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Block 2 is the new Gas field in Tanzania which is still under development; Statoil Tanzania
has proposed the initial production strategy (In this context referred as phase I) of three
reservoirs which are Zafarani, Lavani Main and Lavani Deep. The study was performed using
few published data, engineering calculations and reasonable assumptions, because most of the
data were sensitive and not yet been disclosed.
By using Excel model, a simple material balance for dry gas reservoir combined with
depletion studies and hydrostatic calculations were performed to determine the production
plateau length of the production system. In order to prolong the plateau length, economic
sensitivity analysis on increasing number of wells was then performed. This analysis yielded
the best case scenario which was able to extend the plateau length by 8.7 years.
HYSYS simulator was used to evaluate details of multiphase flow in the main transportation
pipeline, and compare the main pipeline pressure drop results obtained using HYSYS and
those obtained using Excel calculations.
Results showed that, estimated plateau rate of 13.6MMSCMD could be produced for 31.35
years, after increasing 2 wells in each reservoir the production plateau length was increased to
39 years with the added profit of 169,417 Million USD. The pressure drop obtained using
HYSYS simulator was higher compared to that of simple Excel calculations. The liquid
holdup was very low with the flow regime changing from vapour flow, stratified flow and
ending up to wavy flow. HYSYS indicated risk of hydrate formation in the main transport
pipeline, gas stream and liquid stream.
i
Acknowledgment
I would like to express special thanks to my supervisor Professor Stanko Milan, for his
continuous support, motivation and immense knowledge that he has been providing me in
order to accomplish my project. His guidance is highly appreciated.
I would also like to thank other co-supervisors Professor Richard Rwechungura, Dir. Ambrose
Itika and Miss Ghati Mwita for their support and insightful comments for my project.
Unique gratitude goes to my lovely mother, Miss Mary Mhango, my friends and relatives for
their moral support throughout my project and life in general. You are all appreciated.
ii
Table of Contents
Abstract ........................................................................................................................................ i
Acknowledgment ........................................................................................................................ ii
List of Figure ............................................................................................................................. vi
List of Tables ............................................................................................................................ vii
List of Equations ...................................................................................................................... viii
Nomenclature............................................................................................................................. ix
Greek ......................................................................................................................................... xi
Units .......................................................................................................................................... xi
Abbreviations ........................................................................................................................... xii
CHAPTER ONE: INTRODUCTION ........................................................................................ 1
1.0 Introduction and Background ........................................................................................... 1
1.1 Project Objectives ............................................................................................................. 2
1.1.0 Main objective ........................................................................................................... 2
1.1.1 Specific objectives ..................................................................................................... 2
CHAPTER TWO: LITERATURE REVIEW ............................................................................ 3
2.0 Natural Gas Reservoirs ..................................................................................................... 3
2.1 Natural Gas Classifications, Components and Properties ................................................ 3
2.2 Natural Gas Mixtures ....................................................................................................... 5
2.2.0 Gas Volumetric Properties ........................................................................................ 5
2.2.1 Ideal Gas Equation..................................................................................................... 5
2.2.2 Real Gas Equation ..................................................................................................... 5
2.2.3 Gas Formation Volume factor (𝐵𝑔).......................................................................... 5
2.2.4 Z-factor ...................................................................................................................... 6
2.2.5 Gas Pseudo Critical Properties .................................................................................. 7
2.2.6 Gas Specific Gravity.................................................................................................. 8
2.2.7 Gas Viscosity ............................................................................................................. 8
2.3 Block 2 Natural Gas in Tanzania ...................................................................................... 9
2.4 Gas Field Development .................................................................................................. 11
2.4.1 Life Cycle of Gas Field ........................................................................................... 11
2.4.2 Development Concept ............................................................................................. 12
2.4.3 Gas Field Modeling ................................................................................................. 16
2.4.4 Gas Well Deliverability ........................................................................................... 18
iii
2.4.5 IPR Concept for Gas Reservoir ............................................................................... 18
2.4.6 Gas Flow in Well Tubing, Flowlines and Pipelines ................................................ 20
2.4.7 Flow Control and Conditioning ............................................................................... 22
2.4.8 Flow Equilibrium Analysis ...................................................................................... 23
2.4.9 Production Scheduling............................................................................................. 26
2.4.10 Surface Networks and Gathering Systems ............................................................ 29
2.4.11 Common kind of Gathering System ...................................................................... 29
2.4.12 Network Solving .................................................................................................... 29
2.4.13 Field Flow Assurance Issues ................................................................................. 30
2.5 Economic Analysis ......................................................................................................... 33
3.3.1 NPV ......................................................................................................................... 34
3.3.2 Payback .................................................................................................................... 34
3.3.3 IRR .......................................................................................................................... 35
CHAPTER THREE: METHODOLOGY ................................................................................. 36
3.0 Literature Survey ............................................................................................................ 36
3.1 Consultations .................................................................................................................. 37
3.3 Plateau Rate Estimation .................................................................................................. 37
3.2 Excel Model.................................................................................................................... 37
3.4 The Pressure used in Backpressure Equation ................................................................. 37
3.5 Tubing, Flowline and Pipeline Calculations .................................................................. 38
3.6 The 𝐶𝑅 Estimate ............................................................................................................ 39
3.7 Production Plateau Duration ........................................................................................... 41
3.8 Prolonging the Plateau .................................................................................................... 43
3.9 Economic Model ............................................................................................................ 43
3.10 HYSYS Simulator ........................................................................................................ 44
CHAPTER FOUR: RESULTS AND DISCUSSION............................................................... 46
4.0 Production Plateau Profile .............................................................................................. 46
4.1 Prolonging the Plateau .................................................................................................... 48
4.2 HYSYS Results .............................................................................................................. 49
4.2.1 Comparison of Pressure Drops in the Main Transportation Pipe ............................ 49
4.2.2 Details of Multiphase Flow in the Main Transportation Pipeline ........................... 50
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS ....................................... 56
5.0 Conclusion ...................................................................................................................... 56
iv
5.5 Recommendations .......................................................................................................... 56
Appendices ............................................................................................................................... 57
Appendix A: Information of Block 2, Phase I Production ................................................... 57
Appendix B: Pseudo Pressure Function Calculations .......................................................... 57
Appendix C: 𝐶𝑇 𝐶𝐹𝐿 and 𝐶𝑃𝐿 Calculations ........................................................................ 59
Appendix D: 𝐶𝑅 Estimates ................................................................................................... 65
Appendix E: Graphs for Prolonging the Plateau Length ...................................................... 67
Appendix F: HYSYS Model ................................................................................................ 68
References ................................................................................................................................ 75
v
List of Figure
Figure 1: Gas Reservoirs discoveries in Block 2. Courtesy of Statoil Tanzania ........................ 2
Figure 2: Standing and Katz Z-factor chart (Gudmundsson, 2012) ........................................... 7
Figure 3: Seabed topography of Tanzania Gas Project (Holm, 2015)...................................... 10
Figure 4: Subsea Layout (Holm, 2015) .................................................................................... 10
Figure 5: Evolution of Gas field ............................................................................................... 11
Figure 6: Field development alternatives, courtesy of Statoil .................................................. 13
Figure 7: (a) Configuration of well in a template/cluster (b) Configuration of satellite wells . 14
Figure 8: Offshore structures with their water depths (Diego Vannucci, 2011) ...................... 15
Figure 9: Natural gas transportation technologies (Dale, 2013) ............................................... 16
Figure 10: Heat transfer in a pipeline (Guðmundsson, 2011) .................................................. 22
Figure 11: Natural Gas Products (Gudmundsson, 2012).......................................................... 23
Figure 12: Schematic view of the flow equilibrium calculation .............................................. 24
Figure 13: Available and required curves during equilibrium analysis (Hossain, 2008) ......... 24
Figure 14: Nodes in the production system (Hossain, 2008). .................................................. 25
Figure 15: Possible pressure losses in a production system, courtesy of Rawlins and Shellhardt
.................................................................................................................................................. 25
Figure 16: Schematic production patterns of the gas reservoir (A. Rojey, 1997). ................... 26
