Osw feb mar 2017 by Offshore World

VOL.14 | ISSUE 2 | FEBRUARY-MARCH 2017 | MUMBAI | US $ 10 | ` 150

OFFSHORE WORLD

INSIGHT INTO UPSTREAM & DOWNSTREAM HYDROCARBON INDUSTRY

FEBRUARY-MARCH 2017

ADVANCEMENTS IN OIL & GAS INDUSTRY

VOL. 14 ISSUE 2 MUMBAI US $ 10 ` 150

International Exhibition & Conference February 2018 : Mumbai, India

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CONTENTS

INTERVIEW ““Our Investments have Provided a Foundation for Sustainable Long-Term Growth”

VOL. 14 | NO. 2 | FEBRUARY-MARCH 2017 | MUMBAI | US $ 10 | ` 150

-Mr Vipul Shah, COO- Petrochemicals Reliance Industries Ltd

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INTERVIEW

“Our Investments Have Provided a Foundation for Sustainable Long-Term Growth,” Mr. Vipul Shah, COO-Petrochemicals, Reliance Industries Ltd.

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Offshore World | 6 | February-March 2017

A veteran of the Petrochemicals industry, Mr. Vipul Shah joined Reliance in 2015, after spending 25 years in senior positions at global operations of Dow Chemicals, where his last assignment was as President, CEO and Chairman of Dow India. As Chief Operating Officer – Petrochemicals at Reliance, Mr. Shah is responsible for overseeing the business functions of Reliance’s vast Petchem portfolio. The business reported revenues of $ 3.4 billion in Q2 FY16-17 and Earnings Before Depreciation, Interest and Taxes of $ 513 million. Over the last few years, Reliance has invested almost $ 17 billion in new capacities, a significant amount of these in the Petrochemicals business. Mr. Shah shares his outlook for better understanding of the new projects and the way ahead for Reliance’s Petchem business.

INTERVIEW Give us an overview of your new projects and the impact they are likely to have on the future of Reliance’s Petchem businesses? Today, Reliance Industries Ltd (Reliance) is amongst the world’s leading producer of petrochemicals with global scale capacities across polymers, polyester, fibre intermediates, elastomers and aromatics. Integration bet ween refining and downstream petrochemical produc ts is among Reliance’s key competitive advantages. The deep integration within each chain helps Reliance mitigate the impac t of price volatilit y in the global energy and chemical industr y. This integrated play has delivered amongst the best margins globally for over t wo decades. The petrochemicals segment has achieved record EBIT of Rs. 10,221 Crores, representing a 23 per cent year- on-year growth in FY2015-2016, and in turn delivering one of the best per formances in the global petrochemical industr y. We have invested over Rs. 1,10,000 crore ($ 17 billion) in refining and petrochemicals businesses over past five years. As the company is near the fag end of its largest capital expenditure cycle, we are now focusing on ensuring a smooth star t-up and stabilisation of most of the new projec ts. These large investments in integrating refining and petrochemicals businesses will create sustained and significant value for stakeholders in years to come. Broadly speaking these investments will double the capacity of key petrochemicals products. To give you the details, the Refiner y Off Gas Cracker (ROGC) and ethane impor t projec t are on schedule, to be completed by the second half of FY 2016-17. Along with the aromatics chain expansion, these projec ts will propel Reliance to be among the largest petrochemical companies in the world. R eliance is setting up new ROGC with Ethylene capacit y of 1.5 MMTPA along with matching downstream PE and MEG facilities and incremental PP output at Jamnagar. The cracker will use low- cost off gases from R eliance’s refiner y as feedstock to produce Polyethylene and MEG. This will lead manifold increase in value. This not only provides competitive cost advantage but also gives additional feedstock flexibilit y to the petrochemicals business. D ownstream PE capacities enhance polymer business’ profitabilit y and MEG adds to the integrated chain margin for its in-house consumption in polyester business. Since the Cracker is located at Jamnagar which houses t wo large -scale refineries, the quantit y of off- gases which would be fed to the ROGC makes it not only amongst the world’s largest ethylene crackers but also an integrated R efiner y-Petchem model which is unique in the world. Apar t from the economies of scale, by utilising low value refiner y off gases as feed, ROGC would be in the top quar tile in terms ofglobal cost competitiveness across ethylene crackers. www.oswindia.com

Last year, we successfully commissioned 650,000 tonne Polyethylene Terephthalate (PET) plant and a state -of-the -ar t 2.3 million tonne Purified Terephthalic Acid (PTA) plant at Dahej. Reliance’s total PTA capacity has increased to 4.65 Million Metric Tonnes per Annum (MMTPA), with a global capacity share to 4 per cent. The integration of the new PTA plant and PET plant will provide significant logistical advantage to Reliance. These plants are operating at name plate capacity and ser ving both domestic and expor t markets. We are expanding our polyester presence in executing one of the largest PX plants in the world at Jamnagar. The new Paraxylene (PX) plant is mechanically complete and pre -commissioning activities have commenced with production slated to begin in the nex t few weeks. The raw material produced is supplied to downstream Polyester Filament Yarn (PFY) facility at Silvassa, one of the most automated and environment friendly plants globally. The plant star ted production in 2014-15. This integrated play has strengthened our position as one of the global leaders in production of polyester fibre and yarn. In addition, Reliance has also started India’s largest Styrene Butadiene Rubber (SBR) Plant at Hazira with capacity of 150 KTPA. We have also expanded our Poly-Butadiene Rubber (PBR) capacity. This will help in reaffirming our domestic leadership position in the elastomer segment. To sum up, our Chairman Mr. Mukesh Ambani said in his recent speech to the shareholders at the company’s Annual General Meeting, “These investments will position Reliance among the top 10 petrochemical players globally with a por tfolio of produc ts that continue to meet the growing demands of India. The petrochemical business will have a unique earnings model based on integration, top- decile cost positions and annuit y earnings stream. As we complete the current investment programme and for t y years of Reliance’s histor y as a public company, we will have created a solid foundation for continuing growth for many years to come.” How Reliance is handling volatility in petrochemical products prices due to sharp fluctuations in crude oil prices? You need to understand that the key competitive advantage that we have is Reliance’s unique Integration between refining and downstream petrochemical products. The deep integration within each chain helps Reliance mitigate the impact of price volatility in the global energy and chemical industr y. Reliance also has a diversified feedstock slate, with both naphtha and gas based crackers, which helps mitigate risk involved with feedstock sourcing and margin volatility. The other key source of our competitive advantage is our focus on technology leadership, cost efficiencies, responsible operational practices.

Offshore World | 8 | February-March 2017

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INTERVIEW What are your thoughts on the changing dynamics of petrochemicals industry currently; especially given the impact of drop in crude oil prices, recession in the Middle East and new facilities expected to come up in the South East Asia. How is Reliance realigning its business? The fluctuation in the crude price brings in a major element of uncertainty in the business environment for the petrochemical industry. Fall in crude prices does not only impact India but also the global market. While low crude oil prices have put downward pressure on other commodity prices, including polymers, in the long term this could only benefit an oil importing economy like India. Once the price volatility is over, low but stable prices would only give a boost to the demand for polymers and hence would be beneficial for the future growth of our industry as well. For downstream companies in polymer products and applications, capturing the incumbent growth would be the key to using these low prices to their advantages. In the Indian SME context, cash flow cycle, working capital and cash turnaround at customer end is quite important. Low crude and product price scenario allows this I expec t Indian market to show healthy growth in a market scenario of low petrochemical prices. This would benefit our customers in a significant manner. As the benefit of low polymer prices are passed down the chain, there would be more demand for plastic and polyester produc ts. In addition, passed on reduction in prices of transpor t fuels and household gases is likely to place higher disposable income in the hands of consumers for discretionar y spends. This is likely to help catalyse the sales of our downstream product manufacturers too. As for the competitive landscape, it has cer tainly evolved over the years. The customer is now at the epicentre and the focus is primarily on improving ser vice levels across the board. At Reliance, we continue to leverage economies of scale, as evident with our upcoming J3 projec t, in order to provide our customers with the highest qualit y at the most competitive price point. Additionally, our long-standing relationship with customers, ex tensive sales net work and increased focus on R&D – both internal and joint development – with industr y leaders and specialit y producers is keeping us ahead of cur ve. Please share insight on some of the cutting-edge technologies for petrochemicals developed by Reliance at its R&D centres? As a company, Reliance has always laid great emphasis on Research and Development and invested significant resources in developing and www.oswindia.com

refining cutting edge technologies. Though far less talked about then our project execution skills, this aspect has always been a significant contributor to the company’s competitive advantage. As far as the Petchem business is concerned, our state - of-the -ar t laboratories employ more than 400 scientists. Reliance’s effor ts in R&D have helped it to improve efficiencies and strengthen its product por tfolio with unmatched quality. Some of these effor ts listed below. We are developing a proprietar y process to manufacture Chlorinated Polyvinyl Chloride (CPVC) resin. RIL’s CPVC technology undergoes photo-chlorination with visible range radiation as compared to other producer’s processes that use ultra-violet radiation. The benefit is that RIL’s technology eliminates the need to handle hazardous UV radiation and the subsequent disposal of used UV lamps. Reliance has implemented Proprietar y Morphological Catalyst Precursor Technology to produce High Per formance Catalysts for better Operability of polypropylene production and operational reliability. Reliance has implemented High Produc tivit y Self Ex tinguishing Catalyst with per formance enhancing donor (RELCAT 100Y / RELD System) for Polypropylene with improved proper ties such as R affia Grade. This technology helps produce desired balance of microstruc ture and molecular weight charac teristics suitable for high speed processing lines of PP raffia grade. High Melt flow Impact Copolymer Grades with Proprietary (RELCAT 300Y) Catalyst Technology. This Reliance Catalyst Precursor is used to develop catalyst system with good hydrogen response to produce high melt flow impact copolymer grades especially suitable for automobile industries. Reliance has taken major initiatives to develop Nex t Generation Catalysts and Processes for producing high per formance and specialty polyolefin grades such as ultrahigh molecular weight PP and metallocene Polyethylene Resin with IPR. On the whole, Reliance has 140 Patents / applications filed in the area of Polyolefins with granted patents in USA, Europe, India, etc. Apar t from product development and process improvement, one of our key focus – as a company, not just the Petchem business – has been to reduce the impact of our operations on the environment. We have therefore developed and deployed world-class technologies across all sites to reduce fresh water consumption per unit of production by maximising waste water recycling and minimising ex ternal discharge.

Offshore World | 10 | February-March 2017

INTERVIEW Customer Centricity is a core value with Reliance. We have adopted the expression of ‘Chemistr y for Smiles’ on the back of the motto ‘Transforming Life into Quality Life’, to grow jointly with the customers and add value to the intangible emotions of life for the end-consumers. In line with this, our R&D and customer ser vice centres not only work towards improving efficiencies of manufacturing process and products

In the coming year, we intend to expand our prod uc t development focus on a wider array of sec tors including Automobiles, Wire & Cable, and Pharma.

but also help customers to manufacture quality products for their end

all Indian applicants. This is testimony to the success of our R&D

customers and thereby enhancing value and experience throughout

effor ts. Additional proof about the quality of Reliance’s inventions is

the manufacturing chain.

evidenced by the enquiries we have been receiving from domestic and

A recent independent ex ternal sur vey of PCT applications filed by Indian organisations found that Reliance was ranked third amongst

international manufacturers for licensing our technologies. Perhaps a few examples that follow would help explain this better. We have developed one of the greenest eco-friendly fibres in the world, by recycling used PET bottles which are branded as Recron® GreenGold fibres. One range of fibres under this umbrella, Recron® GreenGold EcoD is pre-coloured fibres which reduces usage of water significantly. Our commitment to our customers in the plastic processing industr y in unmatched and is reflected in actions such as new grade introductions

Reliance operates the world’s biggest integrated refining & petrochemicals complex in Jamnagar where two refineries process about 1.4 million barrels per day (bpd) of crude oil. How does this help in giving the company a competitive advantage? One of Reliance’s key competitive advantages is the Integration between refining and downstream petrochemical products. The deep integration within each chain helps Reliance mitigate the impact

targeted at specialty applications, continuous grade improvements,

of price volatility in the global energy and chemical industr y. This

enhancing quality consistency and productivity of grades, regular

integrated play has delivered amongst the best margins globally

interaction with customers for feedback on grade per formance and

for over two decades. It offsets global volatility in oil prices, and a

strengthening of distribution network and reach.

diversified feedstock slate helps mitigates risk.

PRODUCT APPLICATION & RESEARCH CENTER (PARC)

This will be fur ther enhanced once our new ROGC 1.5 MMTPA Ethylene capacity of along with matching downstream PE and MEG facilities and incremental PP output at Jamnagar comes on stream.

R eliance has several state - of-the -ar t facilities spread across the countr y that help us co - create and collaborate with our customers to develop new value -added applications for our enduse segments. The most prominent amongst these are our three facilities at Vadodara - Produc t Application & R esearch Centre (PARC), Plasticulture D evelopment Centre and Elastomer Customer Application centre.

What will be the impact on the Petchem industry, once GST is finally implemented? Apart from GST in your opinion, what are the lacunae that still need to be addressed to create a level playing field for petrochemicals product manufacturers & refineries in India in the domestic market; and building globally competitive industry?

These facilities cater to the technical needs of our large and the growing segments of customers across MSE and SME’s in plastic

The GST is a welcome step for industr y, and the determination of the

processing, agriculture and t yre & non-t yre industr y etc. These

government to implement it at the earliest is commendable. We would

facilities are equipped with the latest processing and testing

also like to see GST being made applicable to the upstream Petroleum

equipment to meaningfully ser vice and suppor t customers on

and some of the products left out of its ambit.

issues related to grade selec tion, produc t development, processing techniques and end produc t per formance etc.

The issue of a level playing field is ver y impor tant to us in light of the Free Trade Agreements signed as well as planned. While our facilities

The PARC at Vadodara is being now expanded from the present 13255 sq. ft. to 33000 sq. ft facility and we will be adding more Processing machines & Laborator y Instruments from a present 60 to 112.

are amongst the most modern and efficient in the world, the higher interest and infrastructure costs necessitate a corresponding offsetting duty in the FTA’s to maintain a level playing field.

Offshore World | 11 | February-March 2017

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INTERVIEW We believe that Petrochemicals industr y is an enabler for other industries and goes into manufacturing of mass consumption goods, hence should be taxed at merit rate.

•

What are your thoughts on the government’s Make in India initiative? How does Reliance plan to leverage upon this oppor tunity?

The other big initiative at Reliance, which we believe will play a big role in ‘Make in India’, is our newest and most exciting business Jio. As our Chairman Mr. Mukesh Ambani said in his recent AGM speech, “The world’s demand for Digital ox ygen, that is data, is growing explosively. Jio’s mission is to meet this exploding need for India, and to take our nation from data shor tage to data abundance. And to enable a Digital Life for a Digital India”

Make in India is a core philosophy that Reliance has inherited from our visionary founder Chairman, Late Mr. Dhirubhai Ambani. Every product we create with the ‘Made in India’ tag is a source of great honour and pride. It is this philosophy that prompted us to start an investment programme of $ 17 billion, a few years ago, when private sector capital investments were drying up in face of global and domestic economic uncertainty. Our petrochemicals business adds value to the refiner y streams and is focused on improving quality of life of millions. Petrochemicals business meets the raw-material needs of over 30,000 small and medium scale units directly. This suppor ts India’s manufacturing growth and generates employment for more than 4.5 million Indians. I n d i a i s f a s t e m e rg i n g a s a n a u t o m o b i l e h u b w i t h re s u l t i n g g ro w t h i n e l a s to m e r s d e m a n d. We h a ve s t re n g t h e n e d o u r e l a s to m e r s por tfolio by commissioning 150,000 tons per annum of SBR c a p a c i t y. Th i s i s o n t o p o f t h e e x p a n s i o n o f t h e P B R c a p a c i t y b y 1 1 5 , 0 0 0 to n n e s p e r a n n u m i n 2 0 1 4 . A l l t h e s e p e t ro c h e m i c a l i n ve s t m e n t s a re g e a re d t o d e l i ve r s u p e r i o r p e r f o r m a n c e i n t h e ye a r s to c o m e b y f o c u s i n g o n c a p i t a l c o s t c o m p e t i t i ve n e s s, c o n t i n u o u s c o s t re d u c t i o n i n i t i a t i ve s a n d o p e r a t i o n a l e xc e l l e n c e.

Styrene Butadiene Rubbers (SBR 1783 and SBR 1723): This product is mainly designed for usage in high per formance tyres which provide improvement in wet traction/ rolling resistance.

“A Digital India - where the Digital Life of no Indian is ever threatened by scarcity, poor quality or unaffordability of data. Where access to information knows no barriers. Where quality education reaches the most inaccessible corners of the countr y driven by digital learning. Where quality healthcare percolates right up to the remotest regions powered by e -Healthcare. Where farmers are empowered with realtime Information to be connected with global markets. Where mobile and e -banking ensures financial Inclusion. Where connected Indians drive innovation and the world looks to India for the nex t big idea.” What are the future plans of the company in India and globally? As I mentioned earlier, we are just approaching the end of the largest ever investment cycle not only in the histor y of Reliance but the largest such investment cycle ever under taken by an Indian corporate. The time is to now stabilise all the projects, consolidate the enhancement in stakeholder value that will accrue from these projects, before going back to the drawing board.

We believe that these will strengthen the Government’s Make in India initiative as each of our petrochemical ventures provides raw material to tens of thousands of downstream processors that provide livelihoods to millions of Indians. As part of Make in India initiative and for driving customer value, new products have been developed and are in process of getting commercialised. Some of these are: •

Cobalt based PBR Cisamer 1220 H: The product has less gel content and is manufactured at Vadodara Manufacturing Division for high-impact polystyrene application.

•

Neodymium Based PBR Cisamer 700: This product is manufactured for the first time in India at Hazira Manufacturing Division and is specially being targeted for low rolling resistance and procured tread rubbers with abrasion resistance.

