WINTECH PROFESSIONAL INSTITUTE OIL AND GAS DEPARTMEN PROJECT REPORT

SUBJECT:

THE OPERATIONS AT THE LEAST AUTOMATIC CUSTODY TRANSFERE UNIT [ LACT] UNIT

ENOCH LAMPTEY CHRISTIAN MENSAH YOUSSOUF MAHAMAT

PREFACE
This Project work is embodied with illustrations which brings out the fullest meaning of the topics and terms used. This book is unique in terms of its composition as we took into consideration the understanding of a novice in the study of this book.

I.

ACKNOWLEDGEMENT
All thanks to the Almighty God who has made it possible for us to come out with this project work. Also we want to acknowledge our supervisor Mr. Prince Charles Meshach for his supervising role. We also want to thank Mr. Benjamin Williams who supported with the typing of this project work.

II.

DEDICATION
This book is dedicated to Jehovah Nissi (The Lord our banner) for we do not merit all that we have. All has been given to us by his grace. Many are the blessings received from Him daily, without praying for them. We also dedicate this book to all lecturers of the Oil and Gas Department of the school, particularly to Mr. Sampson Zickson for his numerous contribution and hard work towards the teaching and studying of Oil and Gas Engineering.

III.

AIM AND OBJECTIVE

The main aim of this project work is to give an understanding about the operations at the least Automatic Custody Transfer Unit. It also highlights the measurement and metering of Oil and Gas.

IV.

CONTENT

PAGE
I

Preface.

Acknowledgement . II Dedication III Aim and Objective .. IV Introduction.VII

Chapter One
Oil and Gas Legislature In Ghana..1

Chapter Two
Petroleum literature.2

Chapter Three
Composition Of Crude Oil3..4

Chapter Four
Crude oil Reservoir And Reserves

5..7

Chapter Five
Classification And Pricing Of Crude Oil

8..9

Chapter Six
Uses of petroleum products 10

Chapter Seven
Environmental Effect Of Petroleum

..11
V.

CONTENT Chapter Eight Upstream Operations y y y

Introduction Exploration Extration

PAGE

........12 ..13..15 .16..20

.21..24

y Processing of crude oil

Chapter Nine Well Stream Treatment y y y

Oil Treatment Gas Treatment Produced Water Treatment

.........25..29
30..32

..33..34

Chapter Ten
Metering,Storage And Export of crude oil

..35..38

Chapter Eleven
Content of project .39..44

Chapter Twelve
Summary.45..47

vi.

INTRODUCTION
By the words Oil and Gas, we are actually shortening the words, Crude Oil and Natural Gas. Crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights, and other organic compounds, which is found in geologic formations beneath the earth's surface. Natural gas on the hand is gas found in porous rock formations as free gas in contact with crude oil or dissolved in solution with crude oil. Processing and conditioning into a finished product results in natural gas becoming composed mostly of methane and ethane and is known as Liquified Natural Gas (LNG). Also closely linked to these words is the term Petroleum (from Greeklit. "Rock oil"). In its strictest sense, petroleum refers only to crude oil, but in common usage it includes both crude oil and natural gas.. Petroleum is vital to many industries, and is of importance to the maintenance of industrialized civilization itself, and thus is critical concern to many nations. The petroleum industry is usually divided into three major components:Upstream, Midstream and Downstream. The upstream industry is involved in the processes of exploration and extraction. The midstream industry is involved in the process of transportation of petroleum by tanker ships from the production platform or FPSO. However the best way to get the product to the refinery is by pipeline. The downstream industry involves the process of refining, distribution(often with oil tankers and -pipelines), and marketing petroleum products.Oil has been used for lighting purposes for many thousand years. In areas where oil is found in shallow reservoirs, seeps of crude oil or gas may naturally develop, and some oil could simply be collected from seepage or tar ponds.Many large companies operate globally and are described as multi-nationals, whilst other smaller companies concentrate on specific areas of the world and are often referred to as independents. Frequently, a specific country has vested its interests in oil and gas in a national company, with its name often reflecting its national parenthood.In the upstream sector, much reliance is placed upon service and upon contractor companies who provide special technical services to the industry, ranging from geophysical surveys, drilling and cementing, to catering and hotel services in support of operations. Hydrocarbons are value commodities.At the point when custody or ownership of the hydrocarbon is transferred,the volume being transferred over to a second party has to be known precisely,to determine payement.In addition,it is important to know about volumes at other points along the production stream,to accommodate engineering and operating needs.Production engineers need to know the daily flow rates and the volume of water produced,to determine reservoir performance and operating efficiency.Accordingly,production is measured at a minimum of two locations-the wellhead and the point of custody transfer.Since the flow at the wellhead contains a combination of oil, gas,water, and maybe sand and other trash,the content has to be periodically sampled and anallysed for composition.Measurement at the point of ownership change is to assure proper payement.The final stage before the oil and gas leaves the platform consists of metering. Metering station allow operator to monitor the natural gas and oil exported from the production platform. This metering station use specialized meters to measure the natural gas or oil as it flows through the pipeline without impeding its movement. This metered volume represents a transfer of ownership from a producer to a customer or another division. Within the company and is therefore called CUSTODY TRANSFER METERING. At the point when custody or ownership of the hydrocarbon is transferred, the volume being turned over a second party has to be known precisely, to determine payment.

VII.

OIL/GAS LEGISLATION IN GHANA

In 1983 the government of Ghana established the Ghana National Petroleum Corporation (GNPC) to promote exploration and production of petroleum in the country. The GNPC is also the Ghanaian government agency, responsible for importing the country's crude and refined petroleum product requirements. In Ghana, petroleum operations are governed by the Petroleum Law of 1984 which empowers GNPC to operate in all open acreage of the country on its own or in association with foreign partners. The basic contract between the state, the GNPC and the private companies is the Production Sharing Agreement. Ghana has five sedimentary basins that are considered to have prospects for oil and gas. These are the Tano Basin, Saltpond Basin, Accra/Keta Basin, Volta Basin and the Cape Three Points Basin. Offshore exploration in Ghana began in the 1970s with moderate success. Phillips Energy made discoveries in the South Tano Field in 1978 and in the North Tano field in 1980. Although there was significant gas, Phillips decided that the fields were not commercially viable and relinquished them in 1982. The Ghana National Petroleum Company (GNPC) took over the operations of the Tano and Saltpond fields and produced 6,000 barrels per day (bbl/d) from Saltpond, which has subsequently been shut-in. Ghanas recoverable oil reserves are estimated at 16.5 million barrels and the gas reserves are estimated at 1.5 trillion cubic feet (Tcf). The three major exploration companies currently working in the country are Kosmos Energy, Tullow Oil Plc and Anadarko Petroleum corp. In 2007, Tullow Oil Plc made its Jubilee oil find offshore Ghana and is scheduled to start production in October, 2010. In the meantime, Ghana has issued 11 new exploration licenses and the prospects of more oil/gas finds are extremely high.

1.

PETROLEUM LITERATURE
According to generally accepted theory, petroleum is derived from ancient biomass. The theory was initially based on the isolation of molecules from petroleum that closely resemble known biomolecules.

(Figure 1) Structure of vanadium porphyrin compound extracted from petroleum by Alfred Treibs, father of organic geochemistry. Treibs noted the close structural similarity of this molecule and chlorophyll. More specifically, crude oil and natural gas are products of heating of ancient organic materials over geological time. Formation of petroleum occurs from hydrocarbon pyrolysis(cracking), in a variety of mostly endothermic reactions at high temperature and/or pressure. Today's oil is as a result of the preserved remains of prehistoric zooplankton and algae, which had settled to a sea or lake bottom in large quantities under anoxic conditions(the remains of prehistoric terrestial plant, on the other hand, tended to form coal).Over geological time the organic matter mixed with mud, and was buried under heavy layers of sediments resulting in high levels of heat and pressure(diagenesis). This process caused the organic matter to change, first into a waxy material known as kerogen, and then with more heat into liquid and gaseous hydrocarbons via a process known as catagenesis.Geologists often refer to the temperature range in which oil forms as an "oil window" below the minimum temperature oil remains trapped in the form of kerogen, and above the maximum temperature the oil is converted to natural gas through the process of thermal cracking. Sometimes, oil which is formed at extreme depths may migrate and become trapped at much shallower depths than where it was formed. Researchers at the University of Stavanger, Norway, have developed a theory known as the Golden Zone Theory, which can be important for future oil and gas exploration. The Golden Zone is the name of an underground zone where temperatures range between 60 and 120oC. The name refers to a new discovery that 90 per cent of the world's oil and gas reserves are to be found just there. The theory has been tested and verified against a global database containing 120 000 oil fields under production. This gives geologists a tool that makes it simpler and cheaper to find new offshore oil and gas reserves.

2.

