Introduction To Oil & Gas Manual

Petrofac
INTRODUCTION
TO
“OIL & GAS”
________________________________________________________
Petrofac Engineering Services India Pvt Ltd
INTRODUCTION
TO
“OIL & GAS”
Compiled By
K.C.Priyanka I K.R.Sahana I P.V.M.Chaitanya
(GETs – 2007 Batch)
Under The Guidance of

Mr. S. Venkatesan
(Consultant - Process)
_________________________________________________________
Petrofac Engineering Services India Pvt Ltd
ACKNOWLEDGEMENTS
We hereby would like to convey our sincere thanks to the following personnel for their
valuable suggestions & encouragement during the course of this work.
Mr. K.R.S.R.Krishna (General Manager)

Mr.R.Pasupathi (Deputy Manager-Projects)
Mr.G.K. Barani (Principal Engineer-Process)
Mr.P.Matheshwaran (Principal Engineer-Process)
FOREWORD
The purpose of “Introduction to Oil & Gas” is to provide the readers with a basic
understanding about the oil and gas industry. This work is a compilation from various
sources of information, thereby serving as a quick reference guide to the process and
non-process engineers working under various Petrofac Engineering divisions all over
the world. Aiming at providing a gist of the basic and most important areas in the
petroleum industry, this manual also helps familiarize with the basic operations and
common terminology used in the hydrocarbon sector.
CONTENTS
1. INTRODUCTION TO OIL AND GAS INDUSTRY 01

1.1 Petroleum – Chemistry and Composition 01
1.2 Formation of Oil and Gas 05
1.4 Sector wise Classification of the Industry 06
2. THE UPSTREAM SECTOR 09

2.1 Exploration Techniques 10
2.2 Drilling Platforms 12
2.3 Drilling a Well 14
2.4 Well Completion & Production 21
2.5 Enhanced Oil / Gas Recovery 30
3. THE MIDDLESTREAM SECTOR 32

3.1 Field Processing 32
3.2 Cross-country pipelines 39
3.3 Ocean Transportation 42
3.4 Tank Wagons & Tank Trucks 44
3.5 FPSO 44
3.6 LNG – Storage & Transportation 45
4. THE DOWNSTREAM SECTOR 49

4.1 Major Petroleum Products 49
4.2 Petroleum Refining & Petrochemical Operations 50
5. ASSOCIATED, UTILITY & SAFETY SYSTEMS 65

5.1 Storage & Metering of Oil and Gas Products 65
5.2 Power & Steam Generation 71
5.3 HVAC 74
5.4 DCS and SCADA 76
5.5 Water & Effluent Treatment and Disposal 79
5.6 Fire & Safety Systems 82
Introduction To “Oil & Gas”
1. INTRODUCTION TO OIL & GAS INDUSTRY
1.1 PETROLEUM – CHEMISTRY & COMPOSITION
Crude oils are complex mixtures containing many different hydrocarbon compounds
that vary in appearance and composition from one oil field to another. Crude oils range
in consistency from water to tar-like solids, and in color from clear to black. An
"average" crude oil contains about 84% carbon, 14% hydrogen, 1%-3% sulfur, and less
than 1% each of nitrogen, oxygen, metals, and salts.
Crude oils are generally classified as paraffinic, naphthenic, or aromatic, based on the
predominant proportion of similar hydrocarbon molecules. Mixed-base crudes have
varying amounts of each type of hydrocarbon. Crude oils that contain appreciable
quantities of hydrogen sulfide or other reactive sulfur compounds are called "sour."
Those with less sulfur are called "sweet."
BASICS OF HYDROCARBON CHEMISTRY
Crude oil is a mixture of hydrocarbon molecules, which are organic compounds of

carbon and hydrogen atoms that may include from one to 60 carbon atoms. The
properties of hydrocarbons depend on the number and arrangement of the carbon and
hydrogen atoms in the molecules. The simplest hydrocarbon molecule is one carbon
atom linked with four hydrogen atoms: methane. All other variations of petroleum
hydrocarbons evolve from this molecule.
Hydrocarbons containing up to four carbon atoms are usually gases, those with 5 to 19
carbon atoms are usually liquids, and those with 20 or more are solids. The refining
process uses chemicals, catalysts, heat, and pressure to separate and combine the
basic types of hydrocarbon molecules naturally found in crude oil into groups of similar
molecules. The refining process also rearranges their structures and bonding patterns
into different hydrocarbon molecules and compounds.
Petrofac Engineering Services India Pvt Ltd 1

Three Principal Groups or Series of Hydrocarbon Compounds that Occur Naturally in

Crude Oils are
a. Paraffins: The paraffinic series of hydrocarbon compounds found in crude oil have
the general formula CnH2n+2 and can be either straight chains (normal) or branch
chains (isomers) of carbon atoms. The lighter, straight-chain paraffin molecules are
found in gases and paraffin waxes. Examples of straight-chain molecules are methane,
ethane, propane, and butane. The branched-chain (isomer) paraffins are usually found
in heavier fractions of crude oil and have higher octane numbers than normal paraffins.
These compounds are saturated hydrocarbons, with all carbon bonds satisfied, that is,
the hydrocarbon chain carries the full complement of hydrogen atoms.
METHANE CH4 BUTANE C4H10 ISOBUTANE C4H10
b. Aromatics are unsaturated ring-type (cyclic) compounds which react readily because
they have carbon atoms that are deficient in hydrogen. All aromatics have at least one
benzene ring (a single-ring compound characterized by three double bonds alternating
with three single bonds between six carbon atoms) as part of their molecular structure.
BENZENE C6H6
C. Naphthenes are saturated hydrocarbon groupings with the general formula CnH2n,
arranged in the form of closed rings (cyclic) and found in all fractions of crude oil except
2 Petrofac Engineering Services India Pvt Ltd

the very lightest. Single-ring naphthenes (monocycloparaffins) with five and six carbon
atoms are more predominate, with two-ring naphthenes (dicycloparaffins) are found in
the heavier ends of naphtha.
CYCLOHEXANE C6H12 METHYL CYCLOPENTANE C6H12
OTHER HYDROCARBONS
Alkenes are mono-olefins with the general formula CnH2n and contain only one carbon-
carbon double bond in the chain. The simplest alkene is ethylene, with two carbon
atoms joined by a double bond and four hydrogen atoms. Olefins are usually formed by
thermal and catalytic cracking and rarely occur naturally in unprocessed crude oil.
ETHYLENE (C2H4) BUTENE (C4H8)
Dienes And Alkynes: Dienes, also known as diolefins, have two carbon-carbon double
bonds. The alkynes, another class of unsaturated hydrocarbons, have a carbon-carbon
triple bond within the molecule. Both these series of hydrocarbons have the general
formula CnH2n-2. Diolefins such as 1,2-butadiene and 1,3-butadiene, and alkynes such
as acetylene, occur in C5 and lighter fractions from cracking.
ACETYLENE (C2H2)

1,2-BUTADIENE (C4H6) 1,3-BUTADIENE (C4H6)
NON-HYDROCARBONS
Sulfur Compounds: Sulfur may be present in crude oil as hydrogen sulfide (H2S), as
compounds (e.g. mercaptans, sulfides, disulfides, thiophenes, etc.) or as elemental
sulfur. Each crude oil has different amounts and types of sulfur compounds, but as a
rule the proportion, stability, and complexity of the compounds are greater in heavier
crude-oil fractions. These Sulfur compounds are the primary contributors to corrosion in
refinery processing units.
Oxygen Compounds: Oxygen compounds such as phenols, ketones, and carboxylic

acids occur in crude oils in varying amounts.
Nitrogen Compounds: Nitrogen is found in lighter fractions of crude oil as basic

compounds, and more often in heavier fractions of crude oil as nonbasic compounds
that may also include trace metals such as copper, vanadium, and/or nickel. Nitrogen
oxides can form in process furnaces. The decomposition of nitrogen compounds in
Catalytic Cracking and Hydrocracking processes forms ammonia and cyanides that can
cause corrosion.
Carbondioxide: Carbondioxide may result from the decomposition of bicarbonates

present in or added to crude, or from steam used in the distillation process.
Trace Metals: Metals, including nickel, iron, and vanadium are often found in crude oils
in small quantities and are removed during the refining process. Burning heavy fuel oils
in refinery furnaces and boilers can leave deposits of vanadium oxide and nickel oxide
in furnace boxes, ducts, and tubes. It is also desirable to remove trace amounts of
arsenic, vanadium, and nickel prior to processing as they can poison certain catalysts.
Salts: Crude oils often contain inorganic salts such as sodium chloride, magnesium
chloride, and calcium chloride in suspension or dissolved in entrained water (brine).

These salts must be removed or neutralized before processing to prevent catalyst

poisoning, equipment corrosion, and fouling.
1.2 FORMATION OF OIL & GAS
Most crude oil and natural gas originate from plant and animal life that thrived
millions of years ago in swamps and oceans. These organic materials were
deposited with mud and silt from streams and rivers. The sediments eventually
hardened to form sedimentary rock. Heat and pressure transformed the soft parts of the
plants and animals into solid, liquid or gaseous hydrocarbons known as fossil fuels -
coal, crude oil or natural gas.
The oil and gas bearing structure is typically a porous rock such as sandstone or
washed out limestone. The sand might have been laid down as desert dunes or sea
floor.Oil and gas deposits form as organic material (tiny plants and animals) deposited
in earlier geological periods, typically 100 to 200 million years ago, under, over or with
the sand or silt, is transformed by high temperature and pressure into hydrocarbons.
For an oil reservoir to form, porous rock needs to be covered by a non porous layer
such as salt, shale, chalk or mud rock that can prevent the hydrocarbons from leaking
out of the structure. As rock structures become folded and uplifted as a result of tectonic

movements, the hydrocarbons migrates out of the deposits and upward in porous rocks
and collects in crests under the non permeable rock, with gas at the top, then oil and
fossil water at the bottom. This process goes on continuously, even today. However, an
oil reservoir matures in the sense that a too young formation may not yet have allowed
the hydrocarbons to form and collect.
1.3 SECTOR-WISE CLASSIFICATION OF THE INDUSTRY
The entire Hydrocarbon Domain can be discussed by broadly classifying into three
sectors namely Upstream, Midstream & Downstream.
Upstream Oil & Gas sector encompasses all the activities/operations that start from
Exploration for Hydrocarbons (HC) to the Production of the same. The search for HC
can be accomplished with various available Exploration Techniques (Seismic,
Geochemical, Gravity, Magnetic surveys etc). Once the oil/gas reservoir is plotted with
these survey techniques, ‘Drilling’ at the suitable location is commenced with all the
necessary infrastructure mobilized to the field. Successful drilling operation is normally
followed by “well completion” which includes installation of all the required sub-surface
& surface equipment for optimum production of these resources. The scope of
Upstream sector ends up with bringing up the hidden resources outside earth surface.
Midstream Oil & Gas sector encompasses all the Well-Head processing activities and
Oil & Gas transportation to the refineries or to the end users. This transportation can
sometimes stretch across continents. Long distance transport on land is carried out by
Cross-country pipelines, Tank-trucks or Rail-wagons, whereas water transport is
accomplished by Oil/Gas tankers or LNG carriers. Well-Head processing implies
preliminary separation & refining of the well stream to remove contaminants from it.
Phase separation, Crude Stabilization, Desalting, Dehydration, Sweetening etc are
some of these processing techniques employed. To put up briefly, this is the
transportation domain of oil & gas industry.
Downstream Oil & Gas sector encompasses all the Refining & Petrochemical
production operations. Basically refining fractionates crude oil into more valuable/usable

products of desired properties that find usage in varied industrial & domestic
applications. Likewise Petrochemical Production Plants use a variety of secondary
conversion processes to produce a wide spectrum of Petrochemicals, Solvents &
Pharmaceutical chemical feedstocks.

SECTOR-WISE CLASSIFICATION OF OIL & GAS INDUSTRY
MIDDLE STREAM DOWN STREAM

UPSTREAM
C2, C3, C4
NGL Plant Natural Gas Liquids
C1
Gas
Gas production LNG Plant LNG (for export)
processing plant
C1 – C4
Dehydration Sweetening NG Pipeline Cross-country Pipeline
C3, C4
LPG Plant LPG
3 PHASE SEPERATOR
Oil production Oil Transport Light ends LPG Plant LPG

Oil processing plant
(P/L & Tankers)
Well stream
Chemical
Desalting Stabilisation And storage feedstock
Polymers
Petrochemical Complex
Refinery Complex
Gasoline
Solvents
Jet fuel
Kerosene
Raw Materials for
Water Produced water Diesel other industries
treatment such as plastic,
Lube oil paint, synthetic
rubber, Surfactants
Fuel oil etc….
Disposal Re-injection Bitumen
Reservoir
2. THE UPSTREAM SECTOR
Oil and Natural Gas are closely linked sources of energy requiring much the same
methods for exploration and production. A variety of technologies are employed in the
oil and gas industry to identify oil and gas reserves, to access those reserves, and to
extract and deliver the products.
The exploration for oil and gas, which may be quite time and effort intensive and rely on
the collection and detailed analyses of extensive geologic information, involves a
number of activities, including the following:
Surveying and mapping surface and subsurface geologic features with

techniques such as seismic reflection to identify areas (called hydrocarbon traps)
where oil and gas may have accumulated;
Determining a geologic formation’s potential for containing commercial quantities

of economically producible oil and/or gas;
Identifying the best locations to drill an exploratory well to test the hydrocarbon
traps;
Drilling exploration and delineation wells to determine where hydrocarbons are

present and to measure the area and thickness of the oil and/or gas-bearing
reservoir or reservoirs;
Logging and coring wells to measure the permeability, porosity, and other
properties of the geologic formation(s) encountered; and
Completing construction of wells and site facilities deemed capable of producing

commercial quantities of oil and/or gas.

