Design of Gas Oil Seperation Plant

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Design of Gas Oil Separation Plant using HYSYS
Technical Report · October 2016

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PTRL 5005 – Final Report
DESIGN OF GAS OIL SEPERATION PLANT
Submitted By
Group 30
Muhammad Dawood Paracha (z5058615)
Muhammad Fahad (z5040758)
Usman Saleem (z5025267)

PTRL 5005-Design Project Page |1
[This page is intentionally left blank]
University of New South Wales

Table of Contents
Section 1
Executive Summary.................................................................................................................... 7
SECTION 1 .................................................................................................................................. 9
1.1. Introduction ................................................................................................................. 9
1.2. Problem Statement .................................................................................................. 10
1.3. Processes and Equipment’s involved in a GOSP .................................................. 11
1.3.1. Three Phase Separator: ................................................................................................. 11
1.3.2. Heat Exchanger: ............................................................................................................. 14
1.3.3. Two Phase Separator: .................................................................................................... 15
1.3.4. Water Oil Separator ....................................................................................................... 16
1.3.5. Dehydrator ....................................................................................................................... 17
1.3.6. De-salter .......................................................................................................................... 18
1.4. Processes and Equipment’s involved in a Gas Plant ........................................... 19
1.4.1. Gas Dehydration: ............................................................................................................ 19
1.4.2. Gas Sweetening Unit ...................................................................................................... 20
1.4.3. Gas Fractionating Columns ........................................................................................... 20
1.5. Literature Review ..................................................................................................... 20
1.5.1. Separators: ...................................................................................................................... 20
1.5.2. Horizontal separators: ................................................................................................... 21
1.5.3. Vertical separators: ....................................................................................................... 22
1.5.4. Separator selection: ...................................................................................................... 22
SECTION 2 ................................................................................................................................ 24
2.1. Mass Balance Calculations ....................................................................................... 24
2.1.1.Computing mass flow rates ............................................................................................ 24
2.1.2. Three-Phase Separator: ................................................................................................ 26
2.1.3. Two-Phase oil/gas Separator ....................................................................................... 28
2.1.4. Water Oil Separator ....................................................................................................... 29
2.1.5. Dehydrator ....................................................................................................................... 31
2.1.6. De-salter .......................................................................................................................... 33
2.1.7. Gas Plant .......................................................................................................................... 35
2.1.8. Scrubber / De-Hydrator................................................................................................. 35
2.1.9. Gas Sweetening Unit ...................................................................................................... 36
2.1.10. Gas Fractionating Columns ......................................................................................... 38

2.1.11. De-Methanizer: ............................................................................................................. 39

2.1.12. De-Ethanizer: ................................................................................................................ 40
2.1.13. De-Propanizer: .............................................................................................................. 41
2.1.14. De-Butanizer: ................................................................................................................ 42
2.2 Energy Balance Calculations: ................................................................................... 44
2.3. Block Diagrams .......................................................................................................... 46
2.3.1. GOSP:................................................................................................................................ 46
2.3.2. Gas Plant Block Diagram ............................................................................................... 46
SECTION 3 ................................................................................................................................ 47
3.1. HYSYS Simulation ...................................................................................................... 47
3.1.1. Oil manager ..................................................................................................................... 48
3.1.2. Primary separation and treatment .............................................................................. 53
3.2 . Equipments: .......................................................................................................... 55
3.2.1 Heat Exchangers: ............................................................................................................. 55
3.2.2. Gas Separation: .......................................................................................................... 58
3.2.3. De-Methaniser: ........................................................................................................... 58
3.2.4. De-Ethaniser: .............................................................................................................. 60
3.2.5. De-Propaniser: ............................................................................................................ 61
3.2.6. De-Butaniser: .............................................................................................................. 62
3.3. Final Product: ...................................................................................................... 63
SECTION 4 ................................................................................................................................ 64
4.1. SIZING.................................................................................................................... 64
4.1.1. Three Phase Separator .............................................................................................. 64
4.1.2. Gas-Oil Separator ........................................................................................................... 65
4.1.3. Absorber/Dehydrator ................................................................................................. 65
4.4 Heat exchanger........................................................................................................... 67
4.7 Distillation columns ................................................................................................... 69
Section 5................................................................................................................................... 71
5. Costing............................................................................................................................ 71
5.1 Separator ..................................................................................................................... 71
5.1.2 Two Phase Separator ................................................................................................. 71
5.2 Distillation Columns ............................................................................................... 72
5.2.1 De-methanizer .................................................................................................................. 72
5.2.2 De-ethanizer ..................................................................................................................... 72
5.2.3 De-propanizer ................................................................................................................... 72

5.2.4 De-butanizer ..................................................................................................................... 72

5.3 Absorber ....................................................................................................................... 73
5.4 Heat Exchangers ......................................................................................................... 73
6.1 ECONOMIC ANALYSIS .................................................................................................. 74
6.2 Capital expenditure (CAPEX).................................................................................... 75
6.3. Operating Cost (OPEX):............................................................................................ 77
6.3.1. Cost of Labour: ............................................................................................................... 77
6.3.2. Cost of Electricity........................................................................................................... 78
6.3.3. Maintenance and Insurance .......................................................................................... 79
6.3.4. Materials Supply ............................................................................................................. 79
6.3.5. Total Operating Costs .................................................................................................... 80
6.4. Gross Revenue ........................................................................................................... 81
6.5. Fiscal Regime ............................................................................................................. 82
6.6. Assumptions ............................................................................................................... 83
6.7. Economic indicators ................................................................................................. 83
6.7.1. Net Present Value .......................................................................................................... 85
Assumptions ............................................................................................................................... 85
6.7.2. Internal rate of return ................................................................................................... 85
7. Conclusion...................................................................................................................... 87
8. References........................................................................................................................... 88

Figure 1: Three Phase Separator ..................................................................................................... 12

Figure 2: Different types of three phase separators. From left to right: Vertical, Horizontal, Spherical
.............................................................................................................................................................. 13
Figure 3: Different types of heat exchangers. From left to right: Co-current, Counter-current .......... 14
Figure 4: Two Phase Separator ........................................................................................................ 16
Figure 5: Schematic of the water oil separator ............................................................................ 17
Figure 6: Dehydrator ......................................................................................................................... 18
Figure 7: Electrostatic De-salter ..................................................................................................... 18
Figure 8: Tri-Ethylene Glycol Dehydration tower......................................................................... 19
Figure 9: 3-phase horizontal separator (Saeid, 2006) ................................................................. 21
Figure 10: Four zones in the 3-phase horizontal separator (Ken Arnold, 1998) ..................... 22
Figure 11: is the typical 3-phase vertical separator (Saeid, 2006) .......................................... 22
Figure 12: Temperature profile of the counter-current Heat Exchanger ................................ 45
Figure 13: GOSP Block Diagram ....................................................................................................... 46
Figure 14: Gas Plant Block Diagram ................................................................................................ 46
Figure 15: Bulk Properties ................................................................................................................ 49
Figure 16: Light ends composition .................................................................................................. 49
Figure 17: Assay percent and temperature in Distillation .......................................................... 50
Figure 18: Normalizing light ends including water....................................................................... 51
Figure 19: Blend calculated showing TBP distillation .................................................................. 51
Figure 20: PFD of GOSP ..................................................................................................................... 52
Figure 21: Operating conditions of Well head stream ................................................................. 53
Figure 22: Operating conditions of Three phase separator ........................................................ 54
Figure 23: Operating conditions of Two phase separator ........................................................... 54
Figure 24: Operating conditions of De-Methaniser....................................................................... 58
Figure 25: Operating conditions of De-Ethaniser ......................................................................... 60
Figure 26: Operating conditions of De-Propaniser ....................................................................... 61
Figure 27: Operating conditions of De-Butaniser ......................................................................... 62
Figure 28: Heat exchanger data ...................................................................................................... 67
Figure 29: Heat exchanger data ...................................................................................................... 68
Figure 30: Heat Exchanger Data ...................................................................................................... 68
Figure 31: Displays all the values of the sizes of each distillation column ............................. 70
Figure 32: Pie chart for CAPEX expenses ....................................................................................... 76

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Executive Summary
This report comprises three sections Mass balance, Simulation and Economic analysis. In
mass balance section our sole purpose was to calculate final mass flow rate of separated
gas and oil which have been pass through separators, dehydrator and distillation columns.
Oil, gas and water are separated by using three and two phase separators followed by
Dehydrators and Heat exchangers by keeping in mind Reid vapour pressure of 30 kPa,
20PTB salt content, 0.3 vol % water and less than 70 ppm hydrogen sulphide. After
calculating mass balance and energy calculations final products are computed which is
elucidated below.
Description Quantity
Feed (crude oil + water + gas) 1215000 bbl/day
Water cut 24.655 % by volume
Remnant water 5.234 % by volume
Associated gas 7.45 % by weight
Salt Content 27567 ppm
Table: Feed Data
Product Mass Flow Rate (kg/day)
Input Feed 16357342.66

Output Oil 3944786.21
Methane 6813882.45
Ethane 2288734.44
Propane 1686435.91
Butane 1047999.46
Table: Final Products from mass balance calculations
Mass balance calculations are not accurate due to assumptions, now to compute precise
results we simulate separation plant in HYSYS v8.8 by neglecting salt content and
hydrogen sulphide because our selected fluid package “Peng-Robinson” does not support
salt removal process and sweetening process. Due to this reason we encounter near 100 %
separation of water from feed after three phase separator which is not realistic. To solve
Hydrogen sulphide (H2S) composition we added its percentage to methane (C1)
composition.
Feed properties enter into HYSYS thermodynamics package are shown in table below

Feed Temperature o C 85
Feed Pressure (kPa) 750
Mass Flow rate( bbl /day) 1215000
Associated Gas (wt %) 7.45
Water Cut (%) 24.65
Viscosity @ 100oF 5.1 cp
Table: Feed properties enter into HYSYS
Final products after carrying out HYSYS simulation are shown below
Product Mass Flow Rate (kg/hr)
Input Feed 6874000

Output Oil 4212508
Methane 297560
Ethane 95112
Propane 67042
Butane 37250
Table: Final products in simulation
The three economic indicators above tell us that the project is economically viable and
should be considered for development. However, it is important to note here that
abandonment costs and uncertainty are ignored in the analysis. For a more detailed
analysis, we should be including abandonment costs and find the analysis at different
levels of probability such as P10, P50 and P90. However, as initial screening criteria, the
project is profitable and should be considered for further development.

SECTION 1
1.1. Introduction
Gas and water present alongside crude oil in underground reservoirs provides the driving
force for oil production to the surface through water-drive and gas cap expansion.
However, this associated gas and water complicates process arrangement downstream of
the well-head.
The consequence of the associated gas and water is that when crude oil is produced at the
surface, it is accompanied by water and gas. As such, crude oil produced at the well-head
cannot be sold until and unless gas and water is separated from it. Separation of
Hydrocarbon gases is necessary to recover valuable products and make crude oil safer for
handling and storage purposes. Water produced from reservoirs is a brine solution with
considerable dissolved salt and as such necessitates removal to overcome corrosion and
problems in handling and refining equipment. This separation is achieved at the Gas-Oil
Separation plant located near the oil field.
Crude oil in its raw form produced from wells undergoes the following three processes in
order to yield useful petroleum products:
1. Surface oil operations for gas-oil-water separation and further treatment of crude
oil
2. Treatment of associated natural gas
3. Fractionating the crude oil into different products
This report deals with the first two aspects of processing operations. Separation of crude
oil into oil, gas and water phases is achieved in mechanical devices called ‘separators’
where gas is flashed from oil and free water is separated through gravity. Once
separated, the three phases are further treated to an acceptable standard. Once treated,
valuable products (crude oil and gas) are discharged to refineries for further processing.
Water is either disposed in an environmentally friendly manner or injected back into the
reservoir to maintain reservoir pressure.
The first section of the report defines the problem statement and numerous unit
operations occurring in the Gas-Oil separation plant. Moreover, this section also presents a
schematic of the plant and operating principles behind each equipment.
The second section defines the design of the Gas-Oil separation and Gas plant on the basis
of the input parameters provided. The design is based on engineering knowledge,
assumptions and mass balances carried around each unit.

