VOL.13 | ISSUE 4 | JUNE - JULY 2016 | US $ 10 | ` 150
OFFSHORE WORLD
INSIGHT INTO UPSTREAM & DOWNSTREAM HYDROCARBON INDUSTRY
JUNE - JULY 2016
&
HEALTH, SAFETY ENVIRONMENT INSIDE THIS ISSUE :
VOL. 13 ISSUE 4
Oil Spill Response Preparedness Cyber Security Vulnerability for the Energy Industry Countering the Threat of Cyberattacks in Oil and Gas Past, Present and Future of City Gas Distribution in India Fire Protection for People, Structures and Equipment at Offshore Health & Safety Practices and Measures in Refining & Petrochemicals
Mumbai ` 150
International Exhibition & Conference February 2018 : Mumbai, India
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CONTENTS
INTERVIEW Getting Future Ready - B K Namdeo, Director - Refineries, HPCL
12
Excellence in Project Execution - Bhaskar Patel, Managing Director, Technip India Ltd
16
Dow Chemical Displays its Offering Services and Solutions to Oil & Gas Industry - Rakesh Roy
6
Past, Present and Future of City Gas Distribution in India - Sanjay Kar
8
Countering the Threat of Cyberattacks in Oil and Gas - Katharina Rick and Karthik Iyer
20
Critical Fire Protection for People, Structures and Equipment at Offshore - Doug Marti
24
Health and Safety Practices and Measures in Refining & Petrochemicals - Ian Thorpe and Pratik Sharma
26
Oil Spill Response Preparedness - Capt D C Sekhar
30
Cyber Security is a Top Priority for the Energy Industry - Dr Richard Parliman
34
South Australia Water Saves AUD 3 Million in Energy Costs Using Bentley Software - Richard Irwin
36
Energy Commodities Exhibit Assorted Price Movement - Niteen Jain and Nazir Ahmed Moulvi
38
VOL. 13 | NO. 4 | June-July 2016 | MUMBAI ` 150 OFFSHORE WORLD R.NO. MAH ENG/ 2003/13269 Chairman Publisher & Printer Chief Executive Officer
EDITORIAL
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Maulik Jasubhai Shah Maulik Jasubhai Shah Hemant Shetty Mittravinda Ranjan (mittra_ranjan@jasubhai.com) Rakesh Roy (rakesh_roy@jasubhai.com) D P Mishra, H K Krishnamurthy, N G Ashar, Prof M C Dwivedi Arun Parab, Shankar Joshi Dilip Parab V Raj Misquitta (Head), Arun Madye
NEWS FEATURE
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FEATURES
NEWS
42
PRODUCTS
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PROJECT DATABASE
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EVENTS DIARY
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NEWS FEATURES
Dow Chemical Displays its Offering Services and Solutions in Oil & Gas Industry Dow Chemical International Pvt Ltd (Dow India) Displays Amine Management Program to reduce Sulphur and Carbon dioxide (CO 2 ) emissions at refineries; and Microbial Control Program to optimise conventional as well as unconventional oil and gas production. Excerpts…
D
ow India, a leading chemical and speciality chemical company, has showcased its service and solution offerings specific to the oil & gas industry at its Mumbai premises on July 20, 2016. Founded in 2008, Dow India’s Oil & Gas Business segment has been involved in providing an extensive portfolio of solutions across the oil and gas sector: exploration & production, Enhanced Oil Recovery, Gas Processing, and Refining. Experts from Dow India explained the company’s expertise and technology pertaining to exploration, transmission, refining and microbial control for the value chain of oil & gas industry.
Amine Management Program While the changing market dynamic mandates refiners to mix their crude slate from heavy to sour to light, today’s stricter environmental regulations for Sulphur and CO2 emissions also put substantial pressure on refineries to keep the Gross Refining Margins (GRM) in check. With the Sulphur content of crude on the increase and tightening Sulphur content in fuels, refiners are being pushed to install additional Sulphur recovery capacity. At the same time, environmental regulatory agencies of country continue to propagate more stringent standards for Sulphur emissions. With the recent announcement of Indian government regulations to upgrade fuels specs from EURO IV to EURO VI by 2020-21, refiners are looking to install new hydro-treaters to cater to the fuel specification of EURO VI grade within desired time line and also strive to improve on the environment emission norms. The Dow India Oil & Gas team performs evaluation of existing amine systems of refiners, compare to over 1000+ worldwide references and provide solutions and design assistance for new units with the help of in-house rate-based simulation capability. This eventually allows the refiner to weigh various options, considering the additional capacity required to treat the H2S and sulphur compounds, by either avoiding or optimising capex requirements. Dow India’s Amine Management Program, a comprehensive service program for the gas treating amine systems, helps to achieve environmental compliance while improving reliability, reducing energy costs and preserving the integrity of assets without adding any CAPEX to the Refinery. This proactive approach to managing an amine system can enhance a Refinery’s economics and performance by: • • • • • •
Reducing energy use Increasing unit capacity Restoring operational reliability Reducing amine consumption Reducing contaminants and corrosion Maximising solvent life
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Dow Oil & Gas provides customers with more than just products and services; it collaborates with them to improve amine plant performance and helps sustain performance gains over the long term. Dow Oil & Gas is represented by a team of experienced technical service engineers who: • • • • • •
Perform an initial survey of the amine system, including sample and data collection Run computer simulations using real data collected from the amine unit Customise a proposal to help optimise performance Supervise the implementation of the proposed solutions Provide training and start-up support Periodically visit the site to review process data and provide optimisation recommendations • Provide on-call support Dow Microbial Control to Protect Oil & Gas Operations Microbes will grow anywhere where water can be found. In hydrocarbon production and processes, the large volume of associated water provides an environment in which bacteria will thrive. Their presence impacts the quality and quantity of production, asset integrity and the overall safety of operations. Advanced stimulation techniques such as hydraulic fracturing and enhanced oil recovery (EOR) are more water-intensive processes that are susceptible to bacterial contamination, if not properly controlled with an advanced and comprehensive biocides treatment program. Left unchecked, the microbes will contribute to reservoir souring, corrosion of pipelines and equipment, and formation plugging. Dow Microbial Control, a business unit of Dow India, provides the broadest range of microbial control solutions to the Upstream Oil & Gas industry. With unmatched combination of chemistries, delivery forms, technical expertise, reliability of supply, and regulatory excellence by leveraging global capabilities, Dow Microbial Control’s advanced technologies offer cost-effective and exceptional control of microorganisms to protect the integrity of topside assets, near well area and in the reservoir, with low environmental impact and excellent safety profiles. With a wealth of experience in developing effective biocides and bringing microbial control solutions to the oil and gas industry, Dow Microbial Control expertise is based on: • The broadest portfolio of biocides for advanced sustainable microbial control, including patented and unique formulations • Technical expertise and advanced testing methods • Industry expertise • World-class manufacturing capabilities - Rakesh Roy
Offshore World | 6 | June-July 2016
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NEWS FEATURES
Past, Present and Future of City Gas Distribution in India City gas distribution (CGD) serves as an energy circulatory system in a city. Developed countries have well developed infrastructure for distribution of natural gas within cities. Primary reasons for better development of city gas distribution are availability of natural gas and government’s willingness towards green fuels like natural gas. Most of the European countries have quite robust city gas distribution system; even Asian countries like Japan, China, South Korea, and Pakistan have done remarkable progress in this field. In comparison, India remains far behind its neighbours in terms of city gas connectivity and natural gas distribution. This article throws insights into city gas distribution progress, challenges, opportunities, and future scope. Further, this article discusses enablers of CGD growth and highlights strategic actions for faster transition to gas based Indian economy.
I
n the past, gas available at through away prices was not considered worthy of developing gas market in some of the resource rich places in India. Natural was then considered just as a byproduct with limited usability. However, now scenario has changed and natural gas is considered to be one of the precious commodities. Today availability of natural gas at competitive price holds paramount importance for growth and development of city gas distribution in the country. Some cities like Delhi and Mumbai saw unprecedented growth of natural gas use owing to judicial interventions. Whereas some industrial towns/cities like Morbi, Thangargh, and Surat saw natural growth primarily due to favourable factors like availability of pipeline network, LNG terminal, and active involvement of state government. Further, formation of Petroleum & Natural Gas Regulatory Board (PNGRB) through the Petroleum & Natural Gas Regulatory Board Act, 2006 was intended to fast track expansion of city gas distribution beyond metros and industrial towns. Currently 38 cities or geographical areas (Table 1) are authorised by PNGRB under Regulation 5 of PNGRB (Authorising entities to lay, build, operate or expand city of local natural gas networks, 2008) regulations for laying, building, operating or expanding CGD network. Since 2008, over six rounds of CGD bidding the Regulator received mixed responses. The Regulator as well as the entities is going through the Table 1: CGD Bidding Rounds and Authorisation Status in India (As on 25 June 2016) Year
No. of Gas
No. Final Bids Received
No. Entities
No. GAs
Participated
Authorised
Round-I
Oct-08
6
17
8
6
Round-II
Feb-09
7
18
8
3
Round-III
Jul-10
8
51
26
6
Round-IV Sep-10 (Cancelled)
8
NA
NA
NA
Round-IV
14
44
NA
9
Sep-13
Round-V
Jul-15
20
25
NA
8
Round-VI
Jan-16
34
56
18
6
Round-VII
Jun-16
5
In Progress
Total Source: Compiled from website and public notices of PNGRB www.oswindia.com
38
learning curve. The regulator has been constantly evolving to maintain fair competition and protect interest of all the stakeholders. In the process many important regulations like Authorising entities to lay, build, operate or expand city or local natural gas distribution network 2008, Exclusivity for city or local natural gas distribution network 2008, Code of Practice for Quality of Service for City or Local Natural Gas Distribution Networks 2010, and Access Code for City or Local Natural Gas Distribution Networks 2010 have been introduced. Considering response to the first round of bidding and success rate the Regulator anticipated greater response during the subsequent rounds of CGD bidding. Unfortunately, responses to subsequent rounds of bidding were not quite successful as compared to the first round. For an instance, the 6th Round of bidding invited bids for almost 6 times of geographical areas (GAs) offered in the first round, but number of GAs authorised was the same. It is visible that there is a quantum jump in number of GAs available for bid but there are hardly any takers for some of the GAs. Entities are certainly looking for commercial viability of GAs on offer and devising their bidding strategies accordingly. Based on their strategic intent entities are willing to pay higher performance bond (Table 2) for better business potential in the GAs. Table 2: Result of Round VI CGD Bidding GA
State Authorisation
Entity
Date
Areas Commencement Performance bond (INR (Sq. Period (days) Crore) Km) from date of Authorisation
Saharanpur District Amreli District Patan District Bhatinda District Rupnagar District Dahej Vagra Taluka
UP
11-May-16
3728
365
12
270
44
180
42.6
Punjab 19-May-16
Gujarat 7477 Gas Ltd Sabarmati 5846 Gas Ltd GSPL 3357
180
12
Punjab 10-Jun-16
BPCL
1370
365
209
Gujarat 15-Jun-16
Gujarat Gas Limited
909.9 270
904
Gujarat 27-May-16 Gujarat 27-May-16
BPCL
Source: Compiled from relevant authorisation notifications of PNGRB Offshore World | 8 | June-July 2016
NEWS FEATURES
Source: Prepared by the author based on data available on PPAC website
Source: Prepared by the author based on data available on PPAC website
Figure 1: LNG Import in India
Figure 2: Net Availability of Domestic Natural Gas in India
Also, PNGRB accepted Central Government authorisation for 17 CGD networks under Regulation 5. Fur ther, under regulation 18 (1) PNGRB accepted authorisation of 10 CGD networks authorised by State Governments. For all practical purposes 65 CGD networks received authorisation from the PNGRB. However, all of them are not operational as some of the GAs are under project planning/development/implementation stages. Many of the GAs are yet to achieve their milestones declared during their bidding stage.
natural gas in the country are industrial and transport sectors, which show high level of resistance to upward price revision and explore competitive alternative fuel. In the past, subsidised diesel negatively impacted higher consumption of natural gas in the transport sector. Similarly, highly cost competitive coal adversely impacted penetration of natural gas in various industries. However, the competitive fuel like coal has greater negative impact on environment. Possible consideration of other externalities would make natural gas more cost competitive compared to coal.
Already operational CGD networks are providing access of clean fuel without any hassle to thousands of domestic, industrial, and commercial customers across the country. As of September 2015, close to 30 lakh domestic customers were getting benefit of domestic piped natural gas connections across the country. Distribution of these connections were highly skewed as Gujarat contributed 48 per cent of these connections followed by Maharashtra (29 per cent), Delhi/NCR (20 per cent), and the rest of around 4 per cent shared by 7-8 states. States like Odisha and Bihar don’t have CGD foot print, whereas states like West Bengal has rudimentary network. Similarly in case of industrial and commercial customers, Gujarat is far ahead of any other states with dominating share of 65 per cent and 72 per cent respectively. Over a period of time and six rounds of CGD bidding the Regulator is constantly trying to improvise on selection of CGD network, bidding criteria, selection process, bid bond, and monitoring process. Progress of CGD developments has been rather slow, which could be ascribed to many factors including shortage of domestic gas, high price of imported liquefied natural gas (LNG), lack of pipeline connectivity, delay in project execution, and legal entangle.
Natural gas has been successfully marketed in states like Gujarat, Maharashtra, and Delhi. Such success could be replicated other parts of India. Future of city gas distribution is quite promising in the country because the Government, Regulator, and Entities are very much charged to transform this sector. The Hon’ble Minister of Petroleum & Natural Gas has been quite proactive and moving state machineries with a sense of urgency. Be it domestic policy reforms or international oil diplomacy one could see the strategic intent of the Government. The domestic natural gas production has been the prime subject of discussion over several years primarily due to linkage of pricing and cost recovery mechanism. Recently introduced Hydrocarbon Exploration Licensing Policy (HELP) is expected to address the pricing concerns of the prospective investors; therefore greater amount of investment in exploration and production activities is anticipated. If this happens, production level of natural gas is bound to increase again. This would certainly augment domestic supply and spur demand in CGD sector. In addition, import through TAPI pipeline would reduce demand-supply gap. Further, future import of Iranian gas through pipeline or LNG could play a significant role in transforming CGD sector in India.
Despite various bottlenecks the regulator is constantly striving to expand CGD footprint across the country. Recently on 31 March 2016, under the 7th Round the PNGRB invited bids for 11 proposed smart cities. Subsequently, after receiving feedback/comments from various stakeholders 6 smart cities namely Bhubaneswar, Jabalpur, Vishakhapatnam, Coimbatore, Guwahati, and Chennai excluded from the actual list and rest five cities namely Jaipur, Solapur, Davanagari, Udiapur, and Bhopal went for bidding. This is an indication that there is lot of work to be done for identifying cities or geographical areas having realistic chance of getting serious bidders.
Future of growth natural gas market in India would depend on success of HELP, expansion of LNG infrastructure, timely completion of under construction cross- countr y natural gas pipelines, improved capacity utilisation of existing pipelines, domestic gas allocation policy, and timely completion of authorised CGD networks. Considering increasing demand for natural gas and falling domestic production, LNG import is bound to go up in the future. Figure 1 suggests that LNG import has been constantly increasing in India since 2012-13. Whereas Figure 2 confirms that net availability of domestic natural gas has been declining since 2011-12.
It is pertinent to note that lack of availability of domestic gas and high price of LNG impacted penetration of natural gas in the country. Major demand drivers of
India’s CGD sector needs transformation from slow growth to rapid expansion. To achieve much needed transformation it is better to realise that there are
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Offshore World | 10 | June-July 2016
NEWS FEATURES very little alternatives available than sourcing natural gas at competitive price from the global market. The Regulator aims to targets to offer bids for developing CGD in 51 remaining smart cities in the near future. Currently about 102 cities/geographical areas are either directly connected through natural gas pipelines/natural gas sources or in close proximity of the same are target for CGD developments. Further, additional 126 GAs are potential candidates for CGD bidding as they are expected to be connected to upcoming/ under-construction natural gas pipelines in the near future. During the course of transformation, the sector could face multiple challenges including shortage of skilled manpower at all levels starting from conducting feasibility studies to day-to-day maintenance of operational CGD network. The Hydrocarbon Sector Skill Council along with the sector specific institutions like Rajiv Gandhi Institute of Petroleum Technology, PDPU, IIPE, UPES, etc. could play important role to address emerging manpower skill gap by conducting suitable short term training and skill development programs. Further, there is a very strong need for developing platform to link academia, think-tanks, industry, regulatory body, and the government to share potential problems of the sector and possible solutions. It is fair to conclude that Indian natural gas market is moving in the right direction. Irrespective of domestic gas production or availability, the country should target to develop Pan-India natural gas network connecting each and every potential geographical areas to improve natural gas accessibility and availability. Affordability being dependent on market forces, so all parameters need to be carefully evaluated to increase natural gas penetration in India.
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
Sanjay Kar Head - Department of Management Studies Rajiv Gandhi Institute of Petroleum Technology Email: skar@rgipt.ac.in
Thank you, Regards, Rakesh Roy ( Features Writer) Jasubhai Media Pvt Ltd Tel: +91 22 4037 3636 ( Dir: 40373678) | E-mail: rakesh_roy@jasubhai.com Offshore World | 11 | June-July 2016
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INTERVIEW
Getting Future Ready
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Offshore World | 12 | June-July 2016
HPCL has rolled out investment plans worth over ` 30,000 crores over the next couple of years to upgrade and modernise Vizag & Mumbai refineries. The company is also a part of highly ambitious mega refinery & petrochemicals complex planned under the aegis of Ministry of Petroleum & Natural Gas, Government of India. B K Namdeo, Director - Refineries, HPCL, speaks about ongoing projects and investment plans of the company, in an exclusive interview with Mittravinda Ranjan.
