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EH223 6C




The objective of this report is to determine the recoverable oil and production forecast as well
as to assess the techno-commercial viability of developing the field.

This report is about feasibility study of Eccles field development project that is
located at a remote area. This field development project part of work consists of production
forecast, subsurface development plan, economical evaluation and health, safety and
environment. The main objective of this project is to maximize the profit at the cost effective
manner. To achieve that objective, all departments have cooperated in deciding the decision
of every action taken for this field development.

This report will discuss about the drilling costing for this field. For Subsurface
development plant, they were responsible for detail the design of the facilities for the field.
The main objective of this department is to prepare the flow diagram of the facilities and to
prepare the most suitable separation system, compression system and utilities for the whole
well in the Eccles field. Facilities department also responsible to designs the most
economical supporting structure such as platform, process flow lines and choose the best
evacuation method of crude oil from Eccles field to crude oil terminal. All the design should
support and give the optimum production rates and the most economical for Eccles field for
long period of time.

This report also explained about the economical evaluation for this field. For the
economical evaluation, there are three part of work which is the comparison in term of
Economical and Technical Consideration, Economical evaluation for CAPEX and OPEX and
the technical evaluation in term of advantages and limitation of supporting structure and
topside module. The amount of hydrocarbon initial in place including oil (OOIP) is the best
guideline to choose which scenario has the most priority to be developed. Eccles Field is an
oilfield consists of 30 MM STB of oil. By using data from development team, a cash flow
model based on Malaysian Production Sharing Contract (PSC) 1997 has been developed.
The health, safety and environment factor also included in this report. It covers the part of
DOE regulation, NFPA and safety features in the Eccles field.

The Eccles Fields reservoir is an Under-Saturated Oil Reservoir with Initial Reservoir
Pressure higher than the Bubble Point Pressure (pi>pb). It is assumed that the reservoir is
under Black Oil Reservoir as the Initial Gas Oil Ratio, Rsi, is less than 1300 scf/bbl.
Initially, since there is no gas cap in the reservoir, the primary drive mechanism of the
reservoir is under-saturated oil drive with 1 to 2% recovery factor. After two years, the water
breakthrough is expected that will boost the recovery factor. Dake (20xx, p. 97) has
mentioned that during this stage, expansion of aquifer water will limit the pressure decline in
the reservoir and the recovery from this reservoir will very high in excess of 50%. It is
estimated that the Peak Crude Oil Production Rate occur during this stage. When the
reservoir pressure is less than bubble point pressure (4,300 psia), the first drop of gas will
come out and solution gas drive will take place together with water drive. This stage is
estimated to occur after the fifth year of production. An assumption has been made that the
Peak Crude Oil Production Rate is equal to Peak Gas Production Rate, but occur in different
timeframe. The estimated lifespan of the reservoir is 19 years with technical recovery
estimated as 30 MMbbl.

No of Well Required

No of well =

= 5

= 6 Wells

Facilities and Requirement

Design the surface equipment/facilities that fulfill the requirement of the optimum rate of the
oil production.
1. Do the sizing of the equipment;
i. Separator
ii. Compressor
iii. Pipeline
2. Platform selection
i. Separation system
ii. Heating system
iii. Treating system
iv. Compression system
v. Oil transportation system
vi. Estimate the overall cost of the platform and facilities.



The principle of the separator for this separation system are combination of the Gravity,
Coalescence and Momentum. The options selected for Eccles Field are:

Option 1 : 3 Phase Vertical Separator for Stage 1, 3 Phase Horizontal Separator for
Stage 2
Option 2 : 3 Phase Horizontal Separator for stage 1, 3 Phase Vertical Separator for
Stage 2
Option 3 : 3 Phase Vertical Separators for Stage 1, 3 Phase Vertical Separators for
Stage 2

. Since the production forecast expected after 3 year only, gas and water production will be
produced. Horizontal separator is primarily used to separate oil and water effectively while
vertical separator is used because of its price and size is suitable for offshore platform. The
purpose of Separation System is to stabilize and dewater the hydrocarbon to meet the export


Liquid retention time

Liquid retention time is dependent on fluid properties and should be verified by testing on
actual fluid at operating conditions (pressure and temperature). The retention time to be
calculated from normal levels in the separator. Horizontal separator can handle fluid that has
very low retention time better than vertical separator. Liquid retention time also affected by the
flowrate of the fluid and gas. At the beginning of the production, the main purpose was to get
as much oil as possible. But after gas produced, the amount of gas quite high so the gas is also
taken for sale. Therefore separator need to be able to separate oil, water and gas.

Retention time is very important for separation of liquid-liquid. The longer the retention time,
the better the separation process.
Liquid levels

In the sizing of the separators, the equivalent retention time between normal operating and
alarm level and between alarm level and trip level shall not be less than 30 seconds or
100mm, whichever is greater, for both high and low ranges, however the major guiding factor
will be a reasonable time for the operator to check reasons for operating outside the normal
level. Motion effect shall also be considered. So, the level controller are installed especially
in vertical separator.

Separator internals

Because of the properties of the production fluid contains gas,oil and water, so installation of
the gas demisters or inlet cyclones is appropriate to increase the efficiency of the separation
process, the turndown of the equipment is important for its performance. In such cases, both
minimum and maximum liquid, crude oil, water and gas rates must be considered. Internals
for motion damping shall be applied as necessary. All internals shall be removable and
installable through the manways without welding. Increased internal pressure drop caused by
fouling shall be considered for all relevant scenarios, including, but not necessarily limited to
drain pipes (from gas outlet arrangement). On floating installations motion/wave-dampening
internals shall be installed. The separator shall operate such that undesired channelling, non-
plug flow or short circuit flows do not occur in both liquid and gas phase.