PTRL 5005-Design Project P a g e | 10
1.2. Problem Statement
This section provides details of the input parameters that are considered for the design of
the Gas-Oil Separation Plant (GOSP) and the objectives of the design project. The table
below lists composition and properties of the crude oil:
Feed (crude oil + water + gas) 1215000 bbl/day

Water cut 24.655 % by volume
Remnant water 5.234 % by volume
Associated gas 7.45 % by weight
Salt Content 27567 ppm
Table 1: Crude Oil Composition
Specific gravity 0.854

°API gravity 34.2
Pour point Below 5 °F
Sulphur content 0.45 %
Nitrogen content 0.289%
Colour Brownish black
Viscosity, Saybolt Universal at 100°F 43 sec
Table 2: Crude Oil Characteristics
The crude described above is from a reservoir located in Kern County, California. 1215,000
bbl/day of crude oil is to be received by the GOSP. Total water cut accounts to 24.655 %
by volume of the total feed. Of this 5.234 % by volume is remnant water. Salt
concentration is 27567 ppm. Moreover, the crude contains 0.45% Sulphur and 0.289%
Nitrogen.
Components Composition (mass %)

Methane (C1) 56 %
Ethane (C2) 19 %
Propane (C3) 14 %
Butane (C4) 8.7 %
Hydrogen Sulphide (H2S) 2.3 %
Table 3: Associated Gas Composition

Associated gas accounts for 7.45 wt % of the feed and consists of methane, ethane,
propane, butane and hydrogen sulphide. The individual compositions of these components
are given above.
GOSP will be designed to handle the above described crude and shall bring the crude to
the required sales criteria. Through this process, the following shall be achieved:
1. Oil stabilization by reducing the Reid Vapour Pressure below 5 psi of one-third atm.
2. Water content to be less than 0.3% by vol.
3. Salt content lower than 20 PTB.
4. Hydrogen Sulphide content less than 70 ppm.
1.3. Processes and Equipment’s involved in a GOSP
Most often, the well head fluid consists of a wide range of hydrocarbons from gas (C1 to C4
usually), condensates (medium weight hydrocarbons) to crude oil. To add to, there will
also be a variety of unwanted components such as water, carbon dioxide, salts, sand and
sulphur. The purpose of GOSP is to thus process well flow and separate unwanted
components and hydrocarbons into clean marketable products, commonly named as: oil,
natural gas and condensates.
Separation of gas from oil is an important objective of the GOSP. In the formative days of
the oil industry, this gas was considered waste and flared off. However, the need for
cheaper and cleaner fuel has elevated the demand for natural gas in recent past. Thus,
natural gas represents a key product of the GOSP.
The quantity of gas produced with the oil dictates the processing arrangements and
particularly the size of the equipment. The gas separated from crude is sent to the Gas
Plant where any remaining water, natural gas liquids, carbon dioxide and hydrogen
sulphide is separated. Following this, the gas is fractionated into components such as
methane, ethane, propane, butane etc. in order to be sold to the customers.
Water present with crude oil exists as either free water (large water droplets) or as
emulsions. Free water is easily separable through gravity. On the contrary, emulsions can
be difficult to treat and require application of heat, electricity or chemicals. Emulsions
create number of operational challenges such as tripping of electrical grids in de-salters,
production of off-specification crude and high pressure drops in flow lines. The emulsions
have to be treated in order to remove dispersed water and salt associated with water so
that crude oil meets market specifications and reduces corrosion in equipment’s and pipe
lines.
A manifold is an arrangement of pipes that receives oil from flowlines and trunk lines and
re-distributes it to process trains. These headers have production and testing valves which
control flow of each well. The fluid is first sent to the three phase separator.
1.3.1. Three Phase Separator:

A three phase separator is a pressure vessel used for separating a well stream into gaseous
and liquid components. Based on the vessel configurations, the three phase separator can
be divided into horizontal, vertical, or spherical separators. The reduction in pressure

assists in the removal of gas (flashing) whilst separation of water from the oil is achieved
by the force of gravity.
Figure 1: Three Phase Separator
[http://www.emersonprocessxperts.com/2014/01/importance-of-flow-measurement-for-separators/]
An overview of the working principle of the three phase separator is as follows:
Wet crude flows into the inlet. Usually there is a diverter tube
which redirects the flow providing interference that allows water
to settle at the bottom due to force of gravity
Free gas then flows through a mist extractor that helps in

remocing any liquid remaining in the gas. Gas continues to flash
out of liquid while sitting in the separator. Gas flows out of the top
of the vessel through the gas outlet
Liquid continues to settle by gravity with the oil separating from

the water due to density difference and rises out of the solution
accross the weir plate
Oil then pours into the oil chamber while water remains behind.
The separated liquids are then drained from the bottom of the
vessel for further processing.

For crude with high gas oil ratio, we need to increase the retention time or install more
than one separator to ensure better efficiency in the separation process and minimize
liquid carry over to the gas stream. Since three phase separators are not highly efficient,
there is some quantity of oil which is carried with the gas stream when flashed. The oil
stream will also have some gas dissolved within it and also contains remnant water as the
dispersed phase. Moreover, some percentage of oil will also leave with the water stream.
The oil stream from the outlet then flows to the two phase separator for further gas-oil
separation. A heat exchanger may be required prior to the two phase separator to heat
the fluid stream to allow efficient separation.
The two most commonly used separators by the oil and gas industry are vertical and
horizontal types. The schematic below lists the advantages and disadvantages of vertical
Figure 2: Different types of three phase separators. From left to right: Vertical, Horizontal, Spherical
and horizontal type separators.

Three phase
separators
Vertical Horizontal
Disadvatnges Advantages: Advantages Disadvantages
Lower area of Large area of

Small foot print Large foot print
separation separation
Better solid High liquid

Difficult to service
handling ability removal efficiency
Higher liquid
handling
operating range
1.3.2. Heat Exchanger:

Double pipe heat exchanger is the most common type of heat exchanger used in the oil
and gas industry. In a double pipe heat exchanger, one fluid flows inside the inner pipe
while the other fluid flows in the space between the inner and outer pipe. The flow of
fluids can be co-current or counter-current. Usually water or steam is used as the fluid
which heats up the crude oil. Choice between co-current and counter-current heat
exchangers depends upon operating parameters and conditions. The basic function of the
heat exchanger is to heat the oil/water mixture exiting the three phase separator before
it is fed into the two-phase separator. The heating facilitates the separation of gas from
Figure 3: Different types of heat exchangers. From left to right: Co-current, Counter-current

oil.
Determination of the area needed for the double pipe heat exchanger is done using the
basic heat exchanger equation:
𝑸𝑸 = 𝑼𝑼𝑼𝑼∆𝑻𝑻𝑳𝑳𝑳𝑳𝑳𝑳𝑳𝑳
Where,
Q is the rate of heat transfer between the two fluids (KJ), U is the overall heat transfer
coefficient (W/m2°C), A is the heat transfer surface area (m2), Tlmtd is the log mean
temperature difference between the inlet and outlet temperatures of both fluids
1.3.3. Two Phase Separator:

Two phase separator is also known as Low Pressure Production Trap (LTTP). In the two
phase separator, the pressure is further reduced (typically to 50 psig) so that any
remaining gas in the crude oil will separate. The separation is based on the principle of
Flash distillation or Differential separation. Under flash distillation, gases liberated from
oil are kept in intimate contact. As a result, thermodynamic equilibrium is established
between the two phases, leading to separation at the required pressure. Although, this
method provides less efficient separation as compared to differential separation, it
requires fewer stages and thus is economical. Commercially, only flash separation is used.
The liquid (oil and emulsion) leaves the vessel at the bottom through a level-control or
dump valve. The gas leaves the vessel at the top, passing through a mist extractor to
remove any liquid droplets present in the gas.

Figure 4: Two Phase Separator
[http://www.jmcampbell.com/tip-of-the-month/2014/12/troubleshooting-gas-liquid-separators-removal-of-liquids-from-
the-gas/]
1.3.4. Water Oil Separator

Water Oil Separator is used primarily for separation of oil or condensate from water. The
separation is based on the density difference between oil and water. Baffle plates are
used to channel the separated water to the outlet connection while oil is skimmed from
the surface using the skimmer. The separated water can then be treated further for
surface disposal or re-injected into the reservoir for secondary recovery purposes. Oil from
the water oil separator is sent to the dehydrator to remove emulsified water contained in
the oil.

Figure 5: Schematic of the water oil separator
[http://www.aneclecticmind.com/2014/08/01/the-oilwater-separator/]
1.3.5. Dehydrator
The oil stream from the two phase separator and water oil separator is fed into the
dehydrator. The function of the dehydrator is to remove associated water with the oil.
This water is usually in the form of emulsions. Two main reasons for dehydrating oil are:
1. Transferring wet crude with substantial amount of water in un-economical.

2. Salts dissolved in water are corrosive to downstream processing equipment
Dehydration is accomplished through the processes depicted below:
Dehydration
methods
Chemical injection
Heating and
Heating and electrostatic
chemical injection
separation
The methods depicted above rupture the oil film surrounding the water. Once the film is
ruptured, the water droplets coalesce into larger droplets. This coalescence is enhanced
by electric field, water washing or heating. Once the droplets have coalesced, force of
gravity leads to the settling of water.

Figure 6: Dehydrator
[http://www.cherd.ichemejournals.com/article/S0263-8762(13)00535-2/fulltext]
1.3.6. De-salter
If the separated oil contains unacceptable amounts of dissolves salts, the oil is sent to the
de-salter. The salts, which may be sodium, calcium or magnesium chlorides come from the
reservoir water and are also dissolved in the oil. The de-salters are usually placed after
the first or second separator depending on Gas Oil ratio and water cut.
Once crude has passed through the de-salter, the salt content within the crude must be
reduced less than 20 PTB and the Reid Vapour Pressure should be below 5 psi. If the above
conditions are met, the stabilized crude is transported to downstream refineries for
further processing.
Figure 7: Electrostatic De-salter
[http://encyclopedia.che.engin.umich.edu/Pages/SeparationsMechanical/ElectrostaticPrecipitators/ElectrostaticPrecipi
tators.html]

1.4. Processes and Equipment’s involved in a Gas Plant
The gas collected from the overhead streams of the three phase separator and two phase
separator is then sent to the Gas Plant for gas processing.
The primary functions of the Gas Plant are:
1. Remove any remaining liquids.

2. Sweetening (removal of hydrogen sulphide and carbon dioxide).
3. Fractionating the gas into valuable components (methane, ethane, propane,
butane etc.)
1.4.1. Gas Dehydration:

The purpose of gas dehydration plant is to remove any liquid contained in the gas prior to
gas entering the fractionating columns or compressors. Liquid removed may be returned to
the inlet of the two phase separator or disposed of. Following are the reasons for gas
dehydration:
1. Prevention of hydrate formation. A hydrate is a solid that can plug and retard flow
of gaseous hydrocarbon streams formed by physical combination of water and other
small molecules.
2. Prevent corrosion of pipelines and processing equipment.
3. Prevent catalyst poisoning through side reactions involving water.
Gas dehydration is achieved through following methods:
1. Absorption using liquid solvents. The most commonly used is Ethylene Glycol.
Dehydration is carried out in a vertical absorption tower divided into sections using
horizontal trays. Lean Tri-Ethylene Glycol is spread from the top of the vessel while
gas flows upwards. Intimate contact between gas and Tri-Ethylene Glycol leads to
water absorption causing the dry gas to emerge from the top of the tower.
2. Adsorption using solid desiccants such alumina, silica gel, calcium chloride etc.
3. Cooling below dew point.
4. Inhibition using hydrate depressants such ammonia, glycol, methanol etc.
Figure 8: Tri-Ethylene Glycol Dehydration tower
[http://www.armaxgaz.ro/en/company/top-projects.html]
1.4.2. Gas Sweetening Unit

Gas containing H2S is referred to as ‘sour’ gas. Hydrogen sulphide is a toxic and corrosive
gas the function of gas sweetening unit is to remove hydrogen sulphide. The sweetened
gas is free from contaminants such as H2S and CO2 and can then be sent to the fractioning
unit. Gas sweetening is carried by the following methods:
1. Claus process which involves combusting H2S to SO2 and then reacting H2S and SO2
to produce elemental S.
2. Adsorption using molecular sieves.
3. Physical absorption using liquid solvents such as Di-glycol amine, dimethyl ether
etc. The unit consists of a tower (similar to the one used in gas dehydration)
containing packing elements filled with lean solvent. Intimate contact between
process gas and solvent leads to H2S removal. The rich solvent accumulates at the
base of the vessel and is removed and sent to the regeneration unit.
1.4.3. Gas Fractionating Columns

Gas fractionating columns consists of De-Methanizer, De-Ethanizer, De-Propanizer and De-
Butanizer where particular fraction of gas is removed and sold as separate products.
Separation is based on boiling points. A temperature which is between the boiling points
of the two fractions is used. This allows lighter component nearly 98-99% pure to be
distilled out. The remainder of the gas is then sent to the next column operated at higher
temperature to facilitate removal of the heavier component.
1.5. Literature Review
1.5.1. Separators:
3 stage separator works on rule that all 3 components have different densities, which
permits every component to settle in layer when moving gradually with water on the
bottom, gas on the top and oil between them. Other solids like sand will also settle in the
base of separator. These types of separators are utilized close to oil production well to
separate crude oil into different components like gas, oil and water.
Separators are generally classified by their function like 2-stage and 3-stage separator and
their shape like vertical, horizontal and vertical (Saeid, 2006). 2-stage separator separates
only gas from liquid feed and 3-stage also separates liquid stream in to water and crude oil
phase (Ken Arnold, 1998). Moreover, separators are also classified according to the
operating pressure like high, medium and low pressure separators. Furthermore, they may
be categorized by temperature and principles like centrifugal, gravity and coalescing.
In centrifugal separator, forces acting on droplets are quite larger than gravity forces in a
cylindrical separator. Centrifugal separators are employed to remove droplets of size
larger than 100 micron in diameter (Talavera, 1990). Therefore, centrifugal separators are
very useful for gas streams with more particles loading. Small droplets like mist or fog
cannot be isolated by gravity but by coalescence two or more droplets merge to form a
large droplets can be separated easily. In coalescing device, gas is forced to pass through
complex paths which results in collision to form large droplets and can be separated due
to gravity.