INTERVIEW INTERVIEW In years to come, refiners will have to move from standalone models to highly complex integrated refinery and petrochemicals facilities to ensure profitability and requires massive capital investments and careful evaluation of integration opportunities.
What does the fall in crude prices mean for the refiners in the short term and long term? Refinery profitability depends on Gross Refinery Margins (GRM) and Refining cost of crude per barrel. GRM is market driven based on supply-demand of products in international market. Therefore, there is no direct correlation of crude prices with profitability of Refinery. However, indirectly, impact of crude prices is on GRM as 8-10 per cent of product from crude is typically used in refining of the crude oil as fuel which in turn reduces the gross product worth (GPW) value of the crude in the GRM calculation. Hence, decrease/increase in crude prices impact GRM to the extent of the crude used as fuel in refinery; in other words keeping same cracks (product prices – crude price) GRM will be higher in lower crude price and vice versa. In 2015-16, we have seen the crude prices were significantly lower in comparison to previous years and cracks were also relatively low, yet the refineries have posted better GRMs & profitability. Another major factor is reduction in working capital requirement while crude prices are low. This will result in lower interest burden which enhances profitability. The steady long term low crude prices give sustainable high profitability which will facilitate higher investment in Oil & Gas sector. India is planning its first Greenfield mega refinery project being planned by consortium of HPCL, BPCL & IOCL under the aegis of Ministry of Petroleum & Natural Gas (MoPNG). How viable is the project in Indian context? Let us take a look at the consumption pattern of petroleum products in the country which is one of the fastest growing sectors in India, projected to grow at 10-11 per cent per year. And if you look at, say, diesel/MS, they are growing at impressive rate of 8-15 per cent respectively on average. Total petroleum products consumption in India stood at about 183 MMT during 2015-16 while the overall refining capacity stood at 230 MMTPA which includes PSUs as well as private refiners. So far, Indian refiners have carried out value addition and undertaken brownfield expansions of existing capacities and some of the grassroot refineries such as HMEL, BORL and Paradip refineries have come up in the recent past. Assuming that the growth momentum remains the same over the next couple of years, by 2023-24 the refining capacity will get saturated and post that the demand will outstrip indigenous supplies. This will create a situation of import dependency to meet the demand of MS and diesel.
The proposed project is India’s first Greenfield mega refinery and integrated petrochemical project with 60 MMTPA capacity by HPCL, IOCL & BPCL planned under the aegis of Ministry of Petroleum & Natural Gas, Government of India. Engineers India Ltd (EIL) has been roped in as the consultant for this forthcoming project and is working on the configuration of the refinery after understanding the demand supply of petrochemicals. Once the Front end engineering and design (FEED) is complete, we may look at having synergistic partner(s) who would bring significant value in terms of investment, raw materials or experience/expertise. At present the project is in preliminary stage where we are scouting for the land of almost 15,000 acres on the west coast as one-third of the land will go into green belt. If you talk about the viability, the industry realises the value and economic benefits of such integrated projects of sizable capacities and looks at around 15 per cent ROI as the minimum threshold for refining projects. Suitable incentives are required from the Government as viability gap funding. Carrying out such projects is a herculean task which usually takes 6-8 years to commission. What is the current status of integrated refinery & petrochemical project announced by HPCL in Rajasthan? Integrated refinery and petrochemical projects bring significant value to the economics of business and the project cost is estimated to be ` 37,250 crores that would be spread over 5,000 acres of land in Rajasthan. There has been a delay in project due to unforeseen circumstances and currently we are in discussion with the Rajasthan Government to kick off the project but as of now there is no substantial information that we may be able to share. Please share HPCL’s plans on modernization & scaling up Mumbai and Vizag refineries. If you take a look at the last year’s numbers, our total sales volume was more than total combined capacity of HPCL and HMEL which stood at 27 MMTPA. We sold around 34 MMT of petroleum products out of which 7 MMT was procured from MRPL and private refiners RIL and Essar. Owing to the strong product demand, HPCL has decided for modernisation and scaling up of the existing capacities at both Mumbai and Vizag facilities and earmarked around ` 25,000 crores for investment over the next 4-5 years. These projects will also take care of the compliance to produce BS VI compliant fuels as mandated by the Government. Current capacity of Mumbai refinery stands at 6.5 MMTPA which will be scaled up to 9.5 MMTPA with the investment of ` 4,100 crore in the first
Offshore World | 13 | June-July 2016
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INTERVIEW INTERVIEW Total petroleum products consumption in India stood at about 183 MMT during 2015-16 while the overall refining capacity stood at 230 MMTPA which includes PSUs as well as private refiners.
phase which will include upgradation to comply with BS VI standards targeted to be completed before 2020. Second phase of project will include bottom upgradation using slurry hydrocracking with investment of around ` 5,000 crores during the period 2018- 2021, which will help us improve the GRMs.
is becoming stricter towards compliance, take for example the decision to mandate implementing BS VI from BS IV by 2020. Hence, Refiners will have to be very selective about technologies which yield the desired margins as well as comply with the environmental norms.
The Vizag refinery project is one of the prestigious projects for HPCL and is one of the cornerstones of company’s growth strategy. Current capacity of Vizag refinery stands at 8.3 MMTPA. We plan to expand the refinery from current 8.3 MMTPA to 15 MMTPA, which will include replacing one old CDU with modern energy efficient 9 MMTPA unit along with upgradation to BS VI and bottom upgradation facility. Additionally we are setting up hydrocracker to maximise the gains.
Emission control is another critical area that the refiners have been addressing. Almost every refiner is using flue gas Desulphurisation and Sulfur recovery technologies to control sulphur emissions but over the period of time the authorities may introduce new parameters to control various other emissions. In my opinion, refiners need to be environmentally conscious and extremely selective regarding new technologies to sustain in the long run.
We have earmarked around ` 20,000 crores for Vizag refinery and targeting completion of this project in next four years. HPCL has already invested ` 2,000 crore to complete pre-project activity of setting up deep sea SPM terminal which will allow the very large crude carriers (VLCCs) to anchor to ensure crude supplies and also relocated storage terminals for black and white oil to ensure smooth execution of project.
In years to come, refiners will have to move from standalone models to highly complex integrated refinery and petrochemicals facilities to ensure profitability and requires massive capital investments and careful evaluation of integration opportunities.
Please talk about opting for slurry hydrocracking unit for bottom upgradation instead of setting up coker at Vizag. Yes, HPCL is not taking the conventional route of setting up coker unit for bottom upgradation and opted to set up Hydrogen based resid upgradation. This is one of the advanced technologies for the refining industry and we are the first in India to adopt this trend which is giving a new direction to the bottom upgradation technology. Since Vizag refinery is very close to the airport, there is a restriction to install tall structures within certain air space. The height of coker unit is a major constraint for us because of the location. Choosing hydrogen based resid upgradation such as SHCU has been a win-win situation for HPCL as this is the state-of-the-art technology which will enable us convert > 90 per cent resid as compared to 75 per cent in Coker unit plus completely eliminate production of heavy oils. There is a small amount of pitch that will be produced which can be used by the cement plants. Moreover now there is greater awareness across the stakeholders and government has also become very particular about the environmental parameters compliance and we need to be prepared well to address such future challenges and move from conventional technologies to advanced ones. What are the future challenges that you feel the refiners need to gear up for? The first and the foremost is the environmental challenge as the government
Alternative fuels like biodiesels, ethanol blending, etc are now gaining significant attention because of lesser environment footprint and this is another area which refiners need to pay attention and be more assertive towards improving the fuel quality. Talking about the fuel quality, vehicular pollution due to diesel has been under discussion for some time and there is a gradual advent of electric cars that is now catching the fancy in developed countries. How do you see these two trends impacting the refiners? Typically in a refining set up, diesel forms around 40-50 per cent of processed crude oil quantity, approximately 15 per cent of processed crude is MS and rest is other petroleum products. Any situation which demands more than 15 per cent of MS would require the refiner to process very light crude oil which may not be a very profitable proposition. Shortfall in MS demand may be supplemented through LNG/CNG based fuels if the availability increases for automobile sector. In spite of all the efforts, diesel demand is going to remain stronger in heavy vehicles for goods transportation. As far as demand of diesel is concerned, I think that is going to increase in the years to come, however the only area that I see which needs to be addressed is improving the quality of diesel which can be done through R&D by the refiners. Coming to electric cars, though the numbers are expected to increase, dependence on diesel vehicles is expected to continue in future. There are very many challenges like electric cars inability to go over long distances due to the constant need of recharging batteries and lack of infrastructure etc which need to be addressed to make a dent in the automotive market.
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INTERVIEW
Excellence in Project Execution
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Offshore World | 16 | June-July 2016
Technip in India, like elsewhere in the world, is keen to support the E&P players and the local hydrocarbon supply chain industry with their excellence in Project execution in all three business segments i.e. Onshore, Offshore and Deepwater subsea, says Bhaskar Patel, Managing Director, Technip India Ltd. In a candid interaction with Mittravinda Ranjan and Rakes Roy, he speaks about the company’s ongoing EPC activities in India and abroad in detail. Excerpts‌
INTERVIEW FMC Technologies merger with Technip is a part of our continuing philosophy of building our strengths in deepwater where FMC will be complement to our Offshore and Subsea market.
Today’s oil & gas exploration has gone deeper to deeper from past shallow reservoirs to even greater, how have the technology, detailed engineering and providing solutions of EPC changed to develop deep and ultra deep fields. How has Technip evolved its expertise in this regard? Please Elaborate Technip’s EPC activities – both onshore and offshore - in India. Since the shallow water hydrocarbon reservoirs are getting depleted, the focus is shifting onto the Deepwater developments. As far as Technip is concerned, worldwide we have been the leader in shallow to Deep to ultra-deepwater subsea development projects. Doing engineering for such projects has been our strength, which is further augmented by our innovatively developed product line such as Flexibles & Umbilicals and installation assets, capable of installation upto 3000 m of water depth. There is also a huge focus on R&D work related to subsea. Since seventies, as the world moved to deep water and then to ultra deep water, Technip has kept itself abreast with its pioneering Engineering capabilities, R&D work on Design & product line and upgrading the installation fleet to overcome challenges in Deep to ultra Deepwater developments. Importantly also to note, Technip has done strategic alliances like with FMC Technologies to offer a complete optimised solution from surface development to commissioning.
- Prestigious project awarded by Air Products to provide project management, as well as engineering, procurement and construction management (EPCm) services for a new industrial gas complex for the Bharat Petroleum Refinery Limited (BPCL) located in Kochi. Being built on a “build, own and operate” basis (BOO), the industrial gas complex is designed to supply industrial gases (hydrogen, nitrogen and oxygen) to BPCL’s Kochi refinery as part of its Integrated Refinery Expansion Project (IREP). This project will increase BPCL’s crude refining capacity to 15.5 million metric tons per annum (approximately 310,000 barrels per day) and produce clean transportation fuels to meet Euro IV/V specifications. - CDU/VDU Heaters for BPCL Kochi Refinery - Largest Ethylene Cracker Plant for Reliance in Jamnagar - argest PTA Plant with BP Technology for JBF Mangalore - Plant capacity enhancement and FEED flexibility project through the revamp of RIL Ethylene plants at Dahej, Nagothane and Hazira - Lumpsum EPCM contract including high end process studies/Basic Engineering for CDU/VDU, ARU, FG Treating unit, Utilities & Offsite for leading client HMEL
With regards to Offshore EPC project activities in India, Technip has already executed and successfully handed over HRD Process platform project to ONGC. This project was executed in Consortium with Afcons - India and THHE - Malaysia in year 2015. This was a project where Technip’s proprietary Unideck Floatover Technology was used for the first time in India for Floatover installation of a Deck. This is the first project ever in India, where the Floatover deck design was done by an Indian company.
India team as Partner in Execution of Group Mega Projects: - Mumbai Centre in collaboration with Technip North America delivering engineering services for USGC Petrochemicals Project for Chevron Philips Chemical Company (CP Chem) which aims to build World’s largest PE capacity at single location - Almost 400 engineers in Chennai Operating Centre are working closely with other entities of the Group to carry out the engineering, procurement, supply, construction and commissioning of an integrated facility for natural gas liquefaction in arctic environment for Yamal LNG project in Russia. Technip, leader of a consortium with JGC, was awarded this project by JSC Yamal LNG, owned by NOVATEK (80%) and TOTAL (20%)
Onshore Activities: Key ongoing projects in domestic market: - Building a 6 MMSCMD onshore terminal at Odalarevu, Andhra Pradesh, India for ONGC as part of their Integrated Development of Vashishta (VA) & S1 Fields. VA & S1 fields are located at 30-35 km off the Amalapuram coast in KG Basin, East Coast of India at water depths of 250-700 m. The Onshore Terminal worth of 100 MN Euros awarded to Technip is one of the critical components of Integrated Development of VA & S1 Fields. Initially there was delay to commence the project due to certain local issues but now site work is going on full swing.
With the current low crude price where Global E&P majors are switching to Onshore from Offshore development, how does EPC company like Technip align its strategies in this turmoil time? Our strengths lie in our technology and vessels pertaining to Offshore, Subsea, Deepwater which differentiate us in the offshore market. Prima facie, the current oil price USD 40-50/barrel seems not economical viable in developing offshore & deepwater fields. We firmly believe that the supply-demand curve will escalate and the price will reach about USD 60-70 per barrel which will be a good price for sustainable deepwater development. Traditional rich hydrocarbon geographies like Mexico, East
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INTERVIEW
Doing engineering for such projects has been our strength, which is further augmented by our innovatively developed product line such as Flexibles & Umbilicals and installation assets, capable of installation upto 3000 m of water depth.
and West Africa have been started a lot of deepwater discoveries which will further accelerate the growth of deepwater filed developments. The recent discussion of FMC Technologies merger with Technip is a part of our continuing philosophy of building our strengths in deepwater where FMC will be complement to our Offshore and Subsea market. Can you please detail about the qualification criteria and contracting strategies in bagging EPC contracts in Indian oil & gas industry vis-a-vis globally? What are the project management challenges of EPC in achieving objectives of timely completion, avoiding costs overturn and maintaining quality of oil & gas project? As a services provider how does your organisation respond to these challenges? India is highly price sensitive market. So players in the industry tend to offer ‘fit for purpose’ to win the project. The recognized model of project execution in India is the Lumpsum EPC model. In some cases, depending upon own resources, some clients prefer a EPCM services model, where the contractor has to provide all services for Engineering, Procurement and Construction management, but the actual purchase of equipment and doing the civil construction and erection of the plant are done under the direct responsibility of the client through orders placed with concerned vendors/contractors. Whereas, globally the most popular model is to adopt a FEED converted LSTK-EPC model wherein the client selects a contractor based on a FEED bid along with stipulated conversion norms to an LSTK-EPC. After the FEED, it is normal for a contractor to give highly accurate cost estimate of the project. Turnaround time to award the project most likely to get stretched due to several objections raised by the participants in the bidding process which badly hit the contractor’s cost projection and Client’s execution priorities. We think following measures will definitely boost the competitiveness and ensure quality projects in energy sector in India: a. LSTK–EPC Model: It minimises the definition uncertainties, improves the accuracy of the estimate for equipment and bulks and provides the right basis for construction costs. Also, it reduces the project execution time. This integrated client-contractor approach is applied by most of the large IOCs (International Oil Companies) for their projects. This mode of execution is yet to become popular in India. www.oswindia.com
b. Bidding process in India is quite simple – lowest bid win the award. There should be a balanced weightage distribution to technology/quality vs price: Best price vs Best operating plan. c. Competent civil and erection contractors to deliver high safety & quality standard and infrastructure should be improved d. May be appointment of external, independent moderator can evaluate the objections more efficiently and negate the baseless ones to avoid unnecessary delay in bidding process e. Client and Contractors have to work more in an integrated manner f. Enhanced transparency, balanced sharing of risks, adequate and timely funding and partnering with a professional EPC contractor having a good hold on long lead equipment deliveries g. Technology innovation is mostly misinterpreted here as a costly affair but in reality it can reduce the capex and operational cost over a long period of time. FEED design competition can be proved as a better way to work. In India we have a mix of clients from PSUs and Private sector and we are comfortable working with both. Our USPs in Indian market are: - Combination of proven technologies for value added products and Refinery – Petrochemical Integration - Conducting studies to upgrade technologies for improved operation to enhance efficiency of the existing units - Project execution capability on License plus EPC basis for all its technologies - Manufacturing process technology driven proprietary products - Heaters, Burners, Convection Modules, WHB - Competency in Offshore Process Platform We have demonstrated our resilience despite the economic headwinds. Our focuses in current slowdown are: - Leverage Technology Competency and R&D leadership to reduce clients project cost - Early involvement and fully integrated approach - Global footprint - Commitment to safety, environment, security and quality - Optimizing our cost base and increasing competitiveness - Solid backlog What are the future growth drivers & business opportunities for EPC service providers in India pertaining to its hydrocarbon industry? In the Hydrocarbon industry, the key growth driver for the Indian EPC service providers in years to come clearly is the hydrocarbon demand to local production
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INTERVIEW gap and the government’s policy to reduce hydrocarbon import dependency by 10% in next 5 years. Also, a door of opportunities will open in future for these service providers, with implementation of ‘Make in India policy’. While the above picture looks quite bright, there is a big responsibility on the Indian EPC service providers to execute the projects with truly international class technologies, quality and HSE standards. Government has now approached PSUs like EIL as EPC contractor for the mega refinery planned on the West Coast of India barring private players, do you think this kind of approach will adverse impact the ‘Make in India’ campaign? It is true that PSUs are dominant share in contracting market in India. See, almost all the PSUs’ Refinery upgradation works for upgrading the fuel quality of Euro VI are with EIL. But we have to see how EIL is able to cope with the amount of works with its limited manpower because all refineries have to upgrade their fuel quality (BS VI) by 2020. We hope that some of the upgradation works we are able to take part in a comparative environment. Still compare to the Western world, India has a lot of opportunities for the private players in the form of petrochemicals complexes. Private players have the advantage of cheaper feedstock in India. The only thing is ontime execution of projects which is faced constraints like funding, land acquisition, environmental clearances, etc.