Gas phase internals

Gas outlet nozzles shall be provided with demister arrangements. Pressure tappings should be
installed upstream and downstream gas outlet device, for continuous measurement of
differential pressure to detect clogging. The liquid collected by the gas outlet device are
collected and drained by a drain pipe to the bottom of the separator. The pipe must be
submerged below the LALL. Sufficient drainage head must be assured, so that liquid carry-
over through the drain pipe does not occur under any circumstances. The drainage is
normally internal, into the vessel bottom, but should be routed externally in case of
insufficient drainage height. The total differential pressure over the demisting section,
measured in liquid height, shall not be more than 50% of the available drainage height related
to LAHH.

Liquid phase internals

Internals in the liquid phase should be minimised due to potential clogging. Internals for
improved efficiency of liquid / liquid separation shall be applied based on knowledge about
emulsifying and separability characteristics, and a thorough understanding of fouling
tendencies (through all relevant mechanisms such as scaling, sand accumulation and deposits
of heavy hydrocarbons). Liquid outlet nozzles shall be provided with vortex breakers. The
bottom of the separator shall be possible to inspect with as little dismantling of internals as
possible for access.
Solids removal

All separators shall, as a minimum, have nozzles for sand removal installed. When solid
production is likely the following requirements apply:
All separators shall have sand pans.
Internal jet water headers shall have nozzles for high volume / low driving pressure
with a fan spray pattern which is overlapping between each nozzle
The headers shall be spaced sufficiently for efficient sand removal by unidirectional
jets towards the sand pan.
Sand removal shall be based upon sand fluidization rather than sand displacement.
Consideration shall be given towards efficient sand removal along the entire length of
the separator.
Nozzles to be protected against damage or misalignment by human activity during
normal vessel inspection/maintenance.


Manways shall be minimum 24 and installed to prevent trapped volumes when the separator
is drained.
Instrument nozzles shall be located outside the sand accumulation area. Gas nozzles to flare
shall be located such that liquid carry-over is avoided. Separator inlet and outlet process
nozzles (gas, oil, water) shall be sized a minimum of one standard dimension larger than the
connected pipe work.

System capacity

In design and sizing of the system, a complete set of data on the predicted variations in the
inlet/wellstream quantities and characteristics shall be considered. Simulation data shall be
available to cover all known operating cases over the lifetime of the field. From the
simulation results, sizing cases should be tabulated for each equipment item. In selecting the
design cases it is important to consider the:
Maximum total liquid rate with corresponding highest gas rate.
Maximum oil rate with corresponding highest gas rate.
Maximum water rate with corresponding highest gas rate.
Maximum gas rate with corresponding highest liquid rate.
Operating temperature (including variations in temperature) and pressure in all the
above cases.

The crude oil export specifications are dictated by the downstream facilities/requirements.
System configuration

The system configuration shall be established based on optimisation of outlet specifications.

This must be considered:
Number of separation stages.
Operating pressure at each separation stage.
Heating and cooling requirements (minimum energy consumption and CO2 emission
per produced unit).
Fluid properties.
Compression and pumping requirements (minimum energy consumption and CO2
emission per produced unit).
Special design requirements (e.g. floating production facilities).

Normally a single train shall be employed. However, two trains should be used in cases
Vessel sizes exceed normal fabrication and/or transportation constraints.
Increased oil production regularity justifies multiple trains.
There is a substantial quality/price difference in the crude oils to be processed thus
providing an economic justification for separate processing and offloading.
HP and LP separation trains are required to process feeds from wells operating at very
different pressures.

Pressure control

Pressure control (response times/control margins) shall be designed to avoid consequential

shut-down of the oil separation train(s) as a result of unplanned gas compression shut-down
(i.e. controlled process flaring).

Test separator

The test separator and its system shall be designed to operate both in parallel to the inlet
separator and to lower pressure levels. The size shall as a minimum cater for the maximum
production from any well, GOR and pressure level.

Maintenance requirements

Maintenance requirements is designed to:

Full-flow bypass (with valve suitable for regulation) installed across all level control
valves (LCVs). Bypass piping should be considered installed across heaters, coolers
and coalescer.
To allow for inspection and clean out of the vessels, steam out and utility connections
will be provided as appropriate.

Test separator

Flow measuring devices that will require frequent maintenance, shall be provided with
isolation valves.
Layout requirements

The following lay-out considerations generally applies to the crude oil separation and
stabilization system:
Level control valves should be located to avoid flashing upstream the valves, and to
minimize slugging in the lines downstream such valves.
The lay-out shall allow for gravity draining of the separators (without pockets in the
drain lines) to the closed drain system.
An electrostatic coalescer, if included in the separation train, shall operate liquid
Where a plate exchanger is used for oil cooling, the lay-out should be such that
flashing will not occur in the cooler.
Inlet piping to all separators shall be arranged to avoid high shear forces.

Interface requirements

Individual injection points for anti-foam chemicals shall be installed on test and separation
manifolds and upstream all separator inlets. Injection points for emulsion breaker and
potentially other chemicals shall be provided for on the production and test manifolds.
Emulsion breaker chemicals may also be required upstream all separators. Consider injection
of emulsion breaker and scale inhibitor upstream choke for improved efficiency. When two
or more chemicals are injected into the same stream, it must be checked whether a minimum
distance is required between the injection points to allow in mixing of one chemical before
the next is added.

Commissioning requirements

Piping shall be fitted with high point vents and low point drains.