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Offshore World | 12 | February-March 2017

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FEATURES

Case Studies on Minimum Facilities Platforms (MFPs) with Optimized Process Facilities The difficult market conditions and continuous pressure to lower the project cost has increased the necessity to streamline design processes for platforms and employ lean engineering techniques. There are few case studies which has proven that Minimum Facility Platforms (MFPs) can be built at relatively lower cost and designed to suit specific fabrication and installation requirements. As a result, the popularity of MFPs has grown and has heralded a new wave of flexible design solutions for a range of applications and water depths [1] . With the recent market drive for unlocking the potential marginal fields, unconventional and innovative approach from the operators deems a necessity. The marginal reserves represent in total a potential prospect in comparison with developed oil and gas reserves, making the development of these fields a strategically important. This paper discusses recent case studies which can be adopted to optimize overall process design of MFPs via redefining the facilities requirement, use of standard vendor packages and new technologies. The case studies include a Minimum Facility Platform developed by Petroleum Thailand Exploration and Production (PTTEP) which has helped in reduced the CAPEX, a Minimum Facility Platform built by Wintershall in just nine months and possibly the smallest topside known, an innovative solution by Chevron which helped them unlock a huge potential and Wellhead compression solutions adopted by ENI as an alternative to gas lift.

Case Study 1 â&#x20AC;&#x201C; Custom Designed MFP by Petroleum Thailand Exploration and Production (PTTEP) [2] PTTEP is developing a customized Minimum Facility Platform (MFP) to access small amounts of reserves. Located in the Arthit field in the Gulf of Thailand, these reserves

cannot be commercially developed with a Conventional Wellhead Platform (CWP). Scheduled to start up in 2017, they opted for a MFP which will have a smaller size and a lower construction cost. Located approximately at 150 miles northeast of the southeast Thai coast, Arthit sits in a relatively shallow water depth of 262.5 feet. Figure 1 shows the schematic of MFP installed by PTTEP.

Figure 1. Schematic of Facilities of MFP by PTTEP www.oswindia.com

Offshore World | 14 | February-March 2017

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solution providers, end users, industry trackers, decision and policy makers, and the media. In an advanced automation and informationdriven world, terms such as Industrial Internet of Things (IIoT), Smart Manufacturing, Industrie 4.0, Digitalization, and Connected Enterprise, are clearly moving past the hype stage to the point where real solutions are emerging backed by strong associated business cases. This is the new age of innovation. TO REGISTER: Space Is Limited! Call India +91-80-2554-7114 or USA +1-781-471-1000, Register on-line at www.arcweb.com/events/arc-industry-forum-india/, or e-mail ramang@arcweb.com.

V ISION , E XPERIENCE , A NSWERS

FOR I NDUSTRY

ENTERPRISE AND PLANT ASSET MANAGEMENT SUPPLY CHAIN MANAGEMENT INCLUDING SERVICE LIFECYCLE MANAGEMENT CYBERSECURITY AND SAFETY

FEATURES The following are featured as new characteristics of the PTTEP’s MFP design [3]:  Reduced number of wellhead slots from 16 to 9-15  Commingled flow lines to reduce the number of actuated on-off valves  Combined and integrated functions of test separator to booster compressor package  Use of 100% solar power with battery backup and removal of Thermal Electric Generator (TEG)  Reduced export pipeline size from 12”/16” to 10”/12”  Reduction of overall deck area by 20%, resulting in wellhead platform structural weight reduction  Optimized material selection and corrosion inhibitor system  Optimized equipment specification to align with manufacturer’s standard  Removal of closed drain system, drainage to be handled by export gas pressurization Tables 1 and 2 shows the extent of cost reduction achieved by PTTEP. Cost Reduction in MFP (%) Wellhead Platform

23.2

Pipeline (10 km)

28.4

Table 1. Cost Reduction in MFP (from CWP) [4] Description

Cost reduction (%)

Removal of receiving facilities

3.7

New flow line-configuration and 3.4 combining manifolds Transportation optimization plan

2.8

10% Structure weight reduction

1.7



Case Study 3- Innovative Mobile Offshore Gas Lift System by Chevron [7,8] In July 2009, Chevron successfully field tested a mobile offshore gas lift system, a novel concept combining two production enhancement methods for oil wells which enabled the unlocking of vast oil resources from offshore reser voirs in Benchamas Field, Gulf of Thailand (GoT). The innovative system, named the Well Unloading Unit and Compressor (WUUC), optimizes oil production by allowing wells to be subjected to ve r y l o w b a c k p re s s u re a t s u r f a c e w h i l e a l s o b e i n g g a s l i f te d simultaneously using normally vented hydrocarbon gas. The system incorporates a Three -Phase Separator, surge tank and a Three -stage reciprocating compressor. The separated liquid is expor ted and the gas is compressed and used for gas lift. Field testing of WUUC was star ted in July 2009 on the ‘REX’ platform in Benchamas Field, GoT. The reported advantages of this WUUC that can be employed in MFPs are:



Change power supply to full solar 1.2 system with 15% load reduction



1.0



Pig launcher size reduction (6” to 10”) 0.6 with mobile concept



Miscellaneous optimizations

Short time needed for construction and the simple installation. CAPEX is less than half of a conventional satellite platform.

Figure 2 shows the L6-B MFP installed offshore.



Integrated gas boosting, well testing 1.5 and well unloading separator

Relocatable platform’s crane



Gas lift started in four shut-in wells and increased production by 2000 Barrels of Oil per Day (BOPD) 97% reliability over 2.5 years of operation and added 900,000 Stock tank Barrels (StB) of incremental oil Prevented release of 1.5 Billion Standard Cubic Feet (BSCF) of greenhouse gases Mobility - low pay-as-you go business model can be deployed for multiple fields Modular and can be rigged up or down in a single Twelve-hour shift offshore, using standard platform cranes Reduced footprint

2.1

Table 2: Summary of Major Changes and Cost Reduction for MFPs [4] Case Study 2- Smallest Topside by Wintershall [5,6] The unmanned mini- platform L6-B has started to produce natural gas off the Dutch North Sea coast. This Minimum Facility platform was built in just nine months and brought to its offshore location in June 2014. Since the field was in military zone, the installation needs to be as small as possible, and may well be the smallest topside known.

C a s e S t u d y 4 - We l l h e a d C o m p r e s s i o n a s a n Alternative to Artificial lift [11] ENI uses Wellhead compression method which functions as an ar tificial lift alternative [9,10]. When a well reaches the liquid load up range, unloading fluids results in reduced producing Bottom Hole Pressure (BHP) and thus increases the production rate. The wellhead compressor lowers the well’s Flowing Tubing Pressure (FTP), increases velocity and allows liquids to be unloaded from the

 

The advantages of this type of MFPs are: They can be deployed in shallow waters and can economically produce from very small natural gas fields.

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well. As the liquids are unloaded, the hydrostatic head in the tubing is reduced, substantially decreasing the producing Bottom Hole Pressure (BHP) resulting in increased production.

Offshore World | 16 | February-March 2017

FEATURES

Figure 2. Wintershall L6-B Platform Installed Offshore In contrast to Wellhead compression, centralized compression does not allow the operator to have the advantage of lowering FTP as it has to be selectively employed in individual well. So, simply lowering the pressure centrally with additional compression can waste horsepower and fuel gas because all wells in the system are included. In addition, centralized compression is hydraulically inferior to wellhead compression because of higher pressure drop at lower pressures in the gathering system. In August of 2014, ENI, installed the first offshore forty-six (46) HP wellhead compressor on liquid loaded gas wells in Adriatic Sea (Italy). The wells selected were either shut-in prior to installation or being produced by intermittent flow [11]. The wells are now producing above the critical flow rate with steady gas and liquids production. The technology of Wellhead Compression increased the capacity of entrainment of liquids and restored the production. The heart of the compressor units used was the Gas Jack Compressor: An integral patented system with a 7500 cc engine, eight cylinders in â&#x20AC;&#x2DC;Vâ&#x20AC;&#x2122;, four used for the Compressor and the remaining four used for power of generation (46 HP). It is easily transportable and can be positioned even in small areas [11]. Conclusion It is evident from the above case studies that the Minimum Facilities can be a cost effective solution for marginal assets. Conventional platforms are stripped back to the bare necessities (Minimum facility platforms) using only simple but robust technologies. Typically, MFPs are unmanned with the exception of maintenance visits. This approach significantly reduces capital expenditure, operating costs and personnel risk exposure. However, the challenges associated with the marginal fields in specific has to be studied further with respect to the techno-commercial factors like field development options, reservoir characteristics and field life.

The unconventional options for field development to be accessed along with the economics during the conceptual stage. In 2016, Government of India launched bid for Discovered Small Fields, i.e., Sixty-nine (69) hydrocarbon discoveries made by National Oil Companies ONGC and OIL which could not be monetized for many years due to various reasons such as isolated locations, small size of the reserves, high development costs, technological constraints, fiscal regime, etc., [12]. With reference to the above case studies the Minimum Facilities Platform with customized unconventional approach can be a viable solution. References 1.

Nicholson, G., & Helle, Y. (2013, March 10). Modular Design for Low Cost Minimum Facilities Platforms. Society of Petroleum Engineers. doi:10.2118/164325-MS

Designing Efficient Facilities in Challenging Locations, Stephen Whitefeld, Oil and Gas Facilities Staff Writer

Chanwith, B., Pheerasak, P., Thitinun, S., Natthawadi, L., Tanadcha, T., Taweepong, M., Saran, U. (2015, September 28). Minimum Facility Platform for Sub-Commercial Reservoirs in the Gulf of Thailand. Society of Petroleum Engineers. doi:10.2118/174740-MS)

SPE Thailand Annual E&P Award 2014

http://w w w.sptoffshore.com/en/track-record1/detail/wintershall-l6-bminimum-facility-platform

http://www.volker-stevin.com/en/projects/detail/wintershall-l6-b-minimumfacility-platform

http://exprogroup.com/media/74940/OTC-23079-MS-Abstract.pdf

Offshore World | 17 | February-March 2017

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FEATURES 8.

Rexilius, J. P., Wamanon, T., & Sahni, A. (2012, April 30). Mobile Gas Lift Compressor and Well Unloading System for Enhancing Oil Production and Reserves, While Reducing Greenhouse Gas Emissions in Offshore Environments. VOL.13 | ISSUE 6 | OCTOBER-NOVEMBER 2016 | US $ 10 | ` 150

Harms, L. K. (2004, January 1). Installing Low-Cost, Low-Pressure Wellhead

INSIGHT INTO UPSTREAM & DOWNSTREAM HYDROCARBON INDUSTRY

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of Petroleum Engineers. doi:10.2118/90550-MS AUTOMATION ACROSS HYDROCARBON INDUSTRY

13th Anniversary Reﬁnery Special

Mumbai

Long Run: A Follow-Up Case History on Seven Years of Success in Lobo. Society

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VOL. 14 ISSUE 1

Harms, L. K. (2010, January 1). Wellhead Compression on Tight Gas Wells in the

INSIGHT INTO UPSTREAM & DOWNSTREAM HYDROCARBON INDUSTRY

DECEMBER 2016-JANUARY 2017

Compression on Tight Lobo Wilcox Wells in South Texas: A Case History. Society

10.

VOL.14 | ISSUE 1 | DECEMBER 2016- JANUARY 2017 | US $ 10 | ` 150

OFFSHORE WORLD

Offshore Technology Conference. doi:10.4043/23079-MS

of Petroleum Engineers. doi:10.2118/138488-MS Imbo, P. (2015, June 1). First Off-Shore Installation Wellhead Compressor Dewatering System. Offshore Mediterranean Conference. 12.

` 150

11.

International Exhibition & Conference February 2018 : Mumbai, India

Year End Review 2016 – Ministry of Petroleum and Natural Gas by Team EnergyInfraPost (December 20, 2016)

International Exhibition & Conference February 2018 : Mumbai, 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.

Kumaraprasad Ganesan Senior Process Engineer Technip India Ltd Email: kuganesan@technip.com

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. Shirish Sathaye Chief Engineer Technip India Ltd Email: ssathaye@technip.com

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.

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Prakash Bendale General Manager, Process and Technology Technip India Ltd Email: pbendale@technip.com

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Thank you, Regards, Nidhi Agrawal (Sub- Editor) Jasubhai Media Pvt Ltd Tel: +91 22 4037 3636 ( Dir: 40373678) E-mail: nidhi_agrawal@jasubhai.com

Offshore World | 18 | February-March 2017

NEXT ISSUE FOCUS: ADDRESSING THE FUTURE CHALLENGES The oil price collapse has hurt many in the oil and Gas industry. The 2017 issue of Offshore World is themed- “Addressing the NextApril-May Issue Focus future Challenges.” To sustain stability and prosperity, the Oil and Gas The oil price collapse has hurt many in the oil and Gas industry. The April-May 2017 issue of Offshore World is Industry players have to overcome essentially thethe following challengesthemed“Addressing the future Challenges.” To sustain stability and prosperity, Oil and Gas Industry players have to overcome essentially the following challenges-

•

The mix of crude is becoming • marginal field development heavier andis becoming more sour  The mix of crude heavier and more sour • Environment regulations are • The industry is building outovercapacity and  The industry is building out and faces in the near future- Threat from renewable sector in becoming stricter, especially faces overcapacity in the near  Environment regulations are becoming stricter, especially the in thedeveloping developing markets markets futureThreat from renewable  Competition with renewable sources of energy • Competition with renewable sector  LNG / FLNG/ FSRU trends sources of energy LNG / field FLNG/ FSRU trends • marginal development

India's Energy Requirement in 2047 Pumps & Tractors (4%) Buildings (12%) Cooking (3%) Industry (56%) Transport (24%)

Telecom (1%) Source: India Energy Security Scenarios (IESS)

For editorial submission in Offshore World, please contact: Nidhi Agrawal- Sub- Editor, Offshore World, Email: nidhi_agrawal@jasubhai.com

Source: India Energy Security Scenarios (IESS)

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Energy Commodity Prices on a Mixed Trend Energy column (price review): January - February 2016

fter initial sceptisism and resultant decline in prices, crude oil recovered on signs of OPEC sticking to its supply cut agreement. As a result, in the January-February 2017 period crude oil prices managed to stay above $50 a barrel. NYMEX natural gas futures remained under pressure throughout the two month declining by a whopping 25% due to warmer than normal temperature in U.S. that reduced the demand of gas for heating.

oil production from OPEC member Libya, which is exempt from the output-cut pact was adding to supply glut, pressurizing the prices. Moreover, the crude market also remained anxious about rising production, namely from U.S. shale-oil producers and Russia, which has a history of not complying with production limits. This concern was also echoed by Mohammed al-Sada, the oil minister of OPEC member Qatar while speaking at the International Petroleum Week in London where he said not all the pieces were falling into place under a landmark agreement for planned cuts of 1.2

Crude Oil price movement (January - February 2017) 55.00 54.00 53.00 52.00 51.00 50.00 49.00

NYMEX WTI crude oil (USD/barrel)

Source: Bloomberg MCX crude oil futures started the month of January at $52.33 a barrel. Oil price rallied with OPEC announcing oil output cut, later uncertainty creeping in on whether OPEC and other major oil producers will stick to their pledge to cut back output, crude oil prices quickly moved down. However oil prices that threaded a range-bounded movement for January and February, and registered its month-high of $55.24 per barrel on January 3. Later amid some volatility, oil prices moved down as a 10th straight weekly rise in the number of active U.S. oil rigs hinted at further rise in U.S. crude production. Worries about an increase in U.S. production (shale production) and doubts that global producers will comply with a sweeping agreement to curb output further pushed oil prices down. Additionally, the U.S. government announced plans to sell up to 8 million barrels of sweet crude oil from its Strategic Petroleum Reserve, thus adding to a global market that’s already oversupplied. As a result, NYMEX crude oil futures registered its month-low of US$ 50.71 on January 10, 2017. Signs of Saudi compliance with oil output cut agreement then helped the recovery in oil prices. Further, indications that other major producers are also cutting back oil output along with strong demand growth in China (November 2016 oil demand hit the second highest level on record i.e. 11.44 million barrels a day) and a weaker dollar aided rise in oil prices. Later, a U.S. government report showed that domestic shaleoil production is expected to climb in February pulled oil prices down. Additionally, though the OPEC members were complying with output cut commitment, rise in www.oswindia.com

million barrels a day in output from 13 members of the Organization of the Petroleum Exporting Countries and 11 oil producers outside of the group. He further added that, compliance by non-OPEC members, which include Russia and Mexico, are at about 50% of what has been promised. Oil futures then continued to trade range-bounded on contrasting factors such as a report from the International Energy Agency confirming a decline in output by OPEC members as against a rise in U.S. crude supplies. Amidst the gloom, the news that Saudi Arabia, OPEC’s de facto leader, had cut its production to under 10 million barrels a day, amounting to a reduction of more than the 486,000-barrel a day it had promised provided a floor to the prices. Moreover, data showing Chinese crude imports, jumping 14% in 2016 from the previous year to 381.01 million metric tons, or roughly 7.65 million barrels a day, also provided a sentimental boost to crude oil prices. Overall oil prices traded with a downward tilt on consistent weekly increase in U.S. crude inventories as well as on signs that U.S. production is set to grow that would potentially offsets efforts by other major crude producers to ease global supplies. However, the International Energy Agency (IEA) lifting its forecast for global-oil demand and estimating strong compliance of OPEC’s pledge to cut output lifted oil prices in the later part of February. Further evidences that OPEC oil producers are committed in fulfilling their pledge to cut output supported IEA’s estimation. As a result the NYMEX crude oil prices edged up to close at $54.01 a barrel on February 28, 2017. During the two month period the crude oil prices were up by 0.5%.

Offshore World | 20 | February-March 2017

FEATURES 4.60

4.00

2.80

Natural Gas price movement (January - February 2017)

4.00

2.50

(Authors are Managers with Multi Commodity Exchange of India Ltd., Mumbai. Views expressed here are personal.)

3.60 3.20 2.80 2.40

Niteen M Jain, Manager, Department of Research & Planning Multi Commodity Exchange of India Ltd E-mail: niteen.jain@mcxindia.com

Source: Bloomberg

NYMEX Natural gas (USD/mmBtu)

2.00

Source: Bloomberg

The other major energy commodity, NYMEX natural gas futures prices declined 25.5 per cent in January-February, with a close at US$ 2.77 per mmBtu. Natural gas futures prices dropped during January-February 2017, the period under review, as forecasts for milder winter weather in the U.S. signaled weaker demand for gas, which is used is as a heating fuel. Temperatures were expected to average to above normal across most of the northern U.S., according to Commodity Weather Group LLC. Moreover, natural gas futures prices also dropped on less than expected decline in U.S. gas inventory levels.

