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CHAPTER I
INTRODUCTION
1.1 INDIA
India is the world‟s largest democracy with more than one billion people. Driven by a middle
class exceeding 300 million people, India‟s economy is the fourth largest in the world in
terms of purchasing power parity. English is the language of business and the country has a
modern banking system and a well developed legal system. India is the world‟s fifth-largest
importer of oil while its per capita consumption of petroleum products is only 12 percent of
the world average.
Recent growth in India‟s economy and corresponding growth in demand for energy provides
a unique marketing and sale opportunity for the Company‟s oil and natural gas reserves –
including the new discoveries in the D6 Block.
Prices for the Company‟s natural gas production are expected to continue to strengthen.
Thirty-two percent of India‟s sedimentary basins are unexplored and a further 50 percent are
either poorly explored or in a preliminary stage of exploration activity. Ninety blocks have
been awarded under the bid rounds since 1999, compared to 24 blocks awarded in the 10
years before 1999. A further 55 blocks are currently being offered as part of the NELP-VI
bidding round scheduled in 2006, and the Company is actively pursuing bidding on several
blocks offered.
Niko signed separate PSCs in 1994 for five fields: Hazira, Bhandut, Cambay, Matar and
Sabarmati, all located in Gujarat State in western India. During the quarter ended March 31,
2006, the Company entered into a purchase and sale agreement for the sale of its interest in
the Bhandut, Cambay and Sabarmati oil fields located onshore India. The aggregate sale price
for these fields is US$5.5 million. The completion of the sale is subject to approval from the
Government of India.
The Company was active in India‟s first international bid round in 1999 and was awarded a
10 percent interest in the D6 and NEC-25 offshore blocks. In the second international bid
round in 2001, the Company was awarded 100 percent of the Surat Block.
During 2005, the Company was awarded two new blocks under the NELP-V bidding round
and signed new PSCs for the Cauvery Block in southern Tamil Nadu (100 percent working
interest) and another deepwater block with Reliance – the D4 Block offshore India‟s east
coast (15 percent working interest). The Cauvery Block has mainly oil potential while the D4
Block encompasses more than 17,000 square kilometers and contains similar play types to the
natural gas discoveries made by Reliance and Niko in the D6 and NEC-25 blocks. In India,
the Company has more than 5,227 net square kilometers of undeveloped land.
The terms of the PSCs vary on a field-by-field basis. The Company undertakes a work
commitment, provides a formula for profit sharing with the federal government and agrees to
abide by certain conditions. The government‟s share of profit is based on a sliding scale
starting from 0 to 10 percent and rising to 40 to 85 percent as the Company recovers 3.5
times its cumulative investment. The government‟s percentage interest is applied to the free
cash flow from the field, namely operating cash flow net of capital expenditures and allocated
G&A costs. Starting in 1999 the PSCs have provided for a seven-year tax holiday, which
starts on commencement of commercial production of a discovery.
As at March 31, 2006 the Company has recovered between 150 and 200 percent of its
investment in the Hazira field and the government is entitled to 20 percent of the free cash
flow from the field in fiscal 2007.
At the Surat Block, the government is entitled to an initial 20 percent of the profit, but until
such time as all costs are recovered, no profit petroleum is assessed. For the offshore India
blocks, the government is entitled to an initial 10 percent of the profit. These offshore blocks
remain in the exploration stage, and as yet no profit has been generated.
Production in Surat averaged 10 million cubic feet per day. The Company expects production
for fiscal 2007 to average between 10 and 11 million cubic feet per day.
During the year, NS-A8 was drilled and completed as a natural gas well in the Bheema sand
section.
The Company was awarded a 100 percent interest in the Surat Block in July 2001. The initial
block covered 419 square kilometers. After completion of the exploratory phase, a
development area of 24 square kilometers, containing the Bheema and NSA shallow natural
gas fields, was retained. The remaining acreage was relinquished.