Figure 17: Gathering networks courtesy of Szilas (1975) ........................................................ 29
Figure 18: Gas hydrate structure (Schulumberger , 2010) ....................................................... 31
Figure 19: Hydrate phase diagram (Bokin, et al., 2010) .......................................................... 31
Figure 20: Flow patterns in horizontal and vertical components (Stopford, 2011) .................. 32
Figure 21: Cash flow versus time during field development (Svalheim, 2005) ....................... 34
Figure 22: Production strategy principles proposed by Statoil (Holm, 2015) .......................... 36
Figure 23: Layouts of production system (a) only Zafarani is producing (b) all reservoirs are
connected .................................................................................................................................. 39
Figure 24: Configuration of DST to estimate 𝐶𝑅 for Zafarani ................................................. 40
Figure 25: Configuration to estimate 𝐶𝑅 for Lavani Main and Lavani Deep .......................... 41
Figure 26 : Flow equilibrium calculation to determine plateau length .................................... 42
Figure 27: HYSYS Setup ......................................................................................................... 45
Figure 28: Production Plateau Profile ...................................................................................... 46
Figure 29: Pressure Evolution during plateau .......................................................................... 47
Figure 30: Best Case, Prolonged Plateau Length ..................................................................... 49
Figure 31: Temperature and Pressure Profiles for the HYSYS First Case ............................... 50
Figure 32: Temperature and Pressure Profiles for the HYSYS Second Case .......................... 51
Figure 33: Temperature, Pressure and Liquid Holdup Profiles for the HYSYS First Case ..... 51
Figure 34: Temperature, Pressure and Liquid Holdup Profiles for the HYSYS Second Case 52
Figure 35: Liquid Holdup Profiles against Elevation for the HYSYS First Case .................... 52
Figure 36: Liquid Holdup Profiles against Elevation for the HYSYS Second Case................ 53
vi
List of Tables
Table 1: Typical chemical composition of natural gas (Demirbas, 2010).................................. 4
Table 2: Typical combustion properties of natural gas (Demirbas, 2010) ................................. 4
Table 3: Example of field development plan matrix (Rodriguez-Sanchez*, et al., 2012) ....... 12
Table 4 : Cases for Wells Addition .......................................................................................... 43
Table 5: Economic analysis on added wells ............................................................................. 48
Table 6: Pressure Drop Comparison......................................................................................... 50
Table 7: Flow Patterns for HYSYS First Case ......................................................................... 53
Table 8: Flow Patterns for HYSYS Second Case .................................................................... 53
Table 9: Hydrate Formation in the Main Pipelines for HYSYS First Case ............................. 54
Table 10: Hydrate Formation in the Main Pipelines for HYSYS Second Case ....................... 54
Table 11: Hydrate Formation in the Streams for HYSYS First Case ....................................... 54
Table 12: Hydrate Formation in the Streams for HYSYS Second Case .................................. 55
vii
List of Equations
2- 1 .............................................................................................................................................. 5
2- 2 .............................................................................................................................................. 5
2- 3 .............................................................................................................................................. 5
2- 4 .............................................................................................................................................. 6
2- 5 .............................................................................................................................................. 6
2- 6 .............................................................................................................................................. 6
2- 7 .............................................................................................................................................. 7
2- 8 .............................................................................................................................................. 8
2- 9 .............................................................................................................................................. 8
2- 10 ............................................................................................................................................ 8
2- 11 ............................................................................................................................................ 8
2- 12 ............................................................................................................................................ 8
2- 13 ............................................................................................................................................ 9
2- 14 ............................................................................................................................................ 9
2- 15 .......................................................................................................................................... 17
2- 16 .......................................................................................................................................... 17
2- 17 .......................................................................................................................................... 17
2- 18 .......................................................................................................................................... 18
2- 19 .......................................................................................................................................... 18
2- 20 .......................................................................................................................................... 19
2- 21 .......................................................................................................................................... 19
2- 22 .......................................................................................................................................... 19
2- 23 .......................................................................................................................................... 19
2- 24 .......................................................................................................................................... 20
2- 25 .......................................................................................................................................... 20
2- 26 .......................................................................................................................................... 20
2- 27 .......................................................................................................................................... 20
2- 28 .......................................................................................................................................... 21
2- 29 .......................................................................................................................................... 21
2- 30 .......................................................................................................................................... 21
2- 31 .......................................................................................................................................... 22
2- 32 .......................................................................................................................................... 27
2- 33 .......................................................................................................................................... 27
2- 34 .......................................................................................................................................... 33
2- 35 .......................................................................................................................................... 33
2- 36 .......................................................................................................................................... 34
2- 37 .......................................................................................................................................... 35
3- 1…………………………………………………………………………………………….43
viii
Nomenclature
𝐶1 Methane
𝐶2 Ethane
𝐶3 Propane
𝐶4 Butane
𝐶5 Pentane
𝐶𝑇 Tubing Coefficient
𝑀𝑤 Molecular weight
ix
𝑃𝑤𝑓 Flowing bottomhole pressure
𝑇𝑐 Critical temperature
𝑊𝑒 Water influx
𝑊𝑖 Injected water
𝑊𝑝 Produced water
𝑐𝑓 Fluid compressibility
𝑐𝑡 Total compressibility
𝑐𝑤 Water compressibility
𝑝𝑐 Critical pressure
𝑝𝑖 Initial pressure
𝑝𝑜 Reference pressure
x
𝐷 Pipe diameter
𝐺 Gas volume
𝐿 Pipe length
𝑘 Permeability
𝑚 Mass
𝑛 Number of moles
𝑟 Radius
𝑦 Reduced-density parameter
Greek
𝛾𝑔 Gas specific gravity
𝜇𝑔 Gas viscosity
𝜌𝑔 Gas density
𝜋 Pie
𝜙 Porosity
Units
Bara Absolute bar
℃ Degree Celsius
cP Centipoise
K Kelvin
Kg-mole/hr Kilogram mole per hour
m/s meter per second
mg/m3 milligram per cubic meters
MJ/m3 Mega Joule per cubic meters
Sm3 Standard cubic meters
Sm3/Bara2 Standard cubic meters per squared absolute bar
xi
Abbreviations
AOF Absolute Open Flow potential
xii
qT Total Field Rate
R.F Recovery Factor
SPAR Seagoing Platform for Acoustic Research
STP Standard Temperature and Pressure
TLP Tension Leg Platforms
TRR Total Recoverable Reserves
U.S United State
USD United State Dollar
VBA Visual Basic for Applications
xiii
CHAPTER ONE: INTRODUCTION
The field development study in this project was based on the Block 2 Gas field of an offshore
in Tanzania. Statoil Tanzania is currently operating Block 2 with 65% interest and
ExxonMobil Exploration and Production Tanzania Limited as a partner having 35% interests.
Block 2 comprises of eight discoveries which are Zafarani, Lavani, Tangawizi, Mronge,
Mdalasini, Giligiliani and Piri as mapped in Figure 1 (Holm, 2015). The good reservoir
quality was confirmed after a drill stem test (DST) on Zafarani reservoir (Michelsen, 2014) .
Gas field development planning involves multiple disciplines to bring out a field development
plan process which should be technically feasible as well as economically viable. The
production capacity and the production plateau length are necessary components for the
development.
The study in this project was primarily done using simple Excel calculations and HYSYS
Simulator. The study contains more or less information from the real field data and other
information are reasonably assumed. This study was interested in the phase I of natural gas
production strategy proposed by Statoil which involves three reservoirs named Zafarani,
Lavani Main and Lavani Deep. The study included gas production from the reservoir
combined with surface networks simulations, as well as performing analysis on flow
assurance during a life time of gas production.
1
Figure 1: Gas Reservoirs discoveries in Block 2. Courtesy of Statoil Tanzania
2
CHAPTER TWO: LITERATURE REVIEW
The porous and permeable subsurface rock at elevated temperature and pressure is called
reservoir, in other theory is referred as the high temperature and pressure reactor used to
slowly convert deposited organic matter into oil and gas. Reservoir compositions and nature
depends on depositional environment and geologic maturation of the formation. Typically
speaking of gas reservoirs, the fluid compositions of such reservoir is of low complexity as it
contains fluids of low-molecular weights. In the order of increasing complexity, gas reservoir
fluids can be arranged as follows: dry gas, wet gas and gas condensate (Curtis H. Whiston,
2000).
Natural gas contains both simple hydrocarbon compounds and one or more non hydrocarbon
compounds. Based on the amount and content, natural gas is named differently. When natural
gas contains almost 95% of methane (C1) and other compounds like propane and butane, the
mixture gas is called dry natural gas because at standard temperature and pressure (STP) there
will be no liquid content. When the mixture is contained with heavier liquids such as pentane,
Natural gas will contain what is called Natural Gas liquids (NGLs) because heavier
components are liquid at STP. Lastly, when natural gas is comprised with non-hydrocarbon
compounds such as carbon dioxide, water vapour and hydrogen Sulfide, the mixture formed is
called wet natural gas, (Pratte, 2004). Typical compositions of natural gas are shown in Table
1.
3
Table 1: Typical chemical composition of natural gas (Demirbas, 2010)
Natural gas has different chemical and physical properties Table 2 shows typical combustion
properties of natural gas. These properties are not guaranteed to be the same, may change
from region to region.