1.5.2. Horizontal separators:

Horizontal separators are always employed for higher gas oil ratio(GOR) wells, liquid-liquid
separation and foamy streams (Beggs, 1984). Figure 9 represents 3-phase horizontal
separator. Fluid enters in to the separator and hits inlet diverter which in effect changes
momentum. Change in momentum separates gas and liquid. Mostly, diverter has a
downcomer that compels liquid to flow below the water-oil interface. This forces Inlet
mixture of water and oil to blend with continuous phase (water) in the base of vessel and
ascends through the water-oil interface. This procedure is called water washing which
promotes the coalescing of water drops in the continuous phase (oil). Free water settles at
the bottom and emulsion makes layer at the top. The water produced from the mixture
flows to the vessel. Gas flows horizontally and flows through demisting device or mist
extractor to a pressure controlled valve which assures vessel pressure is constant.
Figure 9: 3-phase horizontal separator (Saeid, 2006)
Furthermore, as represents in Figure 10 there are four zones in the 3-phase horizontal
separator (Ken Arnold, 1998). Zone 1 between inlet and first baffle is the primary
separation which separates liquid from gas. Zone 2 is the gravity settling zone which is
employed to settle droplets out of the liquified gas stream. Zone 3 is the droplet
coalescing zone contains parallel plates, mesh, vane packs and demisters to eliminate
smallest droplets. Zone 4 is the liquid collection point where we control the system by
maintaining minimum liquid level.

Figure 10: Four zones in the 3-phase horizontal separator (Ken Arnold, 1998)
1.5.3. Vertical separators:

Vertical separator eliminates more liquid from the gas. Vertical separator provides
efficient surge and is employed in low to medium GOR wells. Same like horizontal
separator it is available in 2-phase and 3-phase. Liquid enter through inlet and then
diverter separates the gas which further flows through demister and flows out.
Downcomer is also required in vertical separator to transport collected liquid by
maintaining skimming. Figure 11 is the typical 3-phase vertical separator. (Powers, 1990)
Illustrates that vertical separator must be configured with flow stream at the top and must
passes through liquid-gas separation vessel.
Figure 11: is the typical 3-phase vertical separator (Saeid, 2006)
1.5.4. Separator selection:

Separator is selected on the basis of economics but (Manning, 1995) summarized the
applications and benefits of both horizontal and vertical configurations which are:
We prefer horizontal separators in the mentioned conditions:
1. Medium to High gas oil ratio streams.

2. Rate of feed is large.

3. Crude foaming.
4. 3-phase separation.
Advantages of horizontal separators are:
1. It requires fewer diameters for the same gas capacity in contrast to vertical
separators.
2. No counter stream: gas flow never resists drainage of demister.
3. Larger surface area for foaming which decreases turbulence.
4. Larger capacity for surging.
Vertical separators are employed in below conditions:
1. Feeding rate is smaller.

2. Very high gas oil stream.
3. Less space available to accommodate separators.
4. Easy to keep level under control.
Advantages of vertical separators are:
1. Covers small plot area.

2. Full diameter of vessel is available for gas flow at the top and oil flows at the base.
3. Efficient bottom draining and cleaning out facilities.
4. Deal with more mud, sand, wax and paraffin’s without clogging

SECTION 2
In Section 2, Mass balance calculations are carried out along the separation plant using
engineering assumptions. Moreover, mass flow rate and percentages of gas, water and oil
are calculated at every stage.
2.1. Mass Balance Calculations
2.1.1.Computing mass flow rates
Feed (Crude oil,

Water Cut / Associated gas (% of
water & Salt Content (ppm)
Remnant (% by Vol.) wt of total)
gas)(bbl/day)
1,215,000 24.655/5.234 7.45 27,567

Table 4: Contents of Feed
5.615 ft 3 1m3
Feed = 1,215,000 bbl ∗ = 6,822,225 ft 3 × = 193,168.81 m3 /day
1 bbl 35.314ft 3
m3
Volume flow rate of free water = % of free water ∗ feed = 0.194 ∗ 193,168.81 = 37,515.31
day
Volume flow rate of Remnant water = % of Rem. water ∗ feed = 0.052 ∗ 193,168.81
m3
= 10,110.46
day
m3
Volume flow rate of total water = 37,515.31 + 10,110.46 = 47,625.77
day
Mass of Salty Water In Feed:
To calculate the mass of water, let us consider the density of fresh water.
mass flow rate of fresh water in feed = ρfresh water ∗ Vfresh water = 1,000 ∗ 47,625.77
kg
= 47,625,770
day
27,567 kg
mass flow rate of salt = ∗ 47625770 = 1,312,899.602
1,000,000 day
kg
mass flow rate of salt water = 1,312,899.602 + 47,625,770 = 48,938,669.6
day
𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟 𝑜𝑜𝑜𝑜 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤𝑤 48,938,669.6 1027.567kg

density of salt water = = =
volume flow rate of salt water 47,625.77 m3
We know that,

ρHC
SG =
ρwater
kg
ρfeed = SG × ρwater = 0.854 × 1000 = 854
m3
(Density of salt water * vol %of water)+ (density of oil* vol% of oil) = density of feed
(1027.567 * 0.2465) + (density of oil * 0.7535) = 854
854−(1027.567∗0.2465) kg
Density of oil = 0.7535
= 797.219
m3
Mass flow rate of HC in feed = ρHC × feed = 797.219 × 193,168.81 × .7535
kg
= 116,035,193.12
𝑑𝑑
Mass flow rate of feed=116,035,193.12+ 48,938,669.6 = 164,973,862.56 kg/day
Calculating The Mass Flow Rate Of Each Component In Feed:
Mass flow rate of gas in feed = % of gas × massfeed = 0.0745 × 164,973,862.56
kg
= 12,290,552.76
day
Mass flow rate of oil in feed = massHC − massGas
kg
Mass flow rate of oil in feed = 116,035,193.12 − 12,290,552.76 = 103,744,640.36
day
Mass flow rate of free water = ρsalty water × Vfree water = 1,027.57 × 37,515.31
kg
= 38,549,499.05
day
Mass flow rate of Remnant water = ρsalty water × VRemnant water = 1,027.57 × 10,110.46
kg
= 10,389,170.38
day
𝐤𝐤𝐤𝐤 𝐤𝐤𝐤𝐤 𝐤𝐤𝐤𝐤 Free water Remnant Total water

Feed � � Oil �𝐝𝐝𝐝𝐝𝐝𝐝� Gas �𝐝𝐝𝐝𝐝𝐝𝐝� 𝐤𝐤𝐤𝐤 𝐤𝐤𝐤𝐤 𝐤𝐤𝐤𝐤
𝐝𝐝𝐝𝐝𝐝𝐝 �𝐝𝐝𝐝𝐝𝐝𝐝� water �𝐝𝐝𝐝𝐝𝐝𝐝� �𝐝𝐝𝐝𝐝𝐝𝐝�
164,973,862.56 103,744,640.36 12,290,552.76 38,549,499.05 10,389,170.38 48,938,669.43
Table 5: Mass flow rate of feed components

2.1.2. Three-Phase Separator:

Input to the three phase separator:
kg
1. Oil mass flow rate = 103,744,640.36 � �
day
kg
2. Gas mass flow rate = 12,290,552.76 � �
day
kg
3. Remnant water mass flow rate = 10,389,170.38 � �
day
kg
4. Free water mass flow rate = 38,549,499.05 � �
day
Assumptions:
1. 93% of gas goes to the gas stream, 7% to oil stream and 0% to water stream.
2. 3% of oil goes to gas stream, 92% to oil stream and 5% to water stream.
3. 0% of free water goes to gas stream (since the water is much denser than gas), 4%
to oil stream and 96% to water stream.
4. 95% of remnant water goes to oil stream and 5% of remaining remnant water will
be transported with the separated free water.
5. The feed is at pressure of 100 psia and temperature of 150 °F.
6. H2S is present only in the associated gas and not in crude oil.
Gas outlet stream:
kg
93% of gas goes to gas outlet stream = 0.93 × 12,290,552.76 =11,430,214.07
day
kg
3% of oil goes to gas outlet stream = 0.03 ×103,744,640.36 = 3,112,339.21
day
0% of free water goes to gas outlet stream
0% of Remnant water goes to gas outlet stream

kg kg
Total gas outlet mass flow rate = 11,430,214.07 + 3,112,339.21 =14,542,553.28
day day
Oil outlet stream:

kg
7% of gas goes to oil outlet stream = 0.07 × 12,290,552.76 = 860,338.69
day
kg
92% of oil goes to oil outlet stream = 0.92 × 103,744,640.36 = 95,445,069.13
day
kg
4% of free water goes to oil outlet stream = 0.04 × 38,549,499.05 = 1,541,979.96
day
kg
95% of Remnant water goes to oil outlet stream = 0.95 × 10,389,170.38 = 9,869,711.86
day

Total oil outlet mass flow rate = 860,338.69 + 95,445,069.13 + 1,541,979.96 + 9,869,711.86
kg
= 107,717,099.65
day
Water Outlet Stream
0% of gas goes to water outlet stream

kg
5% of oil goes to water outlet stream = 0.05 × 103,744,640.36 = 5,187,232.02
day
kg
96% of free water goes to water outlet stream = 0.96 × 38,549,499.05 = 37,007,519.09
day
kg
5% of Remnant water to water outlet stream = 0.05 × 10,389,170.38 = 519,458.52
day
Total water outlet mass flow rate = 5,187,232.02 + 37,007,519.09 + 519,458.52

kg
= 42,714,209.63
day
Total = 14,542,553.28 kg/day

Feed =
164,973,862.56 Gas= 78.60%
Kg/day
Oil= 21.40%
Oil= 62.89%
Free water= 0%
Gas=7.45%
Remnant= 0 %
Free water=23.37%
Remnant=6.30%
Total = 42,714,209.63 Total = 107,717,099.65

kg/day kg/dayGas= 0.80%
Gas= 0% Oil= 88.61%
Oil= 12.14% Free water= 1.43%
Free water= 86.64% Remnant= 9.16 %
Remnant= 1.22 %
Oil outlet stream then enters to the two phase separator (LPPT) for further separation.
The water stream enters water oil separator, while gas stream goes to Gas Plant.

2.1.3. Two-Phase oil/gas Separator

Oil is heated to 180°F before entering the two phase separator in a double pipe heat
exchanger to aid in the separation of light ends.
Input:
kg
1. Total mass flow rate= 107,717,099.65
day
kg
2. Gas mass flow rate= 860,338.69
day
kg
3. Oil mass flow rate= 95,445,069.13
day
kg
4. Free water mass flow rate= 1,541,979.96
day
kg
5. Remnant water mass flow rate= 9,869,711.86
day
Assumptions:
1. 100% of gas goes to gas outlet stream.
2. 1% of oil goes to gas outlet stream.
3. 99% of oil goes to oil outlet stream.
4. 0% of free water and remnant water go to gas outlet stream.
5. 100% of free and remnant water go to oil outlet stream.
The feed is at pressure of 50 psia and temperature is 180 °F.
Outlet Streams:
Gas outlet stream
kg
100% of gas goes to gas stream = 1 × 860,338.69 = 860,338.69
day
kg
1% of oil goes to gas stream = 0.01 × 95,445,069.13 = 954,450.69
day
0% of free water and remnant water go to gas stream
kg
Total mass flow rate = 860,338.69 + 954,450.69 = 1,814,789.38
day
Oil outlet stream
0% of gas goes to oil stream
99% of oil goes to oil stream
kg
= 0.99 × 95,445,069.13 = 94,490,618.44
day

kg
100% of free water goes to oil stream = 1 × 1,541,979.96 = 1,541,979.96
day
kg
100% remnant water goes to oil stream = 1 × 9,869,711.86 = 9,869,711.86
day
kg
Total mass flow rate = 94,490,618.44 + 1,541,979.96 + 9,869,711.86 = 105,902,310.27
day
Gas stream
Total = 1,814,789.38 kg/day
Gas= 47.41%
Total = 107,717,099.65
Oil= 52.59%
kg/day
Free water= 0%
Gas= 0.80%
Remnant= 0 %
Oil= 88.61% Oil stream
Free water= 1.43% Total = 105,902,310.27 kg/day
Remnant= 9.16% Gas= 0 %
Oil= 89.22 %
Free water= 1.46 %
Remnant= 9.32 %
Oil stream from the two phase separator is then sent to the dehydrator for removal of
emulsions. The separated gas stream combines with the gas stream from the three phase
separator and is fed to the Gas Plant.
2.1.4. Water Oil Separator

Water stream from HTTP is fed into water oil separator to recover some of the oil that was
lost to the water stream.
Input:
kg
1. Total mass flow rate= 42,714,209.63
day
kg
2. Gas mass flow rate= 0
day
kg
3. Oil mass flow rate= 5,187,232.02
day
kg
4. Free water mass flow rate= 37,007,519.09
day
kg
5. Remnant water mass flow rate=519,458.52
day

Assumptions:
1. 99% of oil goes to oil stream.