1 .3 H A ZI R A , I ND I A
At Hazira, production from the offshore platform continued with two new natural gas wells
being drilled and placed on production. Also, two wells that had been drilled in the previous
fiscal year were placed on production during fiscal 2006. A further three oil development
wells were drilled, one of which was designated as an injector well, as part of the oil
development plan for the oil zones discovered in calendar 2005. Oil production, which
commenced at the end of March 2006, is currently at more than 1,250 (413 net) barrels per
day. Year-end natural gas production from the field exceeded 40 million cubic feet per day
(net).
A Gas Balancing Agreement (GBA), designed to allocate natural gas in reservoirs known to
be continuous across the Hazira/Gauri block boundary, went into effect on February 17,
2006. Reserves within these reservoirs will now be shared equitably between the Gauri and
Hazira interest-holders, rather than resorting to unitization.
The Company is the operator of and holds a 33.33 percent working interest in the Hazira
field. The field, which covers an area of 50 square kilometers, lies adjacent to a large
industrial corridor about 25 kilometers southwest of the city of Surat. Gas production during
fiscal 2006 averaged 134 (45 net) million cubic feet per day, compared to 129 (43 net)
million cubic feet per day in fiscal 2005. The field is currently producing approximately 116
(39 net) million cubic feet per day. N2-83 Hazira 05.
CHAPTERII
HAZARD AND
OPERABILITY ANALYSIS
(HAZOP)
2.1 INTRODUCTION
The complexities of the process plant as a result of continuous new development in
technology, expansion or debottlenecking, advanced control systems etc. is increasingly
becoming common .This has resulted in a need to check design for errors and omissions, a
task which has traditionally becomes carried out on an individual basis. This approach no
doubt improves the design but ignores the detection of hazards that may arise out of
interaction among different functional units.
HAZOP study is carried out by the multidisciplinary team who reviews the process to
discover the potential hazards and operability problems using a set of guide words approach.
The basic concept of HAZOP study is to take full description of the process and to question
every part of it to discover what deviations from the intention of the design can occur and
what consequences of the deviation may be. This is systematically by applying suitable guide
words. The list of words and their meanings are:
Provides the basis for the preparation of operating procedure and plant emergency
plan
Provide elaborate documentation as evidence while dealing with concerned persons
(insurance etc.)
Provides cause consequences relationship and with minor additions helps detect
malfunction which may lead to plant shutdown, reducing availability
Helps in building fault tress
Helps in improvisation of exiting plant design
Piping schemes
Data utilities e.g. Steam, cooling water, inert gas, electricity
Description of operating instructions & procedures
Description of emergency system
The general objectives for a study are normally set by the person responsible for the project
or the plant for e.g. the project manager, project engineer etc.
The data consists of various drawing in the form of line diagrams, flows sheets, plant
layouts, isometrics and fabrication and drawings. Additionally there can be operating
instructions. Instrument sequence control charts, logic diagrams and computer programs.
There are plant manuals and equipment manufacture‟s manuals.
The data must be inspected to make sure it is sufficient comprehensive to cover the defined
area of study and discrepancies in the data must be resolved. The amount of work required to
convert the type of the plant.
With continuous plant the preparative work is minimal. The existing flow sheets or P & I
diagram contain sufficient information for the study. The sequence for the study is straight
forward. The study team starts at the beginning of the process and progressively works
downstream.
With the batch plant the preparative work is usually more extensive in additional to drawing
which describes the plant itself it is necessary to know the sequence of plant operation for e.g.
Running instructions, indicating the status of each vessel on a time basis.
With some kinds of complicated, proprietary items of equipment, the preparative work can be
expensive and occupy more man days than the examination itself.
Once the data has been assembled and the model made (if necessary) the steady leader is in
position to start to arrange meeting. The first requirement is to estimate the team hour needed
for the study. This can be built up in a number of ways. As a general rule each individual part
to be studied will take an average of 15 minutes team time. Thus an estimate can be made by
considering the number of pipelines and half hour for each vessel. Ideally the duration of
examination sections should be restricted to three hours.