4
2.2 Natural Gas Mixtures
2- 1
𝑝𝑉 = 𝑛𝑅𝑇
Whereby, 𝑝 is the pressure, 𝑉 is the volume, 𝑛 is the number of moles, 𝑇 is the temperature
and 𝑅 is the universal gas constant.
𝑝𝑉 = 𝑍𝑛𝑅𝑇 2- 2
𝑉𝑅 𝑝𝑠𝑐 𝑍𝑅 𝑇𝑅 2- 3
𝐵𝑔 = =
𝑉𝑠𝑐 𝑇𝑠𝑐 𝑍𝑠𝑐 𝑝𝑅
5
Whereby, parameters with subscript 𝑅 are expressed at reservoir conditions, and those with
subscript 𝑠𝑐 are expressed at standard conditions.
2.2.4 Z-factor
Gas deviation factor is the useful thermodynamic property which relates the molar volume of
real gas to that of ideal gas, at the same temperature and pressure. For an Ideal gas, Z-factor is
unity. Generally, Z-factor to predict the gas behaviour is presented by Standing and Katz Z-
factor chart (Figure 2). However, some authors have empirically generated equations which fit
to the original Standing-Katz chart. Hall and Yarborough present an accurate empirical
expression of the Standing- Katz chart using Carnahan-Starling hard-sphere EOS (Eq. 2-4).
𝑝𝑝𝑟 2- 4
𝑍 = 𝛼
𝑦
Whereby,
𝛼 = 0.06125𝑡𝑒𝑥𝑝[−1.2(1 − 𝑡)2 ], 𝑡 = 1⁄𝑇 ,
𝑝𝑟
𝑦 + 𝑦2 + 𝑦3 − 𝑦4
𝑓(𝑦) = 0 = −𝛼𝑝𝑝𝑟 + − (14.76𝑡 − 9.76𝑡 2 + 4.58𝑡 3 )𝑦 2
(1 − 𝑦)3
+ (90.7𝑡 − 242.2𝑡 2 + 42.4𝑡 3 )𝑦 2.18+2.82𝑡 2- 5
𝑑𝑓(𝑦) 𝑦 + 4𝑦 + 4𝑦 2 + 4𝑦 3 − 𝑦 4
= − (29.52𝑡 − 19.52𝑡 2 + 9.16𝑡 3 )𝑦
𝑑𝑦 (1 − 𝑦)4
+ (2.18 + 2.82𝑡)(90.7𝑡 − 242.2𝑡 2 + 42.4𝑡 3 )𝑦 2.18+2.82𝑡 2- 6
The expression is solved by Newton-Raphson procedure with initial seed of 𝑦 = 0.001, the
convergence to obtain a solution is always between 3 to 10 iterations (Curtis H. Whiston,
2000).
6
Figure 2: Standing and Katz Z-factor chart (Gudmundsson, 2012)
Pseudo critical properties for hydrocarbon mixtures (HC) as suggested by Sutton are given in
Eq. 2-7 and Eq. 2-8.
2
𝑇𝑝𝑐HC = 169.2 + 349.5𝛾𝑔HC − 74.0 𝛾𝑔HC 2- 7
7
2
𝑃𝑝𝑐HC = 756.8 − 131𝛾𝑔HC − 3.6𝛾𝑔HC
2- 8
Z-factor, viscosity and other gas properties have been correlated accurately with the reduced
pressure and temperature (Curtis H. Whiston, 2000).
𝑀𝑤
𝛾𝑔 =
𝑀𝑎𝑖𝑟 2- 9
∑ 𝑀𝑤𝑖 𝑦𝑖
𝛾𝑔 =
𝑀𝑎𝑖𝑟 2- 10
Whereby, 𝑦𝑖 is the mole fraction of an individual component and 𝑀𝑤𝑖 is the molecular
weight of an individual component.
The gravity of the pure methane is equal to 0.55. But if the gas reservoir contains heavy gases
the gravity may be equal to 0.75 or, rarely higher than 0.9 (Michael J. Economides, 1994).
𝜇𝑔 = 𝐴1 𝑥10−4 exp(𝐴2 𝜌𝑔 𝐴3 ) 2- 11
Where,
𝐴3 = 2.447 − 0.2224𝐴2 2- 14
The accuracy of this correlation is from 0.02 to 0.04 for gas specific gravity less than 1.0 and
with errors up to 0.2 for gas condensates with specific gravity greater than 1.5.
The good reservoir quality and connectivity was confirmed after the DST test operation on
Zafarani-2. The well was flowed at maximum of 1.869MMSCMD, constrained by equipment.
The obtained production rate of the well is estimated to be higher than the rate obtained during
the test (Michelsen, 2014).
The seabed is characterised with large canyons, and steep inclination of +40 to +50 towards the
shore. The steep escarpment near onshore are 20 to 30 degrees are also observed. The sea
water surface temperature may be approximated to 30 ℃, while that in deep water is +3 to
+4 ℃. The development concept chosen is the subsea tie back to the onshore Liquefied
Natural Gas plant. The large scale seabed topography and the field layout are illustrated in
Figure 3 and Figure 4 respectively. However, the subsea layout and concept are still under
development with the production capacity still being evaluated. Discovered reservoir fluids
9
are very dry, and according flow assurance risk study, the presence of low liquid conditions
was indicated, in which multiple holdup solutions exist (Holm, 2015).
10
2.4 Gas Field Development
The Development of gas field is a complex task which involves multiple disciplines, these
disciplines include, Seismic–Reservoir, Drilling, reservoir engineering, Metocean data,
Seabed survey, production engineering, Facilities, Pipelines Flow assurance/fluids Process,
Subsea, HSE &Cost estimation. All of them working together to develop a field plan which is
capable of exploiting the gas resource optimally, by considering different criteria such as
safety, cost, accessibility and maintenance issues.
Before exploration activities specific company is awarded with prospecting license, afterwards
exploration takes place, whereby several geological and geophysical surveys are done to
identify the prospect. Drilling of the exploration well is then done to obtain further data and
see if the prospect exists. When the drilling activities are accomplished and the results
encountered a potential reservoir, further appraisal drilling is undertaken to see if the
discovery is commercial.
Development stage starts once, after the prospect has been approved to be both technically and
economically viable. The following activities are accounted during production stages
Issues addressed during production include maintaining of the plateau, additional of new wells
if necessary, maintenance of the facilities, transportation of the gas, possibilities to improve
recovery.
11
The final stage of the gas field is abandonment, this happens when the reservoir is no longer
economical (the production has reached to the tail) issue addressed includes plugging wells,
dismantling of the facilities and decommissioning.
The technical part is crucial in defining the objectives and strategies of the project, thereafter
technical screening processes is done with a combination of economical evaluation, by
discarding concepts with no value and accepting concepts which have value to come up with
the best case concept.
12
Figure 6: Field development alternatives, courtesy of Statoil
In the offshore gas field, the subsea wells are constructed in two ways. The first way is
satellite way, these wells are typically vertical wells drilled above the area of interests; the
wells are then connected to the manifold. The second way is when the wells are a clustered on
templates (cluster manifold) and then the cluster manifold is joined to the main manifold.
Figure 7 shows the configuration of wells; Clustered wells are usually deviated/inclined to
reach different parts of the reservoir, each way has advantage over one another, where by the
former way is cheaper than the later way.
13
Figure 7: (a) Configuration of well in a template/cluster (b) Configuration of satellite wells
2.4.2.3 Hub
There are different offshore structures technologies, these structures can be either fixed or
floating systems. Fixed platforms involve of Jacket Structure, Gravity based, Compliant
Structures and Guyed towers while floating systems involve of Floating Production, Storage
and Offloading (FPSO), Semi-submersible platforms, SPAR platforms and Tension Leg
Platforms (TLPs). Types of platforms and their applicability water depth are shown in Figure
8.
14
Figure 8: Offshore structures with their water depths (Diego Vannucci, 2011)
3.2.2.4 Transportation
After gas is produced, it has to reach consumers. Transportation of the natural gas begins at
the production well to the end consumer. Natural gas transportation consists of complex
pipeline transportation system consisting of gathering system, interstate and intrastate pipeline
and distribution system.
Transportation of natural gas over long distances can either be done via pipelines when the gas
is in gaseous state, or being transported in special tankers when gas is liquefied (Babies,
2012). LNG technology is becoming potential compared to the traditional transportation of
natural gas via pipelines. Other potential transport options such as natural gas in form of CNG
and micro-LNG may also be opted (Dale, 2013). Figure 9 shows feasible natural gas
transportation technologies in terms of gas volume and travel distance.
15
Figure 9: Natural gas transportation technologies (Dale, 2013)
16
How the model is set, it depends on the drive mechanism, type of fluids and other properties
of the reservoir. The general material balance equation for gas reservoir is shown in Eq. 2-15.