Safety requirements

In designing the separation and stabilization system, the following safety aspects apply as a

The separators hold large quantities of hydrocarbons in liquid and gaseous phase. Fire
protection insulation on the vessels in order to ensure their integrity in the event of a
fire shall be considered.
Relief cases to be considered for sizing of relief valves shall include fire relief,
blocked outlet, and gas blowby.
During a process or emergency shutdown, the system should be segmented by use of
actuated isolation valves. It is normal practice to treat each separator as an individual
section and isolation valves shall be provided to automatically isolate each vessel in
the event of a process or emergency shutdown.

Horizontal separators are smaller and less expensive than vertical separators for a given gas
capacity. In the gravity settling section of a horizontal vessel, the liquid droplets fall
perpendicular to the gas flow and thus are more easily settled out of the gas continuous phase.
Also, since the interface area is larger in a horizontal separator than a vertical separator, it is
easier for the gas bubbles, which come out of solution as the liquid approaches equilibrium,
to reach the vapor space. Horizontal separators offer greater liquid capacity and are best
suited for liquid-liquid separation and foaming crudes.
Thus, from a pure gas/liquid separation process, horizontal separators would be preferred.
However, they do have the following drawbacks, which could lead to a preference for a
vertical separator in certain situations:
1. Horizontal separators are not as good as vertical separators in handling solids. The liquid
dump of a vertical separator can be placed at the center of the bottom head so that solids will
not build up in the separator but continue to the next vessel in the process. As an alternative, a
drain could be placed at this location so that solids could be disposed of periodically while
liquid leaves the vessel at a slightly higher elevation. In a horizontal vessel, it is necessary to
place several drains along the length of the vessel. Since the solids will have an angle of
repose of 45 to 60, the drains must be spaced at very close intervals. Attempts to lengthen
the distance between drains, by providing sand jets in the vicinity of each drain to fluidize the
solids while the drains are in operation, are expensive and have been only marginally
successful in field operations.
2. Horizontal vessels require more plan area to perform the same separation as vertical
vessels. While this may not be of importance at a land location, it could be very important
3. Smaller, horizontal vessels can have less liquid surge capacity than vertical vessels sized
for the same steady-state flow rate. For a given change in liquid surface elevation, there is
typically a larger increase in liquid volume for a horizontal separator than for a vertical
separator sized for the same flow rate. However, the geometry of a horizontal vessel causes
any high level shut-down device to be located close to the normal operating level. In a
vertical vessel the shutdown could be placed much higher, allowing the level controller and
dump valve more time to react to the surge. In addition, surges in horizontal vessels could
create internal waves that could activate a high level sensor.
It should be pointed out that vertical vessels also have some drawbacks that are not process
related and must be considered in making a selection. These are:
1. The relief valve and some of the controls may be difficult to service without special
ladders and platforms.
2. The vessel may have to be removed from a skid for trucking due to height restrictions.
Overall, horizontal vessels are the most economical for normal oil-gas separation, particularly
where there may be problems with emulsions, foam, or high gas-oil ratios. Vertical vessels
work most effectively in low GOR applications. They are also used in some very high GOR
applications, such as scrubbers where only fluid mists are being removed from the gas.

Therefore, the selection for this project would be the Options 1 which are 3 Phase Vertical
Separator for Stage 1 and 3 Phase Horizontal Separator for Stage 2.
Main function to use the compressor in the oil and gas process is to increase the pressure of
the gas so that the gas can flow with the enough energy or flowrate. Simultaneously, the
compressor reduce the volume of the gas.
We provide the 3 suitable options of the compressor type that available to be use at the Eccles
Best operate in the large flow with low pressure gas.

Suitable to be use in the large to medium flow and high pressure condition of the gas.


The motor basically drives two belts and a pulley which allows the transfer of power from the
motor to the pump pistons and this is done through a flywheel and a crankshaft. Magnetic
starter is installed to avoid motor damage in the event of overload.
It is very common to have two-stage air compressors and these require two cylinder pump to
work. These types of compressors can produce from 145-175 psi by compressing the air in
the larger, low pressure cylinder then onto the smaller and high pressure cylinder.
It is the biggest part of air compressor and it can range from 1-10 gallons or even more of
bigger construction needs.
Installed to automatically shut down the motor when the receiver reaches the factory-set
limit. Once the pressure level drops to a pre-set level then the pressure switch restarts the
motor therefore resuming the pumping of air by the compressor.
Drains the oil, dirt, moisture and other debris that might be trapped inside the tank.
Measures compressed air pressure in the tank of the air compressor. It lets the user know that
there is a problem if the measurements is higher than the regulated normal limit.
Water from oil production will go to the hydrocyclone for further separation of oil droplets in
the solution. Hydrocyclones generate spinning motion of the fluid that creates centrifugal
force to push heavier water outward and lighter oil into the middle core of the cones. The
water continues down and exits out the tapered end. The improved gravity effect provides a
higher rate of separation. The oil removal efficiency is higher with multi-cone modules that
achieve small installation footprints. The equipment are easily accessible and work even with
high oil concentrations.