COMPOSITION OF CRUDE OIL

Both crude oil and natural gas are predominantly a mixture of hydrocarbons. Under surface pressure and temperature conditions, the lighter hydrocarbons methane, ethane, propane and butane occur as gases, while the heavier ones from pentane upwards are in the form of liquids or solids. However, in the underground oil reservoir the proportion which is gas or liquid varies depending on the subsurface conditions, and on the phase diagram of the petroleum mixture. An oil well produces predominantly crude oil, with some natural gas dissolved in it. Because the pressure is lower at the surface than underground, some of the gas will come out of solution and be recovered (or burned) as associated gas or solution gas. A gas well produces predominately natural gas. However, because the underground temperature and pressure are higher than at the surface, the gas may contain heavier hydrocarbons such as pentane, hexane, and heptane in the gaseous state. Under surface conditions these will condense out of the gas and form natural gas liquids (NGL) often shortened to condensate. Condensate resembles gasoline in appearance and is similar in composition to some volatile light crude oils. When oil is brought to surface conditions it is usual for some natural gas to come out of solution. The gas/oil ratio (GOR) is the ratio of the volume of gas that comes out of solution, to the volume of oil at standard conditions. In fact gas dissolution and oil volume shrinkage will happen at many stages during the path of the hydrocarbon stream from reservoir through the wellbore and processing plant to export. The proportion of hydrocarbons in petroleum mixture is highly variable between different oil fields and ranges from as much as 97% by weight in the lighter oils to as little as 50% in the heavier oils and bitumens. The hydrocarbons in crude oil are mostly alkanes, cycloalkanes and various aromatic hydrocarbons while the other organic compounds contained are nitrogen, oxygen and sulphur, and trace amounts of metals such as iron, nickel, copper and vanadium.The exact molecular composition varies widely from formation to formation but the proportions of chemical elements vary over fairly narrow limits as follows: Carbon Hydrogen Nitrogen Oxygen Sulfur Metals 83 to 87% 10 to 14% 0.1 to 2% 0.1 to 1.5% 0.5 to 6% less than 1000 ppm

(Table 1) Composition of crude oil by weight

Four different types of hydrocarbon molecules appear in crude oil. The relative percentage of each varies from oil to oil, determining the properties of each oil. Hydrocarbon Paraffins Naphthenes Aromatics Asphaltics Average 30% 49% 15% 6% Range 15 to 60% 30 to 60% 3 to 30% remainder

(Table 2) The relative percentage of hydrocarbon molecules

3.

(Figure 2) A sample of medium heavy crude oil. Crude oil varies greatly in appearance depending on its composition. It is usually black or dark brown (although it may be yellowish or even greenish). In the reservoir it is usually found in association with natural gas, which being lighter forms a gas cap over the petroleum, and saline water which, being heavier than most forms of crude oil, generally sinks beneath iPetroleum is a mixture of a very large number of different hydrocarbons; the most commonl found molecule are alkanes (linearorbranched),cycloalkanes(naphthenes), aromatic hydrocarbons, or more complicated chemicals like asphaltenes. Each petroleum variety has a unique mix of molecules, which define its physical and chemical properties, like colour and viscosity.The alkanes, also known as paraffins, are saturated hydrocarbons with straight or branched chains which contain only carbon and hydrogen and have the general formula CnH2n+2.They generally have from 5 to 40 carbon atoms per molecule, although trace amounts of shorter or longer molecules may be present in the mixture.The alkanes from pentane (C5H12) to octane (C8H18) are refined into gasoline (petrol), the ones from nonane (C9H20) to hexadecane (C16H34) into kerosene and diesel fuel , anThe aromatic hydrocarbons are unsaturated hydrocarbons which have one or more planar six-carbon rings called benzene rings, to which hydrogen atoms are attached with the formula CnHn. They tend to burn with a sooty flame,and many have a sweet aroma. The amount of various molecules in an oil sample can be determined in the laboratory. The molecules are typically extracted in a solvent, then separated in a gas chromatograph, and finally determined with a suitable detector, such as a flame ionization detector or a mass spectrometer. Incomplete combustion of petroleum or gasoline results in production of toxic byproducts. Too little oxygen results in carbon monoxide. Due to the high temperatures and high pressures involved, exhaust gases from gasoline combustion in car engines usually include nitrogen oxides which are responsible for creation of photochemical smog.

4.

CRUDE OIL RESERVOIR AND RESERVES

There are 2 broad types of crude oil namely; Conventional oil and Unconventional oil. Conventional crude oil reserves include all crude oil that is technically possible to produce from reservoirs through a well bore, using primary, secondary, improved, enhanced, or tertiary methods. On the other hand, unconventional oil is the crude oil type found in semi-solid form mixed with sand and water (oil sands) or as oil shales and requires specialized extraction technology to produce.Three conditions must be present for oil reservoirs to form: a source rock rich in hydrocarbon material buried deep enough for subterranean heat to cook it into oil; a porous and permeable rock for it to accumulate in; and a cap rock (seal) or other mechanism that prevents it from

escaping to the surface. Within these rock formations, fluids will typically organize themselves like a threelayer cake with a layer of water below the oil layer and a layer of gas above it, although the different layers vary in size between reservoirs. Because most hydrocarbons are lighter than rock or water, they often migrate upward through adjacent rock layers until either reaching the surface or becoming trapped within porous rocks known as oil reservoirs by impermeable rocks above. However, the process is influenced by underground water flows, causing oil to migrate hundreds of kilometres horizontally or even short distances downward before becoming trapped in a reservoir. When hydrocarbons are concentrated in a trap, an oil field forms, from which the liquid can be extracted by drilling and pumping.

(Figure 3) A figurative example of an oil reservoir Oil-eating bacteria biodegrades oil that has escaped to the surface. Oil sands are reservoirs of partially biodegraded oil still in the process of escaping and being biodegraded, but they contain so much migrating oil that, although most of it has escaped, vast amounts are still presentmore than can be found in conventional oil reservoirs. The lighter fractions of the crude oil are destroyed first, resulting in reservoirs containing an extremely heavy form of crude oil. An example is the Athabasca oil sands in Canada, where it is usually referred to as crude bitumen. In Canada, bitumen is considered a sticky, tar-like form of crude oil which is so thick and heavy that it must be heated or diluted before it will flow. Venezuela also has large amounts of oil in the Orinoco oil sands, although the hydrocarbons trapped in them are more fluid than in Canada and are usually called extra heavy oil. These two countries have the world's largest deposits of oil sands. Between them, Canada and Venezuela contain an estimated 3.6 trillion barrels (570109 m3) of bitumen and extra-heavy oil, about twice the volume of the world's reserves of conventional Oil

5.
.On the other hand, oil shales are source rocks that have not been exposed to heat or pressure long enough to convert their trapped hydrocarbons into crude oil. Technically speaking, oil shales are not really shales and do not really contain oil, but are usually relatively hard rocks called marls containing a waxy substance called kerogen. The kerogen trapped in the rock can be converted into crude oil using heat and pressure to simulate natural processes. An example of an oil shale is the Green River Formation in Colorado, Utah, and Wyoming in the United States.Oil reserves are the estimated quantities of crude oil that are claimed to be recoverable from an oil reservoir under existing economic and operating conditions. The total estimated amount of oil in an oil reservoir, including both producible and non-producible oil, is called oil in place. However, because of reservoir characteristics and limitations in petroleum extraction technologies, only a fraction of this oil can

be brought to the surface, and it is only this producible fraction that is considered to be reserves. The ratio of producible oil reserves to total oil in place for a given field is often referred to as the recovery factor. Recovery factors vary greatly among oil fields. The recovery factor of any particular field may change over time based on operating history and in response to changes in technology and economics. The recovery factor may also rise over time if additional investment is made in enhanced oil recovery techniques such as gas injection, waterflooding, or microbial enhanced oil recovery. Reserves must satisfy four criteria: They must be:
   

Discovered through one or more exploratory wells. Recoverable using existing technology. Commercially viable. Remaining in the ground.

All reserve estimates involve uncertainty, depending on the amount of reliable geologic and engineering data available and the interpretation of those data. The relative degree of uncertainty can be expressed by dividing reserves into 3 classifications proved, probable and possible. The most commonly accepted definitions of these are based on those approved by the Society of Petroleum Engineers (SPE) and the World Petroleum Council (WPC) in 1997. Proved reserves are those reserves claimed to have a reasonable certainty (normally at least 90% confidence) of being recoverable under existing economic and political conditions, with existing technology. Industry specialists refer to this as P90 (i.e. having a 90% certainty of being produced). Proved reserves are also known in the industry as 1P. Proved reserves are further subdivided into Proved Developed (PD) and Proved Undeveloped (PUD). PD reserves are reserves that can be produced with existing wells and perforations, or from additional reservoirs where minimal additional investment (operating expense) is required. PUD reserves require additional capital investment (e.g. drilling new wells) to bring the oil to the surface. Proved reserves are the only type the U.S. Securities and Exchange Commission allows oil companies to report to investors.Probable reserves are attributed to known accumulations, and claim a 50% confidence level of recovery. Industry specialists refer to this as P50 (i.e. having a 50% certainty of being produced). Referred to in the industry as 2P (proved plus probable). Possible reserves are attributed to known accumulations which have a less likely chance of being recovered than probable reserves. This term is often used for reserves which are claimed to have at least a 10% certainty of being produced (P10). Reasons for classifying reserves as possible include varying interpretations of geology, reserves not producible at commercial rates, uncertainty due to reserve infill (seepage from adjacent areas), projected reserves based on future recovery methods. Referred to in the industry as 3P (proved plus probable plus possible).

