SESSION 1: OIL AND GAS PROCESS

DESIGN FUNDAMENTALS
 LEARNING OBJECTIVES & GOALS
The objective of this course module is as follows;
• To expose the participants to the basic disciplines involved in a typical oil and
gas project
• To help participants become conversant with the different oil and gas design
project phases
• To help participants become conversant with the different codes, standards and
regulations in the oil and gas industry
• To expose the participants to the different process deliverables and software.
 Disciplines in an Oil & Gas Project
Design of Oil and Gas facilities is a team work and as such, “No man is an
island unto himself”. It takes the perfect synergy of different groups of
professionals to successfully actualize a design project.
Typical groups in an Oil and Gas design setting are:
• Process Engineering***
• Piping Engineering
• Mechanical Engineering
• Civil/ Structural Engineering
• Pipeline Flow Assurance Engineering
• Safety Engineering
• Instrumentation/Control Engineering
• Project Management
• Project Control
• QA/QC
• DCC
Disciplines in an Oil & Gas Project
 Oil and Gas Project Phases
The major Project phases are:
• Feasibility / Conceptual Studies
• Pre - Front End Engineering Design (Pre- FEED)
• Front End Engineering Design
• Detailed Engineering Design
• Procurement
• Construction and Installation
It is possible for an overlap to occur between the different Project execution phases.
i.e. some elements of Conceptual Design might be carried out in a FEED and vice-
versa. In the same token, some activities in FEED might be shifted into detailed
Engineering. This interfacing is due largely to the fact that the activities to be carried
out at each phase of the project is, more often than not, decided by the operators as
documented in there SCOPE OF WORK (SOW).
It might just suite them to include some design activities that had been left out in a
previous oil and gas design phase into the next phase for completeness.
Flow Charts of Oil & Gas Design Project Phases
This schematic Diagram shows the sequence of occurrence of the different stages of
design identified below.
Oil and Gas Project Phases
 Oil and Gas Project Phases
EPCI and EPCOM Projects
The extent to which these services are required by an owner is determined by his
desires to control cost, schedule and quality, as well as his in-house capabilities and
resources.
In some instances, the owner may prefer a “turn-key” project arrangement where
some of the phases identified above are lumped together and awarded to a single
contractor. These turn key arrangements are variously referred to as thus:
EPCI: This includes Detailed Engineering, Procurement, Construction and Installation
EPCOM: This includes Detailed Engineering, Procurement, Construction, Installation
and Commissioning.
Feasibility / Conceptual Studies
Feasibility studies take a high level view of potential projects and help determine
whether they are worthy of further consideration. Feasibility studies can be carried
out at varying levels of detail, according to client
requirements.
It is not unusual for feasibility studies to be carried out at a number of different
levels of detail for the same project. These are called variously “scouting”,
“screening”, or “concept” studies. For example, the client may wish to identify the
practicality of using a flare boom on fixed jacket platform instead of using a remote
flare tripod or to review the applicability of different technologies and discount at
an early stage non viable alternatives. The feasibility study stage is carried out
essentially within the process discipline with limited support from other disciplines
as required by the level of definition demanded by the client from the study.
 Oil and Gas Project Phases
Other engineering disciplines may be brought in where approaches to vendors are
required to support estimating activities to meet client estimated accuracy criteria.
The deliverables at this stage of study are usually mass balance, utility balances;
process flow diagrams and outline equipment specifications; identification and
description of existing plant constraints and potential solutions; items for future
consideration and evaluation and an estimate of total installed cost, at this stage
usually in the range of +/-30 - +/-20% according to client requirement and nature of
study.
Typically, the duration of these studies is 12 – 16 weeks, according to the level of
detail required and client review stages along the way. It is very vital to get the
client involved at this early stage, usually in brainstorming sessions. The reason for
this is to avoid unnecessary recycles and re-work. The client usually has some idea
in what direction the conceptual study should be going. It behooves of the
engineering contractor to attempt to extract these ideas as much as possible.
Pre-FEED
This phase precedes the FEED. It is not mandatory, hence it could be sometimes
skipped and be included as part of the FEED. At this stage, several options are
evaluated to ensure that the most optimum option is eventually selected. This could
be done at the FEED stage, but because it is not wise to be going back and forth
with options generation at the FEED stage, a scenario that could impact negatively
on the project schedule. It therefore makes more sense to have exhausted options
selection at the Pre-FEED stage before proceeding into FEED. This stage is dominated
by process engineering activities
 Oil and Gas Project Phases
Basic Engineering Design (FEED)
Basic design is the next step beyond conceptual design. The requirement of FEED is
typically to produce a project specification document, which will be used by the
client as his Invitation To Bid (ITB) for the detailed engineering, procurement and
construction contract and a +10% estimate for better definition of the total installed
costs.