Nazir Ahmed Moulvi, Manager, Department of Research & Planning Multi Commodity Exchange of India Ltd E-mail: nazir.moulvi@mcxindia.com

FORM IV Statement about ownership and other particulars about newspaper OFFSHORE WORLD to be published in the first issue every year after the last day of February 1. Place of Publication

Mumbai

2. Periodicity of its Publication

BI MONTHLY

3. Printer’s Name Nationality 1[(a) Whether a citizen of India? (b)If foreigner, the country of origin] Address

HEMANT K SHETTY INDIAN YES NOT APPLICABLE 406-D, Karachi Citizens CHS, Juhu-Versova Link Road Andheri (West), Mumbai 400 053.

4. Publisher’s Name Nationality 1[(a) Whether a citizen of India? (b)If a foreigner, the country of origin] Address

HEMANT K SHETTY INDIAN YES NOT APPLICABLE 406-D, Karachi Citizens CHS, Juhu-Versova Link Road Andheri (West), Mumbai 400 053.

5. Editor’s Name Nationality 1[(a) Whether a citizen of India? (b)If a foreigner, the country of origin] Address

MITTRAVINDA RANJAN INDIAN YES NOT APPLICABLE 3RD FLOOR, TAJ BLDG., D N ROAD, FORT, MUMBAI 400 001

6. Names and Addresses of individuals who own the newspaper and partners or shareholders holding more than one per cent of the total capital

JASUBHAI MEDIA PVT LTD., 26, MAKER CHAMBERS VI, NARIMAN POINT, MUMBAI 400 021 Maulik Jasubhai Shah, Maulik Business Services Pvt. Ltd, (1100, Shanudeep, 10, Altamount Road, Mumbai 400 026), Jasubhai Business Services P Ltd., (26, Maker Chamber VI, Nariman Point, Mumbai 400 021

I Hemant K Shetty, hereby declare that the particulars given above are true to the best of my knowledge and belief. Date: 24 th February 2017

Signature of Publisher Offshore World | 21 | February-March 2017

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The Future of Oil & Gas Production Wi t h t h e i n c re a s ing a ge of produc ing fiel ds, enhancing or sustaining the produc tion l evel s has b e e n a m a j o r co n ce r n for the ups tre a m oil a nd gas industr y. I nvesting heavil y on dril l ing new wel l s and e nhanci ng p ro d u c t i o n o f the exis ting we lls have b ecome a common prac tice around the worl d. D evel o pi ng s u r f ace f a c i l i t i e s for s upply ing the ex tra c te d oil and gas to consumers fur ther invol ves huge c apital expe nd i t u re. Wi t h d e s i re s to be com e s e lf-s uf f ic ie nt in Energy, countries are now seeking technol ogic al i nnovat i o ns w h i c h c a n h e lp the m to ex tra c t e ve n the minusc ul e amount of reser ve efficientl y. I n fol l ow ing parag rap hs, t h i s a r t i c l e w ill prov ide a brie f ide a a bout few such technol ogies w hich are expec ted to chang e t he f u t u re of O i l & G a s Indus tr y s ignif ic a ntly. Horizontal Drilling Shale gas revolution started in United States somewhere between years 2000 to 2010 when the domestic gas production of United States rose sharply. The estimates of unproven gas reserves and production of natural gas rose significantly. The increased supply of natural gas not only impacted the US market but also the global market. The oversupply of Liquefied Natural Gas resulted in downward pressure of natural gas prices. Such dynamic shift in the natural gas market was a result of advancement in the drilling technology.

Under the traditional methods of oil and gas extraction, the hydrocarbons are extracted from difficult to predict and isolated oil & gas reservoirs (1). These reservoirs are present several feet under the ground and are contained in thick impermeable membrane of rocks which prevents the hydrocarbons from reaching to the surface. Such reservoirs are known as conventional sources of hydrocarbons and are exploited with vertical drilling. Post drilling, the oil and gas flow out from the well under the natural pressure. In due course of time, as the pressure of the wells decline, Secondary Recovery (gas injection, water flooding) and Enhanced Oil Recovery (EOR) techniques are used to increase production from the well.

Source: BP Statistics

Figure 1: Natural Gas Prices ($/mmBtu) www.oswindia.com

Offshore World | 22 | February-March 2017

FEATURES

Source: www.cla.auburn.edu Figure 2: The Geology of Conventional and Unconventional Oil & Gas The conventional sources of hydrocarbon extraction, being isolated in nature, required huge investments in terms of seismic surveys and drilling multiple wells. The uncertain nature of the conventional sources of the hydrocarbons made it necessary to look for alternative sources and thus the attention turned to shale oil and gas. Shale oil and gas refers to hydrocarbons entrapped in shale formations several feet below the conventional sources (2) . Being entrapped, the traditional vertical drilling was not sufficient to extract shale hydrocarbons and immediate technology upgradation was required. The extraction of oil and gas from shale formations was made possible with the introduction technologies like horizontal drilling and hydraulic fracturing. The horizontal drilling begins with a vertical drilling process. A vertical well is drilled to reach the shale formations and then hydraulic motors are used for horizontal drilling. The hydraulic motor separates the drill bit from the drill pipe and allows independent rotation of drill bit. The drill bit is then maneuvered to drill horizontally into the shale formation for several feet. The horizontal drilling can be done in multiple directions in a 360 degree span to drill multiple wells from one drilling pad. Post drilling and cementing of the well, explosives are used to create fractures in the shale formation from which hydrocarbons will flow out. Water accompanied with sand or proppants is pumped into the well at

high pressure to enhance the fractures. The proppants get trapped in the fracture and prevent it from collapsing. The water is then pumped out providing way for the hydrocarbons to flow out. Although horizontal drilling and hydro fracturing is expensive compared to traditional drilling, it provides the freedom to drill multiple wells from a single well pad. This helps to increase production from the well and recover cost. Further, the continuous nature of shale formation provides a continuous supply of hydrocarbons as compared to conventional sources. As per U.S. Energy Information Administration (EIA) the technically recoverable unproved reserve of shale oil and shale gas around the world amounts to 418.9 billion barrels and 7,576.6 TCF. The advancements in the drilling technology has thus become a boon which will help to cater to the demands of the future. Enhanced Oil Recovery Although the technological advancements in drilling has revolutionized the exploration activities, particularly in United States, extracting the available reserves to the maximum possible extent is another challenge that is faced by the upstream companies around the world. Only 10-15 % of the hydrocarbons can be extracted from a conventional well without any ex ternal stimulus. With the increasing life of the reservoir, the pressure of the well reduces and it becomes difficult to

Offshore World | 23 | February-March 2017

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Source: www.uconn.edu Figure 3: Extraction of Oil & Gas from Shale Formations further extract hydrocarbons from the well. Secondary recovery is then done to push the trapped hydrocarbons out of reservoir with the help of water or gas. Water or gas is pumped in form one well in the reservoir creating a front which pushes the hydrocarbon towards the exploratory well. This further increases the extraction rate of reservoir to 30 percent. Enhanced Oil Recover y (EOR), also known as ter tiar y recover y, is an advanced and more expensive method of recover y of hydrocarbons. O ve r t h e t i m e s e ve ra l te c h n i q u e s s u c h a s Th e r m a l R e cove r y, G a s Injec tion and Chemical Injec tion have been developed for enhanced recover y of hydrocarbons. In Thermal Recovery, steam is injected into the well to heat the oil and increase its flow ability. Gas injections uses natural gas, nitrogen and carbon dioxide to increase the pressure inside the well and push the oil out of the reservoir. Chemical injection involves the use of polymer and surfactants to increase productivity. Alkali, surfactant, polymer flooding (ASP Flooding) is the most recent chemical injection technology which is expected to increase the recovery rate of reservoirs to up to 80%. While Thermal Recovery and Gas Injection methods are widely used around the world, ASP Flooding is in a nascent stage. Under ASP method, the sur factant, alkali and polymer dissolved in water are pumped into the reservoir in sequence to increase recovery of hydrocarbons. The surfactant reduces the surface tension between oil and www.oswindia.com

water, breaking drops of oil into parts. Alkali changes the electric charge of the rock which helps to reduce surfactant loss. Polymer is then injected to increase the viscosity of the mixture. Water is then used to force the entrapped oil out of the reservoir and is recovered. With the increasing age of the reservoirs around the world, the use of EOR method is expected to grow significantly in future. Although expensive, EOR methods offer promising solutions to meet the increasing energy demand of fossil fuels. Modular and Skid Mounted Construction Modular constructions is another such advancement in the Oil & Gas Industry which is expected to accelerate the production of hydrocarbons significantly in future. Post extraction of emulsion from the well it is subjected to several processes for separation of impurities, moisture, condensates to obtain clean natural gas and crude oil. The separation is an important step so as to supply desired quality of hydrocarbon to the consumers. Surface facilities such as Group Gathering Stations, Gas Collecting Stations, and Refineries etc. are built to process the hydrocarbons and produce the desired products. Most of these facilities are large stick-built facilities constructed onsite to process the extracted hydrocarbons. Such facilities follow a step by step development procedure and are subjected to weather conditions. As a result, stick-built plants are associated with frequent cost overruns and schedule delays.

Offshore World | 24 | February-March 2017

FEATURES

Source: www.indospec.com Figure 4: ASP Flooding method for Enhanced Oil Recovery With the increasing demand and the frequent price fluc tuations of petroleum products in the international markets, the cost cutting and schedule reduction have become critical. Modular construction involves prefabrication of the required unit into modules at the fabrication workshop and assembly at the production site. Fabrication of modular units in workshop is not affected by the weather changes. Further, being modular, the technology provides freedom to build different sections of the plant simultaneously, thus reducing schedule delays. These modules are then transpor ted to the production site for installation and commissioning.

Conclusion The above mentioned three technologies have significantly affected the exploration of the hydrocarbons in the past and even continue to do so at present. The three technologies combined together will change the face of oil & gas industry in future. The technologies will not only help to cut down cost but will also speed up the future exploration activities. With the ever rising demand of hydrocarbons and the growing populations, I believe such innovations are need of the day. References 1.

M o d u l a r te c h n o l o g y i s m o re p ro m i n e nt ly u s e d i n t h e o f f s h o re a s d e v e l o p m e n t o f a n o f f s h o re s t i c k b u i l t p l a n t i s m o re r i s k y a n d e x p e n s i v e . F u r t h e r, t h e t e c h n o l o g y i s u s e d e x t e n s i v e l y i n t h e Middle East region where the fields are located in far flung places. Such locations are associated with harsh weather conditions and unavailabilit y of labors. Modular Technology offers the most feasible solutions to all such issues.

2. 3.

http://www.bp.com/en/global/corporate/energy-economics/statistical-review-ofworld-energy/natural-gas/natural-gas-prices.html http://cla.auburn.edu/ces/energy/explanation-of-categories-and-peak-oil/ http://today.uconn.edu/2011/12/fracking-%E2%80%93-good-news-or-bad-foramerica%E2%80%99s-energy-needs/ http://www.indospec.com/expertise/indospec-chemical-enhanced-oil-recovery/

The only challenge that is faced by modular technology at present is the transpor tation. Transpor tation of different components of module to distant locations demands quality roads and infrastructure which can sustain the huge weight of modules. However, with the increasing pressure on the operators to cut down schedule delays and cost, it is expected that the modular technology will grow rapidly in future. New technologies will be developed not only to overcome transpor tation issues of modules but also to help operators maintain profitability. Offshore World | 25 | February-March 2017

Vishwa Mohan Mishra Consultant, Energy Vertical Feedback Business Consulting Services Pvt. Ltd. Email â&#x20AC;&#x201C; vishwa@feedbackconsulting.com

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FEATURES

Sealing the Unseen: Creating Efficiency through Emission Control

n 22 April 2016 (Ear th Day), 174 countries signed the Paris Agreement focusing on reducing G reenhouse Gas emissions across the world. This again increases the focus on regulator y standards for Fossil Fuel industries like Refineries and Thermal Power Stations which are anyways stringent. Refineries continue to be pushed towards remaining efficient, hazard free, and environmental friendly all against the global outcr y towards renewable source of energy. While emission standards are globally managed by the respective Pollution Control Boards, fur ther controlling Emissions means Refineries need to look at other avenues for complying with these regulations. Fugitive Emission is defined as; any chemical or mixture of chemicals in any physical form which represents an unanticipated or spurious leaks from anywhere on an Industrial Site. It basically refers to all losses (usually volatile) materials from a process plant through evaporation, flaring, spills and unanticipated or spurious leaks. The focus of this ar ticle is primarily on Volatile Organic Compound (VOC). Majority of these volatile materials is not visible to the naked eye and to accurately measure appropriate thermal sensing devices need to be used to “sniff ”, detect and measure the leakage loss.

Usually these losses are calculated by the Process Engineer and taken into consideration during design however a significant amount of losses are caused by leaks in the sealing element of equipment such as  Agitators / Mixers  Compressors  Flanges  Pumps  Tank Lids  Valves In a study in Netherlands, 72% of Emissions from a single Refinery was attributed to leakage losses from Equipments, 18% from flaring, 5% from Combustion, 1% from storage and 4% from process emissions.

To put things in perspective, the United States of America estimates loss of material in excess of 300,000 Tonnes per year. Besides the obvious environmental effects this is a huge loss of valuable material and an important consideration in Plant inefficiency.

Sources of Fugitive Emissions The primar y purpose of a Seal is to contain a fluid and protect the immediate environment from contamination. Hence although losses per

EPA Report on Emission Standard in United States of America in 2008 Sources of VOC Fugitive Emissions: A significant por tion of Fugitive Emissions can be losses from unsealed sources like storage tanks, open- ended lines, pressure relief valves, vents, flares, blow-down systems, spills and evaporation from water treatment facilities. www.oswindia.com

piece of equipment might be deemed small there are usually so many items of equipment in a Refinery that the total loss via Fugitive Emission is very significant. For e.g. In a refinery for every pump there are usually 32 Valves, 135 Flanges, 1 Safety Valve and 1.5 Open Ended lines. Hence with so many potential sources, leaking losses are high and difficult to ascertain in value without proper help and planning. LDAR (Leak Detection and Repair). Leaking Losses are generally higher from dynamic equipment (compared to static equipment) and from older equipment. Furthermore the majority of actual emission will come from only a small fraction of sources (i.e. less than 1% of valves in gas/ vapour service can account for more than 70% of Fugitive Emission in a refinery.)

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FEATURES

LDAR Program using infrared Cameras. Leaking Losses from equipment can be significantly reduced by use of monitoring and maintenance programs such as LDAR (Leak Detection and Repair). Leaks are detected by monitoring equipment and repairs must be carried out if the leakage rate exceeds cer tain levels. LDAR consists of Volatile Organic Compound (VOC) detecting “sniffers” that help in detecting leaks from flanges, pumps and valves. A correctly implemented LDAR program could reduce Fugitive Emissions by 40% to 60% depending upon the frequency of inspections, the process control and the fluid used. Leak Control Valves Studies have indicated that leaking valve stems are by far the single largest source (60%) of fugitive emissions in a Refinery. Majority of valves are sealed with Gland Packings or various combination of these solutions. When selecting the correct Packing seal, considerations have to be given to the temperature, media and pressure to which the valve seal will be subjected, as well as the level of sealing performance required to comply with the Emission standard. Packing Certification Packings can be tested to qualify them for various types of service, which also helps to assure fugitive emissions requirements are met. ISO 15848 (Parts 1 and 2), API 622, API 624 and VDI 2440, have been in use for evaluation and testing valves and/or stem packings to meet the relevant fugitive emission limits and requirements.

Seal Type

Description

Effectiveness

Die-formed flexible graphite with braided carbon yarn packing end-rings.

Most basic of today’s valve stem sealing solutions. Flat die-formed rings come in various densities. Temperature: 454° C (atmosphere) & 649°C (steam) Pressure: 4,000+ psig

Usually capable of 500 ppm leak performance. This method has been providing adequate emission performance for over 30 years, but may not attain desired low level of emission.

Braided flexible graphite

Wire-reinforced flexible graphite yarn. Same Temperature Same Pressure.

Capable of <500 ppm and <100 ppm performance. One size braid can be used to pack many different sized valves.

Engineered sets

Combination of die-formed Capable of <500 flexible graphite rings of various ppm and <100 ppm geometries and densities and performance. braided yarn or braided flexible graphite yarn packings. Same Temperature Pressure: 10,000+ psig

Advanced technology spool packings

Allow on-site creation of ultra-low-emission packing sets using different types of braided flexible graphite in combination.

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Qualification testing indicates average leakage of as low as 50 ppm.