6.
A more sophisticated system of evaluating petroleum accumulations was adopted in 2007 by the Society of Petroleum Engineers (SPE), World Petroleum Council (WPC), American Association of Petroleum Geologists (AAPG), and Society of Petroleum Evaluation Engineers (SPEE). It incorporates the 1997 definitions for reserves, but adds categories for contingent resources and prospective resources .Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. Contingent resources may include, for example,

projects for which there are currently no viable markets, or commercial recovery is dependent on technology under development, or evaluation of the accumulation is insufficient to clearly assess commerciality. Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development.Unconventional sources, such as heavy crude oil, oil sands, and oil shales are not counted as part of oil reserves. However, oil companies can book them as proven reserves after opening a strip mine or thermal facility for extraction. About 80% of the world's readily accessible reserves are located in the Middle East, with 62.5% coming from the Arab 5: Saudi Arabia, UAE, Iraq, Qatar and Kuwait.

(Figure 4) Most of the world's oil reserves are in the Middle East

7.

CLASSIFICATION AND PRICING OF CRUDE OIL

The petroleum industry generally classifies crude oil by the geographic location it is produced in, its API gravity (an oil industry measure of density), and by its sulphur content. Crude oil may be considered light if it has low density or heavy if it has high density; and it may be referred to as sweet if it contains relatively little sulphur or sour if it contains substantial amounts of sulphur.The geographic location is important

because it affects transportation costs to the refinery. Light crude oil is more desirable than heavy oil since it produces a higher yield of gasoline, while sweet oil commands a higher price than sour oil because it has fewer environmental problems and requires less refining to meet sulphur standards imposed on fuels in consuming countries. Each crude oil has unique molecular characteristics which are understood by the use of crude oil assay analysis in petroleum laboratories.Barrels (bbl) from an area in which the crude oil's molecular characteristics have been determined and the oil has been classified are used as pricing references throughout the world. Some of the common reference crudes are:
 West Texas Intermediate (WTI), a very high-quality, sweet, light oil delivered at Cushing, Oklahoma

for North American oil.

 Brent Blend, comprising 15 oils from fields in the Brent and Ninian systems in the East Shetland Basin

   

of the North Sea. The oil is landed at Sullom Voe terminal in the Shetlands. Oil production from Europe, Africa and Middle Eastern oil flowing West tends to be priced off this oil, which forms a benchmark. Dubai-Oman, used as benchmark for Middle East sour crude oil flowing to the Asia-Pacific region. Tapis (from Malaysia, used as a reference for light Far East oil) Minas (from Indonesia, used as a reference for heavy Far East oil) The OPEC Reference Basket, a weighted average of oil blends from various OPEC countries.

There are declining amounts of these benchmark oils being produced each year, so other oils are more commonly what is actually delivered. While the reference price may be for West Texas Intermediate delivered at Cushing, the actual oil being traded may be discounted Canadian heavy oil delivered at Hardisty, Alberta, and for a Brent Blend delivered at the Shetlands, it may be a Russian Export Blend delivered at the port of Primorsk.Factors affecting global oil supply and hence petroleum pricing is various. Entities such as governments or cartels can reduce supply to the world market by limiting access to the supply through nationalizing oil, cutting back on production, limiting drilling rights, imposing taxes, etc. International sanctions, corruption, and military conflicts can also reduce supply.

The nationalization of oil occurs as countries begin to deprivatize oil production and withhold exports. Politics have now entered the equation of oil supply, consequently some countries are becoming off limits for major oil companies. According to consulting firm PFC Energy, only 7% of the world's estimated oil and gas reserves are in countries that allow major oil companies free rein. The PFC study implies political factors are limiting capacity increases in Mexico, Venezuela, Iran, Iraq, Kuwait, and Russia.Cartel influence on supply is championed by OPEC. Before the establishment of OPEC, petroleum pricing was dictated by the Seven Sisters (Anglo-Iranian, Socony-Vacuum, Royal Dutch Shell, Gulf, Esso, Texaco, and Socal). 8. Nonetheless, OPEC's power was consolidated as various countries nationalized their oil holdings, and wrestled decision-making away from the "Seven Sisters."After the collapse of the OPEC-administered pricing system in 1985, and a short lived experiment with netback
pricing, oil-exporting countries adopted a market related price formulae mechanism. Netback is the summary of all the costs associated with bringing one unit of oil to the marketplace, and all of the revenues from the sale of all the products generated from that same unit The netback is calculated by taking all of the revenues from the oil, less all costs associated with getting the oil to a market. These costs can include, but are not limited to, importing, transportation, production and refining costs, and royalty fees. For example, let's say it costs a total

of US$125 to convert one barrel of light crude oil into heating oil, gasoline, diesel and petrochemical byproducts. Next, assume that all of these products could sell for a total of US$200. The netback in this example would be $75 ($200 - $125). First adopted by Petrleos Mexicanos (PEMEX) [Mexican Petroleum] in 1986, market related price formulae was widely accepted, and by 1988 became and still is the main method for pricing crude oil in international trade. The price formulae system links the price at which a producing country would sell its oil to that of the market price of reference crude. The idea is to ensure that the price at which a buyer will purchase OPEC crude will be equivalent to that of competing non-OPEC crude in the relevant importing region.The current references, or pricing markers, are Brent, WTI, and Dubai/Oman. The price of oil peaked on June 30, 2008 at over $143 a barrel. Before this period, the maximum inflation adjusted price was the equivalent of $95100, in 1980. In the past, the price of oil has led to economic recessions, such as the 1973 and 1979 energy crises. The effect the price of oil has on an economy is known as a price shock.

9.

USES OF PETROLEUM PRODUCTS

Energy demand is distributed amongst four broad sectors: transportation, residential, commercial, and industrial. Due to its high energy density, easy transportability and relative abundance, petroleum has become the world's most important source of energy since the mid-1950s. In terms of oil use, transportation is the largest sector and the one that has seen the largest growth in demand in recent decades. This growth has largely come due to the invention of the internal combustion engine and the rise in commercial aviation. The chemical structure of petroleum is heterogeneous, composed of hydrocarbon chains of different lengths.

Because of this, petroleum may be taken to oil refineries and the hydrocarbon chemicals separated by distillation and treated by other chemical processes, to be used for a variety of purposes. The most common distillations of petroleum are fuels. Fuels include:
      

Fuel gas (C1 to C3 ) Liquified petroleum gas (LPG) Gasoline (petrol) Aviation turbine kerosene (ATK ) Domestic purpose kerosene (DPK or Kero) Gas oil (diesel ) Fuel oil (residue)

The largest volume products of the industry are gasoline and fuel oil known as the primary energy with gasoline the most sought after refinery product. Gasoline and gas oil are extensively used as fuels for internal combustion engines whilst ATK is used as jet fuel in the aviation industry. DPK and LPG are used for heating and cooking. Fuel oil is mostly employed in the industry as boiler feed oil and also to fire furnaces. Fuel gas is normaly used by refineries themselves to fire furnaces and to maintain system pressures (operating pressures of vessels and columns). The remainder is flared off.Certain types of resultant hydrocarbons may be mixed with other non-hydrocarbons, to create other end products. This industry is called the petrochemical industry where other industrial products are produced from petroleum products. Examples are:
       

Alkenes (olefins) which can be manufactured into plastics or other compounds. Lubricants (produces light machine oils, motor oils, and greases). Wax, used in the packaging of frozen foods, among others. Sulphur or Sulphuric acid. Sulphuric acid is usually prepared as the acid precursor oleum, a byproduct of sulphur removal from fuels. These are useful industrial materials. Bulk tar. Asphalt. Petroleum coke, used in speciality carbon products or as solid fuel. Paraffin wax.

Aromatic petrochemicals to be used as precursors in other chemical production.

10.

ENVIRONMENTAL EFFECTS OF PETROLEUM

The presence of oil has significant social and environmental impacts, from accidents and routine activities such as seismic exploration, drilling, and generation of polluting wastes, greenhouse gases and climate change not produced by renewable energy. Extraction

Oil extraction is costly and sometimes environmentally damaging, although over 70% of the reserves in the world are associated with visible macroseepages, and many oil fields are found due to natural seeps. Offshore exploration and extraction of oil disturbs the surrounding marine environment. Extraction may involve dredging, which stirs up the seabed, killing the sea plants that marine creatures need to survive. Oil spills Crude oil and refined fuel spills from tanker ship accidents have damaged natural ecosystems in Alaska, the Galapagos Islands, France and many other places. The quantity of oil spilled during accidents has ranged from a few hundred tons to several hundred thousand tons (e.g., Atlantic Empress, Amoco Cadiz). Smaller spills have already proven to have a great impact on ecosystems, such as the Exxon Valdez oil spill.Oil spills at sea are generally much more damaging than those on land, since they can spread for hundreds of nautical miles in a thin oil slick which can cover beaches with a thin coating of oil. This can kill sea birds, mammals, shellfish and other organisms it coats. Oil spills on land are more readily containable if a makeshift earth dam can be rapidly bulldozed around the spill site before most of the oil escapes, and land animals can avoid the oil more easily. Burning refinery products Burning of petroleum products releases carbon dioxide and carbon monoxide into the atmosphere, which contributes to global warming. Refinery emissions (SOx, H2S, NOx) contain several major ozone precursors, whose associated impacts would be most significant near and downwind of a refinery.

