Group Project Guideline

Evaluate the energy consumption of the following offshore oil and gas facility, identify energy saving options and suggest the energy supply options to meet the current and future demands of the facility. You should include basic engineering calculations and analysis in your proposal. Economic analysis based on assumed cost of the proposed equipment/facility is required for this project. You must demonstrate how you achieve your selection and how you de-risk your proposal. You will submit a report (approx 25 pages) and a ppt of max. ONE (1) slide only for your groups work. Remember, youre only part of a whole. So work together.

MAB4633/MBB4513

2011 UTP Slide No. 1

Job Invoice for CTR

An offshore oil producing facility is currently used for exploration and production operations of an oil field, 50 km offshore Sarawak. The facility is designed to handle 300kbpd of oil production from which 20% of the well output is natural gas. The energy demand for the platform (LQ, motors, drilling etc.) is 150 MW Peak. The existing power generation facility provides for only 45MW Peak at 100% loading. The facility operators need to decide on the additional power generating options for the platform. The existing energy scenario for the facility can be summarized in the following table:

MAB4633/MBB4513

2011 UTP Slide No. 2

Equipment on site
Equipment Gas Turbines (2 nos.) Diesel Genset Fire water pump Main Oil Line Pumps (4 nos.) Auxiliary pumps Refrigeration and AirConditioning (Vapor Compression cycle ) Rated Power 45MWp 1MW 500kW 550kW 250kW 800kW Loading 100% 0% (standby) 0% (standby) 70% 50% 80% Thermal /Mechanical Efficiency 23% 22% 20% 75% 69% 24% Fuel Gas from field Diesel storage tank Diesel day tank Electricity Electricity Electricity

Utilities Process
Process Drilling Future Requirements

1MW 10MW
2MW 40MW 100MW

80% 70%
50% 100% 100%

30% (avg) 20% (avg)

80% 85% -

Electricity Electricity
Heating Electricity Electricity

MAB4633/MBB4513

2011 UTP Slide No. 3

Renewables
Time (hrs) 0800 0900 1000 1100 1200 1300 1400 1500 1600 1700 Typical Daily Solar insolation (W/m2) 165 170 185 190 190 290 380 305 280 170 Typical daily averages for the months between April to October 0.5 0.8 Time Typical daily averages for the months between October to December Typical daily averages for the months between January to March 0.5-1 Wave Heights (m) 1-1.5 Time Typical daily averages for the months between October to December Wind Speeds (m/s) 2-6

1800
1900

1150
50

MAB4633/MBB4513

2011 UTP Slide No. 4

Flare
Time Jan Flare flowrates (kg/hr) 45 July Time Flare flowrates (kg/hr) 45 Time Typical blowdown requirements Flare flowrates (kg/hr) 500

Feb

50

August

55

March

50

September

60

April

October

May

November

June

45

December

MAB4633/MBB4513

2011 UTP Slide No. 5

Field Gas
Time Jan Field gas Availability (MMcf/d) 150 July Feb 100 August March 110 September April 100 October May 100 November June 110 December 110 110 110 150 100 Time Field gas Availability (MMcf/d) 120

MAB4633/MBB4513

2011 UTP Slide No. 6

LQ Demand
Time 0800 0900 1000 1100 1200 1300 1400 1500 Typical Daily LQ demand data (kW) 950 900 750 500 1100 900 900 500 Time 2000 2100 2200 2300 2400 0100 0200 0300 Typical Daily LQ demand data (kW) 1000 1100 750 500 500 500 500 500

1600
1700 1800 1900

800
750 600 950

0400
0500 0600 0700

500
650 650 950

MAB4633/MBB4513

2011 UTP Slide No. 7

CTR - Lab projects

Cost per person = RM60/hr Time per person = 8 hrs/week Group cost per day = (60 x 8 x 5 )/5 = RM480/day Ext consultant cost (Lab tech + GA) = RM120/hr x 2 = RM240 Total lab cost (10 days) = RM4800 + 240 = RM5040/lab (FIXED)

Group lead please kindly keep track and recover CTR from commencement of lab/project. Include CTR in Report. Recovered CTR = 5040 (Amount You Spent)

CTR - Group project

Cost per person = RM60/hr Time per person = 8 hrs/week Group cost per day = (60 x 8 x 5 )/5 = RM480/day Total project cost (35 days) = RM17,280 = RM17,280 (FIXED)

Group lead please kindly keep track and recover CTR from commencement of lab/project. Include CTR in Report. Recovered CTR = 5040 (Amount You Spent)

RM60/hr ?
RM60/hr x 8 hrs/day x 200 days = RM96,000 Employee cost to company per month RM96,000/12 =RM8,000 Employee gross compensation = RM8,000/3 = RM2667 per month

