10th Engineering Excellence Forum

Energy Efficiency Managerial and Technical Challenges

Abu Dhabi Company For Onshore Oil Operations

ADCO
Case Study
Planning and Implementing Energy Efficiency
Improvements
By
Montaser Zamzam
ADNOC Energy Management Advisor
Abu Dhabi Men’s Collage Tuesday, March 18th 2014, ADMC Auditorium
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:‫قال تعالى‬

"‫المسرفين‬ ‫"ال تسرفوا إنه ال يحب‬

‫ القرآن الكريم‬-141 ‫سورة األنعام – اآلية‬

“Waste not by extravagance,

certainly He (Allah) likes not the extravagents”
“Noble Qur’an translation, sûrah Al-An’âm, chapter 141”
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“On land and in the sea, our forefathers lived and survived in
this environment. They were able to do so only because they
recognized the need to conserve it, to take from it only what
they needed to live, and to preserve it for succeeding
generations.”
“H.H Sheik Zayed bin Sultan Al Nahyan”
May Allah Almighty rest his soul in eternal peace

3
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Climate change concerns

Effect of 4m Sea Level Rise on Abu Dhabi

Ref: http://geology.com/sea-level-rise/
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Commitment and leadership

• Abu Dhabi has taken a responsible position on climate
change and wishes to establish a leadership position in
the region.

• ADNOC has responded to the challenge with an

aggressive response on energy efficiency & flaring in its
operation.

• ADCO has developed its own EnMS to be one of the

most energy efficient global oil and gas producers.
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Commitment to sustainability
• ADCO Mission
• “In meeting our Shareholders' aspirations, we will operate at
maximum efficiency and optimum cost with minimum impact
on the environment and we will avoid harm to people”

• ADCO HSE Policy

• Use best available environmental technology and practices;
progressively reduce emissions, discharges and wastes,
improve the efficient use of energy and conserve natural
resources
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ADCO Vision 2020

• A respected contributor to Abu Dhabi's sustainable future
through our stewardship of ADCO's resources. The five
enabling factors for ADCO to achieve its Vision 2020 are:
– Continuously achieving the highest standards of HSE performance in
the industry
– Developing technical capability and leadership competency to manage
an increasingly complex business
– Effectively evaluating and executing optimum reservoir development
and management strategies to maximize recovery while minimizing
cost
– Adopting and executing proven technologies and strategies that
enable the most efficient field development
– Ensuring the integrity of our facilities on a cost effective basis to
optimize system availability
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Energy management challenges

• Abundance of energy at subsidized prices
• Flat energy rate structure
• Culture of extravagance and waste
• Lack of energy competency
• Lack of market support to energy technology
• Fears of compromising the production
• No legislation to impose or promote energy efficiency
• Shortage of energy metering and control systems
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ADCO energy efficiency journey

2014 Must Do Objective
A journey of a thousand miles begins with
a single step in the right direction 2013 Certifying EnMS on ISO 50001

2013 Maintaining trial KPI

2012 Established Energy Management System

2012 Set energy objectives, targets & action plan

2012 Established corporate energy management policy

2011 Conducted ADCO Energy Comprehensive Survey

2010 Established ADCO Energy database and baseline

2010 Developed Energy Monitoring and Reporting System

2009 Conducted ADNOC Energy Management Strategic Study

2008 Developed ADCO Energy Management Program
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Energy management policy

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EnMS system certification

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Energy management system EnMS

CONTINUAL
ENERGY POLICY
IMPROVEMENT

ENERGY PLANNING

MANAGEMENT IMPLEMENTATION
REVIEW AND OPERATION

MONITORING,
INTERNAL AUDIT CHECKING MEASUREMENT AND
ANALYSIS

CORRECTIVE AND
PREVENTIVE ACTIONS
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ADCO EnMS framework

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Energy management strategies

1) Effective Organization 2) Planning

• Commitment & Leadership • Energy baseline

• Steering Committee • Objectives & targets
• Energy organization • Manual, procedures & guidelines
• Competencies & awareness • Action plan
• Resources • Energy Reviews
• Communication & outreach Checking &
• ISO 50001 certification
Verification
• Contractors performance
• Audit team
• Internal audits
3) Existing Assets
4) New Developments
• Design Guidelines • Monitoring & reporting
• Optimization Process • Opportunities implementation
• Energy synergies • Energy waste management
• Best Available Technique • Electrification
• Energy alternatives
• New technology
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Energy performance targets