11.

INTRODUCTION TO UPSTREAM OPERATIONS

The upstream petroleum industry is mainly divided into exploration and extraction. Exploration can be offshore or onshore. Onshore exploration is the type that occurs on land as opposed to offshore exploration that takes place subsea. Petroleum geology refers to the specific set of geological disciplines that are applied to the search for hydrocarbons (oil exploration).

OWNERSHIP Governments around the world, with a few exceptions (like Canada and the USA) own the minerals in their countries, both onshore and offshore, without regard to surface land ownership. In contrast, U. S residents can own both the surface of land and minerals under it, and they may sell or lease to whomever suits their fancies. Gaining access in the countries where the mineral rights are owned by the government requires competitive bidding or negotiation by the interested companies. Before bidding begins, the government will have divided its onshore and offshore area into blocks of land. Every government has a favourite form of contract or operating agreement. Some favour a profit sharing agreement that allows the operator to subtract portions of the investment and costs from revenue before sharing the profits with the host government. Others require that a state controlled company own a share of any discovery and share proportionally in the profits in a production sharing agreement. In any of these cases, the government reserves a royalty interest. Pooling Imagine a case where two blocks lying close to each other are leased to two different oil companies. One well is drilled on one block and a discovery is made in which seismic data clearly show to extend onto the other block. Geologic evidence and reservoir evaluation indicate that only one production platform and only a few wells are needed to drain the entire accumulation. Unless the ownership of the two blocks is pooled together, unnecessary investment in wells and production will be needed to protect the other block (undrilled block) from drainage. The solution is to pool the interest of the two parties, who must negotiate terms suitable to themselves and have that agreement approved by the government controlling company.

12.

EXPLORATION
Oil has been used for lighting purposes for many thousand years. In areas where oil is found in shallow reservoirs, seeps of crude oil or gas may naturally develop, and some oil could simply be collected from seepage or tar ponds. But it was not until 1859 that Colonel Edwin Drake drilled the first successful oil well, for the sole purpose of finding oil. Before 1897, oilmen were limited to onshore exploration due to the difficulty in surveying the subsurface. Even the first offshore production was just an extension of onshore fields. It was the start of seismic technology that enabled offshore exploration by allowing a look at the subsurface without surveying the surface. Seismic sequence stratigraphy analysis has greatly increased the accuracy of oil

exploration. Seismic sequence stratigraphy analysis is the integration of high-resolution biostratigraphic and paleobathymetric data, well-log signature and seismic-reflection profiles.Stratigraphy is the study of rock layers and the process of layering. Biostratigraphy is based on fossil presence in rock layers. Bathymetry is the study of underwater depth of lake or ocean floors. Palaeobathymetry is the study of ancient underwater depths. Well logging is the practice of making a detailed record of the geologic formations penetrated by a borehole. Seismic reflection is a method of exploration geophysics where the principles of seismology are used to estimate the properties of the subsurface from reflected seismic waves. Therefore the application of seismic sequence stratigraphy analysis to hydrocarbon exploration and production provides the ability to predict ahead of the drill bit the reservoir rock types present in different systems tracts. Seismic survey involves four steps; acquisition, processing, display and interpretation. Acquisition Onshore or offshore, the purpose of this phase is to collect seismic data that presents a picture of the subsurface rock layers and their structure. Onshore, geophones (sensors) are placed widely around a spot called the shot point, where large shock waves are released. The seismic source could be dynamite or a truck mounted plate that is pounded on the ground. Offshore, seismic vessels tow streamers (plastic tubes) containing hydrophones. The vessel also tows air guns or cans as the seismic source. As the guns create the waves, the seismic data collection takes place. As the source emits sound, the waves travels down through the water or directly into the ground., then the sound is reflected off (seismic reflection) the boundaries between different layers of rock, back to the surface, where the hydrophones or geophones pick up the echo. The deeper the rock layer, the longer time the echo takes to reach a phone. Also, the difference in fluid content in the rock layers affect the velocity of the echo hence interpretation is done. If the phones are placed in a straight line, the seismic record comes in two dimensional (2D) formats but if they are arranged in parallel lines, the record comes in three dimensional (3D) formats.

13.

Processing Some processing takes place at the recording site to organize the data, but most of it is performed using mainframe computers in processing centers.

Display Displays of 2D records provide first looks at the geology of the subsurface. Later, 3D seismic data along with geologic and engineering data are displayed in visualization rooms for the interpreters to work on.

Interpretation Everything discussed is in preparation for the final step of interpretation and making economic decisions that may lead to drilling. Teams of Geophysicists, Geologists, Petrophysicists and Engineers bring their special knowledge to the interpretation table because that is the most critical aspect of exploration.Petroleum geology is mainly concerned with the evaluation of seven key elements in sedimentary basins. The term sedimentary basin is used to refer to any geographical feature exhibiting subsidence and consequent infilling by sedimentation. As the sediments are buried, they are subjected to increasing pressure and begin the process of lithification. Lithification is the process in which sediments compact under pressure, expel fluid and become solid rock. The study of sedimentary basins as a specific subject in itself is often referred to as Basin modeling or Sedimentary Basin Analysis. The need to understand the processes of basin formation and evolution are not restricted to the purely academic. Indeed, sedimentary basins are the location for almost all of the world's hydrocarbon reserves and as such are the focus of intense commercial interest. The seven key elements in sedimentary basins are;  Source  Reservoir  Seal  Trap  Timing  Maturation  Migration In general, all these elements must be assessed through a window into the subsurface world, provided by one (or possibly more) exploration wells. These wells present only a 1D segment through the earth and the skill of reading 3D characteristics from them is one of the most fundamental in petroleum geology. Evaluation of the seven key elements in sedimentary basins Evaluation of the source uses the methods of geochemistry to quantify the nature of organic-rich rocks which contain the precursors to hydrocarbons, such that the type and quality of expelled hydrocarbon can be assessed.The reservoir is a porous and permeable lithological unit or set of units that holds the hydrocarbon reserves. Analysis of reservoirs at the simplest level requires an assessment of their porosity (to calculate the volume of hydrocarbons) and their permeability (to calculate how easily hydrocarbons will flow out of them). The seal, or cap rock, is a unit with low permeability that impedes the escape of hydrocarbons from the reservoir rock. Common seals include evaporites, chalks and shales. Analysis of seals involves assessment of their thickness and extent, such that their effectiveness can be quantified

14.
.The trap is the stratigraphic or structural feature that ensures the positioning of reservoir and seal such that hydrocarbons remain trapped in the subsurface, rather than escaping and being lost. Analysis of maturation involves assessing the thermal history of the source rock in order to make predictions of the amount and timing of hydrocarbon generation. Finally, careful studies of migration reveal information on how hydrocarbons move from source to reservoir and help quantify the source (or kitchen) of hydrocarbons in a particular area.

15.

EXTRACTION
The main aspects of extraction are; drilling, well completion, oil/gas production and processing and storage. Drilling When 3D seismic analysis has been completed and the decision of hydrocarbon accumulation is arrived at, a reservoir is chosen and a well is drilled. Normally drilling rigs either on mobile onshore units or offshore floating rigs are used. Drilling is done in two main ways;

 Punching a hole using a large chisel shaped device (cable tool drilling).  Rotating a bit on a shaft very much like drilling a hole in a piece of wood (rotary drilling). In cable tool drilling, a hole is punched in the ground by dropping a heavy bit repeatedly with so much force that the rock on which it hits cracks. After awhile, so much rock breaks that it cushions any more blows of the bit. To drill deeper, the rock fragments are removed from the hole with a bailer before drilling continues.In rotary drilling, a drill bit is fitted to a drill string and rotated by a system to penetrate rocks. The bottom hole rock chips are removed by circulating fluid (drilling mud) down the drill pipe, around the drill bit, and back to the surface outside the drill pipe, carrying the rock chips with it. The drilling mud also has the added use of lubricating and cooling the bit, containing the earths pressure to prevent a blowout and preventing the hole from collapsing. The most common drill bits used are the tricone bits and polycrystalline diamond compact (PDC) bits.

(Figure 7) Tricone bits

(Figure 8) A PDC bit

16.

Most modern day drilling rigs employ the rotary drilling method. The rotary rig is composed of;       A derrick. A hoisting system. Rig floor. A mud mixing and circulating system. An equipment to hold and rotate the drill string (Kelly) and a top drive rig engine. Blowout preventers (BOP) stack.