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FEATURES

Different types of Gland Packings used in Valves. Test Procedure

ISO 15848

API 622

Media

Helium or methane

Methane

Sensing method

Stem seal: Vacuum: Helium Flush: Helium or methane

Modified EPA Method 21 with fixed probe

90 psig

600 psig

Pressure

High temperature 200°C and 400°C

260°C

Thermal cycles

Actuation

≤ 2,500 cycles (on-off valves) ≤ 100,000 cycles (control valves)

1,500 cycles

Pass/fail

Class A: ≤ 10–6 cm3/s/m of stem diameter Class B: ≤ 10–4 cm3/s/m Class C: ≤ 10–2 cm3/s/m

Agreement of manufacturer and end user

Adjustments

Limited number and frequency

Limited

Testing of Valve Packing for Fugitive Emission (Image courtesy FSA) Refineries and petrochemical processors such as Chevron and Shell have established their own criteria for qualifying stem seals. These standards specify temperature, thermal c ycling, test media, number of ac tuations, allowable adjustments to maintain the seal during testing and emissions-measuring methods. The Shell specifications for fugitive emissions testing are covered in MESC SPE77-300 for prototype qualification testing and SPE77-312 for production testing. Flanges Wh i l e i n d i v i d u a l f l a n g e s m i g ht n o t co nt ri b u te to a l a rg e l e a ki n g loss, each Refiner y utilizes so many flange joints that overall they contribute heavily to Emission loss. There can be enforcement of a combination of preventive measures to reduce these Emissions such as:  Regular Maintenance or Controlled Tightening of the Flange an  Selec ting the R ight selec tion of the Gasket.

the packing material independent of the valve. In addition to fugitive

In India, there is a still a common usage of Compressed Asbestos Fiber (CAF) G asketing material or Spiral Wound G askets with CAF Fi l l e r d u e to t h e i r e co n o m i ca l n at u re. C A F i s ex t re m e ly p o o r f o r Fu g i t i v e E m i s s i o n s a n d s e l e c t i n g a p p l i c a t i o n s p e c i f i c c e r t i f i e d

emissions, API 622 also assesses the corrosion effect the packing has on

nonAsbestos G asketing S olution can itself reduce Fugitive Emission

the valve stem material and tests for a number of physical attributes,

b y 4 0 0 % . Th e n o n A s b e s t o s G a s ke t i n g t e c h n o l o g y i n s o f t g a s ke t

including high-temperature oxidation resistance.

material combined with Flexible G raphite Sheets and K AMMProfile

The fundamental difference, bet ween ISO 15848-1 and API 622 is that the ISO standard qualifies the seal in the valve, while API tests

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FEATURES

ESA Best Available Technique Report on Leakage Rates

Comparison of Seal cost in the overall Cost Centre in a Refinery

e n s u re s t h a t A s b e s t o s b a s e d S e a l s a re b e i n g p h a s e d o u t d u e to ineffec tiveness w hen dealing with Emission loss. Gasket Cer tification While selecting the right Gasket, ensuring compliance with cer tification is of primarily impor tance. For Gasketing material the primarily focus should be on TA-LUFT & VDI 2440 cer tification and approval.

changing from non-cer tified to correct cer tified solutions might seem expensive the ac tual unit cost is completely over whelmed by the savings in labour costs & plant downtime itself. Controlling Fugitive Emissions with the proper cer tified Sealing Solutions will mean greater compliance to LDAR and result in an overall Plant Efficienc y with increased production.

Note, TA-Luft only gives guidelines for compliance with permissible leakage limits and refers to other regulations for specific situations to measure and certify static and dynamic leakage values. Specific leakage rate limits for these seals are stated in VDI 2440. VDI 2440 utilizes Helium for testing with values of 10-4 mbar*l/(s*m) at temperatures < 250°C (482°F) and 10-2 mbar*l /(s*m) at temperatures > 250°C. These tests are able to determine the efficiency of the Gasket (Spiral or Soft) for fugitive Emission and can ensure ease of compliance with Gasket Material Selection. The Cost Effective Wh i l e t h e l o s s o f va l u a b l e m ate r i a l i s a n o b v i o u s a d va nt a g e f o r controlling Fugitive Emissions there are hidden advantages too such a s M ate ri a l Co s t, La b o u r Co s t, Wa s te d En e rg y, P l a nt i n e f f i c i e n c y, Environment Cleanup or Environmental Fines. In most cases, the cost of the actual sealing technology is negligible when compared to the investment made in the plant as a whole. While, Offshore World | 29 | February-March 2017

Darshan Parekh Technical Director PILOT Gaskets And Engineers Email: Darshan.Parekh@pilotgaskets.com

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MARKETING INITIATIVE

PILOT Gaskets- Make India Asbestos Free PILOT Gaskets is India’s leading solution provider for 100% AsbestosFREE:  Gaskets  Gland Packings  Insulation  Millboard  Welding Blanket  Brake Liners. We represent Manufacturers from Europe, USA & India that specialize in Environmental Safe products and focus primarily on Fugitive Emissions, Contamination Free Sealing Solutions, and 100% AsbestosFREE. Established in 1983 as the Export arm of Supreme Mill Stores, under the leadership of Mr. Amul Jagjivandas Parekh we have expanded our customer base from Chile, Hongkong, Middle East, Sri Lanka and Nigeria. Domestically we cater to nearly all major Industrial Segments across Maritime, Iron & Steel, Defense, Nuclear, Energy, Chemicals and Oil & Gas within India. From 2010, we pivoted our business to focus on solutions that align with India’s growth story. Our vision is to make India AsbestosFREE by 2020 and we continue to identify and partner with likeminded International organizations that follow our stringent levels of quality, certification and 100% AsbestosFREE Solutions. Our goal is to replace the carcinogenic Asbestos Products being utilized in Industries with economical, practical, certified and performance oriented sealing solutions that are on par with International compliance. Our Gaskets and Seals from DONIT Tesnit D.o.o have European Certification such as EN, DIN, WRAS, TA-LUFT, NSAF, ANSI. We specifically manufacture and offer API 607 Certified Gaskets, API 622, API 624 for Valve Packing, IS 16752 for Pump Packing, and ISO 11612 for Fire Safety.

We are also diversifying into a Nanotechnogy based Hydrophobic coatings that is a Universal Corrosion Prevention and can be used across all surfaces including Steel, Iron, Wood, Cement and Ceramic. Trials runs are being conducted by the Ministry of Defence. Our Technical Advisors and Relationship Managers coordinate with your Factory Maintenance Team with a constant goal to reduce production downtime, leakages, fugitive emissions, carbon footprint and offering certified 100% AsbestosFREE Solutions ensuring there is a stringent compliance and quality control by your Maintenance Team. We pride ourselves in our technical advice and half a century experience in sealing and Gaskets. Help us in making India 100% AsbestosFREE! Pilot Gaskets and Engineers 36 Bhajipala Lane, Next to Bombay Mercantile Bank, Nagdevi, Mumbai 400003 Tel: +91 80808 90022 Email: pilotgaskets@gmail.com Website: www.pilotgaskets.com

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Offshore World | 30 | February-March 2017

Offshore World is an all-encompassing magazine for the hydrocarbon and allied industries. A bi-monthly magazine, launched in December 2003, Offshore World disseminates authen c, cri cal and well-researched informa on on global hydrocarbon industry innova ons. The magazine offers latest and strategic informa on on the upstream and downstream hydrocarbon industry. The endeavour of Offshore World is to become a vehicle in making “Hydrocarbon Vision 2025” a reality in terms of technologies, markets and new direc ons, and to stand as a medium of reflec on of the achievements and aspira ons of Indian hydrocarbon industry. Circula on: 25,370

OSW Target Segments

OSW Reader’s Proﬁle

5% Hydrocarbon Explora on 10% Hydrocarbon Processing 20% Drilling and Equipment Manufacturers 10% Development and Produc on Companies 13% Transporta on and Logis cs Companies 12% Reﬁning and Marke ng Companies 15% Plant, Machinery and Equipment Providers 10% Technology Solu on and Service Providers 5% Safety , Health and Environment

12% 13%

• CEOs & Senior Management of Oil Companies • Petroleum Engineers & Reﬁneries Contractors • Project Managers • Reﬁning & Pipeline Engineers • Corrosion Control Engineers • Opera ons Managers • Technical Managers • Safety Managers & Engineers • Purchase Managers • Marke ng Execu ves • Pollu on Control Specialists • R&D Personnel • Industry Consultants • Engineering & EPC Consultants • Indian & Overseas Industry • Associa ons • Training Ins tutes

15% 10% 30%

10% 5%

20% 5% 10% Hydrocarbon Exploration Hydrocarbon Processing Drilling and Equipment Manufacturers Development and Production Companies Transportation and Logistics Companies

Refining and Marketing Companies Plant, Machinery and Equipment Providers Technology Solution and Service Providers Safety, Health and Environment

OSW Region-wise Presence 53% Western Region [including Mumbai,Gujarat, Pune, etc] 23% Northern Region [including Delhi, UP, etc] 10% Southern Region [including Bangalore, Hyderabad, Chennai, Coimbatore, etc] 9% Eastern Region [including Kolkata, Assam, etc] 5% Interna onal [includes USA, MiddleEast, Russia, Brazil, Iran, China, Germany, Italy, France, etc]

FEATURES

The Ghost in the Machine – Analytics, Automation and the Human Factor Mar tin Ford’s book titled “Rise of the Robots – Technology and the Threat of a Jobless Future” sheds light on an unsettling view of technology and its impac t on the human race. Ford recounts the moment when IBM’s Deep Blue computer defeated world chess champion Garr y Kasparov in 1997. Professor Stephen Hawking fur ther spooked imaginative minds by saying “a rogue AI could be difficult to stop”. Moore’s Law also dic tates that computing power doubles ever y 18 months. In automating knowledge, will we eventually hand over the keys of control to industrial ar tificial intelligence? How will data optimization diminish the role of humans in plants?

The need for innovation

to The Abnormal Situation Management Consortium and the Control of

The process manufacturing industry is at an inflection point. Companies

Major Accidents Hazards (COMAH), while the incidence of major accidents

need to be astute and capitalize on powerful trends impacting this multi-

has reduced, the impact created is much greater now when they actually

billion dollars’ industry.

occur. Thus, companies cannot afford to take safety for granted and should deploy to mitigate such occurrences.

In the developed world, experienced chemical engineers are retiring in droves. However, the replacement pool of new engineers remains

Six smart steps to automate knowledge

stringent, as college students are increasingly drawn to non-technical

In innovating towards a world beyond energy savings, AspenTech

majors. On the other hand, emerging countries, such as China and

advocates asset optimization for process manufac turers to achieve

India, are graduating an impressive number of young but inexperienced

sustained maximum profitability via operational excellence. With smart

engineers. This necessitates the automation of knowledge to ensure that

manufacturing in mind, firms can adopt six steps to automate knowledge.

decades of experience are not lost when experienced engineers exit the industr y. The captured knowledge also helps new engineers ramp up

First, smar t flowsheets help manufac turers capitalize on feedstock

quickly in their work.

oppor tunities by providing visual and intuitive fe edback . As such, m a n u f a c t u re r s g a i n a g i l i t y w i t h t h e a b i l i t y t o m a ke b e t t e r a n d

Another key trend for process manufacturers to grapple with is global

faster decisions during volatile times. This saves time and money

industry volatility. For example, an environment of prolonged low crude oil

in the process.

prices in the past two years has necessitated the deployment of innovation to cope with rapidly fluctuating feedstock prices. Companies should also capitalize on technology to maintain effective environment, health and safety (EH&S) practices. For example, pollution from heavy industries has impacted many parts of the world, including industrialized China. As a result, companies are now more interested in energy management, the use of natural gas and renewables. According www.oswindia.com

S e co n d, ro b u s t d e s i g n o p t i m i z at i o n s o l ve s co m p l e x p ro b l e m s b y enabling all dimensions of optimization to be considered across multiple cases. Factors to be considered include capital, energy, controllability, environmental impact, safety and yields for sustained profitability of the asset. These factors need to be considered against varying feedstock, changing seasons and different operating conditions. Thus, automating knowledge is a safer bet, compared to manual computation.

Offshore World | 32 | February-March 2017

FEATURES Third, it is crucial to connect the lifecycle, as manufacturers can reduce

of repetitive technical decisions will also free up engineers to focus

rework and save time by compressing the FEED stage to achieve a more

on more difficult analyses.

stable design in detailed engineering. Currently, the front end engineering design (FEED) stage is a tangled network of data exchange with team

Mar tin Feldstein, professor of economics at Har vard University, sums it

members dispersed geographically. Data is captured in a disorganized

up, â&#x20AC;&#x153;Rapid technical change is not something new. We have experienced

manner and time is wasted, as the FEED stage only star ts after the

technological change that substitutes machines and computers for

conceptual design is complete. Thus, AspenTech envisions a single,

individual workers for many years. And yet, despite the ups and downs

consistent data model of the asset.

of the business c ycle, the U.S. economy continues to return to full employment.â&#x20AC;?

Four th, the adoption of unified production optimization ensures that models stay consistent and common. This streamlined thinking mitigates

Cer tainly, it is clear that there is no ghost in the machine. Instead,

a complex environment, where multiple organizations across time and

you might find a guardian angel residing in the system, as automation

project scopes necessitate profit maximization. Currently, enterprises

helps humans per form better and ensures that analyses are better

struggle with optimization across organizations, scope and time.

calculated. Indeed, this is more than a necessity in the world of process

Indeed, logical minds have preempted the need to accelerate collaborate

manufacturing today!

workflows and drive asset optimization. Fifth, it is crucial for maintenance optimization to be implemented. This is because while maintenance is completely integrated with operations, it is not always considered during the design phase, as domains between chemical engineering and maintenance tend to work in silos. If we can consider reliabilit y upfront in conceptual design, process engineers will be able to optimize the design for maintenance and reduce total lifec ycle costs. As such, the maintenance plan and strategy is now accelerated. Six th, prescriptive analytics helps transform data into ac tionable decision suppor t. This is crucial, as process engineers spend a lot o f t i m e a s s e m b l i n g d at a f ro m d i f f e re nt s o u rce s to ex t ra c t u s e f u l information, in order to solve problems. Similarly, operators are often overloaded with data, alarms and operational responsibilities. This is because they do not have the tools to take advantage of per formance improvement oppor tunities. With Aspen Asset Analytics, prescriptive

Josh Fredberg E VP, Produc ts & Marketing AspenTech Email: Josh.Fredberg@aspentech.com

a n a l y t i c s i n a s e l f - m a i nt a i n e d m o d e at t h e e nte r p r i s e l e ve l i s a pinnacle goal. The guardian angel in the system Wh i l e i t i s i m p o s s i b l e to e l i m i n ate e x te r n a l c h a l l e n g e s, p ro ce s s m a n u f a c t u re r s c a n r a m p u p o p e r a t i o n a l e x c e l l e n c e t o m i t i g a t e industr y risks. McKinsey concurs that by aggressively standardizing and simplifying processes, companies can reac t to unforeseen events q u i c kly. Th e y a re a l s o i n a b e t te r p o s i t i o n to i m p rove s a f e t y a n d

Rob Howard CVP, Sales Operations & Business Consulting AspenTech Email: rob.howard@aspentech.com

productivity. Besides reducing the risk of human error, the automation Offshore World | 33 | February-March 2017

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NEWS FEATURES

Union Budget 2017: Highlights for the Oil and Gas Sector in India “ Th e Lo c a l O i l & G a s f i r m s l o o ko u t f o r a s s e t s o u t o f t h e c o u n t r y i n o rd e r t o l o o k a f t e r vo l a t i l e c r u d e o i l p r i c e . Th e U n i o n B u d g e t 2 0 1 7 a i m s a t i n t e g r a t i n g t h e i n d i v i d u a l o i l c o m p a n i e s t o m a ke l a rg e r i n ve s t m e n t d e c i s i o n s a n d t a ke g re a t e r r i s k s.”

BUDGET 2017 In order to boost up Oil and Gas sector in India, the Finance Minister Mr Arun Jaitley announced several measures in the Union Budget 2017 -18.



“We see opportunities to strengthen our CPSEs through consolidation, mergers and acquisitions. By these methods, the CPSEs can be integrated across the value chain of an industr y. It will give them capacity to bear higher risks, avail economies of scale, take higher investment decisions and create more value for the stakeholders. Possibilities of such restructuring are visible in the oil and gas sector,” Mr Jaitley said in his Budget speech. The crucial initiatives in the Union Budget 2017 -18 include:  Reduction in the basic customs duty on LNG from 5% to 2.5%. 

Setting up of two more strategic oil reserves at Chandikhole in Odisha and Bikaner in Rajasthan to enhance country’s energy security taking our strategic reserve capacity to 15.33 MMT.

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Foreign companies shall not be liable to tax in India in for the leftover stock of crude oil in case of strategic petroleum reserve. Creation of an integrated public sector ‘oil major’ to integrate the oil sector PSUs across the value chain and to enhance capacity of Oil PSUs to bear higher risks, avail economies of scale, take higher investment decisions and create more value for the stakeholders.

India Halves Import Duty on LNG

Reduction in the basic customs duty on LNG will make LNG more affordable to end users in industrial category such as ceramics, glass, chemicals besides large consumers such as power and fertilizer sectors. The lowering of custom duty on LNG will help the natural gas industry and their user industries like power. This is a credit positive for existing regasification terminal owners such as PLL, GAIL and Shell India, besides new projects being set up. Moreover, it will help gas marketers and CGD companies such as IGL, MGL and Gujarat Gas.

Offshore World | 34 | February-March 2017

NEWS FEATURES Government to Build 2 Crude Oil Storages in Odisha,

Creation of Integrated Public Sector ‘Oil Major’-

Rajasthan

Government Plans Strategic Sale of 3 PSUs, Merger of 4

In a bid to insulate the country from volatility in global oil market, the government will build two more underground crude oil storages in Odisha and Rajasthan.

The government intends to divest 100 per cent equity in Bharat Pumps

Finance Minister Arun Jaitley announced the t wo new facilities at Chandikhol in Odisha and Bikaner in Rajasthan. India has already built underground storages in rock caverns at Visakhapatnam (1.33 million tonnes), Mangalore (1.5 MT) and Padur (2.5 MT). Strategic storages provide a countr y with two-fold advantage. Firstly it ensures utilisation of reserves in times of high oil and gas prices and secondly they can be used in the event of supply disruptions following unforeseen events like a natural disasters or a war like situation.

& Compressors Ltd through strategic sale with transfer of management control. The Cabinet had cleared the strategic sale of the Allahabad-based PSU, which is into manufacturing and supply of heavy-duty pumps, CNG gas cylinders required in petroleum exploration and refineries and the fertilisers and power sectors. The government intends to go in for strategic sale of 99.53 per cent equity and transfer of management control in Bridge & Roof Company, which is under the control of the Ministr y of Heav y Industries. The government also plans to sell the entire 56.43 per cent shareholding of Hindustan Organic Chemicals Ltd (HOCL) in Hindustan Fluorocarbons (HFL) through strategic sale.

The storage at Chandikhol will be an underground rock cavern while the one at Bikaner will be an underground salt caverns. Phase-II storage will have a total capacity of 10 million tonne, which includes 4.4 MT storage capacity at Chandikhol and 5.6 MT at Bikaner. An agreement to this effect was signed between Indian Strategic Petroleum Reser ves Ltd (ISPRL) - the special purpose vehicle building the oil storages, and ADNOC after talks between Prime Minister Narendra Modi and Abu Dhabi’s Crown Prince Sheikh Mohamed bin Zayed al-Nahyan. Under the agreement, India will have first right to use the stored oil in case of an emergency, while ADNOC would use the facility to store oil for trading purposes. ADNOC will stock 0.75 MT or 6 million barrels of oil in one compartment of Mangalore facility. Of this, 0.5 MT will belong to India and it can use it in emergencies. ADNOC will use the facility as a warehouse for trading its oil. India Extends Tax Break on Foreign Firms’ Oil Sales

India is exempting foreign companies from income tax when they sell oil locally at the end of a contrac t for strategic storage with the government, under the 2017-18 budget proposals to boost the oil and gas sec tor.