The project specification will be required to include a project execution plan and
schedule. It typically begins with a process flow diagram and equipment layout
drawings, then proceeds to develop Piping and Instrument Diagrams (P&ID’s),
Piping routing drawings, equipment specifications, and general operating
procedures.
Extensive client interface is crucial during this phase to ensure a joint understanding
of how the design is expected to work and how it will be operated. Typical
deliverables vary depending on the specific needs of the project, and may include
some or all of the following:
The level of engineering is carried to sufficient detail to support the production of
those key deliverables. A FEED will involve Piping, Civil and Structural design to
allow material take offs (MTO) to be produced. Preliminary safety reviews,
HAZOPS and environmental impact studies are carried out.
 Oil and Gas Project Phases
Detailed Engineering Design
Detail engineering is the final phase of engineering necessary before
reconstruction. It involves the full development of construction quality drawings for
civil, mechanical and electrical disciplines.
The goal of the detail design is to faithfully transfer the concepts and process
philosophy that were developed in previous stages of engineering to the physical
plant.
Interface with the client and the construction contractor is required to ensure
complete understanding and acceptance of the design.
In other words, the detailed engineering is an extension of the activities described
in the basic engineering phase to a greater depth.
Construction Management
Construction Management involves the assignment of one or more people to work
at the construction site to manage the project. This person has the responsibility
(among other things) to track the construction activity and to ensure that the project
proceeds on schedule and on budget. He serves as a liaison between the owner, the
engineer, and the contractor. Following is a list of typical construction management
responsibilities:
 Oil and Gas Project Phases
• Procurement & Expediting
• Operator Training
• Schedule and Budget Management
• Equipment Commissioning and Startup
• Contractor Liaison
• Project Progress Reports
• Design Questions Resolution
• “As-Built" Drawings and Facility Documentation
• Engineering Audits
• Historical Schedule
• Project Management
• Start-up and commissioning
The Cost of Mistakes for Each Phase
Explanation of Trend
The Cost of Mistakes at Conceptual stage is highest and tends to decrease as we
move away from the Conceptual Stage.
This is because if it is discovered that a mistake has been made at the conceptual
stage, all the Calculation results obtained at the other stages of design become
WRONG. So all efforts at these stages are wasted.
Oil and Gas Project Phases
 Oil and Gas Project Phases
If a mistake is made at the Installation Phase, it is cheaper to fix than if the mistake
had been made at the Conceptual phase.
However, the Cost for executing Conceptual Studies is Cheapest when compared to
the other stages. See chart below.
 Activities Of Process Group
Here are the deliverables of the process group listed below.
• Design Basis Report
• Process Simulation (Either Steady State or Dynamic)
• Pipeline Hydraulics Simulation
• Process Datasheets
• Process Flow Diagrams (Pfd, Shell calls it Pfs – Process Flow Scheme)
• Piping and Instrumentation Diagram (P&id, Shell calls this Pefs – Process
Engineering Flow Scheme)
• Safe Chart (Process could just make inputs if control is responsible for this
drawing)
• UFD (Utility Flow Diagrams)
• Material Selection Diagram (MSD)
• Process And Control Flow Diagrams (PCFD)
• Hydrate Formation and Mitigation Study
• Flare Radiation Calculation
• Flare Network Analysis
• Input to Hazop
• Depressurization or Blowdown Study
• Line Sizing
• Vessel Sizing
 Activities Of Process Group
• PSV Sizing
• Control Valve Sizing
• Heat Exchanger Design
• Drainage System Design
• Pump Sizing/Calculations
• Compressor Systems Design
• Equipment List
• Line List
• API RP 14C Compliance Report
• Utility Load Calculation/ Load List
• Heating/Cooling Medium Design
• Chemical Injection System Design
• Process Control Philosophy
STANDARDS, CODES & REGULATIONS
►API Recommended Practice
These are good engineering practices determined by API (American Petroleum
Institute). While it is not mandatory on a design engineer to abide by them, such
engineer shall be responsible for any consequence that arises for acting otherwise.
In the event that there is an accident which results into a legal issue, and an
investigation shows that such practices were not applied, an Engineer might be
charged for negligence which attracts a great deal of penalty, jail term and loss of
professional license inclusive. On the other hand, if an accident occurs and it was
established that the Engineer concerned did apply the relevant recommended
practices, such an Engineer could get away with less stringent penalty since the
event will be considered as an accident. Although a penalty will still apply, but not
as much.
►Codes & Standards
Codes and Standards provide authoritative technical guidelines for promoting
safety, reliability, productivity, and efficiency in almost every industry that relies on
engineering components or equipment. ASME has over 600 codes and standards in
prints which are used in 80 countries.
Engineering Designer is required to abide by CODES and Standards during design.
Deliberate deviation from codes and standards can attract stern consequences in
engineering practice.
