oil & gas basic (2)

8/7/2019 Oil & Gas Basic (2)

1/28

8/7/2019 Oil & Gas Basic (2)

2/28

1. Introduction to Oil & Gas Industry2. Myanmar Oil & Gas Industry

2.1 Historical Main Oil Field

2.2 Historical Development of Drilling &

Production

Hand-Dug Wells

Rotary Drilling System

2.3 Myanmar Oil & Gas Industry after

1963

3. How Drilling Works

3.1 How Oil is formed

3.2 Finding Oil

3.3 Preparing to Drill

3.4 Components of a Drilling Rig

3.5 Drilling Operation

3.6 Extracting the Oil

3.7 Transporting of Oil & Gas

4. Offshore Drilling Rigs & ProductionPlatforms

4.1 Offshore Jack-up Drilling Rig

4.2 Offshore Production Platform

5. Services in Oil & Gas Industry

6. Current Oil & Gas Activities inMyanmar

6.1 Onshore Activities

6.2 Offshore Activities

7. Out Look for Myanmar Oil & Gas

Industry

CONTENTSCONTENTSCONTENTSCONTENTS

8/7/2019 Oil & Gas Basic (2)

3/28

In this section we will discuss about the processes of finding,drilling and production of oil.

Oil is a fossil fuel that can be found in many countries around theworld.

Oil is formed from the remains of tiny plants and animals(plankton) that died in ancient seas between 10 million and 600million years ago. After the organisms died, they sank into the

sand and mud at the bottom of the sea.

Over the years, the organisms decayed in the sedimentary layers.In these layers, there was little or no oxygen present. Somicroorganisms broke the remains into carbon-rich compoundsthat formed organic layers.

3.3. How Drilling WorksHow Drilling Works3.3. How Drilling

WorksHow Drilling Works

3.13.1 How oil is formed.How oil is formed. (1/3)(1/3)3.13.1 How oil is formed.How oil is formed. (1/3)(1/3)

8/7/2019 Oil & Gas Basic (2)

4/28

8/7/2019 Oil & Gas Basic (2)

5/28

Movements in the Earth trapped the oil and natural gas in the reservoirrocks between layers of impermeable rock, or cap rock, such as granite

or marble.

3.13.1 How oil is formed.How oil is formed. (3/3)(3/3)3.13.1 How oil is formed.How oil is formed. (3/3)(3/3)

These movements of the Earth include:

Folding - Horizontal movements press inward and move the rocklayers upward into a fold or anticline.

Faulting - The layers of rock crack, and one side shifts upward ordownward.

Pinching out - A layer of impermeable rock is squeezed upward into the

reservoir rock.

Oil reservoir rocks (red) and natural

gas (blue) can be trapped by folding

(left), faulting (middle) or pinching

out (right)

8/7/2019 Oil & Gas Basic (2)

6/28

Finally, and most commonly, it is used seismology, creating shockwaves that pass through hidden rock layers and interpreting the waves

that are reflected back to the surface.

In seismic surveys, a shock wave is created by the following;

Compressed-air gun - shoots pulses of air into the water (for explorationover water)

Thumper truck - slams heavy plates into the ground (for exploration overland)

Explosives - drilled into the ground (for exploration over land) or thrownoverboard (for exploration over water), and detonated.

The shock waves travel beneath the surface of the Earth and arereflected back by the various rock layers. The reflections travel atdifferent speeds depending upon the type or density of rock layersthrough which they must pass.

3.23.2 Finding OilFinding Oil (1/5)(1/5)3.23.2 Finding

OilFinding Oil (1/5)(1/5)

8/7/2019 Oil & Gas Basic (2)

7/28

The task of finding oil is assigned to geologists.

Their task is to find the right conditions for an oil trap the rightsource rock, reservoir rock and entrapment.

Many years ago, geologists interpreted surface features, surface rockand soil types, and perhaps some small core samples obtained by

shallow drilling.

Modern oil geologists also examine surface rocks and terrain, with theadditional help of satellite images.

However, it can be used a variety of other methods to find oil such as;

Sensitive gravity meters to measure tiny changes in the Earthsgravitational field that could indicate flowing oil,

Sensitive magnetometers to measure tiny changes in the Earths magneticfield caused by flowing oil,

Sniffers (sensitive electronic noses) to detect the smell of hydrocarbons.

3.23.2 Finding OilFinding Oil (2/5)(2/5)3.23.2 Finding OilFinding Oil (2/5)(2/5)

8/7/2019 Oil & Gas Basic (2)

8/28

Finally, and most commonly, they use seismology, creating shock wavesthat pass through hidden rock layers and interpreting the waves thatare reflected back to the surface.