𝐶𝑓 + 𝐶𝑤 𝑆𝑤𝑖
𝐺(𝐵𝑔 − 𝐵𝑔𝑖 ) + 𝐺𝐵𝑔𝑖 ( ) ∆𝑝𝑡 + 𝑊𝑒 + 𝑊𝑖 𝐵𝑤𝑖 + 𝐺𝑖 𝐵𝑔𝑖
1 − 𝑆𝑤𝑖 2- 15
= 𝐺𝑝 𝐵𝑔 + 𝑊𝑝 𝐵𝑤
For the closed gas reservoir, with both water and rock compressibilities neglected, Eq. 2-15
can be reduced to Eq. 2-16
𝐺(𝐵𝑔 − 𝐵𝑔𝑖 ) = 𝐺𝑝 𝐵𝑔
2- 16
𝑍
Again, for real gas at constant temperature 𝐵𝑔 = (𝑐𝑜𝑛𝑠𝑡𝑎𝑛𝑡) 𝑝 by substituting 𝐵𝑔 expression
𝑝
into Eq. 2-16, Eq.2-17 which gives linear relationship on against 𝐺𝑝 plot is obtained.
𝑍
𝑝 𝑝𝑖 𝐺𝑃
= (1 − )
𝑍 𝑍𝑖 𝐺 2- 17
Eq. 2-15 can be manipulated by neglecting some of the terms, depending on the reservoir
conditions. Some cases which gives nonlinear relationship can be considered, these cases
includes, gas material balance by considering water drive, gas reservoirs with abnormally
high-pressure, and low permeability gas reservoirs.
17
2.4.3.4 Reservoir Simulation
Reservoir simulation modeling deals with the reservoir performance and forecasting of
production. The good thing with reservoir simulation is the capability of dealing with complex
reservoir characteristics. Mainly, commercial tools are used for reservoir simulation in the
petroleum industry.
Several tests have been developed for gas wells, including flow after flow tests, isochronal
and modified isochronal test. The flow after flow test is primarily limited to long time
required for stabilization in low permeability reservoirs. Consequently, isochronal and
modified isochronal tests were developed for short time tests (Johnston, et al., 1991)
18
Analytical solutions of the stabilized flow in SI units are given as follows;
For single phase, radial flow and steady state (when the pressure change with respect to time
at any location of the reservoir is zero), the pressure squared function and the pseudo pressure
function are expressed by Eq. 2-20 and 2-21 respectively. The steady state is never achieved at
natural production; unless pressure is supported, for example during injection.
2
7.7𝑘ℎ(𝑃𝑅2 − 𝑃𝑤𝑓 ) 2- 20
𝑞𝑔 =
𝑟 1
𝑇𝑅 𝜇𝑧(ln( 𝑒 ) − + 𝑠)
𝑟𝑤 2
7.7𝑘ℎ(𝑚(𝑃𝑅 ) − 𝑚(𝑃𝑤𝑓 )) 2- 21
𝑞𝑔 =
𝑟 1
𝑇𝑅 (ln(𝑟 𝑒 ) − 2 + 𝑠)
𝑤
For single phase (gas), radial flow and pseudo steady state (when the pressure change with
respect to time is a constant), expressions in Eq. 2-22 and Eq. 2-23 are used.
2
7.7𝑘ℎ(𝑃𝑅2 − 𝑃𝑤𝑓 ) 2- 22
𝑞𝑔 =
𝑟 3
𝑇𝑅 𝜇𝑧(ln(𝑟 𝑒 ) − 4 + 𝑠)
𝑤
7.7𝑘ℎ(𝑚(𝑃𝑅 ) − 𝑚(𝑃𝑤𝑓 )) 2- 23
𝑞𝑔𝑠𝑐 =
𝑟 3
𝑇𝑅 (ln(𝑟 𝑒 ) − 4 + 𝑠)
𝑤
Rawlins and Shellhardt after interpreting hundred multi-rate gas well tests, they developed
equation called back pressure equation (IPR) in terms of pressure squared function Eq. 2-24.
However, this equation applies only for low reservoir pressures. For high pressure reservoir
the appropriate way is to use pseudo pressure function Eq. 2-25. The back pressure
Coefficient (𝐶𝑅 ) in the equation accounts for the rock and fluid properties, transient effects
and flow geometry while accounts for high velocity flow. (Michael & Whitson, 1991)
19
Different cases should be considered as to how and when back pressure equation should be
applied by adjusting parameters incorporated in the equation. For example, Eq. 2-24 is
applicable when non-Darcy flow is evident in the reservoir, and when Darcy flow is assumed
Eq. 2-24 is reduced to Eq. 2-25.
2 𝑛
𝑞𝑔𝑠𝑐 = 𝐶𝑅 (𝑃𝑅2 − 𝑃𝑤𝑓 ) 2- 24
2
𝑞𝑔𝑠𝑐 = 𝐶𝑅 (𝑃𝑅2 − 𝑃𝑤𝑓 ) 2- 25
Where 𝑛 value ranges from 0.5 to 1
Al-Hussainy and Ramey developed better solution for real gas pseudo-pressure function 𝑚(𝑝)
, when reservoir pressure is greater than 173 Bara, the solution is more accurate and difficult
to calculate and need more computational time compared to pressure squared approach. This
function is properly adjusted from the viscosity and gas deviation factor (Michael J.
Economides, 1994).
𝑝
𝑝
𝑚(𝑝) = 2 ∫ 𝑑𝑝
𝑝𝑜 𝜇𝑍 2- 27
Arbitrary, 𝑝𝑜 is the reference pressure which is always set to zero.
20
2.4.6.1 Gas Flow in Well Tubing
Pressure drop in the wellbore is the function of gravity term, friction term and acceleration
term. The general tubing equation (Eq. (2-28)) gives the relation of the well rate with the
pressure drop.
2
𝑃𝑖𝑛 2
2- 28
𝑞𝑔𝑠𝑐 = 𝐶𝑇 ( − 𝑃𝑜𝑢𝑡 )0.5
𝑒𝑠
𝐶𝑇 is the function of temperature and pressure at standard conditions, inner diameter of the
pipe, average compressibility factor, friction factor, length of the pipe, average temperature of
the fluid in the pipe and the elevation constant.
When the flow string diameter is changed, the new 𝐶𝑇 can be obtained using Eq. 2-29.
Eq. 2-29 can be used to obtain new 𝐶𝐹𝐿 and 𝐶𝑃𝐿 when changing pipe diameters.
2 2
𝑞𝑔𝑠𝑐 = 𝐶𝐹𝐿 (𝑃𝑖𝑛 − 𝑃𝑜𝑢𝑡 )0.5 2- 30
𝐶𝐹𝐿 is the function of temperature and pressure at standard conditions, inner diameter of the
pipe, average compressibility factor, friction factor, length of the pipe and average
temperature of the fluid in the pipe.
21
temperature) is presented by a general Eq. 2-31, and Figure 10 illustrates the temperature loss
inside the pipeline.
−𝑈𝜋𝐷 2- 31
𝑇2 = 𝑇 + (𝑇1 − 𝑇)exp( 𝐿)
𝑚𝐶𝑝
Whereby, 𝑇2 is the final fluid temperature, 𝑇1 is the initial fluid temperature, 𝐿 is the
pipelength, 𝑈 is the overall heat transfer, 𝐶𝑝 is the specific heat at constant pressure 𝑇 is the
surrounding temperature and 𝐷 is the pipe diameter.
The heat transfer Coefficient depends on the type of pipe used, based on experience 𝑈 ranges
are given as; for insulated pipeline on seafloor 1<𝑈 (W/m2. K) <2 and for non-insulated
pipeline on seafloor 15<𝑈 (W/m2.K) <25.
(Guðmundsson, 2011)
Almost all flowing wells rates are controlled with wellhead choke; this valve is placed to
restrict flow in flow lines. Restricting the flow is essential as it helps to meet limitations of the
rate or pressure imposed by surface facilities, obtaining the desirable rate as well as prevention
of coning and sand production (Michael J. Economides, 1994).
In petroleum industry, separation is usually done to separate gas wells fluids into gaseous and
liquid components. Separation is done by using pressure vessel called separator which can be
22
vertical, horizontal or spherical. The products of gas separator include heavier hydrocarbon
liquid water gases and solids. Extraction of heavier hydrocarbons is vital due to their added
value.
Based on the content and treatment processes natural gas products can be named in various
ways such as; NGL (Natural Gas Liquids), LPG (Liquefied Petroleum Gas), LNG (Liquefied
Natural Gas), CNG (Compressed Natural Gas), Condensate (liquid). Figure 11 depicts natural
gas names in terms of constituents contained.
