Title: Building, Testing and Tuning of Dynamic Simulation Model for an Oil and Gas Process using K-Spice

1. SUMMER TRAINING REPORT
Carried out at
KONGSBERG OIL & GAS TECHNOLOGIES PVT. LTD.
Title of Project
Building, Testing and Tuning of Dynamic Simulation Model for
an Oil and Gas Process using K-Spice®
DURATION: 2nd
June 2014 to 31st
July 2014
By
Name: Mohit Upadhyay
Major: B.Tech. in Applied Petroleum Engineering (Upstream)
SAP ID: 500017293
University: U. of Petroleum and Energy Studies
Date: 31st
July 2014

2. i
TABLE OF CONTENTS
S.No. TITLE PAGE No.
1 List of Tables ii
2 List of Figures iii
3 Acknowledgements iv
4 Abstract 1
5 Introduction 2
6 Training Description 3
7 Analysis 13
8 Conclusion 14
9 Bibliography 15
10 Appendix – A 16
11 Appendix – B 17
12 Appendix – C 20

3. ii
LIST OF TABLES
S.NO. DESCRIPTION PAGE NO.
1 Schedule for Lectures 5
2 Bibliography 15
3 KOGT Products and Services 16
4 Market Trends for Oil and Gas Production 20

4. iii
LIST OF FIGURES
S. NO. DESCRIPTION PAGE NO.
1 K-Spice® Design Lifecycle 19
2 World Offshore Oil and Gas Producing Regions 21
3 Offshore Technology for Oil and Gas Production 22
4 Oil and Gas Production Overview 23
5 Separation of Oil, Gas and Water 25
6 Gas Collection and Compression 26
7 Gas Dehydration 27
8 Produced Water Conditioning Unit 28
9 Seawater Treatment for Water Injection 29
10 Intelligent Wells 30
11 Digital Oil Field: Schematics 31
12 Multiphase Flow Meter 32
13 Kongsberg‘s Flexible Subsea Storage Units 33
14 BP Well Advisor 34

5. iv
ACKNOWLEDGEMENTS
Summer training is an occasion for learning and self development. I consider myself
very lucky and honored to have so many wonderful people lead me through in the
completion of this project.
I take this opportunity to express my profound gratitude and deep regards to my guide,
Mr. Yogesh Gaikwad who in spite of being extraordinarily busy with his duties, took
time out to bless me with his exemplary guidance, monitoring and constant
encouragement throughout the course of this training. The blessing, help and guidance
given by him from time to time shall carry me a long way in the journey of life on
which I am about to embark.
I, hereby express a deep sense of gratitude to Group Manager, Mrs. Kesavan
Vimalpriya for her cordial support, valuable information and guidance, which helped
me in completing this task through various stages.
Mrs. Vesta Mathew, Head – HR & Administration and Ms. Pooja Soni, Executive –
monitored my progress and arranged all the facilities to support me. I choose this
opportunity to gratefully acknowledge their contributions.
I am obliged to all staff members of Kongsberg Oil & Gas Technologies Pvt. Ltd., for
the valuable information provided by them in their respective fields. I am grateful for
their cooperation during the period of my assignment.
I would also like to thank Dr. D. K. Gupta (HOD, Department of Petroleum Engineering
and Earth Sciences), Dr. Pradeep Joshi (Faculty, COES), Mr. Mohd Ismail Iqbal (SIP,
APE – Upstream), Dr. Pushpa Sharma (Course Coordinator, APE – Upstream) and the
Placement Cell, UPES for their invaluable efforts that led me to this training at KOGT.
Lastly, I thank almighty, my parents and friends for their constant encouragement
without which this assignment would not be possible.
Mohit Upadhyay

6. 1
ABSTRACT
A summer training at the Kongsberg Gruppen, a 200 year-old organisation with world-
class legacy is a truly a promising opportunity in itself. Being a student of the energy
sector, Kongsberg Oil and Gas Technologies Pvt. Ltd., it was evident that this training
would be a huge learning experience as far as the domain is concerned. However, the
KOGT family did succeed in not only passing on the immense technical knowledge
they possess but it was an immense gain for the non-technical aspect as well. Ranging
from 8 hour-a-day schedule to the usually frank interactions among the members to
‗Friday Snacks‘; it was an enriching experience from a very personal perspective. The
summer training spanned over two months (2nd
June 2014 to 31st
July 2014). The
training in particular comprised of lectures from several process engineers working at
KOGT regarding topics necessary to be stressed upon for oil and gas processing. Later,
K-Spice® was well taught via a proprietary ‗User Manual‘ and a tutorial model. The
project was challenging and enlightening, owing to the immaculate guidance provided
by the mentor Mr. Yogesh Gaikwad and his fellow engineers. In a nutshell, the training
was a ‗world-class experience at a world leader‘ company.