To prevent an uncontrolled blow out, a subsurface safety valve is BOP stack often installed. This valve has enough closing force to seal the well and cut the drill string in an uncontrollable blow-out situation. In the case of offshore drilling, risers are used. Riser is a system that allows a pipeline to rise up from the seabed to the offshore rig floor.

(Figure 9) A rotary rig Well completion: Well completion commonly refers to the process of finishing a well so that it is ready to produce oil or natural gas. Completing a well consists of a number of steps;

   

Installing the well casing. Cementing the wellbore. Installing lifting equipment (production tubing). Installing the wellhead.

17.
Installing well casing is an important part of the drilling and completion process. Well casing consists of a series of metal tubes installed in the freshly drilled hole. Casing serves to strengthen the sides of the well hole, ensure that no oil or natural gas seeps out of the well hole as it is brought to the surface, and to keep other fluids or gases from seeping into the hydrocarbon formation through the well. Without casing and without mud circulation, the open hole will collapse. With a solid string of production casing in place, cement slurry is pumped down the inside of the casing and up the annular space between the outside of the casing and the wellbore. The casing and its surrounding cement is then perforated opposite the hydrocarbon intervals so that the fluids in the reservoir can flow into the wellbore.Once the production casing is installed and the wellbore is cemented, production tubing is inserted inside the casing, from the opening well at the top, to the formation at

the bottom. The hydrocarbons that are extracted run up this tubing to the surface. The production casing is typically 5 to 28 cm (2 -11 in) with most production wells being 6 in or more. The next operation is to install a wellhead. The wellhead consists of pieces of equipment mounted at the opening of the well to regulate and monitor the extraction of hydrocarbons from the underground formation. It also prevents leaking of oil or natural gas out of the well, and prevents blowouts due to high pressure formations. Formations that are under high pressure typically require wellheads that can withstand a great deal of upward pressure from the escaping gases and liquids. The wellhead is also called a Christmas tree. The production tubing is run through the wellhead and secured by a tubing hanger. Well Testing When a well is ready to produce for the first time, the producing staff has an estimate of what will come out oil, gas or a combination. Still they will want to know how much and under what pressure, to better understand the reservoirs mechanics and to design the facilities needed to process the production. An initial well test, the potential test, provides a best estimate of the maximum daily producing capability of a well. Engineers also calculate the amount of hydrocarbons (original oil in place) that have been discovered before production begins.

For oil,

N = (1- Sw) p A h Bo 7758

And for gas,

G = (1- Sw) p A h (1/Bg) 43560

18.

Where; N is the total oil in place (in barrels, bbls)  G is the total gas in place (in cubic feet, ft3)  Sw is the water saturation of the formation  p is the porosity of the formation  A is the drainage area (in acres)  h is the net pay thickness (the thickness of the formation)

 Bo is the oil shrinkage factor (a measure of how much oil shrinks as it reaches surface temperature and pressure)

 1/Bg is the gas formation volume factor (a measure of how much gas expands when it reaches surface temperature and pressure)  7758 is a constant to convert acre-feet into barrels  43560 is to convert acres into square feet Production Wells are divided into production wells and injection wells. A production well through which actual removal of oil and gas takes place whilst injection wells are drilled to inject gas or water into low pressure reservoirs. The purpose of injection is to maintain reservoir pressure and force the oil toward the production wells. Injection wells are fundamentally the same as production well except the direction of flow and therefore directional components are mounted to direct the flow.The producing life of an oil/gas well can be divided into phases, each defined by the amount of pressure in the reservoir. The various production phases are;

 Primary recovery  Secondary recovery.  Tertiary/ Enhanced recovery. Primary recovery processes are basically; natural flow and artificial lift. A natural flow is when a free flowing oil well has enough downhole pressure to reach a suitable wellhead production pressure and maintain an acceptable well-flow. Natural flow is the most profitable stage of a wells producing life. Reservoir pressure reduces in proportion to the total volume of fluid that leaves the well. As the hydrocarbons are produced, water fills the space left by the oil and gas. This is a good thing as it helps to slow down reduction in the reservoir pressure until the water reaches the wellbore, then it becomes bad since it enters the tubing resulting in killing the well (causing natural flow to cease). 19. If the reservoir pressure is too low, and water or gas injection is not suitable, then the well must be artificially lifted. The simplest way to produce a well that no longer flows is to pump the oil-water mixture
out of the well. The oldest system is known as the beam pumping or sucker rod pumping. It involves placing a positive displacement pump through the production tubing to the bottom of the wellbore. This system can only pump oil to about 500 bbl/day.

(Figure 10) A beam pumping unit (pump jack)

Another way to pump oil from a well that requires large barrels is to use a downhole pump. Downhole pumps insert the whole pumping mechanism into the well. In modern installations, an Electrical Submerged Pump (ESP) is mostly used. At a point during production, the reservoir pressure gets so low that pumping can no longer bring hydrocarbons to the surface. Secondary recovery processes tend to help to raise well pressure so that pumping can resume again. One such process is to inject water into an injection well to push oil towards the producing well in a move known as waterflooding. This helps to raise the natural reservoir pressure hence an increase in the hydrocarbon production.Waterflooding does not work if the oil is heavy since the water tends to swerve around the heavy oil and tends to reach the producing well first. Tertiary or enhanced oil recovery is used to address this situation by using steam (steam flooding) instead of water. Another method is to inject carbon dioxide (CO2 flooding). Primary production plus water flooding followed by CO2 flooding may recover as much as 60% of the total oil in place in the reservoir. Sadly, the remainder remains behind.

20.

PROCESSING
Production from modern days wells flows carefully to the surface through the production tubing, into surface piping through valves and regulators carefully adjusted to deal with rates and pressures, and on to the surface processing facilities. The oil and gas processing step is the process that takes the product from the wellhead manifolds and delivers stabilized marketable products, in the form of Crude Oil, Condensate or Natural Gas.

The ultimate objective of field processing is to deliver oil and gas separatelyoil to temporary storage facilities and gas to a pipeline.After the well stream leaves the Christmas tree, separating it into gross components (mostly oil, mostly gas, and mostly water) is the first order of business. This is done as early as practical because it is easier to treat each phase separately. Production separators are used to achieve this initial step. Separators come in different shapes are normally named according to their shapes; vertical, horizontal or spherical (not too common). Vertical separators are used mostly for oil wells whilst horizontal separators are employed by gas wells. Test separators are also employed to separate the well flow from one or more wells for analysis and detailed flow measurement. In this way, the behavior of each well under different pressure flow conditions can be determined. Production separation actually occurs in three stages at the processing plant. The pressure in a new well may be up to 600 bars, hence there is the need to reduce this pressure in several stages; here three stages are used, to allow controlled separation of volatile components. The purpose is to achieve maximum liquid recovery and stabilized oil and gas, and separate water. A large pressure reduction in a single separator will cause flash vaporization leading to instabilities and safety hazards. A production choke reduces well pressure to the high pressure (HP) manifold and the first stage separator to about 30-50 bar. Inlet temperature is often in the range of 100-150 C.

(Figure 11) Three phase horizontal separator

21.

The retention period (time fluid spends in the separator) is typically 5 minutes, allowing the gas to bubble out, water to settle at the bottom and oil to be taken out in the middle. In this platform the water cut (percentage water in the well flow) is almost 40% which is quite high. In the first stage separator, the water content is typically reduced to less than 5%. At the crude entrance there is a baffle slug catcher that reduces the effect of slugs (large gas bubbles). The liquid outlets from the separator will be equipped with vortex breakers to reduce disturbance on the liquid table inside. Similarly the gas outlets are equipped with demisters that essentially act

as filters to remove liquid droplets in the gas.The second stage separator is quite similar to the first stage HP separator. In addition to output from the first stage, it will also receive production from wells connected to the Low Pressure (LP) manifold. The pressure is now around 10 bars and temperature below 100 C. The water content will be reduced to below 2%. A heat exchanger could be located between the first and second stage separator to reheat the oil/water/gas mixture. This will make it easier to separate out water when initial water cut is high and temperature is low.The third stage separator is a two phase separator, also called a flashdrum. The pressure is now reduced to about 1 bar so that the last heavy gas components will boil out. In some processes where the initial temperature is low, it might be necessary to heat the liquid (in a heat exchanger) again before the flash drum to achieve good separation of the heavy components. As an alternative, when the production is mainly gas, and remaining liquid droplets have to be separated out, the two phase separator can be a Knock-Out Drum.

(Figure 12) A two phase third stage separator After the third stage separator, the separated components go through their own processing lines; oil through a coalescer and/or desalter, gas through a gas conditioning system, and water through a produced water treatment systemThe final stage before the oil and gas leaves the platform consists of metering (measurement), storage, and transfer to loading tankers. Metering stations allow operators to monitor and manage the natural gas and oil exported from the production installation.