2.1 Exploration Techniques
The industry uses a number of proven methods to explore these resources. By far
the most common & reliable technique applied is ‘Seismic Survey’ which is explained
in the following sections. The methods available are:
9 Seismic Survey
9 Gravimetric Survey
9 Magnetic Survey
9 Paleontology & Palenology
9 Direct Indicators Methods
9 Indirect Indicators Methods
9 Co-Relations Analysis
9 Core Analysis
Oil exploration is the search by petroleum geologists for hydrocarbon deposits beneath
the Earth's surface. Visible surface features such as oil seeps, natural gas seeps,
pockmarks (underwater craters caused by escaping gas) provide basic evidence of
hydrocarbon generation (be it shallow or deep in the Earth). Areas thought to contain
hydrocarbons are initially subjected to a gravity survey or magnetic survey to detect
large scale features of the sub-surface geology. Features of interest (known as leads)
are subjected to more detailed seismic surveys.
ONSHORE SEISMOLOGY
In practice, using seismology for exploring onshore areas involves artificially creating
seismic waves (by a vibrator), the reflections of which are then picked up by sensitive
pieces of equipment called geophones embedded in the ground or placed on the
ground surface. The data picked up by these geophones are then transmitted to a
seismic recording truck that records the data for further interpretation by geophysicists
and petroleum reservoir engineers.

OFFSHORE SEISMOLOGY
Offshore seismic exploration is similar to onshore exploration, but rather than trucks and
geophones, a ship is used to convey equipment needed to generate the seismic waves
and gather the seismic data, and hydrophones are used to pick up seismic waves
underwater. The hydrophones are towed behind a ship in various configurations,
depending on the needs of the geophysicist. Rather than using dynamite or impacts on
the seabed floor, the seismic ship uses a large air gun that releases bursts of
compressed air under water to create seismic waves that travel through the earth’s
crust and generate the necessary seismic reflections.

2.2 DRILLING PLATFORMS
An oil platform is a large structure used to house workers and machinery needed to drill
and/or produce oil and natural gas through wells in the ocean bed. Depending on the
circumstances, the platform may be attached to the ocean floor, consist of an artificial
island, or be floating.
There are several distinct types of platforms and rigs:-
Fixed Platforms, built on concrete and/or steel legs anchored directly onto the seabed,
supporting a deck with space for drilling rigs, production facilities and crew quarters.
Such platforms are, by virtue of their immobility, designed for very long term use.
Various types of structure are used, steel jacket, concrete caisson, floating steel and
even floating concrete. Steel jackets are vertical sections made of tubular steel
members, and are usually piled into the seabed. Fixed platforms are economically
feasible for installation in water depths up to about 1,700 feet (520 m).

Compliant Towers, consist of narrow, flexible towers and a piled foundation supporting
a conventional deck for drilling and production operations. Compliant towers are
designed to sustain significant lateral deflections and forces, and are typically used in
water depths ranging from 1,500 and 3,000 feet (450 and 900 m).
Semi-submersible Platforms, having legs of sufficient buoyancy to cause the structure

to float, but of weight sufficient to keep the structure upright. Semi-submersible rigs can
be moved from place to place; and can be ballasted up or down by altering the amount
of flooding in buoyancy tanks; they are generally anchored by cable anchors during
drilling operations, though they can also be kept in place by the use of dynamic
positioning. Semi-submersible can be used in depths from 600 to 6,000 feet (180 to
1,800 m).
Jack-up Platforms, as the name suggests, are platforms that can be jacked up above
the sea using legs which can be lowered like jacks. These platforms, used in relatively
low depths, are designed to move from place to place, and then anchor themselves by
deploying the jack-like legs.
Drill-Ship is a maritime vessel that has been fitted with drilling apparatus. It is most
often used for exploratory drilling of new oil or gas wells in deep water but can also be
used for scientific drilling. It is often built on a modified tanker hull and outfitted with a
dynamic positioning system to maintain its position over the well.
Floating production systems are large ships equipped with processing facilities and
moored to a location for a long period. The main types of floating production systems
are FPSO (floating production, storage, and offloading system), FSO (floating storage
and offloading system), and FSU (floating storage unit). These ships do not actually drill
for oil or gas.
Tension-leg platforms, consist of floating rigs tethered to the seabed in a manner that
eliminates most vertical movement of the structure. TLPS are used in water depths up
to about 6,000 feet (2,000 m). The "conventional" TLP is a 4-column design which looks
similar to a semisubmersible. Proprietary versions include the Seastar and MOSES mini

TLPs; they are relatively low cost, used in water depths between 600 and 3,500 feet
(200 and 1,100 m). Mini TLPs can also be used as utility, satellite or early production
platforms for larger deepwater discoveries.
Spar Platforms, moored to the seabed like the TLP, but whereas the TLP has vertical
tension tethers the Spar has more conventional mooring lines. Spars have been
designed in three configurations: the "conventional" one-piece cylindrical hull, the "truss
spar" where the midsection is composed of truss elements connecting the upper
buoyant hull (called a hard tank) with the bottom soft tank containing permanent ballast,
and the "cell spar" which is built from multiple vertical cylinders. It also has the ability, by
use of chain-jacks attached to the mooring lines, to move horizontally over the oil field.
Subsea System: A subsea system ranges from a single subsea well producing to a
nearby platform to multiple wells producing through a manifold and pipeline system to a
distant production facility. These systems are being applied in water depths of atleast
7000ft or more.
2.3 DRILLING A WELL
Drilling is the most essential activity in oil & gas recovery. Once a prospect has been
identified, it is only through the actual penetration of the formation by the drill bit that the
presence of recoverable hydrocarbons is confirmed.
Once the site has been selected, it must be surveyed to determine its boundaries, and
environmental impact studies may be done. Then crew goes about preparing the land:
The land is cleared and leveled, and access roads may be built.
Because water is used in drilling, there must be a source of water nearby. If there
is no natural source, they drill a water well.
They dig a reserve pit, which is used to dispose of rock cuttings and drilling mud
during the drilling process, and line it with plastic to protect the environment.

Once the land has been prepared, several holes must be dug to make way for the rig
and the main hole. A rectangular pit, called a cellar, is dug around the location of the
actual drilling hole. The cellar provides a work space around the hole, for the workers
and drilling accessories. The crew then begins drilling the main hole, often with a small
drill truck rather than the main rig. The first part of the hole is larger and shallower than
the main portion, and is lined with a large-diameter conductor pipe. Additional holes are
dug off to the side to temporarily store equipment - when these holes are finished, the
rig equipment can be brought in and set up.
Depending upon the remoteness of the drill site and its access, equipment may be
transported to the site by truck, helicopter or barge. Some rigs are built on ships or
barges for work on inland water where there is no foundation to support a rig (as in
marshes or lakes).
MAJOR RIG COMPONENTS:
Once the equipment is at the site, the rig is set up. Here are the major systems of a land
oil rig:
Power system
Large diesel engines - burn diesel-fuel oil to provide the main source of power
Electrical generators - powered by the diesel engines to provide electrical power
Mechanical system - driven by electric motors
Hoisting system - used for lifting heavy loads; consists of a mechanical winch
(drawworks) with a large steel cable spool, a block-and-tackle pulley and a
receiving storage reel for the cable
Turntable - part of the drilling apparatus
Rotating equipment - used for rotary drilling
Swivel - large handle that holds the weight of the drill string; allows the string to rotate
and makes a pressure-tight seal on the hole

Kelly - four- or six-sided pipe that transfers rotary motion to the turntable and drill string
Turntable or rotary table - drives the rotating motion using power from electric motors
Drill string - consists of drill pipe (connected sections of about 30 ft / 10 m)

and drill collars (larger diameter, heavier pipe that fits around the drill pipe and
places weight on the drill bit)
Drill bit(s) - end of the drill that actually cuts up the rock; comes in many
shapes and materials (tungsten carbide steel, diamond) that are specialized
for various drilling tasks and rock formations
Casing – large diameter concrete pipe that lines the drill hole, prevents the
hole from collapsing, and allows drilling mud to circulate
Derrick - support structure that holds the drilling apparatus; tall enough to
allow new sections of drill pipe to be added to the drilling apparatus as drilling
progresses
Blowout Preventer - high-pressure valves (located under the land rig or on

the sea floor) that seal the high-pressure drill lines and relieve pressure when
necessary to prevent a blowout (uncontrolled gush of gas or oil to the surface,
often associated with fire).

Circulation system - pumps drilling mud (mixture of water, clay, weighting

material and chemicals, used to lift rock cuttings from the drill bit to the
surface) under pressure through the kelly, rotary table, drill pipes and drill
collars
o pump - sucks mud from the mud pits and pumps it to the drilling apparatus
o pipes and hoses - connects pump to drilling apparatus
o mud-return line - returns mud from hole
o shale shaker - shaker/sieve that separates rock cuttings from the mud
o shale slide - conveys cuttings to the reserve pit
o reserve pit - collects rock cuttings separated from the mud
o mud pits - where drilling mud is mixed and recycled
o mud-mixing hopper - where new mud is mixed and then sent to mud pits

Drilling fluid is an important component in the drilling process. A fluid is required

in the wellbore to:
9 Cool and lubricate the drill bit,
9 Remove the rock fragments, or drill cuttings, from the drilling area and
transport them to the surface,
9 Counterbalance formation pressure to prevent oil, gas, and water from
entering the well prematurely (which can lead to a blowout), &
9 Prevent the open (uncased) wellbore from caving in

Drilling Ahead: The crew sets up the rig and starts the drilling operations. First,
from the starter hole, they drill a surface hole down to a pre-set depth, which is
somewhere above where they think the oil trap is located. There are five basic
steps to drilling the surface hole:
• Place the drill bit, collar and drill pipe in the hole.
• Attach the Kelly and turntable and begin drilling.
• As drilling progresses, circulate mud through the pipe and out of the bit to
float the rock cuttings out of the hole.
• Add new sections (joints) of drill pipes as the hole gets deeper.
• Remove (trip out) the drill pipe, collar and bit when the pre-set depth
(anywhere from a few hundred to a couple-thousand feet) is reached.
Once they reach the pre-set depth, they must run and cement the casing -- place
casing-pipe sections into the hole to prevent it from collapsing in on itself. The casing
pipe has spacers around the outside to keep it centered in the hole.
Well Casing: Installing well casing is an important part of the drilling and
completion process. Well casing consists of a series of metal tubes installed in
the freshly drilled hole. Casing serves to strengthen the sides of the well hole,
ensure that no oil or natural gas seeps out of the well hole as it is brought to the
surface, and to keep other fluids or gases from seeping into the formation
through the well. The casing is normally cemented in place. There are four
different types of well casing. They include:
i. Conductor casing, which is usually no more than 20 to 50 feet long, is

installed before main drilling to prevent the top of the well from caving in and
to help in the process of circulating the drilling fluid up from the bottom of the
well.
ii. Surface casing is the next type of casing to be installed. It can be anywhere
from 100 to 400 meters long, and is smaller in diameter than the conductor
casing and fits inside the conductor casing. The primary purpose of surface

casing is to protect fresh water deposits near the surface of the well from
being contaminated by leaking hydrocarbons or salt water from deeper
underground.
iii. Intermediate casing is usually the longest section of casing found in a well.
The primary purpose of intermediate casing is to minimize the hazards that
come along with subsurface formations that may affect the well. These
include abnormal underground pressure zones, underground shales, and
formations that might otherwise contaminate the well, such as underground
salt-water deposits.
iv. Production casing, alternatively called the 'oil string' or 'long string', is
installed last and is the deepest section of casing in a well. This is the casing
that provides a conduit from the surface of the well to the petroleum
producing formation. The production casing is typically 5 to 28 cm (2 -11 in)
with most production wells being 6 in or more.
The casing crew puts the casing pipe in the hole. The cement crew pumps cement
down the casing pipe using a bottom plug, cement slurry, a top plug and drill mud.
The pressure from the drill mud causes the cement slurry to move through the casing
and fill the space between the outside of the casing and the hole. Finally, the cement
is allowed to harden and then tested for such properties as hardness, alignment and
a proper seal.
Testing for Oil/Gas:
Drilling continues in stages: They drill, then run and cement new casings, then drill
again. When the rock cuttings from the mud reveal the oil sand from the reservoir
rock, they may have reached the final depth. At this point, they remove the drilling
apparatus from the hole and perform several tests to confirm this finding:
Well logging - lowering electrical and gas sensors into the hole to take
measurements of the rock formations there

Drill-stem testing - lowering a device into the hole to measure the pressures,
which will reveal whether reservoir rock has been reached
Core samples - taking samples of rock to look for characteristics of reservoir

rock
2.4 WELL COMPLETION & PRODUCTION:
Well completion commonly refers to the process of finishing a well so that it is ready to
produce oil or natural gas. Once they have reached the final depth, the crew completes
the well to allow oil to flow into the casing in a controlled manner. First, they lower a
perforating gun into the well to the production depth. The gun has explosive charges to
create holes in the casing through which oil can flow. After the casing has been
perforated, they run a small-diameter pipe (tubing) into the hole as a conduit for oil and
gas to flow up the well.

A device called a packer is run down the outside of the tubing. When the packer is set
at the production level, it is expanded to form a seal around the outside of the tubing.
Finally, they connect a multi-valved structure called a Christmas tree to the top of the
tubing and cement it to the top of the casing. The Christmas tree allows them to control
the flow of oil from the well.
WELLHEAD
Wellheads can be ‘Dry’ or ‘Subsea’ completion. Dry Completion means that the well is
onshore on the topside structure on an offshore installation. Subsea wellheads are
located under water on a special sea bed template.
The wellhead consists of the pieces of equipment mounted at the opening of the well to
regulate and monitor the extraction of hydrocarbons from the underground formation. It
also prevents leaking of oil or natural gas out of the well, and prevents blowouts due to
high pressure formations. Formations that are under high pressure typically require
wellheads that can withstand a great deal of upward pressure from the escaping gases
and liquids. These wellheads must be able to withstand pressures of up to 140 MPa
(1400 Bar).
The wellhead consists of three components: the casing head, the tubing head, and the
'Christmas tree'. A typical Christmas tree composed of a master gate valve, a pressure
gauge, a wing valve, a swab valve and a choke is shown here. The Christmas tree may
also have a number of check valves.
The functions of these devices are explained in the following paragraphs. At the bottom
we find the Casing Head and casing Hangers. The casing will be screwed, bolted or
welded to the hanger. Several valves and plugs will normally be fitted to give access to
the casing. This will permit the casing to be opened, closed, bled down, and, in some
cases, allow the flowing well to be produced through the casing as well as the tubing.
The valve can be used to determine leaks in casing, tubing or the packer, and will also
be used for lift gas injection into the casing.