7. 2
INTRODUCTION
The summer internship took place at Kongsberg Oil and Gas Technologies Pvt. Ltd.
(MIDC, Mahape, Navi Mumbai Office). As a summer trainee, the schedule was to study
and understand oil and gas processing in general and K-Spice®, in particular; under the
guidance of Mr. Yogesh Gaikwad (Senior Process Engineer, KOGT) as mentor.
Through the course of this training, all the basic concepts necessary in oil and gas
processing industry were duly covered. KOGT‘s proprietary software, ‗K-Spice®‘ was
explained duly. The training manual and corresponding model were fundamental in
grasping the practical know-how of the ecosystem. The project was based on a real-life
model that was prepared using K-Spice®, with the data provided. It broadened the
scope of work and put forth a glimpse into the professional world of dynamic process
simulation.
Kongsberg‘s 200 year-long legacy profoundly reflects in the environment and overall
operations of the organisation. Employees here, have a friendlier way of interaction that
surpasses all hierarchical boundaries. The upper management also takes good care of its
employees, which is evident in occasional trips and the recent K-Sports. In a nutshell,
Kongsberg Gruppen does in many ways prove to be a true ‗world-class‘ destination for
its employees.

8. 3
TRAINING DESCRIPTION
The training period at KOGT proved to be an all-round learning experience, both on the
technical as well as non-technical front. First and foremost, attention was given towards
imparting adequate knowledge regarding the concepts and basics that the oil and gas
processing industry functions upon. Apart from the reading materials, special efforts
were undertaken by the KOGT family to improve the overall outcome of this phase of
training. This was followed by an introduction with the K-Spice® software via training
manual and constant guidance by the engineers. The tutorial model was scrutinised in
order to explain in further detail the intricacies of dynamic process simulation. This was
followed by a real-life project which was an even greater learning experience with all
the various data sets. The building, testing and tuning of this model was crucial in
getting well versed with the oil and gas processing industry in general and simulation in
particular.
This, however, does not mean that the experience was without any non-technical
activities, as that is what sets Kongsberg apart. K-Sports (a week-long sporting event),
along with ‗Friday Snacks‘ and the overall friendly nature of the KOGT family,
transformed the training period into a memorable experience.
The following is a Daily Activity Report (DAR) regarding the same.

9. 4
1. INTRODUCTION TO KOGT FAMILY
(2nd
June 2014)
It was an introduction-cum-orientation centric day with the KOGT family. Also, a
workstation was assigned with a separate username and password, in accordance
with the IT security norms of the organization. A separate interaction session with
the mentor, Mr. Yogesh Gaikwad helped in understanding the essentials about the
training period at KOGT and comprised of a brief tour of the office area. It was
followed by an interaction with the Technical Sales Engineer, Mr. Babji Munagala,
focusing upon the 200 year legacy of the Kongsberg Gruppen in general and the
KOGT, in particular. There was special emphasis on the software products at KOGT
from K-Spice® to LedaFlow® to SiteCom® and their applications. Also, a
workstation was assigned with a separate username and password, in accordance
with the IT security norms of the organization.
After going through the academic curriculum, a small report on ‗Oil and Natural
Gas Processing‘ was asked for; by the mentor. The submission date was scheduled
to be 16th
June after a review of progress by 11th
June.
2. IT SECURITY AGREEMENT (3rd
June 2014)
The day began with a meeting with Mr. Neeraj, stressing upon the IT security norms
at the Kongsberg Gruppen and signing of the agreement regarding the same. The
work on the report progressed.