STANDARDS, CODES & REGULATIONS
►Regulations
Regulations are tools used by Government to discourage undesirable industrial
practices. Adherence to Regulations are usually enforced by Government
agencies. Good examples of Regulations are Gas Flaring Regulation; Gas and
Liquid effluent Regulations etc.
In Nigeria, DPR, Department of Petroleum Resources, is a Government agency that
is charged with enforcing compliance with Oil and Gas regulations. In the United
States of America, OSHA (Occupation Safety and Health Administration) enforces
compliance with Oil and Gas Regulations in the USA.
Reason for Industry Codes And Standards
One of the reasons industry writes its own standards, recommended practices and
guidelines is to avoid government regulation. If industry is responsible for accidents
and decides not to regulate itself, it knows the government may step in and do it
for them.
Once risks are perceived by the general populace to be “alarming”, GOVERNMENT
STEPS IN!. The first successful regulatory legislation in the United States was passed
by Congress over one hundred years ago, after public pressure and a series of
marine steamboat boiler disasters killed thousands of people.
STANDARDS, CODES & REGULATIONS
Industry Recommended Practices, Codes and Standards for Process Design
►API RP 14E – Line Sizing
This is a recommended Practice used for line pipe sizing. It covers line sizing for
pipes transporting liquid, vapor or two phase fluid.
►API Specification 12J – Separator Sizing
This is a recommended Practice used for sizing pressure vessels. It covers both
Horizontal two-phase separators, Vertical two phase separators, Horizontal three
phase separators and Vertical three phase separators.
►API RP 520 – PSV Sizing
This is a Recommended Practice that covers the sizing criteria for Pressure Safety
Valves.
►API RP 521 – Relief and Emergency Depressuring guide
This is a recommended Practice that covers emergency blow down and the various
emergency relief scenarios
►API RP 14C – Analysis, Design, Installation and Testing of Basic Surface Systems for
Offshore Production Platform.
This is a Recommended Practice that covers the possible hazards that could occur in
a process facility and the minimum Safeguard for protecting the facility from these
hazards. This is a very useful practice for HAZOP
STANDARDS, CODES & REGULATIONS
►API STD 526 – Flanged Steel Pressure Relief Valves
This is a STANDARD that covers the purchase specification for flanged Steel Pressure
Relieve Valves.
►API STD 2000 – Venting Atmospheric and Low Pressure storage Tanks (Non
Refrigerated and Refrigerated)
This standard is used for designing atmospheric tanks
►NORSOK Standards –
The NORSOK standards are developed by the Norwegian Petroleum Industry as
part of the NORSOK initiative and are jointly issued by OLF (The Norwegian Oil
Industry Association) and TBL (Federation of Norwegian Manufacturing Industries).
The Standard covers the following aspects of topside process piping and equipment
design on offshore production facilities.
• Design Pressure and Temperature
• Line Sizing
• System Equipment and Isolation
• Insulation and Heat Tracing
►ASME Boiler and Pressure Vessel Codes – Section Viii
This Code covers the over pressure protection of a pressure vessel using a Pressure
Relief Valve.
 PROCESS DESIGN SOFTWARE
The following Software are important tools for process design calculations.
► HYSYS (Licensed by ASPENTECH)
For performing Energy and material balance calculations. This type of calculation is
called PROCESS SIMULATION. They operate by use of a security key called dongle.
► PRO II (Licensed by SIMSCI)
Just like HYSYS, it is used for process simulation. The only difference is that both of
them are owned by different licensors.
► PIPEPHASE (Licensed by SIMSCI)
This is used for pipe line calculations for performing line sizing and pressure drop
calculations. This type of calculation is called HYDRAULICS calculations. It also uses a
dongle and it works in a steady state mode.
► PIPESIM (Licensed by SCHLUMBERGER)
Just like PIPEPHASE, it is used for Hydraulics calculation. The only difference being
that they are of different licensors.
► OLGA (Licensed by SCANPOWER)
This is used for Flow Assurance calculations. It is quite useful for performing
Dynamic simulations for multiphase flow.
► Flaresim (By Softbit consultant)
This is used for Flare radiation calculation to determine the optimum flare stack
height.
 PROCESS DESIGN SOFTWARE
► Flare net (Licensed by ASPENTECH)
This is used for flare systems hydraulics.
► Pipenet (Licensed By Hyprotech)
This is used for Utilities Hydraulics like Firewater System network.
 PROCESS TERMINOLOGIES
► OP - Operating Pressure
The pressure in the equipment when the plant operates at steady conditions.
► MOP – Maximum Operating Pressure
The maximum pressure predicted including deviations from normal operations,
like start –up/shutdown and Process upsets.
► DESIGN PRESSURE
The maximum internal or external pressure to be used in determining the minimum
permissible wall thickness of the equipment and piping. Relief is normally initiated
at design pressure.
► MAWP – Maximum Allowable Working Pressure
This is greater than or equal to the design pressure.