22.
These metering stations use specialized meters to measure the natural gas or oil as it flows through the pipeline, without impeding its movement. This metered volume represents a transfer of ownership from a producer to a customer or another division within the company and is therefore called Custody Transfer Metering. It forms the basis for invoicing sold product and also for production taxes and revenue sharing between partners and accuracy requirements are often set by governmental authoritiesAt the point when custody or ownership of the hydrocarbon is transferred, the volume being turned over to a second party has to be known precisely, to determine payment. Also production engineers need to know the daily flow rates

and the volume of the water produced, to determine reservoir performance and operating efficiency. Therefore, production is measured at a minimum of two locations the wellhead and the point of custody transfer. Since the flow at the wellhead contains a combination of oil, gas, water, and maybe sand and other trash, the content has to be periodically sampled and analyzed for composition. Measurement at the point of ownership change is to assure proper payment.Onshore, the individual well streams are brought into the main production facilities over a network of gathering pipelines and manifold systems. Offshore, the dry completed wells in the main field centre feed directly into production manifolds, while near wellheads feed through pipelines to the production risers.

(Figure 13) Gas lines gathering into a manifold

23.
On most production sites, the oil and gas is piped directly to a refinery or tanker terminal. Gas is difficult to store locally, but occasionally underground mines, caverns or salt deposits can be used to store gas. On offshore platforms without pipelines, oil is stored in onboardstorage tanks to be transported by shuttle tanker. For onshore, fixed roof tanks are used for crude, floating roof tanks for condensate. All tanks are located a place called the tank farm. A tank farm consists of 10-100 tanks of varying volume for a total capacity typically in the area of 1 - 50 million barrels. Storage for shuttle tankers normally store up to two weeks of production, one week for normal cycle and one extra week for delays e.g. bad weather.Marine loading systems consist of one or

more loading jetties, pumps, valves and a metering system. Tanker loading systems are complex, both because of the volume involved, and because several loading arms will normally interact with the tanker's ballast system to control the loading operation. The tanks must be filled in a certain sequence; otherwise the tanker's structure might be damaged due to uneven stresses. It is the responsibility of the tanker's ballast system to signal data to the loading system and to operate the different valves and monitor the tanks on board the ship.

24.

OIL TREATMENT
Oil must be clean to make it saleable.It must meet certain buyer specifications for sediment and water content. (BS W) standard limits are 0.1-3.1% by weigh. Oil treating refers to the methods used to remove sand, salt, water, sediments and other contaminants from oil. Water is the largest volume contaminant in either oil or gas.When it comes into contact with oil, it forms an emulsion.Methods to remove

sand,salt,water,sediments,and other contaminants come under the name oil treating.Fundamental to oil treating is using gravity to separate contaminants from the oil.Water is the largest-volume contaminant in either oil or gas production.In some cases,it exceeds 10 barrels of water per barrel of oil(a water-oil ratio{WOR] of 10) in older fields.In many situations,much of this water comes to the surface as an emulsion,which annoyingly will not separate in standard seperators.

An emulsion.

25. Oil-water emulsions can be broken through any of these ways:     heating the emulsion. adding demulsifying chemicals. applying electricity. increasing the settling time to allow the droplets to fall out of their own accord.

26.

HEATER TREATER
The heater is a device used to add heat to the well stream to break oil-water emulsions come in two shapes,vertical and horizontal, with a firebox at the bottom.The oil-water emulsion contacts the firebox directly to pick up the heat.At higher temperatures,the attraction of oil to water declines,and the water droplets settle out more rapidly.The fuel

for the firebox is either demulsified crude or natural gas.In the case of crude,it is fed by a small pipe from the body of the treater to the burner tips.Natural gas can be taken from any place in the gas system after the gas has been separated from any liquids and is clean enough for sale.

H orizontal Free water knock-out vessel (FWKO)

27. Heater treaters cannot handle much free water-vertical heater treaters are more limited than horizontal ones. Putting a free water knockout vessel (FWKO) upstream of the heater treater does the job.The size of the( FWKO) depends largely on the volume of fluids passing through it and the residence time to separate them.A well stream of 1,500 barrels per day calls for an FWKO with a volume of about 50 barrels.Another popular form of FWKO is a gun barrel.The tank is kept about one-third full of water.The production stream enters the top of the tank,well below the oil-water interface,where it exists the tube,rises across a

spreader plate ,and seperates. The oil rises to the top of the tank,and the water remains behind. Float valves maintain constant water and oil volumes in the tank, with the excess amounts going to their respective storage tanks.Another popular form of FWKO is a gun barrel,so called because of the vertical tube,the barrel,located in the middle of the tank.The tank is kept about one-third full of water.The production stream entersthe top of the tubeand flows to nearly the bottom of the tank,well below the oil-water interface,where it exits the tube,rises across a spreader plate,and seperates.The oil rises to the top of the tank,and the water remains behind.Float valves maintain constant water andoil volumes in the tank,with the excess amounts going their respective storage tanks.

A Typical Oil Field Processing Facilities.

28.

ELECTROSTATIC HEATER TREATER

When water droplets in an emulsion are very small,their weight allows them to settle only very slowly.However water molecules are polar-they carry an electric charge.In an electric field,the small droplets are attracted to each other.They coalesce into larger droplets and consequently separate more rapidly from the oil.Electrostatic heater treaters are similar to standard heaters except that they contain electrodes in the coalescing(quite)

section.Electrostatic heater treaters are more compact than heater treaters,making them preferred device where space is at a minimum and a large volume of crude must be treated.In addition,electric dehydration breaks down emulsions at temperatures that are only 20-40 degree farenheit.That saves fuel costs and reduces crude shrinkage and gravity loss.Choosing among combinations of FWKOs,heater treaters and electrostatic dehydrators is a trade-off between capital and operating costs.The electric units are more expensive at the outset,but operating cost and size restrictions sometimes make them the treater of choice.

Electrostatic Heater Treater.

29.

GAS TREATING
Gas treating or conditioning takes gas separated from the well stream and create a commodity safe for storage ,transportation and sale. Natural gas containing no H2S is called sweet gas. A gas with any appreciable amount of it is known as sour gas .There are several processes for recovering sulfur compounds from natural gas. The most prevalent methods are the batch and amine processes. In the batch process, the sour gas passes across some

reactant ,like ferric oxide ,in the form of iron filings. The hydrogen sulfide reacts with the iron, forming iron sulphid and a small amount of water. Eventually ,the iron sulphide builds up and the spen tiron oxide has to be changed out. Because of this the batch process is used where the gas flow rate and the hydrogen sulphide amounts are low. Liquid amines can also be used in high flow rate. In the amine process, the sour gas goes into the bottom of a treating vessel full of baffles.Liquid diethanolamine(DEA) is fed at the top of the treater. As the so called lean DEA sloshes past the gas ,it absorbs the H2S,allowing the gas to exit from the top of the treater as sweet gas.The purpose of glycol dehydration unit is to remove water from natural gas and natural gas liquids. When produced from a reservoir, natural gas usually contains a large amount of water and is typically completely saturated or at the water dew point. This water can cause several problems for downstream processes and equipment. At low temperatures the water can either freeze in piping or, as is more commonly the case, form hydrates with CO2 and hydrocarbons. Depending on composition, these hydrates can form at relatively high temperatures plugging equipment and piping. Glycol dehydration units depress the hydrate formation point of the gas through water removal.Without dehydration, a free water phase (liquid water) could also drop out of the natural gas as it is either cooled or the pressure is lowered through equipment and piping. This free water phase will contain some portions of acid gas (such as H2S and CO2) and can cause corrosion. For the above two reasons the Gas Processors Association sets out a pipeline quality specification for gas that the water content should not exceed 7 lb/MMSCF. Glycol dehydration units must typically meet this specification at a minimum, although further removal may be required if additional hydrate formation temperature depression is required, such as upstream of a cryogenic process or gas plant. is the most commonly used glycol in industry.

30.

PROCESS DESCRIPTION Lean, water-free glycol (purity >99%) is fed to the top of an absorber where it is contacted with the wet natural gas stream. The glycol removes water from the natural gas by physical absorption and is carried out the bottom of the column. Upon exiting the absorber the glycol stream is often referred to as "rich glycol". The dry natural gas leaves the top of the absorption column and is fed either to a pipeline system or to a gas plant. Glycol absorbers can be either tray columns or packed columns.After leaving the absorber, the rich glycol is fed to a flash

vessel where hydrocarbon vapors are removed and any liquid hydrocarbons are skimmed from the glycol. This step is necessary as the absorber is typically operated at high pressure and the pressure must be reduced before the regeneration step. Due to the composition of the rich glycol, a vapor phase having a high hydrocarbon content will form when the pressure is lowered.After leaving the flash vessel, the rich glycol is heated in a cross-exchanger and fed to the stripper (also known as a regenerator). The glycol stripper consists of a column, an overhead condenser, and a reboiler.The glycol is thermally regenerated to remove excess water and regain the high glycol purity.The hot, lean glycol is cooled by cross-exchange with rich glycol entering the stripper. It is then fed to a lean pump where its pressure is elevated to that of the glycol absorber. The lean solvent is cooled again with a trim cooler before being fed back into the absorber. This trim cooler can either be a cross-exchanger with the dry gas leaving the absorber or an aerial type cooler.
Enhanced Stripping Method.