Crashed by the ‘no help’ nature of the previous licensing policy - NELP, recently the government has proposed ‘HELP’ to boost E&P activities in the country. How will these reforms impact EPC industry in India? Various policy reforms will attract the E&P companies to do developments in India and this will trigger implementation of new projects, which will be favourable to the Indian EPC industry as well. At the same time there will be ownership with the E&P companies to maintain efficient operations leading to creation of a positive pressure on CAPEX and OPEX, which will make optimisation drive in the supply chain quite intense. Tell us about Technip’s future strategy in India as an EPC service provider to the country’s hydrocarbon industry? Technip in India, like elsewhere in the world, is keen to support the E&P players and the local hydrocarbon supply chain industry with their excellence in Project execution in all three business segments i.e. Onshore, Offshore and Deepwater subsea. Our emphasis is on one stop innovative solution offering to our clients to meet world’s energy challenges. The solution offering is through our deep understanding of the design and engineering aspects, product lines, installation assets and project execution excellence.
NEXT ISSUE FOCUS: We are delighted to share that Offshore World is official media partner for ADIPEC 2016 scheduled from November 7-10, 2016 in Abu Dabhi, UAE and will have stall presence during the largest hydrocarbon industry meet in the Middle East. The forthcoming August September 2016 issue of Offshore World is ADIPEC 2016 Special’ issue which will be displayed and distributed across the international exhibitors during the exhibition and will be a part of the delegate kit for the speakers and delegates during the international conference. We have invited views from Industry Leaders, Experts, Consultants, Policy Makers through Guest Columns, Technical Articles, Case Study, on promising new technologies and innovation across the entire hydrocarbon segments. Contact: Rakesh Roy, Features Writer Offshore World Email: rakesh_roy@jasubhai.com
ADIPEC 2016 Special Offshore World | 19 | June-July 2016
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FEATURES
Countering the Threat of Cyberattacks in Oil and Gas Cybersecurity is particularly high in oil & gas industry compared to most other industries due to its global nature of oil & gas production and distribution. While transactions in the oil & gas arena are broad in scope that includes sensitive information on such diverse topics as possible well sites and end-user consumption which are vulnerable to cyber attacks; furthermore, the industry faces threats that are activist (including attacks carried out by environmental groups), rather than purely commercial, in nature. These cybersecurity threats could have severe effects not just on the industry but also on the environment, public health and safety, and even national security. The article describes various modes of cyberattacks in the oil & gas industry and the focus areas that the industry needs to look at in protecting themselves, their shareholders, and their customers adequately.
A
cross industries, companies have been intensifying their focus on cybersecurity. This is a direct consequence of the expanding role that digitisation is playing in their business and operating models, and the demonstrated potential for significant damage resulting from a successful cyberattack. Indeed, CIO magazine’s “2015 State of the CIO” survey revealed that chief information officers now spend roughly a third of their time on cybersecurity-related issues and consider cybersecurity one of their top-four priorities. 1 In our work, we are seeing keen interest in cybersecurity among other senior executives, including board members and CEOs. Concern about cybersecurity is particularly high at oil and gas companies, which face a far wider spectrum of threats—threats that are potentially more severe—than do companies in most other industries. 2 Transactions in the oil and gas arena are broad in scope—the life cycle of a transaction can include sensitive information on such diverse topics as possible well sites and enduser consumption—so the companies are vulnerable at many different points. These companies are also subject to relatively large-scale threats, given the global nature of oil and gas production and distribution. Furthermore, the industry faces threats that are activist (including attacks carried out by environmental groups), rather than purely commercial, in nature. These include threats that, if successful, could have severe effects not just on the industry but also on the environment, public health and safety, and even national security. 3 Recognising the severity of the situation, many oil and gas companies have taken significant measures to address their vulnerability. Have they done enough? In a recent survey of a number of industry players, The Boston Consulting Group found, for example, that none of the companies had undergone a comprehensive audit (spanning corporate, upstream, midstream, and downstream operations) of its value chain. Many Points of Vulnerability—But Where to Focus? The scope of activities within the oil and gas industry’s value chain creates many potential points of entry for attack (See Exhibit 1). It also leaves the industry prone to multiple types of attacks. These include attacks on the industry’s physical infrastructure (such as cutting fiber-optic cables), the disabling of critical systems (through denial-of-service attacks, for instance), and the theft or corruption of information or the prevention of its www.oswindia.com
dissemination. Given the industry’s relatively high degree of automation and interconnectedness, the effects of such attacks could be highly damaging to these companies. These effects can include the loss of equipment (for example, failed pressure-valve systems), the loss of competitive advantage (through the loss of, for instance, confidentiality of production data or possible drilling sites), and even the loss of life. In light of the industry’s multiple points of vulnerability and the potentially catastrophic consequences of a successful attack, it is important to determine where these companies should focus their cybersecurity efforts. An examination of the critical vulnerabilities of analogous industries may be instructive. A 2014 report issued by the US Department of Homeland Security’s Industrial Control Systems Cyber Emergency Response Team (ICS-CERT) identified a wide range of information security weaknesses evident across what the US government classifies as “critical infrastructure sectors.” 4 The report found that vulnerabilities in three specific realms were most prevalent across these sectors: boundary protection, information flow enforcement, and remote-access control. Vulnerabilities in these areas can open doors to a range of attacks. Inadequate boundary protection, which can make it difficult to detect nefarious activity, can create avenues that allow outside parties to interface with systems and devices that directly support a company’s control processes. Mobile and multimedia devices, including smartphones, have become integral parts of what were formerly considered secure boundaries and offer new potential points of attack. Insufficient control of information flows can allow attackers to establish unsanctioned and damaging communications using a company’s channels, ports, and services. Weak control over remote access can create many entry points for unauthorised interfacing with a company’s control-system devices and critical components. For oil and gas companies, where is the exposure to these three vulnerabilities greatest? To make that determination, we examined these companies’ value chains, using the number of systems and integration points as a proxy for exposure. Upstream data emerged as the most vulnerable. We then looked at a simple upstream drilling infrastructure for help in identifying and understanding where the security gaps in upstream operations were largest. (See Exhibit 2) As the exhibit shows, most security efforts related to upstream drilling infrastructure are focused on the security of physical assets rather than the security of information. Often, for example, data is transmitted from old or unsecured equipment and without standard protocols or security precautions.
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FEATURES
As a result, many companies’ upstream assets have glaringly unaddressed vulnerabilities to cybersecurity attacks. Until recently, the industry considered the traditional upstream systems in oil and gas to be relatively safe because they were, in most cases, isolated. But the industry’s growing use of connected industrial systems and networking technology—coupled with the ever-increasing need for real-time data and analytics—has introduced new risks. These include asymmetrical threats against which the upstream segment is relatively unprotected compared with the industry’s corporate and retail segments. The upstream segment’s heavy reliance on oil-field-services companies and use of nonstandard equipment and potentially insecure technologies further increases the number of potential entry points for attack and elevates the risk the segment faces. To fortify the security of their upstream operations and related information, companies must add a broad and effective security layer on top of their existing upstream defenses. Such a layer, which would allow the companies to proactively detect intrusions and other forms of attack, should consist of such elements as firewalls, network-monitoring equipment, and network use rules that can secure systems and also enable the infrastructure to detect intrusions and associated patterns. These elements will help ensure that all
information flows are authorised and that there are adequate authentication procedures in place to ensure that unauthorised parties cannot gain access to critical systems. This will help oil and gas companies manage cybersecurity risk across the upstream supply chain. Shoring up Defences Realising the need for taking concerted action against cybersecurity threats across the entire business, oil and gas companies have taken collective steps to mitigate risks. These include the formation of information-sharing bodies, such as the Oil and Natural Gas Information Sharing and Analysis Center, an industry effort launched in the US in 2014 to provide information and guidance to US energy companies. Oil and gas companies also stand to benefit from government measures aimed at bolstering their defenses. Many governments, including those of the US, the EU, Russia, and Saudi Arabia, have developed national cybersecurity policies or frameworks, focusing specific attention on critical infrastructure. ICS-CERT, for example, was created to monitor and respond to cyber-security incidents across critical domestic sectors, performing security assessments of and making recommendations related to industrial systems. The NATO Cooperative Cyber Defence Centre of Excellence seeks to enhance cybersecurity-related capabilities, cooperation, and information sharing among NATO member states, as well as a number of NATO partner organisations from around the world that focus on the issue, including the Euro-Atlantic Partnership Council and the Istanbul Cooperation Initiative. These various bodies and efforts notwithstanding, individual oil and gas companies need to take primar y responsibility for their cybersecurity themselves. We recommend a risk-based approach centered on three steps: • Develop an understanding of the precise risk to the company’s assets and the effort and resources necessary to mitigate them: With that understanding, the company should prioritise its security efforts. Cybersecurity risk varies considerably, depending on a host of variables, including the type of asset, its position in the value chain, and its physical location. The consequences of an attack can also vary materially. An effective detection and response scheme will aim at addressing the largest threats first. • Build and sustain a multilayered defense system: Such a system should protect against various attack vectors. Management of this is highly complex and requires organisational alignment, the right technologies,
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FEATURES clear processes, and strict organisational discipline. Threats to hardware infrastructure, for example, are different from threats to software, and it is imperative that oil and gas companies have resources that address both. 5 Companies must therefore identify vendors whose equipment has been field-tested against a barrage of attacks. The companies must also be able to pinpoint sources of attack and mobilise the right sets of tools and resources in response. The ability to continually monitor all infrastructure, prioritising threats and defenses, requires both agility and an organisational readiness to redirect technology and people to areas where they are needed most. This system and approach is considerably different from the traditional top-down, linear work-order process that is still employed in many segments of the oil and gas industry. • Manage cybersecurity risk on a consistent basis: The company must be well prepared to detect and respond to various types of attack across the value chain. Reaching this state will demand that the company’s processes, systems, and people are continually adapting to the changing landscape of cybersecurity risk. It will also demand active leadership at the executive level, which is essential for ensuring that the organisation is capable of responding to asymmetric attacks quickly and with agility. These efforts should be supplemented by a number of midlevel priorities, including the following: • Understand critical assets and the role of information relative to those assets at the institutional level and ensure that the right skills and personnel are available to safeguard vital information. • Conduct frequent audits and assessments of points at which critical information is being transmitted in order to identify and secure vulnerabilities. • Engage in data-shaping activities that boost the company’s ability to recognise exceptions to normal data flow and transmissions, exceptions that could indicate attempted attacks from external parties. • Recognise and act on the knowledge that, in many cases, people are a company’s weakest links. Most attackers target systems that have been made vulnerable through user apathy, inattentiveness, and ignorance. An organisation may have the very best technologies and processes, but if its people are unable or unwilling to comply with established security measures, the effectiveness of its defenses is greatly diminished. Adequate training and awareness is therefore critical for ensuring that the entire organisation (including IT staff, R&D professionals, and business and other users)—not just portions of it—is well braced to help resist and weather cybersecurity threats. Active promotion of best practices, such as the use of encrypted storage devices and strong passwords, can go a long way toward creating a robust people defense. • Ensure that the company’s partners—for example, vendors and oil-fieldservices companies—adhere to the
allow processes to stop safely). Companies’ orientation toward these and all security-related requirements should be comprehensive in nature and focused on continually managing risk, meeting or exceeding industry standards, and limiting negative impact on the business and customers. The increasing technological complexity of today’s oil and gas industry— driven by, for example, the industry’s spiraling deployment of data mining and analytics technologies, sensor and networking technologies, industrial systems, and systems integration technologies—is rendering it increasingly vulnerable to cyberattack. To protect themselves, their shareholders, and their customers adequately, industry players must make cybersecurity a highest priority and an ongoing consideration at the executive level. References: 1. “2015 State of the CIO,” January 5, 2015, http://www.cio.com/article/2862760/ cio-role/2015-state-of-the-cio.html#slide9, and Carla Rudder, “These 4 responsibilities just jumped to the top of CIOs’ to-do lists,” The Enterprisers Project, November 18, 2015, https://enterprisersproject.com/article/2015/11/these-4-responsibilities-just-jumpedtop-cios-do-list. 2. Indeed, as oil and gas companies deal with the severe oil-price decline, cybersecurity is among the few areas that they will likely continue to fund. 3. Information on the oil reserves of various nationstates, for example, is extremely sensitive, and its illicit distribution could have global geopolitical ramifications. Hence, many governments, as well as businesses, are making concerted efforts to address cybersecurity. See, for example, NATO Cooperative Cyber Defence Centre of Excellence, “Cyber Security Strategy Documents,” https://ccdcoe.org/strategies-policies.html. 4. US Department of Homeland Security, Industrial Control Systems Cyber Emergency Response Team, Industrial Control Systems Assessments, FY 2014: Overview and Analysis. The US Patriot Act of 2001 defines critical infrastructure as “…systems and assets, whether physical or virtual, so vital to the United States that the incapacity or destruction of such systems and assets would have a debilitating impact on security, national economic security, national public health or safety, or any combination of those matters.” According to the US government, there are 16 sectors that fall within this category, including energy, transportation systems, water and waste-water systems, emergency services, dams, critical manufacturing facilities, and chemical facilities. 5. Although companies are inclined to focus significantly on software, the threat of theft or hacking of physical hardware is very real. Use of secure technologies, such as military-grade hard disks and network equipment, can go a long way toward mitigating such threats. (Excerpted with permission of The Boston Consulting Group (BCG) from the article originally published on www.bcgperspectives.com in March 2016.)
company’s organisational-security guidelines, including the use of companyapproved hardware and software. Employees of these organisations should also have an adequate understanding of the basic principles of information security and management. Lower-priority—but still important—measures include ensuring that there is sufficient redundancy in critical systems to enable uninterrupted operations in the event of denial-of-service attacks and providing a “kill switch” to disable connectivity in order to stop an intruder (with sufficient backup in place to www.oswindia.com
Offshore World | 22 | June-July 2016
Katharina Rick Partner and Managing Director The Boston Consulting Group - San Francisco Email: rick.katharina@bcg.com Karthik Iyer Principal The Boston Consulting Group - Boston Email: iyer.n.karthik@bcg.com
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Critical Fire Protection for People, Structures and Equipment at Offshore Deepwater oil & gas drilling and produc tion has been revolutionised in recent years with the help of advanced technology where the risk of fire hazards is ex treme while designing and engineering offshore oil and gas installations. Thus ‘Fire Protec tion’ is a critical par t of onboard safety in offshore oil and gas sec tor. The ar ticle details on the fire protec tion solutions in safeguarding people, struc tures and equipment in offshore & onshore oil & gas industr y.
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igh performance and dependable solutions are more important than ever as deepwater drilling and production has been revolutionised in recent years by increasingly advanced technology. This is because in the harsh environments presented by the offshore world, the requirement for equipment to operate safely and effectively while providing peace of mind, is becoming more challenging. Fire protection is a critical part of onboard safety and reducing the risk of fire hazards is a vital and challenging part in designing and engineering offshore oil and gas installations. Trelleborg’s Doug Mar ti looks at why innovative corrosion-free, rubber-based solutions can be the key to ensuring that people, structures and equipment are protected. Going Above and Beyond Though technology has advanced to better address the changing environment, customers still require superior, cost-effective solutions with an increased focus on longer life. Customers once required products that could last 20 years, but now it’s often up to 40 years. For optimum fire safety, choosing the most suitable material is imperative and rubber-based material is, not surprisingly, becoming a more popular choice within the offshore industry due to its flexibility and durability. Compared to alternative materials, such as steel, ceramic wool or fiberglass, rubber can withstand more extreme temperatures, weather conditions, vessel movements and offers an exceptionally high durability. It is a diverse material that can damp, seal and protect, and most of all, it has an extremely long lifetime. Safety First In increasingly more challenging environments, it’s no surprise that onboard safety is a key priority for the offshore oil and gas industry. Ensuring this is paramount and is becoming increasingly more difficult.