The tubing hanger is used to position the tubing correctly in the well. Sealing also allows
Christmas tree removal with pressure in the casing.
The master gate valve is a high quality valve. It will provide full opening, which means
that it opens to the same inside diameter as the tubing so that specialized tools may be
run through it. It must be capable of holding the full pressure of the well safely for all
anticipated purposes. This valve is usually left fully open and is not used to control flow.

The minimum instrumentation is a pressure gauge placed above the master gate valve
before the wing valve. In addition other instruments such as temperature transmitters
will normally be fitted. The wing valve can be a gate valve, or ball valve. When shutting
in the well, the wing gate or valve is normally used so that the tubing pressure can be
easily read.
The swab valve is used to gain access to the well for wireline operations, intervention
and other workover procedures. The variable flow choke valve is typically a large needle
valve. Its calibrated opening is adjustable in 1/64 inch increments (called beans). High-
quality steel is used in order to withstand the high-speed flow of abrasive materials that
pass through the choke, usually for many years, with little damage except to the dart or
seat.
SUBSEA WELLS:
Subsea wells are essentially the same as dry completion wells. However, mechanically
they are placed in a Subsea structure (template) that allows the wells to be drilled and
serviced remotely from the surface, and protects from damage e.g. from trawlers. The
wellhead is placed in a slot in the template where it mates to the outgoing pipeline as
well as hydraulic and electric control signals. Control is from the surface where a
hydraulic power unit (HPU) provides hydraulic power to the subsea installation via an
umbilical. The umbilical is a composite cable containing tension wires, hydraulic pipes,
electrical power and control and communication signals. A control pod with inert gas
and/or oil protection contains control electronics, and operates most subsea equipment
via hydraulic switches. Product is piped back through pipelines and risers to the surface.
The main choke may be located topside.
ARTIFICIAL LIFT
Hydrocarbon production wells can be free flowing or lifted. A free flowing oil well has
enough downhole pressure to reach a suitable wellhead production pressure and
maintain an acceptable well-flow. If the formation pressure is too low, and water or gas

injection cannot maintain pressure or is not suitable, then the well must be artificially
lifted.
For smaller wells, 0.7 MPa (100 PSI) wellhead pressure with a standing column of liquid
in the tubing is considered a rule-of-thumb to allow the well to flow. Larger wells will be
equipped with artificial lift to increase production even at much higher pressures. Some
artificial lift methods are:
Sucker Rod Pumps
Sucker Rod Pumps, also called Donkey pumps or beam pumps, are the most common
artificial-lift system used in land-based operations. Motor drives a reciprocating beam,
connected to a polished rod passing into the tubing via a stuffing box. The sucker rod
continues down to the oil level and is connected to a plunger with a valve.
On each upward stroke, the plunger lifts a volume of oil up and through the wellhead
discharge. On the downward stroke it sinks (it should sink, not be pushed) with oil
flowing though the valve. Use is limited to shallow reservoirs down to a few hundred
meters, and flows up to about 40 liters (10 gal) per stroke.

Downhole Pumps
Downhole pump inserts the whole pumping mechanism into the well. In modern
installations, an Electrical Submerged Pump (ESP) is inserted into the well. Here the
whole assembly consisting of a long narrow motor and a multi phase pump hangs by an
electrical cable with tension members down the tubing.
Installations down to 3.7 km with power up to 750 kW have been installed. ESPs works
in deep reservoirs, but lifetime is sensitive to contaminants such as sand, and efficiency
is sensitive to GOR (Gas Oil Ratio) where gas over 10% dramatically lowers efficiency.
Gas Lift
Gas Lift injects gas into the well flow. The downhole reservoir pressure falls off to the
wellhead due to the counter pressure from weight of the oil column in the tubing. Thus a
150 MPa reservoir pressure at 1600 meters will fall to zero wellhead pressure if the
specific gravity is 800 kg/m2. (0.8 times water). By injecting gas into this oil, the specific

gravity is lowered and the well will start to flow. Typically gas in injected between casing
and tubing, and a release valve on a gas lift mandrel is inserted in the tubing above the
packer. The valve will open at a set pressure to inject lift gas into the tubing. Gas lift can
also be optimized over several wells to use available gas in the most efficient way.
Plunger Lift
Plunger lift is normally used on low pressure gas wells with some condensate, oil or
water, or high gas ratio oil wells.
In this case the well flow conditions can be so that liquid starts to collect downhole and
eventually blocks gas so that the well production stops. In this case a plunger with an
open/close valve can be inserted in the tubing. A plunger catcher at the top opens the
valve and can hold the plunger, while another mechanism downhole will close the valve.
The cycle starts with the plunger falling into the well with its valve open. Gas,
condensate and oil can pass though the plunger until it reaches bottom. There the valve
is closed, now with a volume of oil, condensate or water on top. Gas pressure starts to
accumulate under the plunger and after some time pushes the plunger upwards, with
liquid on top, which eventually flows out of the wellhead discharge.

When the plunger reaches the wellhead plunger catcher, the valve opens and allows
gas to flow freely for some time while new liquid collects at the bottom. After some
preset time the catcher will release the plunger, and the cycle repeats.
WELL WORKOVER, INTERVENTION AND STIMULATION:
After some time in operation, the well may become less productive or faulty due to
residue build up, sand erosion, corrosion or reservoir clogging.
Well workover is the process of performing major maintenance on an oil or gas well.
This might include replacement of the tubing, cleanup or new completions, new

perforation and various other maintenance works such as installation of gas lift
mandrels, new packing etc.
Through tubing, workover operations are work performed with special tools that do not
necessitate the time consuming full workover procedure including replacement or
removal of tubing. Well maintenance without killing the well and performing full workover
is time saving and is often called well intervention. Various operations that are
performed by lowering instruments or tools on a wire into the well are called Wireline
operations.
Work on the reservoir such as chemical injection, acid treatment, heating etc is referred
to as reservoir stimulation. Stimulation serves to correct various forms of formation
damage and improve flow. Damage is a generic term for accumulation of particles and
fluids that block fractures and pores and limit reservoir permeability.
Acids, such as HCL (Hydrochloric Acid) are used open up calcerous reservoirs and to
treat accumulation of calcium carbonates in the reservoir structure around the well.
Several hundred liters of acid (typically 15% solution in water) are pumped into the well
under pressure to increase permeability of the formation. When the pressure is high
enough to open fractures, the process is called fracture acidizing. If the pressure is
lower, it is called matrix acidizing.
Hydraulic fracturing is an operation in which a specially blended liquid is pumped down

a well and into a formation under pressure high enough to cause the formation to crack
open, forming passages through which oil can flow into the well bore. Sand grains,
aluminum pellets, walnut shells, glass beads, or similar materials (propping agents) are
carried in suspension by the fluid into the fractures. When the pressure is released at
the surface, the fractures partially close on the proppants, leaving channels for oil to
flow through to the well. The fracture channels may be up to 100 meters, several
hundred feet long.

Explosive fracturing, when explosives are used to fracture a formation. At the moment
of detonation, the explosion furnishes a source of high-pressure gas to force fluid into
the formation.
2.5 Enhanced Oil/Gas Recovery Techniques
Primary production is the oil produced by the original reservoir drive energy. It depends
on the type of reservoir drive, oil viscosity, and reservoir permeability but averages 30 to
35% of the oil in place and can be as low as 5%. This leaves a considerable amount of
oil in the reservoir after the pressure has been depleted. Because of this, improved oil
recovery is often used to recover more oil. Ultimate oil recovery is the total production
from a well or field by primary production, waterflood and enhanced oil recovery, if
justified by economic conditions.
A typical gas reservoir will produce 80% of the gas by primary production. Because so
little gas is left in the depleted reservoir, gas fields are plugged and abandoned after
primary production.

ENHANCED OIL / GAS RECOVERY TECHNIQUES
METHOD OF RECOVERY PROCESS USE
Water is pumped into the reservoir

Method most widely used in
Water- Flooding Water through injection wells to force oil
secondary recovery
towards production wells
Natural Gas, Gas is injected to maintain formation
Immiscible Gas
Flue Gas, pressure, to slow the rate of decline of Secondary recovery
Injection
Nitrogen natural reservoir drives
Under pressure, carbon dioxide Secondary recovery or tertiary
Carbon dioxide,
becomes miscible with oil, vaporizes recovery following water flooding.
Miscible Gas Propane,
hydrocarbons and enables oil to flow Considered especially applicable if
Injection Ethane,
more freely. Often followed by injection carbon dioxide supplies are located
Nitrogen
of water. within a feasible distance
Water thickened with polymers is used Used during secondary recovery to
Polymer to aid water flooding by improving fluid- aid other processes during tertiary
Chemical flow patterns recovery
Flooding A solution of detergent-like chemicals Almost always used during tertiary
Micellar
miscible with oil is injected into the recovery after secondary recovery by
Polymer
reservoir water flooding.
Steam is injected continuously into Used when il is too viscous for water
Steam Drive heavy-oil reservoirs to drive the oil flooding. Tertiary recovery after
toward production wells. secondary recovery by water flooding
Thermal Recovery A part of the oil in the reservoir is set on

Used with heavy-oil reservoirs during
fire, and compressed air is injected to
In-Situ primary recovery when oil is too
keep it burning. Gases and heat
Combustion viscous to flow under normal
advance through the formation, moving
reservoir conditions.
the oil towards the production wells.
3. THE MIDDLE STREAM SECTOR
3.1 FIELD PROCESSING
Field processing implies preliminary refining of the produced well stream. These
processes may include Phase separation of oil, gas & water, stabilization of crude oil,
dehydration & sweetening of NG to ease transport and to meet end user specifications
of the product.
Phase Separation
Most oil wells produce salt water along with gas bubbling out of the oil. The oil, gas &
water phases are to be separated for ease of transport and application. They are
separated in a long, cylindrical steel tank called a Separator. On each separator there is
an inlet for fluids from the flowline and separate outlets at different elevations to reach of
the separated fluids. Every separator has a diffuser section that makes an initial
separation of the gas and liquid from the inlet. The gas rises to the gas-scrubbing
section at the top of the separator where most of the remaining liquid is removed from
the gas before it goes out the gas outlet. The liquid falls to the bottom where the liquid-
residence section removes most of the remaining gas from the liquid before it goes out
the liquid outlet.
The separator can be either vertical or horizontal. It is either a two phase separator that
separates gas from liquid or a three phase separator that separator gas, oil and water.
Test separators: They are used to separate the well flow from one or more wells for
analysis and detailed flow measurement. In this way, the behavior of each well under
different pressure flow conditions can be determined. This normally takes place when
the well is taken into production and later at regular intervals, typically 1-2 months and
will measure the total and component flow rates under different production conditions.
Production Separators: The main separators are gravity type. The pressure is often
reduced in several stages to allow controlled separation of volatile components. The
purpose is to achieve maximum liquid recovery and stabilized oil and gas, and separate
water. A large pressure reduction in a single separator will cause flash vaporization
leading to instabilities and safety hazards. The retention period is typically 5 minutes,

allowing the gas to bubble out, water to settle at the bottom and oil to be taken out in the
middle.
Three principles used to achieve physical separation of gas and liquids or solids are
momentum, gravity settling, and coalescing. Any separator may employ one or more of

these principles, but the fluid phases must be "immiscible" and have different densities
for separation to occur.
DEHYDRATION
Water vapor is the most common undesirable impurity found in natural gas. By virtue of
its source, natural gas is almost always associated with water, usually in the range of
100 – 500 lb H2O/MMscf gas. If left in gas, the presence of this water can lead to certain
undesirable consequences such as
9 Solid hydrate formation under certain conditions of temperature & pressure that
plug flowlines and lead to severe operational problems.
9 Corrosion of pipelines & process plants particularly in the presence of CO2 or
H2S.
9 Slugging (two-phase flow) if liquid water condenses in the flowlines & erosion
problems.
9 Increase in specific volume and decrease in the heating value of gas.
9 Freezing in cryogenic and refrigerated absorption plants.
For these reasons pipeline specifications for NG restrict the water content to a value not
greater than 6-8 lb/MMscf.
Dehydration Techniques
Dehydration of natural gas is the process of removal of the water that is associated with
natural gases in vapor form (to lower the temperature at which water will condense from
the gas). The removal of water content from NG (natural gas dehydration) can be
accomplished by various available methods:
9 Absorption using liquid desiccants (Absorption Dehydration),
9 Adsorption using solid desiccants (Adsorption Dehydration),
9 Dehydration by expansion refrigeration,
9 Dehydration with CaCl2,
9 Dehydration by membrane permeation,
9 Dehydration by gas stripping,
9 Dehydration by distillation

Glycol Dehydration:
By far the most common process for dehydrating natural gas is to contact the gas with a
hygroscopic liquid (liquid desiccant) such as one of the glycols. Desiccant is substance
that has a high affinity for water. In a typical TEG package, water saturated gas enters
near the bottom of the contactor-tower and flows upwards through the internal
trays/packing. Lean Glycol enters the Contactor Tower near the top and cascades down
through the Contactor internals, making contact with the up-flowing gas stream.
Dehydrated gas flows out of the top of the Contactor, while the Rich Glycol flows out of
the bottom of the Contactor and to the Glycol Regeneration Package. The TEG
Regeneration process typically involves passing the Rich Glycol through the still column
to gain some heat before entering the Flash Drum. The Glycol is then passed through
Particle Filters to remove particulates and Activated Carbon Filters to remove any
dissolved hydrocarbon and/or chemical compounds. The Rich Glycol is heated in a
cross exchanger to preheat the feed to the Still Column where the Glycol present in the
water vapor leaving the Reboiler is recovered. Lean TEG is then cooled and pumped
back to the top of the contactor-tower to repeat the process.