10. 5
3. OIL AND GAS PROCESS BRIEFED BY ENGINEERS
An epitome of the cohesiveness and helpful nature of the KOGT family – personal
lectures from employees about the topics most necessary for the project, as planned
by the mentor. Each topic covered basic process philosophy and physics, and major
equipments, their types and working.
The following table contains a schedule for the aforementioned lectures, as
prescribed by the mentor.
S.No. TOPIC PRESENTED BY DATE
1 Oil Processing Mr. Vyom Sharma 04-06-2014
2 Typical Well and Flowlines Mr. Abhinai Kamballa 05-06-2014
3 Gas Compression Mr. Abhinai Kamballa 05-06-2014
4
TEG Dehydration and
Regeneration
Ms. Neha Bhatnagar 06-06-2014
5 Process Control and Valves
Ms. Shruti Dixit and
Ms. Swetha Padmini
10-06-2014
6 Engineering Documents
Ms. Swetha Padmini and
Ms. Shruti Dixit
11-06-2014
Table_1

11. 6
3.1. OIL PROCESSING (4th
June 2014)
The first lecture was given by Mr. Vyom Sharma on the topic – ‗Oil Processing‘.
It comprised of the basics of heat exchangers, separators, transmitter-control
loop elements, flow monitoring and coalescers. The ‗oil train‘ was specially
stressed upon; particularly the favourable components while separating
multiphase fluid from the wellhead into oil, gas and water. A brief discussion
about the physics of separators clarified the basic concepts about how it
functions.
3.2. TYPICAL WELLS & FLOWLINES / GAS COMPRESSION
(5th
June 2014)
The presentation from the previous day by Mr. Sharma continued in order to
discuss about the various stages of separators used during an oil train. The basis
for using/not using 3rd
stage separator was duly explained. Another lecture was
given by Mr. Abhinai Kamballa, Technical Adviser at KOGT. The topic was
‗Typical Wells and Flowlines‘. The prerequisites were the various types of rigs.
The presentation comprised of the flowlines for well fluids from wellhead to the
topside; such as injection valve, kill/swab valve, PMV, PWV to name a few.
Another lecture (post lunch) with Mr. Kamballa commenced with the title ‗Gas
Processing‘. The session was about compressors, various turbines, load sharing,
related principles, curves and desired set points.
On the same day, the first draft of the aforementioned report was e-mailed to the
mentor for further comments and suggestions.

12. 7
3.3. TEG DEHYDRATION – REGENERATION (6th
June 2014)
The lecture was given by Ms. Neha Bhatnagar on the topic ‗TEG Dehydration
and Regeneration‘. The purpose, components and criterions of the process were
illustrated. The final draft of the report was e-mailed to the mentor after
incorporating changes as suggested regarding the earlier draft. It comprised of
separation of oil, gas and water; gas compression and dehydration; produced
water and conditioning; sea water processing and injection system; and new
emerging technologies for the upstream oil and gas processing.
3.4. REFERENCE MATERIALS (9th
June 2014)
In accordance with the prerequisites necessary to be taken care of before
working on K-Spice®, in order to better understand the process, the mentor
provided some e-books and reading material. Also, the important topics were
highlighted to pace up the reading process.
3.5. PROCESS CONTROL & VALVES (10th
June 2014)
The lecture was given by Ms. Shruti Dixit and Ms. Swetha Padmini P.B. on the
topic ‗Process Control and Valves‘. Ms. Dixit illustrated the basic principles of
controller, feedback and feed forward control loops and their relevance in
dynamic process simulation. This was followed by a rigorous discussion on
Anti-Surge Control Loop and the idea behind it.

13. 8
3.6. ENGINEERING DOCUMENTS (11th
June 2014)
Another lecture was given by Ms. Dixit and Ms. Padmini on the topic
‗Engineering Documents‘ which showcased all the major documents that are
encountered by an engineer while working on a K-Spice® project. Plot plans,
PFD (Process Flow Diagram), P&ID (Piping and Instrumentation Diagram),
data sheets, GA (General Awareness) drawings and isometrics were illustrated.
Mr. Gaikwad further explained the importance of P&ID‘s and PFD‘s for an
engineer. It was the final lecture in a series of highly interactive, educational
lessons from the members of KOGT family.
4. TUTORIAL MODEL
Following a series of enlightening lectures, the next milestone was the tutorial
model. It comprised of learning about the K-Spice® ecosystem, building a
model and efficiently running it.
4.1. INSTALLING K-SPICE® (12th
June 2014)
K-Spice® v2.8.3.0 was installed onto the workstation and Ms. Padmini was
assigned with the task of explaining the basic functioning of the dynamic
simulation software, how the project files are saved/retrieved onto the
server/hard drive and the interaction between Explorer and the server.