In seismic surveys, a shock wave is created by the following:

Compressed-air gun - shoots pulses of air into the water (for explorationover water)

Thumper truck - slams heavy plates into the ground (for exploration overland)

Explosives - drilled into the ground (for exploration over land) or thrownoverboard (for exploration over water), and detonated.

The shock waves travel beneath the surface of the Earth and arereflected back by the various rock layers. The reflections travel at

different speeds depending upon the type or density of rock layersthrough which they must pass.

The reflections of the shock waves are detected by sensitivemicrophones or vibration detectors hydrophones over water,seismometers over land. The readings are interpreted by seismologistsfor signs of oil and gas traps.


8/7/2019 Oil & Gas Basic (2)

9/28


8/7/2019 Oil & Gas Basic (2)

10/28


Although modern oil-exploration methods are better than previous

ones, they still may have only a 10-percent success rate for finding newoil fields.

Once a prospective oil strike is found, the location is marked by GPS

coordinates on land or by marker buoys on water.

8/7/2019 Oil & Gas Basic (2)

11/28

3.33.3 Preparing to DrillPreparing to Drill (1/8)(1/8)3.33.3 Preparing to DrillPreparing to Drill (1/8)(1/8)

Once the site has been selected, it must be surveyed to determine its

boundaries, and environmental impact studies may be done.

Lease agreements, titles and right-of way accesses for the land must

be obtained and evaluated legally. For off-shore sites, legal jurisdiction

must be determined.

Once the legal issues have been settled, the crew goes about preparingthe land:

The land is cleared and leveled, and access roads may be built.

As the main component of drilling mud is water , there must be a source

of water nearby. If there is no natural source, they drill a water well.

Pumps & water lines are installed.

They dig a reserve pit, which is used to dispose of rock cuttings and

drilling mud during the drilling process, and line it with plastic to protect

the environment.

If the site is an ecologically sensitive area, such as a marsh or wilderness,

then the cuttings and mud must be disposed offsite trucked away insteadof placed in a pit.

8/7/2019 Oil & Gas Basic (2)

12/28


Land clearing & preparing for BHP

Reserve mud pits

8/7/2019 Oil & Gas Basic (2)

13/28


Once the land has been prepared, several holes must be dug to make

way for the rig and the main hole. A rectangular pit, called a cellar, isdug around the location of the actual drilling hole.

The first part of holes is a large diameter hole in the cellar. It is lined

with large diameter pipe called conductor pipe.

Another hole is dug off to the side of the cellar and is lined with pipe.It is called the rat hole ( as a place to temporarily store a piece of drill

stream).

Cellar Cellar & rat hole

8/7/2019 Oil & Gas Basic (2)

14/28


MOVING RIG COMPONENTS TO THE SITE (Land Rigs )

Cranes, Trucks and river crafts are used

depending on location of the site.

Rig components are designed for portability

are easily loaded & unloaded. Oil Field

Trucks, Cranes & other trucks are used for

carrying rig components.

Rig components are moved into some

remote area by helicopters.

8/7/2019 Oil & Gas Basic (2)

15/28


MOVING RIG COMPONENTS TO THE SITE

( Offshore Rigs )

Mobile offshore rigs ( such as jackup rig,

submersible rig, semisubmersible rig,

and drill ship ) are used at offshore

blocks.Jackup Rig floats when moving to thelocation. At site, huge legs are cranked

down until they contact the sea floor

and penetrate some feets into the

seabed. Jackup rigs are limited to drill

in water depth of 350 ft.

Submersible Rig It floats on the hullwhile towing to the site. The hulls are

flooded and come to rest on bottom at

the site. S Rigs are also limited to drill

in shallow waters.

Jackup Rig

8/7/2019 Oil & Gas Basic (2)

16/28


MOVING RIG COMPONENTS TO THE

SITE ( Offshore Rigs )

Semisubmersible Rig It issimilar to submersible. It may

have two or more hulls upon

which the rig floats while towingto the location. Once on location

the hulls are flooded but they do

not settle to the bottom. They

submerge only to a depth a little

below the water surface.

Semisubmersible Rigs are often

selected because of their

excellent stability in rough, deep

seas.

Semisubmersible Rig

8/7/2019 Oil & Gas Basic (2)

17/28


MOVING RIG COMPONENTS TO THE SITE ( Offshore Rigs )

Rig Move for Jack-up Rig

Rig Move forSemisubmersible Rig

8/7/2019 Oil & Gas Basic (2)

18/28


MOVING RIG COMPONENTS TO THE SITE ( Offshore Rigs )

Drill Ship It is shaped just like any ocean-going ship. Howeverdrilling equipment ( with other modification ) make a drill ship

distinctive. Drill ships are the most mobile because of its self-

propelled function.

