Upstream Process

Engineering Course
Overview

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Finding

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The Geological Trap
Fault
(Impermeable)

Oil/water
Contact
(OWC)
Migration
Route
Seal
Hydrocarbon
Reservoir
Accumulation
Rock
In the
Reservoir Rock

Top of Maturity

Source Rock

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 The field life cycle
500

400
cumulative cashflow $million

production
300

200

100
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
0
Time (years)
-100

Decommissioning
Gaining Access

Development
Exploration

Production
Appraisal

-200

-300

-400

-500
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 Concept Selection
Understand the Environment
• Location.Terrain/Metocean
• Market
• Infrastructure
• Fiscal & Political Regime etc.

Understand the Reservoir & Quantify Uncertainties

• Reserves
• No of Wells
• Well rate
• Reservoir management strategy

Understand the Drilling

• Maximum step-out
• Cost per well
• No of drill centres required
• Intervention frequency and cost
• Wet vs Dry trees pros & cons

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Reservoir Management

• Reservoir Features
– Porous rock
– Impermeable layer
– Permeability
• Reservoir Management
– Pressure
– Gas-oil contact
– Oil-water contact
– Withdrawal rates
– Gas injection rates and composition The formation pressure will
– Water injection rates normally be determined by the water
– Prediction of oil rate, GOR, water cut column to surface at the oil-water
and composition with time
contact

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Primary Recovery
• Primary recovery techniques yield a
wide range in recovery factor; between
5-30%
• Solution Gas Drive
– Oil is produced by the natural
expansion of dissolved gas in the
oil
• Natural Water Drive
– The reservoir pressure reduces as
oil is produced allowing the aquifer
to expand and flow into the
reservoir
• Natural Gas Cap Drive/Gravity
Drainage
– The reservoir pressure reduces as
oil is produced allowing the gas cap
to expand and assist recovery
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Reservoir Management
• Secondary Recovery
– Gas and/or water injection
• If the natural drives are insufficient, as they
very often are, then the pressure can be
artificially maintained by injecting water
into the aquifer or gas into the gas cap.

– Artificial lift
• Gas,
• Electric Submersible Pumps
• Hydraulic Pumps
• Sucker Rod Pumps

• Tertiary/Enhanced Oil Recovery

– Miscible gas – Hydrocarbon, CO2, N2
– Surfactants
– Polymers
– Microbial
– Thermal/steam flood

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CO2 Enhanced Oil Recovery

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Solar Steam Generation

World first in Oman

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Polymer Enhanced Oil Recovery
Polymer EOR is a process in which
polymer is added to the injected water in
order to increase its viscosity and, hence,
sweep efficiency. Polymer selection is
based on the temperature and salinity of the
reservoir as well as the formation
permeability.

In polymer EOR, high molecular-weight,

water-soluble polymers are injected with
the water. These polymers are typically
either polyacrylamides or polysaccharides.
Care must be taken to ensure that the
polymer does not degrade as it moves
through the reservoir. Polymer flooding
increases oil recovery by improving areal
sweep, improving vertical conformance,
and reducing water production.
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Drilling

• Drilling involves the successive addition of lengths of

drill pipe to the drill string as depth is achieved.
• Once the hole is drilled to the desired depth, pipes of
successively smaller diameter are inserted into the hole
and cemented in place. These are known as “casings”.
The “liner” or “tubing” is the production pipe, which is
inserted into the casings and cemented in place.
• The tubing is then perforated in the producing zone and
the Xmas tree (the production valves and instruments) is
installed at the top of the tubing.
• This process is called “completion”.

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Well Completion

Surface Casing
Tubing – pipe
containing the
Intermediate Casing
produced fluids –
oil, gas, water

Production Casing
Cement

Production Liner
Perforations
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Wellhead

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Drilling Options – Onshore

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Drilling Options – On Platform

End Bay Drilling Centre Bay Drilling

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Drilling Options – Jack Up

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Drilling Options – Semi-Submersible

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Drilling Options – Drill Ship

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Drilling Options – Tension Leg
Platform

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 Drilling Options

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Well Types

Vertical Horizontal High Angle Dual Lateral

build

hold

Build
heel
toe Payzone sidetrack
drop
Step Out
Oil/Water Contact
Aquifer

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Wytch Farm Extended Reach Drilling
– record in UK