14. 9
4.2. USER GUIDE (13th
June 2014)
The K-Spice® User Guide was provided that comprised of the intricate
principles to be kept in mind while using this software. One of the most
fundamental concepts was Pressure-Flow network philosophy of K-Spice. The
same was vividly explained by the mentor as well as Ms. Padmini. Thereafter,
K-Spice® Tutorial cum Training Manual was handed over. It comprised of
stepwise instructions (and related data) to be followed in order to construct the
tutorial model.
4.3. BUILDING THE MODEL (13th
June 2014)
The work on building the tutorial model was commenced under the guidance of
mentor and Ms. Padmini. Various ‗modules‘ used in K-Spice®, along with the
necessary data set were explained from time to time.
4.4. RUNNING/TESTING THE MODEL (16th
June 2014)
The basic task of constructing the model and entering the required parameters
was accomplished. Thereafter, the model was run to check for any discrepancies
(read, errors) with respect to the desired model. The ASC (Anti-Surge Control)
Loop was found to be dysfunctional.
4.5. TUNING THE MODEL (17th
to 20th
June 2014)
The model was ‗tuned‘ and the ASC loop began functioning as per the
requirements. This was done by modifying the parameters entered into the
‗controller‘. However, the model was not perfect yet.

15. 10
4.6. MODEL 2.0 (20th
to 25th
June 2014)
Once again, the same model (in K-Spice®) was constructed based on the tutorial
document to compare it with the aforementioned model. The same issues were
encountered for the new model as well. The mentor, Ms. Padmini, Ms. Mayuri
Chavan, Process Engineer at KOGT, Mr. Sharma and Ms. Dixit were sought to
help in tuning the model. Unfortunately, the model could not be tuned perfectly.
4.7. COMPLETION OF TUTORIAL PHASE (26th
June 2014)
The correct reason behind the model not functioning properly was discovered to
be a simple ‗non return valve‘ (NRV) positioned at the end of the graphic. This
further emphasized the intricate nature of K-Spice® that distinguishes it from
any other process simulation software and proved how it is such a useful tool for
the industry. The tuned model was shown to the mentor for review. It was duly
approved as being satisfactorily acceptable and accurate.
5. P&ID MARKUP (27th
June 2014)
A set of P&ID‘s were provided by Mr. Swapnil Mali, Process Engineer at KOGT.
The same were marked; first under his guidance and then independently, and
submitted back to Mr. Mali. The P&ID‘s were reviewed and found to be correct.
Some more P&ID‘s followed. They were marked and approved as well. The same
day, K-Sports prize distribution ceremony was organised. Medals were distributed
to all the participants with a K-Sports trophy presented to the winning team.

16. 11
6. THE PROJECT
After completing the tutorial model and successfully marking P&ID‘s, the next step
was to work on a real life project on K-Spice®.
6.1. STARTING POINT (30th
June 2014)
The P&ID related with the project (gas processing) were provided along with the
required documents, such as data sheets, PFD‘s and H&MB (Heat and Mass
Balance). The P&ID was marked and approved by the mentor for accuracy.
Hence, construction of model (graphic) commenced as per the P&ID.
6.2. BUILDING THE GRAPHIC (1st
to 2nd
July 2014)
The graphic was prepared as per the given P&ID. A few more P&ID‘s (more
complex than previous ones) were provided to be marked. Those were duly
marked and approved.
6.3. PARAMETERIZATION (3rd
to 14th
July 2014)
The data sheets were scrolled through and required parameters were input for
various components of the model. The mentor and Ms. Chavan guided in
understanding how to gather data from data sheets and parameterize the model.
6.4. TUNING (15th
to 21st
July 2014)
The model needed to be tuned to perform as expected. This included checking
connections and parameters. Data from H&MB was matched. The boundary
conditions were verified. The ASC Loop was tuned accordingly.

17. 12
6.5. REVIEW OF MODEL BY THE MENTOR (22nd
July 2014)
The model was reviewed and approved by the mentor. The ASC Loop and heat
exchanger were functioning properly; values matched those given in H&MB.
The model thus prepared was able to simulate the overall working of the
processing system.
7. REPORT (23rd
to 30th
July 2014)
The format for summer training report was received from Mrs. Kesavan Vimalpriya,
Group Manager at KOGT. As it was already stated that a daily activity report shall
be necessary for the report, the same became a major part of the training description.
Various members of the KOGT family were consulted during the preparation of this
report. The various references have been duly mentioned. It was later shown to the
mentor and Mrs. Vimalpriya for review. The suggestions received were incorporated
and the final draft was submitted to Mrs. Vimalpriya.

