Introduction to

Upstream Oil & Gas

Projects and Processes
Erwin APRIANDI
OBJECTIVES
The Objectives of this Training is for new Engineers to Understand about the followings:

Oil & Gas Projects Upstream Oil & Gas Field Processes
• Phases and Definitions. • Clear understanding between; Upstream, Midstream
and Downstream.
• Difference Between the Phases.
• Typical Field Processes used in Upstream Oil & Gas.
• Understanding of Projects.
• Definition of Project. • Typical Field Utilities System available in Upstream Oil &
• Project Management Lifecycle and Definitions. Gas.

2
Oil & Gas
Eng. Projects
Phases, Definitions, Lifecycle and
Differences

3
 Oil & Gas Projects
Oil & Gas Projects based on types:
• Greenfield • Brownfield Concept
Oil & Gas Projects are Divided Into Several Phases: and
Feasibility
1. Concept & Feasibility Study 4. Constructions
Study
2. Front End Engineering Design 5. Testing, Commissioning & FEED and
(FEED) Operations Detail
3. Detail Engineering Design (DED) Engineering
Design
Project Concept Testing, (DED)
FEED DED Const.
Phase & FS Comms. & Ops
Further Detail Calc. Construction
Screening &
define the of Project
to check Executing the Testing before
Objectives Project & & Est for
Project project Handover to Ops.
Budget Budget
Feasibility
Auth. Control
Testing,
Comissioning
Project
Def. Level
2 to 15% 40 to 70% 65 to 100% 75 to 100% 95 to 100% and
Cost Est. Class 5 to 4 Class 3 to 2 Class 2 to 1
Operation
NA NA
Accuracy * -50 to +50% -20 to +30% -10 to 15%
* Based on AACE Cost Estimate Classification 4
Project Lifecycle (PMBOK) 6thED
Project management processes are grouped into the
following five Project Management Process Groups or
Lifecycle:
1. Initiating; Processes performed to define a new project or
a new phase of an existing project by obtaining
authorization to start the project or phase
2. Planning; Processes required to establish the scope of the
project, refine the objectives, and define the course of
action required to attain the objectives that the project
was undertaken to achieve.
3. Executing; Processes performed to complete the work
defined in the project management plan to satisfy the
project requirements.
4. Monitoring and Controlling; Processes required to track,
review, and regulate the progress and performance of the
project; identify any areas in which changes to the plan
are required; and initiate the corresponding changes.
5. Closing; Processes performed to formally complete or
close the project, phase, or contract.
5
Upstream
Oil & Gas
Difference of Upstream, Midstream
and Downstream, Typical Processes
and Utilities on Upstream Oil & Gas

6
Upstream Oil & Gas Definition
What is upstream Oil & Gas

UPSTREAM MIDSTREAM DOWNSTREAM MIDSTREAM

• Exploration • Transportation of Oil & • Refining of petroleum • Transportation of Oil &

• Production Gas crude product by crude oil Gas refined product by
• All about the wells, pipeline, rail, barge, oil • Processing and purifying pipeline, rail, barge, oil
where to locate, how to tanker of raw natural gas. tanker or truck.
drill and how to • Storage, and wholesale • Storage, and wholesale
produce marketing of crude marketing of refined
• Other field processing petroleum products petroleum products
prior for transportation

7
Oil & Gas Reservoir
Oil and gas reservoir is a subsurface pool of hydrocarbons
contained in porous or fractured rock formations

Types of Oil & Gas Wells

(Based on drilling direction/method)
• Conventional wells, direct vertically with reservoir.
• Sidetrack wells, usage of existing wells or deviated route of
new well because of blockage.
• Horizontal wells.
• Designer wells.
• Multilateral wells, wells that have more than one branch
radiating from the main borehole.

8
Oil & Gas Well Productions
The production stage is the most important stage of a well's life; when the oil and gas are
produced.
The oil and gas well can be produce by, followings:
Natural
• As long as the pressure in the reservoir remains high
enough, the production tree is all that is required to
produce the well. If the pressure depletes and it is
considered economically viable, an artificial method can
be employed.
Artificial
• Utilizing artificial method to bring the Oil & Gas to the
surface for Productions.
• Pumping the oil out using pumpjack or subsurface
multiphase pump,
• Utilizing ejector/jet pump to produce from low pressure well
utilizing effect of vacuum from high pressure well,
• Enhanced recovery methods such as water flooding, steam
flooding, or CO2 flooding may be used to increase reservoir
pressure and provide a "sweep" effect to push hydrocarbons
out of the reservoir.
9
Typical Oil & Gas Upstream Field Processing
The followings process is typical processes used in upstream oil & gas facility

Booster Gas Pipeline

Gas Treatment
Compressors
Customer:
• Power plant
✓ CO2
✓ H2S Export • Fertilizer plant
✓ H2O Compressors • Etc.
✓ Heavier HC
Production ✓ Particulate
Separator Export Pumps Customer:
• Refinery

Oil Treatment Oil Pipeline/

Tanker
✓ Particulate
✓ CO2 ✓ CO2
✓ H2S ✓ H2S Water Injection
✓ HC ✓ H2O
✓ Lighter HC
Pumps
✓ Particulate
PW Treatment Disposal/ Use
for EOR
10
Typical Utilities For Upstream Oil & Gas Facilities
Common utilities that you can found in oil and gas facilities are as followings:

UTILITIES

• Fuel Gas
• Diesel Fuel
• Power Generation
• Utility Air/ Instrument Air
• Inert Gas System (N2, CO2)
• Utility/Potable/Demin Water
• Heating Medium (Steam, Hot-Oil, etc.)
• Hydraulics Fluid
• Seal System
• Flare System
11
Where Does the Facilities Can Be Built
Upstream Oil & Gas Facilities can be built in the following locations.

Onshore Offshore
• Characteristics of Onshore Facilities. • Subsea Solutions,
• Large area, No Major Concern in Space and Weight. • Offshore Fix Platform,
• Mobile Production (Production Barge, FPSO)
• Characteristics of Offshore Facilities.
• Limited area, Major Concern in Space and Weight.

12
References
1. AACE International RP 18R-97; Cost Estimate Classification System as Applied in Engineering Procurement, and
Construction for The Process Industries, Rev March 6, 2019.
2. Project Management Body of Knowledge 6th Edition, 2017.
3. https://www.ektinteractive.com/what-is-upstream/
4. https://wiki.aapg.org/Well_types
5. http://www.drillingformulas.com/surface-christmas-tree-dry-tree-basic-knowlege/
6. Surface Production Operations, Volume I, II, III. Maurice Stewart, Ken E. Arnold.

13
Any Questions?

14
ThankYou
Erwin APRIANDI
+62AAAAA
Erwin.apriandi@aaaaa.com
www.ABCDE.com