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Business Plan
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Energy optimization in new projects

1 2 3 4 5 6 7 8 9 10 11 12 13

Initiate Screening Concept Define Execute Operate

OBJECTIVE OBJECTIVE OBJECTIVE OBJECTIVE OBJECTIVE

Explore Select the Ensure proper Ensure Confirm energy
feasibility of optimum definition of the purchased efficiency and
alternatives solution energy systems equipment are provide
considering energy efficient feedback
energy LCC

DELEVIRABLES DELEVIRABLES DELEVIRABLES DELEVIRABLES DELEVIRABLES

Initial Energy Energy

Review Optimization
Meeting-IEM Study – EO
Energy Report- Energy Report-
Energy Report- Energy Report- Energy Report-
ER3 ER4
ER1 ER2 ER5
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Technology to mitigate climate change

Technology contributions to reach 2DS vs. 6DS

60 6DS (57 Gt)

Power generation efficiency
and fuel switching 3% (1%)
50
Nuclear 8% (8%)

40 End-use fuel switching 12%

(12%)
Gt CO2

30 End-use fuel and electricity

efficiency 42% (39%)
Renewables 21% (23%)
20
CCS 14% (17%)
2DS (14 Gt)
10

0
2009 2020 2030 2040 2050

Energy efficiency is the most significant technology to increases

energy security and mitigates climate change
Source: International Energy Agency (IEA-ETP 2012)
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Power generation efficiency

• Phase-out inefficient on-site power generation plants (9 gas
turbines units, total capacity 187MW, simple cycle, efficiency
18-23%)
• Established reliable grid to supply power from high-efficiency
sources (hundreds of kilometers of high tension overhead
lines connected to centralized, high efficiency power plants)
• Study to supply the moving drilling rigs from the new grid via
portable power skid (to replace diesel generators)
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End use fuel switching

• Gas turbines used for mechanical drivers shall be replace by
electrical motors (long term opportunity)
• New electric crude oil heaters instead of conventional fuel gas
heaters (all new projects)
• Convert transport pool vehicles to natural gas fuel (NGV)
instead of diesel
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Fuel and electricity efficiency

• Improve process flow stability and eliminate slugging,
• Optimize injection compressors surge margin,
• Implement zero-flaring policy across assets,
• Adopt philosophy to operate equipment at best efficiency,
• Improve process control and tune-up Instrumentation,
• Improve combustion equipment efficiency,
• Carryout energy-focused maintenance program,
• Automate water injection clusters operation,
• Interconnect water injection clusters
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Renewable and clean energy

• Solar Power
– Solar power for thousands of wellhead control panels
– Solar power for cathodic protection systems for pipelines
– Domestic water heating in the accommodation camps
– Street lighting at remote sites

• Clean Energy
– Conceptual study is undergoing to recover hydraulic
pressure from crude oil line to Fujairah Main Oil Terminal
(15MW)
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Carbon capture & reinjection

• Project 1 : Commissioned the 1st CO2-EOR Pilot in the
Middle East using generated CO2 to Enhance Oil Recovery
(EOR) Project

• Project 2 : Utilize the Emirates Steel Industry (ESI) CO2

supplied by MASDAR in full field scale EOR Project
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General energy opportunities

• Conduct energy training for ADCO and its contractors,
• Monitor energy performance of major contractors,
• Encourage energy conservation in offices and employee
homes,
• Share energy conservation knowledge with others,
• Increase energy conservation consciousness of the
community,
• Communicate energy performance publicly
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The energy management pillars

optimize comfort zone; design to capacity;
Optimum Requirements avoid oversizing; bigger is not always better

single machine cannot do everything; provide

Flexible Design flexibility to accommodate variability; VFD is a
feasible option

consider LLC; energy efficient equipment may

Efficient Equipments have higher initial cost but lower operating
cost

run systems at best efficiency; stop when not

Effective Monitoring required; nothing consumes less than a device
that is turned off

people make or brake systems; people are the

Competent People brains; everybody's responsibility
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THE END