Production Chemistry in the Oil and Gas Industry

Getting production chemistry

right in the project phase of
an oil and gas development
is the single best thing you
can do to ensure you get
asked to work on the next
project!

Introduction
Oil and gas projects are some of the most technically complex engineering
challenges undertaken in modern history and yet despite the intense focus on
delivering such projects, many have not delivered the expected return on investment.

An EY report on major projects published in 2014 highlighted 64% facing cost

overruns and 73% with schedule delays, (ref: EY Spotlight on Oil and Gas Mega-
Projects). Similarly, a report published by the OGA identified that only 25% of UKCS
projects in the period 2011 to 2017 were delivered on time, though this has since
improved to 60% of projects delivered on time in 2018, along with far greater cost
control, (ref: OGA 2018 UKCS Projects Insights Report).

Stepping forward from the previous article, this article highlights the areas where
production chemistry is required to integrate into the overall engineering design and
furthermore identifies some examples of the pitfalls and consequences of not doing
so.

Production Chemistry Responsibilities

Given the breadth of production chemistry challenges that present themselves

throughout the hydrocarbon delivery process, production chemists often have one of
the most challenging and diversified roles throughout the lifecycle of a project.

Project production chemists are often assigned as “system owners” and provide the
functional specification of assigned packages. Working closely with various
disciplines, including reservoir, process, pipeline and flow assurance disciplines,
production chemists need the competence and technical authority to confirm the
technical requirements and the personal authority and interpersonal skills to ensure
their recommendations are understood and delivered correctly. This is especially
pertinent given the modular approach to project construction and geographical
remoteness, eg: topsides fabrication in SE Asia.

 Furthermore, with onshore and offshore commissioning a critical part of the project
phase, additional expertise and knowledge is required to develop key programs and
procedures with relevant vendors and contractors. Onsite supervision in the yard or
offshore is essential to ensure that work is executed correctly.

The following table offers an overview of the role of the production chemist along
with key objectives during the project execution stages of a development, including
some of the interfaces with other engineering disciplines.

System Role of the Produc on Chemist Key Objec ves and Opera onal Impact

Provides assurance of hydrocarbon quality from

Selects chemicals and ensures
near wellbore to export and furthermore the
Chemical Selec on chemical compa bility with
integrity of materials throughout the process; eg:
produced uids and materials.
elastomeric seals within equipment.

Iden es the correct injec on

Ensures e ec ve chemical treatment achieved
Chemical Injec on loca on for e ec ve process
with no side-e ects; eg: H2S scavenger scaling.
treatment.

Ensures that representa ve uid samples are

Establishes the onshore / o shore
taken as an integral part of facility surveillance
Gas & Fluid Sampling sampling philosophy to be agreed
and o en licence to operate, scal & contractual
with opera ons.
requirements.

Prepares and submits chemical Ensures regulatory compliant opera ons,

Environmental Compliance applica on permit including facility including environmental repor ng and
discharges & emissions permits. improvement plans.

Ensures hydrocarbon export speci ca ons and

Implement plan for on/o ine
facility environmental discharges are met
On Site Analysis analysis and veri ca on of gas and
including processes and procedures to agree
uid composi ons
dispensa ons.

Works with corrosion engineering

Provides a consolidated process of corrosion
Corrosion Management discipline to iden fy asset integrity
mi ga on, monitoring, inspec on and repor ng.
needs

Supports opera ons to establish chemical lay-

Establishes chemical supply and down area and storage area, crane and li ing
Logis cs requirements.
onshore analysis support contracts
Fit-for-purpose ( scal) sample containers.

Ensures compliance with HAZMAT Regula ons;

Supports the prepara on of HAZ
minimise personnel exposure to hazardous
material management processes,
HAZ Material Management materials and chemicals, including the
emergency response procedures
development policies, processes and procedures,
and equipment.
eg: dedicated coupling program.

Establishes policies, procedures and Supports process op misa on, eg: chemical
prac ces for the monitoring and residuals for treatment e cacy and provides uid
Data Colla on and Repor ng
repor ng of opera onal data for composi onal data for scal and technical
internal and external stakeholders. repor ng.
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 Avoiding Project Pitfalls

Production chemistry pitfalls can occur at various stages throughout the lifecycle of a
development. Compromises made during project execution often have enduring
consequences on the overall value of a project. Risks may be realised during the
early stages of operations or equally during late life as reservoir fluids and
composition continue to change. The following points illustrate some of the pitfalls
which may be embedded at the various stages of a project. The anecdotes provided
are genuine though anonymised.