A vessel containing multiple hydrocyclones for the de-oiling of produced water


The availability of a flare or vent is absolutely necessary in oil and gas production operations.
It ensures that safe disposal of the hydrocarbon gas inventory in the process installation is
possible in emergency and shutdown situation. Where gas cannot be stored or used
commercially, it is essential that the risk of fire and explosion be reduced by either flaring or
For the Eccles Fields oil with the bubble pressure at 4300 psia, there will be the gas
production on this filed. In the condition which gas is not commercially available, the flaring
or venting process will take place considering many aspects.
Should provide a large enough exit velocity so that the flame lifts off the flare tip but not so
large as to blowout the flare. The flare diameter and gas velocity normally are determined by
the flare supplier. They are sized on the basis of gas velocity, although pressure drop should
be checked.
The height is generally based on the radiant-heat intensity generated by the flame. The stack
should be located so that radiation releases from both emergency and long-term releases are
acceptable and so that HC and H2S dispersion is adequate be flame is extinguished. The stack
should be structurally sound and withstand wind, earthquake and other miscellaneous
Burn pits can handle volatile liquids. They must be large enough to contain the maximum
emergency flame length and must have a drain valve and pump to dispose of trapped water.
The flare should be pointed down, and pilot should be reliable.

The size of the vent stack must consider radiation, velocity and dispersion.

Elevated Flare
I. Jack Up Rig

In Eccles Field, the estimated recoverable oil and gas are 30 MMbbl. The oil will be
transported to Export Terminal which 250 km away from the fixed platform (Jacket Platform)
while for gas transportation to Gas Processing Plant is 100 km. By using pipeline. Some criteria
are needed to be analysed which are type of material, size, distance, length and also the design
The steel jacket platform on a pile foundation is by far the most common kind of
offshore structure. This platform are vertical sections made of tubular steel members, and
usually piled into the seabed.

This is called floating platform. It recently used at water depth 200 to 10,000 ft and
also a place where heavy weather. It can be movable or remain at one place. Once it reached
the target point (drill point), it released its anchors that attached to seabed.

Semi-submersible has caisson or column which create buoyant force (from buoyant
pontoons). The vessel is ballast down in order to make sure the pontoons are submerged,
thus giving a substantial buoyancy.
This kind of floating unit vessel used by the offshore industry for the processing of
hydrocarbons and for the storage of oil. It received hydrocarbons produced from the nearby
platforms or subsea template, process them, and store oil until it can be offloaded onto a
tanker or transported through a pipeline.
A jacket platform will be installed at Eccles Field. Due to the shallow water (250 m),
jacket platform is chosen. This platform has concrete three legged that attached to the seabed
and also easily to decommissioning.
The factor of choosing this platform:
Stable work platform
Permanent accommodation for 80 120 persons
Easily use in shallow water

The choosing of platform must not be too expensive as the objective is to rise the profit with
lower operational cost. Thus, some criteria are considered such as:
A. Environmental Forces
This force cannot be control by the operator or the driller. To avoid this, we design the
platform in order to make the operation run smoothly. Certain criteria are applied:

i. Waves : height, period, wave energy

ii. Currents : velocity
iii. Winds : steady or sudden sharp
iv. Corrosion : painting

Subsea pipeline is broadly used to transfer considerable amounts of oil pipeline around
the seabed through the closed tubes, which are key parts of the offshore oil (gas) area
development and production system. At present, it is the fastest, the safest and the most reliable
and economic mode of transporting offshore gas and oil.
Depending on the transmitter, subsea pipeline can be divided into undersea oil
pipelines, submarine gas pipelines, undersea gas and oil mixed transportation pipelines and
underwater aqueduct. However, based on the structure, offshore pipes are divided into double
insulation pipes and single pipes. There are pros and cons of using subsea pipeline.
The Advantages of Subsea Pipeline
Little influence of environment conditions
Transport oil and gas continuously
Efficiency of transportation is high
Low cost operation
Easily to manage and operate

The Disadvantages of Subsea Pipeline

High maintenance
Difficult to inspect
Easily crack when impact with wave and tide


Tanker is a ship that carried crude oil from the platform. There are two types of tanker
which are FSO and FPSO. FSO is Floating, Storage and Offloading while FPSO is Floating,
Production, Storage and Offloading. The difference between FSO and FPSO is the FPSO has
system that can process the crude oil itself. The system include gas compression, dehydration
system, water injection plant, power generation and other utilities. The similarities of both
tanker is both export the crude oil to the crude oil terminal (COT). It is necessary to
accumulate oil in some form of storage tank as the oil tanker is not continuously occupied
during oil production, and is only needed once sufficient oil has been produced to fill the

From the discussion, we agreed with plan A, to install one steel jacket platform with
pipeline as transportation. Generally, this steel jacket platform are consist of two decks (upper
and lower). This platform are fully equipped with production processing equipment that will
process the hydrocarbon from Eccles Field. Moreover, this platform are install with sufficient
and comfortable accommodation in order to make sure that all workers are work efficiently.
Generally, this platform are categorized into some characters: accommodation, detail design of
facilities, compression system, structure and transportation.
Characters description:
i. Accommodation Module

a. Living Quarters

There are 40 rooms for 80 to 120 persons with four floor living quarter. All
rooms are fully air conditioning and the office are located at the first floor. All
the safety features like exit door and assembly point are provided.

b. Galley

Kitchen with fully furnished tools for the sea chefs to serve 80 persons at once

c. Recreations

A multi-gymnasium unit are provided in recreation hall. Indoor games such as

futsal court, dart, video games and magazine corner.

d. Medical Service

A medical facility with 24 hours operation and it provide minor treatment such
as fever, normal sprains and bruises.

ii. Detail design of facility

Separation process (separator, instrumentation).