18. 13
ANALYSIS
The training was fundamental in advancement of understanding of the engineering
profession. Having an opportunity to train in the field of simulation was a rare one in
itself. The organization played a pivotal role in making it an experience worth
cherishing. The KOGT family; with a wide range of specialists on various fronts – be it,
software or sales or managing; always had a lot to offer to a learning mind. Despite
being busy with approaching project deadlines, the overall mood was playful. A fine
example of team spirit was ‗K-Sports‘ – a week (23rd
to 27th
June 2014) full of various
sports played by the employees. The employees spared time out of their schedules for
this event. A host of sports (box cricket, skipping and carrom) were played. Another
initiative by the organization is ‗Friday snacks‘ wherein every Friday a particular food
item (as decided by the employees) is served; funded by KOGT. The 8-hour working
day at Kongsberg since 1907 is an instance of the rich legacy that this 200-year old
organization (1814 – 2014) has.

19. 14
CONCLUSION
The summer training not only taught the basics of oil and gas processing and its
simulation; it also signified the importance of a positive working environment in an
organization. The basic concepts regarding oil and gas processing were duly
strengthened, owing to the lectures organized by KOGT family. This was followed by a
relatively rare opportunity to work on dynamic process simulation with one of the world
leaders in the market. K-Spice® is a huge addition to the skill set for any professional
due to its accurate and field-like results. The user guide and tutorial project did set the
stage well for an in-depth work on K-Spice®, which the project eventually demanded.
A special mention does belong to the KOGT family for their efforts in improving the
experience multi-folds. ‗K-Sports‘ deserves a special mention for showcasing the
sportsmanship spirit of this organisation. Such initiative by the employees and the
support by higher management is the reason why Kongsberg still flourishes, even after
200 years.
My only suggestion to this otherwise flawless training programme that takes care of all
round enrichment of a trainee‘s skills would be to expand it to the institutions. It shall
prove to be a great two-way exchange of ideas for the organization and the new crop of
engineers. Visiting colleges for recruiting trainees shall not only help the upcoming
engineers in understanding more about simulation but also create a wide and efficient
pool for the organisation to choose worthy employees from. Hence, it would in my
view, go a long way in further cementing the legacy of this organisation.

20. 15
BIBLIOGRAPHY
S.No. REFERENCES
1
Mokhatab, et al. (2006). Handbook of Natural Gas Transmission and
Processing. Burlington, Massachusetts: Elsevier BV
2
Coughanowr, D. M., & LeBlanc, S. E. (2009). Process Systems Analysis and
Control. New York: The McGraw-Hill Companies, Inc.
3
Gas Processors Suppliers Association (2012). GPSA Engineering Data Book.
Tulsa, Oklahoma: GPSA Press
4
Venkatswamy, K. (2013). Offshore Oil and Gas Production Systems
Retrieved June 05, 2014, from
http://www.scribd.com/doc/160169042/OffshoreoilandProd-pdf
5
McArdle, et al. (2010). The Life Cycle Simulator: From Concept to
Commissioning... and Beyond (SPE-128490-MS). Ultrecht, The Netherlands:
SPE Intelligent Energy Conference and Exhibition. Retrieved from
https://www.onepetro.org/conference-paper/SPE-128490-MS
6
K-Spice® Product Sheet. (n.d.). Retrieved July 01, 2014, from
http://kongsberg.com/~/media/KOGT/Files/2014/Resources/Downloads/Prod
uct%20Sheets/Kongsberg_Product_sheet_A4_K-Spice_150.ashx
7
Improving Decision Making in Real Time. (n.d.). Retrieved July 29, 2014,
from http://www.bp.com/en/global/corporate/about-bp/bp-and-
technology/more-recovery/real-time-data-and-decisions/bp-well-advisor.html
Table_2