SWEETENING:
With increasing demand for natural gas, natural gases containing hydrogen sulfide
(H2S) are also being tapped for utilization after purification. Natural gases containing
H2S are classified as “sour”, and those that are H2S free are called “sweet” in
processing practice. Produced gases from reservoirs usually contain H2S in
concentrations ranging from barely detectable quantities to more than 0.30%. Other
sulfur derivatives, besides H2S, are usually completely insignificant or present only in
trace proportions. Most contracts for the sale of natural gas, requires less than 4ppm in
the gas. A characteristic feature of all H2S-bearing natural gases is the presence of
carbon dioxide, the concentrations of which are generally in the range of 1-4%. H2S and
CO2 are commonly referred to as “acid gases” because they form acidic solutions in the
presence of water.
Reasons for H2S and CO2 removal:
Besides emitting a foul odor at low concentrations, H2S is deadly poisonous and at
concentrations above 600ppm, it can be fatal in just three to five minutes. Its toxicity is
comparable to cyanide. Thus it cannot be tolerated in gas that would be used as
domestic fuel. Further, H2S is corrosive to all metals, normally associated with gas
transporting, processing and handling systems. On combustion, it forms sulphur
dioxide, which is also highly toxic and corrosive. H2S and other sulphur compounds can
also cause catalyst poisoning in refinery processes.
CO2 has no heating value and its removal may be required in some instances, merely to
increase the energy content of the gas per unit volume. CO2 removal may also be
required because it forms a complex, CO2.CO2, which is quite corrosive in the presence
of water. For gas being sent to cryogenic plants, removal of CO2 may be necessary to
prevent solidification of the CO2. Both the acid gases, H2S and CO2, promote hydrate
formation.
Removal Process
Like dehydration process, desulphurization processes are primarily of two types:
adsorption on a solid (dry process) and absorption into a liquid (wet processes). There

are a few processes that use other methods, such as cellulose acetate membranes that
rely upon the different diffusion rates for hydrocarbon and H2S, and liquid fractionation
techniques that exploit the relative volatility difference.
Both the absorption and adsorption processes may be of the physical (no chemical
reactions involved) or the chemical type. These processes may also be classified into
the following categories:
1. Non-regenerative, such as Chemsweet process, NCA process and the

Slurrisweet process. The materials used in treating the gas are not recovered in
these processes.
2. Regenerative processes with recovery as H2S. These include the physical
absorption processes (water wash, Selexol, Flour solvent, etc), the amine
processes (MEA, DEA, DGA, etc), hot carbonate processes (Benfield, Catacarb),
Alkazid processes, molecular sieves, etc.
3. Regenerative processes with recovery as elemental sulphur. The Holmes-
Stretford process and the Giammarco-Vetrocoke process fall in this category.
With growing environmental concerns regarding sulphur emission, these
processes have acquired a prominent role in desulphurization operations.
Amine treating:
Amine gas treating refers to a group of processes that use aqueous solutions of various
amines to remove hydrogen sulfide (H2S) and carbon dioxide (CO2) from gases. It is a
common unit process used in refineries, petrochemical plants, natural gas processing
plants and other industries.
Processes within oil refineries or natural gas processing plants that remove hydrogen
sulfide and/or mercaptans are commonly referred to as sweetening processes because
they results in products which no longer have the sour, foul odors of mercaptans and
hydrogen sulfide.
There are many different amines used in gas treating:

• Monoethanolamine (MEA)
• Diethanolamine (DEA)

• Methyldiethanolamine (MDEA)
• Diisopropylamine (DIPA)
• Diglycolamine (DGA)
A typical amine gas treating process (as shown in the flow diagram below) includes an
absorber unit and a regenerator unit as well as accessory equipment. In the absorber,
the downflowing amine solution absorbs H2S and CO2 from the upflowing sour gas to
produce a sweetened gas stream (i.e., an H2S-free gas) as a product and an amine
solution rich in the absorbed acid gases. The resultant "rich" amine is then routed into
the regenerator (a stripper with a reboiler) to produce regenerated or "lean" amine that
is recycled for reuse in the absorber. The stripped overhead gas from the regenerator is
concentrated H2S and CO2.
OIL & GAS TRANSPORTATION MODES:

Natural resources like crude oil and natural gas, which are the raw material for energy
the world consumes, are found in vastly different locations than where they are
processed or refined into fuels for our lives, and are in different locations from where
they are consumed. In the current state of technology and commercial viability, following
are the four modes of transportation, which are being adopted worldwide.

9 Ocean transportation, by tankers of various sizes ranging from 5 Thousand

tons capacity till 5 Lakh tons capacities.
9 Pipelines of various length and diameters.
9 Rail wagons of various types and types, ranging from 20 tons till 55 tons
carrying capacity.
9 Tank Trucks of various capacities, ranging from 10 kiloliters to 50 kiloliters.
3.2 PIPELINE TRANSPORTATION
While many forms of transportation are used to move these products to refineries &
marketplaces, pipelines remain the safest, most efficient and economical way to move
this natural resource.
A Cross Country Pipeline (CCP) is primarily a transmission line for transporting bulk
quantity of fluids over large distances. It may cover distances of a few thousand
kilometers. A cross-country pipeline can be underground, submarine or aboveground.
Booster Stations: Pumps / Compressors pressurize pipeline fluids from low pressure
to high discharge pressure so that they can be transported through the pipeline for a
sale to downstream consumers. Oil is generally propelled through pipelines by
centrifugal pumps and compressors in case of natural gas. The pumps/compressors are
sited at the originating station of the line and at 20 to 100 mile intervals along the length
of the pipeline, depending on pipeline design, topography and capacity requirements.
Most pumps/compressors are driven by electric motors, although diesel engines or gas
turbines may also be used. Indirect Water-Bath type heaters are sometimes provided at
these stations to maintain temperature of the Oil / NG that would reduce its viscosity to
ease pipeline flow.

SCADA: Pipeline control rooms utilize Supervisory Control And Data Acquisition
(SCADA) systems that return real-time information about the rate of flow, the pressure,
the speed and other characteristics and also to remotely control the
pumps/compressors and other aspects of pipeline operations. Both SCADA and trained
operators evaluate the information continuously. Most pipelines are operated and
monitored 365 days a year, 24 hours per day. In addition instruments return real-time
information about certain specifications of the product being shipped – the specific
gravity, the flash point and the density.
Terminals: The terminals have inbuilt safety design features such as PSVs (process
safety valves) of sufficient discharge capacity, filter separators, auto cut-off of steam
heater on closure of PCV (process control valves),auto shutoff of stream in case of PCV
failure in open condition.
Sequencing Product Flow: Pipeline operators ship different petroleum products or

grades of the same product in sequence through same pipeline, with each product or
“batch” distinct from the preceding or following. One refined product or crude oil grade is
injected and begins its journey, then another, and another. A batch is a quantity of one
product or grade that will be transported before the injection of a second product or
grade. For a pipeline operating in fungible mode, products that meet common
specifications can be mixed and sent through the pipeline together as a batch.
Safety Measures: Corrosion is a significant factor that can impact pipeline integrity.
Providing the pipeline and related facilities with protection from corrosion is an important
task. Passive protection consists of coatings, which is applied before laying and
backfilling the pipeline, like Insulation coatings. Permanent Cathodic Protection of the
pipeline is provided with impressed current after construction and during operation of
the pipeline.
(Cathodic protection is an electrical technique for imposing a potential on the protected

pipeline to counter the tendency for electrochemical ion migration and stop corrosion
almost completely).

Design Optimization: Economic design of pipeline system involves establishing an

optimum relationship between pipeline sizes and pumping configuration in terms of
number of pumps and power requirements. For a given throughput, there is an optimum
size of pipeline and optimum pumping system.
Pigging: Pipeline pigging is a process that forces a pig through a pipeline to clean it. A
pig can be made of foam, plastic, metal, or any combination of these, some pigs can be
fitted with sensors to inspect the inside of the pipes. During the process of pipeline
pigging, a pig is forced through the pipeline under liquid or gas pressure. Pigging can be
used to inspect pipelines that are not easily accessible, clean the interior of pipelines,
and retrieve usable product from the interior of pipelines.
3.3 OCEAN TRANSPORTATION

A ship is a mobile tankage. A tanker is a ship designed to transport liquids in bulk.
Petroleum tankers, also known as oil tankers are ships of varying sizes designed for the
bulk transport of petroleum. World oil/gas trade is possible only because of shipping.
Shipping provides a cost effective mode of transportation. Ship size has direct
relevance to the cargo carrying capacity and port related facilities required for the ship
to berth.

Crude Oil Tankers are classified on the basis of Dead Weight Tonnage (DWT) which is
approximately equal to the cargo carrying capacity. The standard size classification of
crude carriers is as under:
TANKER CLASS DEAD WEIGHT TONNAGE
V - Plus over 420,000
ULCC over 320,000

VLCC 200 - 319,999
Suezmax Tanker 120 - 159,999
Aframax Tanker 80 -119,999
Panamax Tanker 50 - 80,000
MR Tankers Tanker 40 - 49,999
Parcel Tanker 10 - 39,999
Merchant tankers carry a wide range of hydrocarbon liquids from crude oil to refined
petroleum products. A wide range of products are carried by tankers that include

hydrocarbon products such as oil, liquefied petroleum gas (LPG), and liquefied natural
gas (LNG). Depending on the product it carries each type of tanker is built with the
necessary constructional & safety features compatible with the product. Even the port
loading & unloading facilities should be inline with the product they are supposed to
handle.
3.4 TANK WAGONS & TANK TRUCKS

Tank Wagons:
The next effective on-land mode of transportation of petroleum products after pipelines
is by Rail through Tank Wagons. All the petroleum products from LPG to FO etc. are
transported by tank wagons from refineries to the various demand centers in the
country.
White Oils are transported through 8 wheeler railway wagons of 50 MT capacities. Black
Oils are however transported through 4 wheeler Broad Gauge & Meter Gauge railway
wagons of 20 MT. LPG is transported through 8 wheeler Boogie Wagons as well as 4
wheeler Railway Wagons of 20 MT & 10 MT respectively.
Tank Trucks:
Petroleum products are also transported through road via tank trucks also. This mode is
especially effective in transporting petroleum products to far flung and hilly areas as well
as smaller towns. Tank trucks in use are of 12 KL & 20 KL capacities for liquid
petroleum products and 12 MT and 20 MT capacities for LPG.
Road transportation is usually the last leg of the long journey of petroleum products and
it is mostly associated with the retail segment of the petroleum industry.
3.5 FPSO
FPSO stands for Floating Production Storage and Offloading facility. When the
water depth is very high, or the sea is very rough in the location or when the source of
oil in a location is small, but we want to extract it, we use FPSO. This is basically a ship
containing the facility to treat the well fluid (like Separation, dehydration and

desulphurization facility) and store oil in the ship itself. FPSO will be moored to such
location, connect it with the well, treat the oil and gas and store the oil produced in the
ship itself and flare the gas to atmosphere. When the well gets depleted, the ship will be
moored to another similar location and operation repeated.
An FPSO has the capability to carry out some form of oil separation process obviating
the need for such facilities to be located on an oil platform. Partial separation may still
be done on the oil platform to increase the oil capacity of the pipeline(s) to the FPSO.
3.6 LIQUEFIED NATURAL GAS (LNG):

When natural gas is cooled to a temperature of approximately -260°F at atmospheric
pressure it condenses to a liquid called liquefied natural gas (LNG). One volume of this
liquid takes up about 1/600th the volume of natural gas standard conditions. LNG
weighs less than one-half that of water, actually about 45% as much. LNG is odorless,
colorless, non-corrosive, and non-toxic. When vaporized it burns only in concentrations
of 5% to 15% when mixed with air. Neither LNG, nor its vapor, can explode in an
unconfined environment.

Natural gas is composed primarily of methane (typically, at least 90%), but may also
contain ethane, propane and heavier hydrocarbons. Small quantities of nitrogen,
oxygen, carbon dioxide, sulfur compounds, and water may also be found in "pipeline"
natural gas. The liquefaction process removes the oxygen, carbon dioxide, sulfur
compounds, and water. The process can also be designed to purify the LNG to almost
100% methane.
LNG tanks are always of double-wall construction with extremely efficient insulation
between the walls. Large tanks are low aspect ratio (height to width) and cylindrical in
design with a domed roof. Storage pressures in these tanks are very low, less than 5
psig. Smaller quantities, 70,000 gallons and less are stored in horizontal or vertical,
vacuum-jacketed, pressure vessels. These tanks may be at pressures any where from
less than 5 psig to over 250 psig. LNG must be maintained cold (at least below -117°F)
to remain a liquid, independent of pressure.

The insulation, as efficient as it is, will not keep the temperature of LNG cold by itself.
LNG is stored as a "boiling cryogen," that is, it is a very cold liquid at its boiling point for
the pressure it is being stored. The temperature of boiling water (212°F) does not
change, even with increased heat, as it is cooled by evaporation (steam generation). In
much the same way, LNG will stay at near constant temperature if kept at constant
pressure. This phenomenon is called "autorefrigeration". As long as the steam (LNG
vapor boil off) is allowed to leave the tea kettle (tank), the temperature will remain
constant.

If the vapor is not drawn off, then the pressure and temperature inside the vessel will
rise. However, even at 100 psig, the LNG temperature will still be only about -200°F.