Power generation (GTG or GEG)
Compression system (compressor)
Utilities system (water treatment, flare, vent)
Transportation (pipeline or tanker)

iii. Power generation

Two unit of diesel fuel power generators will be installed in platform to supply
electricity. Each generator is able to generate 250 MW. One gas turbine is installed to
support the generation of electricity. Gas turbine used processed gas from Eccles Field
to generate electricity.
Platform Design Structure


Oil and gas industry can be considered as the most risky business as it involve a huge
amount of money which determine whether a huge profit can be made or a huge loss occurred.
Therefore, economic evaluation must be done for engineers to have a wide view of project cost
and the risk that they should take in making any decision for every phase especially during
development phase that will be occurred. This section discusses the economic evaluation for
three different cases to determine which plan will give the most profit to the project. Eccless
field have OOIP about 30MMStb so, the economic evaluation will only focus on oil
development. There are few assumption for this oil development.

Commonly the cost are divided into two main part which is Capital expenditure (CAPEX) and
operating expenditure (OPEX). Capital expenditure will usually covers the cost related to the
phase before production which are the exploration, acquisition and development phase while
OPEX covers from development to the production phase together with the abandonment phase.

In any economics evaluation, the economist will divide the cost calculation based on
the phases stated above. Firstly is the supporting structure which is on the rig and on the topside
module which covers the cost of drilling, production, utilities, accommodation and


Oil price/bbl= USD 49.72

Production= 30MMbbl

Revenue= oil price * production

= USD 49.72 * 30MMbbl

= MMUSD 1491.6
CASE I: Jacket Platform via FPSO to Export Terminal

Exploration CAPEX Price ($USDMM)

Total exploration Capex

G&G studies
Wildcat drilling
Appraisal well testing
Price per unit Price
Development CAPEX Unit
Platform (Jacket) 6-well 50 300
Drilling module 6-well 5 30
Waste Disposal Facilities 2 10 20
Energy Generator 2 10 20
Transport & telecommunication 1 10 10
Support Facilities
Treatment Facilities 1 20 20
Separator 3 0.3 0.9
Development Well 6-well 4 24
FPSO 1 600 600
Processing unit 2 50 100
Others 33


OPEX: 3% from total of CAPEX

Total CAPEX Price ($USDMM)

Exploration 20
Development 1157.9
Total 1177.9

Total OPEX:
= 1177.9 19

= $ USD 671.4 MM
CASE I: Jacket Platform via Pipeline to Export Terminal

Exploration CAPEX Price ($USDMM)

Total exploration Capex

G&G studies
Wildcat drilling
Appraisal well testing
Price per unit Price
Development CAPEX Unit
Platform (Jacket) 6-well 50 300
Drilling module 6-well 5 30
Waste Disposal Facilities 2 10 20
Energy Generator 2 10 20
Transport & telecommunication 1 10 10
Support Facilities
Treatment Facilities 1 20 20
Separator 3 0.3 0.9
Development Well 6-well 4 24
Pipeline (155miles) 3 0.3/miles 46
Processing unit 2 50 100
Others 33


OPEX: 3% from total of CAPEX

Total CAPEX Price ($USDMM)

Exploration 20
Development 603.9
Total 623.9

Total OPEX:
= 100 623.9 19
= $ USD 355.62 MM
Cost Evaluation Summary

CAPEX OPEX Cost Incurred

I 1177.9 671.4 1849.3
II 623.9 355.62 979.52



Offshore platforms in Malaysia are typically steel jacket structures located in 10 to 80
meters of water in the South China Sea. On these steel structures is process modules that
separate oil, gas and water produced from subsurface reservoirs. After separation, oil and
gas are sent via sub-sea pipelines to onshore terminals for further treatment prior to sale.
Produced water is typically treated at the platform to an acceptable level as approved by
the DOE prior to discharge into the sea.
In other cases, after separation at the platform into gaseous and aqueous phases, the gas
and liquid are sent to onshore terminals for separation and treatment of oil, gas and water.
Produced water is separated from the liquid are treated at the terminals to an acceptable
Offshore oil and gas developments comply with stringent and proven worldwide safety and
environmental standards established by the petroleum industry. The establishment and
compliance with these self-imposed standards are due to the recognized need to protect
the environment where the platform structures/pipelines will be located, the importance of
protecting the safety and health of the offshore workers and need to protect the high cost
of investment associated with such developments. There is no onshore oil and gas field
development in Malaysia to date although a few exploration drilling campaigns have been
carried out onshore.
Petroleum refining is the physical, thermal and chemical separation of crude oil into its
major distillation fractions which are then further processed through a series of separation
and conversion steps into finished petroleum products. The primary products of the
industry fall into three major categories: fuels (motor gasoline, diesel and distillate fuel oil,
liquefied petroleum gas, jet fuel, residual fuel oil, kerosene, and coke); finished non-fuel
products (solvents, lubricating oils, greases, petroleum wax, petroleum jelly, asphalt, and
coke); and chemical industry feedstock (naphtha, ethane, propane, butane, ethylene,
propylene, butylenes, butadiene, benzene, toluene, and xylene).
Refining crude oil into useful petroleum products can be separated into two phases and a
number of supporting operations:
i) Desalting and distillation of crude oil and the subsequent distillation into its
various components or fractions.
ii) Downstream processes - combining, breaking, and reshaping. Downstream
processes convert some of the distillation fractions into petroleum products
(residual fuel oil, gasoline, kerosene, etc.) through any combination of different
cracking, coking, reforming, and alkylation processes.
iii) Supporting operations may include, sulphur recovery, additive production, heat
exchanger cleaning, blow down systems, blending of products and storage of


