BUILDING A PETROLEUM COMPLEX

VIPUL KILEDAR(121445),SANTOSH KUMAR(121428),PANKAJ NISHANT (121420)

Vision

The petroleum industry must be highly automated. It also include profitability & sustainability. It must be simpler and safe to operate.

Oil in IndiaIndia had about 125 Million metric tonne of

proven oil reserves.India's crude oil reserves are located in the

western coast (Mumbai High) and in the northeastern parts of the country

offshore reserves lies in Bay of Bengal and in the state of Rajasthan.

ONGC Corporation is the largest oil company accounting for roughly 75% of the country’s oil.

Reliance Industries, a privately owned Indian company, will also have a bigger role in the natural gas sector

UP STREAM MIDSTREAM DOWNSTREAM

Introduction to Upstream

Reserves – Formation and Importance

Production – The First Step in Adding Value

The Unconventional Future of Upstream

Introduction to Midstream

Processing – The Next Step in Adding Value

Transportation

Storage

Introduction to Downstream

Refining – Products and Participants

Consumption – The Final Step in Adding Value

Marketing and Retail

Upstream = E&PThe upstream segment of the business is also

known as the exploration and production (E&P) sector.

deals with recovering and producing crude oil and natural gas.

The exploration sector involves obtaining a lease and permission to drill.

Petroleum Exploration License (PEL) and Petroleum Mining Lease (PML)

PEL is granted for a period of 7 years in onland/ shallow water areas

And 8 years in deepwater and frontier areas for exploration activities .

PML is normally awarded for 20 years for producing Hydrocarbons as per The Oilfields Regulation and Development Act, 1948 P&NG Rules, 1959

PEL / PML for offshore exploration and production is granted by the Union Govt.

In case of onland blocks, PEL / PML is granted by the concerned State Govt. on the basis of recommendation made by the Union Govt.

Drilling

Drilling is physically creating the “borehole” in the ground that will eventually become an oil or gas well.

This work is done by rig contractors and service companies in the Oilfield Services business sector.

Production

The production sector of the upstream segment maximizes recovery of petroleum from subsurface reservoirs.

Production brings the oil to the surface.

An ‘Unconventional’ Upstream

Unconventional resources are considered by the petroleum industry to be any resources extracted, or produced, by any method other than the traditional vertically drilled well.

Midstream

As its name implies, the midstream segment encompasses facilities and processes that sit between the upstream and downstream segments.

Activities can include processing, storage and transportation of crude oil and natural gas.

Processing.

Processing oil and gas liquids into marketable products

is the beginning of the midstream segment of the business

Field Processing

Field processing is the first phase of oil and gas processing,

starting in the onshore or offshore production field.

Field Processing

Measure the production rate

Separate the oil, gas, and water

Remove impuritiesTemporarily store the crude or gas.

Here, surface facilities are designed and installed that

Fractionation

Fractionation plants, which remove natural gas liquids (NGL) from the produced oil and gas are also a component of the midstream activities.

These NGLs are used as blend components in a refinery and used as fuel or feedstock in the manufacture of petrochemicals.

TransportationPipelines

Marine Transportation:

tankers or vessels

Land Transportation

Land transportation methods include pipelines, truck and rail.

Natural Gas Transportation

Natural gas, which flows at much higher pressure than crude oil, is most often transported in large-diameter pipelines called transmission lines.

Pipelines, Trucks, and Railroad

While pipelines are the safest and most efficient way to transport oil and gas, trucks and rail are more flexible in terms of timing and destination.

Storage - Crude Oil•bulk terminals •refinery tanks•holding tanks

Storage facilities for

crude oil and refined

liquids include:

Storage - Natural Gas

Because of its extremely high pressure, natural gas must be stored in underground reservoirs until it is ready to be transported to market.

Downstream

Processing, transporting and selling refined products made from crude oil is the business of the downstream segment of the oil and gas industry.

Key downstream business sectors include:• Oil Refining

• Supply and Trading• Product Marketing & Retail

Petroleum Products

Light petroleum products

Medium petroleum products

Heavy petroleum products

The resulting petroleum products are often classified as

Light Products

Gasoline (or petrol)

• Naphtha - used as a solvent or paint thinner.

Liquid petroleum gas(LPG)

Medium Products

Middle Distillates

Diesel fuel

Kerosene and related jet aircraft fuels

Heavy Products

Fuel oils•Lubricating oils•Paraffin wax•Asphalt and tar•Petroleum coke

Consumption

Marketing and Retail

Product marketing is the business of finding and supplying customers.

Cost of building up an petroleum complex

New Builds vs. Upgrades Oil refining is a capital-intensive business. Planning, design ing, permitting and building a new medium-sized refinery is a 5-7 year process, and costs $7-10 billion, not counting ac quiring the land. The cost varies depending on the location (which determines land and construction costs† ), the type of crude to be processed and the range of outputs (both of the latter affect the configuration and complexity of the refinery), the size of the plant and local environmental regulations. The cost of the now shelved project by Irving Oil to build a sec ond 300,000 bpd refinery in Saint John, NB was estimated at $8+ billion. The projected cost of the proposed 550,000 bpd Kitimat Clean refinery is $13 billion ..

Examples of an petroleum complex

Jamnagar refinery is the world's largest oil refinery with an aggregate capacity of 1.24 million barrels per day (bpd). The refinery complex is located at Jamnagar in Gujarat, India. It is owned and operated by Reliance Industries.The refinery consists of hydro-desulphurisation, catalytic reforming, fluid catalytic cracking and delayed coking units. It also includes sulphur recovery, hydrogen generation, merox treating and TAME (Tertiary Amyl Methyl Ether) units.The refinery complex is spread across 7,500 acres and has more than 50 process units which refine the basic feedstock, crude oil to obtain various finished products.The world's largest refinery took three years to complete and involved about $6bn of investment