Besides strategic sale, the government intends to disinvest its entire shareholding in 4 PSUs by way of strategic disinvestment through merger with similarly placed CPSEs. ONGC Possibly will Acquire HPCL in USD 6.6 Billion Deal

Oil and Natural Gas Corporation (ONGC) may acquire India’s third-biggest fuel retailer HPCL in an about Rs 440 billion (USD 6.6 billion) deal as part of the government’s plan to create an integrated oil giant. Following up on Finance Minister Arun Jaitley’s Budget announcement of creating an integrated oil company, India’s biggest oil and gas producer ONGC may buy the government’s entire 51.11 per cent stake in Hindustan Petroleum Corporation Ltd (HPCL). This will have to be followed by an open offer to acquire additional 26 per cent from other shareholders of HPCL. There are only six major companies in the sector - ONGC and Oil India Ltd being the oil producers, Indian Oil Corp (IOC), HPCL and Bharat Petroleum Corp Ltd (BPCL) in refinery business and GAIL in midstream gas transportation business. The rest such as ONGC Videsh, Chennai Petroleum Corp (CPCL), Numaligarh Refinery Ltd and Mangalore Refinery (MRPL) are

Companies are currently exempted from tax on the sale of oil from the strategic petroleum reser ve during the duration of the contrac t. The ex tended tax break would enter into force from the financial year star ting in April. The proposal to allow a carry forward of Minimum Alternative Tax (MAT) for a period of 15 years, up from the current 10 years is also welcomed by industry experts.

already subsidiaries of one of these six PSUs. The merger will help the world’s third-largest oil consumer better compete with global majors in acquiring foreign assets.

-Compiled by Nidhi Agrawal, Sub-Editor, Jasubhai Media Pvt Ltd

Offshore World | 35 | February-March 2017

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FEATURES

BUDGET – 2017 And Petroleum Industry

e t ro l e u m I n d u s t r y i s t h e m o s t a n i m p o r t a nt f a c to r s e c to r to consider in the union budget as maximum tax revenue comes from it and maximum foreign exchange goes outis driven in the impor t of oil. It is controlled by the Govt. prices and taxation is decided so that oil companies can make profit and public pays the price that Govt. decides. The Union Budget 2017-18 has witnessed a There is nothing exiting in that as it happen ever y year with marginal variation. A n i m p o r t a nt n e w s i n t h i s b u d g e t i s m e rg e r o f G o v t. p e t ro l e u m companies into one world class conglomerate with capital value about 20 billion dollars; ninth in the world. Such proposals have been always there ever since the nationalization of petroleum industr y, but were somehow ditched by bureaucrats and company executivesdelayed in their execution. Over the years, the picture has become more complex and solutions are difficult.

holder does not have unitar y right to decide their fate. A protocol is to be followed. The merger as envisaged can bring about large financial benefits as there are parallel activities and marketing expenses which could be eliminated. 



Government’s involvement in the petroleum business may be broadly put in four categories. 



Up Stream Majors – Mainly in Exploration and Oil Production. They are also in refining, petrochemicals, gas production, and pipe lines, such as ONGC, OIL etc. Down Stream Majors – Refining and marketing of Fuels, Gas and Lubricants and Specialties, such as HPCL, BPCL and IOCL. They are also in pipe line transpor t, exploration, petrochemicals etc.

M a r ke t i n g, a d m i n i s t r a t i o n a n d R e s e a rc h & + D e v e l o p m e n t expenditure will go down to 25 to 30 %. Huge assets and real estate will become available to augment financial resources of the new company. There will be larger bargaining power and savings in oil purchase in global market. N e w co m p a ny w i l l h ave l a rg e r re s o u rce s to i nve s t i n g l o b a l operations for future oil supply security. It can make larger investment in Research &Development R + D for the energy security in future, beyond 2050.

There are risks as well; for instance Air India (AI) and Indian Airlines (IA) were t wo profit making companies, former in international and later in domestic sector. There were other minor companies in aviation sec tor like Pawan Hans etc. These were merged into one company which did not turn out profitable. Profit making AI and IA turned sick after such a merger.

Gas Majors – Mainly in impor t, processing and distribution of fuel gases like LPG and Liquefied Natural Gas (LNG /CNG) such as GAIL, PLNGL etc. These are also involved in local gas exploration and production, petrochemicals, pipe lines etc. Smaller entities which came into govt. fold due to historical re a s o n s, m a n u f a c t u r i n g l u b r i c a nt s a n d o t h e r s m a l l to n n a g e produc ts, such as. B almar LawrieB almar Lawrie and Co. Ltd. and Tide Water Oil Co. Ltd. etc. These are also involved in variety of business and trade ac tivities, like, tea, travel fabrication, construction etc.

The larger companies, through their subsidiaries are also involved in local as well as international business independently or in collaboration with private entities, in exploration, oil production, refineries, por t operations etc. in India and abroad. In addition, all companies are listed public limited companies and Govt. even though major share www.oswindia.com

Offshore World | 36 | February-March 2017

Prof. M. C. Dwivedi

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NEWS FEATURES

Selecting Good Technology and Resource Sharing Important for Timely Completion of Projects

he Refining, Petrochemicals & Polymers World Conference 2017 was

gas, constituting more than 36-37% of the total energy mix. In the last

held on February 16, 2017 in Mumbai, India. The conference was

couple of years, the growth of oil energy in developed countries is not

themed “India- Emerging Hub for Refining, Petrochemicals, and

more than 1% but the other developing countries especially China and

Polymers.” The inaugural session marked the presence of global leaders

India, are driving the growth of oil and gas. Since the last 15 years China

in the refining and petrochemicals sectors - Mr B. K. Namdeo, Former

turned out to be the major growth driver for the entire oil sector and now

HPCL Director- Refineries, Mr Vipul Shah, COO-Petrochemicals, Reliance

India is in the same line.

Industries Ltd, Mr P. D. Samudra, Managing Direc tor, ThyssenKrupp Industrial Solutions (India) Private Limited, Mr Mar tin Hawkins, COO,

In India, coal is the pre dominant energy source constituting 58.1% in

HPCL-Mittal Energy Limited (HMEL), and Mr Johannes Benigni, CEO,

the energy mix, while oil 29.1% in addition to the renewable energy

JBC Asia.

and other sources of energy. According to the figure of 2014-15 the total increase in the demand is 5.2% and world’s average is 1%. China

Excerpts from Mr B. K. Namdeo’s, Former HPCL Direc tor- Refineries

has also got a hardly growth rate substituted, so now India becoming a

discourse at the Refining, Petrochemicals & Polymers World Conference

total for its own demand as well as it has to go for the world refining

2017-

sectors. The data shows that the market is much higher and is the largest in the world. As per the current scenario if we project into the future by

“We all know that the energy mix is the backbone of all the good

2040, India energy consumption for oil and gas will not be less than 400

economics and it has got its own impact on day to day life of individuals.

million metric ton per annum. At present, our total refining capacity is

Considering the global scenario, current primary energy mix are oil and

approximately 240 mmt. In the next 5-6 years, there isn’t much addition

www.oswindia.com

Offshore World | 38 | February-March 2017

NEWS FEATURES

in the refineries in India except the west coast refineries that is about 60

technology is adding to the projects at the refineries.

million metric tons, which is still on the drying board. Even if we take todayâ&#x20AC;&#x2122;s intake capacity of the refining and the proposed capacity of the

There is a huge potential in the oil and gas sector where large amount of

west coast, then maybe by 2025 we will become a net importer. Today

investment will come in the form of refinery and petrochemical project

we are called as net exporter but within a very short period we are going

and it is the necessity we should have a good project management in

to become a net importer and this is the cause of concern.

place as oil and gas projects are very capital intensive where everyone wants at least 12-15% margins. Another thing is that we are projecting

Any project starting from the grass root, producing the refinery product

the energy requirement. The energy requirement is going to remain the

requires about 8-10 years. If we donâ&#x20AC;&#x2122;t start thinking today, then demand is

same but which energy will lead the basket whether its oil or renewable

going to be doubled. The current scenario is that the refining capacity in the

energy, is also a question mark. So, when we take the projects, number

country is not improving, so we have to think about building new refineries

of uncertainties have to be dealt with, either in form of demands, Euro

so that the refining capacity will be enhanced. The petrochemical sectors,

standards, Carbon Footprint, etc. Therefore, these need to be looked at

in USA the consumption is 90 kg per capita, in China it is 46 kg per capita

much before taking any investment decision in the oil and gas sector.

and the average world consumption of petrochemical is about 35 kg per capita. But in India, it is only 8 kg per capita. So in developing countries

Investment in the Oil & Gas sector is the need of the hour and the need of

much higher growth rate in the consumption of petrochemicals is expected.

the future also but it has to be evaluated very carefully. There are factors apart from the demand and supply and that is the need to select a good

All the petrochemicals feed comes mostly from the refining products

technology. Today the common practice is that, especially in India that

either through the LPG or the NAPTHA so this will fur ther aid to the

people will look at the capital base selection of the technology without

refining capacity that is required. By April 2017 whole country will follow

taking into account the future because of one time capital investment.

Euro IV norms thereafter by April 2020 it has to be Euro VI. The existing

But in the next 25-30 years what could be the operating cost, and the

refinery will have to upgrade their product and new refineries which are

operating efficiency will make a lot of difference. I think many people

coming will have to follow Euro VI compliance, which means substantial

who have invested in the technologies based on the capital factors will

increase in the refinery projects. In addition to this, in lieu of competition,

witness the sole energy and benchmark comparisons. When we select

everybody would try to extract maximum from each barrels of crude oil.

the technology, these factors should be considered so as to maintain

In India, there are still number of refineries where the margin is very

the operating efficiency of the refineries in the nex t 25-30 years. What

high i.e. about 20-25%, this need to be upgraded, and then only these

is going to incur in future is much more impor tant than what is our

refineries can survive in the market. So the upgradation through any other

capital investment today.

Offshore World | 39 | February-March 2017

www.oswindia.com

NEWS FEATURES

Another factor to consider is that we have a very typical way of selecting

associated people. In the oil and gas sector, a number of projects with

the projects- we may just get preliminary feasibility report, we go for the

huge investments are foreseen in the next 5-6 years. The demand and

basic feasibility report based on the some technology implied in some

growth is high and we need to be prepared to meet the challenges by

other places, we take the equipment data cost based on the historic

selecting a good technology for implementing the project and resource

reports. But everything may not necessarily be valid because the selected

sharing for timely completion of projects.”

technology, the cost of the project (that in fact doesn’t comes in the selections), equipment data, etc. might not be in accord with the present

The other sessions during the conference were-

scenario. If the data provided is invalid and since the project investors take decision based on those data then fair chances are that the project



Managing Director, Numaligarh Refineries Ltd

may fail. Also, we overlook the project constructive study which is very important before starting on the project, especially in India where the 

land and environmental situations are variable.

Refining Upgradation and Technology, chaired by- Mr P. Padmanabhan,

Planned Projects by refiners, chaired by- Mr M. Venkatesh, Director Refinery, Mangalore Refinery and Petrochemicals Limited (MRPL)

It would be superficial to think that the pre-investment will go in the project cost from the first day itself. The project may succeed or it may not succeed, so it’s a part of the expenditure process which may give return or which may not give return. While making the cost estimate for the initial investment, factors like land acquisition, environment, detailed engineering, and market evaluation should be considered for the successful implementation of the project.



Petrochemicals and Polymers, chaired by- Mr K. K. Jain, Executive Director (PC-Project), Indian Oil Corporation Ltd (IOCL)

The conference was followed by panel discussion by the stalwar ts of the refining industry on “Opportunities and Challenges in Refining and Petrochemicals in India.”

The EPC is going to cost more than the convention way but there are factors that are considered like risk sharing mechanism, resource sharing, scaling, and machinery which are adding cost to them. Deliberating on these factors, the project should be well executed in time, because the delay in project costs to the company, investors, contractors, and the www.oswindia.com

Offshore World | 40 | February-March 2017

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NEWS

CB&I Wins Alkylation Unit Contract for China Refinery Shaanxi Yanchang Petrochemical Group has awarded CB&I a contract for the license and engineering design of an alkylation unit in Yan’an City, Shaanxi, China.

Statoil Completes Sale of Alberta Oil Sands Ops Statoil has sold its entire oil sands operations in the Canadian province of Alberta to Athabasca Oil Corporation. The divestment includes the producing Leismer demonstration plant and the undeveloped Corner project, along with a number of midstream contracts associated with Leismer’s production. As part of the deal, Statoil has received USD 329 million (CAD 431 million) in cash, plus 100 million common shares in Athabasca representing just below 20 percent of the equity in the company. Up to a further USD 191 million (CAD 250 million) of contingent payments will be paid out over the next four years, depending on production levels and the prevailing oil price, Statoil said.

ONGC to Invest USD 5.1 Billion for Developing Oil Finds Off Andhra Pradesh Coast State-owned Oil and Natural Gas Corp (ONGC) signed a MoU with Andhra Pradesh government for investing USD 5.07 billion in developing oil and gas finds off the state’s coast by 2019-20. ONGC will make investment, bringing to production 10 oil and gas discoveries in the Bay of Bengal block KG-DWN-98/2 (KG-D5), which sits next to Reliance Industries flagging KG-D6 fields. Fi r s t g a s p ro d u c t i o n i s e n v i s a g e d b y J u n e 2 0 1 9 a n d o i l wo u l d s t a r t f l o w i n g f ro m M a rc h 2 0 2 0 . G a s f ro m t h e o f f s h o re f i e l d w i l l b e b ro u g h t v i a s u b - s e a p i p e l i n e t o A n d h r a P r a d e s h b e f o re b e i n g t r a n s p o r te d to e n d u s e r s.

Freedom Oil and Gas Signs Contract for Drilling in Eagle Ford Shale Freedom Oil and Gas Limited has announced it signed a contract with US drilling service company, Patterson-UTI Drilling Company LLC, for the drilling of two wells in the Eagle Ford shale in Texas. The oil and gas business says the two wells will be drilled on Freedom’s newly acquired 8,000 acres, in Dimity County in South Texas. Patterson-UTI Drilling’s rig is currently drilling about 50 miles from Freedom’s acreage. www.oswindia.com

LNG Ltd to Supply US LNG to India Australia-listed Liquefied Natural Gas Ltd (LNG Ltd) signed a Heads of Agreement (HOA) with Vessel Gasification Solutions, Inc (VGS) for supply of 4 million tonnes a year of LNG from its Lake Charles, Louisiana, project for 20 years. VGS Group, an Indo-American company, is developing a floating LNG import and regasification terminal offshore Kakinada in Andhra Pradesh. The project has two stages, with phase one comprising building a Floating Storage Regasification Unit (FSRU) with a capacity of 4.47 million tonnes, which in the second phase would be scaled up to 8.94 million tonnes. VGS is targeting to be the first liquefied natural gas (LNG) import facility on the east coast but it did not give timeliness for either setting up the import terminal or supply of gas from US. Magnolia LNG proposes to construct and operate up to four liquefaction production trains, each with a capacity to turn 2 million tonnes per annum of natural gas into liquid fuel (LNG) for ease of transportation.

IL&FS Engineering Services Wins Rs. 123.05 Cr Pipeline Laying Contracts from Gas Authority of India Limited (GAIL) IL&FS Engineering and Construction Company Limited (IL&FS Engineering Services) has received Fax of Acceptance (FOA) from Gas Authority of India Limited (GAIL) for two pipeline laying contracts worth Rs. 123.05 Crores (plus Service Tax) in Kerala / Karnataka. Both the spreads are contiguous and are part of Kochi-Koottanad-Mangalore pipeline project. The details of the contracts are: • Spread IV A (24” x 70.32 Km.): Laying and Construction of Pipeline along with Associated Works of Section IV A [(24”x70.32 Km.) Pipeline from SV 13M (At Approx. Chainage 242.175 Km.) to Approx. Chainage 312.495 Km. on 24” Ø Mangalore Spurline Including Piping and Associated Works at SV-14M, SV-15M, IP-3M, and SV-16M of Kochi to Mangalore Pipeline Project Phase - II in Kerala. The total value of this contract is Rs. 83.76 Crores (plus Service Tax). • Spread IV B (24” x 34.83 Km.): Laying and Construction of Pipeline along with Associated Works of Section IV B [(24”x34.83 Km.) Pipeline from Chainage 312.495 Km. (Approx.) to Receiving Terminal at MCF Mangalore (At Approx. Chainage 347.328 Km.) on 24 Ø Mangalore Spurline Including Piping and Associated Works at SV-17M, SV-18M, and Receiving Terminal at MCF Mangalore of Kochi to Mangalore Pipeline Project Phase - II in Karnataka. The total value of this contract is Rs. 39.29 Crores (plus Service Tax). IL&FS Engineering Services is already executing a part of this KochiKoottanad-Mangalore pipeline project for GAIL worth Rs. 173.13 Crores in Kerala. The Company recently won another Pipeline Laying contract from GAIL worth Rs. 162.58 Crores in Bihar state.

Offshore World | 42 | February-March 2017

HollyFrontier Corporation announced the completion of acquisition of Suncor Energy’s Petro-Canada Lubricants (“PCLI”) business for CAD USD 1.125 billion, including working capital with an estimated value of CAD USD 342 million. The Petro-Canada Lubricants plant, located in Mississauga, Ontario is the largest producer of base oils in Canada with 15,600 barrels per day of lubricant production capacity, and is the only Nor th American producer of high margin Group III base oils. The facility is downstream integrated from base oils to finished lubricants and produces a broad spectrum of specialty lubricants and white oils that are distributed to end customers worldwide. The Petro-Canada Lubricants business brings HollyFrontier industr y leading product innovation and R&D capabilities, a global sales and distribution network and strong brand por tfolio recognized globally. With this transaction, HollyFrontier also acquired a perpetual exclusive license to use the Petro-Canada trademark in association with Lubricants. With the addition of the Petro-Canada Lubricants business, HollyFrontier becomes the four th largest lubricants producer in Nor th America with a capacity of 28,000 barrels per day, or approximately 10% of Nor th American production.