4. THE DOWNSTREAM SECTOR
4.1 MAJOR PETROLEUM PRODUCTS
Gasoline: The most important refinery product is motor gasoline, a blend of

hydrocarbons with boiling ranges from ambient temperatures to about 400 °F. The
important qualities for gasoline are octane number (antiknock), volatility (starting and
vapor lock), and vapor pressure (environmental control). Additives are often used to
enhance performance and provide protection against oxidation and rust formation.
Kerosene: Kerosene is a refined middle-distillate petroleum product that finds

considerable use as a jet fuel and around the world in cooking and space heating.
When used as a jet fuel, some of the critical qualities are freeze point, flash point, and
smoke point. Commercial jet fuel has a boiling range of about 375°-525° F, and military
jet fuel 130°-550° F. Kerosene, with less-critical specifications, is used for lighting,
heating, solvents, and blending into diesel fuel.
Liquified Petroleum Gas (LPG): LPG, which consists principally of propane and
butane, is produced for use as fuel and is an intermediate material in the manufacture of
petrochemicals. The important specifications for proper performance include vapor
pressure and control of contaminants.
Distillate Fuels: Diesel fuels and domestic heating oils have boiling ranges of about
400°-700° F. The desirable qualities required for distillate fuels include controlled flash
and pour points, clean burning, no deposit formation in storage tanks, and a proper
diesel fuel cetane rating for good starting and combustion.
Residual Fuels: Many marine vessels, power plants, commercial buildings and
industrial facilities use residual fuels or combinations of residual and distillate fuels for
heating and processing. The two most critical specifications of residual fuels are
viscosity and low sulfur content for environmental control.

Solvents: A variety of products, whose boiling points and hydrocarbon composition are
closely controlled, are produced for use as solvents. These include benzene, toluene,
and xylene.
Lubricants: Special refining processes produce lubricating oil base stocks. Additives
such as demulsifiers, antioxidants, and viscosity improvers are blended into the base
stocks to provide the characteristics required for motor oils, industrial greases,
lubricants, and cutting oils.
Coke and Asphalt: Coke is almost pure carbon with a variety of uses from electrodes
to charcoal briquets. Asphalt, used for roads and roofing materials, must be inert to
most chemicals and weather conditions.
Petrochemicals: Many products derived from crude oil refining, such as ethylene,
propylene, butylene, and isobutylene, are primarily intended for use as petrochemical
feedstock in the production of plastics, synthetic fibers, synthetic rubbers, and other
products.
4.2 PETROLEUM REFINING & PETROCHEMICAL OPERATIONS:
Petroleum refining begins with the distillation, or fractionation, of crude oils into separate
hydrocarbon groups. The resultant products are directly related to the characteristics of
the crude processed. Most distillation products are further converted into more usable
products by changing the size and structure of the hydrocarbon molecules through
cracking, reforming, and other conversion processes as discussed in this chapter.
These converted products are then subjected to various treatment and separation
processes such as extraction, hydrotreating, and sweetening to remove undesirable
constituents and improve product quality. Integrated refineries incorporate fractionation,
conversion, treatment, and blending operations and may also include petrochemical
processing.

Petroleum refining processes and operations can be separated into five basic areas:
1. Fractionation (distillation) is the separation of crude oil in atmospheric and

vacuum distillation towers into groups of hydrocarbon compounds of differing
boiling-point ranges called "fractions" or "cuts."
2. Conversion processes change the size and/or structure of hydrocarbon

molecules. These processes include:
Decomposition (dividing) by thermal and Catalytic Cracking;
Unification (combining) through Alkylation and Polymerization; and
Alteration (rearranging) with Isomerization and Catalytic Reforming.
3. Treatment processes are intended to prepare hydrocarbon streams for

additional processing and to prepare finished products. Treatment may include
the removal or separation of aromatics and naphthenes as well as impurities and
undesirable contaminants. Treatment may involve chemical or physical
separation such as dissolving, absorption, or precipitation using a variety and
combination of processes including desalting, drying, hydrodesulfurizing, solvent
refining, sweetening, solvent extraction, and solvent dewaxing.
4. Formulating and Blending is the process of mixing and combining hydrocarbon

fractions, additives, and other components to produce finished products with
specific performance properties.
5. Other Refining Operations include: light-ends recovery; sour-water stripping;

solid waste and wastewater treatment; process-water treatment and cooling;
storage and handling; product movement; hydrogen production; acid and tail-gas
treatment and sulfur recovery.
Different Refinery & Petrochemical Processes are briefly explained in the following
sections. Only very important and basic processes are touched to have a basic
understanding of what processes are actually applied to produce the desired products
as explained before.

1. CRUDE OIL PRETREATMENT (DESALTING)
Crude oil often contains water, inorganic salts, suspended solids, and water-soluble
trace metals. As a first step in the refining process, to reduce corrosion, plugging, and
fouling of equipment and to prevent poisoning the catalysts in processing units, these
contaminants must be removed by desalting.
The two most typical methods of crude-oil desalting are chemical and electrostatic
separation. Both techniques use hot water as the extraction agent. In chemical
desalting, water and chemical surfactant (demulsifiers) are added to the crude, heated
so that salts and other impurities dissolve into the water or attach to the water, and then
held in a tank where they settle out.
Electrostatic Desalter: Crude oil is heated to temperature in the range of 120-130oC

by heat exchange with hot streams from crude fractionator. It is heated to reduce its
viscosity such that the improved flow conditions thus obtained permit more efficient
mixing and separation. Water (condensate/dematerialized water) is added to the crude
stream ahead of the desalter and the mixture is then passed through a mixing valve
across which a controlled pressure is maintained. The mixing valve arrangement
creates proper emulsification of the crude oil and water. The emulsified crude oil is fed
into the bottom of the desalter vessel through an inlet distributor. The emulsified crude
oil is subjected to high voltage (20,000-24,000V) electrical field in the desalter where
droplets of water coalesce and separate from the emulsion together with the salt from
the crude. The desalted crude overflows while the water along with salt and crude
sludge is withdrawn from the bottom of the desalter vessel.
Additional stages can be used to get additional reduction in saltwater content of the
crude oil before the oil enters the atmospheric distillation tower. Two stages are used by
many refiners, but some use three stages.

2. CRUDE OIL DISTILLATION (FRACTIONATION)
Crude Oil consists of hydrocarbons varying in boiling range from methane to

asphalt. The aim of crude oil distillation is to fractionate the crude oil into the light
hydrocarbons (C1 through C4), gasoline components and middle distillates
(Kerosene/ATF, Gas-oil) which can be marketed directly or with a minimum further
processing.
Atmospheric Distillation Unit (ADU): This is the first stage in the refining for
separating crude oil components at atmospheric pressure by heating and subsequent
condensing, of the fractions (unfinished petroleum products) by cooling.
Atmospheric distillation is carried out at pressure slightly above atmospheric pressure

to: (i) raise the boiling point of the light ends so that refinery cooling water may be used
to condense some of the propane and butanes in the overhead distillate, (ii) pressurize
uncondensed gases to the meant processing step and (iii) allow for column pressure
drop.
The desalted crude oil is preheated by heat exchange with products from atmospheric
distillation column to as high a temperature as possible before it enters the furnace
where it is heated to a suitable temperature that gives required percentage of

vaporization in the flash zone. The temperature to which the crude oil can be heated
before flashing in the atmospheric column without undergoing cracking is dictated by
the thermal stability of crude oil. Generally, crude oil is heated to a temperature of 350-
360oC in the furnace. The furnace effluent is flashed into the flash zone of atmospheric
column where vapor and liquid separate. The liquid leaving the flash zone is steam
stripped to recover the side-stream components and discharged from the column as
reduced crude. Steam is introduced at the bottom section of the column normally at a
rate of 12-24 kg/m3 of column bottoms. The side-stream products are steam stripped to
remove the later components. The lighter hydrocarbons are condensed in an overhead
condenser and sent to a reflux drum, where gas and liquid separate.
Vacuum Distillation Unit (VDU): Distillation under reduced pressure (less than
atmospheric) i.e. Vacuum Distillation lowers the boiling temperature of the liquid being
distilled permitting the production of distillates at lower temperature than would be
necessary in atmospheric distillation, thus avoiding coke formation.
The general function of the vacuum column is to remove the maximum possible amount
of distillates from the charge stock in consistent with meeting the product specifications
on the residuum as well as distillates.
The process takes place in one or more vacuum distillation towers. The principles of
vacuum distillation resemble those of fractional distillation and, except that larger-
diameter columns are used to maintain comparable vapor velocities at the reduced
pressures, the equipment is also similar. A typical vacuum tower may produce Gas-oils,
lubricating-oil base stocks, and heavy residual for propane deasphalting.
Other Distillation Units (Columns): Within refineries there are numerous other,
smaller distillation towers called columns, designed to separate specific and unique
products. Columns all work on the same principles as the towers described above. For
example, a depropanizer is a small column designed to separate propane and lighter
gases from butane and heavier components. Another larger column is used to separate
ethyl benzene and xylene. Small "bubble" towers called strippers use steam to remove
trace amounts of light products from heavier product streams.

3. CATALYTIC HYDROTREATING
Catalytic hydrotreating is a hydrogenation process used to remove about 90% of

contaminants such as nitrogen, sulfur, oxygen, and metals from liquid petroleum
fractions. These contaminants, if not removed from the petroleum fractions as they travel
through the refinery processing units, can have detrimental effects on the equipment, the
catalysts, and the quality of the finished product. Typically, hydrotreating is done prior to
processes such as catalytic reforming so that the catalyst is not contaminated by
untreated feedstock. Hydrotreating is also used prior to catalytic cracking to reduce
sulfur and improve product yields, and to upgrade middle-distillate petroleum fractions
into finished kerosene, diesel fuel, and heating fuel oils. Hydrotreating for sulfur removal
is called hydrodesulfurization.
4. THERMAL CRACKING
Because the simple distillation of crude oil produces amounts and types of products that
are not consistent with those required by the marketplace, subsequent refinery
processes change the product mix by altering the molecular structure of the
hydrocarbons. One of the ways of accomplishing this change is through "cracking," a
process that breaks or cracks the heavier, higher boiling-point petroleum fractions into
more valuable products such as gasoline, fuel oil, and Gas-oils. The two basic types of
cracking are thermal cracking, using heat and pressure, and catalytic cracking.
Applications of thermal cracking: visbreaking, steam cracking, and coking.
5. CATALYTIC CRACKING
Catalytic cracking breaks complex hydrocarbons into simpler molecules in order to

increase the quality and quantity of lighter, more desirable products and decrease the
amount of residuals. This process rearranges the molecular structure of hydrocarbon
compounds to convert heavy hydrocarbon feedstock into lighter fractions such as
kerosene, gasoline, LPG, heating oil, and petrochemical feedstock.

Catalytic cracking is similar to thermal cracking except that catalysts facilitate the
conversion of the heavier molecules into lighter products. Typical temperatures are from
850°-950° F at much lower pressures of 10-20 psi. The catalysts used in refinery
cracking units are typically solid materials (zeolite, aluminum hydrosilicate, treated
bentonite clay, fuller's earth, bauxite, and silica-alumina) that come in the form of
powders, beads, pellets or shaped materials called extrudites.
The three types of catalytic cracking processes are fluid catalytic cracking (FCC),
moving-bed catalytic cracking, and Thermofor catalytic cracking (TCC).
6. HYDRO CRACKING
Hydrocracking is a two-stage process combining catalytic cracking and hydrogenation,

wherein heavier feedstocks are cracked in the presence of hydrogen to produce more
desirable products. The process employs high pressure, high temperature, a catalyst,
and hydrogen. Hydrocracking is used for feedstocks that are difficult to process by either
catalytic cracking or reforming.
Heavy aromatic feedstock is converted into lighter products under a wide range of very
high pressures (1,000-2,000 psi) and fairly high temperatures (750°-1,500° F), in the
presence of hydrogen and special catalysts. When the feedstock has a high paraffinic
content, the primary function of hydrogen is to prevent the formation of polycyclic
aromatic compounds. Another important role of hydrogen in the hydrocracking process is
to reduce tar formation and prevent buildup of coke on the catalyst.
7. CATALYTIC REFORMING
Catalytic reforming is an important process used to convert low-octane naphthas into

high-octane gasoline blending components called reformates. Reforming represents the
total effect of numerous reactions such as cracking, polymerization, dehydrogenation,
and isomerization taking place simultaneously. Depending on the properties of the
naphtha feedstock (as measured by the paraffin, olefin, naphthene, and aromatic

content) and catalysts used, reformates can be produced with very high concentrations
of toluene, benzene, xylene, and other aromatics useful in gasoline blending and
petrochemical processing. Hydrogen, a significant by-product, is separated from the
reformate for recycling and use in other processes.
There are many different commercial catalytic reforming processes including platforming,
powerforming, ultraforming, and Thermofor catalytic reforming.Some catalytic reformers
operate at low pressure (50-200 psi), and others operate at high pressures (up to 1,000
psi). Some catalytic reforming systems continuously regenerate the catalyst, in other
systems one reactor at a time is taken off-stream for catalyst regeneration, and some
facilities regenerate all of the reactors during turnarounds.
8. SOLVENT REFINING
Solvent treating is a widely used method of refining lubricating oils as well as a host of
other refinery stocks. Since distillation (fractionation) separates petroleum products into
groups only by their boiling-point ranges, impurities may remain. These include organic
compounds containing sulfur, nitrogen, and oxygen; inorganic salts and dissolved
metals; and soluble salts that were present in the crude feedstock. In addition, kerosene
and distillates may have trace amounts of aromatics and naphthenes, and lubricating oil
base-stocks may contain wax. Solvent refining processes including solvent extraction
and solvent dewaxing usually remove these undesirables at intermediate refining stages
or just before sending the product to storage.
9. ISOMERIZATION
Isomerization converts n-butane, n-pentane and n-hexane into their respective

isoparaffins of substantially higher octane number. Isomerization is similar to catalytic
reforming in that the hydrocarbon molecules are rearranged, but unlike catalytic
reforming, isomerization just converts normal paraffins to isoparaffins. There are two
distinct isomerization processes, butane (C4) and pentane/hexane (C5/C6). Butane
isomerization produces feedstock for alkylation. Aluminum chloride catalyst plus