NGLs are produced within gas stream when producing natural gas reservoirs and they are
used in petrochemical feedstocks, cooking and for gasoline blending used as vehicle fuel, LPG
is NGL consisting of propane and butane (U.S Energy Information Administration , 2012).
LNG is predominated with methane, the gas is cooled at approximately to -162℃ at pressure
close to atmospheric pressure, and CNG is methane compressed at high pressure of 200-250
Bara.
The pressure drop in the piping systems depends on the amount of fluid flowing. This kind of
system analysis is done by analysing the entire production system as a single unit (Hossain,
2008). The approach on performing equilibrium flow calculations can be done choosing two
terminal nodes source (reservoir) and sink (separator), and then specifying a reference node or
23
point as shown in Figure 12, this is nodal analysis. The reference point preferred is either the
bottomhole or the wellhead.
Concurrent pressure calculations from source node to the reference node are made to generate
the availability curve (inflow), while counter-current pressure calculation from sink node to
the reference node generates required/demand curve (outflow). Figure 13 depicts the
availability and required curve. The nodes in the production system are illustrated in Figure
14.
Figure 13: Available and required curves during equilibrium analysis (Hossain, 2008)
24
Figure 14: Nodes in the production system (Hossain, 2008).
From this calculation one can be able to determine the pressure drop at the meeting point, if
the pressure drop is zero; this means that, the obtained rate is the natural flow rate of the well
(intersection point of the curves), when the pressure drop is positive then the flow is restricted
with the adjusting element (usually a choke valve), and if the pressure drop is negative value,
this means that, the reservoir pressure is not able to deliver the specified rate.
The availability curve keeps reduced as gas is produced while the required curve remains
fixed as time goes. At each production time a new pressure drop is obtained. The possible
pressure drops in the production system are shown in Figure 15.
Figure 15: Possible pressure losses in a production system, courtesy of Rawlins and Shellhardt
25
2.4.9 Production Scheduling
Production scheduling describes how the offtake of the gas from the reservoir is going to be
(production rate with time). In field development, production profile has to be calculated to
estimate the income due to hydrocarbon sales); therefore, production profile is vital factor
during economic evaluation of the field (Rodriguez-Sanchez*, et al., 2012).
Gas production involves three stages, the first stages is the build-up stage whereby the
production increases gradually with the increase of drilled wells, the second stage is the period
of stabilized production called production plateau, and the last stage is the decline stage
whereby the production decreases as more gas is withdrawn from the reservoir. Figure 16
shows the schematic production patterns of the gas reservoir (production rate against time).
Reservoir offtake could be done in two modes in this context named as mode A and mode B.
Mode A is run in a constant rate-pressure declines mode while mode B is run in a constant
pressure-rate decline mode, mode A is done when the field is a stand-alone field where there
is no infrastructure. Mode B is done on a satellite field using an existing infrastructure.
During production scheduling of the gas reservoirs, production plateau rate and plateau length
are the most related issues which should be addressed. How much gas will be produced and
for how long gas should be produced, it depends on the sales contract between a buyer and
producer, and sometimes is constrained with production facilities such as flow lines, pipelines
and separator.
Figure 16: Schematic production patterns of the gas reservoir (A. Rojey, 1997).
26
2.9.4.1 Estimation of the Plateau
As the rule of thumb, the first approximation of the production plateau rate is given by Eq. 2-
32. The Total Recoverable Reserves (𝑇𝑅𝑅) explained in the equation stands for the ultimate
cumulative gas production (𝐺𝑝𝑢 ) obtained by multiplying the initial gas in place (𝐼𝐺𝐼𝑃) with
the ultimate recovery factor (R.F) as shown in the Eq. 2-33.
𝐺𝑝𝑢 = 𝑅. 𝐹𝑥𝐼𝐺𝐼𝑃 2- 33
𝐺𝑝𝑢 and 𝐼𝐺𝐼𝑃 are expressed at standard conditions.
a) Pressure Maintenance
For gas reservoir pressure maintenance could be done with carbon dioxide injection, this
method has not yet been recognized and has not been practiced economically (Chawarwan
Khana, 2013).
Well completion is done by horizontal well completion and by making of the tubing to be
even larger. The advantage of horizontal completion of the well is that, it increases well
production by enlarging the contact with the reservoir.
Another issue on well completion is to increase tubing size which consequently changes the
𝐶𝑇 in the Eq. 2-28, and then enhances well production.
27
c) Well Stimulation
Stimulation of the well technique involves fracturing and acidizing. Stimulation eases the
fluid flow by altering the outside wellbore permeability. In case of fracturing, the surface area
of the formation is increased by injecting fluids at high pressure, while acidizing dissolves
rock formation so that the gas can be easily accessed. Fracturing and acidizing can also be
combined to increase acid rock contact.
Predominantly, as a general case, stimulation had great influence on changing the 𝐶𝑅 in the
back pressure equation, therefore enhances well production.
Provided that the amount of gas (plateau rate) drained from the reservoir to the surface is the
same, drilling of more wells create paths to the surface. Therefore, well rates and pressure
drop are reduced; as a result, the same rate is reduced for more time.
(Michael, 2015) Described the concept of wells in parallel and well in series trying to explain
the concept that; “more wells with less rate per well provides higher available pressure at the
wellhead, then provides less pressure loss in the reservoir and in the tubing per well”. In
parallel wells the total rate is equal to the summation of individual’s well rate, whereas the
total pressure drop and pressure drops of the individual wells are equal; the concept of parallel
wells is other way around true for series arrangement, for example in ESP stages in series.
Boosting of the gas flow is mainly done by installing of wellhead compressor. For the purpose
of boosting and sustaining gas production in order to achieve high recovery, subsea gas
compression is essential. The way it works, is by creating pressure drop through reduction of
the pressure at the production well thus, influencing reservoir gas expansion and hence the gas
flow to the production well (A. Muggeridge, 2013).
Other measures can be used which are necessary for reducing required pressure; these are
reducing separator pressure and increasing the size of flow line.
29
When the controlling element, let say choke is included in the system, equilibrium analysis is
done by considering the choke as equilibrium point. Thereafter, the choke position is
optimized (determining the pressure drop across the choke) with respect to the amount of gas
flow delivered.
When no adjustable element included in production system, and more than one wells are
producing and commingled to the common junction. Concurrent calculations from the
reservoir to the common junction and then counter current calculations from the separator to
the common junctions are done. Thereafter the pressure at the common junctions is adjusted
to have the same value. There are two approaches which can be considered during calculation,
the first is by assuming rates and performing calculations to adjust the pressure, the second
approach is by assuming the common pressure at the junction, and then adjust the sum of
individual rates to be the same as the rate of the main production pipe, in which there
connected (this calculation involves solving of linear equations).
Diverse commercial software may be used to perform flow assurance analysis, these software
include; HYSYS Simulator, PIPESIM steady-state, multiphase flow simulator and OLGA
dynamic multiphase flow simulator.
30
There are two common gas hydrate structures which are Type I and Type II, with the third
structure recently reported which is Type H. Type I are formed with simple molecules like
methane, ethane and hydrogen Sulfide while Type II are formed by larger molecules like
propane, and butane when combine with water to form diamond lattice structure (Covington,
et al., 1999).
Several methods can be done to suppress hydrate formation such as, keeping the temperature
higher, lowering pressure or dilution of water, the most effective way used is the injection of
Monoethylene Glycol (MEG) solution into a pipeline (Bokin, et al., 2010). Figure 19
illustrates zones of hydrate formation in the temperature-pressure curves, and how MEG
inhibits the hydrate formation in the system.
31
2.4.13.2 Flow Regimes
Several multiphase flow patterns are experienced in vertical, inclined and horizontal
components of the gas production system, as in Figure 20. Flow patterns transition depends on
topography fluid properties, pipe size, flow rates and corresponding pressure drop
(Ehizoyanyan, et al., 2015).
The following regimes are observed depending on the gas –liquid velocity and gas –liquid
ratio as described by (Multiphase Technology, Inc, 2015)
Dispersed bubble flow is observed at high velocity and low gas/liquid ratio
Smooth or wavy stratified flow is observed for low flow rates of liquid and gas
Rolling waves of liquids are formed for intermediate liquid velocities which eventually
increase to the point of forming plug and slug flow.
Annular flow is expected for very high gas velocities
Figure 20: Flow patterns in horizontal and vertical components (Stopford, 2011)
32
𝑉𝑙 2- 34
𝑦𝑙 =
𝑉
𝑉𝑔 2- 35
𝑦𝑔 =
𝑉
For the complete pipe occupied by two phases this expression is valid; 𝑦𝑔 = 1 − 𝑦𝑙
Liquid holdup is influenced by two mechanisms which are multiphase flow dynamics and
mass transfer between the two moving phases (gas and liquid). For the case of flow
dynamics, when gas and liquid are flowing along the pipeline, slippage will occur as the
consequence of gas travelling at faster velocity than liquid. In low points of the pipelines
liquid accumulations occurs since liquid is heavier than gas. For the case of mass transfer
between two moving phases, evaporation of fluids and condensation of gases are essential
circumstances to describe holdup.