Drill Ship

8/7/2019 Oil & Gas Basic (2)

19/28

3.43.4 Components of a Drilling RigComponents of a Drilling Rig (1/9)(1/9)3.43.4 Components of a Drilling RigComponents of a Drilling Rig (1/9)(1/9)

8/7/2019 Oil & Gas Basic (2)

20/28

8/7/2019 Oil & Gas Basic (2)

21/28


1

2

3

1. Drawworks

2. Crown Block

3. Mechanical PowerDrive System

8/7/2019 Oil & Gas Basic (2)

22/28

Traveling block: an

arrangement of pulleys orsheaves which moves up or

down in the derrick again up

to the crown block.

Drilling Line

Fastline - the partof the drilling line

running out of the

drawworks up to the

crown block.

Dead Line - thepart of the line from theend of the crown block

to the secured wire-

rope supply reel.


8/7/2019 Oil & Gas Basic (2)

23/28

Swivel: a mechanical device that suspends the weight of the drillstring, & permits the drill string to rotate. The rotary hose ( kellyhose ) is attached to the side of swivel and drilling mud enters theswivel through this hose.

Drill Bit : is a device attached to the end of the drill string thatbreaks apart the rock being drilled. It contains jets through whichthe drilling fluid exits.

Drill String : The assembly of members between the swivel and

drill bit including kelly,drill pipe and drill collars.Kelly : four- or six-sided pipe that transfers rotary motion of therotary table to the drill string. Kellys are about 40 feet long.


8/7/2019 Oil & Gas Basic (2)

24/28

Drill Pipe: joints of hollow tubing used to

connect the surface equipment to thebottom hole assembly (BHA) and acts as aconduit for the drilling fluid. In thediagram, these are stands of drill pipewhich are 2 or 3 joints of drill pipeconnected together and stood in the derrickvertically, usually to save time while

Tripping pipe.A joint of drill pipe is 30 ft long. Each endof each joint is threaded. The female end iscalled box and the male end is called pin . These threaded ends are called tooljoints which are welded onto the outsideof the drill pipe body.

Drill Collars : are special heavy-walledpipes. They are heavier than drill pipes andused on the bottom part of the drill stringto put weight on the bit. The threads arecut directly onto and in the drill collars asthe wall is so thick.


8/7/2019 Oil & Gas Basic (2)

25/28

Rotary Table (turntable) - rotates the drill string along with theattached tools and bit. It is part of the drilling apparatus and powered

by electric motors or chain drive.Mud pump: reciprocal type of pump used to circulate drilling fluidthrough the system.

Mud tanks: often called mud pits, provides a reserve store of drillingfluid until it is required down the well bore. It pumps drilling mud(mixture of water, clay, weighting material and chemicals, used to lift

rock cuttings from the drill bit to the surface) under pressure throughthe kelly, rotary table, drill pipes and drill collars.

Shale shaker: separates drill cuttings from the drilling fluid before itis pumped back down the borehole.


8/7/2019 Oil & Gas Basic (2)

26/28

Centrifuge: an industrial version of the

device that separates fine silt and sandfrom the drilling fluid.

Degasser: a device that separates air

and/or gas from the drilling fluid.

Desander / desilter: contains a set of

Hydrocyclones that separate sand andsilt from the drilling fluid.

Blowout preventer (BOP) - high-pressure

valves (located under the land rig or on

the sea floor) that seal the high-

pressure drill lines and relieve pressurewhen necessary to prevent a blowout

(uncontrolled gush of gas or oil to the

surface, often associated with fire)


8/7/2019 Oil & Gas Basic (2)

27/28

Centrifuge: an industrial version of the device that separates fine

silt and sand from the drilling fluid.Elevators: a hinged device that is used to latch to the drill pipe orcasing to facilitate the lowering or lifting (of pipe or casing) into or

out of the borehole.

Chain tongs: wrench with a section of chain, that wraps aroundwhatever is being tightened or loosened. Similar to a pipe wrench.


8/7/2019 Oil & Gas Basic (2)

28/28

The midstream sector includes;Transporting of crude oil, natural gas, natural gas liquids

(LNGs, mainly ethane, propane and butane) and sulphur

To store & market

The downstream sector is used to refer to;

The refining of crude oil

The selling and distribution of natural gas and products derived

from crude oil

( such as liquified petroleum gas (LPG), gasoline or petrol, jet fuel,

diesel oil, other fuel oils, asphalt and petroleum coke )

1.1. The Introduction to Oil & Gas IndustryThe Introduction to Oil & Gas Industry 3/33/31.1. The Introduction to Oil & Gas IndustryThe Introduction to Oil & Gas Industry 3/33/3

oil & gas basic (2)

Documents