hydrogen chloride are universally used for the low-temperature processes. Platinum or
another metal catalyst is used for the higher-temperature processes.
10. POLYMERIZATION
Polymerization in the petroleum industry is the process of converting light olefin gases
including ethylene, propylene, and butylene into hydrocarbons of higher molecular
weight and higher octane number that can be used as gasoline blending stocks.
Polymerization combines two or more identical olefin molecules to form a single
molecule with the same elements in the same proportions as the original molecules.
Polymerization may be accomplished thermally or in the presence of a catalyst at lower
temperatures.
In the refining industry, polymerization is used to indicate the production of gasoline

components, hence the term "polymer" gasoline. In the petrochemical section of a
refinery, polymerization, which results in the production of, for instance, polyethylene, is
allowed to proceed until materials of the required high molecular weight have been
produced.
11. ALKYLATION
Alkylation combines low-molecular-weight olefins (primarily a mixture of propylene and

butylene) with isobutene in the presence of a catalyst, either sulfuric acid or hydrofluoric
acid. The product is called alkylate and is composed of a mixture of high-octane,
branched-chain paraffinic hydrocarbons. Alkylate is a premium blending stock because it
has exceptional antiknock properties and is clean burning. The octane number of the
alkylate depends mainly upon the kind of olefins used and upon operating conditions.
12. ASPHALT PRODUCTION
Asphalt is a portion of the residual fraction that remains after primary distillation
operations. It is further processed to impart characteristics required by its final use. In

vacuum distillation, generally used to produce road-tar asphalt, the residual is heated to
about 750° F and charged to a column where vacuum is applied to prevent cracking.
Asphalt for roofing materials is produced by air blowing. Residual is heated in a pipe still
almost to its flash point and charged to a blowing tower where hot air is injected for a
predetermined time. Another process used to produce asphalt is solvent deasphalting. In
this extraction process, which uses propane (or hexane) as a solvent, heavy oil fractions
are separated to produce heavy lubricating oil, catalytic cracking feedstock, and asphalt.
13. BLENDING
Blending is the physical mixture of a number of different liquid hydrocarbons to produce

a finished product with certain desired characteristics. Products can be blended in-line
through a manifold system, or batch blended in tanks and vessels. In-line blending of
gasoline, distillates, jet fuel, and kerosene is accomplished by injecting proportionate
amounts of each component into the main stream where turbulence promotes thorough
mixing. Additives including octane enhancers, metal deactivators, anti-oxidants, anti-
knock agents, gum and rust inhibitors, detergents, etc. are added during and/or after
blending to provide specific properties not inherent in hydrocarbons.
14. LUBRICANT, WAX, AND GREASE MANUFACTURING PROCESSES
Lubricating oils and waxes are refined from the residual fractions of atmospheric and
vacuum distillation. The primary objective of the various lubricating oil refinery processes
is to remove asphalts, sulfonated aromatics, and paraffinic and isoparaffinic waxes from
residual fractions. Reduced crude from the vacuum unit is deasphalted and combined
with straight-run lubricating oil feedstock, preheated, and solvent-extracted to produce
raffinate.
Wax Manufacturing Process: Raffinate from the extraction unit contains a considerable
amount of wax that must be removed by solvent extraction and crystallization. The
raffinate is mixed with a solvent (propane) and precooled in heat exchangers. The
crystallization temperature is attained by the evaporation of propane in the chiller and

filter feed tanks. The wax is continuously removed by filters and cold solvent-washed to
recover retained oil. The solvent is recovered from the oil by flashing and steam
stripping. The wax is then heated with hot solvent, chilled, filtered, and given a final wash
to remove all oil.
Lubricating Oil Manufacturing Process: The dewaxed raffinate is blended with other
distillate fractions and further treated for viscosity index, color, stability, carbon residue,
sulfur, additive response, and oxidation stability in extremely selective extraction
processes using solvents (furfural, phenol, etc.). In a typical phenol unit, the raffinate is
mixed with phenol in the treating section at temperatures below 400° F. Phenol is then
separated from the treated oil and recycled. The treated lube-oil base stocks are then
mixed and/or compounded with additives to meet the required physical and chemical
characteristics of motor oils, industrial lubricants, and metal working oils.
Grease Compounding: Grease is made by blending metallic soaps (salts of long-

chained fatty acids) and additives into a lubricating oil medium at temperatures of 400°-
600° F. Grease may be either batch-produced or continuously compounded. The
characteristics of the grease depend to a great extent on the metallic element (calcium,
sodium, aluminum, lithium, etc.) in the soap and the additives used.

OVERVIEW OF PETROLEUM REFINING PROCESSES
PROCESS NAME ACTION METHOD PURPOSE FEEDSTOCKS PRODUCTS
Desalting Dehydration Absorption Remove Contaminants Crude Oil Desalted Crude Oil
Atmospheric Gas, Gas-oil,

Separation Thermal Separate fractions Desalted crude oil
Distillation Distillate, Residual
Vacuum Distillation Separation Thermal Separate w/o Cracking Atmospheric Tower Residual Gas-oil, Lube-stock, Residual
Remove Impurities,
Hydrotreating Hydrogenation Catalytic Residuals, cracked HC's Cracker Feed, Distillate, Lubes
Saturate HC's
Remove High-Sulfur Residual/

Hydro-desulphurisation Treatment Catalytic Desulfurized Olefins
Sulfur, Contaminants Gas-oil
Visbreaking Decompose Thermal Reduce Viscosity Atmospheric Tower Residual Distillate & Tar
Atmospheric Tower
Steam Cracking Decompose Thermal Crack Large Molecules Cracked Naphtha, Coke & Residue
Heavy Fuel / Distillate
Convert Vacuum Gasoline, Petrochemical

Coking Polymerize Thermal Gas-oil, Coke Distillate
Residuals Feedstock
Gas-oil, Cracked Oil,

Hydro-cracking Hydrogenate Catalytic Convert to Lighter HC's Lighter, Higher-Quality Products
Residual
PROCESS NAME ACTION METHOD PURPOSE FEEDSTOCKS PRODUCTS
Gasoline, Petrochemical
Catalytic Cracking Alteration Catalytic Upgrade Gasoline Gas-oil, Coke Distillate
Feedstock
Catalytic Alteration/ Upgrade low-Octane Coker/ Hydro-cracker

Catalytic High octane. Reformate / Aromatic
Reforming Dehydration Naphtha Naphtha
Remove Sour Gas, HC’s with

Amine Treating Treatment Absorption Acid free Gases & Liquid HCs
Acidic Contaminants CO2 & H2S
High-Octane Naphtha &
Polymerizing Polymerize Catalytic Unite 2 or more Olefins Cracker Olefins Petrochemical
Stocks
Convert Straight Chain
Isomerization Rearrange Catalytic to Butane, Pentane, Hexane Isobutane / Pentane / Hexane
Branched Chain
Unite Olefins & Tower Isobutene / Cracker
Alkylation Combining Catalytic Iso-octane (Alkylate)
Isoparaffins Olefin
Solvent Vacuum Tower Heavy Lube Oil

Treatment Absorption Remove Asphalt
Deasphalting Residual, Propane & Asphalt
Remove Wax from

Solvent Dewaxing Treatment Cool/ Filter Vacuum. Tower Lube Oils Dewaxed Lube Basestock
Lube Stocks
Solvent Absorption / Separate unsaturated Gas-oil,

Solvent Extraction High-Octane Gasoline
extraction. precipitation Oils Reformate & Distillate
Grease
Combining Thermal Combine Soaps & Oils Lube oil & Fatty Acids Lubricating Grease
Compounding
5. ASSOCIATED, UTILITY & SAFETY SYSTEMS
5.1 METERING & STORAGE OF OIL & GAS:
Metering stations allow operators to monitor and manage the natural gas and oil
exported from the production installation. These metering stations employ specialized
meters to measure the natural gas or oil as it flows through the pipeline, without
impeding its movement. This metered volume represents a transfer of ownership from a
producer to a customer (or another division within the company) and is therefore called
Custody Transfer Metering. It forms the basis for invoicing sold product and also for
production taxes and revenue sharing between partners and accuracy requirements are
often set by governmental authorities.
Typically the metering installation consists of a number of meter runs so that one meter
will not have to handle the full capacity range, and associated prover loops so that the
meter accuracy can be tested and calibrated at regular intervals.
Partners, authorities and customers all calculate invoices, taxes and payments based
on the actual product shipped out. Although some small installations are still operated

with dipstick and manual records, larger installations have analysis and metering
equipment. The figure shows a full liquid hydrocarbon (oil and condensate) metering
system. The analyzer instruments on the left provide product data such as density,
viscosity and water content. Pressure and temperature compensation is also included.
For liquid, turbine meters with dual pulse outputs are most common. Alternatives are
positive displacement meters (passes a fixed volume per rotation or stroke) and coriolis
massflow meters. These instruments cannot cover the full range with sufficient
accuracy. Therefore the metering is split into several runs, and the number of runs in
use depends on the flow. Each run employs one meter and several instruments to
provide temperature and pressure correction. Open/Close valves allow runs to be
selected and control valves can balance the flow between runs. The instruments and
actuators are monitored and controlled by a flow computer.

To obtain required accuracy, the meters are calibrated. The most common method is a
prover loop. A prover ball moves though the loop, and a calibrated volume is provided
between the two detectors (Z). When a meter is to be calibrated the four way valve
opens to allow oil to flow behind the ball. The number of pulses from it passes one
detector Z to the other is counted. After one loop the four way valve turns to reverse
flow direction and the ball moves back providing the same volume and in reverse, again
counting the pulses.
Gas metering is similar, but instead, analyzers will measure hydrocarbon content and
energy value (MJ/scm or BTU, Kcal/scf) as well as pressure and temperature. The
meters are normally orifice meters or ultrasonic meters. Orifice plates with a diameter
less than the pipe are mounted in cassettes. The pressure differential over the orifice
plate as well as pressure and temperature is used in standard formulas to calculate
normalized flow. Different ranges are accommodated with different size restrictions.
Orifice plates are sensitive to build up of residue and wear on the edges of the hole.
Larger new installations therefore prefer ultrasonic gas meters that work by sending
multiple ultrasonic beams across the path and measure the Doppler Effect.
Gas metering is less accurate than liquid, typically ±1.0% of mass. There is usually not
a prover loop, instead the instruments and orifice plates are calibrated in separate
equipment.

Special tank gauging systems such as Level radars, Pressure or Float are used to
measure the level in storage tanks, cells and caverns. The level measurement is
converted to volume via tank strapping tables (dependent on tank geometry) and
compensated for temperature to provide standard volume. Float gauges can also
calculate density, and so mass can be provided.
LNG is often metered with massflow meters that can operate at the required low
temperature. A three run LNG metering skid is shown below.
At various points in the movement of oil and gas, similar measurements are taken,
usually in a more simplified variant. Examples are Flare gas, Fuel Gas and Injected gas
where required accuracy is 2-5% percent.
STORAGE
Most plants do not allow local gas storage, but oil is often stored before loading on a
vessel, such as a shuttle tanker taking the oil to a larger tanker terminal, or direct to
crude carrier. Offshore production facilities without a direct pipeline connection generally
rely on crude storage in the base or hull, to allow a shuttle tanker to offload about once
a week. A larger production complex generally has an associated tank farm terminal

allowing the storage of different grades of crude to take up changes in demand, delays
in transport etc.
Atmospheric storage tanks and pressure storage tanks are used throughout the refinery
for storage of crudes, intermediate hydrocarbons (during the process), and finished
products. Tanks are also provided for fire water, process and treatment water, acids,
additives, and other chemicals. The type, construction, capacity and location of tanks
depends on their use and materials stored.

On most production sites, the oil and gas is piped directly to a refinery or tanker
terminal. Gas is difficult to store locally, but occasionally underground mines, caverns or
salt deposits can be used to store gas. On platforms without pipeline, oil is stored in
onboard storage tanks to be transported by shuttle tanker. The oil is stored in storage
cells around the shafts on concrete platforms, and in tanks on floating platforms. On
some floaters, a separate storage tanker is used.
A tankfarm consists of 10-100 tanks of varying volume for a total capacity typically in
the area of 1 - 50 million barrels. Storage for shuttle tankers normally store up to two
weeks of production, one week for normal cycle and one extra week for delays e.g. bad
weather. This could amount to several million barrels.

Accurate records of volumes and history is kept to document what is received and
dispatched. For installations that serve multiple production sites, different qualities and
product blending must also be handled. Another planning task is forecasting for future
received and delivered product to make sure that the required amount of sold product is
available and that sufficient capacity is reserved for future received products. A
tankfarm management system keeps track of these parameters and constraints, logs
the operations taking place and overall consolidation of operations.
5.2 POWER & STEAM GENERATION:
Power Generation & Distribution: Power can be provided from mains power or from
local diesel generator sets. Large facilities have great power demands, from 30 MW and
upwards to several hundred MW.
The power generation system on a large facility is usually several gas turbines diving
electric generators, 20-40 MW each. If exhaust heat is not needed in the main process,
it can be used to drive exhaust steam turbines (so called dual cycle) for additional
efficiency. Voltage levels for High, Medium and Low voltage distribution boards are 13-
130kV, 2-8 kV and 300-600 V respectively. Power is generated and exchanged with
mains or other facilities on the HV distribution board. Relays are used for protection
functions.
HV is transformed to MV switchboards where large consumers are connected. The LV

switchboards feed a mix of normal consumers, Motor Control centers and variable
speed drives for motors up to a few hundred KW. A separate emergency power
switchboard provides power for critical equipment. It can be powered from a local
emergency generator if main power is lost. Computer systems are fed from an
Uninterruptible Power System (UPS) connected to the emergency switchboard and/or a
battery bank.

A power management system is used for control of electrical switchgear and

equipment. Its function is to optimize electricity generation and usage and to prevent
major disturbances & plant outages (blackouts). The power management system
includes HV, MV and LV low voltage switchgear as well as Motor Control Centers
(MCC) and emergency generator sets. Functions include prioritization of loads,
emergency load shedding (closing down of non-essential equipment) and prestart of
generator sets (e.g. when additional power to start a big crude pump is required)
STEAM GENERATION:
Steam requirement for any plant is basically for heating any process or utility fluid in
operation. Steam thus required is commonly produced by heating water in a Boiler or
HRSG (Heat Recovery Steam Generator).