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 Onshore

Endicott Island - an example of a near

shore development off the north coast of
Alaska

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 Offshore Concept Types

• Steel Jackets (Single, Twin, Triple, Launched, Lifted)

• Jack-ups (With and w/o WHT)
• Concrete Structures (GBS)
• FPSOs (with and w/o WHT)
• TLP (Tension Leg Platform)
• SPAR
• Compliant Tower
• Subsea

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Factors Affecting Offshore Concept Selection

• Infrastructure • Field Life

• Water Depth • Schedule
• Topsides Weight • Safety
• Installation • Construction Yard
Capability
• Soils
• Abandonment
• Drilling/Reservoir
Management
Philosophy
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Process Plant Support Steel Jackets

Barge Launched Lifted

Suitable for water depths from 0 - 400m depending on environmental conditions. Greater than
180 m in the North Sea is not really feasible due to environmental loads leading to excessive
weights and thus cost (Magnus 186m – Kvitebjorn 190m) . However, in Gulf of Mexico where
environmental conditions are more benign, jackets can be located in 400m .
Jackets under 10,000 te can be lifted into place. Larger jackets require to be launched and
are specifically designed for this with buoyancy aids etc. Jackets are normally piled in place,
suction pods can be used where soil conditions do not favour piling.
The number of jackets in a concept will depend on a number of factors including, single lift
weight limitations, modular vs. integrated deck construction, safety, layout and cost.
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Fabrication/Installation
The construction and installation stage safety risks must be evaluated.

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Fabrication/Installation

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Compliant Tower

A Compliant Tower is
a bottom fixed slim
steel structure. It is
designed such that
the natural frequency
of the structure is
substantially different
from the sea states.
CTs have been
installed in the GOM
in water depths 1500
– 1700 ft.

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Drilling Template

Pre-drill and
suspend
wells prior to
substructure
placement.
Early oil and
revenue.

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 TPG/Jack-Ups
The main advantage of a jack-up type concept is that it is a self-
installing concept. The topsides can be built and commissioned in
the construction yard thus minimising offshore HUC hours.
The water depth for this type of concept is limited to the jack-up
leg length. Current maximum length is approx. 110-140 m. They
can be used in deeper water depths if the seabed is artificially
raised, by use of a GSB storage.

Often used in conjunction

with a Wellhead Tower.
A well known form of this
concept is the TPG.
Examples include Harding
and Elgin/Franklin.

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 TPG/Jack-Ups

Elgin

Harding
Shah Deniz

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 Tension Leg Platforms

The Tension Leg Platform (TLP) is a very deep water application which allows the ability to drill (direct
vertical well access) . It is fixed to the seabed by cables (or tendons) which are effectively in tension.
Suitable for depths up to 1200m. Most common in the Gulf of Mexico although there is one in the North Sea
(Hutton).
Improved motion characteristics compared to Spars and Semisubmersibles. Full integration and
commissioning prior to installation Deeper than 1200m , the cost of TLP’s increase dramatically because of
the resulting increase in weight of tendons.
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 Tension Leg Platforms

Ram Powell
1000m water depth

Mars – After Katrina

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Semi-Submersible

BP’s Thunder Horse (GOM)

production-drilling-quarters
(PDQ) is the world's largest
production semi-submersible
ever built. The platform's topside
area is the size of three football
fields.

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 SPAR
A SPAR (Single Point Articulated
Riser) is a cylindrical hull fabricated
from either steel or concrete.
The hull operates in a constant deep
draft and is moored to the seabed.
Spars can be built to incorporate oil
storage if necessary.
Drilling is possible from a SPAR.

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Kikeh SPAR Float Over

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 Concrete
Concrete structures are often referred to as Gravity Base Structures (GBS). They can
be built with or without the ability to store oil. An advantage of the concrete concept is
its ability to support very high topside weights (cf. steel jackets).

These structures normally require to be constructed in (or near) very deep water in
order to allow the topsides to be floated on. Topsides modules can also be lifted on
once the jacket is installed but one of the main advantages of this concept its ability to
completely commission inshore.

Very deep water is required for their construction ( to allow full submergence to float
on topsides). Hence the fjords of Norway are popular construction sites.