Most glycol units are fairly uniform except for the regeneration step. Several methods are used to enhance the stripping of the glycol to higher purities (higher purities are required for dryer gas out of the absorber). Since the reboiler temperature is limited to 400F or less to prevent thermal degradation of the glycol, almost all of the enhanced systems center on lowering the partial pressure of water in the system to increase stripping.Common enhanced methods include the use of stripping gas, the use of a vacuum system (lowering the entire stripper pressure), the DRIZO process, which is similar to the use of stripping gas but uses a recoverable hydrocarbon solvent, and the Coldfinger process where the vapors in the reboiler are partially condensed and drawn out separately from the bulk liquid.In recent years, water content specifications have become increasingly stringent requiring higher glycol purities than previously available. This has led to the development of different proprietary technologies which make simple adaptations to conventional designs to achieve glycol purities in the 99.99% range.

31.

The so-called fat DEA comes out the bottom of the vessel and goes to a heater where the H2S flashes out easily.The cleaned-up amine is recycled to the treater. The H2S goes to a converter where it is turned into a disposable waste product. Amine treaters remove CO2 as well as H2S and An example process flow diagram for this system is shown below.

32.

PRODUCED WATER

TREATMENT

Produced water is separated from the production stream at the separator, at the FWKO, at the heater treater and at every possible opportunity during processing. If the water is to be injected into a subsurface formation either for disposal or as part of an enhanced oil recovery (EOR) project,it must have to be treated before injection. After separation from the oil and gas stream, the water contains harmful quantities of;  Suspended solids: removed by filtration and settling in tanks.  Suspended oil: removed by allowing the oil to float in skimmer tanks.  Corrosive acid gases (H2S, CO2): controlled by adding corrosion- inhibiting chemicals to the water stream.On an installation, when the water cut is high, there will be a huge amount of produced water. For example, a water cut of 40% gives a water production of about 4000 cubic meters per day (4 million liters) that must be cleaned before discharge to sea. Often this water contains sand particles bound to the oil/water emulsion.The environmental regulations in most countries are quite strict, as an example, in the NorthEast Atlantic the OSPAR convention limits oil in water discharged to sea to 40 mg/liter (ppm).It also places limits other forms of contaminants. This still means up to one barrel of oil per day for the above production, but in this form, the microscopic oil drops are broken down fast by natural bacteria.

33.

Various equipment is used; the illustration shows a typical water treatment system.Water from the separators and coalesce first goes to a sand cyclone, which removes most of the sand. The sand is further washed before it is discharged.The water then goes to a hydrocyclone, a centrifugal separator that will remove oil drops. The hydrocyclone creates a standing vortex where oil collects in the middle and water is forced to the side.Finally the water is collected in the water de-gassing drum. Dispersed gas will slowly rise to the surface and pull remaining oil droplets to the surface by flotation.The surface oil film is drained, and the produced water can be discharged to sea.Recovered oil in the water treatment system is typically recycled to the third stage separator.

34.

METERING,STORAGE AND EXPORT OF CRUDE OIL.

Most plants do not allow local gas storage, but oil is often stored before loading on a vessel, such as a shuttle tanker taking the oil to a larger tanker terminal, or direct to crude carrier. Offshore production facilities without a direct pipeline

Connection generally rely on crude storage in the base or hull, to allow a shuttle tanker to offload about once a week. A larger production complex generally has an associated tank farm terminal allowing the storage of different grades of crude to take up changes in demand, delays in transport etc.Metering stations allow operators to monitor and manage the natural gas and oil exported from the production installation.These metering stations employ specialized meters to measure the natural gas or oil as it flows through the pipeline without impeding its movement.This metered volume represents a transfer of ownership from a producer to a customer

35.

(or another division within the company) and is therefore called Custody Transfer Metering. It forms the basis for invoicing sold product and also for production taxes and revenue sharing between partners and accuracy requirements are often set by government authorities.Typically the metering installation consists of a number of meter runs so that one meter will not have to handle the full capacity range, and associated prover loops so that the meter accuracy can be tested and calibrated at regular intervals.

36.

Pipelines can measure anywhere from 6 to 48inches in diameter. In order to ensure the efficient and safe operation of the pipelines, operators routinely inspect their pipelines for corrosion and defects. This is done through the use of sophisticated pieces of equipment known as pigs. Pigs are intelligent robotic devices that are propelled down pipelines to evaluate the interior of the pipe.Pigs can test pipe thickness, and roundness, check for signs of corrosion, detect minute leaks, and any other defect along the interior of the pipeline that may either impede the flow of gas, or pose a potential safety risk for the operation of the pipeline. Sending a pig down a pipeline is fittingly known as 'pigging' the pipeline.

37.

The export facility must contain equipment to safely insert and retrieve pigs form the pipeline as well as depressurization, referred to as pig launchers and pig receivers Loading on tankers involve loading systems, ranging from tanker jetties to sophisticated single point mooring and loading systems that allow the

tanker to dockand load product even in bad weather.

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CONTENT OF PROJECT
Hydrocarbons are valued commodities.At the point when custody or ownership of the hydrocarbon is transferred,the volume being transferred over to a second party has to be known precisely,to determine payement.In addition,it is important to know about volumes at other points along the production stream,to accommodate engineering and operating needs.Production engineers need to know the daily flow rates and the volume of water produced, t determine reservoir performance and operating efficiency.Accordingly,production is measured at a minimum of two locations-the wellhead and the point of custody transfer.Since the flow at the wellhead contains a combination of oil, gas,water, and maybe sand and other trash,the content has to be periodically sampled and anallysed for composition.Measurement at the point of ownership change is to assure proper payement.The final stage before the oil and gas leaves the platform consists of metering. Metering station allow operator to monitor the natural gas and oil exported from the production platform. This metering station use specialized meters to measure the natural gas or oil as it flows through the pipeline without impeding its movement. This metered volume represents a transfer of ownership from a producer to a customer or another division. Within the company and is therefore called CUSTODY TRANSFER METERING. At the point when custody or ownership of the hydrocarbon is transferred, the volume being turned over a second party has to be known precisely, to determine payment. The two most common methods of measuring the volume of petroleum liquids are tank gauging and liquidmetering. The problems associated with tank gauging are (1) it requires that an operator make an accurate liquid level determination by climbing to the top of the tank to be gauged, (2) that an operator make an accurate average liquid temperature determination, (3) that an operator make an accurate sediment and water content analysis and (4) that the tank be static, which means that no liquid can enter or leave the tank during gauging.At more progressive leases,where oil continuosly transfers into a pipeline,LACT units perform the measurements.If delivery of the crude is into a pipeline,then a LACT unit and its meters is the method of measuring the shipment.LACT units are independently certified periodically with meter provers to satisfy both seller and buyer of accurate measurements.Offshore,production is metered directly into a pipeline or in some instances,the oil is temporarily moved into the tanks of an FPSO(a floating, production,storage and offloading vessel).In either case,the oil awaits a shuttle tanker to offload the oil and take it to market..Determining the precise size of the compartments on any of these vessels has to be done by certified meters.The oil is measured,usually by turbine meters,as it is transferred to the shuttle tanker.

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The central focus of the LACT unit is still the PD meter,but a handful of events take place continually and automatically before the oil reaches it.The lease Automatic transfer (L.A.C.T) unit is designed for the automatic transfer of ownership of crude or condensate between the buyer and seller.This can be on land or offshore, into pipelines, barges, and tanker loading and offloading operations.On land L.A.C.T units are usually small, single run systems with portable proving connections desingned for loading into trucks.

The basic components and function of a L.A.C.T unit are: 1.Charge pump and motor largely overlooked and undersized, special care should be taken into consideration during sizing to ensure correct NPSH is available to prevent cavitation,and discharge pressure enough to overcome pressure drop through the L.A.C.T to allow the required flow and pressure to the pipeline pump inlet.

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2.Strainer/Air Eliminator- Strains solids larger than the perforations in the removable basket with liner.They should have differential pressure indicator to show pressure drop caused by debris accumulation and be cleaned periodically. Essential to prevent premature meter wear or breakage. The air eliminator is located on top of the highest part of the system to allow air to be discharged and not metered. This should be piped with a soft-seated check valve to prevent air from being introduced into the system during shutdown 3. BS&W Probe and Monitor - An electronic device that is capable of determining the amount of Basic Sediment and Water (BS&W) is an integral part of most LACT Units. The system consists of an inline BS&W Probe that monitors the entire flowing stream and communicates to an electronic device, called a BS&W Monitor that produces an electrical control signal based on the amount of BS&W present in the flowing stream. The ability of this system to signal the LACT Unit on excess BS&W content insures that only the highest quality of Merchantable Oil is delivered to the Transport Carrier or the Pipeline Company. The electrical control signal feature of the BS&W Monitor is used to control a diverting valve that diverts the fluid stream back to a retreating facility whenever the BS&W content exceeds the Monitor setting. 4. Diverter Valve The diverter valve is a threeway, two position valve that is installed upstream of the meter and used to direct total fluid flow to either the meter or to the retreating facilities. The valve position is dependent upon the amount of BS&W in the flowing stream. When the Unit is shutdown or an excess amount of BS&W is detected, the valve is positioned for a normal diverter fail closed position. When the LACT Unit is running and the BS&W content is below the BS&W Monitor setting, the valve is positioned to a run position to allow total fluid flow through the meter. 5. Sampler System The sampler system consists of a probe that is used to retrieve are presentative sample of the flowing stream and a sampler container that is used to store the collected samples over a specified time period. The contents of the sample container are used to determine the true representative value of the entire metered stream during the custody transfer. The representative sample contents will determine composite API Gravity and the total percentage of BS&W.The sample container is a storage vessel that is used to collect the contents of all the samples taken and is sized to allow adequate storage during the total custody transfer period, usually 30 days. It Is important that the container be vapor tight to prevent the evaporation and loss of entrained vapors that could affect the composite API Gravity -thus affecting the total value of the product.