South Sudan: Juba Extrac tion Contrac ts

Now

Extends

Oil

South Sudan has ex tended the crude oil exploration and production licences given to Asian multinationals by five years to increase output. The Petroleum Ministr y has ex tended the licences of Malaysia’s Petroliam National Berhad (Petronas), China National Petroleum Corporation (CNPC) and India’s Oil and Natural Gas Corporation (ONGC) to 2022 to increase crude oil production to over 300,000 barrels per day. Juba has also ex tended the agreement with Sudan for transpor ting oil in two pipelines to Por t Sudan. Juba has agreed to compensate subsidiaries of CNPC and ONGC for shutting down production in 2012 following a dispute over transit fees with Khartoum. The firms will also be compensated for disruption of output due to the civil war. However, the exact amounts have not been disclosed.

Oil PSUs to Invest Over Rs 1.4 Trillion in Andhra Pradesh by FY22: Dharmendra Pradhan Major oil public sec tor units are planning to invest over Rs 1.43 lakh crore in Andhra Pradesh in coming years whic h would create

jobs for thousands of people in the state, M inister of petroleum and Natural G as in India, D harmendra Pradhan said. The investment will star t from 2017-18 and all the investment will be completed by 2021-22, he added. “O ur oil PSUs are par tnering with Andhra Prade sh to build new synergies in the hydrocarbon sec tor. The oil PSUs have invested more than Rs 9,400 crore in the last t wo and a half years and have plans investments of more than Rs 1.43 lakh crore in the state in the coming years,” he said. The minister also said about USD 20 billion is being invested in KG basin by both public and private sec tor companies. Also, to ensure long term gas supply, GAIL and Andhra Pradesh government are setting up an LNG terminal of 3.5 million tons at Kakinada at an investment of Rs 2,500 crore.

S iemens Ltd. Wins O rd er Wor t h Rs. 366 C rore f rom O N GC Siemens Ltd. has won an order wor th approximately Rs. 366 crore from Oil and Natural Gas Corporation Limited (ONGC). The order includes supply of material for overhauling of 18 Power Turbines through Zero Hour Overhaul and Time Continued Overhaul. The Zero Hour Overhauling will be first of its kind in India and involves the overhaul of Power Turbines to zero hour status. Traditionally, ONGC Power Turbines are undergoing a Time Continued Overhaul where after overhauling the Power Turbines can run for another 50,000 hour before the nex t overhaul. Under the new concept of Zero Hour Overhaul, the Power Turbine will per form almost as new – capable of a safe run of another 100,000 hours before the nex t overhaul. This will help in reducing down-time and increase in productivity because of elimination of at-least one intermediate overhaul.

Pipeline Company Oneok to Buy Rest of Oneok Partners for USD 9.3 Billion Pipeline company Oneok Par tners LP ’s biggest shareholder to buy the rest of the company for USD 9.3 billion, the latest master limited par tnership (MLP) deal aimed at simplifying struc tures and increasing returns. Oneok said the deal would result in a dividend increase of 21 percent to 74.5 cents per share, or USD 2.98 annually.

Offshore World | 43 | February-March 2017

www.oswindia.com

NEWS

HollyFrontier Concludes Acquisition of PetroCanada Lubricants Business

NEWS

Government Considers Merger of 6 Consultancy Firms into Engineers India Government is considering the merger of about six state -owned consultancy firms like Engineering Projects (India) Ltd, MECON Ltd, Telecommunications Consultants (India) Ltd, WAPCOS, etc. with Engineers India Ltd (EIL) to create a mega-consultancy firm that can take on the might of global giants like Bechtel. EIL is the biggest state -controlled consultancy firm providing engineering consultancy and EPC ser vices principally focused on the oil and gas and petrochemical industries. Engineering Projects (India) Ltd provides turnkey execution of projects in the infrastructure space. MECON Ltd provides technical consultancy and project implementation in infrastructure and ser vices sector. Telecommunications Consultants (India) Ltd is a consultancy firm in the telecom space. WAPCOS provides consultancy and engineering, procurement and construction (EPC) for water, power and infrastructure projects.

Essar Projects Wins 100-Km Jalandhar to Amritsar Pipeline Contract Essar Projec ts has won a 100-km pipeline contrac t from GSPL India Gasnet (GIGL) for laying of natural gas pipelines bet ween Jalandhar and Amritsar. The projec t for laying of pipelines with diameters ranging from 12 inches to 18 inches is a critical segment of the 2,100-km Mehsana–Bhatinda–Jammu–Srinagar Pipeline (MBJSPL) projec t that passes through 29 distric ts in five states of India. The MBJSPL projec t has been initiated to cater to the growing demand for natural gas in India.

Spain’s Repsol Targets 5% Market Share in Indian Auto Lubricant Market Spanish automotive lubricants giant Repsol, which forayed into the Indian market last year through a tie -up with GP Petroleums (GPPL), aims to grab five per cent market share in the automotive space in the nex t 10 years. GPPL, a subsidiar y of UAE-based Gulf Petrochemicals, had tied up with Repsol in April 2016 to produce and retail the Spanish company’s products in India. “We want to capitalise on the growth in the twowheeler segment in India. From being not present in the Indian market till last year, we expect to grab a share of at least 10 per cent in the automotive segment in the nex t 10 years,” said Orlando Carbo Conte, Repsol’s global director of lubricants. www.oswindia.com

The total consumption of petroleum products in India stood at 184.7 million tonnes (MT) in 2015-16, out of which lubes had two per cent share of 3.6 MT. GPPL already had one per cent of the market share in the lubricant space, mainly owing to its industrial brand Ipol. Out of its overall production in India, 90 per cent was industrial lubricants and about 10 per cent was only automotive lubricants. It has now forayed into the diesel lubricant space too to capture the increasing automotive market.

Iran Finds 2 Billion Barrels Shale Oil Reserves in Western Province Iran has found shale oil reser ves of 2 billion barrels of light crude in its western Lorestan province; according to the repor t from National Iranian Oil Company (NIOC) official. It is estimated that the shale oil reser ves in Ghali Koh in Lorestan amount to 2 billion barrels of oil in place. The exploration was also being carried out for shale gas reser ves in the area, and the studies are expected to be completed by October, 2017. Iran’s proven oil reser ves is about 160 billion barrels and comprises almost 10 percent of the world’s total oil reser ves.

Kolkata-Based Oil & Gas Co Set to Buy LSEListed Firm City-based PFH Oil and Gas, promoted by Harsh V Poddar of Poddar group, is in talks with London Stock Exchange (LSE)-listed companies for acquisition to expand its energy business. The Poddar-led firm has won three gas blocks from ministry of petroleum and natural gas last week. Out of these three fields, two are in KG basin (Andhra Pradesh) and one in Cambaybasin in Gujarat. During the latest auction round, CCEA awarded contracts for 44 fields, mostly smaller fields of ONGC and OIL India. A total of 47 companies submitted their bids for these blocks, out of which four were foreign companies.

India Plans to Sell Refined Crude Oil Products to Myanmar India plans to sell refined crude oil products to Myanmar as par t of New Delhi’s effor ts to deepen ties with its eastern neighbour. Laying fuel and gas pipelines linking India’s nor th-eastern states with Myanmar is also expected. Numaligarh refiner y (NRL), a unit of India’s state -run Bharat Petroleum Corp, is looking at selling gasoil into nor thwest Myanmar. NRL plans to treble its refining capacity to 180,000 barrels per day in four to five years. Myanmar’s refined fuels consumption is estimated to rise at an average annual rate of 6 percent over the nex t 10 years to 2026.

Offshore World | 44 | February-March 2017

Bangladesh’s Petrobangla Seeks USD 1.4 Billion Government Funding for LNG Imports

The Odisha government has withdrawn tax incentives given to the Rs 345.55-billion Paradip refiner y, making the company reconsider its plans to invest another Rs 520 billion in the state. Less than two months after ser ving the first show-cause notice, the Odisha government wrote to its single -biggest investor saying it is withdrawing the promised 11-year deferment on payment of sales tax on Paradip refiner y products sold in the state.

Petrobangla has sought USD 1.4 billion from the government to foot LNG impor ts in 2018, which was around 77.77% of the estimated total cost of importing.

The withdrawal will cost Rs 20 billion to Indian Oil Corporation (IOC) this year and will progressively increase ever y year as more petrol and diesel as also petrochemicals are sold within the state.

Hiranandani Energy Star ts Construction Work of Jetty at Jaigarh Por t Hiranandani Energy, the energy arm of Hiranandani Group, today said it has commenced the construction work of jetty for the floating storage and regasification unit (FSRU) project at the Jaigarh por t in Maharashtra. The company is developing a FSRU-based LNG re gasification terminal with JSW Jaigarh Por t with a capacity of 4 MMTPA, which will ultimately be expanded to 8 MMTPA. The strategic par tnership and association with JSW is a per fect fit in the development of infrastructure for impor ting much needed natural gas into the countr y. The FSRU char ter agreement will be the last major milestone in the project. The group is hoping to commence commercial operations of the LNG facilities before December 2018.

Petrobangla has estimated the total cost of LNG impor ts at around USD 1.8 billion/year from 2018 when Bangladesh’s first floating storage and regasification unit that is being developed by US-based Excelerate at Maheshkhali Island in the Bay of Bengal, is expected to be ready. The FSRU will have an initial handling capacity of around 500,000 Mcf/d and ultimately up to 700,000 Mcf/d of LNG. Petrobangla planned to star t impor ting around 500,000 Mcf/d of LNG from nex t year to cater to rising domestic demand.

Indian Oil Plans Rs 400 Billion Mega Refinery at Nagapattinam Indian Oil Corporation (IOC) plans to come up with a 15-milliontonne (mt) refiner y, with an investment of about Rs 400 billion, at Nagapattinam in Tamil Nadu. Currently, Nagapattinam has a 1-mt plant operated by Chennai Petroleum Corporation (CPCL), an IOC subsidiar y. National Iranian Oil Company (NIOC) has a 15.4 per cent stake in CPCL, which runs two refineries — 10.5-mt Manali plant in Chennai and Nagapattinam refiner y in Cauver y Basin. Though there was a plan to merge CPCL with its parent company, a decision is yet to be taken by the government on what will happen to the Iranian stake in the firm. CPCL has a huge land bank in Nagapattinam, which prompted the company to plan such mega investments. This comes at a time when the viability of another 15-mt refinery of IOC in Odisha is under cloud. The Odisha government has decided to withdraw the fiscal incentives for the Rs 340 billion plant. According to the state government, it would lose Rs 22,745-crore revenue, at present value, if it allowed the company to defer paying value-added tax on the refinery’s produce sold in the state for the first 11 years.

Once operational, this will be the fifth LNG impor t terminal on the west coast. The west coast already has four LNG impor t terminals including: Dahej and Hazira in Gujarat; Dabhol in Maharashtra and Kochi in Kerala. Jaigarh also houses the 5 million tons Dabhol LNG terminal operated by gas utility Gail India. In addition to building the marine infrastructure in the por t of Jaigarh to impor t and re -gasify the LNG, the project scope also includes construction of gas pipeline of around 60 km in length connecting the Jaigarh terminal to the existing natural gas pipeline network at Dabhol.

Government Approves Oil Storage Pact With ADNOC

According to the agreement, Jaigarh Por t shall manage the construction of the jetty civil works and has appointed L&T Infrastructure Engineering Ltd., Chennai for jetty design. The civil construction works of the LNG jetty has been awarded to ITD Cementation, Mumbai. H-Energy and Jaigarh Por t have jointly appointed COWI India Private Limited, Chennai to super vise the jetty construction.

The Cabinet approved a pact on oil storage and management between Indian Strategic Petroleum Reserve (ISPRL) and Abu Dhabi National Oil Company (ADNOC) of UAE. According to the agreement, ADNOC will fill up 0.81 MMT or 5,860,000 million barrels of crude oil at ISPRL storage facility at Mangalore, Karnataka. The investment by ADNOC is a major investment from the UAE under the High Level Task Force on Investment (HLTFI) and the first investment by the Gulf nation in India in the energy sector.

Offshore World | 45 | February-March 2017

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NEWS

Odisha Govt Withdraws Tax Sops to Ioc ’s Pradip Refiner y

NEWS

L&T Arm to Provide Epc Services to Shell Projects Engineering major L&T said that its hydrocarbon subsidiar y will provide Engineering, Procurement and Construction Management (EPCM) ser vices to Anglo-Dutch oil and gas firm Shell in West Asia, South East Asia and India over the nex t five years. “L&T Hydrocarbon Engineering has signed an enterprise framework agreement (EFA) with Shell Global Solutions International B.V. for providing AEPCM ser vices for Shell projects in the Middle East, South East Asia and India,” said L&T in a regulator y filing to the BSE. The subsidiar y will leverage on its core strengths of engineering and project management to deliver projects for any agreement resulting from the EFA. The company’s office will be its high value engineering centre. “The agreement is a breakthrough for our new engineering ser vices business ver tical. We will combine our engineering exper tise with project and risk management skills to provide solutions to customers across the globe,” said L&T Hydrocarbon Engineering Chief Executive Subramanian Sarma.

GAIL Objects to HPCL’s Gas Pipeline Project Hindustan Petroleum Corporation’s plan for a cross countr y pipeline to move LPG received on the west coast to bottling plants over 600 km away in the hinterland has hit a roadblock with GAIL (India) raising objections to the project. The project, GAIL fears, could mean the end of the road for its pipeline that for more than a decade has been bringing LPG from the por t city of Vishakhapatnam, on the eastern coast, to bottling plants in Cherlapalli, near Secunderabad.

Thus, it would render the Vishkhapatnam-Secunderabad LPG Pipeline, created at a considerable cost to the exchequer, starved and under-utilised to a major extent. The 600-km-long facility was readied in 2003 at a cost of around INR 5 billion. GAIL said it is not inclined towards any other pipeline in the region until its pipeline is fully utilised by HPCL and other oil marketing companies. Creation of a new connectivity by HPCL, it said, would result in duplication of infrastructure.

GSPC Scraps Plans for Stake Sale in 20 Onshore E&P Blocks Gujarat State Petroleum Corp. Ltd (GSPC) has scrapped a plan to sell a stake in 20 of its onshore exploration and production (E&P) blocks. The Gujarat state -owned GSPC had hired consulting firm EY to prepare a repor t on the blocks for the stake sale. GSPC is the flagship company of the GSPC Group, primarily engaged in E&P of oil and gas. The government of Gujarat owns 87% of the company’s equity capital. EY was hired by GSPC last year to re - evaluate the prospects of the onshore exploration and production blocks held by the firm. GSPC holds a par ticipating interest in 24 blocks of which 20 are onshore and four are offshore. Seventeen onshore blocks are producing proper ties. Of the 24 blocks held, GSPC is an operator in six blocks and a non-operating par tner in 18. State-run ONGC agreed to pay USD 1.2 billion to GSPC for the purchase of its 80% stake in Deen Dayal block located in Krishna Godavari (KG) basin offshore. GSPC had invested USD 3.5 billion (approximately Rs 200 billion) in its Deen Dayal block, which saddled the company with debt.

The resistance is in response to an expression of interest HPCL had submitted to PNGRB, the regulator, earlier this year to lay and operate a liquefied petroleum gas pipeline from Hassan in Karnataka to Cherlapalli, near Secunderabad in Telangana. The oil marketing company proposes to move the product from its Mangaluru LPG impor t facility. Hassan is one of the injection points on HPCL’s MangaluruHassan-Mysuru-Sollur LPG pipeline. The plan involves laying a 620km long pipeline from Hassan to Cherlapalli with a tap-off point (TOP) at Anantapur in Andhra Pradesh.

Cairn India Persuaded Melody Meyer, Atul Gupta as Executive Advisors

HPCL, which has bottling plants in both Cherlapalli and Anantapur, over time wants to supply LPG from Cherlapalli to its facilities in Nagpur and Chandrapur, Maharashtra. In the EOI, the company expected LPG demand to pick up from southern Andhra Pradesh, Telangana and eastern par ts of Maharashtra. In its response, GAIL said it had “strong apprehension that in case HPCL’s LPG pipeline comes into existence, HPCL may cater to the entire demand of Cherlapalli from the new connectivity.

In her last assignment with Chevron, Meyer was President, AsiaPacific, and was responsible for driving Chevron’s E&P activities across nine countries in the region. Gupta currently advises private equity firms and sits on the boards of a number of upstream oil and gas companies including Nostrum (Kazakhstan), Seven Energy (Nigeria) and Vetra Energy (Colombia). Earlier, he was Chairman and CEO of oil and gas companies with BSG Resources - a natural resource and power company. Prior to that, Atul ser ved as CEO of Burren Energy Plc.

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Cairn India announced the appointment of former Chevron executive Melody Meyer and ex-CEO of BSG Resources Atul Gupta as executive advisors. “They will provide strategic direction and delivery focus to Cairn India, as the company embarks upon its growth journey of contributing to 50 per cent of India’s overall crude production, through 5 billion barrels of oil equivalent reserves and growing and sustaining production at 300,000 barrels of oil and oil equivalent per day,” the company said.

Offshore World | 46 | February-March 2017

Oil India Limited signs MoU with University of Houston

GAIL (India) Ltd has signed a time -swap deal with Swiss trader Gunvor to sell some of its U.S. liquefied natural gas (LNG), as the Indian firm tries to ease the burden of its costly foreign LNG supplies.

Oil India Limited (OIL) has signed a MoU with the Universit y of Houston (UH), with the intention of augmenting its reser ves base and maximising recover y from its ageing oilfields. The MoU was inked in the presence of Petroleum & Natural Gas Minister Dharmendra Pradhan. MOU was signed by Utpal B ora, CMD, OIL and Universit y of Houston, represented at the signing ceremony by UH Chancellor and President Renu Khator.

The deal equates to around 5 percent of India’s 2015/16 LNG impor ts and will suppor t a government push to promote the use of the cleaner fuel in fer tiliser and the power sector, even as India’s local gas production is falling. Under the agreement, Gunvor will supply 15 cargoes or about 0.8 million tonnes of LNG to GAIL on India’s west coast between April and December this year in oil-linked prices on a delivered basis in India. In return GAIL will sell 10 cargoes or about 0.6 million tonnes nex t year from Sabine Pass on the U.S. Gulf coast in 2018 at a premium to its pricing formula on a free -on-board (FOB) basis. The deal, priced at about a 12 percent slope to Brent, means GAIL could get gas from Gunvor at USD 6.50- USD 7.00 per million British thermal units (mBtu), the sources said, competitive with Asian spot prices and much cheaper than the cost of shipping its own U.S. gas to India.