Before separation into fractions, crude oil usually must first be treated to remove corrosive
salts. The desalting process also removes some of the metals and suspended solids which
cause catalyst deactivation. Desalting involves the mixing of heated crude oil with water
(about 3 10% of the crude oil volume) so that the salts are dissolved in the water. The
water must then be separated from the crude oil in a separating vessel by adding
demulsifier chemicals to assist in breaking the emulsion and/or, more commonly, by
applying a high potential electric field across the settling vessel to coalesce the polar salt
water droplets.
The desalted crude oil is then heated in a heat exchanger and furnace to about 400 C and
fed to a vertical, distillation column at atmospheric pressure where most of the feed is
vaporized and separated into its various fractions by condensing on 30 to 50 fractionation
trays, each corresponding to a different condensation temperature. The lighter fractions
condense and are collected towards the top of the column. Heavier fractions, which may
not vaporize in the column, are further separated later by vacuum distillation. Within each
atmospheric distillation tower, a number of side streams (at least four) of low boiling point
components are removed from the tower from different trays. Fractions obtained from
atmospheric distillation include naphtha, gasoline, kerosene, light fuel oil, diesel oils, gas oil,
lube distillate, and heavy bottoms. Another product produced in atmospheric distillation, as
well as many other refinery processes, is the light, non-condensable refinery fuel gas (mainly
methane and ethane). Typically this gas also contains hydrogen sulfide and ammonia gases.
The mixture of these gases is known as acid gas. The sour gas is sent to the refinery sour gas
treatment system which separates the fuel gas so that it can be used as fuel in the refinery
heating furnaces. Air emissions during atmospheric distillation arise from the combustion of
fuels in the furnaces to heat the crude oil, process vents and fugitive emissions
Vacuum distillation is simply the distillation of petroleum fractions at a very low pressure
(0.2 to 0.7 psia) to increase volatilization and separation. In most systems, the vacuum
inside the fractionator is maintained with steam ejectors and vacuum pumps, barometric
condensers or surface condensers. The injection of superheated steam at the base of the
vacuum fractionator column further reduces the partial pressure of the hydrocarbons in the
tower, facilitating vaporization and separation. The heavier fractions from the vacuum
distillation column are processed downstream into more valuable products through either
cracking or coking operations.