21. 16
APPENDIX- A
KONGSBERG OIL & GAS TECHNOLOGIES PVT. LTD.
Kongsberg Oil & Gas Technologies Pvt. Ltd. (KOGT), Mumbai, a wholly owned
subsidiary of Kongsberg Gruppen ASA (KONGSBERG) was founded in the year 2009.
KOGT serves the oil and gas industry as a developer of high performance technology
solutions for drilling operations, production, and the subsea environment. It optimises
oil and gas operations through subsea engineering and technology development, data
management, simulation and integration. Furthermore, it also provides analysis tools
and consultancy services. The goal of all the deliveries is to significantly improve
operational, HSE and financial performance.
Severable notable products from KOGT are as follows:
S.No. PRODUCTS SERVICES
1 SiteCom® Drilling
2 Rig Manager Rig Management
3 Riser Management System (RMS) Riser Management
4 K-Spice® Production Assurance
5 LedaFlow® Flow Assurance
6 Production Manifolds
Pipeline End Manifolds
Pipeline End Termination
Riser Base
Spools
Pipeline Support
Protection Structures
Subsea Products & Systems
Table_3

22. 17
APPENDIX- B
K-SPICE®
K-Spice® has been under development by KONGSBERG engineers since 1989. It has
been developed from the start to meet the evolving demands for sophisticated and
advanced simulation and decision-support systems in the petroleum and chemical
industries.
K-Spice® is a dynamic process simulation solution designed for detailed simulation of
oil and gas process and control systems throughout the whole life cycle. The simulator
combines improved features for system management, thermodynamics and numerical
solvers with flexible and intuitive graphical user interface.
K-Spice® is a tool for dynamic simulation of chemical processes in general and
upstream oil and gas processes in particular. A dynamic simulator solves the mass and
energy balances in a process system to obtain a rigorous description of the system's
time-varying behaviour. K-Spice® deals with this problem by decomposing that process
into rigorously-modelled unit operations while using robust numerical methods —
equation-solving and implicit integration — to solve the resulting process system.
The following list outlines the main actions that an engineer takes when building a
dynamic simulator of a process:
1. Model building
The process of putting the data files together that describe the topology of the
model, i.e., which modules are used and how they are connected — including
entering parameters for each module and generating an initial condition (usually a
steady state).

23. 18
2. Model modification and tuning
This refers to the process of making minor modifications to the model to investigate
alternative configurations, new control strategies or new equipment.
3. Model testing
The approach of running through a variety of test runs and generating report files as
required.
4. Linking to on-line systems
K-Spice® can be linked to process databases, DCS, PLC or SCADA systems This is
usually done using the OPC protocol, but proprietary interfaces are also supported.
5. Building custom user interfaces
K-Spice® can be used to develop specific user interface configurations for training
or emulation of various control systems
6. Linking to other simulation systems
Specialised, packaged and complex equipment, such as multiphase flow lines,
chemical reactors, compact separators, gas liquefaction plants and compressor
control systems are often modelled by specialised dynamic simulation tools. K-
Spice® links to these tools and allows them to work as an integrated part of the K-
Spice® simulation. In particular, K-Spice® provides seamless integration with
KONGSBERG's LedaFlow® multiphase flow assurance simulator.
K-Spice® caters to different user groups, ranging from novice/casual users to
experts (power users). It is a valuable dynamic simulation tool for process design
and operations, including:
a. Engineering studies
b. Design response evaluations

24. 19
c. Control strategy development and testing
d. Real-time pipeline monitoring and management, including leak detection
and performance optimization
e. Testing and validation of control systems
f. HAZOP studies
g. Model-based predictive control development and testing
h. Training simulators
The benefits of K-Spice® solutions for production assurance include:
a. Shorter project schedules
b. Increased learning opportunities
c. Improved safety
d. Improved efficiency
e. Reduced costs
K-Spice® Design lifecycle simulation software allows continuous simulations to
run throughout project development and operational phases, enabling process and
control design verification.
Fig_1

25. 20
APPENDIX- C
OIL & GAS PROCESSING (UPSTREAM)
As more offshore fields near the end of easily recoverable hydrocarbons, the associated
fields are experiencing an increase in the production of reservoir water and solids (sand,
etc.); the industry is becoming one that must address the produced water in order to
extract additional reserves.
2002 2003 2004 2005 2006 2007 2008 2009
ExxonMobil 2496 2516 2571 2523 2681 2616 2404 2387
BP 2018 2121 2531 2562 2475 2414 2410 2535
PetroChina 2109 2119 2233 2270 2276 2312 2380 2311
Shell 2359 2379 2253 2093 2030 1899 1771 1680
Chevron 1897 1823 1737 1701 1759 1783 1676 1872
Total 1589 1661 1695 1621 1506 1509 1456 1381
ConocoPhillips 891 1237 1242 1447 1698 1644 1367 1615
ENI 921 981 1034 1111 1079 1020 1026 1007
StatoilHydro 1112 1132 1135 1102 1058 1054 1056 1067
Table_4