AG&P and Air Liquide Global E&C Solutions sign MoU to deliver fully integrated LNG infrastructure solutions in Southeast Asia AG&P (Atlantic, Gulf and Pacific Company), a leading integrator of infrastructure solutions across the LNG supply chain, has signed a Memorandum of Understanding (MoU) with Air Liquide Global E&C Solutions, the engineering and construction arm of the Air Liquide Group, to develop small-scale LNG infrastructure for LNG distribution across Asia. By combining their respective strengths, AG&P and Air Liquide will be able to offer unique, fully integrated and cost-optimized solutions for LNG distribution with a focus on liquefaction, transportation and downstream infrastructure to deliver LNG to end users seeking LNG for power, shipping, ground transport and other industrial applications. Under the MoU, AG&P will integrate the technologies offered by Air Liquide with its exper tise in planning, designing engineering, financing and operating LNG infrastructure modules to build technologicallyadvanced blocks that can plug into any par t of the LNG supply chain. As par t of this MoU, AG&P and Air Liquide will begin developing standardized downstream LNG modules (some as skids) that optimize costs and shor ten deliver y time. The MOU as well covers innovative Boil-off Gas (BOG) management systems eliminating the need for investment in BOG compressors, while ensuring that no gas is vented or flared, bringing environmental and economic benefits to the customer.

If there is good strategy, innovative technology and willpower, a good ecosystem can be formed that will help in more oil recover y from the oilfields,” Pradhan said. The major focus of the MoU is collaboration in the areas of Improved Oil Recover y and Enhanced Oil Recover y (EOR) for augmenting the produc tion from matured fields, improvement in drilling and well inter vention prac tices, seismic interpretation and reser voir charac terisation studies, and unconventional hydrocarbon studies. It is believed that this collaboration will help OIL to fur ther consolidate and upgrade the various initiatives the company has under taken to improve produc tion and contribute significantly to the energy securit y of the countr y. This will also contribute towards national obligation as set by Prime Minister Modi to reduce impor t dependenc y of oil and gas by 10 per cent by 2022.

Origin Energy Mulls Formal Sale Process for ‘Newco’ Oil and Gas Assets Origin Energy’s chief executive Frank Calabria has held out the prospect of running a formal process for the sale of the “NewCo” oil and gas assets, amid speculation that the proposed initial public offering was never seriously envisaged. Mr Calabria reiterated that Origin had received expressions of interest for the conventional oil and gas assets but said a decision on whether to run a formal sales process for the whole package had yet to be made. Origin’s announcement in December of the IPO plan for its nonLNG oil and gas business, valued by analysts at more than USD 1.8 billion, has sparked a frenzy of discussions among industrial, private equity and financial players in the energy sector on a potential bid. Beach Energy and Senex Energy are among those that are understood to have been involved in talks on potential alliances for a deal. Doubts around the IPO plan have been fuelled by some investors who say they would want Origin to remain a cornerstone investor in the spin-off, whereas Origin has said it wants a 100 per cent divestment to help reduce its debt of about USD 9 billion.

Offshore World | 47 | February-March 2017

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NEWS

GAIL Signs Time-Swap Deal with Swiss Trader Gunvor to Sell US LNG

PRODUCTS

Electronic Pressure Controllers Alicat Scientific has added two new families of electronic pressure controllers specifically for high volume OEM. The EPC family with single proportional valves and EPCD family with dual valves, provide customized pressure control in embedded systems. The small footprint instruments respond quickly to upstream fluctuations to provide fast, accurate control of pressure in an economical, easyto-integrate package. Alicat offers a choice of valves, valve orifices and process connections to fit customer specifications. EPC instruments are ideal for use in OEM gas chromatographs, fluidics dispensing for flow cytometry and anywhere responsive pressure control is needed. EPC and EPCD instruments have a 100 ms control response to still upstream pressure fluctuations in real time. NISTtraceable accuracy is 0.25% full-scale. The EPC family’s single proportional valve provides stable control of pressure in flowing applications, such as maintaining flow of carrier gas through the sample injection point in gas chromatographs. The EPCD features a second exhaust valve to provide efficient control of pressure in closed volumes, such as controlling the head space above a fluid for dispensing. Alicat offers NPT, SAE, downport and NeSSi process connections. Both digital (RS232, RS-485, Modbus) and analogue (0-5 V, 0-10 V, 4-20 mA) communications are available to suit a range of end-user products. A choice in valve type and orifice allows for configuration to specific flow requirements for the best speed and stability. For details contact: Halma India Prestige Shantiniketan, Gate No: 1, Tower C, 7th Floor ITPL Main Road, Whitefield, Mahadevapura, Bengaluru, Karnataka 560 048 Tel: 080-67475300 E-mail: sunil.balan@halma.com

Single Point Insertion Flow Meter The SPI Mag insertion flow meter provides a highly cost-effective solution for the accurate measurement of liquid flow in closed conduit, pressurized pipe applications. The SPI Mag reliably measures flow in water and wastewater as well as any type of industrial flow processes involving conductive fluids such as potable water, slurries, sludge, cooling water and pulp stock. Its proven electromagnetic technology is based on Faraday’s Law. Debris shedding, self-cleaning sensor eliminates costly maintenance. Cost is independent of line size. It has an easy hot tap installation - no interruption of flow process.It finds application in wastewater - effluent, waste activated sludge (WAS), return activated sludge (RAS) and reclaimed/recycled. For details contact: Toshniwal Hyvac Pvt Ltd 267 Kilpauk Garden Road, Chennai 600 010 Tel: 044-2644 8558, 26448983, Fax: 91-044-26441820 E-mail: sales@toshniwal.net www.oswindia.com

Motorised Double Diaphragm Pumps The DELLMECO DME Series is an electromechanical double diaphragm pump which is highly energy efficient. Instead of running the double diaphragm pumps on compressed air or Ni gas – which are the most expensive plant utilities, Dellmeco offers an energy efficient electric geared motor as the driver for the double diaphragm pumps. The pump technology is especially designed for universal applications which require pressures up to 6 bars. It is compact and preventive maintenance is easy to carry out. The DELLMECO DME unique design concept and low energy consumption combines high-tech with proven reliability and quality for the most demanding of customers. The DELLMECO DME Series pump housing is machined from PE and PTFE conductive blocks and also in aluminium, cast iron, AISI 316 and AISI 316 L (hygienic) combinations and temperatures up to 120°C. Pumps are dry-running, low shear, versatile fluid handling capability; smooth product transfer; low operating costs through highly efficient electric drive; constant flow rate against variable pressure and viscosity; withstands highly corrosive chemicals; long life fully enclosed diaphragms; abrasion resistance with their robust design; capacity up to 650-LPM without variable frequency drive (VFD) flow control - optional VFD flow control for process performance from 35-Hz up to 70-Hz; wide range of optional accessories available; compact in design compared to ecc screw and peristaltic pumps. For details contact: Shanbhag & Associates B-50 Nandbhuvan Indl Estate, Mahakali Caves Road, Andheri (E), Mumbai 400 093 Tel: 022-40365700, 40365711, Fax: 91-022-40365712 E-mail: info@shanbhags.com

Magnetic Level Indicator The operating principle is based on magnetic field coupling. Float chamber is typically constructed with non-magnetic pipe having process connections that matches to the vessel connections. Float size and weight is determined by the process fluid, pressure, temperature and the specific gravity of the process fluid. Float contains magnets to provide 360 o magnetic flux field. It finds application in solvent tank, filler tank, brine tank, water tank, bulk storage tank, oil and crude tank, acidic and alkaline tank, etc. For details contact: Filpro Sensors Pvt Ltd No: 130, 10 th Cross, Petechennappa Indl Estate Kamakshipalya, Magadi Main Road, Bengaluru, Karnataka 560 079 Tel: 080-23286463 E-mail: sales@filprosensors.com

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PRODUCTS Triple Duty Valve Kirloskar Brothers Ltd (KBL) is the first valve manufacturing company in India to be ISO 9001/ISO 1001/ISO 50001/ OHSAH 18001 accredited/CE marked/ FM approved and UL listed. It manufactures valves ranging from 25-mm to 5,000-mm in various design standards and material of constructions as per customer needs/ specifications. KBL has been manufacturing and supplying range of valves for various types of applications in the chemical industry. The KBL valves applicable for the chemical sector are resilient seat gate valves, tamper-proof kinetic air valves, butterfly valves, forged steel gate valves, steam trap device, suction diffuser, etc. One of the other valves that KBL manufactures is the triple duty valve. It is a noise-free operating multi-purpose valve that performs all the required functions on the discharge side of the Hydronic System Pumps (HVAC). Apart from the chemical industry, the valves also have other industrial applications in pharma manufacturing plants, bottling plants, and chemicals and food and beverage industries. Besides industrial applications, the valves also witness a high demand in the building and construction sector and are widely installed in multi-storied buildings, malls, airports, etc. The single valve behaves as an isolating-cum-regulating-cum-non-return valve. The disc opening responds even at 25% of the rated pressure of the valve. The spring will assist in disc closure soon after the pressure drops down to prevent flow reversal and water hammering. The handwheel rotation assists in adjusting the flow discharge through the valve. In addition, its centre guided soft seal disc ensures zero leakage. The rising spindle design includes a position indicator (on request) for accurate disc positioning for throttling service. There is a provision for fitment of standard gauge taps at both the inlet and outlet side. The triple duty valve is made from cast-iron or ductile iron or cast steel with a stainless steel trim. Its flange drilling is customised to IS/BS/ASME/ANSI Standards in view of meeting the desired requirements (on request). The primary feature of this low pressure drop and balancing valve with by-pass function is its unique re-positional inlet body for angle mounting configuration. For details contact: Kirloskar Brothers Ltd Global Headquarters Yamuna Survey No: 98/(3-7), Baner Pune, Maharashtra 411 045 Tel: 020-27214444

Dual Circuit Control & Monitoring Unit Thermon Group Holdings, Inc offers TraceNet TCM2 dual circuit control and monitoring unit, the latest addition to the TraceNet family of remotelyoperated heating control and monitoring systems. Like the 18-circuit TraceNet TCM18 control and monitoring unit, the TCM2 unit makes it possible to remotely maintain heat trace circuits that play a critical role in industrial processing facilities.To help operators better monitor and control temperatures of pipes, tanks and heated instruments, Thermon designed the TCM2 to reliably operate in harsh environmental conditions around-the-clock to ensure that pipe temperatures are monitored and efficiently controlled. This allows the TCM2 to be extremely versatile. The TraceNet TCM2 can be operated locally, by remote control or networked via wireless or hard-wire to a computer or distributed control system (DCS) in the facilityâ&#x20AC;&#x2122;s control room. The system continuously monitors every set point, including temperature, current and ground-leakage current. It then reports locally and transmits key data remotely to the control room. The operator can review each circuit for temperature, ground current, heater current, the frequency at which it is performing and alarm status. As with every TraceNet controller, the TCM2 relies on resistance temperature detector (RTD) temperature sensors to monitor temperature on the designated pipe or equipment. The system then cycles the heat required to maintain the target temperature. If required, the operator can also adjust every circuit set point on the unit or via remote locations. For details contact: Thermon San Marcos, Texas, U.S.A. Tel: +1 512-396-5801 Ext 2239 E-mail: lance.bielke@thermon.com

Trace Analyser Specifically designed for extractive trace analysis applications, the LaserExactâ&#x20AC;&#x2122;s TDL technology offers unsurpassed low ppb detection limits for most gases, making it ideal for the measurement of trace gases offline. Advanced multipass cell delivers ppb or low ppm detection limits. Innovative PeakLock pattern recognition line tracking eliminates drift over extended operational periods. Stable, drift-free performance reduces calibration to typically once a year. For details contact: Spectris Technologies Pvt Ltd Plot No: A-168 MIDC, Thane-Belapur Road, Khairane Navi Mumbai 400 710 Tel: 022-39342700 E-mail: MEI_Sales@servomex.com

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PRODUCTS PD Flow Meters

Servo Motors

Toshniwal represents Bopp & Reuther, Germany’s oval wheel flow meters unrivalled for accuracy and reliability. The in-house manufacturing and flow testing facilities are also unrivalled up to Oap 4000 - 20,000 LPM.The range starts from the Bopp & Reuther microflow meters 0.005 LPM. These meters with their large variety of material combinations ranging from engineering plastics to stainless steel are ideal for OEM applications which include automotive fuel consumption applications to aggressive chemical additive systems.

The AKM servo motors from Kollmorgen are among the best on the market with their flexible usage options and performance. The new generation presented as a concept by the specialist in servo drive technology and motion control is capable of even more - Kollmorgen has increased the power density of the AKM2G by up to 30 per cent. The increased power density with an improved torque/speed ratio is primarily the result of the optimized winding technology. Kollmorgen has thereby managed to reduce the copper losses for the windings. The advantages: Improved energy efficiency as well as room for more performance with the same installed size. The AKM2G motors also feature smoother cogging behaviour, which also ultimately improves the control accuracy.

The range of the larger OV Series flow transmitters with 25-100 mm bore covering the flow range from 5.5-1,350 LPM are extensively used for the accurate metering of kerosene, gas oil and the high viscosity fuel oils. Optional integral self-contained battery readouts (ATEX approved) can be fitted with facilities for analogue and pulse outputs. Once again the extensive range of different body/wheel materials allows these meters to meet almost all commercial metering applications. These meters are also fitted to a large number of ships as the larger meters can also meet their requirements. The range is further extended by the very large PD meters for terminal loading applications. Toshniwal have the in-house facilities for service and traceable calibration to meet specific requirements. For details contact: Toshniwal Hyvac Pvt Ltd 267 Kilpauk Garden Road , Chennai 600 010 Tel: 044-26445626, 26448983 E-mail: sales@toshniwal.net.

The new generation of synchronous servo motors will initially feature six design sizes with performance levels between 0,3 and 10 kW. The AKM2G motors can be fitted with different feedback systems and are primarily provided with single-cable connection technology. As a result of the modular structure of the range, Kollmorgen is better able to adapt the 2 nd generation motors to the requirements of a specific application in parallel with series production. Machine builders are thereby able to use drives that fit like bespoke drives without compromise – especially in combination with the servo controllers from the AKD2G range. For details contact:

Compact Coriolis Mass Flow Meters & Controllers Coriolis mass flow meters are highly appreciated for their accuracy and independence of fluid properties. The direct coriolis mass flow measuring principle is generally used for higher flow rates. Moreover, mini CORL-FLOWTM instruments have an integrated PID-controller and a batch counter to control the fluid flow.

Kollmorgen India 1001, Sigma House, Hiranandani Business Park Powai, Mumbai 400 076 Tel: 022-42270300 E-mail: snehal.ambre@kollmorgen.com

Oval Wheel Meter

Features direct flow measurement, independent of fluid properties; fast response time; high accuracy, excellent repeatability; additional density and temperature output; compact design (same footprint as CORIFLOW M50 Series); and excellent price/performance ratio. Visit www. bronkhorst.com

Oval wheels (Type OV) displace precisely known volume of liquid through the meter from inlet to outlet. The number of revolutions, therefore, is directly proportional to the measured volume.For the protection of oval wheel meters and turbine meters against foreign matter and solids contained in the liquids, measured with these meters. These strainers may also be used for protection of piping systems for contamination, Type N... without heating jacket sizes 15-100-mm (1/2” to 4”). It features 2-wire technique and has only 2 moving parts (oval wheels); high accuracy measurement at high viscosities and direct measurement of volumetric flowrate.

For details contact: Toshniwal Hyvac Pvt Ltd 267 Kilpauk Garden Road, Chennai 600 010 Tel: 044-2644 8558, 26448983 E-mail: sales@toshniwal.net

For details contact: Toshniwal Hyvac Pvt Ltd 267 Kilpauk Garden Road, Chennai 600 010 Tel: 044-26448558, 26448983 E-mail: sales@toshniwal.net

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PRODUCTS Dualstream Wet Gas Flow Meters New Platform of S olar tron ISA’s D ualstream meters HMI Workstations are designed for direc t installation at a wellhead or flow line, either top side or subsea.

Stable and reliable with a t ypical lifespan greater than 20 years, Dualstream meters are ideal for unmanned platforms and marginal field development as well as for ultra deepwater installation. The Dualstream family consists of four produc ts: Dualstream Venturi, the original wet gas metering system, is a cost-effective solution for allocation or monitoring gas flow rates. Applications include tie-ins to existing infrastructure and multiwell fields, in which production fluids remain relatively constant throughout the field’s life. The Dualstream Venturi is generally used in combination with test separators or tracer dilution techniques. Dualstream 1 is a multiphase measurement solution for allocation or monitoring gas condensate wells. It is typically used on a per well basis at the wellhead or in the flow line. Standard field instrumentation makes it ideal for remote wellheads or unmanned platforms. The Dualstream 1 is recommended when real-time, high-accuracy gas measurement is a fundamental requirement, and water measurement accuracy is required for efficient well operation. Dualstream 1 replaces the need for test separators or tracer dilution techniques. Dualstream 2 is a multiphase measurement solution typically used on wells with high levels of liquids, which can cause gas rate over read. The Dualstream 2 uses a dual pressure differential technique to measure liquid levels and a proprietary algorithm to achieve realtime, multi-phase measurement. D ualstream 3 utilizes a unique, patented S olar tron approach for water frac tion measurement for real-time measurement of phase frac tions in wet gas applications. Its flow meters incorporate multipath, non-intrusive sensors that have demonstrated excellent per formance in oil and water continu ous flow and proven to be ex tremely robust in handling changes in field hydrocarbon compositions. For details contact: Solartron ISA (A Unit of the AMETEK Oil & Gas Business Unit) Hackworth Industrial Park Shildon, County Durham DL4 1LH, U.K. Tel: +44 (01) 1388 773065, 774888 E-mail: sales.solartronisa@ametek.com

Eaton has expanded its range of MTL GECMA HMI workstations, introducing two new products – a Thin Client (TC) and Personal Computer (PC) version. The company can now offer a complete range of workstations based on a common platform design. As such, plant managers can reduce operation costs, optimise productivity and increase plant safety, with the additional benefits of reducing space in the cabinet and futureproofing the plant. The TC and PC versions complement the existing MTL GECMA Remote Terminal (RT) which has a unique modular design. These next generation HMIs feature state-of-the-art technology to offer unparalleled levels of safety and are approved to global hazardous certification for Zone 1 environments. As a result they offer safe handling on site and guarantee high reliability in hazardous EX zone areas in chemical, pharmaceutical, refinery plus the oil and gas industries worldwide. The TC version is designed for virtualisation applications, eg, batch control. The workstation works with a client server in the safe room across a LAN. This saves space in the cabinet as users do not need a dedicated PC and the user can control up to 255 HMIs from a single server. The PC version is stand-alone working across the LAN. It has state-ofthe-art system hardware, which meets the needs of the most complex applications with high computing power demand, eg, packing. The workstation has a watch dog function which automatically monitors the operating system and if there is no input from the system it automatically re-starts itself. This avoids hard re-starts, which saves time associated with turning the system On and Off, and minimises any stress on the system for increased reliability. RT is a point-to-point device, with one workstation assigned to one PC in the safe area. It features a keyboard, mouse and video, and is perfect for controlling tablet coating or dry granulation machines. The RT terminal’s modularity means upgrades to existing installations are quick and easy, which can save time, and minimise costly maintenance and downtime. Traditionally, the whole unit would have to be dismantled off-site, but with MTL GECMA, individual parts can be replaced simply on-site, increasing plant availability. For details contact: Eaton Butterfield, Great Marlings Luton, Bedfordshire LU2 8DL, U.K. Tel: +44 (0)1582 723633 E-mail: mtlenquiry@eaton.com

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MARKETING INITIATIVE

Water Specialties Propeller Flow Meter

ur application engineers, researchers, and designers apply their exper tise in real-world fluid dynamics to continuously improve our innovative flow metering solutions. Instrument, process, facility, and consulting engineers worldwide have confidently chosen our flow meters for over 60 years.