Brent D

Troll C is the largest concrete

structure built to date at 305 m
Hibernia
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Ice Scour Protection

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 FPSO

Floating Production Storage and Offloading (FPSO) vessels have become increasingly popular concepts in recent years.
Their main advantage is the ability to operate without the need for a specific export infrastructure. Crude can be exported by
shuttle tanker. Gas however, must either be flared or exported by pipeline so FPSO’s suit low GOR fields especially. Other
advantages include:
• relatively short schedules (oil tankers can be converted relatively cheaply) • Early Production

• can often be leased instead of bought, hence making very small fields economic • Large payload/deck space

• can be used in any water depth • Easy to remove and re-use

Key feature of FPSO’s is the turret and mooring system. Various types exist. No drilling possible from this concept - subsea
wells only.

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 FPSO

BP Fionaven
BP Skarv

BP Schiehallion

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 Turrets
The turret is a key part of many FPSOs. It is the point around which the FPSO weather
vanes and at which all risers are gathered. The number of risers is the key parameter
which defines the diameter and size of the turret. The turret is also the part of the FPSO
which is moored to the seabed. Any turret therefore has a “fixed” part (moored to the
seabed) and a rotating part (part of the hull).

There are many designs of turret available. Turrets can be designed to be permanent or
disconnectable (e.g. Cossack Pioneer, Australia). They can also be internal or external.

A key component of a turret system of the swivel which contains fluid path swivels to
transfer all production and utilities fluids from the fixed to the rotating part of the FPSO.

Leak recuperation path Leak Rec. path Seal Oil

Gas Path
Liquid Flowpath

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Drag Chain

Large bobbin with flexible pipe.

As ship weathers flexibles are let out or
wrapped in.
Ship cannot fully rotate hence thrusters are
required to re-set vessel heading.

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Sevan FPSO
Relatively new concept:
Claimed to offer cost and schedule savings by not
requiring turret.
Limited in size.
Deployed on Chestnut (Hummingbird),
Huntington (Voyager) on UKCS.

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Greater Plutonio – Spread Moored

Hull does not weather vane – suitable for consistent

directional environmental loadings
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Depth Summary

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 Subsea Concepts
Due to significant advances in technology, Subsea concepts are a mainstay for the UKCS.

Main advantages are:-

• No support structure required
• Can cover a wide area - larger than from a single drill centre
• Allow existing offshore facilities to “widen their reach”
• Good for deep water

Disadvantages:-
• Subsea equipment is expensive
• Intervention for repair is expensive
• Well access cab be restricted

Latest technology is considering:-

• Subsea separation
• Subsea pumping
• Subsea water injection systems
• Subsea compression

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 Minimum Facilities Platforms

An option which is common where an infrastructure is already in place, for field

close to shore, is a minimum facilities platform. This effectively covers two
categories:-

Minimum facilities - the minimum equipment required to receive and control well
flow in order to pass it on to a host treatment facility. Often just the wells and a
manifold. However , facilities often extend to basic gas-liquid separation, metering
and pumping. In principle, very similar to a subsea tie-back but some issues can
force the necessity for a WHT eg.:

• Dry trees
• HP/HT wellheads

Unmanned facilities - Not strictly minimum facilities. However, also common when
infrastructure is nearby. If process plant is automated sufficiently, the cost of
providing life support facilities (accommodation, support, logistics) etc can be
significantly reduced.

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 Minimum/Unmanned Facilities

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Safety
• The offshore facility will be designed to the
highest possible safety standards.
• Structured review techniques are required to
ensure that all aspects of risk are identified and
managed.
– HAZID - Hazard Identification
– HAZOP – Hazard and Operability Review
– ESSA - Emergency Systems Survivability
Analysis
– EPR - Explosion Protection Review
– FEA - Fire and Explosion Analysis
– SIA - Smoke Ingress Analysis
– SCA - Structural Consequence Analysis
– TR/EERA - Temporary Refuge/Escape,
Evacuation and Rescue Analysis
– QRA - Quantitative Risk Assessment
– EA - Environmental Assessment

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Environment

Combustion
Emissions

Flare

Drill
Cuttings

Noise
Produced Water
)))

