Production & Produced Water Systems Production & Produced - - PowerPoint PPT Presentation

SPE Dinner Meeting – 30th November 2010 Marginal Field Development Using Lease Operate and Maintain Facilities

Production & Produced Water Systems Production & Produced Water Systems

Agenda

 Introduction  Why Use a LOM Facility  Typical Contracting Arrangements  Project Examples

Production & Produced Water Systems

The Production & Produced Water Systems group provides;

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Early Production Facilities on a lease, operate, maintain (LOM) or equipment sale basis

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Life of Field (Permanent Production) facilities, delivered on a “Fast Track” EPC basis with design life from 10 to 25 years.

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Facilities are purpose built or existing facilities can be mobilized

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The business unit has in house engineering, design and procurement capabilities and will deliver a completed plant, fully commissioned on a ‘fast track’ basis

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Cumulative production of the GBU’s delivered facilities equate to over 200,000 bbls per day and more than 400 MMSCFD

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Technical testing solutions where the parameters are challenging; HPHT, heavy oil, high gas condensate wells, solids production, high water production

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The business unit will also provide resources and equipment for debottlenecking, water handling and FEED studies

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Integrates with other WFT service lines to provide a seamless drill to production service

Early Production Systems – Fast Track Approach

Expedient Project Execution;

 Engineering continues through bidding phase  Pre-qualified vendors  Skid packaged equipment to avoid stick build at site  The use of existing refurbished equipment not precluded  Use of ‘Standard Inventory’ and supplier specifications  Engineering confirms ‘fit-for-purpose’ designed for field life  Client engagement throughout  Project team involved from tender stage through to commissioning

Design has access to the latest computational process & facilities analysis software and can perform;

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Process Simulations

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Hydraulic Analysis

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Structural Analysis

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Pipe Stress Analysis

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Vessel Design

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Heat Exchanger Design

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Electrical Design &

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Load Calcs

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Storage Tank Design

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Civil Engineering

Engineering & Design

Through the use of 3D CAD software, the entire facility can be modelled with a view to;

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Minimising space requirements

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Reducing equipment clashes

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Minimising Hook-up time

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Minimising interconnecting pipework

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Automatic generation of engineering deliverables i.e. isometrics, BOM etc.

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Site preparation

Engineering & Design

Why Use a LOM Facility

The LOM facilities typically will;

 Stabilize and/or treat produced hydrocarbons to export conditions  Provide earlier cash flow from a new or re-developed field  Provide detailed reservoir data from extended testing, sampling and draw down  Be flexible in terms of productions rates (turndown/up)  Be engineered, safe, fit for purpose, and available on a fast track basis  Provide satisfactory uptime over the life of the contract  Be commercially viable at varying energy prices  Be available on a LOM basis, or Lease to Purchase basis

Why Use a LOM Facility

Operator Advantages

 One Stop Shop – Service Company Provides complete turn key solution  Reduced Development CAPEX requirements  Improved Cash Flow

Why Use a LOM Facility

Operator Advantages

 Existing Infrastructure – Service company already has

• In-country infrastructure
• Security arrangements in-place
• Experienced fast track engineering, project and operations personnel
• Existing specifications and procedures
• Access to existing equipment
• In House Logistics

Why Use a LOM Facility

Operator Advantages

 Functional Specification only required, Operator only needs to define

• Flowing wellhead conditions
• Well fluid compositions
• Expected production rates and profile
• Export conditions
• Any additional requirements
• Location

Existing inventory of equipment that can be mobilised at short notice for use in Early Production Facility Projects where appropriate

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Accelerated Mobilisation

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Proven Technology

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Inventory of Spare Parts

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Replacement of Equipment

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Available at International Locations

Why Use a LOM Facility

Why Use a LOM Facility

In-house Services where required e.g.