Effective Employment 365-(52x2)-(15)-(17)=229 days

Co. leverage ratio (2-6) Market capitalisation Debt (5~26%) depending on rating Stock & dividend payout Bonus to Snr. Exec

How to include CTR in Report

DESCRIPTION FIXED COST Group cost per day Ext. Consultation Days spent Exp cost 480 240 7 480*7+240 (3600) RECOVERED 1400 ANALYSIS COST ($) 5040

Report Expectation Report to be reviewed by colleagues before submission Contribution of each members clearly outlined Report format is correct (see template given) No plagiarism

Backup The following ideas may help you

MAB4633/MBB4513

2011 UTP Slide No. 13

Ghent Chart
Assess and identify
TASKS
1 2 3 4 5 6 7 8 9 10

Select

Develop
DAYS
11 12 13 14 15

Execute

Operate

16

17

18

19

20

1 2 3 4 MILESTONES A B C

MAB4633/MBB4513

2011 UTP Slide No. 14

Where We Are Now

Exploration Appraisal
Assess and identify
1984 -Discovery 6406/ 9 -01

Development
Select Develop
1987 Plan for development endorsed

Production
Execute Operate
1993 First Oil

Mature Field
Assess and identify
1998 4D Seismic

Select

Develop
1999 2000: Infill drilling, gas export pipeline

Mature Field
Assess and identify
2001 2004
More infill drilling Seismic analysis MAB4633/MBB4513 Production data analysis 2011 UTP Slide No. 15

Select

Develop

2004 - Remaining opportunity assessment

Outline
Identify & Assess

Select

Define

Execute

Operate

New opportunities
Identify & Assess Select

Define

Execute

Operate

Where are we now?

History Reservoir Characteristics

How are we going to get there?

Action Plan

Where do we want to be?

Opportunity Realized Stakeholder Mapping Opportunity Vs Threats Strategic Fit (HSE)

Reservoir Performance Opportunity Statement

MAB4633/MBB4513

2011 UTP Slide No. 16

Drxxxxx Development Activities - Summary

Discovery well followed by 5 appraisals First 3-D seismic survey Field development with 7 producers (5 platform and 2 subsea and 5 subsea injection wells First oil 1984 1994 Initial 4D seismic acquisition

2004

Drilling of 6th platform producer Gxxx West development with 2 producers 2nd 4D seismic data acquirement Drilling of 2 Rxxx south subsea producers Conversion of 1 subsea producer to injector
MAB4633/MBB4513

4D/high resolution seismic survey

2011 UTP Slide No. 17

Stakeholder Mapping
Manageme nt Manageme nt

High

Shareholde rs Partner

Partners
Seismic Vendors

s
Shareholder s Competitor s Competitor s

Interest and Support

Inform
Equipment Vendors

Leverag e Well
Service s

Me d

Contractors

Monitor
Fishing Industry Lobbyist

Engage
NGO

Costs Infill Drilling MAB4633/MBB4513

Low

Low

Me d Influence

High
2011 UTP Slide No. 18

Risk Analysis
Separator Capacity Debottlenec k

Opportunities
Using current manifold system

High

Impact on Unrisked Value

Subsurface realization update

Reduce cost Drill/redrill from existing wells

Me d Low

Poor supplier relationship Inclemen t weather

Drilling rig scheduling issues Partner support

Internal approvals within ORP Worker strikes Loss of Compressio n

Low Me d High
2011 UTP Slide No. 19

Seismic processing delays

Threats Me d Ability to Influence High

Low
MAB4633/MBB4513

Value Drivers and Critical Success Factors

Value Drivers
Oil production rate Manage/Monitor water-flood areas Update geological model using well or seismic data

Critical Success Factors

Good sweep efficiency Utilize idle well slots to tap poorly drained

Use of new technology - Simplified well design, fewer casing strings - Improved history matching Knowledge sharing Keeping government and unions continuously engaged Communicate with other operators in the area to investigate mutually beneficial (oil and gas pipeline, selling facility space)

Company reputation

Minimize Capex and Opex scenarios

Near field exploration to increase reserves Investigate tertiary recovery methods to extend life of field Operational Success Preventive maintenance on injection to maximize uptime
2011 UTP Slide No. 20

MAB4633/MBB4513

Key Takeaway from This Project You need to learn how to (& when not to) make decision during conflict of situation, where information is insufficient, outlook is uncertain, and your peers would do everything they could to overpower you.

Plan for the worst, hope for the best but dont over do it.
John Lennon: Life is what happens to you when you are busy making your plan

MAB4633/MBB4513

2011 UTP Slide No. 21