Critical to delivering onboard safety are advanced fire protection systems, whether it is the platform’s surface protection, an onboard deluge system or coating for the pipes and flanges for example. The performance of these is essential for the safety of personnel, asset protection and preventing event escalation. So, in the offshore oil and gas sector where the risk of rapid fire spread is greater than most, firestop solutions need to provide full assurance to the onboard team that they will not fail to protect against fire. If damage is caused, costly shutdowns and repairs would be required and in the worst case scenario, the platform may fail all together. The harsh offshore weather environment causes metal products and components to be susceptible to rust and corrosion, which is detrimental to the performance and function of the platform. Additionally, ceramic wool and similar materials used for fire protection will become less effective when wet. This simply isn’t an option as demands offshore become greater. Passive Fire Protection Firestop solutions are available in a series of materials and products to protect personnel, equipment, critical components and structures, and to assist emergency response activity by buying time to gain control of the fire, and evacuate the area. With proven engineering and manufacturing techniques for protection of all types of fires, from simple cellulose to hydrocarbon and jet fire, the rubber materials are built-up of layers and meet corrosion, thermal, fire and mechanical protection requirements, protecting structures from exceeding temperature limits. Rubber has the unique capability of withstanding weather conditions, vessel movements, providing ease of inspection and fire protection over the life of a project. It is key that any fire protection specified for use on an offshore facility provides the required fire protection throughout the fire exposure period. In addition,
In the offshore oil and gas sector where the risk of rapid fire spread is greater than most, firestop solutions need to provide full assurance to the onboard team that they will not fail to protect against fire. www.oswindia.com
Offshore World | 24 | June-July 2016
FEATURES By installing effective and reliable firestop systems onboard, the safety of offshore oil and gas installations will be increased. In the harsh offshore and onshore oil and gas industry, operators need the assurance of a material that delivers proven performance, without fail.
integrity means that protected areas between modules and decks will prevent the spread of flames and hot fumes throughout the fire exposure period. For some projects, there can be the requirement for a protected surface area temperature not to exceed a certain level throughout the fire exposure period. For these types of requirements, insulation materials are used in conjunction with firestop fire protection. The critical temperature on the surface of a component is project specific information, with typical values to a maximum of +200°C to +400°C. Similarly, in accordance with the Health and Safety Executive (HSE), the generation of smoke and non-toxic fumes must remain low. Firestop Applications The platform laydown deck areas are susceptible to regular impact and abrasion due to containers being loaded onto the platform, in addition to the harsh offshore elements. It must also protect against chemical and mechanical conditions and ensure that it does not give in to fatigue. This is all before fire protection is considered. A flexible decking material capable of withstanding these conditions is an ideal solution. Rubber provides the corrosion protection in addition to environmental and impact protection, all while maintaining the required fire protection rating. By avoiding hot work onboard, fire hazards and shut down requirements can be reduced. Surface protection designs that can be installed using other techniques should be prioritised. Surface tiling should feature insulation to isolate fire temperatures from areas below and should also ensure a non-slip surface for worker safety. Sophisticated coating designs can withstand blasts of up to 2.1 bars and jet / hydrocarbon fires for more than two hours. The flexibility of a rubber-based tile means that it can take up movement in any direction, reducing the likelihood of cracking. Similarly, as it is regularly exposed to the sun, it should ensure UV and ozone protection so that it does not damage over time. Other areas of the topside that should be considered for fire resistance are nuts and bolts used in flanges – one of the weakest areas of any platform. Typical fire protection which covers the complete flange will not allow for easy inspection of the units. By protecting only the nuts, regular inspection can be performed, reducing installation time and overall weight. By using molded rubber-based material on just the flange nuts, this protects the stud bolts from elongating and the flange from breaking the seal during a fire.
gas industr y, operators need the assurance of a material that delivers proven per formance for their critical firewater and utilit y piping installations, without fail. As new high performance and reliable materials are developed for deluge systems, the onus is on leading manufacturers to ensure their materials are tested and audited to meet the varying and necessary regulations of the different offshore regions in which they operate. With the threat of critical failure looming, this is one area in particular where benefits from new technologies and innovations will ultimately reduce fire risks and potential downtime or closure. By utilising synthetic rubber, these systems are non-corroding and can withstand jet fires with a heat flux of 390kW/m 2 , temperatures above +2,552°F/+1,400°C. This makes it an ideal material choice for use in deluge and sprinkler systems on offshore oil and gas installations and ships, as well as other hazardous environments. Due to its flexible characteristics, this rubber based technology can be used to either partly or completely replace old systems and is also an ideal solution for temporary deluge systems when high safety levels need to be maintained on new builds or during modification work to existing systems. Conclusion By installing effective and reliable firestop systems onboard, the safety of offshore oil and gas installations will be increased. In the harsh offshore and onshore oil and gas industry, operators need the assurance of a material that delivers proven performance, without fail. It is the responsibility of the manufacturer to ensure that they can provide high performance and reliable solutions, now more than ever. Similarly, operators should look to work with manufacturers who can provide the most advanced solutions which will guarantee performance and importantly, safety. Operators should have access to the latest and most innovative solutions that will significantly improve onboard safety and provide peace of mind to all those on board.
Additionally, having an effective and reliable deluge system is vital to ensuring onboard safety. In the harsh offshore and onshore oil and Offshore World | 25 | June-July 2016
Doug Marti Market Development Manager Trelleborg Offshore Email: doug.marti@trelleborg.com www.oswindia.com
FEATURES
Health and Safety Practices and Measures in Refining & Petrochemicals The oil and gas industry is vital to our nation and to our nation’s economy. With India’s oil demand projected to more than double in 25 years, the oil refining industry has tremendous growth opportunities. Health & Safety awareness is a vital constituent of oil and gas activities because most of the operational conditions, chemicals, and end products are known to pose serious threats. All employers, employees, and contractors within the oil and gas industry are responsible for ensuring safe and healthful work sites. This article looks at implementation of good safety systems and its performance measurement, monitoring methods.
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o ensure the growth of business, organisation must be committed to continuously improving their safety performance at all of three areas – people, plant and processes. A focus on safety and health puts people first and that is the right thing to do. But it also makes good business sense because a good safety record reduces risk and costs. It enhances productivity. When we care for people, it is reflected in the care employees take for each other, for their equipment, and every aspect of their jobs. An organisation goal should always be safe production with people who are committed to continually improving safety performance every day. The 3P’s approach (Figure 1) which is focussing on below mentioned three key interlinked and overlapping areas is adopted by many of the industries – 1. People Safety – Driven by strong safety culture 2. Plant Safety – Driven by Process Safety Management system 3. Processes – Driven by Safety Management systems For the ‘People’ area a programme of safety culture activities should be developed to provide improved safety culture in both occupational and process safety. For the ‘Plant’ area, a defined PSM road map with milestones to achieve should be developed, it may be based on good process safety management (PSM) standard like USA OSHA process safety management (PSM) standard which is based on 14 PSM elements.
For the ‘Processes’ area the good Safety management system like OHSAS 18001 and associated continuous improvement process should be used. 1. People Safety – It is driven by strong safety culture and commitment of the management. To build and sustain any system like safety, reliability, operational excellence, the foundation must be strong safety culture. What is Safety Culture? A commonly quoted definition of safety culture is “The safety culture of an organisation is the product of individual and group values, attitudes, perceptions, competencies, and patterns of behaviour that determine the commitment to, and the style and proficiency of, an organisation’s health and safety management. Organisations with a positive safety culture are characterised by communications founded on mutual trust, by shared perceptions of the importance of safety and by confidence in the efficacy of preventive measures.” (Reference - ACSNI Human Factors Study Group: Third report - Organising for safety HSE Books 1993) Or in simpler terms “the way things are done in the organization” Because safety culture is mainly about values, perceptions, attitudes and behaviours it is difficult to see and is often likened to an iceberg floating in water – the bit you can see above the water is only a small part of the whole iceberg. With safety culture values, perceptions and attitudes can’t be seen but the resulting behaviours can be seen which is why behavioural observation programmes are used in organisations as part of a cultural change initiative. Importance of Safety Culture Good technical and management systems, procedures provide important structure for safety but without good safety culture, these do not produce required results. Many accident investigation reports identified poor safety culture as one of the major root cause of accidents. A good safety culture works like linkage and lubrication between the different technical and management systems to result in an effective outcome.
Figure 1 www.oswindia.com
Safety Culture Measurement and Benchmarking There is a saying “what gets measured gets improved”. Eight focus areas are identified for improvement, measurement and benchmarking with international standards. The focus areas are: 1. Organisational commitment 2. Health and safety oriented behaviours Offshore World | 26 | June-July 2016
FEATURES 3. 4. 5. 6. 7. 8.
Health and safety trust Usability of procedures Engagement in health and safety Peer group attitudes Resources for health and safety Accident and near miss reporting
Based on these eight focus areas, organisation can conduct annual survey of all its employees and contractors. Actions to Improve Safety Culture Elements of safety culture development must be started at the earliest in the organisations. It is also advisable that attributes of good safety culture is imparted from top leadership to future leaders and all employees of the organisation. Attributes of a good safety culture: • Good safety leadership – Clear safety vision and senior level commitment Leadership starts at the top but includes all levels of management • Visible management – “Walk the talk” • High levels of accountability & ownership for safety • Engagement and involvement of people at all levels • Good understanding and assessment of hazards • Clear and well understood procedures, rules and systems • Good safety communications Has to be two way and must include all levels of the organisation Listening skills are very important How we say it, what we don’t say and our body language are very important • Trust between management and frontline staff • High level of care for own safety and for that of others • Intolerance to unsafe acts / conditions • Clear and consistent rewards and punishments for safety – “Just culture” • Learning organisation Uses every opportunity for learning & continuous improvement • Organizational pride Some key actions followed by safety culture trainings and surveys are:• Start of recorded safety walks for all employees at manager and above levels • Focus on senior management leading by example and always challenging anything unsafe • Monthly recorded housekeeping inspections in all areas – to generate ‘pride in the workplace’ • Star t of monthly safety briefing on the first day of each month – delivered at site by senior management and attended by all employees and contractors
• Focus on improving local safety teams to give higher employee participation • Reward and recognition for safety must include ground level workforce • Focus on quality of accident / incident investigation – major training exercise on root cause analysis for investigations and adoption of good root cause analysis methodology and software as company standard. • Focus on ensuring strict compliance with basic safety rules • Launching of initiatives by which employee will think and review about hazards of activity before execution and provide feedback. Few examples are STAR (Stop, Think, Act, Review), STOP (Safety, Training, Observation, Program) initiatives. • Focus on near miss reporting and identifying areas for improvement. • Focus on eliminating short cuts 2. Plant Safety – This approach include implementation of strong Process Safety Management System to ensure safety during refinery operation and maintenance activities, safety of equipment and stringent quality assurance criteria for equipment and contractor selection processes. What is Process Safety? Process Safety is preventing the release of hazardous materials or energies from operating facilities. Failure in Process safety may result in Industrial disaster and huge damage to both company and community such as Bhopal, BP Texas incidents. Process safety works on principle of different layers of protection from inherent safety features in plant design to handling of offsite emergency plans. Importance of Process Safety A strong Process safety management system prevents major process incident and boost up employees moral for working. It ensures that plant will run safely and reliably. After Bhopal incident in India, on 2nd December 1984, many countries understood that it is not only the personal safety, the process safety is equally important because, though the frequency of process safety incidents is low but their consequence is huge in terms of loss to community, loss of business and company’s reputation. Many countries like USA (OSHA CFR 1910.119) and European Union (Seveso directive) made law for minimum compliance of process safety management system and are following very strictly. Focus areas for improvement in process safety, its measurement and Benchmarking Though there is no legal obligation to implement Process Safety in India but refinery and petro-chemical sector is going beyond the legal requirement and initiated implementation of process safety management system in their organisations. A dedicated PSM team frames a defined road map to implement Process safety management system in organisations. The scope of PSM road map is mainly based on OSHA CFR 1910.119 which includes
The safety culture of an organisation is the product of individual and group values, attitudes, perceptions, competencies, and patterns of behaviour that determine the commitment to, and the style and proficiency of, an organisation’s health and safety management. Offshore World | 27 | June-July 2016
www.oswindia.com
FEATURES
Figure 2
14 PSM elements. In Figure 2, PSM element organisation is shown under four different pillars. Actions Taken to Improve Process Safety To sustain a system, employees must participate and involve in that system implementation. Hence a PSM organogram should be framed such that it ensures participation of top management to bottom most employee of company and contractor. Roles, responsibility and accountability should be assigned to the persons involved in PSM organogram, and implementation progress should be monitored from different levels. A sample PSM organogram is shown as Figure 3. Some key actions suggested in PSM road map were as follows:• PSM sensitization workshop for senior management. • PSM awareness training to all company and contractor employees. • Initiated senior management PSM walk through in process units to motivate, sensitize and explain the vulnerability of process activities to plant O & M persons. • Identification of PSM key activities where all employees can participate and provide an online portal for monitoring their participation. • Ensuring availability and accessibility of process safety information documents like PID, PFD, MSDS to plant operation and maintenance persons. • Permit audits by plant operation and maintenance persons –like one permit audit per person per month. • Standard procedure for writing procedures. • Ensuring training, re-training, and validation of all O & M person for plant O & M procedures. Mandatory PSM induction training for new joiners. • Standardisation of different forms / check list formats. • Identification of PSM critical equipment and ensuring their inspection, testing and preventive maintenance as per schedule. www.oswindia.com
• Identification of PSM critical activities and stringent selection and evaluation criteria for PSM critical contractors. • Strict monitoring and control over ‘Management of change’ process. • Better investigation of PSM incidents to get the human aspect in root cause identification through trained professional • HAZOP and QRA study for the company in minimum 5 year period. • Development of internal leaders for HAZOP and PSM audits. • PSM dashboard for measurement of PSM leading and lagging indicators and monthly review of it. • PSM external audit based on some good PSM standard like OSHA CFR 1910.119. • PSM gap assessment by 3 rd party for analysis of it’s effectiveness up to the shop floor. • Presentation and communication of PSM issues and highlights in monthly townhall meetings. • Observing important days like Bhopal incident and share PSM learning. • Declaration of ‘video of the month’ from The US Chemical Safety Board (CSB) videos and conducting monthly competition on those videos. • Circulation of CCPS beacons and learning from incident (LFI) for employee awareness and ensuring these are being discussed and displayed in departments. PSM Assessment Results Process Safety Management System will be effective only if it is understood and followed by each and every employee in the organisation. Gap assessments and audits should be used to identify areas of improvement. 3. Processes (System, standards, procedures) – Safety Management systems is driven by high level of commitment to safety by all and should be framed based on best national and international practices.
Offshore World | 28 | June-July 2016
FEATURES
Figure 3
Effect on Incidents The ultimate aim of any safety management system is to prevent incidents and to reduce their severity. Organisations believe that “All injuries are Preventable” and “Any number beyond ZERO on incident rate, is basically a human who got affected at workplace”. There are generally two key measures of injury accidents, are lost time accidents (LTA) and total recordable injury rate (TRIR). Actions to improve Safety Management System • Implement OHSAS 18001 safety management system standard with a program for continual improvement. • Software systems for managing and tracking data Dashboards Safety portal / PSM portal All incidents and audits are entered into SAP Tracking of all actions from incidents and audits in SAP • Development and improvement of procedures • Improvement of risk assessments / Job Safety Analysis • Root cause analysis / learning from accidents • Training and ensuring competency for safety methods and systems. • Internal and External Audit Annual internal audit of all units / areas by multi-function team 6 monthly OHSAS 18001 external audit Oil Industry Safety Directorate (OISD) external safety audit British Safety Council 5 Star audit
Organisation should follow a safety strategy of focussing on three key areas – Process safety management (Plant), Safety management systems (Processes), and safety culture (People). The first two of these provide the essential foundations of good safety but a good safety culture is equally important. Use different tools like external audit, assessments and surveys to measure performance in these three areas of safety and to drive improvements. Results from various companies have shown that following a structured process such as the one described can bring significant improvements in both injury rates and in the number of process incidents. This will make refining and petro-chemical sector a best place to work.
Offshore World | 29 | June-July 2016
Ian Thorpe Vice President - Health and Safety HPCL-Mittal Energy Ltd
Pratik Sharma Manager - Process Safety HPCL-Mittal Energy Ltd www.oswindia.com
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Oil Spill Response Preparedness The article details on the preparedness of marine oil spill response caused by ships breakdown carrying crude or by oil platform to safeguard the Marine biota, fisheries, and flora & fauna.
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cenarios that are safely tucked away in contingency plans, occasionally stare at us through the television screens. It is only in such times, that the enormity of the environmental calamity that oil spills can cause, dawn on us. However it will be comforting to know, there is an established regulatory and response mechanism continuously at work to ensure this risk is managed well. The phases of an oil spill response can be seen in various stages – detection, containment, recovery and disposal. Detection Clandestine discharge is always a problem to any coastal authority. Various surveillance methods have been used to detect and dissuade such pollution. The means to detect oil spills range from Satellites to aircrafts, drones, boats, radars and buoys. Each has a different footprint it can cover, a different capital cost, different operating costs and reliability of information. However, it stands to reason that the default system in place must have low costs. Only when a spill has been detected, would you mobilise all the wherewithal to assess and respond. The technology available today allows you to choose the right platform, the right sensors, the suitable powering systems, and suitable telemetry to meet your needs, real time as soon as the spill happens. Containment and Recovery The acronym – NEBA – or ‘Net environmental benefit analysis’ comes in very useful in dealing with oil spills. Broadly it means, intervene only when you see a net environmental benefit by the intervention. If the spill has entered a mangrove or such sensitive ecosystems, there is potentially more damage done by hundreds of men entering this zone and trying to manually clean it up. Experts would advise you to leave it alone. It may be worth remembering that nature also breaks up and naturally degrades oil, albeit at a slower pace. Containment: In a recent case of a ship sinking, the oil emanating from a fuel tank air pipe of about six inch diameter continued to pour out and coated over twenty miles of the coastline. These instances remind us of the importance of
having capability to promptly control the oil at source. The salvage companies bring this capability, given their expertise to handle such situations. In most cases, deploying booms around the spill is the answer. However, logistics challenges can overwhelm the unprepared. Typically booms on a boom reel can weigh up to 3 tons and moving this around in trucks and boats needs some level of preparedness. The booms are not effective in sea conditions of over BF 4 or 5. Thus often the only option is the last option of applying oil spill dispersants. These dispersants break up the oil into tiny droplets providing a larger surface area for bio degradation and help them sink. The oil is sent down the water column and it is not gone immediately. Thus it is never the first choice. Protocol exists for obtaining regulator’s permissions prior deploying the dispersant in the waters. Containing oil in fast currents has always been a problem area in marine oil spill response. The hanging skirt of the boom is not designed to hold itself against water when relative speed goes beyond one knot. This has been always been a constraint in rivers and waters with strong currents. This is also a constraint in expediting response in normal waters, to contain and skim the oil quickly through the waters. One product to deal with this problem is from a well-established European brand and other is recently developed by Bengaluru based AlphaMERS Ltd, a company founded by the author of this article. In almost all oil spills there is an initial period where the lighter components evaporate. In lighter oil spills, the entire oil vanishes and in heavy crudes, the heavier components remain. This is factored in when deciding to apply OSD. In Macando incident in Gulf of Mexico, dispersant was applied for the first time right at the source of spill, a mile under the sea. Mechanical Skimmers of all types are used for recovering the oil at sea. They are classed according to the capacities and viscosities they cater to. Most of these skimmers are driven by portable hydraulic power packs. Coastal spills pose many more immediate challenges. The threat to the biota, the economic impact, the fisheries, the flora and fauna are higher. Most open sea skimmers or booms do not work on coast and specialized equipment is required. Debris is another problem to be dealt with. The working conditions vary so much that it will put to test all the available mechanical and pumping gear available. AlphaMERS set out few months ago to develop debris barrier for oil spills. The developed product became very popular as trash barrier for control of solid waste on rivers.