2. 99% of remnant water goes to oil stream.
3. 1% of free water goes to oil stream.
4. 1% of oil goes to water stream.
5. 1% of remnant water to water stream.
6. 99% of free water goes to water stream.
7. The feed is at a pressure of 75 psia and temperature of 150 °F.
Oil outlet stream:
kg
99% of oil goes to oil stream = 0.99 × 5,187,232.02 = 5,135,359.70
day
kg
99% of remnant water goes to oil stream = 0.99 × 519,458.52 = 514,263.93
day
kg
1% of free water goes to oil stream = 0.01 × 37,007,519.09 = 370,075.19
day
kg
Total = 5,135,359.70 + 514,263.93 + 370,075.19 = 6,019,698.82
day
Water outlet Stream:
kg
1% of oil goes to water stream = 0.01 × 5,187,232.02 = 51,872.32
day
kg
1% of remnant water goes to water stream = 0.01 × 519,458.52 = 5,194.59
day
kg
99% of free water to water stream = 0.99 × 37,007,519.09 = 36,637,443.90
day
kg
Total mass flow rate = 51,872.32 + 5,194.59 + 36,637,443.90 = 36,694,510.80
day
Oil stream from the water oil separator is mixed with the oil stream from two phase
separator and is received at the dehydrator. The water stream from water oil separator
can be treated further or re-injected for secondary recovery operations.

Oil stream
Total = 6,019,698.82 kg/day
Gas= 0%
Total = Oil= 85.31%
42,714,209.63 kg/day Free water= 6.15%

Gas= 0%
Remnant= 8.54 %
Oil= 12.14%
Free water= 86.64% Water stream
Remnant= 1.22 % Total = 36,694,510.80 kg/day
Gas= 0 %
Oil= 0.14 %
Free water= 99.84 %
Remnant= 0.01 %
2.1.5. Dehydrator
Electric heating and chemical injection techniques are employed in the dehydrator to
break the emulsions and cause the water droplets to coalesce.
Input:
kg
The total inlet mass flow rate = 8,067,278.95 + 137,588,635.70 = 145,655,914.65
day
The total oil mass flow rate flowing to dehydrator = 126,488,618.98 + 6,874,381.47 =
kg
133,363,000.45 day
The total remnant water flowing to dehydrator

kg
= 9,558,036.75 + 822,822.29 = 10,380,859.05
day
kg
The total free water flowing to dehydrator = 1,541,979.96 + 370,075.19 = 1,912,055.15
day
Assumptions:
1. 99.9% of oil goes to oil stream.

2. 0% of free water goes to oil stream.
4. 0.1% of oil goes to water stream.

5. 100% free water goes to water stream.

6. 75% of remnant water goes to water stream.
7. The dehydrator is operating at pressure of nearly 40 psia and temperature of feed
is 160 °F.
Oil outlet stream:
kg
99.9% of oil goes to oil stream = 0.999 ×99,625,978.14=99,526,352.16
day
0% of free water goes to oil stream
kg
25% of remnant water goes to oil stream = 0.25 ×10,383,975.80=2,595,993.95
day
kg
Total oil outlet stream = 99,526,352.16 + 2,595,993.95 =102,122,346.11
day
Water outlet stream
kg
0.1% of oil goes to water stream = 0.001 × 99,625,978.14 =99,625.98
day
kg
100% free water goes to water stream =1,912,055.15
day
kg
75% of remnant water goes to water stream = 0.75 ×10,383,975.80=7,787,981.85
day
kg
Total water outlet stream = 99,625.98 + 1,912,055.15 + 7,787,981.85 =9,799,662.98
day
Oil stream
𝑘𝑘𝑘𝑘
Total = 102,122,346.11
𝑑𝑑𝑑𝑑𝑑𝑑
𝑘𝑘𝑘𝑘 Oil= 97.46%

Feed = 111,922,009.09
Free Water=0%
Oil= 89.01 %
Remnant water= 2.54%
Free water= 1.71%
Remnant Water= 9.28 % Water stream
𝑘𝑘𝑘𝑘
Total = 9,799,662.98
Oil= 1.02 %
Free water= 19.51%
Remnant Water= 79.47%
From the dehydrator all the crude oil proceeds to the de-salter.

2.1.6. De-salter
In this process, the salinity of oil stream is reduced to less than 20 PTB by the removal of
the remnant water in order to make it stable.
Input:
kg
Total mass flow rate= 102,122,346.11
day
kg
Oil mass flow rate= 99,526,352.16
day
kg
Remnant water mass flow rate= 2,595,993.95
day
Assumptions:
1. 99.8% of oil goes to oil stream.

3. 0.2% of oil goes to water stream.
4. 92% of remnant water goes to water stream.
5. The de-salter is operating at pressure of nearly 30 psia and temperature of feed is
130 °F.
Oil outlet stream
kg
99.8% of oil goes to oil stream = 0.998 × 99,526,352.16 =99,327,299.46
day
kg
8% of remnant water goes to oil stream = 0.08 × 2,595,993.95 =207,679.52
day
kg
Total oil stream mass flowrate = 99,327,299.46 + 207,679.52 =99,534,978.97
day
Water outlet stream
0.2% of oil goes to water stream

kg
0.002 × 99,526,352.16 =199,052.70
day
kg
92% of remnant water goes to water stream = 0.92 × 2,595,993.95 =2,388,314.43
day
kg
Total water stream mass flow rate = 199,052.70 +2,388,314.43 =2,587,367.14
day

Dry oil stream
𝑘𝑘𝑘𝑘
Total = 99,534,978.97
Oil= 99.79 %
𝑘𝑘𝑘𝑘
Feed =102,122,346.11 Remnant Water=0.21%
Oil= 97.46 %
Remnant Water= 2.54 %
Water stream
𝑘𝑘𝑘𝑘
Total = 2,587,367.14
Oil= 7.69 %
Remnant water= 92.31%
The oil stream exits the de-salter 20 psi pressure and 120°F temperature.
Salinity of dry oil stream:
salt mass in oil stream= water mass in oil stream × salt content
27,567 2.2046 Ib
= 207,679.52 × × = 12,621.558 Ib
1,000,000 1 kg
The volume of oil in oil stream in bbl/day
99,327,299.46 kg
� �
kg
854 3 bbl
= m = 731,498.8
0.159 day
The volume of water in oil stream
207,679.52 kg
� �
kg
1027.57 3 bbl
= m = 1271.1195
0.159 day
bbl
Total volume of oil stream = 731,498.8 + 1271.1195 = 732,769.9
day

As we know that salinity is the amount of salt in pounds per 1000 barrels of oil
mass of salt 12621.558

salinity (PTB) = = x1000 = 17.22 PTB
1000 bbl 732,769.9
Reduction of water content in oil to nearly 0.15 % of the volume, the salinity of the crude
has reduced to 12.87 PTB. Thus sales specifications have been met and 980,481.97 bbl/day
of dry crude will be pumped to the refineries or sent to storage tanks based on hands
calculations and taking into account the assumptions stated.
2.1.7. Gas Plant

Gas streams from the three phase and two phase separators are mixed and sent to the gas
plant.
kg
1. Total Feed to the Gas Plant = 16,357,342.66
day
kg
2. Mass of oil in the feed = 4,066,789.90
day
kg
3. Mass of Gas in the Feed = 12,290,552.76
day
2.1.8. Scrubber / De-Hydrator

Owing to presence of liquid in the gas streams from both the three phase and two phase
separators, the purpose of the Gas Plant is to remove all the liquids by dehydration.
Input:
kg
1. Total Feed to Scrubber/De-Hydrator = 16,357,342.66
day
kg
2. Mass of oil in the feed = 4,066,789.90
day
kg
3. Mass of Gas (C1 - C4 + H2S) in the Feed = 12,290,552.76
day
Assumptions:
1. 100% of Gas goes to Gas stream.

2. 97% of oil/liquid is separated.
3. 3% of oil carried over in Gas stream
4. No remnant water in Gas stream as assumed previously
Gas outlet stream
kg
100 % of Gas goes to Gas stream = 1 × 12,290,552.76 = 12,290,552.76
day
kg
3 % of Oil (C5) goes to Gas stream = 0.03 × 4,066,789.90 = 122,003.70
day
kg
Total mass flowrate of Gas Stream = 12,412,556.4612
day

Bottom Liquid stream
kg
97% of oil is separated out = 97 × 4,066,789.90 = 3,944,786.21
day
kg
Total liquid stream flow rate = 3,944,786.21
day
Gas Stream
𝑘𝑘𝑘𝑘
Total = 12,412,556.46
Gas(C1-C4+H2S) = 99.02%
C5+ =0.98%
Feed
𝑘𝑘𝑘𝑘
= 16,357,342.66
C5+= 24.86%
Gas (C1-C4+H2S)= 75.14% Bottom Stream
𝑘𝑘𝑘𝑘
Total = 3,944,786.21
Oil= 100 %
2.1.9. Gas Sweetening Unit

Upon the dehydration of gas, sourness of gas is reduced in a sweetening unit by removal of
hydrogen sulphide.
Input:
kg
Total Feed to Gas Sweetening Unit = 12,412,556.4612
day
kg
Mass of C5 in the feed = 122,003.70
day
kg
Mass of Gas in the Feed = 12,290,552.76
day
kg Kg
Mass of H2S = 2.3% × 12,290,552.76 = 282682.71
day day
kg
Mass of Gas w/o H2S = 12,290,552.76 − 282682.71 = 12,007,870.05
day
Assumptions:

1. 100% of Gas without H2S goes to Gas stream.

2. 100% of C5 is carried over in Gas stream.
3. 99.79 % of H2S is separated out. The rest is carried forward in the Gas stream
Gas outlet stream
kg
100 % of Gas w/o H2S goes to Gas stream = 1 × 12,007,870.05 = 12,007,870.05
day
kg
100 % of Oil (C5) goes to Gas stream = 1 × 122,003.70 = 122,003.70
day
kg
0.21 % of H2S remains in the Gas = 0.21 % × 282,682.71 = 593.63
day
kg
Total mass flowrate of Gas Stream = 12,007,870.05 + 122,003.70 + 593.6 = 12,130,467.38
day
Bottom stream
kg
99.79% of H2S is separated out = 0.9979 × 282,682.71 = 282,089.08
day
kg
Total Bottom stream flow rate = 282,089.08
day
Gas stream
𝑘𝑘𝑘𝑘
Total = 12,130,467.38
Gas = 98.99%
Oil =1.01%
Feed H2S = .005%

𝑘𝑘𝑘𝑘
=12,412,556.46
Oil= 0.98%
Bottom Stream
Gas= 96.74%
𝑘𝑘𝑘𝑘
Total = 282,089.08
H2S = 100 %
H2S Content in the Gas

593.63
PPM of H2S in Gas = mass of H2S / mass of Gas × 1,000,000 = × 1,000,000 =
12,007,870.05
49.437PPM
H2S content from the gas is reduced to less than 70 PPM as per requirements.
2.1.10. Gas Fractionating Columns

The dehydrated and sweetened gas is sent to the fractionating Columns to extract
valuable products C1, C2, C3 and C4 which are used as feedstock in petrochemical
industries.
Input:
kg
Total mass flow rate=12,290,552.76
day
kg
Mass flow rate of C5+=122,003.70
day
kg
Mass flow rate of (C1, C2, C3, C4+H2S) = 12,008,463.68
day
The mass fractions for the associated gas are as following:
Methane = 57.32%
Ethane = 19.45%
Propane = 14.33%
Butane = 8.90%
H2S = 0.0049%
Mass of each component:

kg
1. Methane = 0.5732 × 12,008,463.68 = 6883251.382
day
kg
2. Ethane = 0.1945 × 12,008,463.68 = 2335646.186
day
kg
3. Propane = 0.1433 × 12,008,463.68 = 1720812.845
day
kg
4. Butane = 0.0890 × 12,008,463.68 = 1068753.268
day
kg
5. H2S = 0.000049 × 12,008,463.68 = 588.4147204
day

2.1.11. De-Methanizer:
Assuming that the De-Methanizer operates at -130 °C (between the Boiling points of C1 &
C2).
Input:
kg
1. Methane = 0.5732 × 12,008,463.68 = 6883251.382
day
kg
2. Ethane = 0.1945 × 12,008,463.68 = 2335646.186
day
kg
3. Propane = 0.1433 × 12,008,463.68 = 1720812.845
day
kg
4. Butane = 0.0890 × 12,008,463.68 = 1068753.268
day
kg
5. H2S = 0.000049 × 12,008,463.68 = 588.4147204
day
kg
6. C5+ =122,003.70
day
kg
7. Total mass flow rate=12,130,467.38
day
kg
8. Mass flow rate (C1, C2, C3, C4)= 12,008,463.68
day
Assumptions:
1. 99.0% of C1 and 1% of C2 leaves through the top stream.