2.4.13.4 Corrosion
Corrosion in pipeline system is very common, the problem is associated with the presence of
water and corrosive materials such as carbon dioxide (CO2) and hydrogen Sulfide (H2S).
Corrosion of steel is the electrochemical process which depends on the partial pressure of the
component, pH, temperature and concentration of corrosion products (Bokin, et al., 2010).
This kind of problem can be removed by controlling the variables that govern corrosion
occurrence, for example, removal of sour gases.
33
Figure 21: Cash flow versus time during field development (Svalheim, 2005)
The mostly incurred costs are Capital Expenditures (CAPEX), Operating Costs (OPEX),
Transport costs, and General Administration expenses. There are several methods which can
be used for evaluation of the project. These methods include Net Present Value (NPV),
Internal Rate of Return (IRR), and payback
3.3.1 NPV
The 𝑁𝑃𝑉 can be calculated using Eq. 2-36, and on decision making the project with the
biggest 𝑁𝑃𝑉 results is selected.
𝑛 𝐶𝐹𝑛 2- 36
𝑁𝑃𝑉 = ∑ 𝑛
𝑛=1 (1 + 𝑟)
Where, 𝑟 is the discount rate, 𝑛 is the number of years and 𝐶𝐹𝑛 Stands for the cash flow
3.3.2 Payback
This refers to the time to recover the invested money in the first year. This is the traditional
method that does not consider the time value. An exclusive criterion of decision is to select
the project with the shortest time of period in recovering the invested money (OH, 2004).
34
3.3.3 IRR
The 𝐼𝑅𝑅 may be defined as the discount rate that makes the 𝑁𝑃𝑉 equals to zero (0).
Calculations of internal rate of return do not incorporate environmental factors, such as
interest rate and inflation. Eq. 2-35 can be used to calculate 𝐼𝑅𝑅, by making 𝐼𝑅𝑅 the subject
of the formula.
𝑛 𝐶𝐹𝑛 2- 37
∑ 𝑛
=0
𝑛=1 (1 + 𝐼𝑅𝑅)
35
CHAPTER THREE: METHODOLOGY
Statoil has proposed the production strategy to produce the gas from Block 2 reservoirs as
shown in Figure 22. Three reservoirs which are Zafarani, Lavani Deep and Lavani Main have
been considered as per initial Statoil mode.
The mode of production is that, Zafarani will start producing with the plateau rate for almost
¼ of the total plateau length, thereafter Zafarani plateau rate will be reduced to 0.375 of the
total plateau rate. At the time when Zafarani plateau rate is reduced, Lavani Main and Lavani
Deep are put into production with the rates of 0.375 and 0.25 respectively, as fractions of the
total plateau rate in order to sustain the plateau rate.
According to the schematic production layout in (Holm, 2015), the initial production indicated
that, Zafarani will have five (5) wells, Lavani Main will have four (4) wells and, Lavani Deep
will have two (2) wells.
36
The field development study of the offshore Block 2 was done using few published data,
engineering calculations and reasonable assumptions. Detailed information about these three
reservoirs is given in Appendix A.
3.1 Consultations
Technical advices received from main supervisor and co-supervisors were useful for the study,
in which the guidance on how to perform calculations, information about the study and how to
write the report were provided.
The above estimate was made for Zafarani only. The same approach could be used for Lavani
Main and Lavani Deep; on the contrary, as per mode proposed by Statoil, Zafarani reservoir
was reduced to 0.375 of the initial plateau rate. Thereafter, Lavani Main and Lavani Deep
were both added into production with their rates fractioned into 0.375 and 0.25 of the plateau
rate respectively.
Engineering calculations was done using Microsoft excel. A built in Visual Basic for
Applications (VBA), was used for writing simple applications which facilitated
implementation of function into the worksheet to ease calculations. In addition, solver was
used solving of independent variables iteratively.
Pseudo pressure function calculations require PVT data, which was numerically used to
generate a table and a plot to obtain the general model, which relates the normal pressure and
pseudo pressure functions.
37
By using Lee Gonzalez correlation the gas viscosity was found, the gas was assumed to be
pure methane with the specific gravity of 0.55. The 𝑚(𝑝) was obtained by performing
numerical calculations and generating a table with the pressure interval of 50Bara. The
𝑚 (𝑝) vs 𝑝 curve behaves linearly for the pressure greater than 170Bara. The linear equation
obtained, is the general equation (model) to convert normal pressure to pseudo pressure
function.
The 𝐶𝑃𝐿 for Zafarani was calculated using two different approaches; the first approach was
configured in Figure 23(a) (when only Zafarani is producing and it was regarded as Zlong
(Zafarani long pipe)). The second approach was configured as in Figure 23(b) (when all
reservoirs are connected and it was regarded as Zshort (Zafarani short pipe)).
(a)
38
(b)
Figure 23: Layouts of production system (a) only Zafarani is producing (b) all reservoirs are
connected
Zafarani reservoir had a DST rate of 1.869MMSCMD, according to Statoil, it was not possible
to test the full potential of the well, the DST rate reported obtained was constrained to
production facilities.
In this analysis, in order to have some sort of reality the factor of 1.3 was multiplied to the
reported DST rate, and the resulting rate was assumed to be unchoked full open flow potential
of the well.
39
Therefore, by assuming a single well model with the combination of the IPR and Tubing
(drilling string length which combined the formation depth plus water depth) as shown on
Figure 24. The bottomhole equilibrium calculations with a separator pressure of 30 Bara was
performed, and the bottomhole pressure was chosen as the equilibrium point for network
solving. The concurrent calculations from the reservoir pressure(𝑃𝑅 ) to the flowing bottom
pressure (𝑃𝑤𝑓𝑢 ) upstream together with counter current pressure calculations from the
separator pressure (𝑃𝑠𝑒𝑝 ) to the flowing bottomhole pressure (𝑃𝑤𝑓𝑑 )downstream were then
performed.
Initially, the 𝐶𝑅 value guessed to be 0.31 𝑆𝑚3 ⁄𝐵𝑎𝑟𝑎2 . Thereafter the excel solver was ran to
adjust the value of 𝐶𝑅 while setting (𝑃𝑤𝑓𝑑 ) and (𝑃𝑤𝑓𝑢 ) to be equal. For (𝑃𝑤𝑓𝑢 ) and (𝑃𝑤𝑓𝑑 ) to
be equal their difference should be equal to zero.
There was no information about DST rate for Lavani Main and Lavani Deep. However, by
using rule of thumb (Eq. 2-32) their rates were obtained. The configuration of the single well
model (Figure 25) was made, this time including IPR, tubing equation, flowline and pipeline
equation. Consequently, with the separator pressure of 30 Bara and their respective reservoir
40
pressures, the bottomhole flow equilibrium calculation was done by adjusting 𝐶𝑅 while setting
(𝑃𝑤𝑓𝑢 )= (𝑃𝑤𝑓𝑑 ) using excel solver.
Initial guesses of 𝐶𝑅 values for Lavani Main and Lavani Deep were 0.3 and 0.25
𝑆𝑚3 ⁄𝐵𝑎𝑟𝑎2 respectively.
Figure 25: Configuration to estimate 𝐶𝑅 for Lavani Main and Lavani Deep
1. Material Balance Equation (MBE) for the tank model with dry gas
Having IGIP, initial pressure and temperature of the reservoir, simple dry gas MBE was used
for reservoir pressure decline calculations, as the reservoir was depleted with yearly based
time step.
41
The layout for performing equilibrium analysis is shown on Figure 26, where the system had 5
pressure points. The equilibrium analysis procedures were performed as follows;
To obtain the flowing bottomhole pressure the backpressure equation (IPR) was used.
To obtain wellhead pressure the tubing equation was used.
And for the flowline and pipeline the pipeline equation was used.
During simulation of plateau duration, the initial estimated 𝐶𝑅 value was adjusted to give the
reasonable plateau length which in this study was given a range of 20-40 years. Therefore
concurrent calculation of pressure losses from 𝑃𝑅 downstream to 𝑃𝑤ℎ and then counter current
calculations from 𝑃𝑠𝑒𝑝 upstream to the 𝑃𝑓𝑙 (entry of the flowline), the resulting pressure drop
(∆𝑃𝑐ℎ𝑜𝑘𝑒 ) between 𝑃𝑤ℎ and 𝑃𝑓𝑙 was optimized to maintain the plateau.