Thermal cracking uses heat and pressure to break large hydrocarbon molecules into smaller,
lighter molecules. In thermal cracking, heavy gas oils and residue from the vacuum
distillation process are typically the feed stocks. The feed stock is heated in a furnace or
other thermal unit to up to 936 C and then fed to a reaction chamber which is kept at a
pressure of about 140 psig. Following the reactor step, the process stream is mixed with a
cooler recycle stream, which stops the cracking reactions. The product is then fed to a
flasher chamber, where pressure is reduced and lighter products vaporize and are drawn
off. The lighter products are fed to a fractionating tower where the various fractions are
Coking is a cracking process used primarily to reduce refinery production of low-value
residual fuel oils to transportation fuels, such as gasoline and diesel. Hot vapours from the
coke drums, containing cracked lighter hydrocarbon products, hydrogen sulphide, and
ammonia, are fed back to the fractionator where they can be treated in the sour gas
treatment system or drawn off as intermediate products. Steam is then injected into the full
coke drum to remove hydrocarbon vapours, water is injected to cool the coke, and the coke
is removed.
Catalytic cracking uses heat, pressure and a catalyst to break larger hydrocarbon molecules
into smaller, lighter molecules. Fluidized-bed catalytic cracking units (FCCUs) are by far the
most common catalytic cracking units. In the fluidized-bed process, oil and oil vapour
preheated to 260C to 430 C is contacted with hot catalyst at about 700 C either in the
reactor itself or in the feed line (riser) to the reactor. The catalyst is in a fine, granular form
which, when mixed with the vapour, has many of the properties of a fluid. The fluidized
catalyst and the reacted hydrocarbon vapour separate mechanically in the reactor and any
oil remaining on the catalyst is removed by steam stripping. The cracked oil vapours are
then fed to a fractionation tower where the various desired fractions are separated and
Catalytic hydrocracking normally utilizes a fixed-bed catalytic cracking reactor with cracking
occurring under substantial pressure (1,200 to 2,000 psig) in the presence of hydrogen. The
hydrogen suppresses the formation of heavy residual material and increases the yield of
gasoline by reacting with the cracked products. However, this process also breaks the heavy,
sulphur and nitrogen bearing hydrocarbons and releases these impurities to where they
could potentially foul the catalyst. For this reason, the feedstock is often first hydrotreated
to remove impurities before being sent to the catalytic hydrocracker. Sometimes
hydrotreating is accomplished by using the first reactor of the hydrocracking process to
remove impurities. Water also has a detrimental effect on some hydrocracking catalysts and
must be removed before being fed to the reactor. The water is removed by passing the feed
stream through a silica gel or molecular sieve dryer. Depending on the products desired and
the size of the unit, catalytic hydrocracking is conducted in either single stage or multi-stage
reactor processes.
Hydrotreating and hydroprocessing are similar processes used to remove impurities such as
sulphur, nitrogen, oxygen, halides and trace metal impurities that may deactivate process
catalysts. Hydrotreating also upgrades the quality of fractions by converting olefins and
diolefins to paraffins for the purpose of reducing gum formation in fuels. The processes
utilize catalysts in the presence of substantial amounts of hydrogen under high pressure and
temperature to react the feedstocks and impurities with hydrogen. The reactors are nearly
all fixed-bed with catalyst replacement or regeneration done after months or years of
operation often at an off-site facility. In addition to the treated products, the process
produces a stream of light fuel gases, hydrogen sulphide, and ammonia. The treated
product and hydrogen-rich gas are cooled after they leave the reactor before being
separated. The hydrogen is recycled to the reactor. The off-gas stream may be very rich in
hydrogen sulphide and light fuel gas. The fuel gas and hydrogen sulphide are typically sent
to the sour gas treatment unit and sulphur recovery unit. Catalysts are typically cobalt or
molybdenum oxides on alumina, but can also contain nickel and tungsten.
Alkylation is used to produce a high octane gasoline blending stock from the butylenes
formed primarily during catalytic cracking and coking operations, but also from catalytic
reforming, crude distillation and natural gas processing. Alkylation joins an olefin and an
isoparaffin compound using either a sulphuric acid or hydrofluoric acid catalyst.
Isomerization is used to alter the arrangement of a molecule without adding or removing
anything from the original molecule. Typically, paraffins (butane or pentane from the crude
distillation unit) are converted to isoparaffins having a much higher octane. Isomerization
reactions take place at temperatures in the range of 93C to 204 C in the presence of a
catalyst that usually consists of platinum on a base material.
Polymerization is occasionally used to convert propene and butene to high octane gasoline
blending components. The process is similar to alkylation in its feed and products, but is
often used as a less expensive alternative to alkylation.
Catalytic reforming uses catalytic reactions to process primarily low octane heavy straight
run (from the crude distillation unit) gasoline and naphtha into high octane aromatics
(including benzene). There are four major types of reactions which occur during reforming
processes: Dehydrogenation of naphthenes to aromatics, dehydrocyclization of paraffins to
aromatics, isomerization and hydrocracking
Solvent extraction uses solvents to dissolve and remove aromatics from lube oil feed stocks,
improving viscosity, oxidation resistance, colour and gum formation. A number of different
solvents are used with the two most common being furfural and phenol.
In petroleum refining, chemical treating is used to remove or change the undesirable
properties associated with sulphur, nitrogen, or oxygen compound contaminates in
petroleum products. Chemical treating is accomplished by either extraction or oxidation
(also known as sweetening), depending upon the product. Extraction is used to remove
sulphur from the very light petroleum fractions, such as propane/propylene (PP) and
butane/butylenes (BB). Sweetening, though, is more effective on gasoline and middle
distillate products.
Dewaxing of lubricating oil base stocks is necessary to ensure that the oil will have the
proper viscosity at lower ambient temperatures. Two types of dewaxing processes are used:
selective hydrocracking and solvent dewaxing. In selective hydrocracking, one or two zeolite
catalysts are used to selectively crack the wax paraffins. Solvent dewaxing is more prevalent.
In solvent dewaxing, the oil feed is diluted with solvent to lower the viscosity, chilled until
the wax is crystallized, and then filtered to remove the wax.
Propane deasphalting produces lubricating oil base stocks by extracting asphaltenes and
resins from the residuals of the vacuum distillation unit. Propane is usually used to remove
asphaltenes due to its unique solvent properties. At lower temperatures (38C to 60 C),
paraffins are very soluble in propane and at higher temperatures (about 93 C) all
hydrocarbons are almost insoluble in propane. The propane deasphalting process is similar
to solvent extraction in that a packed or baffled extraction tower or rotating disc contactor
is used to mix the oil feed stocks with the solvent.
Lubricants are a blend of different grades of base oils and special additives. To produce a
suitable lubricant, certain properties of the base oil are very important: viscosity, viscosity
index, high resistance to oxidation, low pour point and good dope susceptibility or
compatibility. The principle of base oil production is to separate the desired boiling range
components from the atmospheric residue by vacuum distillation.
Bitumen is a residue derived from certain crude oils after vacuum distillation has removed
waxy distillates. Bitumen is normally mixed with other components (e.g. gravel) to produce
asphalt that is used in road paving, roof coating and pipe sealing or coating
A number of chemicals (mostly alcohols and ethers) are added to motor fuels either to
improve performance or to meet environmental requirements. Since the 1970s, alcohols
(methanol and ethanol) and ethers have been added to gasoline to increase octane levels,
reduce carbon monoxide generation and reduce atmospheric ozone due to the lower
reactivity of resulting VOC emissions. These additives replaced the lead additives which
were being phased out as required by the Auto-Oil I. As a result, a number of different
ethers are currently added to the gasoline and are better able to meet both the new oxygen
requirements and the vapour pressure limits.
Low boiling hydrocarbons are usually treated in a common separation plant operating at
elevated pressures. The purpose of a gas plant is to recover and to separate C1 C5 and
higher compounds from various refinery off-gases by distillation. In mineral oil refineries,
one (or more) gas plant is present to handle different gas streams from different processes.
(eg. Cat reformers, catcrackers and distillation units). Those systems are the core for
installations refining natural gas (where the different components are separated. Depending
on application of the products, some refineries remove mercury from LPG, tops and
Two types of processes are commonly available: hydrocracking and hydrotreatments. Both
processes take place over a metal catalyst in a hydrogen atmosphere. Many of those
processes are found in a refinery, normally named according to the type of feed to treat and
the reaction conditions. The common denominator to those processes is that all rely on
hydrogenation processes and consequently consume hydrogen.
The purpose of a hydrogen plant is to produce hydrogen for use in hydrocracking and other
hydrogen-consuming refinery process units.
Tank Storage
General Requirements. Tanks shall be permitted to be of any shape, size, or type consistent
with sound engineering. Metal tanks shall be welded according to ASME standards.
Materials of Construction. Tanks shall be designed and built in accordance with recognized
good engineering standards for the material of construction being used. Tanks shall be of
steel or other approved noncombustible material, with the following limitations and
(a) The materials of construction for tanks and their appurtenances shall be compatible
with the liquid to be stored. In case of doubt about the properties of the liquid to be stored,
the supplier, producer of the liquid, or other competent authority shall be consulted.
(b) Tanks shall be permitted to be constructed of combustible materials only when
approved by the authority having jurisdiction.
Design Standards for Atmospheric Tanks. Atmospheric tanks, including those incorporating
secondary containment, shall be designed and constructed in accordance with recognized
standards or approved equivalents.
Design of Tank Supports. Supports for tanks shall be designed and constructed in
accordance with recognized standards or approved equivalents. Tanks shall be supported in
a manner that prevents excessive concentration of loads on the supported portion of the
shell. In areas subject to earthquakes, tank supports and connections shall be designed to
resist damage as a result of such shocks
Static Electricity. All equipment such as tanks, machinery, and piping shall be designed and
operated to prevent electrostatic ignitions. All metallic equipment where an ignitable
mixture could be present shall be bonded or grounded. The bond or ground or both shall be
physically applied or shall be inherently present by the nature of the installation. Any
electrically isolated section of metallic piping or equipment shall be bonded or grounded to
prevent hazardous accumulation of static electricity. All non-metallic equipment and piping
where an ignitable mixture could be present shall be given special consideration.
Electrical Installations. Design, selection, and installation of electrical wiring and electrical
utilization equipment shall meet the requirements.