One Moving Part

Municipal or Industrial Flow Solutions

Specially designed LCD display can be read in bright sunlight and will

The Water Specialties Propeller Meter is the best choice for measuring

not be damaged by prolonged exposures to sunlight. The indicator-

clean water flows in municipal and industrial applications. The meter

totalizer is encapsulated in a moisture resistant barrier so no moisture

is engineered to deliver superior per formance, low maintenance and

can come in contac t with the elec tronic components. This solid state

unsurpassed durability. Meter materials and performance meet or exceed

design offers ex tended life.

AWWA standard C704/92.

The propeller is the only moving par t in the electronic propeller meter. A sensor which is magnetically coupled to the propeller electronically drives the digital indicator-totalizer. FlowCom Display

Key Features Include

The Classic Meter for Clean Water Flows



Water Specialties Propeller Meters are manufac tured using precise techniques and high qualit y materials. For example, long-life ceramic thrust bearings and a cast bronze gearbox produce the best propeller meter available

    

Measurement accuracy is +/- 2% of reading. The meter accommodates flow ranges from 35 GPM to 200,000 GPM. The Water Specialties Propeller Meter can be installed ver tically, horizontally or inclined, with sizes ranging from 2” to 120”.

Proven design for clean water flows Quality construction Long-life components Meets/exceeds AWWA standard Accuracy of +/-2% of reading Wide flow range

Long life battery

The batter y has a life of 6 to 10 years. Transmitter Optional Outputs

Applications



Water Specialty Propeller Meters are designed and manufactured with



precise techniques and high quality components to deliver superior



4-20 mA Pulse output Contact closure

per formance, low maintenance and unsurpassed durability. Materials used on all meters, and flow ranges for low velocity construction meet or exceed AWWA standards C704/02. Meters are available for a variety of applications, in sizes 2” through 120.” Potable Water Waste water Management Fire Sprinkler Testing Truck Loading and Discharge

Water Well Production Marine System Testing Pumping Stations Canal Laterals

FEATURES AND BENEFITS:

Electronic propeller meters Water Specialties offers the most radical change in propeller meters in the last fifty years. Our electronic meter offers the latest in technology and simplicity of design. Engineered from the ground up, the electronic meter is light years ahead of its time. www.oswindia.com

Offshore World | 52 | February-March 2017

MARKETING INITIATIVE

Memory

How it works

The non-volatile memory retains the totalizer quantity and programming.

The Water Specialties Propeller Meter consists of a rotating impeller positioned in the flow stream. When fluid passes through the meter, it contacts the impeller causing it to spin. The impeller’s rotational velocity is directly propor tional to the velocity of the flow.

Installation

The electronic meters can be installed vertically, horizontally or inclined. Conversion

Water Specialties mechanical propeller meters can be conver ted to electronic propeller meters in the field. Specifications and design features           

Accuracy: +/-2% Flow range: from 35 GPM to 200,000 FPS Right Angled gear drive Pressure rating: up to 300 psi Temperatures: up to 350°F One piece separation and ceramic bearings O-ring sealed gearbox Totalizers standard on all meters Line sizes from 2” to 120” Indicator-totalizer option available 4-20 mA and pulse rate output transmitter options

The rotation is transmitted via a right-angle gear drive to the register, which calculates the flow rate by multiplying the flow velocity with the cross- sectional area of the meter tube.

Toshniwal Hyvac Pvt Ltd 267 kilpauk garden road Chennai : 044 26445626 /8983 Email :sales@toshniwal.net Web:www.toshniwal.net

Offshore World | 53 | February-March 2017

www.oswindia.com

MARKETING INITIATIVE

Fast Growing Industrial Ethernet and Wireless

n d u s t r i a l E t h e r n e t a n d Wi re l e s s g ro w t h i s a c c e l e r a te d b y t h e

some of the trends they see within industrial communication in 2017.

increasing need for industrial devices to get connec ted and the I n d u s t r i a l I nte r n e t o f Th i n g s. Th i s i s t h e m a i n f i n d i n g o f H M S

Industrial Internet of Things is boosting Industrial

Industrial Net works´ annual study of the industrial net work market.

Ethernet growth

I n d u s t ri a l Et h e rn e t n ow a cco u nt s f o r 4 6 % o f t h e m a r ke t ( 3 8 l a s t

According to HMS, industrial Ethernet is growing faster than previous

year). Wireless technologies are also coming on strong, now at 6%

years, with a growth rate of 22%. Industrial Ethernet now makes up for

(4) market share. Combined, industrial Ethernet and Wireless now

46% of the global market compared to 38% last year. EtherNet/IP and

account for 52% of the market, while fieldbuses are at 48%.Fieldbus

PROFINET are tied at first place, with PROFINET dominating in Central

vs. industrial Ethernet and wireless

Europe, and EtherNet/IP leading in Nor th America. Runners-up globally are EtherCAT, Modbus-TCP and Ethernet POWERLINK.

HMS´s estimation for 2017 based on number of new installed nodes in 2016 within Factor y Automation. The estimation is based on several

“We definitely see an accelerated transition towards various industrial

market studies and HMS´s own sales statistics

Ethernet networks when it comes to new installed nodes,” says Anders Hansson, Marketing Director at HMS.

HMS Industrial Net works now presents their annual analysis of the industrial network market, which focuses on new installed nodes within

The transition to industrial Ethernet is driven by the need for high

factory automation globally. As an independent supplier of products and

per formance, integration between factor y installations and IT-systems,

ser vices for industrial communication and the Internet of Things, HMS

as well as the Industrial Internet of Things in general.

has a substantial insight into the industrial network market. Here are

www.oswindia.com

Offshore World | 54 | February-March 2017

MARKETING INITIATIVE

Wireless is redefining the networking picture

products for industrial communication including remote management.

Wireless technologies are growing quickly by 32% and now accounts

HMS develops and manufactures solutions for connecting automation

f o r 6 % o f t h e t o t a l m a r ke t. Wi t h i n Wi re l e s s, W L A N i s t h e m o s t

devices and systems to industrialnetworks under the Netbiter, Anybus

popular technology, followed by Bluetooth. “Wireless is increasingly

and IXXAT brands.

b e i n g u s e d by m a c h i n e b u i l d e r s to re a l i ze i n n ovat i ve a u to m at i o n architec tures and new solutions for connec tivit y and control,

Development and manufacturing take place at the headquar ters in

i n c l u d i n g B r i n g Yo u r O w n D e v i ce ( BYO D ) s o l u t i o n s v i a t a b l e t s o r

Halmstad, Sweden and in Ravensburg, Germany. Local sales and suppor t

smar tphones,” says Anders Hansson.

are handled by branch offices in China, Denmark, France, Germany, India, Italy, Japan, UK, and USA. HMS employs over 350 people and

Fieldbus is still growing, but the growth is slowing down

repor ted sales of 57 million EUR in 2013. HMS is listed on the NASDAQ

Fieldbuses are still the most widely used type of networks with 48%

OMX in Stockholm.

of the market. Fieldbuses are still growing as many users ask for the traditional simplicity and reliability offered by fieldbuses, but the growth rate is slowing down, currently at around 4% compared to 7% last year. The dominant fieldbus is PROFIBUS with 14% of the total world market, followed by Modbus-RTU and CC-Link, both at 6%. Regional facts 

In Europe and the M iddle East, PROFIB US is still the leading network while PROFINET has the fastest growth rate. Runners up are EtherCAT, Modbus-TCP and Ethernet POWERLINK.



The US market is dominated by the CIP networks where EtherNet/ IP has over taken DeviceNet in terms of market shares.



In Asia, a fragmented network market is ver y visible. No network stands out as truly market-leading, but PROFIB US, PROFINET, Et h e r N e t / I P, M o d b u s a n d CC - L i n k a re w i d e l y u s e d. Et h e r C AT continues to establish itself as a significant network, and CC-Link IE Field is also gaining traction.

More and more devices are getting connected

“The presented figures represent our consolidated view, taking into account insights from colleagues in the industry, our own sales statistics and overall percept io n o f t he market,” says Anders Hansson. It is interesting to see that industrial Ethernet and Wireless combined now account for more than half of the market at 52%, compared to fieldbuses at 48%. The success of a series of industrial Ethernet networks and the addition of growing Wireless technologies confirms that the network market remains fragmented, as users continue to ask for connectivity to a variety of fieldbus, industrial Ethernet and wireless networks. All in all, industrial devices are getting increasingly connected, boosted by trends such as Industrial Internet of Things and Industr y 4.0. H M S I n d u s t r i a l N e t wo r k s i s t h e l e a d i n g i n d e p e n d e nt s u p p l i e r o f www.oswindia.com

HMS Industrial Networks Stationsgatan 3730245 Halmstad, Sweden www.anybus.com Michela NALIN Phone: +46 351729 93 Fax: +46 351729 09 Email: min@hms.se

Offshore World | 55 | February-March 2017

EVENTS DIARY

GASTECH

Oil & Gas World Expo 2018

Date: April 4-7, 2017 Venue: Chiba, Tokyo, Japan Event: Gastech 2017 will draw attendance from the complete, global value chain, including stakeholders from upstream, midstream and downstream sectors. It is the world’s leading gas and LNG conference and exhibition, enabling over 25,000 commercial experts and technical innovators from the up, mid and downstream sectors of the supply chain to discover businesschanging insights, explore innovative solutions and build profitable business connections.

Venue: Mumbai

The expo will provide a platform to showcase innovative technologies and services, encompassing current and future trends in the entire value chain of hydrocarbon industry ranging from upstream to midstream and downstream.

For details contact: dmg : events global energy 25th Floor Millbank Tower, 21-24 Millbank London, United Kingdom Tel: +44 (0) 203 772 6086 Fax: +44 (0) 203 757 8443 Email: info@gastechevent.com Email: info@gastechevent.com

ARC’s Fifteenth India Forum: Industry in Transition: Realizing the Digital Enterprise Date: July 6-7, 2017 Venue: Le Meridien Hotel, Bangalore Event: In today’s marketplace innovation is the buzzword, and this innovation is not confined to just product changes - it encompasses innovation at all levels of the value chain from the shop floor to the end user. It is about becoming collaboratively networked enterprises, managing dispersed centers of technology, engineering, production, and resources. Intelligent connected products, along with network communications, software, and analytics now enable manufacturers to improve uptime and optimize operating performance. This is the age of the Digital Enterprise. Attend ARC’s 15th India Forum to gain insights into innovative technologies and solutions in a smart, connected and increasingly digitalized world. For details contact: G. Ganapathiraman Country Manager ARC Advisory Group, Bangalore Tel: 080-25547114 ramang@arcweb.com

www.oswindia.com

Event: CHEMTECH Foundation will organise the 8th edition of Oil & Gas World Expo 2018 from March 1-3, 2018 in Mumbai, India. The international exhibition and conference aims to connect, discuss and comprehend the views of leaders, policy makers, regulatory authorities, and service providers of the Indian and Global hydrocarbon 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: www.chemtech-online.com

NAPEC Date: March 21-24, 2017 Venue: Convention Centre, Mohamed Benahmed Oran Algerie Event: TNAPEC (NORTH AFRICA PETROLEUM EXHIBITION & CONFERENCE) is a trade fair which is dedicated to the activities of Upstream, Midstream and Downstream on all products and providers, services and technologies that revolve around oil and gas activity. It will provide a platform to meet the makers of the North African oil sector, develop client portfolio, best business opportunities, introduce new products, enrich your customer B to B, and multiply your contacts. For details contact: Petroleum Industry Communication 06 Route Sidi Youcef Algiers Algeria Tel: +213 (0) 70 770 94 69 Fax: +213 23 23 67 74 Email: contact@napec-dz.com Web: www.napec-dz.com

Offshore World | 56 | February-March 2017

MARKETING INITIATIVE

Line of High-Temperature Ratio Pyrometers Expanded

ider temperature range, new application areasIllustration:

focus options are available, for example, an on-board camera for video

New high-precision ratio pyrometers enable continuous visual

sighting via Ethernet. A dir ty lens alarm helps avoid unneeded periodic

process monitoring in the harshest industrial environments

lens cleaning checks. All Endurance series pyrometers are offered with a best-in-class four-year warranty.

Fluke Process Instruments has added four new single -color and twocolor pyrometers to the Endurance series. The series now covers measured temperatures from 50 °C to 3,200 °C. The manufacturer has enhanced the maximum optical resolution from 150:1 to 300:1, enabling measuring of even smaller targets from a distance. A new low-temp ratio pyrometer for demanding applications measures temperatures from 250 °C. The sensors feature galvanically isolated inputs/outputs and a stainless steel IP65 housing.

India: india@flukeprocessinstruments.com About Fluke Process Instruments

Fluke Process Instruments designs, manufactures, and markets a complete line of infrared temperature measurement and profiling solutions for industrial, maintenance, and quality control applications. Distributed worldwide under the Raytek, Ircon, and Datapaq brands, the products reflect the combined experience of over 125 years in manufacturing the world´s finest temperature measurement tools and devices.

They withstand ambient temperatures up to 65 °C or up to 315 °C using cooling accessories. Application areas include primar y and secondar y

About Fluke

metals manufac turing, carbon processing, silicon produc tion, and

Founded in 1948, Fluke Corporation is the world leader in compac t,

now also foundries and welding, as well as rubber and thick plastics.

professional elec tronic test tools. Fluke customers are technicians,

The Endurance series offers a versatile range of models with wide

engineers, elec tricians, and metrologists who install, troubleshoot,

temperature ranges and different wavelengths for precise process

a n d m a n a g e i n d u s t r i a l, e l e c t r i ca l, a n d e l e c t ro n i c e q u i p m e nt a n d

data that will help manufacturers reduce reject rates, improve product

calibration processes.

qualit y and uniformit y, maximize throughput, and minimize energy costs. The sensors operate with Power over Ethernet or DC power and inter face to Ethernet, ProfiNet, and RS-485. A backlit rear-panel with tactile feedback allows for easy, intuitive navigation. The PC-based Endurance software simplifies configuration and deployment, and a built-in web ser ver enables archiving of historical data for traceability, process troubleshooting and remote viewing. Various lens, sighting, and

Fluke Process Instruments Raytek GmbH Blankenburger Str. 135 13127 Berlin Germany Clothilde Bugnard Phone: +49 (30) 478008-420 Fax: +49 (30) 4710251 clothilde.bugnard@fluke.com www.flukeprocessinstruments.com Offshore World | 57 | February-March 2017

www.oswindia.com

BOOKSHELF

Harness Oil and Gas Big Data with Analytics Author: Keith R. Holdaway Publisher: Wiley Hardcover: 376 pages About Book: The book covers the three major issues facing the oil and gas industry in the exploration and production stages: (1) data management, (2) quantification of uncertainty and (3) risk assessment. In addition, it discusses exploration, appraisal, development and production stages through real and imaginary but plausible projects with case studies. The book shows how to model big data with analytics to highlight business benefits. The book discusses and embraces a wide array of soft-computing techniques applicable in the oil and gas industry by extensively using data, statistics and quantitative analysis, explanatory and predictive modelling, and fact-based management to drive decision making.

Energy Trading & Investing: Trading, Risk Management, and Structuring Deals in the Energy Markets, Second Edition Author: Davis W. Edwards Publisher: McGraw-Hill Education Hardcover: 512 pages About Book: Energy Trading & Investing, Second Edition, brings readers up to date on the energy revolutions that are changing the world â&#x20AC;&#x201C;i.e. how fracking has the U.S. awash in cheap oil and natural gas; how alternative energy technologies like solar and wind are shaking up utilities; and how changes in the electrical grid are being addressed by multi-state organizations.A long-time veteran of the energy markets, Edwards offers practical advice to help energy investors choose profitable energy investments. The book comprehends information to assist small and large investors, candidates for MBAs and finance degrees, and professionals in risk management to understand the risks and benefits of the energy industry.

Fluid Dynamics of Oil and Gas Reservoirs Authors: M. Z. Rachinsky, V. Y. Kerimov Publisher: John Wiley & Sons Hardcover: 640 pages About Book: The book incorporates new, tested methods of more efficient oil and gas exploration and production and better estimating methods. The book is useful in the prediction of crude oil composition, pore size distribution in reser voir rocks, groundwater contamination, and other types of forecasting fruitful in the real world applications. It is helpful for both- the petroleum engineering student as a tex tbook and the veteran engineer working in the field for reference.

www.oswindia.com

Offshore World | 58 | February-March 2017