AlphaMERS staff inflating the boom for mock drill deployment www.oswindia.com
Ships and Platforms There is a big difference in how the catastrophy of a spill from a ship break up or an oil exploration spill can pan out to be. Offshore World | 30 | June-July 2016
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
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The AlphaMERS debris boom is now modified for use as trash barrier for non-oil purposes
Preventive booming around an STS operation by AlphaMERS using only available country crafts
While a ship spill can suddenly bring tens of thousands of tons of oil to the shoreline and the details available can be sketchy. The characteristics of oil, the vessel owners’ co-ordinates, and even the coastal ecological sensitivity details may not be readily available.
costs on dedicated idle resources. However the operating resources may not always be readily available and thus a ratio of two or three times the required resources are engaged in the mock drills. This will ensure at least one of them is available in an emergency.
However, a spill from an oil production platform presents a different scenario. The oil characteristics are known, contingency plans are in place, spill trajectories are known and response resources are clearly identified. The saving grace is that, the exploration company owners are known and will respond very quickly.
The real deployment brings out the real challenges to the capabilities of the response structure. The authors’ company made a recent deployment of preventive booming around an STS. While being preventive and thus not a response to a spill, it was planned but with tremendous urgency. The inventory was partly mobilized from company’s stockpile and partly imported from industry partners overseas. It was airfreighted from overseas and brought to site on an ‘urgent’ mode at high freight costs. The entire deployment and retrieval at site was done manually using country crafts. This required excellent manpower, which was thankfully available locally. The available boats were quite low powered. Towing a long stretch of boom was a very slow and patient process.
Tier III Spills When the spill size overwhelms the local and national resources, international resource pooling is done and the spill is classed as Tier III spill. In India the spills over 10000 MT are classed as Tier III spills. However the authorities may insist on mobilizing Tier III resources earlier, subject to the evolving scenario and its potential to cause damage. Currently the resources for Tier III spills are not placed in India and the practicality of air freighting the bulky items in an emergency, is very debatable. This remains an environmental vulnerability for the country. Raising these resources by private companies need a sound revenue model to sustain itself. AlphaMERS has explored initiating the stockpile as a private player, but the patronage prospects from oil industry within the country has not been highly encouraging. International Spill Control Organization (www.spillcontrol.org), based in London has been very instrumental in enhancing the wherewith to deal with oil spills around the world. ISCO has developed a model contract to procure spill response equipment from various international sources in a major spill. This document intends to do to spill response industry what the LOF did to the salvage industry. ISCO has members from over 45 countries and maintains a database of equipment, experts and other resources of these members.
Another challenge in this operation was the growth on the hull of one vessel – barnacles – that could easily tear the boom fabric apart upon contact. Some quick thinking by the site team, resulted in improvised fenders, which were deployed to keep the boom off the vessel’s hull and the barnacles. In spite of the various challenges, the deployment went off smoothly and quite uneventfully. Unlike natural calamities or fire emergencies, spill response does not occur too often, thankfully so. The practical experience of most companies is limited to cleaning up of shoreline which is a slow, methodical, manpower intensive and planned operation with international experts for advice. The experience of dealing with live situations of containment and recovery is limited. This necessitates in learning from experiences from such incidents in other parts of the world. Training and drills must make up for the lack of real spill experience and necessary to be ready for the day when this capability is tested.
Capt. Sekhar, the author, is the honorary India representative on the council of the ISCO. He can link up any local facility in need of additional resources, to this pool of responders and experts from these 45 countries. Mock Drills and Real Deployment It makes sense to utilse operating resources of the facility to in an emergency. This will result in minimising dedicated vessels and vehicles, thereby optimising www.oswindia.com
Offshore World | 32 | June-July 2016
Capt D C Sekhar Founder Director AlphaMERS Ltd Email: sekhar@alphamers.com
FEATURES
Cyber Security is a Top Priority for the Energy Industry It is essential to use live process data as an input to an operation for improving performance by the energy industry and data technologies provide opportunities for more accurate risk assessment and control of safety-critical systems within the industry. But the threat of unauthorised data access and cybercrime is serious and growing – and systems or data hacking can directly impact a company’s ability to control its own safety systems. Dr Richard Parliman, Lead Technical Specialist - Cyber Security, Lloyd’s Register, shares his opinions on why cyber security skills are vital for today’s sector, especially for the energy sector.
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iven the increasingly central role of data and connectivity, cyber security is widely accepted as a major risk to the entire energy sector, and society as a whole. Furthermore, as technology becomes more accessible, the skill-pool of associated ‘dark arts’ expands – and the risks increase. View from the Boardroom At a recent executive briefing event hosted by Lloyd’s Register, it was recognised that those responsible for cyber attacks are highly skilled, not constrained by the law and driven by a range of motivating factors. Whilst there is significant activity across the sector to mitigate the potential impacts, many of those present felt that the level of response may be insufficient and/or misdirected. Some executives felt that adequate measures were in place to protect against data theft and hacking, but that operations remain vulnerable, making interruptions a likely outcome in the event of a cyber security breach. It was also suggested that most oil and gas sector companies do not yet have in place the systems and resources required to precisely determine the source of cyber attacks or with what frequency they occur in order to implement preventative measures. During the discussion, executives largely agreed that a standardised approach to cyber crime is vital. As cyber security threats have gained currency relatively recently, the International Association of Drilling Contractors (IADC) has developed and released guidelines (based on ISA/IEC 62334). This will give drilling contractors and operators some guidance on the measures they should be taking. However, the area remains largely unregulated and much depends on the attitude of individual companies. The Threat is Real – So what can the Energy Industry do? The potential for performance improvements by using live process data as an input to an operation is largely uncontested by companies in the energy industry. On the whole, it is understood that data is essential to improving
operational performance and that data technologies provide opportunities for more accurate risk assessment and control of safety-critical systems. But statistics confirm that the threat of unauthorised data access and cyber crime is serious and growing – and systems or data hacking can directly impact a company’s ability to control its own safety systems. According to an Internet Security Threat Report, the number of cyber attacks on large companies increased by 40 per cent in 2014. In 2012, the attacks on Saudi Aramco and Qatar’s RasGas raised the profile of cyber security. At Saudi Aramco, hackers replaced data on hard drives with an image of a burning US flag, prompting the then Secretary of Defense Leon Panetta to label the incident, “a significant escalation of the cyber threat.” Two years on, it was reported that in between 2010-14 hackers had stolen source code and blueprints to the US oil and water pipelines and power grid, and had infiltrated the Energy Department’s networks on 150 occasions. More recently, high profile breaches at Sony and UK telco TalkTalk have accelerated and amplified concerns about the risk associated with cyber attacks within industry and the public. At Lloyd’s Register, Dr Richard Parliman, Lead Technical Specialist on Cyber Security, is driving efforts to equip the energy industry to defend itself. He says, “The industry falls into two camps: there are those who want to implement strong protective measures, and then there are those who think there’s no real risk and don’t take it seriously.” Describing the highly organised nature of espionage malware, Parliman cites Careto (or “The Mask” when translated from Spanish), discovered in 2014 and believed to target government bodies. More recently, says Parliman, the Mask has been has directed specifically at energy companies, and another such threat, the Phantom Menace, aimed to compromise the control systems of a vessel by stealing data. He says, “The malware remained in the background and would run unknown, then pop up when triggered by time or an event. It
It was also suggested that most oil and gas sector companies do not yet have in place the systems and resources required to precisely determine the source of cyber attacks or with what frequency they occur in order to implement preventative measures. www.oswindia.com
Offshore World | 34 | June-July 2016
FEATURES was mostly used for stealing confidential data or taking over communications systems and using them as a back door to gain access to other systems.” Alongside the increased threat and heightened profile, antivirus software products struggle to keep up. Most virus checkers only search for and detect the most common viruses and malware – which are largely those that specifically target the energy industry. Or, as Parliman says, “If it doesn’t hit a specific number, it doesn’t go into the digital file. We’re going to have to start developing those systems ourselves for the protection of the energy field, because the general commercialised antivirus companies don’t get enough hits on those [systems] specifically.” Parliman supports the view from the executive briefing – cyber security is at an early stage of development throughout the sector, and not enough is known about the sources and frequency of attacks. Of course, responses and capability varies, with some companies committing resource and focus to advancing in this area. Other – usually smaller – companies lack the scale required to develop and effect solutions, so they will look to external sources. Parliman is hopeful that the recommendations currently being developed
Knowledge-sharing is Part of the Defence Cyber security skills are vital for today’s sector. This means training or investing in specialists as well as operational teams so that actions and processes are thoroughly considered in the context of cyber security. Lloyd’s R egister has developed a set of procedures to help energy companies tackle cyber security issues. Parliman describes these as a high level view of the systems, equipment and personnel on a rig or a facility, a means of evaluating which elements are most vulnerable to attacks, and then comparing their condition to international and regional standards. Parliman notes that unintentional potential ‘breaches’ of cyber security are common. “There have been plenty of times when we’ve been on rigs where a USB drive, something simple, is supposed to be scanned before it goes into any system...Well, a person uses it, passes it to the next person, gives it back, plugs it in the system...is that safe? Not really. But does it happen a lot? Yes, because that’s been the routine practice over and over for third parties, contractors, OEMs, etc.” For this reason, an assessment should always include human and social factors, as well as technical, process and equipment aspects. This includes gaining a
Alongside the increased threat and heightened profile, antivirus software products struggle to keep up. Most virus checkers only search for and detect the most common viruses and malware – which are largely those that specifically target the energy industry.
by the IADC will help. He says: “Granted, it’s going to be a very watered down, very minimal version, but it’s going to be some sort of start for them.”
deep understanding of how people actually behave, rather than assuming that policy and procedure reflects the reality.
Connectivity equals Vulnerability The increasing digitisation of the sector has elevated the risk associated with cyber attacks, because hackers can now access data and systems from the outside. For this reason, Parliman notes that older rigs may be less vulnerable. He says, “The more you connect it, the more potentially accessible you make it. With the utilisation of marketed rigs going down, and the stacking and decommissioning of some of the older rigs, this is going to become more of an issue. In the process, they’re naturally getting rid of the older rigs because required maintenance costs are high, and modern technology increases overall safety and whole profile performance. In addition, newer rigs can be more connected, allowing for better on and off shore monitoring.”
And we are already beginning to see developments in this area. Singapore’s Minister for Communications and Information, Yaacob Ibrahim, recently indicated they will be implementing a new standalone Cybersecurity Act that will be tabled in Parliament next year. Singapore is currently reviewing the policy and legislative framework for cyber security, and this is especially important as the country moves towards its Smart Nation vision. Clearly, no organisation – or for that matter country – can afford to ignore the potential impacts of cyber attacks, and least of all in the energy industry. Whilst cyber criminals become more sophisticated, so too must be our response and defensive activities.
In addition to hardware-based threats, software presents a different type of risk. Parliman explains, “Your network is actually tied into your vulnerable information, which would be, for example, your data logging company, the drilling control system, or financial information. So if somebody gained access through the physical elements (por ts, ser vers, etc), now they have access to the financial data – just by inserting a pushing email.” Using the example if an email sent from a rig, Parliman outlines the process by which a virus embeds itself in the metadata and spreads. In this instance, the very specific nature of the virus means it is unlikely to be detected by antivirus software. Offshore World | 35 | June-July 2016
Contact: Richard.Parliman@lr.org www.oswindia.com
CASE STUDY
South Australia Water Saves AUD 3 Million in Energy Costs Using Bentley Software Amulet Provides Invaluable Forecast Data to Water Authority Regarding Water Usage and Movement
The article details on the Bentley’s Amulet operational intelligence platform to predict water usage, distribution, and electricity usage at South Australia Water that saved SA Water AUD 3 million in energy related costs by predicting tariff increases and moving water accordingly.
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outh Australia is the driest state in the driest inhabited continent on earth. In fact, only 4 per cent of the province receives more than 500 millimeters of rain each year. The River Murray, which flows for over 2,500 kilometers, is South Australia’s only major river. Transforming the Way Water is Distributed Adelaide and the surrounding area can experience prolonged periods of drought, the last of which prompted the building of a high capacity desalination plant and a north-south interconnecting pipeline within South Australia that, for the first time, allowed South Australia Water (SA Water) to distribute water almost anywhere in its network at any time in previously unachievable ways. What it couldn’t achieve successfully was predicting demand and optimising water movement accordingly. This new desalination plant and the ongoing investment in telemetr y equipment caused SA Water to look for more benefits, including increased PROJECT SUMMARY
Organisation: South Australia Water Solution: Water and Wastewater Location: Adelaide, South Australia Project Objective: • Predict demand and optimisation of water across the network • Improve analytical and decision-mak ing capabilities regarding new infrastructure and reduce operational costs • Converge IT and operational data for short and long term planning Products used: Amulet
analytical and decision-making capabilities to enhance the management of its network and optimise water usage. Bentley’s Amulet was chosen as the commercial operational intelligence platform. It consisted of three separate systems (rolled out in stages), and provided SA Water with the ability to combine IT and operational data to predict water usage, distribution, and electricity usage. Three separate decision support tools were deployed in stages: the Demand Forecasting tool, the Distribution Optimisation tool, and the Energy Portfolio Management (EPM) system. These combined systems saved SA Water AUD 3 million in energy related costs by predicting tariff increases and moving water accordingly. IT-OT Convergence to Maximise Performance One of the main objectives for SA Water was pulling information from both the operational side and the information technology side in real time. Bringing them together has resulted in huge benefits, including improving performance, enhancing the understanding of interrelationships, and enabling better decision making. Amulet was selected for the role of operational intelligence platform for its real-time ability to connect and capture data from a wide variety of sources, perform complicated calculations and analysis, and for its impressive range of visualisation components. Data collected from the operational side was previously stored in SCADA systems and fed to an OSIsoft PI system, which was then accessed through Amulet. Real-time monitored sensor data is transmitted from the reservoirs, water treatment plants, valves, flow meters, and pumps spread across the extensive pipeline network. To maximise optimisation, multiple sources of data from internal and third-party information systems was combined to aid predictions for the Demand Forecasting tool.
FAST FACTS • The Adelaide area is comprised of sixteen water supply zo n e s, s i x m a j o r w a te r t re a t m e n t p l a n t s, a n d n i n e reservoirs. • There are 26,000 kilometers of water mains in the state, of which 8,900 kilometers are in metropolitan Adelaide. • A 25-year historical database of weather was used to predict long-term planning. ROI • Predict short-term hourly and daily demand levels and long-term capital planning in seconds • Saved AUD $3 million in energy costs in the 2013-2014 financial year • Further AUD $400,000 saved in network expenditure over six months • Reduced reaction times www.oswindia.com
High Capacity Desalination Plant at South Australia Water
Offshore World | 36 | June-July 2016
CASE STUDY
Operational data from the network is combined in real time with climate, energy, cost, and population data and displayed on dashboards.
The Value of Forecasting Demand and Usage The Demand Forecasting tool is a model that predicts demand in network zones at different time frames specified by the user. It predicts short- and long-term demand – from hourly and daily forecasts up to annual strategic long-term capital forecasts. To make smarter predictions against actual water levels, more data from IT needed to be made available, especially when considering the many variables SA Water had to take into account, such as: • population distribution and growth; • operational activity; • temperature and rainfall data (weather data streams from Bureau of Meteorology includes current and short term forecasts, as well as 25-year historical database for long-term planning); • water restrictions, usage, and demand patterns; and • Weather patterns and events. Amulet’s powerful calculation and analytics engine combined all data from these sources and provided detailed predictions on demand, helping operators to plan for every eventuality. As well as a predictive tool, the Demand Forecasting tool continuously monitors current conditions across the network, as near to real time, on the Network Status Display dashboard, embedded within the Amulet system. This allows operators to respond to problems as soon as they arise. Making Sure Demand Meets Supply The next phase in the development was to integrate the Demand Optimisation tool. This tool is used to optimise the availability and the movement of clean water around the network to demand areas in a timely and cost-efficient manner. It calculates how to deliver the water by calculating costs, determining what pumping stations to use, what pumps are needed, and so on. The Demand Optimisation tool specifically designed third-party products to extract the data from Amulet to produce the sophisticated optimisation analytics. These analytics are required to take the output of the Demand Forecasting tool to develop a live hydraulic model that determines water pressures and flows throughout the network.
Happy Valley Resevoir - One of the many connected reservoirs across the SA Water network.
and determine when it should turn off pumps, shed load, and avoid high prices. SA Water changed from purchasing its electricity supply from a fixed price to a fluctuating price based on the spot market. In order to make the most of the potential savings involved, SA Water used Amulet to look at the spot market, predict prices, and allow SA Water to set pumping schedules accordingly for transferring water across the network. Using Amulet’s Data Collection Framework to initially pull in forecast data published from the Australian Energy Market Operator (AEMO), SA Water applies risk-based calculations to the data and extends it further into a long-term forecast. The data is then sent back to other systems to help SA Water produce its pumping schedules. Alarms and reports also help manage pricing. Benefits Achieved Integrating the decision support tools into a comprehensive suite represents a “world’s first” in terms of realising the benefits of actively optimising water supply and reliability to Adelaide’s customers. The hydraulic model allows SA Water to cut response times by 90 percent by quickly identifying problems (e.g., a broken water main), and apply a workaround solution. Direct benefits attributed to these tools include: • Reduction in the number of repair and shutdown issues escalated to significant or major events • Reduction in the overall risk of major water supply shut down events • Improved water security • Realisation of full asset capacity to allow for capital deferral benefits • Supporting continuous improvement in the areas of: • Customer complaints • Timeliness of response to customer complaints • Water infrastructure reliability • Timeliness of water service restoration
Load Shedding Leads to Reduced Costs By identifying how much water to move, where it is to be distributed, and what valves and pumps need to be used across the network, the next logical step for SA Water was to determine the most cost-efficient time to carry out the movements. As with the Demand Optimisation tool, the Energy Portfolio Management system also relied on the forecasts to maximise its analytics and gain more benefits. The system was used to predict and track electricity prices Offshore World | 37 | June-July 2016
Contact: Neeraj.Chhabria@bentley.com
Richard Irwin Senior Marketing Manager - AssetWise Amulet Bentley Systems www.oswindia.com
FEATURES
Energy Commodities Exhibit Assorted Price Movement Energy column (price review): May - June 2016 Unlike past few months’ trend of one-direction price movement, energy commodities exhibit assorted price movement in the two-month period of May and June 2016. Of energy commodities under review, NYMEX natural gas futures prices surged the most by about 34 per cent. On the other hand, futures prices of European Union Allowances (EUA) traded on ICE dipped the most by about 28 per cent.