2. The remaining components do not flash and are carried forward to the next column
for further fractionation.
3. Bottom stream has the remaining gases and C5.
Mass flow rate of C1 & C2 flowing to top the stream = 0.99 × 6,882,709.55 + 0.01 ×
kg
2,335,205.02 = 6,837,234.50 day
Mass flow rate of C1, C2, C3, C4,H2S & C5+ flowing to the bottom stream
kg
= 14,934,876.59 − (0.99 × 8,466,390.51 + 0.01 × 2,872,525.35) = 5,293,232.88
day
Outlet Stream
𝑘𝑘𝑘𝑘
Total = 5,293,232.88
C1=1.3%
C2=43.68 %
C3=32.51%
𝑘𝑘𝑘𝑘 C4=20.20%
Feed =12,130,467.38
Separated Stream
Oil= 1.01% 𝑘𝑘𝑘𝑘
Total = 6,837,234.50
Gas= 98.99 %
C1=99.66%
C2=0.34 %
Methane is distilled from the column while the heavier stream heads towards De-
Ethanizer.
2.1.12. De-Ethanizer:
Let’s assume that the De-Ethanizer operates at -65 °C (between the Boiling points of C2 &
C3).
Input:
kg
Methane = 68,827.10
day
kg
Ethane = 2,311,852.97
day
kg
Propane = 1,720,677.39
day
kg
Butane = 1,069,278.09
day
kg
H2S = 593.63
day
kg
C5 =163,318.64
day
kg
day
Assumptions:
Mass flow rate of C2 & C3 flowing to the top stream
kg
= 0.99 × 2,311,852.97 + 0.01 × 1,720,677.39 = 2,305,941.22
day
Mass flow rate of (C1, C2, C3, C4 ) flowing to the bottom stream
kg
= 5,293,232.88 – 0.99 × 2,311,852.97 + 0.01 × 1,720,677.39 = 2,987,291.66
day
Ethane is distilled from the column while the other stream is fed to the De-Propanizer.

Outlet Stream
𝑘𝑘𝑘𝑘
𝑘𝑘𝑘𝑘 Total = 2,987,291.66
Feed =5,293,232.88 𝑑𝑑𝑑𝑑𝑑𝑑
C1=2.30%
C1=1.30%
C2=0.77 %
C2=43.68 %
C3=57.02%
C3=32.51%
C4=35.79%
C4=20.20%
C5=4.08%
C5=2.30%
H2S = 0.02%
H2S = 0.011%
Separated Stream
𝑘𝑘𝑘𝑘
Total =2,305,941.22
C2=99.25%
C3=0.75 %
2.1.13. De-Propanizer:
Let’s assume that the De-Propanizer operates at 25°C (between the Boiling points of C3 &
C4).
Input:
kg
Methane = 68,827.10
day
kg
Ethane = 23,118.53
day
kg
Propane = 1,703,470.61
day
kg
Butane = 1,069,278.09
day
kg
H2S = 593.63
day
kg
C5 =122,003.70
day
kg
day
Assumptions:

Mass flow rate of C3 & C4 flowing to the top stream = 0.99 × 1,703,470.61 + 0.01 ×
kg
1,315,314.24 = 1,697,128.69 day
Mass flow rate (C1, C2, C3, C4 ) flowing to the bottom stream
kg
= 2,987,291.66 – 1,697,128.69 = 1,290,162.97
day
Propane is distilled from the column while the other heavier components head towards
De-Butanizer.
Outlet Stream
𝑘𝑘𝑘𝑘
Feed =2,987,291.66 𝑘𝑘𝑘𝑘
Total = 1,290,162.97
C1=2.30%
C1=5.33%
C2=0.77 %
C2=1.79 %
C3=57.02%
C3=1.32%
C4=35.79%
C4=82.05%
C5=4.08%
C5=9.46%
H2S = 0.0198%
H2S = 0.05%
Separated Stream
𝑘𝑘𝑘𝑘
Total = 1,697,128.69
C3=99.37%
C4=0.63 %
2.1.14. De-Butanizer:
Let’s assume that the De-Butanizer operates at 12°C (boiling point of C4).
Input:
kg
Methane = 68,827.10
day
kg
Ethane = 23,118.53
day

kg
Propane = 17,034.71
day
kg
Butane = 1,058,585.31
day
kg
H2S = 593.63
day
kg
C5 =122,003.70
day
kg
day
Assumptions:
1. 100% of C3+ and 99.0% of C4 through the top stream.
kg
Mass of C3 & C4 flowing to the top stream = 1 × 17,034.71 + 0.99 × 1,058,585.31 =
day
kg
1,065,034.16
day
Outlet Stream
𝑘𝑘𝑘𝑘
Total = 225,128.81
𝑘𝑘𝑘𝑘
Feed =1,290,162.97 C1=30.57%
C1=5.33% C2=10.27 %
C2=1.79 % C4=4.70%
C3=1.32% C5+=54.19%
C4=82.05% H2S = 0.26%
C5=9.46% Separated Stream
H2S = 0.046% Total = 1,065,034.16

𝑘𝑘𝑘𝑘
C3=1.60%
C4=98.40%

2.2 Energy Balance Calculations:

To enhance the separation process, an increase in temperature or decrease in pressure of
the stream can be beneficial. We have employed a heat exchanger to elevate the
temperature of the crude oil before the entry of wet oil into the Two-phase separator.
The crude needs to be heated from 65°C to 83°C. We use steam at 100°C as the hot
stream to heat the fluid.
Assumptions:
1. The specific heat capacity of wet hydrocarbon= 2700 J /kg. °k.
2. Overall heat transfer coefficient= 480 W/m2. °K

3. Saturated steam at 100 °C enter the exchanger and exits as saturated water at 100
°C.
4. Energy lost from the steam = Energy gained by the wet hydrocarbon
mo × CPc × Δ Tc = ms × Lh
kg Kg
mo = 139,924,597.33 = 1619.49
day s
1619.49 × 2700 × (356 − 338) = ms × 2267*103
kg
ms = 34.718
s
Mass of steam required is 34.718 kg/s
Calculation of exchanger size:
From the energy balance around heat exchanger:
mo × CPc × Δ Tc = U × A × Δ TLMTD
ΔT1 = T1 − t1 = 100 − 65 = 35°C
ΔT2 = T2 − t 2 = 100 − 83 = 17°C
ΔT1 − ΔT2 35 − 17
Δ TLTMD = = = 24.92 °C
ΔT 35
ln �Δ T1 � ln �17�
2
Hence:
mo × CPc × Δ Tc 1619.49 ×2700×(83−65)

A = U× Δ TLMTD
= (480× 24.92)
= 6579.99 m2

The area of the heat exchanges obtained here is quite large and impractical. The output
stream from the three phase separator can be split into more than one streams and
multiple heat exchangers of available sizes can be employed to serve the purpose.
120
100 100 °C 100 °C
83°C
Tempearture (Degree C)
80
60 Steam
Wet Crude
65 °C
40
20
0
Stage
Figure 12: Temperature profile of the counter-current Heat Exchanger

2.3. Block Diagrams
2.3.1. GOSP:
Figure 13: GOSP Block Diagram
2.3.2. Gas Plant Block Diagram
Figure 14: Gas Plant Block Diagram

SECTION 3
3.1. HYSYS Simulation

Fluid coming out of well is unstable and contains different complex compounds. Oil stream
has turbulent flow, high velocity, dropping pressure, temperature and expansion of
different gases makes it unstable due to this reason separation of feed in to three
components oil, water and gas feed must be achieved instantly after well fluid comes to
the surface.
This section involves simulation of Gas Oil Separation process for which we employed
Aspen HYSYS V8.8, is a commercial software adopted by the oil and gas, process and
refining industries because it
• Is User-friendly
• Improves designing and performance
• Evaluates economics and identifies energy savings
• Observes operation and safety issues
• Improves operating conditions and capacity
HYSYS models wellhead fluid (Feed) which contains oil, water and gas. Firstly HYSYS
defines feed properties for instance viscosity at different temperatures, TBP (Temperature
Boiling Point) data and percentage of light ends. We have selected “Peng Robinson” fluid
package which is a thermodynamic model precisely calculates “Vapour Equilibrium Data”
Firstly we input feed data in to composition list which are shown in Table 6; we add
methane, ethane, propane, butane and H2O. Salt is not added in the composition because
HYSYS package cannot simulate salt content. There is a significant quantity of H2S is
present in the feed which requires sweetening unit for its treatment and “Peng Robinson”
doesn’t model sweetening process alone for that multiple fluid packages need to run
concurrently. For simplification we are ignoring H2S content and adding its composition
percentage to methane as new conditions shown in Table 7 but we cannot ignore H2S in
real life operation.
Group Water Cut Associated Salt

Feed Composition of
No. Remnant Gas (% wt of Content
(bbl/day) C1/C2/C3/C4/H2S
(% by Vol.) total) (ppm)
30 1215000 24.655/5.234 7.45 27,567 56/19/14/8.7/2.3
Table 6: Initial Feed Conditions

Group Water Cut Associated Salt

Feed Composition of
No. Remnant Gas (% wt of Content
(bbl/day) C1/C2/C3/C4
(% by Vol.) total) (ppm)
30 1215000 24.655/5.234 7.45 27,567 58.3/19/14/8.7
Table 7: Feed Conditions after neglecting H2S
3.1.1. Oil manager

“Oil Manager” computes properties and composition of feed on the basis of fluid package.
We characterize feed by describing relative Assays and Blends. Blend is constructed from
Assay which is calculated in oil manager.
Tasks carried out in oil manager are
• Oil characterization is carried out in oil manager and defines composition and
thermodynamic properties of feed as shown in Table 8.
Viscosity , Saybolt Universal @ 100oF , 43 sec = 5.1 cp
Specific Gravity = 0.854
Gravity, o API = 34.2
Sulfur percentage = 0.45
Fraction Cut temperature

o Percent Sum percent
No. F
1 122 2.6 2.6
2 167 2.3 4.9
3 212 5.0 9.9
4 257 7.9 17.8
5 302 6.2 24.0
6 347 4.9 28.9
7 392 4.6 33.5
8 437 5.2 38.7
9 482 4.9 43.6
10 527 6.2 49.8
Table 8: Feed Analysis

• HYSYS Inputs: Bulk properties and light ends are converted and introduced into oil
manager and light ends or gases (C1, C2, C3, and C4) can be added into manager in
mass fractions. Total composition of light ends equals 7.28% of total.
Figure 15: Bulk Properties
Figure 16: Light ends composition

Finally we input Assay percent and temperature in distillation. Oil properties are
calculated according to the “Peng Robinson” fluid package and True Boiling Points (TBP)
plot is shown in Figure19 in which green curve presents inputs and red curve is the
calculated model. Ideally green and red curves need to be close as much as possible.
Figure 17: Assay percent and temperature in Distillation
After installing crude stream into simulation we input water composition per mass fraction
and keep normalising until we achieve same percentages of light ends including water
which is elucidated in Figure 18.

Figure 18: Normalizing light ends including water
Figure 19: Blend calculated showing TBP distillation

Figure 20: PFD of GOSP

3.1.2. Primary separation and treatment
After installing feed into the simulation, we will separate feed into oil, gas and water.
Feed coming out of well is coming into three phase separator, due to decrease in pressure
gas or light ends liberate out of oil and free water goes out from the bottom due to gravity
effect. We have considered retention time of 60 seconds as plant is treating with medium
to heavy oil. Operating conditions for feed (wellhead stream) and three phase separator (3
phase Sep) are shown below
Figure 21: Operating conditions of Well head stream
In real life practice, to avoid rapid pressure drop along three phase separator, two
separators are employed in series because steady pressure drop helps in flashing lighter
ends or gas efficiently. Different pressures at lower stage separation can be resolute on
the basis of equal pressure fractions between stages (Campbell, 1976).
1
𝑃𝑃1 𝑛𝑛
𝑅𝑅𝑝𝑝 = � �
𝑃𝑃𝑠𝑠
In equation, 𝑛𝑛 is the number of stages, 𝑅𝑅𝑝𝑝 is the pressure ratio, 𝑃𝑃1 is the first stage pressure
and 𝑃𝑃𝑠𝑠 is the stock tank pressure which is mostly101.3 𝑘𝑘𝑘𝑘𝑘𝑘.
Pressure at the medium stages can be calculated by using equation below
𝑃𝑃𝑖𝑖−1
𝑃𝑃𝑖𝑖 =
𝑅𝑅𝑃𝑃
In equation 𝑃𝑃𝑖𝑖 is the pressure at initial stage.
As we are using three and two phase separators along which Reid vapour pressure of oil
outlet stream after three phase separator is 39.96 kPa whereas under 30 kPa after two
phase separator.
Pressure along three phase separator is 750 kPa and along two phase separator is 450 kPa.
As pressure difference drop along two separators is less than 500 kPa. Operating
conditions of two separators are shown below

Figure 22: Operating conditions of Three phase separator
Figure 23: Operating conditions of Two phase separator
It is important to note here that final crude oil must be able to transport for which
industry has standard conditions and requirements which are shown below in Figure 22.
Conditions Requirements
Salt content Less than 20 PTB
Water content 0.1 vol%
o
Reid vapour pressure@37.8 C Under 30 kPa
We have selected fluid package “Peng-Robinson” in which we cannot quantify salt content
so it’s not possible to simulate for salt removal or other electrolytes in this package. Due
to this reason desalting is not taken into account for our design.

