oil & gas (1)

1. Introduction to Oil & Gas Industry

2. Myanmar Oil & Gas Industry2.1 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 Works3.1 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 & Production Platforms

4.1 Offshore Jack-up Drilling Rig

4.2 Offshore Production Platform

5. Services in Oil & Gas Industry

6. Current Oil & Gas Activities in Myanmar

6.1 Onshore Activities

6.2 Offshore Activities

7. Out Look for Myanmar Oil & Gas Industry

CONTENTSCONTENTSCONTENTSCONTENTS

Oil & Gas Industry (Petroleum Industry) is involved in the processes of exploration, extraction, refining, transporting (often with oil tankers and pipelines), and marketing petroleum products.

Petroleum in common usage includes both crude oil and natural gas.

The industry is usually divided into three major components: upstream, midstream and downstream. Midstream operations are usually included in the downstream category.

Both crude oil and natural gas are predominantly a mixture of

hydrocarbons and other organic compounds.

1. 1. The Introduction to Oil & Gas IndustryThe Introduction to Oil & Gas Industry 1/31/31. 1. The Introduction to Oil & Gas IndustryThe Introduction to Oil & Gas Industry 1/31/3

http://en.wikipedia.org/wiki/Hydrocarbon_exploration

http://en.wikipedia.org/wiki/Extraction_of_petroleum

http://en.wikipedia.org/wiki/Oil_refinery

http://en.wikipedia.org/wiki/Petroleum_transport

http://en.wikipedia.org/wiki/Oil_tanker

http://en.wikipedia.org/wiki/Pipeline_transport

The upstream sector includes;

Searching for potential underground or underwater oil and gas fields,

Drilling of exploratory wells, and

Recovery of the crude oil and/or raw natural gas to the surface.

The upstream oil sector is also known as the exploration and production (E&P) sector.


The midstream sector includes;

Transporting of crude oil, natural gas, natural gas liquids (LNGs, mainly ethane, propane and butane) and sulphurTo 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 )


Myanmar is a resource rich country and the largest country in the mainland of South East Asia.With over 676,577 square Kilometres, Myanmar shares borders with

Bangladesh & Indian the north west.

China on the north east. Loas & Thailand on the south east.

It also has a coastal strip of 2832 km facing to the Bay of Bengal and Indonesia. Myammar's hydrocarbon provinces are located both in onshore and offshore.

2. 2. Myanmar Oil & Gas IndustryMyanmar Oil & Gas Industry 1/41/42. 2. Myanmar Oil & Gas IndustryMyanmar Oil & Gas Industry 1/41/4

Prtroleum Industry in Myanmar evolved from Yenangyaung area of central Myanmar since around the 10th century of early Bagan period.There is a legend that one of the early Myanmar Kings brought captives from the Arakan Coast to Yenangyaung. These men developed the industry and became the first Twinzayos, the hereditary of oil-well owners.The 13th century crude oil were extracted from shallow hand-dug wells in Yenangyaung.After the British colonialist visited to Yenanggyaung around 1797,they began having interest in the traditional extraction way of petroleum . The first Machine -Drilled- Well in Yenangyaung was completed in1887.The first Myanmar crude oil was exported in 1853. The crude oil from Myanmar was also imported to England two years before 1859.


Prtroleum Industry in Myanmar evolved from Yenangyaung area of central Myanmar since around the 10th century of early Bagan period.

After Drake's well in Pennsylvania struck oil, the development of the petroleum industry in United States provided a more convenient source of supply for England and the demand from Myanmar was soon disappeared.

In 1871 the first foreign oil company, ROC (Rangoon Oil Company) was established & carried out the refining & marketing.

In 1886, Burma Oil Company (BOC), a British company, was established in Yenangyaung.


The first Machine-Drilled Well was completed in 1887 and the first Rotary-Drilled was introduced in 1922.

Another giant oil field "Chauk" was discovered in 1902. Some other 30 small oil companies were active before World War II.

The national oil company was established on 1st Jan: 1963 to act as the sole operator of petroleum industry of Myanmar.

The name was changed in accordance with its structure and its responsibilities to People's Oil Industry (1964),Myanmar Oil Corporation(1970) and Myanmar Oil and Gas Enterprise (1989).

Myanmar Oil and Gas Enterprise (MOGE) is trying to explore and produce petroleum by its own effort and has entered into PSC contacts with multinational oil companies since 1989 to introduce modern technology and foreign investment.

2 2 Myanmar Oil & Gas IndustryMyanmar Oil & Gas Industry 4/44/42 2 Myanmar Oil & Gas IndustryMyanmar Oil & Gas Industry 4/44/4

The YENANGYAUNG FIELD

• It was situated on about 400 feet above sea-level on the east bank of the Irrawaddy 360 miles north from Yangon. It was the first oil field in which plectroleum was obtained in Myanmar.

• The Twinzayos, the hereditary owners of the right to work the oil. Until 1850 selling a well to anyone who was not a Twinzayos was not allowed. Later the rule was relaxed and the practice of selling or leasing became fairly general.