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eleases of a few downbeat economic data hinting at potential for weaker energy demand, led NYMEX (CME) crude oil (light sweet) futures to start the month of May at USD 44.78 per barrel, down by 2.48 per cent from previous month’s close. Fears of global glut and news reports pointing to talk of increased production by members of the Organization of the Petroleum Exporting Countries (OPEC) in April continued to weigh on oil prices. Oil prices continued to stay under pressure on weekly data release showing a larger-than-expected build of US crude stockpiles. Oil prices got some respite on reports of wildfires in an oil-rich region of Canada and an attack on a Chevron-operated offshore oil facility in southern Nigeria fueled concerns about global crude-output disruptions. However, uncertainty following the replacement of longtime Saudi Arabian oil minister Ali al-Naimi quickly pushed oil prices down. Eventually, NYMEX crude oil futures registered its two-month (May-June) low of USD 43.03 on May 10. Continuing supply outages from Canada to Nigeria to Libya alleviating concerns over the global glut of crude oil helped recovery in oil prices. Additionally, oil prices were also supported with release of a monthly report wherein the US Energy Information Administration raised its 2017 forecast for WTI oil prices by nearly 25 per cent to $50.65 a barrel, compared with its previous estimate. Later, weekly data release showing an unexpected
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drop in US crude inventories and a ninth straight week of falling domestic production pushed oil prices up. Oil prices further rallied after Goldman Sachs said that the oil market is now in a supply shortfall. Then, release of minutes from the US Federal Reserve’s meeting suggesting the central bank might still raise interest rates in June, kept oil prices rise in check albeit briefly. However, oil prices quickly moved up as weekly report revealed a greater-than-expected fall in US crude supplies. Weak US dollar and industry group Baker Hughes reporting a fall in number of active US rig drilling for crude also helped rise in oil prices. With onset of June, OPEC’s failure in their scheduled meeting on June 2 to reach a pact to cap member production kept oil prices under pressure. Sentiments in oil prices were subsequently hampered with data release showing rise in number of active US oil rigs and weak US employment data raising concerns over the outlook for energy demand. Later, supply disruptions in Canada and Nigeria led to the recovery in oil prices. Weakening of a US dollar in the wake of dovish comments from Federal Reserve Chairwoman Janet Yellen also helped the rise in oil prices. Continued supply disruptions, Chinese import data and a decline in US crude inventories kept oil prices on uptrend. Eventually, NYMEX (CME) crude oil futures, registered its two-month (May-June) high of USD 51.67 on June 9.
Offshore World | 38 | June-July 2016
FEATURES
Thereafter, data release showing an increase in the number of active US oil-drilling rigs for a second week in row - pointing to a possible uptick in production, pulled oil prices down. Further, a few downbeat economic data release and market jitters ahead of the coming Brexit vote in the UK and Federal Reserve meeting on monetary policy raised concerns about a potential slowdown in crude demand. Later, US Fed’s decision to leave interest rates unchanged (while turning dovish on future hikes) fed into growing fears over the global economy and hence on potential energy demand – kept oil prices under pressure. Oil prices continues to trade range-bounded as global stock markets soared on opinion polls indicating the UK was more likely to remain in the European Union, which quickly made way for return of uncertainty ahead of the UK referendum on European Union membership. Oil prices then slumped after the UK’s eventual vote to leave the European Union in a nationwide referendum triggered a selloff across markets including crude oil. By fag end of the month, the threat of a union strike by Norwegian oil-and-gas workers and weakness in the US dollar pulled oil prices up. Subsequently, oil prices were also helped as US government data revealed a sixth straight weekly decline in domestic crude supplies. Finally, NYMEX crude oil futures closed June at USD 48.33, up by 5.25 per cent in the two-month period.
Moreover, reports of a switch from coal to natural gas by electric utilities in the US, falling US natural gas production and less-than-expected rise in weekly US gas inventories also helped gas price rise. Other energy commodities, ICE Rotterdam monthly coal futures prices moved up by 20.22 per cent in the two-month of May-June, closing the period at USD 55 per MT. Big mining output cuts in China and USA and improving demand from developing countries helped the rise in coal prices. Notably, mining output cuts in China and USA and improving demand from developing countries. Finally in the emission segment, EUA futures traded on the ICE platform declined by 27.55 per cent in the two-month period, closing the month of June at Euro 4.47 per tonne. Uncertainty caused by a possible UK exit from the European emissions trading scheme, a reduced economic growth outlook and the impact and details of plans by the French government to introduce a domestic carbon tax or carbon floor price still unclear were some of the factors aiding the fall in EUA prices. (Authors are Managers with Multi Commodity Exchange of India Ltd., Mumbai. Views expressed here are personal.)
Futures prices of oil derivates such as heating oil and gasoline (both traded on NYMEX-CME platform) largely traded range-bounded in the two-month period of May-June 2016. While, NYMEX heating oil futures prices moved up by 7.75 per cent in the two-month period closing at USD 148.47 per gallon; NYMEX gasoline futures prices declined by 5.26 per cent, closing the month of June at USD 150.14 per gallon. The other major energy commodity, NYMEX natural gas futures prices surged up by 34.25 per cent in the twomonth period of May-June, with a close at USD 2.924 per mmBtu. Forecasts for warmer-than-usual temperatures in much of the US, raising expectations for high summer-cooling demand for natural gas helped the rise in prices. Offshore World | 39 | June-July 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 www.oswindia.com
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.
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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 non-hydrocarbon 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
HSM is in part an image subtraction video processing technique that effectively enhances the thermal sensitivity of the camera. www.oswindia.com
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.” The two main reasons for a plant buying an OGI camera are the amount of targets to inspect and the just-intime availability of the camera in case of a leak. Companies that only require one to five inspection days per year, or 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 justify an external service provider even more.
Offshore World | 40 | June-July 2016
MARKETING INITIATIVE 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. GF309: Furnace Inspections The FLIR GF309 is designed for high temperature industrial furnace applications. These cameras are ideal for monitoring all types of furnaces, heaters and boilers, particularly in the chemical and petrochemical industries. Custombuilt to see through flames, the FLIR GF309 also features a detachable heat shield designed to reflect heat away from the camera and camera operator, providing increased protection. 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 CO 2 is easy to obtain. With optical gas imaging cameras, like the FLIR GF343, you can see CO 2 leaks quickly, easily, and from a safe distance.
Captured gas leak from production site.
This is very helpful at turnarounds and shut-downs to test the inertization and filling of the equipment. GF306: CRACKERS, AMMONIA, SF6 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. 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:
Gas leak is clearly visible on the thermal image.
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 | 41 | June-July 2016
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NEWS
Rajeev Jain Appointed as MD of KSB Pump, India
India Talks to Asian Counterpart to Seek Better LNG Deal
Pune: Rajeev Jain has been appointed as Managing Direc tor at KSB Pumps Limited – the Indian arm of the German Multinational giant – KSB Ag.; Germany. Mr. Jain will also assume the por tfolios and responsibilities as the Chairman of MIL Controls Ltd (an 100% KSB Ag.; owned Control Valve manufac turing company Rajeev Jain, Managing in Aluva near Kochi) and will spearhead Director, KSB Pump the Global D esign Center – KSB Tech as India its Managing Direc tor, located in Pune along with heading KSB groups’ Asia West operations as the Regional Executive Officer.
New Delhi: India has initiated measures on better liquefied natural gas (LNG) purchasing deal by alliance with Japan and South Korea and even may include China as the clean fuel demand rises in the Asian regions.
Prior to assuming this very important role, Mr. Jain was the Managing Director at KSB in Indonesia for over a decade and successfully steered the company to a leadership position in that region. During this tenure in Indonesia, he also was the Managing Director of KSB Singapore and the Regional Executive Officer for South East Asia. Mr Jain, started his professional career after his sound academic qualifications in Mechanical Engineering, Business Management and International trade with the projects department in KSB in India in 1985. Since then, he has handled various roles in Projects, Sales, Product Management, Exports and Regional Marketing, both in India and in the Asia Pacific Region of the KSB Group.
Germany’s Heraeus Opens Facility in Jaipur, Rajasthan Jaipur: 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 transport 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 furthermore 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
India’s Petroleum Minister Dharmendra Pradhan said that for the next two to three decades, gas will be taken a major part of the energy basket for Asian energy consumers. So we want to bring together the countries and form a network which can together source reasonable, rational and affordable LNG and talks have already begun with Japan and South Korea and may also include China onboard as partner. Natural gas currently accounts for about 8 per cent of India’s overall energy mix. In the last decade, while India’s domestic natural gas production has grown by 10 per cent, imports of LNG have risen by 335 per cent. India’s gas demand stands at 120 million standard cubic meters per day (mscmd) whereas domestic supply is 80 mscmd, making imports imperative.
H-Energy to Lay Jaigarh-Goa-Mangalore Gas Pipeline Mumbai: H-Energy Pvt Ltd, a subsidiary of real estate player Hiranandani Group, has been selected by the Petroleum and Natural Gas Regulatory Board (PNGRB) of India for grant of authorization for the Jaigarh-Goa-Mangalore natural gas pipeline through a process of competitive bidding. The 635-km pipeline will run from Jaigarh in Ratnagiri district of Maharashtra to Panjim in Goa and onwards to Karwar in Uttara Kannada district and Udupi in Karnataka before terminating at Mangalore. The pipeline will connect major industrial units like refineries, fertilizer plants, petrochemical plants and power plants in the south-western coastal stretch of Ratnagiri, Sindhudurg, Goa, Karwar, Udupi and Mangalore,” a company statement said. It will also act as a gateway for development of city gas distribution (CNG) networks in the region to provide environmentally benign fuel (CNG) for transport and piped cooking gas to households.
Mansi Madan Tripathy Appointed as MD of Shell Lubricants Gurgaon: Shell Lubricants India has announced the appointment of Mansi Madan Tripathy as its new Managing Director. Tripathy, former CMO of Shell Lubricants, will succeed Nitin Prasad, who will take over as the Chairman of Shell companies in India, a company statement. Mansi Madan Tripathy, Managing Director, Shell Lubricants India
She will be responsible for leading all the businesses activities of the lubricants segment in India, Bangladesh, Sri Lanka and Nepal, it said.
With her knowledge of the market structure, consumer psychology and trade dynamic, her focus will be to strengthen the company’s presence in India, it added.
Offshore World | 42 | June-July 2016
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NEWS KG Basin Potential is yet to Explore Fully: OilMin Hyderabad: Union Oil Minister Dharmendra Pradhan has said that Krishna-Godavari Basin will become the hub of oil and gas reserves in the country and is likely to attract new investment of ` 1 lakh crore over next 5-7 years. He further said that along with investments from ONGC, GSPC and RIL from this financial Dharmendra Pradhan, Union Oil Minister year to the next 5-7 financial years, I am visualising new investment of ` 1 lakh crore in Krishna-Godavari Basin, creating new employment and setting up downstream industry. “India’s east coast, particularly Krishna-Godavari Basin has rich hydrocarbon deposits. Though there is a difference when compared to Mumbai High, where oil and gas is available at a depth of 100 to 200 meters whereas in east coast, the same is available at a depth of 2,000 to 3,000 meters,” he pointed out.
Govt Plans to Double LNG Import Terminal Capacity New Delhi: Catering the rising demand of natural gas from refineries, fertilizer and power plants, the government plans to more than double its liquefied natural gas (LNG) import terminal capacity in six years. The concrete plan that aims to push up LNG terminal capacity to 47.5 million metric tonne per annum (mmtpa) by 2022 from the current 21.3 mmtpa, according to Oil Ministry document. While the domestic natural gas production has not been coped with the rising economy and increasing demand of gas industries and households, the dependence on import LNG will only increase in the coming years. The fertilizer and power sectors have been key consumers of the natural gas in the country, depending mostly on domestic output, while refineries and petrochemicals plants have relied more on imported gas. The imported gas is liquefied at source and carried by ships to LNG import terminals where it is regassified for further supply. With expanding need for imports, Indian also needs to add more LNG terminal capacity.
India Ready to Offer Stake to Saudi Arabia in Planned Mega Refinery
India Keens to Develop Hydrocarbon in Qatar New Delhi: India has shown interest in joint exploration of new oil and gas fields as well development of discovered assets in resource-rich Qatar as the two countries decided to focus on enhancing cooperation in the energy sector. India also invited Qatar to invest in the country’s exploration and production sector by bidding for the blocks under the new ‘Hydrocarbon Exploration and Licensing’ Policy and take part in disinvestment of Indian PSUs. An MoU was signed with Qatar Investment Authority for facilitating Qatari investment in the ` 40,000-crore National Investment and Infrastructure Fund. India “highlighted the interest of its energy companies to pursue opportunities of mutual interest in Qatar, with Qatar Petroleum and other companies, in order to jointly explore new fields as well as development of discovered oil and gas assets and exploit the existing resources of natural gas and crude oil in Qatar,” said a joint statement. “The two sides agreed to focus on enhancing cooperation in energy, covering the areas of training and human resources development and cooperation in research and development and through promotion of joint ventures in petrochemical complexes and cooperation in joint exploration in India and other countries,” the statement said. India invited Qatar to participate in the second phase of the strategic reserves storage facility being created in India, the statement said.
Dilip Sanghvi, Adani Eye on Smaller Oil Blocks Auction Mumbai: Dilip Shanghvi, promoter of India’s biggest drug maker Sun Pharmaceuticals, Gautam Adani of the Adani group and the Ruia family of Essar, are some of the high profile investors who are looking to have a piece of the action in India’s upcoming auction for 46 small oil blocks. Shanghvi is interested to bid through Sun Petrochemicals while Adani is in the fray through Adani Welspun Exploration, a 65-35 joint venture between Adani Group and the city-based Welspun Group, and Ruias are coming through Essar Exploration & Production.
New Delhi: India has ready to offer stake to Saudi Arabia in the mega oil refinery and petrochemicals project proposed in coastal Maharashtra at an estimated cost of Rs 1.5 trillion, said Petroleum Minister Dharmendra Pradhan.
Along with these billionaires, there are established players from the field like Indian Oil Corp and Bharat Petroleum, private equity players like India Capital and Capital Fortunes, and several other players from the field who attended the first road show for auction. Even officials from consulates and high commissions of UK, Brazil, Norway and several others were there to look for opportunities in the country’s energy sector.
He said that recently, I met Saudi officials with an offer of a stake in the proposed mega refiner y projec t in Maharashtra, for which we have already appointed Engineers India as the PMC (projec t management consultants).
The winners will also be under a single licence for extraction of all types of hydrocarbons, that is oil, gas, shale gas, etc. The new policy also gives freedom of pricing, no oil cess, customs duty exemptions and graded royalty rates to the winning bidders.
www.oswindia.com
Offshore World | 44 | June-July 2016
IGL Appoints E S Ranganathan as MD
E S Ranganathan, Managing Director, IGL
India’s Biggest Oil Refinery to Cost $30 billion: IOCL
New Delhi: Indraprastha Gas Limited, the retailer of CNG to automobiles and piped cooking gas to households in the national capital, has been appointed E S Ranganathan as the Manging Director of the company. Ranganathan replaced Narendra Kumar, who has returned back to the company’s parent firm, GAIL India Ltd.
Ranganathan, an instrumentation and control engineer possessing and an MBA with specialisation in Marketing, has taken over the new assignment, the company said in a statement. Before joining the current assignment, he was posted as Executive Director in GAIL.
Panel to Prepare Blueprint to Raise Refinery Exports New Delhi: With a view in meeting the growing economy of the country as well as to capture the refining products export market, a 12-member expert panel has set up to prepare a blueprint for raising India’s oil refining capacity by 2040. The panel began work by asking public and private sector refiners to present their plans for capacity expansion and asked for domestic demand assessments to be made. The panel headed by Additional Secretary in the Oil Ministry and include directors of refineries at Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL). It would also comprise of representatives of private sector Reliance Industries and Essar Oil besides managing directors of Numaligarh Refineries Ltd, Mangalore Refineries Ltd and Chennai Petroleum Corp Ltd (CPCL), officials said. India has a refining capacity of 232.066 million tons, which exceeded the demand of 183.5 MT in the 2015-16 fiscal. According to International Energy Agency (EA), this demand is forecast to reach 458 MT by 2040.
RIL Gets Green Nod for Tamil Nadu’s Drilling Project Chennai: Reliance Industries Limited has received environment clearance for the eight additional exploratory wells to ascertain the reservoir capacity and commercial viability of hydrocarbons off the coast of Tamil Nadu at a project cost of ` 800 crore. The company has been awarded exploratory rights for hydrocarbons prospecting in the offshore block DY-III-D5 under the New Exploration Licensing Policy-III. RIL has already been given the environment clearance to drill 11 exploratory wells in this block. As on date, Reliance Industries Ltd has drilled nine wells and discovered hydrocarbons in three wells. Since seismic data and the drilling campaign shows presence of hydrocarbons in the block, RIL is planning to carry out 8 additional exploratory well drilling to establish the reservoir capacity.