3.2 . Equipments:
3.2.1 Heat Exchangers:

HE-100:
We used this exchanger to use cool methane stream to decrease the temperature of gas
feed from 83.6o to 1oC and we also reduced duty by avoiding cooler to make it energy
efficient.
Table 9: Operating conditions of HE-100

HE-101:
We used heat exchanger-101 by using hot water stream of 85oC to increase temperature of
dehydrated gas feed from 3.7oC to 55oC to make it vaporise and then directed into de-
methaniser to separate lighter C1 as shown in figures below
Table 10: Operating conditions of HE-101

Dehydrator:
Gas stream coming out of two separators contains water and other constituents of oil
which needs to be removed before distillation. Before distillation we employed
absorber/dehydrator to remove water from gas stream.
Component Mass Fractions

Methane 0.6987
Ethane 0.1192
Propane 0.0573
n-Butane 0.0241
H2S 0.0000
H2O .0789
Table 11: Initial composition of gas stream
In the absorber we shower Ethylene glycol to absorb water because it has high affinity
towards water and high boiling point. Composition of gas after passing through absorber is
shown below
Component Mass Fractions

Methane 0.7586
Ethane 0.1294
Propane 0.0622
n-Butane 0.0262
H2S 0.0000
H2O 0.0000
Table 12: Composition of gas after dehydration
Table 13: Operating conditions of Dehydrator

3.2.2. Gas Separation:

After passing through absorption and HE-101 gas stream is directed to the series of
distillation columns where methane, ethane, propane and butane are separated in purest
forms. Unrecovered hydrocarbons at the bottom of de-butaniser are recovered as
condensates. To achieve desired composition for each product, light key mixes in the
bottom and heavy key enters in to the distillate. Reboiler and condensers pressure must
be lower than the incoming gas stream pressure to allow gas to enter in to the distillator.
Pressure of reboiler must be higher than the condenser to permit gas to enter into the
distillate. At the end we have to input reflux ratio and its value must be 1.15 to 1.5 times
larger than the minimum reflux ratio. Number of trays represents efficiency of distillation
column because trays are very expensive so we reduced number of trays by increasing
external reflux ratio. Higher reflux ratio results in good separation but high liquid loading.
3.2.3. De-Methaniser:
Figure 24: Operating conditions of De-Methaniser


3.2.4. De-Ethaniser:
Figure 25: Operating conditions of De-Ethaniser

3.2.5. De-Propaniser:
Figure 26: Operating conditions of De-Propaniser

3.2.6. De-Butaniser:
Figure 27: Operating conditions of De-Butaniser

3.3. Final Product:
Mass Flow Temperature Pressure Purity

Product o
Rate (kg/hr) C kPa Wt%
Input Feed 6874000 85 750 -
Output Oil 4212508 84.95 450 -
Methane 297560 -142.7 380 99.99
Ethane 95112 -60.70 370 99.97
Propane 67042 -8.7 360 99.97
Butane 37250 37.40 350 99.95

SECTION 4
4.1. SIZING
In each sizing calculation, the measurement values are rounded up to the nearest 0.25
metres to ensure the constructions and measurements done are easier and precise.
4.1.1. Three Phase Separator
The three phase separator capacity is largely determined by retention time. The volume
of the three phase separators is a function of volumetric flow divided by retention time.
Volume of three phase separator = (2)* Volumetric Flow Rate/ Retention Time
The value is multiplied by two because of there need to be ample space for the vapour
phase to disengage from the liquid stream. Half volume of the three phase separator will
be occupied by liquid phase and another half will be occupied by gas phase.
Retention time = 60 seconds.

Volumetric Flow Rate = 8006 m3/hr
Volume of three phase separator = (2)*(8006 m3/hr)*(1/60 hr)
= 266.867 m3
Because of safety reason, I assume L/D to be 4. L is length and D is diameter. It is a

normal practice for L/D ratio to be 2 to 5. If L/D ratio smaller than 2, the structure will be
uneconomical. If L/D ratio is bigger than 5, the structure will be unstable.
Assume the three phase separator is a perfect cylinder.
Volume of perfect cylinder = Pi*D2*L/4, since L = 4D

= Pi*D3
Equate equation 1 and 2.

Pi*D3 = 266.867 m3
D = (266.867 m3/Pi) 1/3
D =4.3959 m
From my assumptions, L = 4D
L = 4*4.3959 m
L = 17.5836 m
Round off to the nearest 0.25 m
Hence, L = 17.75m and D = 4.5m.

4.1.2. Gas-Oil Separator
The formula, assumptions, reasons of the calculations of the two phase separator is
basically the same as the three phase separator.
Retention time = 60 seconds

Volumetric Flow Rate = 4367 m3/hr
Volume of two phase separator = Volume of Vessel * Retention Time * 2
= (4367 m3/hr) * (1/60) *2
= 145.567 m3
Assumption
1. L/D = 4
2. Vessel is a perfect cylinder
Volume of perfect cylinder = Pi*D2*L/4,

Since, L = 4D
= Pi*D3
Equate equation 1 and 2.
145.567m3 = Pi*D3
D = 3.591 m
Since length,
L= 4D
L = 4 * 3.591 m
L =14.367 m
Round off L and D to the nearest 0.25m.
L = 14.5 m and D = 3.75 m
4.1.3. Absorber/Dehydrator
Data for calculating the size of the absorber is obtained from HYSYS.
Wl = 500 kg/h
Wv = 661194.72 kg/h
Density of v = 4.858kg/m3
Density of L = 1126 kg/m3
To calculate Flv

𝑊𝑊𝐿𝐿 𝜌𝜌𝑉𝑉
𝐹𝐹𝑙𝑙𝑙𝑙 = �
𝑊𝑊𝑉𝑉 𝜌𝜌𝐿𝐿
𝐹𝐹𝑙𝑙𝑙𝑙 = 4.967 x 10 -05 < 0.01
We assume we are using a 24 inch spacing between trays.
From the graph, value of capacity factor for flooding, Csb is 0.41
Now, calculate the value of K,
𝜎𝜎 0.2
𝐾𝐾 = 𝐶𝐶𝑠𝑠𝑠𝑠 � �
20
Value of surface tension = 49.76 dyne/cm
K = 0.491
𝜌𝜌𝑙𝑙 − 𝜌𝜌𝑣𝑣
𝑢𝑢𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 = 𝐾𝐾 �
𝜌𝜌𝑣𝑣
= 7.474 ft/s = 2.264 m/s
4 (𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟) × 𝑀𝑀𝑀𝑀𝑣𝑣

𝐷𝐷𝐷𝐷𝐷𝐷 = �
𝜋𝜋 𝜂𝜂 𝜌𝜌𝑉𝑉 (𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓)uflood × 3600
4 × 4.413 × 105
= �
3.142 × 0.9 × 6.150 × 0.9 × 5.46 × 3600
= 5.122 m
Round off D to the nearest 0.25m.
Diameter = 5.25 m
Area of the absorber , 𝐴𝐴 = 𝜋𝜋𝑟𝑟 2 =20.608 m2
Round off Area to the nearest 0.25m.
Area of the absorber = 20.75 m2
Calculating the height of the absorber by using the number of trays from HYSYS after
rounding it to a realistic number. The formula below is used to calculate the column
height.

Height = [(N − 1) + Top + Bottom] × Plate spacing
Top: usually ranges from 2 to 3 which is the space between the ceiling of the absorber and
most top tray. We will choose 2.
Bottom: usually ranges from 3 and 5 which is the space between the bottom of the
absorber and lowest tray. We will choose 3.
Plate spacing: Plate spacing is assumed to be 24 inch.
𝑯𝑯𝑯𝑯𝑯𝑯𝑯𝑯𝑯𝑯𝑯𝑯 = [(𝟏𝟏𝟏𝟏 − 𝟏𝟏) + 𝟐𝟐 + 𝟑𝟑] × 𝟐𝟐𝟐𝟐 = 𝟑𝟑𝟑𝟑𝟑𝟑 𝒊𝒊𝒊𝒊𝒊𝒊𝒊𝒊 = 𝟖𝟖. 𝟓𝟓𝟓𝟓𝟓𝟓𝟓𝟓 = 𝟖𝟖. 𝟕𝟕𝟕𝟕 𝒎𝒎
4.4 Heat exchanger
Q = UAΔTLMTD
All the data for the calculating the area of the heat exchanger is obtained from HYSYS.
Figure 28: Heat exchanger data

Figure 29: Heat exchanger data
Q = 220616892.22 kJ/h
Overall U = 34488.89 kJ/C.m2.h
ΔTLMTD = 106.04 oC
A = (220616892.22 kJ)/( 34488.89 × 106.04)

=60.318 m2
Area=60.50 m2
HE-100 HE-101
79769424
220616892.22
Q kJ/h
28578.01
OVER ALL U 34488.89
(kJ/C.m2.h)
46.27574
ΔTLMTDC 106.04
A m2 60.50 60.50
Figure 30: Heat Exchanger Data

4.7 Distillation columns
De-methanizer column
Mass flow rate of Distillate, D = 2.976 × 105 kg/h

External Reflux ratio L/D = 0.5
L/(3.661 × 105) = 0.5
L =148779.6 kg/h
V =L+D
= 148779.6 + 2.976 × 105
= 446338.8 kg/h
Density of v = 6.1629 kg/m3

Density of L = 393.995 kg/m3
To calculate Flv
𝑊𝑊𝐿𝐿 𝜌𝜌𝑉𝑉
𝐹𝐹𝑙𝑙𝑙𝑙 = �
𝑊𝑊𝑉𝑉 𝜌𝜌𝐿𝐿
𝐹𝐹𝑙𝑙𝑙𝑙 = 0.083
We assume we are using a 24 inch spacing between trays.
From the graph, value of capacity factor for flooding, Csb is 0.35
Now, calculate the value of K,
𝜎𝜎 0.2
𝐾𝐾 = 𝐶𝐶𝑠𝑠𝑠𝑠 � �
20
Value of surface tension = 8.861 dyne/cm
K = 0.297
𝜌𝜌𝑙𝑙 − 𝜌𝜌𝑣𝑣
𝑢𝑢𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 = 𝐾𝐾 �
𝜌𝜌𝑣𝑣
= 2.359 ft/s= 0.715 m/s
4 (𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓 𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟) × 𝑀𝑀𝑀𝑀𝑣𝑣

𝐷𝐷𝐷𝐷𝐷𝐷 = �
𝜋𝜋 𝜂𝜂 𝜌𝜌𝑉𝑉 (𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓)uflood × 3600
4 × 549150
= �
3.142 × 0.9 × 6.16298 × 0.9 × 0.715 × 3600
D = 6.651 m = 6.75 m (split into 2 columns of 3.375 m)

A= 34.738 m2 = 35 m2 (17.5 m each)
Height = [(N − 1) + Top + Bottom] × Plate spacing
𝑯𝑯𝑯𝑯𝑯𝑯𝑯𝑯𝑯𝑯𝑯𝑯 = [(𝟏𝟏𝟏𝟏 − 𝟏𝟏) + 𝟐𝟐 + 𝟑𝟑] × 𝟐𝟐𝟐𝟐 = 𝟒𝟒𝟒𝟒𝟒𝟒 𝒊𝒊𝒊𝒊𝒊𝒊𝒊𝒊 = 𝟏𝟏𝟏𝟏. 𝟓𝟓𝟓𝟓𝟓𝟓 = 𝟏𝟏𝟏𝟏. 𝟕𝟕𝟕𝟕 𝒎𝒎
De- De- De- De-

Distillation Column
Methaniser Ethaniser Propaniser Butaniser
Reflux Ratio 0.5 0.5 0.8 0.4

5 4 4
Mass Flowrate of Distillate (kg/hr) 2.975 × 10 9.511 × 10 6.704 × 10 3.725× 104
Mass Flowrate of Vapor, Wv (kg/hr) 446338.8 142667 120674 52148.4
Mass Flowrate of Liquid, Wl (kg/hr) 297559 47555.8 53633 14899.6
Properties of Vapor and Liquid
Density of vapor, pv (kg/m3) 6.1629 6.844 7.904 8.674

3
Density of liquid, pl (kg/m ) 393.995 508.4 540.4 558.2
Surface tension (dynes/cm) 8.861 11.54 11.05 10.55
Constants
Flv 0.083 0.077 0.0672 0.089
Capacity Factor, Csb 0.35 0.36 0.35 0.34
Factor K 0.297 0.322 0.3108 0.299
uflood (ft/s) 2.359 2.76 2.551 2.381
n (neta) 0.9 0.9 0.9 0.9
fraction, uflood 0.9 0.9 0.9 0.9
No of trays 15 23 30 12
Diameter of Column (m) 6.75 3.75 3.0 2.0

Area (m2)
35 8.75 7.0 3.0
Height (m)
11.75 16.5 20.75 10.0
Figure 31: Displays all the values of the sizes of each distillation column

Section 5
5. Costing
Based on our previous calculations data, we can use the data to determine the Bare
Module Cost (BMC). The real cost will be obtain by multiplying by a factor of 4. The cost
calculated will be in Australian Dollar (AUD$).
5.1 Separator
5.1.1 Three Phase Separator
For a horizontal Three Phase separator .
Volume of separator ( m3 ) is calculated to be 266.867 m3.
The Bare Module Cost (BMC) comes up as:
= 210,000 + ((V-10)^1.1)*1200
= 746859.1889 x 4
= 2987436.756 $
5.1.2 Two Phase Separator

For a Vertical Two Phase Separator .
Volume of separator is calculated to be 145.567 m3
Calculating , Bare Module Cost (BMC)
= 210,000 + ((V-10)^1.1)*1200
= 475797.3399 x 4
= 1903189.359 $

