UNIVERSITY OF PETROLEUM & ENERGY STUDIES

CENTRE FOR CONTINUING EDUCATION

EXECUTIVE MBA
(OIL & GAS MANAGEMENT)
SEMESTER I
YEAR: 2014 SESSION: JULY
ASSIGNMENT 1
FOR
Understanding Oi &
Gas !"siness
#MDSO $%1D&
#TO BE FILLED BY THE STUDENT&
NAME' (((((((((((((((((((((((
SAP NO)REGN NO' (((((((((((((((((((((((
Section A (20 Marks)
Write short notes on any four of the following
1. Concept of petroleum, its constituents and their significance
2. Overview of business environment in each block of the chain
3. a!or players in the "etrochemical sector
#. "rimary "ro!ection ethods
$. %ypical &ield Configuration for "roduction
Section B (30 marks)
(Attempt any three)
1. 'iscuss the components of crude oil and the products from crude oil.
2. (ighlight the history of Oil and )as *ndustry.
3. 'iscuss the formation of oil traps and the e+ploration for oil , gas.
#. -+plain the offshore production facility.
Section C (50 marks)
(Attempt all questions. Eery question carries !0 marks)
.ead the case /0)1'W2134 5 1 60)1'78, 9ay of 9engal, *ndia. and answer the following
:uestions;
Case Stu"y# $%&'()&*+ , ! ($%&'-). Bay o/ Ben0al. 1n"ia
%he 4,1<<km= 0)1'W2134 5 l 60)1'78 block lies in the 0rishna1)odavari basin of the 9ay of
9engal on *ndia>s east coast. %he seabed slopes sharply causing water depths to vary between
?<<m 62,23?ft8 and 1,?<<m 6$,$??ft8.
%he field is operated by .eliance *ndustries 63<@8 on behalf of 2iko .esources 61<@8. 9lock
reserves have been put at 1#,<<<bn cubic feet of gas and 1#<m barrels of oil.
%he first three discoveries 6'hirubhai11, 'hirubhai12 and 'hirubhai138 have estimated gas
reserves of appro+imately eight trillion cubic feet. *n arch 2<<3 the deepwater rig 'iscover
$3# discovered 'hirubhai1#, which has in1place gas volumes of 1,?<< billion standard cubic feet
6bcf8.
*n &ebruary 2<<7 .eliance announced that it had encountered the thickest hydrocarbon column
to date, the A12 well 62km from the A11 discovery well8 reaching a depth of about 3.7 km
and penetrating a gross hydrocarbon column of 13#m, which consisted of 1?<m of gas 5
condensate 6$3BA"*8 and 2#m of oil 6#2BA"*8.
%he pro!ect is e+pected to eventually cost over C1<bn. "roduction of crude oil from the block>s
A field started in Deptember 2<<4 while gas production from the 'hirubhai11 6'18 and
'hirubhai13 6'38 fields began in April 2<<3.
%he initial rate of production from the A field is $,<<<bpd and reached 33,<<<bpd by ay
2<1<. *n Euly 2<1< $# million cubic metres per day of natural gas was produced from the '1 and
'3 fields. 9y 2<11 the oil and gas peak production from 0'1'7 is e+pected to reach
1#<,<<<bopd and 2.42 billion cubic feet per day.
$%&'- contracts
F%he 4,1<<km= block 0)1'W21345l 60)1'78 lies in the 0rishna1)odivari basin, 9ay of
9engal.F
Work at the 0)1'7 field included the development of at least 14 production wells, with subsea
e:uipment, pipelines, a riser platform and an onshore terminal. *n Eanuary 2<<7 .eliance
awarded the overall -"C contract for the pro!ect to GD1based 9echtel.
%his fast1track development involved one of the biggest and most comple+ underwater
installation campaigns ever. Aker 0vaerner Dubsea was responsible for the complete subsea
production system in a C#<<m engineering, procurement and construction 6-"C8 contract.
9ecause of the high flowrate potential the $$t trees have a 12?mm and 1?4mm bore. %he subsea
contract was based on 13 subsea trees tied into si+ si+1slot production manifolds each weighing
22$t. %he longest tieback is 7.#km. &rom these manifolds, production flows through in1field
pipelines to the 3?<t pipeline end manifold 6"H-8. %he longest manifold tieback is 7.4km. %he
"H- was designed to accept additional pipeline tie1ins.
%he umbilical distribution hub weighs 1?<t and there are three 11<t subsea distribution
assemblies. %he 32 lengths of steel1tube umbilical total 1<1km, there is $?km of electric power
cable and a comprehensive subsea control system.
A pair of 1<km 2#in production lines link the "H- to a control and riser platform 6C."8
located in 1<<m of water. Compression facilities will ease the anticipated reservoir pressures
drop up to three years after start1up. )as e+ports will use three 2#in lines running 2$km from the
C." platform to shore where the gas will be routed to the offshore terminal at 0akinada. %he
-) used to prevent hydrates will be reprocessed in a closed loop system provided by Aker
0vaerner.
$%&'2 plat/orm 3acket
%he platform !acket was manufactured as part of an engineering, procurement, construction, and
installation contract by E .ay c'ermott. %he 3,<1$t !acket was built at E .ay>s fabrication
facility in organ City, Houisiana, with the piles and topsides fabricated at the company>s Eebel
Ali facility in the Gnited Arab -mirates.
%he !acket and cargo barge were loaded onto a fast transport vessel 6&%I8 at "ascagoula,
ississippi, for a #71day !ourney through the DueJ Canal to the marine and fabrication base on
9atam *sland, *ndonesia. %he !acket and cargo barge were then towed for appro+imately 12 days
to *ndia.
F9y 2<11 0'1'7>s oil and gas peak production is e+pected to reach 1#<,<<<bopd and 2.42
billion cubic feet per day.F
'eepOcean won a C177m three1year contract to provide a multipurpose subsea support vessel
and related services. .- -tive was deployed under a commercial agreement between
'eepOcean and %D arine to support development.
%he vessel is being used for installation, commissioning and inspection 5 maintenance 5 repairs
and is e:uipped with two work1class .OIs, crane capacity and an active heave compensated
winch system.
*n Eune 2<<4 .eliance began conceptual studies for the development of another nine natural gas
discoveries near the '1 and '3 gas fields. %he satellite discoveries are likely to be tied to the
production facilities for '1 and '3.
*n 'ecember 2<<3 a development plan for four satellite discoveries was submitted to the
government. A development plan for all the discoveries made in the block is being
conceptualised.
4uestions#
1. Analyse the case. Dummarise it in your own language in not more than 1<< words.
2. (ighlight the role of .eliance *ndustries in operating this oilfield shore.
3. -valuate the 0)1') Contracts.
#. -+plain why the 0)1'# platform !acket was manufactured.
$. Write a note on the 'eepOcean.