 Hydro Testing  Leak Detection (N2/He, Air/He, N2)  Nitrogen Services – Membrane  Nitrogen Services – Cryogenic  Bolting and Machining Services  Oil Flushing Services  Chemical Cleaning Services  Drying Services – Air/N2/Vacuum  Cold Cutting & Retrojetting Services  Inspection services

Operations & Maintenance

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Developed HSE-QC systems and practises

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Strong and varied track record of production operations

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Service company culture

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National and international purchasing capabilities

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Large pool of competent engineers & operators

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Large pool of personnel for round the clock back-up

Why Use a LOM Facility

Contracting Arrangements

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Lease Operate and Maintain

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Lease Operate and Maintain with Purchase Option

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EPIC with Operations

Contracting Arrangements

Lease Operate and Maintain

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Facility provided on a fixed term contract (usually with extension options)

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Payments comprise

• Initial fees for engineering and mobilisation
• Operating dayrate
• Standby rate
• De-mobilisation fee

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Agreed number of downtime/maintenance days per annum

• Penalties for exceeding number of downtime days
• Bonus for increasing uptime days

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Performance targets

• System Capacity & Availability
• Product Quality
• Safety

Contracting Arrangements

Lease Operate and Maintain

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Initial fees for engineering and mobilisation

• Schedule of payments against agreed milestones
• Issue P&IDs, Layout etc
• Order Long Lead equipment
• Equipment mobilised to site
• Mechanical Completion

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Operating dayrate

• Payment when facility is available for operation
• Includes Maintenance and Spares
• Consumables optional

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Standby rate

• Payment if Client wishes to suspend operations

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De-mobilisation fee

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Lump Sum fee at end of contract

Contracting Arrangements

Lease Operate and Maintain with Purchase Option

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Facility provided on a fixed term contract

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Payments comprise

• Initial fees for engineering and mobilisation
• Operating dayrate
• Standby rate
• De-mobilisation fee
• Purchase Options after set periods

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Agreed number of downtime/maintenance days per annum

• Penalties for exceeding number of downtime days
• Bonus for increasing uptime days

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Performance targets

• System Capacity & Availability
• Product Quality
• Safety

Contracting Arrangements

EPIC with Operations

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Facility provided on a lump sum basis

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Payments comprise

• Initial fees for engineering and mobilisation
• Stage Payments against defined milestones
• Operations dayrate

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Agreed number of downtime/maintenance days per annum

• Penalties for exceeding number of downtime days
• Bonus for increasing uptime days

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Performance targets

• System Capacity and Availability
• Product Quality
• Safety

CLIENT: Nexen, Yemen FIELD: Block 51 YEAR: 2005 TYPE: Early Production Facility SCOPE: Lease, Operate & Maintain In 2005 Weatherford Oil Tool Middle East, was awarded a contract to supply and operate an early production facility ahead of permanent facilities on the Nexen Block 51 Field, Yemen. The production facilities was constructed and installed within a record 24 weeks. Initially the process facilities were designed to process 15,000 bbl/day but due to delays In the completion of the permanent Production facilities, the process plant was upgraded to 40,000 bbl/day. The Early Production Facility was operational for a period of 2 years with a 99.9% uptime.

Project Examples – Nexen, Yemen

CLIENT: Total, Yemen FIELD: Kharir YEAR: 2009 TYPE: Early Production Facility SCOPE: Build, Operate & Transfer The facility supplied was capable of processing 30,000 bbls/day of crude with 50% water cut requiring water treatment and desalting/dehydration facilities. The entire process facility was mobilized and Constructed within 26 weeks from contract award. All site civil works were included in the Contract. The facility was successfully commissioned and operated by an entire production infrastructure mobilized to Yemen to support the project.

Project Examples – Total, Yemen

The scope of supply for the project included;  Engineer, procure, mobilize, install, commission contract for a 30,000 bpd facility.  Utilization of existing process vessels to meet an aggressive schedule.  Project manage all construction activities inclusive of civil’s.  Equipment procured from international vendors, built in modular units to minimize installation time on site.  Customer received first oil within 26 weeks from contract award in challenging environment.