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Concept Selection

• Safety
• Environment
• Capital Cost
• Operating Cost
• Schedule
• Revenue
• Technical Risk

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Pipelines/Transportation
• Delivering gas and oil
from offshore to market is
often via subsea pipelines.
• The pipelines are
designed for pressure
containment, internal and
Lay barge
external corrosion
• Pipeline integrity
management is key part
of the offshore business
• Pipeline costs can be very
significant
Reel barge

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Onshore Terminals

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 Oil Terminal Functions
• Oil terminals are intermediate oil gathering and distribution
stations between (offshore) oil production locations and
onshore oil processing facilities (refineries).
• The UK has 6 oil terminals: Shetland (Sullom Voe), Orkney
(Flotta), Teesside (Ekofisk), Liverpool Bay, Dorset (Wytch
Farm), Kinniel (FPS)
• Basic oil terminal functions are:
– Reception of crude oil from pipelines or shuttle tankers
– Stabilisation of crude oil (including dehydration/desalting,
gas/water treatment)
– Fractionation of associated gas into:
• Lighter gases (methane and ethane) normally used as fuel for power
generation
• propane LPG – liquefied petroleum gases
• butane
– Storage of stabilised crude and LPG
– Export / trans-shipment of products into tankers or pipelines for
distribution to refineries for further downstream processing
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 Gas Terminal Functions
• Gas terminals are intermediate gas treatment facilities collecting partially processed gas from
offshore facilities.
– Reception of gas from pipelines
– Treatment of the gas for sale to the onshore gas grid
• Gas dehydration
• Removal of natural gas liquids – ethane, propane, butane and heavier components
• Removal of carbon dioxide and sulphur dioxide
• Removal of other unwanted components – mercaptans, mercury

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 Definitions
• STC - Stock Tank Conditions - Oil
– Standard temperature and pressure, usually 60 ºF and 14.7 psia
• STB - Stock Tank Barrel
– One barrel of oil at stock tank conditions
• SCF – Standard Cubic Foot – Gas
– 1 cubic foot of gas at standard conditions
• GOR - Gas/Oil Ratio
– The volume of gas produced divided by the volume of oil produced measured at stock tank
conditions
• GLR - Gas/Liquid Ratio
– The volume of gas produced divided by the total volume of liquid produced (oil and water)
• Bo - Oil Volume Factor
– The volume in barrels (bbl) occupied by one STB of oil and associated gas when recombined to
a single phase liquid at a given pressure and temperature
• Rs - Solution Gas/Oil Ratio
– The volume of gas in a standard ft3 that will dissolve in one STB of oil at a given pressure and
temperature

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Definitions
• Productivity Index
– The volume flow into the well expressed as barrels per day per psi of drawdown
• Oil Recovery
– Percentage of oil recovered to that originally in place
• API - American Petroleum Institute – Crude API ; specific gravity = 141.5/(131.5+oAPI)
• TPR - Tubing Performance Relation
– The relation between the bottomhole flowing pressure and the surface oil flow rate for a given wellhead
pressure
• IPR - Inflow Performance Relation
– The relation between the wellbore flowing pressure and the surface oil rate
• STOIIP - Stock Tank Oil Initially In Place
– A measure of the oil reserves in place at stock tank conditions
• Drawdown
– Difference in pressure between the reservoir pressure and pressure at the bottom of the wellbore
• Drainage Radius
– Production well will only drain a part of a reservoir - each well has a radial limit beyond which there is no
influence on reservoir depletion

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Definitions
• Wet Gas
– Gas which contains water and/or hydrocarbons as a small amount of liquid
• Dry Gas
– Gas that has been treated to remove water
• Acid Gas
– Gas which contains Carbon Dioxide and/or Hydrogen Sulphide
• Sour Gas
– Gas which contains Hydrogen Sulphide
• Natural Gas
– Marketable gas which is predominantly Methane
• Natural Gas Liquids - NGL
– Liquids which have been condensed from a gas – typically a mixture of methane, ethane, propane and butane.
Often referred to as Condensate
• Liquefied Natural Gas - LNG
– Natural gas which has been liquefied.
• Liquefied Petroleum Gas – LPG
– Propane, Butane or a mixture of the two which has been compressed and liquefied.

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