Mumbai: The 60 million tons a year refinery and a mega petrochemical complex planned on the west coast will cost around USD 30 billion (` 2000 billion). The planned mega oil refinery will set up jointly by three major state oil refineries – IOCL, BPCL and HPCL – include Engineers India Limited (EIL). Sanjiv Singh, Director (Refineries), IOCL
The mega refinery and a mega petrochemical complex will be set up in two phases. “Phase-1 will be 40 million tons together with an aromatic complex, naphtha cracker and polymer complex,” said Sanjiv Singh, Director (Refineries), IOCL. Phase-1 will cost ` 1200-1500 billion and will come up in 5-6 years from the date of land acquisition, he said. “The entire refinery will include three crude units of 20 million tons each—first of these will be part of phase-1. “The mega complex will require 12,000-15,000 acres of land and two-three sites on the coast of Maharashtra are being explored,” he said. The second phase will cost ` 500 - 600 billion, he added. IOC has been looking at west coast for a refinery as catering to customers in West and South was difficult with its refineries mostly in the North.
IOCL to Expand Refining Capacity Mumbai: To meet India’s rising energy demand, IOCL is likely to invest around ` 400 billion to expand its refining capacity to over 100 million tons by 2022 from the current 80.7 mt per annum, said IOC Director (Refineries) Sanjiv Singh. As we see, (fuel) demand is expected to grow at 3.5-4 per cent CAGR and we need to build capacities to meet that requirement,” he said. It is looking to scale up its Koyali refinery in Gujarat to 18 mt from 13.7 mt while capacity of the Panipat refinery in Haryana will be raised by a quarter to 20.2 mt from the current 15 mt. A 3-mtpa capacity addition each is planned for Uttar Pradesh’s Mathura and Bihar’s Barauni refineries, which will take their capacity to 11 mt and 9 mt, respectively. The recently-commissioned 15-mtpa Paradip refinery in Odisha will see a capacity addition of 5 mt while about 3 mt will be added in IOC’s Digboi and Bongaigaon refineries in the North-East, he said. Other state refiners too have planned capacity addition to meet rising demand. Bharat Petroleum Corp (BPCL) is looking to ramp up capacity to 53 mt, from 30.5 mt currently, by adding 1.6 mt to its Mumbai refinery and another 6 mt to the Kochi unit. There is a plan to ramp up capacity of Bina refinery in Madhya Pradesh by 9 mt, to 15 mt, while Numaligarh’s will go up to 9 mt, from 3 mt. Hindustan Petroleum Corp Ltd (HPCL) also plans to expand its Mumbai refinery to 8.2 mt from 6.5 mt and that of Vizag unit to 15 mt from 8.3 mt. While its Bhatinda refinery’s capacity will go up to 11.2 mt from 9 mt, it has plans to set up a 15-mt unit in Vizag in Andhra Pradesh and another 9-mt refinery at Barmer in Rajasthan. As for the Mangalore refinery, it is chalking up plans to increase capacity to up to 21 mt, from the current 15 mt.
Offshore World | 45 | June-July 2016
www.oswindia.com
NEWS
NEWS
NEWS D Rajkumar and Utpal Bora to Head BPCL and Oil India
Essar to Invest in West Bengal Kolkata: Essar is readying itself to start production of shale gas at its Ranigunj coal bed methane block. The plan is to start production as soon as possible after guidelines for such production processes are notified.
Manish G Maheshwari, CEO, Essar Oil & Gas
“We are expecting the government to come up with the notification soon. In anticipation we are readying ourselves to start production as soon as possible,” said Manish G Maheshwari, CEO, Essar Oil & Gas.
D Rajkumar, Managing Director, Bharat Petro Resources Ltd
“Coal bed methane and shale gas production compliments each other in that shale gas production requires lot of water and CBM production releases a lot of water. Existing infrastructure in CBM production process also would reduce investment required for shale production,” he said. Nevertheless, the company will invest an additional Rs 1000 crore in the Raniganj facility this year to ramp up production from production which has recently touched 1 million mmscmd of CBM. Plan is to ramp up production to 3 mmscmd. The company has already invested ` 3,300 crore in the facility.
KGLNG Gets Green Nod for Expansion Project in AP Hyderabad: Based on the recommendations of the Expert Appraisal Committee (EAC), the Environment Ministry has given clearance to Krishna Godavari LNG Terminal Pvt (KGLNG) to develop an offshore LNG floating storage and re-gasification unit at Kakinada Deep Water Port in Andhra Pradesh at a cost of ` 1,270 crore. As per the proposal, KGLNG -- a special purpose vehicle of US-based VGS Group Inc -- will set up offshore LNG floating storage and re-gasification unit (FSRU) in two phases with a handling capacity of 3.60 million tonnes per annum (mtpa) in phase-I and ultimate capacity of 7.20 mtpa in phase-II to meet natural gas demand in the state and project region. The total cost of the project is ` 1,270 crore while that of phase-I will be ` 870 crore that will be commissioned in 1 year after obtaining due clearance.
Petronet LNG to Expand it Overseas Portfolio New Delhi: Petronet LNG is planning to invest up to USD 3 billion in the next five years to expand its overseas portfolio by setting up terminals in Bangladesh and Sri Lanka among other countries, said Prabhat Singh, Managing Director, Petronet LNG. Falling spot LNG prices have boosted consumption of the fuel in India and triggered demand for LNG infrastructure in countries long shut out of the gas trade. “We are thinking global and we are not looking inwardly only at India ... we have potential and we should aim for 30 billion-40 billion rupees’ (USD 445-596 million) worth of projects every year for five years,” he said. www.oswindia.com
Utpal Bora, Chairman and Managing Director, OIL
New Delhi: Rajkumar and Utpal Bora have been appointed as Chairman and Managing Director (CMD) of Bharat Petroleum Corporation Ltd (BPCL) and Oil India Ltd (OIL), respectively. Mr Rajkumar is, at present, working as Managing Director of Bharat Petro Resources Ltd, a unit of BPCL focused on exploration and production. Mr Bora is Executive Director in Oil and Natural Gas Corporation (ONGC) Limited. They have been appointed to the posts for fiveyear term, an order issued by the Department of Personnel and Training (DoPT) said. Mr Rajkumar will take over the charge on or after October 1, 2016 after retirement of BPCL’s current chief S Varadarajan in September. Mr Bora was selected on the recommendation of a three-member search-cum-selection Committee, headed by Cabinet Secretary P K Sinha, officials said.
Try to Bring Petro Products under DBT: Pradhan New Delhi: Government is exploring ways to bring the petroleum products under the ambit of the proposed GST with the consent of states, said Petroleum Minister Dharmendra Pradhan, announcing plans to implement DBT scheme in kerosene. He said that so far the petroleum products have been kept out of the purview of the proposed Goods and Services Tax but an in-principle decision has been taken to bring petroleum products under it. “The petroleum products will be brought under the GST but I don’t know when. Since we have a federal structure, we have to get the consent of the states. We are exploring various ways.” The Minister said many states are against bringing the petroleum products under the ambit of GST as it was a huge revenue generating source for them. Except Tamil Nadu, Mizoram and a few Union Territories, most of the states have increased taxes on petroleum products and it was difficult to bring a uniform tax rate across the country.
Govt Woos Start-ups for Small Oil and Gas Fields Bidding New Delhi: Government has taken initiative to bring in start-ups to join in the open bidding of small and marginal oil and gas fields. Union minister of petroleum and natural gas, Dharmendra Pradhan said that government is working on if the net worth clause for start-ups may be reworked and instead bank guarantee can be taken for the start-ups. He said that oil ministry has already done away with experience clause for the Discovered small fields bid round and simplified the bidding process so that startups with new technology can come in.
Offshore World | 46 | June-July 2016
Cairn-Vedanta Merger Likely by 2016- end: Anil Agarwal
Anil Agarwal, Founder and Chairman, Vedanta Resources Plc
Russia Seeks Indian Partnership in Yamal LNG Project
New Delhi: The merger of Cairn India with its parent, Vedanta Ltd is likely to be completed by year end to create India’s largest diversified natural resources company, said Anil Agarwal, Founder and Chairman, Vedanta Resources Plc.
New Delhi: On the outcome of Oil Minister Dharmendra Pradhan visits to Russia, the country has offered Indian oil companies a stake in the second phase of Yamal LNG, the biggest project to produce liquefied natural gas in the Arctic. Petronet LNG, India’s biggest natural gas importer, is studying the offer, they said adding other state-owned firms like Indian Oil Corp (IOC) may join in later, sources said.
“I want to create a true natural resource company out of India that can rival the likes of Bralia’s Vale SA, Rio Tinto of the US or BHP Billiton of Australia,” said Mr Agarwal.
Novatek OJSC, Russia’s second-biggest natural gas producer, holds 50.1 per cent stake in the project that comprises development of the South-Tambeyskoye field with proven deposits of 1.3 trillion cubic meters of natural gas and the construction of natural gas liquefaction plant (LNG) for producing 16.5 million tons of LNG a year by 2017. Now the company is planning a second phase and is offering a stake to Indian firms, sources said.
The merger of India’s biggest private oil producer with the country’s top producer of aluminum and copper will give India “a natural resources company of its own,” he said.
India Turns to Malaysia, Brunei Crude New Delhi: Bharat Petroleum Corporation Limited, BPCL has issued a spot tender to purchase several Malaysian light sweet crude grades, raising expectations that more Indian end-users could switch their focus to Southeast Asian supplies amid growing uncertainty over the exports of Nigerian crude grades. BPCL is seeking up to one million barrels of various Southeast Asian light sweet crudes, including Malaysia’s Miri Light, Labuan, Tapis, Kikeh, Kimanis and Bintulu as well as Brunei’s Seria Light and Champion crudes for loading over September 11-20, according to an official tender notice seen by S&P Global Platts. The latest spot tender is said to have raised a few eyebrows in the AsiaPacific sweet crude market, as the Indian state-owned company does not regularly seek Malaysian and Bruneian crude grades in the spot market. However, BPCL’s latest move was seen as necessary, as the procurement of any Nigerian crude grades would be a big risk amid ongoing production hiccups caused by militant attacks in the Niger Delta, a company source. “BPCL, like many other Indian state-run companies, prefer to take Nigerian light sweet crudes like Qua Iboe and Bonny Light. Those are the number one choices,” the source said, adding that “when production (of light sweet Nigerian grades) is in doubt, the next best option would be Malaysian (grades).” Last week, ExxonMobil said Nigerian crude Qua Iboe has been placed under force majeure and exports were halted, while Italian company, Eni, confirmed earlier this month that 4,000 barrels per day, b/d, of oil equivalent of equity production had been shut-in following an attack claimed by militants in the Niger Delta. Nigerian militant group, the Niger Delta Avengers, said weekend that it would not permit foreign oil companies operating in the Niger Delta region to carry out repairs on bombed oil pipelines, threatening more devastating attacks on any repaired facility. “There is no guarantee the Nigerian crudes will load and set sail safely. It’s very risky,” said a Singapore-based sweet crude trader.
ONGC, Cairn India Demand Halving Cess on Crude Mumbai: ONGC and private sector Cairn India have demanded halving of cess on domestic crude oil production saying their burden has actually gone up after Finance Minister Arun Jaitley’s Budget exercise aimed at reducing the levy. Oil and Natural Gas Corp (ONGC) paid ` 4,500 per ton cess on crude oil it produced from almost all its fields including prime Mumbai High, till February 2016. In Budget for 2016-17, Jaitley changed the cess from specific levy to an ad valorem rate of 20 per cent of crude oil price. However, at the current oil prices, ONGC and other oil firms like Cairn are paying more than ` 4,500 per ton cess. Sources privy to the development said the two firms have made representation to the government saying the ` 4,500 per ton equals to 20 per cent ad valorem duty when oil price crosses USD 44 per barrel. And with oil prices ruling higher, the net impact of an exercise which was aimed at giving relief to domestic oil producers, is that they have to pay more now, they said. ONGC and other upstream players have sought reduction in cess to 8 to 10 per cent as the purpose of Budget exercise to rationalise the cess has been defeated even at current moderate crude prices. In a low crude oil price regime, cess imposes a significant economic burden on producers, they said. In addition to cess, other statutory levies like royalty (10-20 per cent), VAT (5 per cent) and Octroi (4.5 per cent) are also payable on production/sale of crude oil.
Large Natural Gas Deposits Found at Bay of Bengal New Delhi: Natural gas hydrate deposits were found in the Krishna-Godavari Basin in the Bay of Bengal by a joint expedition team, including the United States Geological Survey (USGS), the Indian government and Japanese scientists, said the USGS. The discovery has the potential to help India, which currently imports a major chunk of its fuel, in fulfilling its energy needs. This was the second such expedition undertaken by the USGS and the government of India. The gas hydrates found by the Indian National Gas Hydrate Program Expedition 02 are producible unlike the discovery during the first expedition. For natural gas to be “producible with existing technologies,” it has to occur in sand reservoirs, the US government agency said. The team was led by Oil and Natural Gas Corporation on behalf of the Ministry of Petroleum and Natural Gas, in cooperation with the USGS, the Japanese Drilling Company and the Japan Agency for Marine-Earth Science and Technology.
Offshore World | 47 | June-July 2016
www.oswindia.com
NEWS
NEWS
PRODUCTS
Flow Meter for Fuel Metering The meters Type OV have been developed especially for use in loading systems for tank trucks and tank cars. The sizes available and the materials selected are coordinated with the requirements placed on modern loading facilities for petroleum products (motor gasoline, diesel, fuel oil). The meters are suitable both for top and bottom loading facilities. Aside from the oval wheels, the loading meter contains no moving parts and thus no wearing parts. It is designed as a volume transmitter. Models are available in digital and mechanical display. It is approved for Custody Transfer and has the approval of Department of Legal Metrology - W & M Certification. It is non-sensitive to vibrations, pulsations and pressure changes, and has high long term stability. 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
GRE Pipes EPP is the first Indian company to get API 15 LR certification for GRE pipes. EPP can manufacture 30 km GRE pipe per month considering average diameter of 300 mm. EPP glass reinforced epoxy (GRE) piping system offers complete solution to these and other offshore environment related problems. Even in highly corrosive fluids at various pressures, temperatures, adverse soil and weather conditions (especially in oil exploration, desalination, chemical plants, fire mains, dredging, portable water, etc). GRE pipes are being used for a diverse range of applications, including: petrochemical and refineries – oil field application, crude oil transmission, salt water disposal, fire water and fire protection, sea water transmission, potable water transmission; offshore – cooling water, drainage, sewerage, column piping, fire water and fire protection, potable water; marine – cargo, crude oil slop line and wash line, effluent; fuel handling – fuel depots, jet fuel handling, service condition; industry – chemical processing, corrosive liquid transmission, desalination, fire water and fire protection, steam condensate return, general water service, brine transmission, etc. For details contact: EPP Composites Pvt Ltd Plot No: 2646 Kranti Gate Main Road, GIDC Lodhika Kalawad Road, Metoda, Rajkot, Gujarat 360 021 Tel: 02827-287059, 287060, 287061 , Fax: 91-02827-287063 E-mail: kuwarjoshi@epp.co.in bd@epp.co.in / vaishalijoshi@epp.co.in www.oswindia.com
Disk Pack Couplings The high performance and robust ROBADS disk pack couplings by mayr power transmission are especially suited for operations in extreme environmental conditions at sea. The type approval by the DNV GL confirms the high quality and reliability of the couplings and ensures max possible operating safety on the high seas. The nominal torques stated in the catalogue can be utilised without any limitations using the ROBA-DS disk pack coupling. A reduction of the nominal torque due to misalignment, overall load configuration or balancing requirements is not necessary. The couplings are compact and feature a high performance density and small dimensions – ideal for ship engines, in which only little installation space is available. In case of providers who have to take misalignments and alternating torques into consideration when dimensioning, a larger coupling frequently has to be selected for the same nominal torque and also the same speed. The ROBA-DS disk pack couplings transmit torques up to the nominal torque absolutely backlash-free and with a consistently high torsional rigidity. The shaft misalignments stated can be utilised to 100 per cent without influencing the transmitted torque. The disk pack couplings compensate radial, axial and angular misalignment of shafts, and as a result protect the bearings against undesired loads, and therefore against unnecessary downtimes and costs. For details contact: National Engg Co (NENCO) J-225, MIDC Bhosari, Pune, Maharashtra 411 026 Tel: 020-27474529, Fax: 91-020-27470229 E-mail: nenco@nenco.org
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 | 48 | June-July 2016
PRODUCTS
Condition Monitoring & Predictive Maintenance
Multi-Gas Monitors
NORD Drivesystems offers drives with advanced condition monitoring capabilities that support predictive maintenance. NORD employs frequency inverters with an integrated PLC to monitor the complete drive system, evaluate sensor data, and assess the system state by means of intelligent algorithms. An industrial gear unit demonstrates the condition monitoring approach based on sensors and dedicated evaluation technology. Vibration and oil sensors provide crucial live data about the wear and tear. Vibration analysis then enables conclusions about the state of the bearings as well as the gearing, and oil analysis can help determine when the lubricant needs changing.
Industrial Scientific offers the Ventis Pro Series multi-gas monitors. The Ventis Pro Series is backed by the industries only guaranteed for life warranty and offers a wide range of sensor options to detect up to five gases. The Ventis Pro4 is compatible with four of the following sensors: LEL/CH4, O2, CO, CO/H2 Low, H2S, SO2, NO2 or HCN making it ideal for industries such as fire service, steel and construction. The Ventis Pro5 detects up to five gases including any covered by the Pro4 in addition to NH3, CO2/hydrocarbon IR, CO2/CH4 IR and CO/H2S. Industries such as oil and gas, petrochemical, power generation, metal and coal mining, gas utilities and refrigeration, which typically need a larger five-gas instrument, can easily transition to the smaller, lighter Ventis Pro5.