5.2 Distillation Columns
5.2.1 De-methanizer
Calculated diameter of column (D) in meter = 6.75 m
Number of trays (N) = 15
Bare Module Cost (BMC) comes up as:
= 400,000+ ((N)^1.2)*24,000+((D)^2)*(3.1416/4)*(N+5)*0.5*0.05*180,000
= 4239388.769 x 4
= 16957555.08 $
5.2.2 De-ethanizer
Diameter of column (D) in meter = 3.75 m
Bare Module Cost (BMC) is:
= 400,000+ ((N)^1.2)*24,000+((D)^2)*(3.1416/4)*(N+5)*0.5*0.05*180,000
= 2825069.144 x 4
= 11300276.58 $
5.2.3 De-propanizer
Diameter of column (D) in meter =3.0 m
Calculating, Bare Module Cost (BMC) ,
= 400,000+ ((N)^1.2)*24,000+((D)^2)*(3.1416/4)*(N+5)*0.5*0.05*180,000
= 2934836.85 x 4
= 11739347.4 $
5.2.4 De-butanizer
Calculated diameter of column (D) in meter = 2.0 m
Bare Module Cost (BMC):
= 400,000+ ((N)^1.2)*24,000+((D)^2)*(3.1416/4)*(N+5)*0.5*0.05*180,000

= 1113732.927 x 4
= 4454931.708 $
5.3 Absorber
Diameter of column (D) in meter =5.25m
Bare Module Cost (BMC):
= 400,000+ ((N)^1.2)*24,000+((D)^2)*(3.1416/4)*(N+5)*0.5*0.05*180,000
= 2241586.522 x 4
= 8966346.09 $
5.4 Heat Exchangers

For calculating cost of heat exchangers, the following formula would be used:
A = Area of Heat Exchanger (m2)
For A>50 m2
BMC (Australian dollars) = (A^0.9)*5,000 + 80,000
• First Heat Exchanger (HE-100)

Heat Exchanger Area, A = 60.50 m2 > 50 m2
Therefore, Bare Module Cost (BMC)
= (A^0.9)*5,000 + 80,000
= 280701.141 x 4
= 1122804.564 $
• Second Heat Exchangers (HE-101)

Heat Exchanger Area, A = 60.50 m2 > 50 m2
Therefore, Bare Module Cost (BMC)
= (A^0.9)*5,000 + 80,000
= 280701.141 x 4
= 1122804.564

6.1 ECONOMIC ANALYSIS

For designing a Gas Oil Separation Plant (GOSP), the most important things we need to
consider are economics. Like any other project, a GOSP needs to be economically feasible.
Now that we have done sizing and determined the cost of equipment’s, we would jump
into economic analysis to find whether our project is economically viable or not? To help
us answer this question, we would use economic indicators, namely, Net Present Value
(NPV), Internal rate of return (IRR) and Payback period, to reduce the Net cash flow into a
single number representative of the economic viability of the project. In doing this, the
following process would be followed:
Capital Operating Gross

Fiscal Regime Assumptions
Expenditure Expenditure Revenue
Net Cash Flow
Net Present Internal rate Payback

Value of returm period
Is the project
No
Revisit inputs or
economically
viable? abandon
Yes
Move into
Move into
production phase
production phase

6.2 Capital expenditure (CAPEX)

Capital expenditure or CAPEX is the cost of funds used for financing a business or can also
be defined as fixed, one-time expenses that are used on the purchase of land, buildings,
construction, equipment etc. Put simply, it is a one-off cost needed to bring any project
into a position where profit can be generated.
Furthermore, we are using formula given to estimate each equipment and components
used in designing the GOSP since Cap Cost software is not available. The bare module
costs obtained from the calculation was then multiplied by a factor of 4 to take into
account transportation, installation charges on the equipment.
We are dividing the CAPEX into cost of GOSP equipment and other facilities.
Table below exhibits the approximate cost needed to set up the plant with assumption
that the spending of the total CAPEX is done in year 1 of the project.
Vessels Cost (Australian Dollars, $) x factor 4

3 Phase Separator 2987436.75
2 Phase Separator 1903189.35
Heat Exchanger 1 1122804.56
Heat Exchanger 2 1122804.56
Absorber 8966346.09
Glycol Pump Approx. 1000
De-methanizer Column 16957555.08

De-ethanizer Column 11300276.58
De-propanizer Column 11739347.40
De-buthanizer Column 4454931.70
Reboilers (Four Distillation Columns) 15133511.67

Condensers (Four Distillation Columns) 9641434.85
Total (AUD$) 85329638.59
Cost of plant main equipment calculated using the formula defined in Costing section
For second part of CAPEX, assumptions of additional CAPEX are required in order to set up
the GOSP and other facilities. The table below illustrates the cost of additional CAPEX
needed. The following assumptions are used in calculating this:
1) Cost of land in Australia is – AUD$ 40 / m2.
2) Land area of the plant is 169 hectares.
3) Other equipment such as mixers and valves are assumed to be 50% of the
total equipment cost.
4) Cost of infrastructure (roads, house for workers, recreation areas, safety
equipment’s, and security) is assumed.
5) Cost of building is assumed.
6) Miscellaneous expenses such as company vehicles, laundry, food,
households and furniture are all assumed.

Additional capital cost Cost (AUD$)

Land 10000000.00
Pipelines, mixers and valves 42664819
Infrastructure cost 6000000.00
Buildings 5000000.00
Miscellaneous 8000000.00*
Total (AUD$) 65464819.00
Table 14: Additional CAPEX needed
CAPEX
Land
Pipelines, mixers, valves
Infrastructure
Buildings
Miscellaneous
GOSP equipment
Figure 32: Pie chart for CAPEX expenses
* This includes lum sum cost for desalting and sweetening unit.
Therefore, we can conclude that total CAPEX
= AUD$ Main Plan/GOSP Equipment + AUD$ Additional expenses
= 85329638.59 + 65464819.00
= 150794457.59 $

6.3. Operating Cost (OPEX):

OPEX is the short form of operating expenditure. They are the cost of resources used by an
organization to maintain its operations, hence, the name operating expenditure. OPEX and
CAPEX are differentiated by the fact that OPEX are periodic costs. The period is usually
the same over which the economic analysis is performed. In this project, we will use OPEX
period of a year. Moreover, these costs do not incur until production is underway. In this
project, OPEX will consist of:
• Labour costs
• Utilities (electricity, steam, coolant etc.)
• Chemicals
• Maintenance
• Insurance
6.3.1. Cost of Labour:

Cost of Labour here includes the wages paid to employees as well as the cost of employee
benefits. Moreover, in order to determine a reasonable labour cost, we have divided the
labour into different categories, such as operators, technicians, engineers, security staff
etc. Moreover, we have assumed a shift of 8 hours and as such a total of 3 shifts in a day
are available. The calculations in the table below are based on guidelines provided from
Ulrich, G. D., A Guide to Chemical Engineering Process Design and Economics, Wiley, New
York, 1984.
Equipment Operators per No of equipment Total operators per

equipment per shift shift per equipment
3 phase separator 0 1 0
2 phase separator 0 1 0
Valve 0 1 0
Absorber 0.35 1 0.35
Heat exchanger 0.1 2 0.2
De-methaniser 0.35 1 0.35
De-ethaniser 0.35 1 0.35
De-propaniser 0.35 1 0.35
De-butaniser 0.35 1 0.35
Mixer 0 1 0
Total 1.95
Total number of operators per equipment per shift
Since there are 3 shifts in a day of 8 hours each, the total numbers of operators come up
as 5.85. Rounding of this figure gives us a total of 6 operators. This is shown in the table
below including that for other personnel’s.

S.No Personnel No of No of Total rounded Salary Total salary

type personnel shifts to the next per ($/year)
whole number personnel
($/year)
1 Operators 1.95 3 6 80,000 480,000
2 Technicians 2 3 6 40,000 240,000
3 Engineers 4 1 4 72,000 288,000
4 Manager 1 1 1 96,000 96,000
5 Admin 3 1 3 30,000 90,000
6 Security 2 3 6 24,000 144,000
7 H.S.E 1 2 2 100,000 200,000
Supervisor
8 QA/QC 1 2 2 110,000 220,000
Supervisor
Total 1758000
Manpower Costing
6.3.2. Cost of Electricity

The duty of the equipment corresponds to the power requirement for the particular
equipment. The table below gives a summary of the duty required for the various
equipment used in the GOSP:
Equipment Duty (KJ/hr)

De-methaniser (condenser) 2.115E+8
De-methaniser (reboiler) 2.116E+8
De-ethaniser (condenser) 6.417E+7
De-ethaniser (reboiler) 8.085E+7
De-propaniser (condenser) 4.688E+7
De-propaniser (reboiler) 5.8497E+7
De-butaniser (condenser) 1.835E+7
De-butaniser (reboiler) 3.862E+7
Total 7.30E+08
Duty of equipment used in HYSYS
In calculating the total cost of electricity, electricity cost of $3.17/GJ is assumed.
Duty (GJ/hr) Cost of unit of GJ Cost of electricity Annual cost of

($/GJ) per hour ($/hr) electricity ($)
730 3.14 2292.2 20079672
Total cost of electricity

6.3.3. Maintenance and Insurance

In calculation of maintenance and insurance cost, the following assumptions are used:
1. Maintenance cost will be calculated as 10% of the bare module cost of

infrastructure
2. Insurance is assumed to be $ 1,000,000
Type of cost Bare Module Cost Percentage of Bare Effective cost
module cost
Maintenance 113632038.2 10% 11363203.82
Insurance 1000000
Maintenance and Insurance Cost
6.3.4. Materials Supply

The absorber in the GOSP uses glycol stream for removal of water from gas stream. This
stream is recycled back into the absorber through a stripper. However, we change
recycled glycol after three months. This is done so that a good level of separation
efficiency is maintained by the absorber. The following assumptions are used:
1. Volume of glycol bought is the volume used in one hour

2. A new mass of glycol is purchased every 3 months
3. Cost of glycol is assumed to be $1.2/kg
Component Flow Rate Cost($/kg) Cost of Glycol Cost per year

(kg/hr) ($) ($/year)
Glycol 600 1.2 720 2160
Cost of Glycol per year
The following table shows the cost of steam required for the re-boilers of the four
distillation columns. Since this is a recurring cost, we have included in the OPEX.
Description Total Flow rate of Unit Price ($/1000 Total Cost ($)
steam (kg/hr) kg)
Steam for the four 2.12E+05 4.400 8171328
distillation columns
Cost of steam per year
The condensers for the four distillation columns need coolant to reduce the temperature
of the incoming streams. In calculation of the amount of coolant required, we use duties
and heat of vaporization of the particular coolant to give us an estimate of cost. These
raw materials are purchased annually

Cooling units De-methaniser De-ethaniser De-propanizer De-butaniser

Refrigerants Nitrogen Nitrogen Nitrogen Water
Duties (KJ/hr) 2.620E+8 7.930E+7 5.746E+7 2.197E+7
Heat of 199 199 199 2257
vaporization
Mass flow rate 1.32E+06 3.98E+5 2.89E+05 9.73E+3
(kg/hr)
Amount of refrigerants required
Refrigerant Amount (Kg) Price ($/Kg) Cost ($/year)

Water 9.73E+3 0.0053 51.569
Nitorgen 2.01E+06 0.5 1003500
Total cost 1003552
Cost of coolants
6.3.5. Total Operating Costs

The table below summarises the total operating costs of the project:
Component Cost ($/year)

Labour 1758000.00
Electricity 20079672.00
Maintenance and Insurance 12363203.82
Cost of Glycol 1800.00
Cost of Steam 8171328.00
Cost of coolants 1003552.00
Total OPEX 43377555.82
Breakdown of Operating Costs

OPEX
Labour
Electricity
Maintenance and Insurance
Cost of Glycol
Cost of Steam
Cost of coolants
Pie Chart for OPEX expenses
6.4. Gross Revenue

The product of production per year and the price of product stream will give the gross
revenue. The production rate of streams which are determined from HYSYS will give us the
gross revenue of crude oil and distillate streams. Furthermore, there are several
assumptions that need to be made.
These are:
1) Price of crude oil is fixed (AUD$ 61/bbl) while for natural gas:
C1= AUD$ 1/bbl
C2= AUD$ 5/bbl
C3= AUD$ 10.5/bbl
C4= AUD$ 30.11/bbl
2) Plant runs for 365 days in a year

3) Company takes a 1% of revenue as the processing fee as we are assuming the
company to be a service provider
4) The prices are product stream are taken as an average of the Fiscal year 2015-2016

Type Price ($/bbl) Production Production Yearly Sale

(bbl/day) (bbl/year) ($)
Wellhead fluid 0.00 1208549.40 441120531.00 0.00
Stream
C1 1.00 66301369.86 24240000000.00 2.42E+10
C2 5.00 40219.17 14680000.00 73400000.00
C3 10.50 20120.54 7344000.00 77112000.00
C4 30.11 9665.75 3528000.00 106228080.0
0
Oil 61.00 747000.00 273000000.00 1.67E+10
Total Production 68326924.72 24538552000.00
41149740080.0 41149.74 $MM
Total revenue/year
0
Revenue (1%) 411497400.80 411.50 $MM
Calculation of gross revenue
6.5. Fiscal Regime

GOSP is located in Australia. As such, the Australian fiscal regime will be applied.
Australian fiscal regime for petroleum products includes an income tax of 30% and a
Petroleum Resource Rent Tax (PRRT) of 40%. We are assuming here that the company is
already paying PRRT and income. Moreover, any indirect or other taxes are assumed to be
ignored. The schematic below gives the structure of the Fiscal Regime applied for
calculation of taxes:
Gross Revenue
less
PRRT (Gross revenue – Depreciation of

Capex+Opex)*40%
less
Income tax (Gross revenue – Depreciation of

Capex+Opex – PRRT)*30%
less
Depreciation of Capex + OPEX
equals
After tax Net Cash Flow
Schematic of Fiscal Regime used

6.6. Assumptions
Before going into deriving the Net Cash Flow, it is important that we define certain
assumptions to be used. The assumptions are listed as shown below:
1) The GOSP is expected to run for 20 years and is located offshore Australia.
2) Inflation rate is 4% and discount rate is 10%.
3) Capital cost is spent in the first year.
4) Straight line depreciation method of 20% is applied from production start.
5) Production from the well declines at 5% per annum.
6) The plant is running for 365 days in a year
7) Income tax rate is 30%
8) Petroleum Resource Rent Tax rate is 40%
6.7. Economic indicators

In this case study (design project), the interest is the net present value (NPV), Internal
rate of return (IRR) and payback period for our GOSP. This is important as to measure of
how much more the investors gain in putting money into this project as compare to invest
into the bank or some other investment and how long before the cost of developing the
project can be returned. These economic indicators thus reduce net cash flows into a
single number indicative of the economic prospects of the project. The spreadsheet on the
next page gives a measure of the calculations involved in getting the net cash flow and
then using the after tax net cash flow to calculate values for the economic indicators.