A boiler is a closed vessel in which water or other fluid is heated. The heated or
vaporized fluid exits the boiler for use in various processes or heating applications.
Construction of boilers is mainly limited to carbon steel, stainless steel, and cast iron.
The source of heat for a boiler is combustion of any of several fuels, such as coal, oil, or
natural gas. Electric boilers use resistance or immersion type heating elements. Nuclear
fission is also used as a heat source for generating steam. Heat recovery steam
generators (HRSGs) use the heat rejected from other processes such as gas turbines.
Boilers can also be classified into:
• Fire-tube boilers - Here, the heat source is inside the tubes and the water to
be heated is outside.
• Water-tube boilers - Here the heat source is outside the tubes and the water
to be heated is inside.
• A primitive, inefficient type where there are no tubes and the fire heats one
side of the water container.

In water-tube boilers the water flows through tubes around a fire. The tubes frequently
have a large number of bends and sometimes have fins to maximize the surface area.
This type of boiler is generally preferred in high pressure applications since the high
pressure water/steam is contained within narrow pipes which can contain the pressure
with a thinner wall.
In HRSG, hot exhaust from a gas turbine is fed into shell containing water through a set
of tubes to generate steam which in turn may drive a steam turbine to further generate
power or to drive any other equipment. The steam thus generated can also be used for
other heating applications.
5.3 HVAC
HVAC is an acronym that stands for "heating, ventilation, and air conditioning".
HVAC is sometimes referred to as climate control and is particularly important in the
design of medium to large industrial and office buildings and in marine environments,
where humidity and temperature must all be closely regulated whilst maintaining safe
and healthy conditions within.
Heating, ventilation, and air conditioning is based on the basic principles of

thermodynamics, fluid mechanics, and heat transfer. The three functions of heating,

ventilation, and air-conditioning are closely interrelated. All seek to provide thermal
comfort, acceptable indoor air quality, and reasonable installation, operation, and
maintenance costs. HVAC systems can provide ventilation, reduce air infiltration, and
maintain pressure relationships between spaces. How air is delivered to, and removed
from spaces is known as room air distribution.
Heating: Heating systems may be classified as central or local. Central heating is often
used in cold climates. Such a system contains a boiler, furnace, or heat pump to heat
water, steam, or air, all in a central location. The system also contains piping or
ductwork to distribute the heated fluid, and radiators to transfer this heat to the air. The
term radiator in this context is misleading since most heat transfer from the heat
exchanger is by convection, not radiation. The radiators may be mounted on walls or
buried in the floor to give under-floor heat.
Ventilation: An air handling unit is used for the heating and cooling of air in a central
location. Ventilation is the process of "changing" or replacing of air in any space to
remove moisture, odors, smoke, heat, dust and airborne bacteria. Ventilation includes
both the exchange of air to the outside as well as circulation of air within the building. It
is one of the most important factors for maintaining acceptable indoor air quality in
buildings. Ventilation is used to remove unpleasant smells and excessive moisture,
introduce outside air, and to keep interior building air circulating, to prevent stagnation
of the interior air.
Air-conditioning: Air Conditioning and refrigeration are provided through the removal
of heat. The definition of cold is the absence of heat and all air conditioning systems
work on this basic principle. Heat can be removed through the process of radiation,
convection, and conduction using mediums such as water, air, ice, and chemicals
referred to as refrigerants.
An air conditioning system, or a standalone air conditioner, provides cooling, ventilation,

and humidity control for all or part of a building. The freon or other refrigerant provides
cooling through a process called the refrigeration cycle. The refrigeration cycle consists
of four essential elements to create a cooling effect. A compressor provides

compression for the system. This compression causes the cooling vapor to heat up. The
compressed vapor is then cooled by heat exchange with the outside air, so that the
vapor condenses to a fluid, in the condenser. The fluid is then pumped to the inside of
the building, where it enters an evaporator. In this evaporator, small spray nozzles spray
the cooling fluid into a chamber, where the pressure drops and the fluid evaporates.
Since the evaporation absorbs heat form the surroundings, the surroundings cool off,
and thus the evaporator absorbs or adds heat to the system. The vapor is then returned
to the compressor. A metering device acts as a restriction in the system at the
evaporator to ensure that the heat being absorbed by the system is absorbed at the
proper rate.
5.4 DCS & SCADA
DCS (Distributed Control System)
A distributed control system (DCS) refers to a control system usually of a manufacturing

system, process or any kind of dynamic system, in which the controller elements are not
central in location (like the brain) but are distributed throughout the system with each
component sub-system controlled by one or more controllers. The entire system of
controllers is connected by a network for communication and monitoring.
DCS is a very broad term used in a variety of industries, to monitor and control
distributed equipment.
a. Elements
A DCS typically uses computers (usually custom designed processors) as controllers

and uses both proprietary interconnections and protocols for communication. Input &
output modules form component parts of the DCS. The processor receives information
from input modules and sends information to output modules. The input modules
receive information from input instruments in the process (field) and output modules
transmit instructions to the output instruments in the field. Computer buses or electrical
buses connect the processor and modules through multiplexers/demultiplexers. Buses

also connect the distributed controllers with the central controller and finally to the
Human-Machine Interface (HMI) or control consoles. Elements of a distributed control
system may directly connect to physical equipment such as switches, pumps and valves
or may work through an intermediate system such as a SCADA system.
b. Applications
Distributed Control Systems (DCSs) are dedicated systems used to control

manufacturing processes that are continuous or batch-oriented, such as oil refining,
petrochemicals, central station power generation, etc. DCSs are connected to sensors
and actuators and use setpoint control to control the flow of material through the plant.
The most common example is a setpoint control loop consisting of a pressure sensor,
controller, and control valve. Pressure or flow measurements are transmitted to the
controller, usually through the aid of a signal conditioning Input/Output (I/O) device.
When the measured variable reaches a certain point, the controller instructs a valve or
actuation device to open or close until the fluidic flow process reaches the desired
setpoint. Large oil refineries have many thousands of I/O points and employ very large
DCSs.
SCADA
SCADA is the acronym for Supervisory Control And Data Acquisition. SCADA
systems are typically used to perform data collection and control at the supervisory
level.
The supervisory control system is a system that is placed on top of a real-time control
system to control a process that is external to the SCADA system (i.e. a computer, by
itself, is not a SCADA system even though it controls its own power consumption and
cooling). This implies that the system is not critical to control the process in real-time, as
there is a separate or integrated real-time automated control system that can respond
quickly enough to compensate for process changes within the time-constants of the
process.

System concepts
A SCADA system includes input/output signal hardware, controllers, HMI, networks,

communication, database and software. It mainly comes in the branch of
Instrumentation Engineering.
The term SCADA usually refers to a central system that monitors and controls a
complete site or a system spread out over a long distance (kilometres/miles). The bulk
of the site control is actually performed automatically by a Remote Terminal Unit (RTU)
or by a Programmable Logic Controller (PLC). Host control functions are almost always
restricted to basic site over-ride or supervisory level capability. For example, a PLC may
control the flow of cooling water through part of an industrial process, but the SCADA
system may allow an operator to change the control set point for the flow, and will allow
any alarm conditions such as loss of flow or high temperature to be recorded and
displayed. The feedback control loop is closed through the RTU or PLC; the SCADA
system monitors the overall performance of that loop.
Data acquisition begins at the RTU or PLC level and includes meter readings and
equipment statuses that are communicated to SCADA as required. Data is then
compiled and formatted in such a way that a control room operator using the HMI can
make appropriate supervisory decisions that may be required to adjust or over-ride
normal RTU (PLC) controls. Data may also be collected in to a Historian, often built on a
commodity Database Management System, to allow trending and other analytical work.

5.5 WATER AND EFFLUENT TREATMENT & DISPOSAL
WASTE-WATER TREATMENT
Wastewater treatment is used for process, runoff, and sewerage water prior to
discharge or recycling. Wastewater typically contains hydrocarbons, dissolved
materials, suspended solids, phenols, ammonia, sulfides, and other compounds.
Wastewater includes condensed steam, stripping water, spent caustic solutions, cooling
tower and boiler blowdown, wash water, alkaline and acid waste neutralization water,
and other process-associated water.
Pretreatment Operations: Pretreatment is the separation of hydrocarbons and solids

from wastewater. API separators, interceptor plates, and settling ponds remove
suspended hydrocarbons, oily sludge, and solids by gravity separation, skimming, and
filtration. Some oil-in-water emulsions must be heated to assist in separating the oil and
water. Gravity separation depends on the specific gravity differences between water

and immiscible oil globules and allows free oil to be skimmed off the surface of the
wastewater. Acidic wastewater is neutralized using ammonia, lime, or soda ash.
Alkaline wastewater is treated with sulfuric acid, hydrochloric acid, carbon dioxide-rich
flue gas, or sulfur.
Secondary Treatment Operations: After pretreatment, suspended solids are removed

by sedimentation or air flotation. Wastewater with low levels of solids may be screened
or filtered. Flocculation agents are sometimes added to help separation. Secondary
treatment processes biologically degrade and oxidize soluble organic matter by the use
of activated sludge, unaerated or aerated lagoons, trickling filter methods, or anaerobic
treatments. Materials with high adsorption characteristics are used in fixed-bed filters or
added to the wastewater to form slurry which is removed by sedimentation or filtration.

Tertiary Treatment Operations: Tertiary treatments remove specific pollutants to meet

regulatory discharge requirements. These treatments include chlorination, ozonization,
ion exchange, reverse osmosis, activated carbon adsorption, etc. Compressed oxygen
is diffused into wastewater streams to oxidize certain chemicals or to satisfy regulatory
oxygen-content requirements. Wastewater that is to be recycled may require cooling to
remove heat and/or oxidation by spraying or air stripping to remove any remaining
phenols, nitrates, and ammonia.
Boiler Water Treatment
Boiler system water treatment is classified as either external or internal. External

treatment is the reduction or removal of impurities from water outside the boiler; it
includes solids removal, precipitation softening, ion exchange processes (softening,
demineralization, dealkalization), evaporation, reverse osmosis, electrodialysis, and
deaeration. Internal treatment is the conditioning of impurities within the boiler. This
involves adding chemicals to scavenge oxygen, control scale, condition sludge, control
pH and foaming, and mitigate corrosion.

5.6 FIRE AND SAFETY SYSTEMS
The Fire and Gas System is not generally related to any particular process. Instead it
divides into fire areas by geographical location. Each fire area should be designed to be
self contained, in that it should detect fire and gas by several types of sensors, and
control fire protection and fire fighting devices to contain and fight fire within the fire
area. In case of fire, the area will be partially shut off by closing ventilation fire dampers.
A fire area protection data sheet typically shows what detection exists for each fire area
and what fire protection action should be taken in case of an undesirable event.
A separate package related to fire and gas is the diesel or electrically driven fire water
pumps for the sprinkler and deluge ring systems. The type and number of the detection,
protection and fighting devices depend on the type of equipment and size of the fire
area and is different for e.g. process areas, electrical rooms and accommodations.
Fire detection:
Gas detection: Combustible and Toxic gas, Electro catalytic or optical (IR)
detector.
Flame detection: Ultraviolet (UV) or Infra Red (IR) optical detectors
Fire detection: Heat and Ionic smoke detectors
Manual pushbuttons
Firefighting, protection:
Gas based fire-fighting such as CO2

Foam based fire-fighting
Water based fire-fighting: Sprinklers, Mist (Water spray) and deluge
Protection: Interface to emergency shutdown and HVAC fire dampers.
Warning and escape: PA systems, beacons/lights, fire door and damper release

Action is controlled by a fire and gas system. Like the ESD system, F&G action is
specified in a cause and action chart called the Fire Area Protection Datasheet. This
chart shows all detectors and fire protection systems in a fire area and how the system
will operate.
For detection, coincidence and voting is often used to false alarms. In such schemes, it
is required that several detectors in the same area detect a fire condition or gas leakage
for automatic reaction. This will include different detection principles e.g. to trig on fire
but not welding or lightening.

GLOSSARY
Absorption: The disappearance of one substance into another so that the absorbed
substance loses its identifying characteristics, while the absorbing substance retains most
of its original physical aspects. Used in refining to selectively remove specific components
from process streams.
Acid Treatment: A process in which unfinished petroleum products such as gasoline,

kerosene, and lubricating oil stocks are treated with sulfuric acid to improve color, odor,
and other properties.
Additive: Chemicals added to petroleum products in small amounts to improve quality or

add special characteristics.
Adsorption: Adhesion of the molecules of gases or liquids to the surface of solid

materials.
Alicyclic Hydrocarbons: Cyclic (ringed) hydrocarbons in which the rings are made up
only of carbon atoms.
Aliphatic Hydrocarbons: Hydrocarbons characterized by open-chain structures: ethane,

butane, butene, acetylene, etc.
Alkylation: A process using sulfuric or hydrofluoric acid as a catalyst to combine olefins

(usually butylene) and isobutane to produce a high-octane product known as alkylate.
Api Gravity: An arbitrary scale expressing the density of petroleum products.
Aromatic: Organic compounds with one or more benzene rings.
Asphaltenes: The asphalt compounds soluble in carbon disulfide but insoluble in paraffin
naphthas.
Atmospheric Tower: A distillation unit operated at atmospheric pressure.
Benzene: An unsaturated, six-carbon ring, basic aromatic compound.
Blending: The process of mixing two or more petroleum products with different properties
to produce a finished product with desired characteristics.
Blowdown: The removal of hydrocarbons from a process unit, vessel, or line on a

scheduled or emergency basis by the use of pressure through special piping and drums
provided for this purpose.
Boiling Range: The range of temperature (usually at atmospheric pressure) at which the
boiling (or distillation) of a hydrocarbon liquid commences, proceeds, and finishes.
Bubble Tower: A fractionating (distillation) tower in which the rising vapors pass through
layers of condensate, bubbling under caps on a series of plates.
Catalyst: A material that aids or promotes a chemical reaction between other substances
but does not react itself. Catalysts increase reaction speeds and can provide control by
increasing desirable reactions and decreasing undesirable reactions.
Catalytic Cracking: The process of breaking up heavier hydrocarbon molecules into

lighter hydrocarbon fractions by use of heat and catalysts.
Coke: A high carbon-content residue remaining from the destructive distillation of

petroleum residue.
Coking: A process for thermally converting and upgrading heavy residual into lighter
products and by-product petroleum coke. Coking also is the removal of all lighter distillable
hydrocarbons that leaves a residue of carbon in the bottom of units or as buildup or
deposits on equipment and catalysts.
Condensate: The liquid hydrocarbon resulting from cooling vapors.
Condenser: A heat-transfer device that cools and condenses vapor by removing heat via
a cooler medium such as water or lower-temperature hydrocarbon streams.
Condenser Reflux: Condensate that is returned to the original unit to assist in giving
increased conversion or recovery.
Cracking: The breaking up of heavy molecular weight hydrocarbons into lighter

hydrocarbon molecules by the application of heat and pressure, with or without the use of
catalysts.
Deasphalting: Process of removing asphaltic materials from reduced crude using liquid
propane to dissolve nonasphaltic compounds.
Debutanizer: A fractionating column used to remove butane and lighter components from
liquid streams.
De-Ethanizer: A fractionating column designed to remove ethane and gases from heavier
hydrocarbons.
Dehydrogenation: A reaction in which hydrogen atoms are eliminated from a molecule.