• Concept Select and FEED: Key decisions made during concept select and front
end engineering design can have a significant bearing on production efficiency,
operating costs and overall operability. Cost benefit analysis is often undertaken to
broker decisions using limited information and assumptions.

(i) Failure to identify a suitable wax inhibitor along with limited oil assay analysis
and flow assurance leading to rapid waxing and subsequent blockage of an
infield pipeline during early operations.

(ii) Failure to install suitable water capillary string within the umbilical design and
production string limiting the ability to mitigate salt / halite build up within the
wellbore, resulting in costly well interventions to re-establish gas production.

• Detailed Design: The correct location, orientation and design of chemical injection
points is essential to achieve effective and efficient treatment. This is particularly
true in gas handling systems where the addition of liquid chemicals such as H2S
scavenger has production-impacting consequences. Get this wrong and you not
only fail to meet a gas export specification but this may also result in additional
problems elsewhere in the facility.

(iii) Downstream scaling from unspent H2S scavenger within produced water
treatment facilities, due to poorly located and configured chemical injection
points.

(iv) Splitting of flow downstream of an injection point along with poor piping
design resulting in variable performance due to heterogeneous chemical
distribution and treatment, eg: coagulant application upstream of filter
vessels.

• Vendor Packages: Given stringent environmental regulations applied to offshore

chemicals, the selection and justification of chemicals is often rigorous, time
consuming and expensive. Careful attention to the compatibility of materials of
construction with selected chemicals in both topsides and subsea applications and
integration with other engineering disciplines involved is required. This also
requires full engagement with contractor package engineers and equipment
vendors.

 (v) Disruptive change and full re-work of the hydrocarbon-based chemical

portfolio due to a late deviation from the specified non-metallic / elastomeric
seals within subsea facilities.

• Hook-up and Commissioning: Production chemistry input during the hook-up

and commissioning phases of a development remains essential to ensure that the
original design intent is preserved through to operations. Production chemistry
input into commissioning procedures is also required, for example to ensure that
properly filtered and treated water is introduced into the process plant and
pipelines for subsequent strength and / or leak testing purposes.

(vi) With no isometric drawings available, the unsanctioned relocation of

calibration pots resulting in the inability to calibrate the chemical injection
pumps when the chemical storage tank content dropped below 65% of
working volume leading to poor chemical and corrosion management.

(vii) Failure to commission biocide facilities for water injection ahead of first oil
leading to premature souring of the reservoir with significant operational
implications. The biocide facilities were not considered critical for first oil.

(viii) Failure to manage dehydration facilities and monitor gas export quality on an
offshore facility leading to increased water content within the export pipeline
and subsequent hydrate formation and full bore plug.

(ix) Poor control over water / contaminants entering an oil pipeline export system
leading to premature corrosion at the hot end of the pipeline and furthermore
a detrimental impact on water treatment facilities at the (downstream)
pipeline reception facilities.

Production Chemistry Project Valu

Delivering a project to a budget and schedule necessitates the empowerment of

system integrators who understand not only their specialist disciplines, but also the
need and criticality of interplay with others. Production chemists are no exception
and are often deemed “the voice of the fluids”.

Authoritative production chemistry makes no false promises and, on behalf of

operations, accepts no compromises. This may incur difficult decisions as a project
seeks to balance initial capital investment versus long term operational costs.
However, with an eye for detail, consistency and a willingness to put boots on the
ground, this is increasingly appreciated as the project progresses into operations.

It is also worth noting that often the Production Chemist is one of the few disciplines
that on completion of the project role, migrates to operations support. With that
ongoing responsibility, the advice is, better do it right in the project than live with a
lifetime of pain in operations.

 Future Production Chemistry Conten

Continuing our short summary series, future articles will be on the following:

• Production Optimisation: efficient operations & produced water management

• Asset Life Extension: IOR/EOR options and infrastructure integrity

• Decommissioning: well abandonment and hazardous waste management

James Johnstone is a Chartered Scien st, recognised Produc on Chemistry Technical Authority and
a cer ed Lead Auditor in Asset Management. With 30 years diverse experience from Field
Chemist to Senior Consultant, he delivers services of produc on enhancement, infrastructure
integrity, and ow assurance globally to operators of both conven onal and unconven onal
assets.
In addi on, he has led a number of high-value contract delivery teams including a successful track-
record in contract recovery and reten on, enhancing value to both company and client.
Recognised as a subject ma er expert by the Society Petroleum Engineers (SPE), he sits on Global
HSE & Sustainability and Water Handling Technical Commi ees and the Governing Awards
Standing Subcommi ee.
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