The simulation ran yearly from year zero (0) as time went on the ∆𝑃𝑐ℎ𝑜𝑘𝑒 kept reduced until
the value become negative. At this point, it indicated that, with the given rate the present
pressure could no longer produce the desired plateau rate. Using excel solver the (∆𝑃𝑐ℎ𝑜𝑘𝑒)
was set to zero (full open mode of the choke) while iterating with flowing bottomhole pressure
of the well. Iterations were done repeatedly with the degree of tolerance equals to 0.00001. On
iterating with 𝑃𝑤𝑓 , the well rate was reduced because the new 𝑃𝑤𝑓 was obtained, the reservoir
rates were then manipulated accordingly so that the ultimate production plateau could be kept
constant.
42
3.8 Prolonging the Plateau
The plateau length was prolonged by increasing the number of wells as shown in Table 4,
whereby four (4) sensitivity analyses on the revenue of the produced gas was done to decide
the optimum number of wells to be added.
1. Only Drillex (drilling expenditures) cost was used for the analysis
2. There was 5 % annual increase in the rig daily rate
3. The discount rate was assumed to be 8%.
4. The spread rate was roughly double the rig daily rate.
The drive decision model used was 𝑁𝑃𝑉 presented on Eq. 3-1.
The daily rig rate used was 590000 USD; this information was obtained from data published
by (IHS, 2015), whereby the maximum cost between February and November of 2015 was
taken. The presented daily rig rate was for water depth of greater than 2286 m.
The average natural gas price of 65.16 USD/Sm3 obtained used from January 2015 to July
2015 was used. This information was published by (U.S. Energy Information Administration,
2015).
43
3.10 HYSYS Simulator
HYSYS was mainly done to compare pressure drop obtained in HYSYS and the pressure drop
obtained with excel calculations. Also, to evaluate details of multiphase flow in the main
transportation pipeline such as; temperature, pressure, liquid holdup, and flow pattern
distribution and asses hydrate formation.
Assumptions made:
The HYSYS simulation was done in two difference cases, the first case was when only
Zafarani is producing and the second case was when all the three reservoirs are connected.
The setup was the same for both cases; the only difference was the length of the main
transportation pipeline. The former case had the length of 100 Km and the later had 90 Km.
The HYSYS setup (Figure 27) was a single pipeline and separator, together with the single
adjust, by specifying the inlet conditions and gas properties to the inlet stream of the main
pipeline, as well as the pipeline parameters (steps are shown on Appendix F), the simulation
was then ran, and the single pressure adjust imposed the inlet pressure to obtain the separator
pressure equal to 30 Bara.
The inlet specified rate was the plateau rate (13.6MMSCMD) which was converted to
2.39x104 Kg-mole/hr, and then inlet temperature of 40 ℃ was specified, these specifications
were similar for both cases. The inlet pressure was specified differently for the first case and
the second whereby 49.85 Bara and 48.29 Bara were specified respectively.
44
Figure 27: HYSYS Setup
45
CHAPTER FOUR: RESULTS AND DISCUSSION
Zafarani reservoir was able to produce 13.6MMSCMD rate for only 7 years, and beyond that,
this rate could not be produced since Zafarani reservoir pressure has declined to the point that,
the remaining pressure is not able to push the same gas rate out of the reservoir.
After initial 7 years of production, the total plateau rate was sustained by adding productions
from Lavani Deep and Lavani Main reservoirs. The magnitude between lines (Figure 28)
indicates the amount of gas produced by each reservoir.
In Figure 28, it is observed that, after 27 years of production from all the three reservoirs;
Lavani Deep came to end, and its field rate (qFieldLD) was reduced to a natural flow rate. At
this year, Zafarani rate (qFieldZ) was increased to sustain the plateau. In year 29, Lavani Main
reached the end, and its field rate (qFieldLM) was reduced to a natural flow rate, while
qFieldZ further increased to sustain the plateau.
46
Figure 29 illustrates how pressure declined with time, when natural gas was withdrawn from
reservoirs. The 𝑃𝑠𝑒𝑝 , 𝑃𝑓𝑙 and 𝑃𝑝𝑙 𝑜𝑟 𝑃𝑗 are constant with time, as the same plateau rate was
produced throughout the plateau length while the 𝑃𝑅 , 𝑃𝑤𝑓 and 𝑃𝑤ℎ were reduced with time.
The gaps between consecutive pressure points indicate the pressure drops between two
respective points. For example 𝑃𝑅 and 𝑃𝑤𝑓 indicated the drawdown, while 𝑃𝑓𝑙 and 𝑃𝑤ℎ
indicated pressure drop across the choke (∆𝑃𝑐ℎ𝑜𝑘𝑒). The drawdown pressure as well as
pressure drops in the tubing and across the choke kept reduced, Pressure drop reduction across
the choke represents opening of the choke valve in order to maintain the plateau. When the
choke position was zero (full open), this labels the end of plateau (𝑃𝑤ℎ =𝑃𝑓𝑙 ). In Figure 29 this
point is when the wellhead pressure (𝑃𝑤ℎ ) line intersects the inlet flowline pressure (𝑃𝑓𝑙 )
line.
47
4.1 Prolonging the Plateau
Table 5 presents the results on ploronging the plateau length by additional of new wells. The
general observation for all four cases was that, when the number of wells were increased, the
plateau rate also increased. This was due to increase of the available pressure to push more gas
out of the reservoir.
Cases Addded wells Added Gpu Added NPV Years Extended Added Profit
[Sm3] [USD] LM LD Zafarani Initial Zafarani Plateau [USD]
1 1 well each (LM and LD) 1.71E+10 86,880,245,496.29 3.1 3.1 3.5 7 86,498,358,441.58
2 2 wells each (LM and LD) 2.92E+10 134,973,236,792.01 7 7 5.7 7 134,209,462,682.59
3 1 well Zafarani 2wells each(LD LM) 3.09E+10 42,723,644,051.71 5 5 6.7 9 41,412,674,706.87
4 2 well Zafarani 2wells each(LD LM) 3.59E+10 170,979,353,050.12 4 4 8.7 11 169,416,637,179.83
In all cases, the Zafarani reservoir came to end sooner than the other reservoirs, for that
reason, qFieldZ was reduced to the natural field flow rate (uchoked) while qFieldLD was
increased to sustain the total field plateau rate (qFieldT). This observation was different in the
last year of the production plateau, whereby qFieldLM was increased while the qFieldLD
decreased to counterbalance the rates, in order to maintain the qFieldT (Figure 30).
Increasing number of wells to Lavani Main and Lavani Deep reservoirs, led to the increase of
Lavani Main and Lavani Deep plateau lengths, with a small increase qFieldT. Increasing
wells on Zafarani resevoir, influenced the initial Zafarani production plateau length. The
plateau length extended by 2 years for case 3, and 4 years for case 4 (Table 5).
The best case was the one which gave the highest profit when combined with economical
mode. In this study, case 4 was the best with profit of USD 169,416,637,179.83. The highest
amount of money compared to other cases. The best case prolonged plateau length by 8.7
years more, yielding the total plateau length of 39 years (as illustrated in Figure 30).
48
Figure 30: Best Case, Prolonged Plateau Length
49
Table 6: Pressure Drop Comparison
The temperature decline indicated heat loss to the surroundings (sea) when natural gas was
transported along the pipe. The pressure drop was influenced with pipeline length, friction loss
and gravity. For elevated segment of the pipe, gravitational acceleration had much influence
on pressure drop.
Figure 31: Temperature and Pressure Profiles for the HYSYS First Case
50
Figure 32: Temperature and Pressure Profiles for the HYSYS Second Case
Figure 33: Temperature, Pressure and Liquid Holdup Profiles for the HYSYS First Case
51
Figure 34: Temperature, Pressure and Liquid Holdup Profiles for the HYSYS Second Case
Figure 35: Liquid Holdup Profiles against Elevation for the HYSYS First Case
52
Figure 36: Liquid Holdup Profiles against Elevation for the HYSYS Second Case
53
4.2.2.5 Hydrate Formation
HYSYS Simulation indicated the formation of the hydrates in the main transportation
pipeline, gas stream and liquid stream. For all cases gas hydrate Type II was formed, this was
due to combination of natural gas larger molecules with “free” water present, as the
temperature decreases along the main pipeline. The results for hydrate formation are presented
in Table 9, Table 10, Table 11 and Table 12.