The file should be retained on the plant so that it is a source of information. Reports can also
be written for the guidance of the managers or other practitioners if a study has some
interesting or unique features.
The formal recording of the study may in future have further implications. For examples the
insurance premium may be affected or planning permission may be assisted by evidence of a
well conducted study.
Finally the information generated by studies can be used to improve future designs.
The HAZOP was carried out for the Land Base Drilling Platform (LBDP). In this HAZOP I
have consider different Nodes for different locations. The table depicts the HAZOP done for
LBDP using applicable guide words.
External fire.
Chances of
abrasive flow,
Excessive
withdrawal.
Chock valve
malfunction Possibility of
(CVA-080), reverse flow to
the well having
No gas flow low pressure.
from one well
due to pressure
imbalance
amongst wells.
LESS Flow Less flow Less production, UV-080,
coming from
the well, Vapour cloud Pipeline
formation of thickness
Leakage in natural gas, tested is done
pipelines due in every four
to decrease in Chances of fire. year.
thickness,
Operational
error.
pressure PSV-
PI-157,
High 103 is used and
temperature release of
NRV is
leads to high natural gas,
provided.
pressure,
Vapour cloud
Line blockage formation of
or no flow natural gas.
leads to
increase in
pressure.
MORE Level Control valve Liquid carry For no gas
stuck, over, flow Unit
valve is
Instrument Compressor provided,
malfunctioning damaged due to
, liquid carry LG-132,
over, LG-157,
Instrument gas LC-157,
supply failure.
High level
alarms
(LSHH-100,
LAHH-100).
provided.
Valve passing.
Heavy
blockage in
pipeline,
Leakage in
pipe line.
LESS Flow Less flow Due to rupture Flow control
coming from or leakage valve is
the header, vapour cloud provided,
formation of
Rupture or natural gas, NRV is
leakage in provided,
pipes, Chances of
reverse flow, Isolation
valve-
Less production. 1”BCN1,
Chances of
rupture and
leakage
resulting vapour
cloud formation.
UV-80 to 150,
Less pressure Chances of fire.
coming from
UV-1016 to
the header,
1023,
Temperature
increases.
MORE Temperatur Temperature Pressure rise in High
e of the pipes, temperature
surrounding alarm can
increases, Chances of be provided.
leakage,
External fire
Leakage leading
to vapour cloud
formation
NOTE 1: Wells no 9, 12, 14, 19, 20, and 24 are not producing gas so from some flow lines of
these wells control valves, measuring indicators, sand probe etc. have removed. I have not
considered these wells in my HAZOP study but there may be chance to sudden flow of gas in
these wells, at that time hazard may take place. But probability of sudden flow is very less or
almost negligible so as far as I consider there is no need to do any changes in these wells.
NOTE 2: The instruments like control valve, flow measuring device, temperature measuring
device etc. are deliberated to remove from the pipelines due to less pressure.
2.9 INFERENCE
A detailed HAZOP study was carried out for Land Base Drilling Platform (LBDP) alone. The
various deviations possible, their direct causes and consequences were systematically traced
and the adequacy of the available safety systems was analyzed. The systems provided where
found to be adequate on their own and hence only few small changes are suggested.
2.10 RECOMMENDATIONS
1. In P&ID flow control valves are not showing in well no. 10, 15 and 21 while in site flow
control valves are not present in well no. 8, 14, 19, 20 and 21 so P&ID should be updated
time to time.
2. It would be appropriate to provide audible high/low pressure alarm in control room.
3. Pipelines, joints etc. should be painted properly to avoid any type of rusting rusting.
4. Check and make sure that all shut down valves are fire safe.
5. Colour coding should be done properly.
6. It would be appropriate to provide high temperature alarm at the Header region.
7. Cooling fire fighting systems should be arranged at LBDP.
REFRENCES