Units 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Withdrawal Rate MMbbl/year 0.00 441.12 419.06 398.11 378.21 359.29 341.33 324.26 308.05 292.65 278.02 264.11 250.91 238.36 226.45 215.12 204.37 194.15 184.44 175.22
Revenue (Inflated) $MM/year 0.00 411.50 406.56 401.68 396.86 392.10 387.40 382.75 378.15 373.62 369.13 364.70 360.33 356.00 351.73 347.51 343.34 339.22 335.15 331.13
Tax
Inflation Factor 1.00 0.96 0.92 0.89 0.85 0.82 0.79 0.76 0.73 0.70 0.68 0.65 0.62 0.60 0.58 0.56 0.53 0.51 0.49 0.47
New Gross with Inflation $MM/year 0.00 411.50 406.56 401.68 396.86 392.10 387.40 382.75 378.15 373.62 369.13 364.70 360.33 356.00 351.73 347.51 343.34 339.22 335.15 331.13
Depreciation $MM/year 0.00 30.16 30.16 30.16 30.16 30.16
OPEX (Inflated) $MM/year 0.00 43.38 45.11 46.92 48.79 50.75 52.78 54.89 57.08 59.37 61.74 64.21 66.78 69.45 72.23 75.12 78.12 81.25 84.50 87.87
CAPEX $MM/year 150.79
Total Expense 150.79 73.54 75.27 77.08 78.95 80.90 52.78 54.89 57.08 59.37 61.74 64.21 66.78 69.45 72.23 75.12 78.12 81.25 84.50 87.87
Taxable Income (BTNCF) $MM/year 0.00 337.96 331.29 324.61 317.91 311.20 334.62 327.86 321.07 314.25 307.39 300.49 293.55 286.55 279.50 272.39 265.22 257.97 250.65 243.25
PRRT $MM/year 0.00 135.19 132.52 129.84 127.16 124.48 133.85 131.14 128.43 125.70 122.96 120.20 117.42 114.62 111.80 108.96 106.09 103.19 100.26 97.30
income tax $MM/year 0.00 60.83 59.63 58.43 57.22 56.02 60.23 59.01 57.79 56.57 55.33 54.09 52.84 51.58 50.31 49.03 47.74 46.44 45.12 43.79
Total tax $MM/year 0.00 196.02 192.15 188.27 184.39 180.49 194.08 190.16 186.22 182.27 178.29 174.29 170.26 166.20 162.11 157.99 153.83 149.63 145.38 141.09
NPV
New Gross with Inflation $MM/year 0.00 411.50 406.6 401.7 396.9 392.1 387.4 382.7 378.2 373.6 369.1 364.7 360.3 356.0 351.7 347.5 343.3 339.2 335.1 331.1
CAPEX $MM/year 150.79
OPEX $MM/year 0.00 43.38 45.11 46.92 48.79 50.75 52.78 54.89 57.08 59.37 61.74 64.21 66.78 69.45 72.23 75.12 78.12 81.25 84.50 87.87
Total tax $MM/year 0.00 200.33 196.46 192.58 188.70 184.80 194.08 190.16 186.22 182.27 178.29 174.29 170.26 166.20 162.11 157.99 153.83 149.63 145.38 141.09
Total Deductions $MM/year 150.79 243.71 241.57 239.50 237.49 235.55 246.86 245.05 243.30 241.63 240.03 238.50 237.04 235.65 234.34 233.10 231.95 230.87 229.87 228.96
After Tax Net Cash Flow (ATNCF) $MM/year -150.79 167.79 164.99 162.18 159.37 156.55 140.54 137.70 134.85 131.99 129.10 126.21 123.29 120.35 117.39 114.41 111.39 108.35 105.27 102.17
Escalated After Tax Net Cash Flow $MM/year -150.79 161.34 152.54 144.18 136.23 128.67 111.07 104.64 98.53 92.73 87.22 81.98 77.01 72.28 67.79 63.53 59.47 55.62 51.97 48.49
NPV ($MM) $715.47
IRR 101%
Payback Period Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
ATNCF -150.79 161.34 152.54 144.18 136.23 128.67 111.07 104.64 98.53 92.73 87.22 81.98 77.01 72.28 67.79 63.53 59.47 55.62 51.97 48.49
Cumalative ATNCF -150.79 10.54 163.09 307.27 443.50 572.17 683.24 787.88 886.42 979.15 1066.37 1148.35 1225.36 1297.64 1365.43 1428.95 1488.43 1544.05 1596.02 1644.51
1.93461014 Years
Payback Period 1.93 Years

6.7.1. Net Present Value

The Net Present Value (NPV) is an indicator as to how an investment will compare to an
investment elsewhere, say in a bank or on the stock market. A positive NPV means that
the investment is preferable compared to investing into the bank at a particular interest
rate. The value of NPV will correspond to the extra amount of money needed to put into
the alternate investment to achieve the same cash flow.
Assumptions
1. The discount rate is set at 10%
The calculated NPV is $715.47 MM. This means that in order to generate the same net cash
flow as the project, we would need to deposit an extra $715.47 MM into an alternate
investment with an interest rate of 10%. In other words, our project is $715.47MM more
profitable than alternate investment. This indicates that the project is viable and should
thus be undertaken.
6.7.2. Internal rate of return

In order to find out the internal rate of return, let us draw a graph of NPV versus discount
rate. Internal rate of return is simply the discount rate at which NPV becomes zero. In
other words, internal rate of return can be called as breakeven discount rate.
NPV vs Discount rate

$1,800.00
$1,600.00
$1,400.00 IRR=101%
$1,200.00
$1,000.00
NPV
$800.00
$600.00
$400.00
$200.00
$0.00
($200.00) 0 20 40 60 80 100 120 140 160
Discount Rate
Graph of NPV versus discount rate
From the above graph it can be seen that NPV becomes zero at a discount rate of
101%.i.e. internal rate of return. Since this number is higher than discount rate of bank,
project is economically profitable. It is important to note here that IRR gives only no
comparison with alternate investment and is only indicative of speed of return. The
exceptionally high IRR for the project is attributable to the fact that abandonment costs
are ignored. These costs can make up-to half of the project revenue and if included will
result in a realistic IRR. Moreover, the effect of risk and uncertainty is ignored in this
analysis. This is also attributable to the unrealistic IRR.

6.7.3. Payback Period
The payback period is the time taken for the project’s net cash flow to recoup the initial
capital expenditure. Therefore, a project with high net cash flow will have a short
payback period. The project that we have simulated has a relatively large net cash flow
when compared to the OPEX and CAPEX of the project. Moreover, abandonment costs and
uncertainty are ignored. Hence a short payback period is to be expected.
Payback calculation
Year 1 2 3 4
ATNCF -150.79 161.34 152.54 144.18
Cumalative ATNCF -150.79 10.54 163.09 307.27
The Payback Period is determined by the following formula
150.79
1+ = 1.93 𝑦𝑦𝑦𝑦𝑦𝑦𝑦𝑦𝑦𝑦
161.34
This means that the initial capital expenditure will be recovered in a period of 1.93 years
The three economic indicators above tell us that the project is economically viable and
should be considered for development. However, it is important to note here that
abandonment costs and uncertainty are ignored in the analysis. For a more detailed
analysis, we should be including abandonment costs and find the analysis at different
levels of probability such as P10, P50 and P90. However, as initial screening criteria, the
project is profitable and should be considered for further development.

7. Conclusion
GOSP is essential in order to bring crude oil to sellable configurations. In this report, basic
unit operations and equipment used in GOSP are described and block diagrams of the plant
were presented. The objective of this report was to ensure that crude oil leaving the
facility has Reid Vapour Pressure less than 5 psi, water content below 0.3% by vol and Salt
content less than 20 PTB and hydrogen sulphide below 70 ppm.
Based on the problem statement provided, a GOSP and Gas plant were designed and mass
balance calculations were carried out on each unit based on engineering assumptions.
The accuracy of the calculated values is debateable since they are based on assumptions.
In the second part of the project, the design presented was simulated in HYSYS, where
thermodynamics were taken into account totally.
Moreover, economic analysis of the field and design was carried out to determine whether
the design is economically feasible.
It is concluded that the project is economically viable and should be considered for
development. However, it is important to note here that abandonment costs and
uncertainty are ignored in the analysis. For a more detailed analysis, we should be
including abandonment costs and find the analysis at different levels of probability such as
P10, P50 and P90. However, as initial screening criteria, the project is profitable and
should be considered for further development.

8. References
[1] http://petrowiki.org/Oil_and_gas_separators
[2] Ken Arnold, M. S. (1998). Surface Production Operations: Design of Oil-Handling

Systems and Facilities.
[3] Manning, F. a. (1995). Oil Field Processing. Tulsa, OK: Pennwell Publishing Company.
[4] Powers, C. M. (1990). Prediction of Separator Performance Under. SPE Annual

Technical Conference and Exhibition .
[5] Saeid, M. J. (2006). In M. J. Saeid, Handbook of Natural Gas Transmission and

Processing. Elsevier Science.
[6] Talavera, P. (1990). "Selecting gas-liquid separators," Hydrocarbon.
[7] PTRL 5005 Course notes
[8] http://www.glossary.oilfield.slb.com/en/Terms/h/header.aspx
[9] ABB manual – Oil and Gas Production Handbook
[10] http://nptel.ac.in/courses/103103032/11
[11]http://www.glossary.oilfield.slb.com/en/Terms/t/two_phase_separator.aspx
[12] https://en.wikipedia.org/wiki/Flash_evaporation
[13] https://en.wikipedia.org/wiki/API_oil-water_separator
[14]http://www.cherd.ichemejournals.com/cms/attachment/2020816020/2040974875/gr
1.jpg
[15]http://en.citizendium.org/wiki/Crude_oil_desalter
[16]http://www.csgnetwork.com/h2odenscalc.html
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Design of Gas Oil Separation Plant using HYSYS

Technical Report · October 2016

Muhammad Fahad Dubas

Predicting Sand Production in Reservoirs View project

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DESIGN OF GAS OIL SEPERATION PLANT

Muhammad Fahad (z5040758)

Usman Saleem (z5025267)

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University of New South Wales

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2.1.11. De-Methanizer: ............................................................................................................. 39

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5.2.4 De-butanizer ..................................................................................................................... 72

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Figure 1: Three Phase Separator ..................................................................................................... 12

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Table: Feed Data

Product Mass Flow Rate (kg/day)

Input Feed 16357342.66

Table: Final Products from mass balance calculations

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Feed Pressure (kPa) 750

Mass Flow rate( bbl /day) 1215000

Associated Gas (wt %) 7.45

Water Cut (%) 24.65

Viscosity @ 100oF 5.1 cp

Table: Feed properties enter into HYSYS

Product Mass Flow Rate (kg/hr)

Input Feed 6874000

Table: Final products in simulation

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1.2. Problem Statement

Feed (crude oil + water + gas) 1215000 bbl/day

Specific gravity 0.854

Table 2: Crude Oil Characteristics

Components Composition (mass %)

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1.3. Processes and Equipment’s involved in a GOSP

1.3.1. Three Phase Separator:

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Figure 1: Three Phase Separator

An overview of the working principle of the three phase separator is as follows:

Free gas then flows through a mist extractor that helps in

Liquid continues to settle by gravity with the oil separating from

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University of New South Wales

Disadvatnges Advantages: Advantages Disadvantages

Lower area of Large area of

Better solid High liquid

1.3.2. Heat Exchanger:

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1.3.3. Two Phase Separator:

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Figure 4: Two Phase Separator

1.3.4. Water Oil Separator

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Figure 5: Schematic of the water oil separator

1. Transferring wet crude with substantial amount of water in un-economical.