Table 9: Hydrate Formation in the Main Pipelines for HYSYS First Case
Table 10: Hydrate Formation in the Main Pipelines for HYSYS Second Case
Table 11: Hydrate Formation in the Streams for HYSYS First Case
54
Table 12: Hydrate Formation in the Streams for HYSYS Second Case
Hydrate
Hydrate Formation Formation Formation
Stream Name Formation Flag Temperature[℃] Pressure[℃] Type
InletSeparator Will Form 5.69 23.42 Type II
Gas Will Form 5.11 25.46 Type II
Liquid Will Form 5.81 22.08 Type II
InletPipeline Will Not Form - - -
55
CHAPTER FIVE: CONCLUSION AND RECOMMENDATIONS
5.0 Conclusion
Based on the simple approximated Excel model, when Zafarani, Lavani Main and Lavani
Deep were connected, the total plateau rate of 13.6MMSCMD could be produced for 31.35
years.
Initial addition of 2 wells to Zafarani, Lavani Deep and Lavani Main, will prolong the plateau
length for 8.7 years more giving the total plateau length of 39 years, with the additional profit
of 169,417 Million USD.
The HYSYS simulation indicated that; the pipeline system contained low liquid holdup which
increases gradually as temperature decreases, the phenomenon associated with condensation.
The flow regime obtained was dominated with stratified flow which later changes to stratified
wave flow, and there was formation of hydrates in the main transportation pipe, gas stream
and liquid stream.
The difference of the pressure drop results obtained in HYSYS and that obtained using simple
excel calculations indicates that the excel assumptions was not good to approximation.
5.5 Recommendations
It is recommended that; more detailed reservoir evaluation models should be used, as
material balance has several limitations. For example, MBE assumes reservoir as a
tank, and does not include spatial distribution of pressures and saturations.
It is recommended to account for all natural gas components to perform simulation
analysis, as well as including other expenditures in the economic model for realistic
calculations.
It is recommended to include network solving for HYSYS simulations and look for
hydrate formation mitigation measures.
It is also recommended that; analysis should be done in order to find ways to mitigate
hydrate formation in the production systems.
56
Appendices
The data in black colour were published by Statoil and are found in the Statoil website, (press
release) data in purple colour have been reasonably assumed. The reservoir pressures were
assumed with respect to their depths.
a b
p ρ µ Z 2p/µZ 2p/µZav delta P a*b m(p)
[Bara] [g/cm3] [cP] [-] [Bara/cP] [Bara/cP] [Bara] [Bara2/cP] [Bara2/cP]
0 0 0 0 0 0 0 0.00E+00 0.00E+00
50 0.028122 1.37E-02 0.951229 7676.20 3838.10 50 1.92E+05 1.92E+05
100 0.056244 1.48E-02 0.915991 14783.04 11229.62 50 5.61E+05 7.53E+05
150 0.084366 1.61E-02 0.898944 20697.14 17740.09 50 8.87E+05 1.64E+06
200 0.112488 1.78E-02 0.902385 24956.31 22826.72 50 1.14E+06 2.78E+06
250 0.140611 1.97E-02 0.924364 27444.95 26200.63 50 1.31E+06 4.09E+06
300 0.168733 2.20E-02 0.960289 28393.16 27919.05 50 1.40E+06 5.49E+06
350 0.196855 2.47E-02 1.005569 28178.31 28285.73 50 1.41E+06 6.90E+06
400 0.224977 2.79E-02 1.0568 27162.76 27670.53 50 1.38E+06 8.29E+06
450 0.253099 3.16E-02 1.111741 25635.38 26399.07 50 1.32E+06 9.61E+06
500 0.281221 3.59E-02 1.168974 23809.60 24722.49 50 1.24E+06 1.08E+07
550 0.309343 4.10E-02 1.227603 21837.71 22823.66 50 1.14E+06 1.20E+07
57
The 𝒎(𝒑) vs 𝒑 curve
58
Appendix C: 𝑪𝑻 𝑪𝑭𝑳 and 𝑪𝑷𝑳 Calculations
𝑪𝑻 𝑪𝑭𝑳 and 𝑪𝑷𝑳 for Lavani Deep
DIAMETER CHANGE
New diameter [m] 0.1016
New piping constant [Sm^3/Bara] 2.66E+04
DIAMETER CHANGE
New diameter [m] 0.3048
New piping constant [Sm^3/Bara] 3.28E+05
59
CALCULATION OF PIPING FLOW CONSTANT FOR LD
Internal Diameter [m] 0.68
Gas gravity [-] 0.55
Line length [m] 6200
Inlet temperature [K] 313.15
Outlet temperature [K] 303.15
Inlet pressure [Bara] 75
Outlet pressure [Bara] 35
Ave. Temperature [K] 308.15
Ave. Pressure [Bara] 55
Ave. Compressibility factor [-] 0.91893754
Friction factor [-] 0.00839477
Piping constant [Sm^3/Bara] 1.39E+06
DIAMETER CHANGE
New diameter [m] 0.6604
New piping constant [Sm^3/Bara] 1.37E+06
DIAMETER CHANGE
New diameter [m] 0.1016
New tubing constant [Sm^3/Bara] 4.38E+04
60
CALCULATION OF FLOWLINE CONSTANT FOR LM
Internal Diameter [m] 0.355
Gas gravity [-] 0.55
Line length [m] 5000
Inlet temperature [K] 328.15
Outlet temperature [K] 323.15
Inlet pressure [Bara] 82
Outlet pressure [Bara] 75
Ave. Temperature [K] 325.65
Ave. Pressure [Bara] 78.5
Ave. Compressibility factor [-] 0.91247613
Friction factor [-] 0.00971045
Flowline constant [Sm^3/Bara] 2.77E+05
DIAMETER CHANGE
New diameter [m] 0.3048
New flowline constant [Sm^3/Bara] 2.54E+05
DIAMETER CHANGE
New diameter [m] 0.6604
New piping constant [Sm^3/Bara] 3.59E+05
61
𝑪𝑻 𝑪𝑭𝑳 and 𝑪𝑷𝑳 For Zafarani
DIAMETER CHANGE
New diameter [m] 0.1016
New tubing constant [Sm^3/Bara] 2.02E+04
DIAMETER CHANGE
New diameter [m] 0.1016
New piping constant [Sm^3/Bara] 2.86E+04
62
CALCULATION OF FLOWLINE CONSTANT FOR ZAFARANI
Internal Diameter [m] 0.355
Gas gravity [-] 0.55
Line length [m] 10000
Inlet temperature [K] 318.15
Outlet temperature [K] 313.15
Inlet pressure [Bara] 82
Outlet pressure [Bara] 75
Ave. Temperature [K] 315.65
Ave. Pressure [Bara] 78.5
Ave. Compressibility factor [-] 0.90042696
Friction factor [-] 0.00971045
Piping constant [Sm^3/Bara] 2.00E+05
DIAMETER CHANGE
New diameter [m] 0.3048
New piping constant [Sm^3/Bara] 1.84E+05
DIAMETER CHANGE
New diameter [m] 0.6604
New piping constant [Sm^3/Bara] 3.41E+05
63
CALCULATION OF PIPING FLOW CONSTANT FOR ZShort
Internal Diameter [m] 0.68
Gas gravity [-] 0.55
Line length [m] 5000
Inlet temperature [K] 313.15
Outlet temperature [K] 303.15
Inlet pressure [Bara] 75
Outlet pressure [Bara] 35
Ave. Temperature [K] 308.15
Ave. Pressure [Bara] 55
Ave. Compressibility factor [-] 0.91893754
Friction factor [-] 0.00839477
Piping constant [Sm^3/Bara] 1.55E+06
DIAMETER CHANGE
New diameter [m] 0.6604
New piping constant [Sm^3/Bara] 1.52E+06
64
Appendix D: 𝑪𝑹 Estimates
Zafarani 𝑪𝑹
Lavani Main 𝑪𝑹
[Bara] [Sm3/D] [Bara] [Bara] [Bara] [Sm3/D] [Bara] [Bara] [Sm3/D] [Bara] Sm3/Bara^2 [Bara] [Bara]
360 1.90E+06 69.58 69.58 30 7.60E+06 36.21 46.99 7.60E+06 47.57 0.2457 0.00 154262.59
Lavani Deep 𝑪𝑹
Adjusted 𝑪𝑹 in Sm3/Bara2
Supporting Equations
𝐴
𝑟𝑒 =
𝜋 ∗ 𝑛𝑤𝑒𝑙𝑙
65
Piping constant vertical
66
Appendix E: Graphs for Prolonging the Plateau Length
First case
Second Case
67
Third case
̇ )
Conversion of Std Volumetric Flow (qg) to Molar flow (𝐧𝐠
3
qg 1.36E+07 Sm /day
RTsc/Psc 23.689 Sm3/kgmol
nġ 5.73E+05 Kg-mole/day
nġ 2.39E+04 Kg-mole/hr
68
Compositions Used for HYSYS Simulation
Elevations Profiles
First Case
69
Second Case
70
Procedures in HYSYS Simulation
Component list
71
Fluid Package
72
Inlet Stream, Inputs Specifications
Correlations
73
Heat Transfer
Segments
74
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