Inspection and Maintenance. All fire protection equipment shall be properly maintained
and periodic inspections and tests shall be done in accordance with both standard practice
and equipment manufacturer's recommendations. Maintenance and operating practices at
tank storage facilities shall control leakage and prevent spillage of liquids. Ground areas
around tank storage facilities shall be kept free of weeds, trash, or other unnecessary
combustible materials. Access ways established for movement of personnel shall be
maintained clear of obstructions to permit orderly evacuation and ready access for manual
fire-fighting. Combustible waste material and residues in operating areas shall be kept to a
minimum, stored in covered metal containers, and disposed of daily.

Performance Standards. The design, fabrication, assembly, test, and inspection of piping
systems shall be suitable for the expected working pressures and structural stresses.
Compliance with applicable sections of ASME B31, Code for Pressure Piping, and the
provisions of this chapter shall be considered prima facie evidence of compliance with the
foregoing provisions.
Tightness of Piping. Piping systems shall be maintained liquid tight. A piping system that has
leaks that constitute a hazard shall be emptied of liquid or repaired in a. manner acceptable
to the authority having jurisdiction.
Material Specifications. Pipe, valves, faucets, couplings, flexible connectors, fittings, and
other pressure-containing parts shall meet the material specifications and pressure and
temperature limitations of ASME B31 & Code for Pressure Piping.
Valves at storage tanks shall be permitted to be other than steel or ductile iron where the
chemical characteristics of the liquid stored are not compatible with steel or where the
valves are installed internally to the tank. Valves installed externally to the tank shall be
permitted to be other than steel or ductile iron if the material of construction has a ductility
and melting point comparable to steel or ductile iron and is capable of withstanding the
stresses and temperatures involved in fire exposure or the valves are otherwise protected
from fire exposures, such as by materials having a fire resistance rating of not less than 2

1 Health and Safety Plan - Oil and Gas Companys vision and approach towards Health and
2 Administration Organizational - hierarchy Key details of persons responsible for managing
health and safety plans
3 Work Area Management - Proper demarcation and management of workplace according
to processes, activities, design, etc. Worksite inspections Implementation of best practices
and lessons learned from the past experiences at workplace
4 H&S Risk Management - Set of systems and processes for managing Health & Safety risks
Job Hazard analysis Hazard ranking/risk matrix Corrective action plans Risk control levels
5 Inventory Management - Maintenance of hazardous substance database
6 Task and Workflow Management - Calendar management Role assignments - Involving
and informing workers, safety officers and others about their roles and responsibilities,
allocated tasks, etc. Automated notifications
7 Health & Safety Maintenance Systems - Performance and monitoring of H&S activities
and corrective action as needed
8 Incident Management - Recording, processing, investigation, reporting and root cause
analysis of any report ted incident/accident/near miss/safety observations Following key
components should be encompassed in an active occupational Safety and Health
Management System: Occupational Safety and Health Management System is one of the
critical factors whose successful execution confirms operational safety in upstream,
midstream and downstream segments of Oil and Gas industry.
9 Occupational Health Management - Health protocols Medical appointments Injury/Illness
management Drug, alcohol and other medical testing
10 Management of Change - Identification of new hazards Introduction of new equipment
Process change new regulatory requirements
11 Emergency Response - Plan Disaster management/Emergency response plan for all the
potential predicaments based on predictive risk analysis Alarm system
12 Compliance Management - Comply with the obligations under pertinent
local/national/global H&S regulations
13 Competency Management - Track capabilities/skills of workforce Trainings for
employees, contractors and visitors Assessments
14 Content Management - Management of SOP, SDS, Health and safety documents
15 Contractor Management - Managing and coordinating activities of contractors
16 Rehabilitation Management - Tracks number of compensation days, rehabilitation
information of workers
17 Statistics, Reporting and Dashboard - Relevant report generation from health and safety
data Interactive dashboards for higher management view and decision making
18 Audit and Review - Audit and review programs to check and improve the effectiveness of
implemented Safety and Health Management System.
Based on feasibility study, it clearly shows that all the scenario is acceptable. However in the
field development plan, we have to choose the best planning that will bring the higher profit
based on the investment. The study to best options for development concept with fixed
subsurface plan was successfully conducted. All the required and expected facilities to be
use throughout the production were choosen for example the standby separator. Another
important utilities that need to consider also selected which are water handling and water
disposal options according to the regulations conducted by certain agencies. All the facilities
selected was based on situational and economics reasons so that the maximum profit will
be obtain.