Project Examples – Total, Yemen

CLIENT: PPL, Pakistan FIELD: Hala Adam X1 YEAR: 2008 TYPE: 15 MMscfd Gas Production Facility (Sweetening & LPG) SCOPE: Build, Operate & Transfer

Project Examples – PPL, Pakistan

In 2008, Weatherford was contracted to supply PPL with a 15 MMscf/d Gas Processing Facility. The facility includes Gas Compression, Gas Sweetening, Gas Dewpoint Control with LPG Extraction and Condensate Stabilization. All site engineering, preparation, foundations and utilities are included in Weatherford scope. The facility was delivered and commissioned 13 months from contract award. The design life of the facility is 25 years.

CLIENT: TTOPCO (Addax / Genel Enerji) FIELD: Taq Taq, Northern Iraq YEAR: 2008 TYPE: Early Production Facility /w TLS SCOPE: Lease, Operate & Maintain In June 2008, TTOPCO awarded Weatherford the EPF contract for accelerated production from the Taq Taq Field. The 30,000 bbl/d Production facility was mobilised within 4 weeks of LOI. Subsequent to this, Weatherford were also awarded the Phase I 60,000 bbl/day Early Production System.

Project Examples – TTOPCO, N. Iraq

CLIENT: TTOPCO (Addax / Genel Enerji) FIELD: Taq Taq, Northern Iraq YEAR: 2008 TYPE: 60,000 bbl/d Early Production System SCOPE: Engineer, Procure, Install & Commission In July 2008, TTOPCO awarded Weatherford the EPC contract for the permanent production facilities on Taq Taq Field. The scope consists of 2 x 30,000 bbl/day sour crude processing trains including gas stripping, storage, transport, road tanker loading and all utilities. The design life of the facility is 15 years.

Project Examples – TTOPCO, N. Iraq

Project Examples – TTOPCO, N. Iraq

The crude from the EPS is shipped via an 18” pipeline to 80,000 bbls

• f crude oil storage at the Tanker

Loading Station. The crude is then loaded onto road tankers via 8 loading stations. The facility includes all utilities including fully automated weigh bridges for payload calculation & verification.

CLIENT: Nido Petroleum FIELD: Tindalo, Philippines YEAR: 2009-10 TYPE: 20,000 bbl/d Extended Well Test (Offshore) SCOPE: Lease, Operate & Maintain

Project Examples – Nido, Philippines

In December 2009, Nido Petroleum awarded Weatherford a contract for an Extended Well Test (EWT) for their Tindalo field offshore Philippines. The contract is for the provision of engineering, design, procure, modify

• r

build new equipment, install & commission a 20,000 bbl/d plant with water treatment facilities able to process an associated water cut of up to 75%. The project was completed within the 5 months allocated from contract award. The process scope includes; First stage separation & second stage degassing, electrostatic coalescer, crude oil export trim cooler & metering package. Produced gas is flared. Produced Water Treatment includes; De-oiling hydrocyclones, Weatherford designed hybrid gas flotation vessel and a filtration package. Treated water is dumped

• verboard at 15 ppm and crude oil is transferred to an FSO.

Plant Availability

No. Location Country Start-up Date Operational (days) Downtime (days) Uptime % Running Average

• f Oil

Rates (bbl/day) Accumulated oil/gas produced from start date Oil (bbl) Gas (MMscf) 1 TPU, Total E&P Yemen Yemen 15/08/2009 172 100.0% 14,474 2,489,503 430 2 Block 10, Total E&P Yemen Yemen 16/01/2006 1,447 32 97.8% 8,444 12,217,804 1,543 3 EPF 1, OMV Kharwah Yemen 23/12/2006 1,136 4 99.6% 8,000 5,593,079 8,254 4 EPF 2, OMV Nilam Yemen 22/02/2007 1,080 5 99.5% 5,042 5,446,046 6,758 5 EEPF, TTOPCO Iraq 15/06/2008 545 4 99.3% 22,000 11,990,000 491 6 Offloading Facilities, OMV Mareb Yemen 24/11/2008 428 8 98.1% 9,159 3,919,858 n/a

The following table is a summary of Early Production Facility plant availability statistics taken from projects that Weatherford lease, own and operate for our clients;

Thank You

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