite at the event. At the heart of global oil and gas reserves, ADIPEC’s 130,000 square metres show floor is one of the world’s biggest oil and gas technology exhibitions. ADIPEC’s history is steeped in long lasting relationships. From NOC’s and IOC’s, established service companies to government bodies, global associations and distributors - ADIPEC unlocks a world of opportunity. Ranging from international pavilions to multinationals, ADIPEC delivers the ultimate business setting to succeed in today’s competitive marketplace. Since its inception in 1984, ADIPEC has provided an unrivalled platform for industry experts to come together and share knowledge and meet with peers. ADIPEC remains in the top 3 oil and gas events in the world welcoming delegates, visitors and exhibitors from across the globe. The multi-disciplinary conference is intended for international and regional oil and gas professionals, who are involved in both the technical and nontechnical functions within the industry. For details contact: Jhoanna Kilat Marketing Executive – dmg::events 6th Floor, Office #612, TwoFour54, Salam St PO Box 769256, Abu Dhabi – UAE T: +971 2 697 0529, F: +971 2 444 4383 Email: JhoannaKilat@dmgeventsme.com www.adipec.com
Date: 29 November - 2 December 2016 Venue: Marina Bay Sands, Singapore Event: Taking place every second year, OSEA is Asia’s best known Oil & Gas event. The 21st edition is from 29 November – 2 December 2016 in Marina Bay Sands, Singapore. With a comprehensive showcase of oil & gas exploration and production innovations, OSEA continuously attracts international participation, further enhancing its reputation as THE ideal platform to meet new buyers and partners.
Refining & Petrochemicals World Expo 2017 Date: February 14 -17, 2017 Venue: BCEC, Goregaon (East), Mumbai, India Event: CHEMTECH will organise Refining & Petrochemicals World Expo 2017 and technical conference during CHEMTECH World Expo 2017 scheduled from February 14-17, 2017 in Bombay Exhibition Grounds, Goregaon (East), Mumbai and will once again create a platform for the professionals from India and overseas to witness the latest trends in technologies during the exhibition and provide opportunity to interact during the concurrent conference. The high-level technical conference in which key players in the global refinery and petrochemical sector will meet to share knowledge and learn about best practices and the latest advancements in this developing sector of the oil and gas downstream industry. 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 | 59 | August-September 2016
www.oswindia.com
Bookshelf
New Technologies in the Oil and Gas Industry Editor: Jorge Salgado Gomes Publisher: InTech Hardcover: 236 pages The book covers exploring, producing and managing the oil and gas resources in obedience with HSE standards. To sustain this challenge, new technologies, procedures, and work-paradigm needs to be implemented. The book describes some of the advanced technologies in the oil and gas industry in accordance to HSE guidelines and field management issues. Technologies for geo-modeling, transient well testing and digital rock physics are also introduced in this book. The book is a worthy read for researchers, petroleum engineers, geo-scientists and people working within the petroleum industry.
Handbook of Offshore Oil and Gas Operations Author: James G. Speight Publisher: Gulf Professional Publishing Hardcover: 444 pages This book provides contemporary coverage of technologies used in the exploration and operations in an offshore setting. It serves as a training guide covering various spectrums like geology, types of platforms, exploration methods, production and enhanced recovery methods, pipelines, and environmental management. It also covers the business trends in oil and gas industry, control and prevention of the industryâ&#x20AC;&#x2122;s impact on the marine environment and its living resources. It brings the readers familiarity with the oil and gas offshore industry and deep-water operations by exposing critical standards and real-world case studies.
Unconventional Oil and Gas Resources: Exploitation and Development (Emerging Trends and Technologies in Petroleum Engineering) Editors: Usman Ahmed, D. Nathan Meehan Publisher: CRC Press (27 May 2016) Hardcover: 894 pages This book provides a complete understanding of the current advances in the exploitation and development of oil and gas resources by addressing the aspects of drilling, completion, stimulation, production and environment. It offers comprehensive coverage of geological, petro-physical, geo-chemical and geo-mechanical measurements and their interpretation. It includes the digital frontiers from data mining to the use of micro-seismic, fiber optic and tracer reservoir monitoring technologies. It embraces the viewpoints of international experts and researchers from leading exploration and production companies and academic institutions in exploring the future trends and technologies for unconventional resources development.
Oil and Gas, Technology and Humans: Assessing the Human Factors of Technological Change Author: Denis Besnard Editor: Eirik Albrechtsen Publisher: CRC Press; Revised ed. edition (28 September 2013) Hardcover: 286 pages This book analyses the Integrated Operations (IO) in oil and gas industry from the statistics, management science, human factors and resilience engineering perspectives. These disciplines provide a wider range of understanding of IO, thereby informing risk assessment practices, as well as new techniques and methods in oil and gas frontiers. It provides up-to-date guidance to risk assessment practitioners working in the oil and gas industry.
New Frontiers in Oil and Gas Exploration Editor: Congrui Jin, Gianluca Cusatis Publisher: Springer; 1st ed. 2017 edition (19 October 2016) Hardcover: 521 pages This volume is a collection of latest research and findings on oil and gas exploration from multiple perspectives. It imparts insights on design on test programs and field operations which can be of great assistance on understanding the field behavior. Engineers can get guidance on commonly used numerical simulation methods used in reservoir modelling, through this book. The contributors to this book have explored the development in technologies for cost effective oil and gas exploration with minimum impact on water resources and geological stability of impacted areas along with infrastructures like roads, pipelines, and sewage network. The book is compiled in an understandable language thereby identifying equipment and procedural problems arising in oil and gas operations and systematic approach to solve them.
www.oswindia.com
Offshore World | 60 | August-September 2016
RNI No. MAHENG/2003/13269. Date of Publication: 1st of every alternate month.
Engineering & Technology Exposition for Oil & Gas, Power and Shipping Industries
February 2018 Venue: Bombay Convention & Exhibition Centre, Goregaon (East), Mumbai, India Supported By Organised By
Registered Office: Taj Building, 3rd Floor, 210, Dr. D N Road, Fort Mumbai – 400 001, INDIA. Tel: +91-22-4037 3636, Fax: +91-22-4037 3635 Email: sales@jasubhai.com.
• Ahmedabad - 09712148258 • Vadodara - 09712148258 • Bangalore/Hyderabad - 09444728035 • Chennai - 09176963737 • Delhi - 09818148551 • Pune - 09822209183