26. 21
The above data shows how the ‗peak oil‘ is bygone and most of the world‘s oil
production has entered a terminal decline. However, offshore is one of the few
remaining places where oil majors can increase production. Offshore locations of
hydrocarbons are thus being developed in deeper waters, from increasingly-remote
locations and in extreme conditions.
Fig_2
Henceforth, oil and gas processing plays a major role in the modern petroleum industry.
The fluids produced from offshore wells need treatment before they can be shipped
ashore via pipeline or tanker. Hence the process plant is a vital part of any offshore
installation.

27. 22
Fig_3
Oil & Gas processing may be primarily categorised as:
1. Onshore Processing
Onshore terminals have fired heaters followed by separators and coalescers to
stabilize the crude and remove any produced water not separated offshore. The
separators tend to operate at a lower pressure than the offshore separators and so
more gas is evolved. The associated gas is compressed, dew-pointed and exported
via a pipeline or flared. These terminals frequently have large crude oil storage tanks
to allow offshore production to continue if the export route becomes unavailable.
The output is exported to the refinery either by pipeline or tanker.

28. 23
2. Offshore Processing
Offshore treatment plant processes are simpler compared to those in refineries and
chemical plants. They are based purely on thermodynamic phase equilibriums,
where fluids evaporate/condense at different temperatures, and no chemical
reactions take place.
Fig_4

29. 24
A wide range of modules are utilised in oil and gas processing and a host of new
technologies are being developed every day to assist the engineers in obtaining
maximum profitable outputs. The following are some of the major processing modules
in the industry:
1. Separation
The basic motive, here is to separate oil, gas and water from the crude. Initially, well
fluid from various wells/ well platforms / subsea manifold reaches the process
complex via subsea pipelines and risers and is further processed. This generally
consists of a production manifold, inlet heater, separators, transfer pumps, export
pump, export oil metering. The well fluid is received in the production manifold.
Separator is a vessel in which 3 phase separation of well fluid into oil, gas & water
occurs; this separation is mainly gravity separation. Residence time in the vessel is
an important criterion for better separation in this case. The separated gas is further
routed to gas compression and dehydration module (discussed later). Compressed
gas is sent to the lift gas network for lifting the producers and excess gas is exported
via pipelines. The separated oil flows to the oil manifold and separated water flows
to the produced water conditioning unit. From oil manifold, the crude oil flows to
crude oil heater in which it is heated with hot oil. This enhances the separation of oil
& water in surge tanks (second stage separation). Demulsifier chemical dozed in oil
manifold further promotes the breaking of water-oil emulsion.
Multiple stages of such separators may be installed depending on the design layout
and the quality of output expected from the separation process. Hence, two or more
separators may be employed in series.

30. 25
Fig_5
2. Gas Compression, Dehydration & Export
2.1. Gas Compression
The gas from separators, surge tanks, export gases or other process platforms is
compressed to about 90-100 kg/sq. cm as per requirements. Normally, gas
turbine driven centrifugal compressors, known as PGC‘s (Process Gas
Compressors), are used. The gas is then dehydrated to prevent formation of gas
hydrates.

31. 26
Fig_6
2.2. Gas Dehydration & Export
The compressed gas is dehydrated in a glycol contactor with Tri Ethylene Glycol
(TEG) as an absorbent for moisture from compressed gas. Glycol contactor is a
bubble cap tray column with many bubble cap trays. TEG flows counter current
with compressed gas from the top of the column. TEG comes in contact with
compressed gas in the bubble cap trays; selectively absorbs the moisture from
the gas; and dehydrates it. The dehydrated gas is sent to feed gas lift wells on
priority basis and the remaining to export gas line. The TEG rich in moisture is
sent for re‐concentration, where it is converted to lean glycol and recycled back
to contactor for dehydration.

32. 27
Fig_7
3. Produced Water Conditioning
The water produced along with oil and gas from the wells is to be treated to within
acceptable levels of quality in terms of oil ppm. The conditioning unit consists of
flash vessel, CPI (Corrugated Plate Interceptor) Separators, IGF (Induced Gas
Floatation Unit) and sump caisson.