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6. Meter The meter is used to accurately and precisely measure the total fluid stream and to accumulate the total throughput. The most accurate meter used is the positive displacement meter.The positive displacement meter uses the energy of the flowing stream and divides the stream into small segments through rotation of an inner unit. This precise rotation is connected through a mechanical gear train to a mechanical counter to develop the total throughput of the LACT Unit. In order to provide the many functions required, the following meter accessories may be used: a. Automatic Temperature Compensator used to mechanically correct meter registration to abase of 60 degrees F. b. Low Resolution Transmitter used to electrically actuate the sampling system. c. Right Angle Drive - used to mechanically connect the gear train of the meter to a portable high resolution photoelectric transmitter that is used for meter proving and calibration. d. Counter a nonresettable type mechanical counter used to accumulate the total throughput of the LACT Unit. e. Meter Monitor Pulser an electrical transmitter that is mechanically attached to the counter to alarm the LACT Control Panel anytime the meter is not turning and the LACT Unit has been signaled to operate. 7. Meter Prover Loop The meter prover loop is a manifold using three valves connected to two tees. The typical arrangement is to install the valves and tees so that two of the valves are side mounted and one valve is inline. This arrangement allows another meter or prover system to be connected to the side mounted valves. By closing the inline valve, all fluid going through the meter would also go through the prover system. The inline valve becomes the inline prover valve and since every drop that goes through the meter must go through the prover system, it is necessary that this valve have special internal seats and seals so that any seal leakage can be detected.The tees that make up the meter prover loop are furnished with thermowells and pressure gauges that are used to compare flowing temperatures and pressures with the prover system during meter calibration. 8. Back Pressure Valve The back pressure valve is an automatic valve that is used to hold a minimum pressure against the entire LACT Unit. This valve is required to ensure that the meter always operates against a pressure above the vapor pressure of the fluid being metered. Vapor pressure is the minimum pressure and temperature required to maintain the product in the liquid state. When a centrifugal charge pump is used, the back pressure valve holds a constant pressure against the rump that maintains a constant flow rate on the meter. Provided the back pressure setting is always above the vapor pressure of the fluid, it is possible to adjust flow rate through the meter by adjusting the valve.

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9. Check Valve - A check valve is used to prevent backflow of metered fluid from the Transport Carrier or pipeline back through the LACT Unit. The check valve is installed as the last device in the piping system. The check valve is a two-way type valve with a hinged flapper that allows fluid to pass through the valve in one direction only. 10. LACT Control Panel - The LACT Control Panel is the electrical brains of the LACT Unit and controls the entire operation of the system. The basic system operates on liquid level switches installed on the run tank or surge tank. When a high level is signaled in the run tank the LACT Control Panel will start the charge pump. Provided there are no problems during operation, the system will run until a low liquid level is signaled and the unit will shut down until the next high level signal is received. In addition to starting and stopping the LACT unit from level switches, the following features are also provided; a. Main Power OnOff a circuit breaker or fused disconnect switch to be used to remove power from all electrical devices on the LACT Unit. b. Hand-Off-Automatic Switch - used to run the LACT charge pump in a manual or automatic mode. c. Lightning Arrestor - used to help absorb the electrical surges from lightning. d. Divert Controls used to position the diverter valve based on signals received from the BS&W Monitor. e. Monitor Failure control used to shutdown the system in the event of a failure of the BS&W Monitor. f. Meter Malfunction Control - used to shutdown the system in the event the meter does not register when the LACT Unit is in operation. g. Set Stop Allowable Control - sometimes used to shutdown the LACT Unit if a preset quantity of product has been delivered through the system. h. Alarm Beacon used to alarm an operator anytime there is a failure on the LACT Unit. 11. Sealing - Any device that affects the quality or quantity of the measurement of the LACT Unit must have a means of security sealing. Such items would include the BS&W Monitor, the Sampler Probe and Sample Container valves and components, Meter and Meter Accessories, Prover Valves,Back Pressure Valves and the LACT Control Panel.

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. Meter Proving And Calibrations In order to insure accurate custody transfer, through liquid measurement, it is necessary to maintain the metering equipment and to perform periodic meter calibrations. Liquid meters are capable of a high degree of accuracy, but must be calibrated using a known standard. Meter calibrations are performed in place under near operating conditions and are usually performed on a monthly basis and provided by the purchaser or as agreed upon by a third party. The periodic meter calibrations are provided to compare the actual meter throughput to a known volumetric standard such as a bi-directional meter prover. Because the total throughput through the meter since the last meter calibration will be adjusted, based on dataobtained from field calibration tests, it is recommended and suggested that the seller provide a qualified witness to be present to observe and verify all data and field tests.

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SUMMARY
Hydrocarbons are valued commodities.At the point when custody or ownership of the hydrocarbon is transferred,the volume being transferred over to a second party has to be known precisely,to determine payement.In addition,it is important to know about volumes at other points along the production stream,to accommodate engineering and operating needs.Production engineers need to know the daily flow rates and the volume of water produced to determine reservoir performance and operating efficiency.Accordingly,production is measured at a minimum of two locations-the wellhead and the point of custody transfer.Since the flow at the wellhead contains a combination of oil, gas,water, and maybe sand and other trash,the content has to be periodically sampled and anallysed for composition.Measurement at the point of ownership change is to assure proper payement.The final stage before the oil and gas leaves the platform consists of metering. Metering station allow operator to monitor the natural gas and oil exported from the production platform. This metering station use specialized meters to measure the natural gas or oil as it flows through the pipeline without impeding its movement. This metered volume represents a transfer of ownership from a producer to a customer or another division. Within the company and is therefore called CUSTODY TRANSFER METERING. At the point when custody or ownership of the hydrocarbon is transferred, the volume being turned over a second party has to be known precisely, to determine payment.Accurate Custody Transfer requires precise measurement functions. In the case of tank gauging four functions are required level, temperature, API Gravity and BS&W. All these measurement functions must be manually performed by an operator. The accuracy of these functions are dependent upon the technical ability of the operator and upon the equipment available to him. Another area of concern is the growing number of environmental regulations being imposed upon lease operators. One such regulation is the new Occupational Safety Act (OSHA) that now requires two men be available for gauging due to the potential hazards of Hydrogen Sulfide Gas.The economic advantages of LACT Measurement would include the following: 1. Improved accuracy through the use of more precise measurements of volumes, temperature, APIGravity and BS&W. 2. Unattended operation by eliminating an operator being on hand during delivery. An operator onlyneeds to be on hand to witness meter proving or provide routine maintenance. 3. Reduced installation cost through the use of smaller run tanks. 4. Cost saving by consolidation of tank batteries where practical. These economic advantages should be taken into consideration when evaluating a lease as a potential candidate for Lease Automatic Custody Transfer. 45.

A typical LACTunit include the following components:

y A strainer that removes solids . y A pump may increase the pressure to pipeline recquirements. y An S&W probe checks the oil,particularly for water content.Typically,it uses electric current to measure the dielectric constant (the capacitance)of the oil.Higher water content has a lower dielectric constant and vice versa. y A de-arator removes excess,non-revenue-generating air and protects the meter fromslugs of air. y A diverter valve is actuated by the S&W probe.. y A thermometer records the temperature. y An automatic sampler with a storage container retains part of the sales stream for later analysis. y A PD meter measures the fluid volume. 46.

If delivery of crude is into a pipeline,then a LACT unit and its meters is the method of measuring the shipment.LACT units are independently certified periodically with meter provers to satisfy both seller and buyer of accurate measurement.

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CONCLUSION.
The recent acceptance and development of new electronic equipment for crude oil measurement in the few year has made them more reliable and accurate while requiring less maintenance. However, the technician needs to be more highly trained than ever before.Many factor go into design of L.A.C.T. units rates, space limitations, temperature,viscosity,corrosion, and customer specifications. As long as these are taken into consideration, one can up with a quality measurement system.

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REFERENCES.
y y y y y y y y www.wkipedia.com www.google.com www.ask.com Economics of custody transfer technical paper. Oil and gas production in non-technical language. API introduction to oil and gas production book. Oil and gas production handbook(2006). Jahn F(1) hydrocarbon exploration and production book.

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