Dehydrogenation is used to convert ethane, propane, and butane into olefins (ethylene,
propylene, and butenes).
Depentanizer: A fractionating column used to remove pentane and lighter fractions from
hydrocarbon streams.
Depropanizer: A fractionating column for removing propane and lighter components from
liquid streams.
Desalting: Removal of mineral salts (most chlorides, e.g., magnesium chloride and
sodium chloride) from crude oil.
Desulfurization: A chemical treatment to remove sulfur or sulfur compounds from

hydrocarbons.
Dewaxing: The removal of wax from petroleum products (usually lubricating oils and
distillate fuels) by solvent absorption, chilling, and filtering.
Diethanolamine: A chemical (C4H11O2N) used to remove H2S from gas streams.
Distillate: The products of distillation formed by condensing vapors.
Dry Gas: Natural gas with so little natural gas liquids that it is nearly all methane with
some ethane.
Feedstock: Stock from which material is taken to be fed (charged) into a processing unit.
Flashing: The process in which heated oil under pressure is suddenly vaporized in a
tower by reducing pressure.
Flash Point: Lowest temperature at which a petroleum product will give off sufficient vapor
so that the vapor-air mixture above the surface of the liquid will propagate a flame away
from the source of ignition.
Fraction: One of the portions of fractional distillation having a restricted boiling range.
Fractionating Column: Process unit that separates various fractions of petroleum by

simple distillation, with the column tapped at various levels to separate and remove
fractions according to their boiling ranges.
Fuel Gas: Refinery gas used for heating.
Gas Oil: Middle-distillate petroleum fraction with a boiling range of about 350°-750° F,
usually includes diesel fuel, kerosene, heating oil, and light fuel oil.
Gasoline: A blend of naphthas and other refinery products with sufficiently high octane
and other desirable characteristics to be suitable for use as fuel in internal combustion
engines.
Header: A manifold that distributes fluid from a series of smaller pipes or conduits.
Heat Exchanger: Equipment to transfer heat between two flowing streams of different
temperatures. Heat is transferred between liquids or liquids and gases through a tubular
wall.
Hydrocracking: A process used to convert heavier feedstock into lower-boiling, higher-

value products. The process employs high pressure, high temperature, a catalyst, and
hydrogen.
Hydrodesulfurization: A catalytic process in which the principal purpose is to remove

sulfur from petroleum fractions in the presence of hydrogen.
Hydrofinishing: A catalytic treating process carried out in the presence of hydrogen to

improve the properties of low viscosity-index naphthenic and medium viscosity-index
naphthenic oils. It is also applied to paraffin waxes and microcrystalline waxes for the
removal of undesirable components. This process consumes hydrogen and is used in lieu
of acid treating.
Hydroforming: Catalytic reforming of naphtha at elevated temperatures and moderate

pressures in the presence of hydrogen to form high-octane BTX aromatics for motor fuel or
chemical manufacture. This process results in a net production of hydrogen and has
rendered thermal reforming somewhat obsolete. It represents the total effect of numerous
simultaneous reactions such as cracking, polymerization, dehydrogenation, and
isomerization.
Hydrogenation: The chemical addition of hydrogen to a material in the presence of a

catalyst.
Inhibitor: Additive used to prevent or retard undesirable changes in the quality of the
product, or in the condition of the equipment in which the product is used.
Isomerization: A reaction that catalytically converts straight-chain hydrocarbon molecules

into branched-chain molecules of substantially higher octane number. The reaction
rearranges the carbon skeleton of a molecule without adding or removing anything from
the original material.
Iso-Octane: A hydrocarbon molecule (2,2,4-trimethylpentane) with excellent antiknock

characteristics on which the octane number of 100 is based.
Knockout Drum: A vessel wherein suspended liquid is separated from gas or vapor.
Naphtha: A general term used for low boiling hydrocarbon fractions that are a major
component of gasoline. Aliphatic naphtha refers to those naphthas containing less than
0.1% benzene and with carbon numbers from C3 through C16. Aromatic naphthas have
carbon numbers from C6 through C16 and contain significant quantities of aromatic
hydrocarbons such as benzene (>0.1%), toluene, and xylene.
Naphthenes: Hydrocarbons (cycloalkanes) with the general formula CnH2n, in which the
carbon atoms are arranged to form a ring.
Octane Number: A number indicating the relative antiknock characteristics of gasoline.
Olefins: A family of unsaturated hydrocarbons with one carbon-carbon double bond and
the general formula CnH2n.
Polymerization: The process of combining two or more unsaturated organic molecules to

form a single (heavier) molecule with the same elements in the same proportions as in the
original molecule.
Reheater: Exchanger used to heat hydrocarbons before they are fed to a unit.
Pressure-Regulating Valve: A valve that releases or holds process-system pressure (that

is, opens or closes) either by preset spring tension or by actuation by a valve controller to
assume any desired position between fully open and fully closed.
Raffinate: The product resulting from a solvent extraction process and consisting mainly of
those components that are least soluble in the solvents. The product recovered from an
extraction process is relatively free of aromatics, naphthenes, and other constituents that
adversely affect physical parameters.
Reactor: The vessel in which chemical reactions take place during a chemical conversion
type of process.
Reboiler: An auxiliary unit of a fractionating tower designed to supply additional heat to

the lower portion of the tower.
Reduced Crude: A residual product remaining after the removal by distillation of an

appreciable quantity of the more volatile components of crude oil.
Reflux: The portion of the distillate returned to the fractionating column to assist in
attaining better separation into desired fractions.
Reformate: An upgraded naphtha resulting from catalytic or thermal reforming.
Reforming: The thermal or catalytic conversion of petroleum naphtha into more volatile
products of higher octane number. It represents the total effect of numerous simultaneous
reactions such as cracking, polymerization, dehydrogenation, and isomerization.
Regeneration: In a catalytic process the reactivation of the catalyst, sometimes done by

burning off the coke deposits under carefully controlled conditions of temperature and
oxygen content of the regeneration gas stream.
Scrubbing: Purification of a gas or liquid by washing it in a tower.

Solvent Extraction: The separation of materials of different chemical types and
solubilities by selective solvent action.
Sour Gas: Natural gas that contains corrosive, sulfur-bearing compounds such as
hydrogen sulfide and mercaptans.
Stabilization: A process for separating the gaseous and more volatile liquid hydrocarbons
from crude petroleum or gasoline and leaving a stable (less-volatile) liquid so that it can be
handled or stored with less change in composition.
Straight-Run Gasoline: Gasoline produced by the primary distillation of crude oil. It

contains no cracked, polymerized, alkylated, reformed, or visbroken stock.
Stripping: The removal (by steam-induced vaporization or flash evaporation) of the more
volatile components from a cut or fraction.
Sulfuric Acid Treating: A refining process in which unfinished petroleum products such
as gasoline, kerosene, and lubricating oil stocks are treated with sulfuric acid to improve
their color, odor, and other characteristics.
Sulfurization: Combining sulfur compounds with petroleum lubricants.
Sweetening: Processes that either remove obnoxious sulfur compounds (primarily

hydrogen sulfide, mercaptans, and thiophens) from petroleum fractions or streams, or
convert them, as in the case of mercaptans, to odorless disulfides to improve odor, color,
and oxidation stability.
Thermal Cracking: The breaking up of heavy oil molecules into lighter fractions by the
use of high temperature without the aid of catalysts.
Turnaround: A planned complete shutdown of an entire process or section of a refinery,

or of an entire refinery to perform major maintenance, overhaul, and repair operations and
to inspect, test, and replace process materials and equipment.
Vacuum Distillation: The distillation of petroleum under vacuum which reduces the
boiling temperature sufficiently to prevent cracking or decomposition of the feedstock.
Vapor: The gaseous phase of a substance that is a liquid at normal temperature and
pressure.
Visbreaking: Viscosity breaking is a low-temperature cracking process used to reduce the

viscosity or pour point of straight-run residuum.
Wet Gas: A gas containing a relatively high proportion of hydrocarbons that are
recoverable as liquids.
REFERENCES
1] Havard Devold, 2006. “Oil & Gas Production Handbook” (ABB ATPA
Oil & Gas)
2] GPSA “Engineering Data Book”; volume-2 (11th edition)
3] Sanjay Kumar., 1960. “Gas Production Engineering”. (Contributions

in petroleum geology & engineering; Vol-4)
4] Campbell, J.M., 1984. “Gas Conditioning and Processing”, Vol-I, II, III
& IV. 6th edition
5] Dr. Ram Prasad, 2002. “Petroleum Refining Technology”.
6] John Kennedy, 1990. “Fundamentals of Drilling Technology”
7] www.naturalgas.org
8] www.howstuffworks.com
9] www.wikipedia.org

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Petrofac

“OIL & GAS”

Under The Guidance of

Mr. K.R.S.R.Krishna (General Manager)

1. INTRODUCTION TO OIL AND GAS INDUSTRY 01

2. THE UPSTREAM SECTOR 09

3. THE MIDDLESTREAM SECTOR 32

4. THE DOWNSTREAM SECTOR 49

5. ASSOCIATED, UTILITY & SAFETY SYSTEMS 65

1. INTRODUCTION TO OIL & GAS INDUSTRY

1.1 PETROLEUM – CHEMISTRY & COMPOSITION

BASICS OF HYDROCARBON CHEMISTRY

Crude oil is a mixture of hydrocarbon molecules, which are organic compounds of

Petrofac Engineering Services India Pvt Ltd 1

Three Principal Groups or Series of Hydrocarbon Compounds that Occur Naturally in

METHANE CH4 BUTANE C4H10 ISOBUTANE C4H10

2 Petrofac Engineering Services India Pvt Ltd

CYCLOHEXANE C6H12 METHYL CYCLOPENTANE C6H12

ETHYLENE (C2H4) BUTENE (C4H8)

Petrofac Engineering Services India Pvt Ltd 3

1,2-BUTADIENE (C4H6) 1,3-BUTADIENE (C4H6)

Oxygen Compounds: Oxygen compounds such as phenols, ketones, and carboxylic

Nitrogen Compounds: Nitrogen is found in lighter fractions of crude oil as basic

Carbondioxide: Carbondioxide may result from the decomposition of bicarbonates

4 Petrofac Engineering Services India Pvt Ltd

These salts must be removed or neutralized before processing to prevent catalyst

1.2 FORMATION OF OIL & GAS

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1.3 SECTOR-WISE CLASSIFICATION OF THE INDUSTRY

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Petrofac Engineering Services India Pvt Ltd 7

MIDDLE STREAM DOWN STREAM

Oil production Oil Transport Light ends LPG Plant LPG

2. THE UPSTREAM SECTOR

 Surveying and mapping surface and subsurface geologic features with

 Determining a geologic formation’s potential for containing commercial quantities

 Drilling exploration and delineation wells to determine where hydrocarbons are

 Completing construction of wells and site facilities deemed capable of producing

Petrofac Engineering Services India Pvt Ltd 9

2.1 Exploration Techniques

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2.2 DRILLING PLATFORMS

There are several distinct types of platforms and rigs:-

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Semi-submersible Platforms, having legs of sufficient buoyancy to cause the structure

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2.3 DRILLING A WELL

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MAJOR RIG COMPONENTS:

Electrical generators - powered by the diesel engines to provide electrical power

 Mechanical system - driven by electric motors

Turntable - part of the drilling apparatus

 Rotating equipment - used for rotary drilling

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 Drill string - consists of drill pipe (connected sections of about 30 ft / 10 m)

 Blowout Preventer - high-pressure valves (located under the land rig or on

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 Circulation system - pumps drilling mud (mixture of water, clay, weighting

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 Drilling fluid is an important component in the drilling process. A fluid is required

18 Petrofac Engineering Services India Pvt Ltd

i. Conductor casing, which is usually no more than 20 to 50 feet long, is

Surveying and mapping surface and subsurface geologic features with

Determining a geologic formation’s potential for containing commercial quantities

Drilling exploration and delineation wells to determine where hydrocarbons are

Completing construction of wells and site facilities deemed capable of producing

Mechanical system - driven by electric motors

Rotating equipment - used for rotary drilling

Drill string - consists of drill pipe (connected sections of about 30 ft / 10 m)

Blowout Preventer - high-pressure valves (located under the land rig or on

Circulation system - pumps drilling mud (mixture of water, clay, weighting

Drilling fluid is an important component in the drilling process. A fluid is required

Core samples - taking samples of rock to look for characteristics of reservoir

Decomposition (dividing) by thermal and Catalytic Cracking;

Unification (combining) through Alkylation and Polymerization; and

Alteration (rearranging) with Isomerization and Catalytic Reforming.