33. 28
Fig_8
3.1. Flash Vessel
The vessel receives water from inlet separator and surge tank. It is maintained at
0.8 kg pressure. Most of the dissolved gases in the produced water flash out
which are routed to the LP flare header. The associated oil from the produced
water is routed to closed drain header and is collected in the sump caisson.
3.2. CPI Separator
The water from flash vessel flows into many CPI separators in parallel. Oil from
a CPI separator is collected in a tank from and pumped to an oil manifold. The
gas goes to LP flare header.
3.3. IGF Unit
This unit receives water from CPI separators. It is a tank in which gas bubbles
are aerated with motor driven agitators. The bubbles float oil droplets to the
surface. The collected oil is pumped back to CPI separators.

34. 29
3.4. Sump Caisson
Water from IGF is routed to Sump Caisson which is a vessel with bottom end
open through which water continuously drains into the sea. Oil floating in the
surface of sump caisson is collected in the blow caisson and lifted up and flown
into the skimmer with gas injection.
4. Sea water Processing and Injection System
This is done to maintain reservoir pressure as well as water flooding. The quality of
water injected is strictly complied with existing standards. Pipelines carrying
injection water to wells and well platforms are monitored by chemical dozing.
Fig_9

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4.1. Sea water Lifting and Filtering
Water from sea is lifted with seawater lift pumps and fed to coarse filters,
followed by fine filters for pumping. The coarse filters filter upto 20 microns of
impurities, whereas the fine filters can filter upto 2 microns. Polyelectrolyte and
coagulates are also added to sea water lift pump discharge to promote
coagulation of suspended particles.
5. Future Technologies
5.1. Intelligent Wells
Fig_10

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5.2. Digital Oil Fields
Fig_11
5.3. Multiphase Pumping
Multiphase production systems require the transportation of a mixture of oil,
water and gas, often for many miles from the producing well to a distant
processing facility. This means that the fluid is separated before being pumped
and compressed through separate pipelines. By eliminating this equipment, the
cost of a multiphase pumping facility is about 70% that of a conventional
facility. Hence, significantly more savings can be realized if the need for an
offshore structure is eliminated altogether.

37. 32
5.4. Subsea Processing
This technique is generally used in deepwater for separation of oil and water.
The water can then be reinjected in a mature field to boost production. Cyclone
modules may be used to treat this water before injection into a reservoir.
5.5. Virtual Flow Metering – Overall Flow Metering
Fig_12
Kongsberg has developed tools and workflows that use a dynamic model of the
wells, flow lines, and reception facilities to solve flow measurement and
allocation problems in a cost effective way.
Kongsberg Oil & Gas K-Spice® Meter flow metering systems, or production
reconciliation systems, utilise all available sensors in subsea and topside
systems, and provide you with a full and detailed up-to-date model of the
complete process.
Recently, however, a growing interest has been seen in field development
projects going beyond the scope of traditional VFM system and to integrate an
even larger portion of the available measurements for flow metering and
production allocation. These systems are called Overall Flow Metering systems
(OFM‘s) or production reconciliation systems The aim is to integrate all

38. 33
available sensors in the subsea and topside systems – with the metering system
fully functional during all operational scenarios – dynamic as well as steady
state.
5.6. Subsea Storage Units
Fig_13
The Subsea Storage Unit (SSU) is a gravity based storage unit that employs the
new concept of a ―flexible bag‖ protected by a dome for oil storage on the sea
floor. The system offers a safe, more cost-effective method of developing subsea
fields in extreme weather zones or in the Arctic where ice is prevalent.
a. Flexibility – The solution can be placed at any water depth and is adjustable
in size
b. Safety – The solution employs a double barrier against leakage to the sea
c. Efficiency – The SSU enhances the economics of fields with insufficient
reserves to support full field development.

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5.7. BP Well Advisor / KONGSBERG Discovery Web
Fig_14
The BP Well Advisor program aims to integrate the analysis and presentation of
real-time data with applicable practices and expertise to provide the right
information in the right place at the right time; supporting operational decision-
making through all phases of the well-construction lifecycle.
The new consoles are based on KONGSBERG‘s Discovery Web platform,
which is part of the SiteCom® suite of software. The development is expected to
deliver four to six new consoles – or ‗dashboards‘ – each year of the three year
agreement. BP and KONGSBERG are working together to optimize training and
support for the solution as it is rolled-out.
Hence, this is an overview of the present and future of Oil and Gas processing industry.