For details contact: NORD Drivesystems Pvt Ltd 282/2, 283/2, Village: Mann, Tal: Mulshi Adj Hinjewadi MIDC II, Pune, Maharashtra 411 057 E-mail: jyoti.mishra@nord.com
Both the Ventis Pro4 and Pro5 are equipped with a variety of new safety features that raise the bar on worker safety. iAssign Technology tracks users and sites in real-time using Near Field Communication (NFC) to help safety managers identify and address jobsite gas hazards and improve asset management. A dedicated panic button and man-down alarm help to alert nearby workers when someone is in distress or has lost consciousness.
LPG/Natural Gas 2 Stage Regulators
Acknowledgeable gas alerts let users know when they are in the presence of gas below the low alarm level enabling them to take safety precautions while continuing to work. Alarm action messages provide written instructions during low and high alarm events, helping workers to react appropriately.
nd
Mesura of France, a leading manufacturer of gas regulators, systems and services for regulating and measuring of natural gas, and Nirmal Industrial Controls Pvt Ltd, India’s leader in the field of high pressure regulators, slam shut valves and gas conditioning, pressure regulating and metering stations set up a JV, Mesura Nirmal Gas Controls Pvt Ltd, offers highly accurate, ruggedly constructed, attractively priced and ex-stock delivery of LPG and natural gas regulators. Safety shut-off devices can be supplied in a gas train. Regulators are well-protected against corrosion with consistent powder coating. It has extreme temperature-resistant diaphragms, SS screws and bolts, and ¼” connections for inlet pressure gauge of 1 to 17 Bar/outlet pressure gauge of 30 to 300 mBar, 30 Nm 3/hr of LPG flow, and 1/2” x 1” NPTF end-connection. Flows tested in accordance with UL144. The Cavagna Group’s top-line of LPG regulators for residential, commercial and industrial use is also offered by the JV. It is the 2 nd stage regulator for residential gas banks. Suitable for commercial use in hotels, malls, hospitals, IT parks, educational institutes and ideal for use after 1st stage directly to the inlet of user appliance or in installations with Pressure Governors. It finds application in hot air generators, furnaces, gas engines, burners and boilers, painting, powder coating, glass and ceramic, food, agriculture, automobile and foundry industry. For details contact: Nirmal Industrial Controls Pvt Ltd Samriddhi Bldg, 1 st Floor LBS Marg, Mulund (W), Mumbai 400 080 Tel: 022-67746282, 67746200 E-mail: tawde@nirmalindustries.com / vrushank.shukla@mesuranirmal.com
For details contact: Industrial Scientific Corpn 1 Life Way Pittsburgh, PA 15205-7500, U.S.A. Tel: (412) 788-4353, (412) 788-4353 Fax: (412) 788-8353 E-mail: ekeblusek@indsci.com
Coupler OPW Engineered Systems has added the LYNX coupler to its complete line of terminal solution offerings. Based on OPW Engineered Systems’ existing couplers, LYNX incorporates a U-pin design that enables an operator to disassemble the coupler in a matter of seconds in order to shor ten the ser vice cycle as much as possible. Each LYNX coupler comes with a five -year warranty. OPW Engineered Systems offers a wide range of sealing options. For details contact: Dover India Pvt Ltd – PSG 40 Poonamallee By-pass, Senneerkuppam Chennai 600 056 Tel: 044-26271020, 25271023 E-mail: sales.psgindia@psgdover.com
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PRODUCTS
Density Compensation Module AMETEK Drexelbrook offers density compensation module (DCM) for its Universal IV In-Line Water Cut Monitor (CM). The module automatically compensates for density changes that may occur in the composition of products and reduces the calibration requirements due to those changes. The Universal IV CM is designed for high-accuracy water in oil measurement. The DCM allows the Universal IV CM to maintain its stated accuracy with variations in density up to 10 API, ensuring measurement accuracy from load to load regardless of changes in product composition.
The Universal IV utilizes an electrical measurement (capacitance) and correlates that to water cut (% of oil in water). Those measurements can be affected by changes in density. Density compensation is done to correct for changes in electrical properties that may impact output measurement and is particularly suitable for midstream refinery and oil pipeline operators. Along with the optional DCM, the Universal IV CM features an in-line probe design that allows it to analyze a large representative sample of flowing fluid in real time. Its sensing element extends into the main process line, taking an average of the capacitive property of the fluid over its entire length. The monitor’s onboard electronics then computes the relationship between capacitance change and water cut. The Universal IV CM also offers the industry’s highest pressure and temp capabilities (1,500 PSI and temp up to 450oF) as well as field-proven Cote-Shield technology, which ignores coating build-up on the probe. In addition, a temp-compensation (TC) version is available that measures product temp internally and calculates a true water cut reading at any temp as long as the water is in liquid state (eg, 32 to 212oF at ambient pressure). Applications for the Universal IV CM include automatic well testing (AWT), lease automatic custody transfer (LACT), basic sediment and water (BS&W), separation vessels, pipeline slug detection, truck unloading, pipe protection, dielectric analysis and machinery lube oil monitoring. For details contact: AMETEK Drexelbrook 205 Keith Valley Road, Horsham, PA 19044, U.S.A. Tel: 215-674-1234, 215-293-4185, Fax: 215-674-2731. E-mail: bob.irving@ametek.com
Single-stage Helical Inline Gears
Close-coupled Pumps
NORD Drivesystems has launched a new line of single-stage helical inline gearboxes with a NORDBLOC.1 light alloy case. The gear unit series is particularly suited to pump, agitator, fan and intra-logistics applications. These new gears achieve high torsional rigidity through a robust design that was thoroughly tested, amongst others with abruptly increased pump pressures and shaft vibration. In high-speed applications, these helical inline gearboxes are a more powerful solution than twostage units. Highly precise manufacturing and high-quality materials also ensure the products are light-weight, smooth-running, and exceptionally efficient. The nsd tupH surface treatment is optionally available to make the units highly resistant to corrosion for long-term use in aggressive ambient atmospheres. IEC and NEMA motor mounting options as well as various shaft, bearing and lubrication variants enable versatile bespoke configurations. The new NORDBLOC.1 products will initially be available in five sizes.
KSB offers new monobloc pumps – Etabloc. Pump and motor connected in one compact unit results in compact and space-saving design without sacrificing energy efficiency. Etabloc pumps find applications in industrial as well as construction segment. Pumps are designed to handle clear water, cooling water, swimming pool water, drinking water, spray irrigation, heating and ventilation, condensate, etc. There are 43 different sizes of pumps available for selection. They can deliver heads up to 160 metres with flow up to 640 m3/hr. Motors up to 110 kW can be coupled with the pumps.
For details contact: NORD Drivesystems Pvt Ltd 282/2, 283/2 Village Mann Tal: Mulshi, Adj Hinjewadi MIDC II Pune, Maharashtra 411 057 E-mail: jyoti.mishra@nord.com www.oswindia.com
Stub shaft design feature eliminates the need for coupling alignment. Optimized hydraulic system ensures high efficiency. Great choice of materials and mechanical seal is available making the pump suitable for variety of applications. KSB make IEC Standardized IE2 high-efficiency motors are with IP55 enclosure proves the pump set is robust in construction and safe for life. Back pull out design allows easy maintenance and large seal chamber facilitates easy and faster cooling of mechanical seal. For details contact: KSB Pumps Ltd Mumbai-Pune Road, Pimpri, Pune Maharashtra 411 018 Tel: 020-27101241 E-mail: bipin.kode@ksb.com
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PRODUCTS Instrument for Vapour Pressure Multi-parameter Waterproof Meter
Testing
Hanna Instruments offers HI98194 multi-parameter, waterproof and carriageable meter that monitors most important water quality parameters like pH, mV, ORP, EC, TDS, resistivity, salinity, seawater σ, DO, atmospheric pressure and temperature. This meter has digital probe which directly measure pH, EC, TDS and then meter calculate other parameters. The probe transmits readings digitally to the meter, where data points can be displayed and logged.
AMETEK Grabner Instruments offers a versatile and portable vapour pressure tester - the MINIVAP VP Vision. The analyzer features significant improvements in terms of measurement range that allows one instrument to measure gasoline, jet fuel, crude oil, LPG and solvents (without needing to attach a pressure regulator). The analyzer is certified to work in cold, hot and damp climates and has ability to withstand vibrations and heavy shocks coming from any direction. It is the ideal tester for mobile laboratories, military applications and harsh, demanding environments. The MINIVAP VP Vision is the first vapour pressure tester to demonstrate excellence in engineering and quality. It offers an extended pressure range of 0 to 2,000 kPa. Long-term testing has demonstrated an unmatched repeatability of less than 0.2 kPa. Grabner’s 2D-Correction (273 points) and exact piston positioning guarantee that accurate and precise results are received over the full measuring range. In addition, the MINIVAP VP Vision features Grabner´s Sampling Pro valve the best-in-class, pistonbased design for minimizing cross-contamination between various sample types. The MINIVAP VP Vision uniquely combines ease of use with flexibility. A modern, applike user interface makes it easy to select, start and follow measurements directly on an industry-proven 10” touch screen. Grabner’s Cockpit PC software allows users to consolidate measurement results and statistics from multiple locations at one central lab and to store measurement data at any chosen location via direct Ethernet and LIMS-connection. The software can be accessed through a secure VPN tunnel, allowing true mobile access to instruments from any place at any time.
For details contact: Hanna Equipments (India) Pvt Ltd 3/4/5/6 Aum Sai Bldg, Plot 23 C, Sector 7 Kharghar, Navi Mumbai 410 210 Tel: 022-27746554, 27746555, 27746556, Fax: 91-022-27746557 E-mail: sales@hanna-india.com
MARINE & OFFSHORE GEAR SOLUTIONS
For details contact: Grabner Instruments Messtechnik GmbH Dr Otto Neurathgasse 1, A-1220 Vienna, Austria Tel: +43 1 282 16 27-110, Fax: +43 1 280 73 34 E-mail: sales.grabner-instruments@ametek.at
RACK MONITOR OPW Engineered Systems offers RM140W rack monitor to its complete line of terminal solution offerings. Built for truck or rail loading in petro-chemical applications, the RM140W protects against overfills and continuously monitors the grounding connection, increasing safety at the point of transfer. In addition to being universally compatible, the RM140W meets or exceeds the requirements of multiple organizations as an explosion-proof device. This perfectly aligns with OPW Engineered Systems’ belief of fostering a safe and productive work environment. The RM140W rack monitor replaces the Opti-Therm 8500 Series. For details contact: Dover India Pvt Ltd – PSG 40 Poonamallee By-pass, Senneerkuppam, Chennai 600 056 Tel: 044-26271020, 25271023 E-mail: sales.psgindia@psgdover.com
Feature backlit graphic LCD display up to 12 parameters simultaneously. It is waterproof protected. The HI7698194 probe features a quick connect DIN connector that makes a waterproof connection with the meter. The probe and meter automatically recognize the sensors that are connected. Integrated temp sensor allows for automatic temp compensation of pH, conductivity and dissolved oxygen measurements. The meter features a built-in barometer with user-selectable units for dissolved oxygen pressure compensation. Quick calibration provides a speedy, single point calibration for pH, conductivity and dissolved oxygen.
With its comprehensive product range, Bonfiglioli is a one-stop provider of cutting-edge marine and offshore gear solutions that come with the highest certifications and offer unparalleled reliability for harsh marine environments. The company offers diverse solutions for lifting, pulling and slewing machinery for marine and offshore applications like shipboard cranes, offshore cranes, deck machinery, azimuth thrusters and pipe layers. Products include planetary gearboxes, bevel helical and parallel shaft gearboxes, electric motors and frequency controllers. They have been assessed by major Classification Societies like ABS, DNV, LR and can be delivered with a 3.2 Certification in all major Classes and are classed with full traceability of the load carrying components. Bonfiglioli has also developed a specific range of gearboxes for jacking machinery with rack and pinion design, intended for jack-up drilling rigs, service liftboats, accommodation and windmill installation vessels, For details contact: Chem Seals Engg Pvt Ltd 10 Sidhapura Indl Estate, Gaiwadi Lane, Off S V Road Goregaon (W), Mumbai 400 062 Tel: 022-28712765, 28772286 E-mail: chemseals@chemseals.com
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PROJECT UPDATE
Media Barter with gulfoilandgas.com
Projects Database Petrochemical Plants and ReďŹ neries
Major Projects in the Middle East, Africa and Caspian Sea Project
Country
Value ($)
Status
Sitra Ammonia/Urea Plant Expansion
Bahrain
2,500,000,000
Bidding
Sitra Refinery Expansion Project
Bahrain
9,000,000,000
Bidding
Baiji Oil Refinery
Iraq
Karbala Refinery
Iraq
Lukoil- New Petrochemicals Plant
Iraq
Nassiriyah Refinery Project
Iraq
8,000,000,000
Bidding
AI-Zour New Refinery Project (NRP)
Kuwait
16,000,000,000
Execution
Mina ai-Ahmadi Sulphur Treatment Facilities
Kuwait
100,000,000
Bidding
Duqm Liquid Jetty
Oman
200,000,000
Bidding
Salalah Ammonia Plant
Oman
700,000,000
Bidding
Sohar Refinery Improvement Project (SRIP)
Oman
10,000,000,000
Execution
Halul Island Master Plan
Qatar
Bidding
Qafco Fertilizer Plants Revamp
Qatar
Execution
Ras Laffan Condensate Refinery - Phase 2
Qatar
1,200,000,000
Execution
Farabi Petrochemicals Plant
Saudi Arabia
1,000,000,000
Bidding
Petro Rabigh- Clean Fuels Project
Saudi Arabia
1,000,000,000
Bidding
Petro Rabigh Refining & Petrochemical Complex- Phase 2
Saudi Arabia
8,500,000,000
Execution
Ras Tanura Refinery- Clean Fuels & Aromatics Project
Saudi Arabia
3,000,000,000
Bidding
Expansion of Jebel Ali Port- Terminal 4
UAE
1,600,000,000
Execution
Jebel Ali Refinery Expansion 2
UAE
Ruwais Refinery Expansion (RRE)
UAE
10,000,000,000
Execution
Tacaamol Aromatics Project (TAP)
UAE
10,000,000,000
Bidding
Algeria's Three Green-Field Refinery Projects
Algeria
6,000,000,000
Bidding
Tiaret Oil Refinery
Algeria
6,000,000,000
Execution
Lobito (SonaRef ) Refinery
Angola
8,000,000,000
Execution
Soyo Refinery
Angola
Cameroon Ammonia Urea Fertilizer Plant
Cameroon
Middle East
Execution 6,040,000,000
On Hold Study
Bidding
Africa
www.oswindia.com
Offshore World | 52 | June-July 2016
Study 1,400,000
Study
PROJECT UPDATE Project (continued... )
Country
Value($)
Status
Cameroon Atlantic Refinery
Ethiopia
Execution
Alexandria Petrochemical Complex- Ethydco
Cameroon
Execution
Assiut Refinery Expansion
Egypt
1,500,000,000
Execution
Midor Refinery New Expansion
Egypt
1,400,000,000
Execution
Mostorod Refinery - ERC
Egypt
3,700,000,000
Execution
Tahrir Petrochemicals Complex
Egypt
7,000,000,000
Study
Gabon Ammonia Urea Fertilizer Project
Gabon
1,300,000,000
Execution
Atwereboanda LPG Storage Facility
Ghana
200,000,000
Study
Riaba Petrochemicals Complex
Guinea
Kenya Petroleum Refineries Limited (KPRL) Mombasa Refinery
Kenya
Mellitah Complex
Libya
Mohammedia Refinery Rehabilitation & Expansion - Ia Samir
Morocco
816,000,000
Execution
lbeno Petrochemical Complex
Nigeria
1,500,000,000
Execution
Olokola Dangote Oil Refinery
Nigeria
9,000,000,000
Execution
Coega (Mthombo) Refinery
South Africa
10,000,000,000
FEED
Tanzania Fertiliser Plant
Tanzania
3,000,000,000
Study
Hoima Oil Refinery
Uganda
4,000,000,000
Bidding
Baku Heydar Aliyev (Azerneftyanajag) Refinery Upgrade
Azerbaijan
1,000,000,000
Execution
Oil, Gas Processing & Petrochemical Complex (OGPC) Project
Azerbaijan
7,000,000,000
Execution
Sumgayit Polypropylene Plant
Azerbaijan
373,000,000
Execution
Abadan Second Refinery
Iran
3,000,000,000
Execution
Arya Sasol Petrochemical (Assaluyeh Olefins 9) Complex
Iran
1,300,000,000
Execution
Bu-Aii Sina Petrochemical Complex
Iran
470,000,000
Completed
Damavand Petrochemical Complex
Iran
4,000,000,000
Execution
Fajr-e-Jam (Kangan) Gas Refinery
Iran
llam Gas Refinery
Iran
550,000,000
Completed
Parsian Gas Refinery
Iran
400,000,000
Completed
Persian Gulf Star Gas Condensate Refinery (PGSCR)
Iran
2,600,000,000
Execution
Shahid Tondgouyan (Tehran) Oil Refinery
Iran
50,000,000
Execution
Siraf Refining Park
Iran
3,000,000,000
Execution
Atyrau Refinery Upgrade
Kazakhstan
Kazakhstan Lubricant Plant
Kazakhstan
85,000,000
Study
Pavlodar Refinery
Kazakhstan
697,000,000
Execution
Amur Gas Processing Plant (GPP)
Russia
Execution 17,000,000
Execution Execution
Caspian Region
Far Eastern Petrochemical Company Construction (FEPCO) Projec1 Russia Moscow Refinery Upgrade
Russia
Omsk Refinery Upgrade
Russia
Vostochnaya Neftechemicheskaya (VNHK) Petrochemical Complex
Russia
ZapSib-2 Project
Russia Offshore World | 53 | June-July 2016
Completed
Execution
Execution 5,000,000,000
Study Execution
5,000,000,000
Execution Study
9,500,000,000
Execution www.oswindia.com
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
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.
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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
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 | 54 | June-July 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