• King Mindon Min acquired 120 sites by marriage and 17 more under mortgage. These 137 sites became the property of the British Crown after the third Burmese-British war and had been leased to BOC.

• The peak was reached in 1918 at 16000 BOPD (Barrel of Oil per Day). About 4000 wells had been drilled & yielded oil from depths varying from a few hundred to five thousand feet. The deepest well was over seven thousand feet.

2.1 2.1 HistoricalHistorical Main Oil Fields Main Oil Fields 1/51/52.1 2.1 HistoricalHistorical Main Oil Fields Main Oil Fields 1/51/5

The SINGU FIELD (Chauk Field)

• It lies at the east bank of the Irrawaddy about 30 miles north of Yenangyaung.

• It is the first discovery of oil by BOC & The peak oil production of Chauk field occurred in 1941 at 12,800 BOPD.

• Over a thousand wells had been drilled from about 1400 feet down to nearly 5000 feet.


The LANYWA FIELD

• It lies on the west of bank of the Irrawaddy & it was the northernmost continuation of Singu field. It's reclamation had been done by the Indo-Burma Petroleum Company.

• The field first became important in 1928 and it's production reached about one-sixth of that of Singu Field. More than a thousand wells had been drilled.

Fig - 2 . Part of the earlier Yenangyaung Oil Field

Fig - 3 . Reclamation at Singu & Lanywa


The MINBU FIELD ( MANN Field) • It lies at on the west bark of the Irrawaddy, about twenty to

thirty miles south of Yenangyuang. It includes the well-known mud volcaroes of Minbu.

• At that time well were yielding small productions of oil and the field never became great important.

• But MOGE found new oil fields in 1970 the field became the most productive oil field at 1984-85.


The INDAW FIELD

• It lies in upper Chindwin District & on the east of the Irrawaddy about 175 miles north of Main oil fields. It was located in densely-forested area.

• It was discovered & developed by Indo-Burma Petroleum Company and had yield a small production about 20 years.

The YENANMA FIELD • It lies in Thayetmyo District to the west of the Irrawaddy

about 50 miles south of Yenangyaung.


The PYAE GAS-FIELD

• It lies in Thanyetmyo District to east of the Irrawaddy.• A large quantities of natural gas under high pressure were

found and developed by the Indo-Burma Petroleum Company.• The natural gas was being used by an associated company for

fuel in cement factory.

Perhaps there is no oil-producing area in the world which efforts so complete a picture of development from the primitive to the modern as Myanmar.

Petroleum was first won by the hand-dug wells, then by cable-tool drilling by which modern industry was built up.

The rotary drilling system was established in 1922 & the complete electrification of main fields fall into an orderly sequence of progress.

2.2 2.2 HistoricalHistorical Development of Drilling & Production Development of Drilling & Production 1/61/62.2 2.2 HistoricalHistorical Development of Drilling & Production Development of Drilling & Production 1/61/6

HAND-DUG WELLS

A number of hand-dug wells could still be seen in operation by the Burmese until the oil fields fell into the hand of the Japanese.

At first quite shallow, later the depths of 400 feet had been reached.

Armed with a shovel and crowbar the driller was lowered into & raised from the well by a gang, hauling on a rope up and down an inclined plane.

The adoption of well-made gas-helmets supplied with air by pump & hose enabled the driller to work at depth for long spell.

The oil gradually drained into the bottom of the well after the digging had been completed. The oil was periodically collected in bucket or old Kerosine tin.



Earlier Myanmar hand-dug wells


One of the old hand-dug wells at Yenangyaung

CABLE-TOOL DRILLING SYSTEM

• The rock was pounded & broken up by repeated blows from heavy drilling tools, and the spoil (mixed with water) was bailed out at intervals.

• To prevent collapse, the hole is lined with steel pipe (or) casing inserted joint by joint to follow the tools. These strings of casing was limited by friction to a few hundred feet.

• When further progress was impossible with one string, another string of smaller diameter was inserted inside it.

• A well of 3000 feet deep might required about five different

sizes of casings, one within another.


ROTARY DRILLING SYSTEM

• It was well established in the united states by about 1920. It was first tried systematically in Myammar about two years later and had largely superseded cable-tool drilling by 1926.

• In this method, a drilling bit is secured to the bottom of a string of drill-pipes and rotated by surface machinery. The drilling bits cuts & grinds its way through the rock instead of pounding.

• A stream of fluid (drilling mud), pumped down through the drill-pipe, cool the drilling bit and returning upward outside the pipe carries the rock cutting to the surface.

• the rotary method is theoretically continuous. Stoppages are necessary

from time to time in order to renew the worn drill bit.

• In its upward passage, the stream of drilling mud builds up against the wall of the hole aided by the hydrostatic pressure of the liquid column.

• It supports the hole against caving & drilling can be continued to great depth before the insertion of casings. Successful drilling operation depends greatly on the quantity of drilling mud.


Myanmar national oil company was established in 1963 after the Myanmar Government took over the entire petroleum industry from BOC. Now under Ministry of Energy (MOE), there are three state economic enterprise and one department.

Energy Planning Department : Coordinate/ negotiate the development (EPD) program in energy sector.

Myanma Oil and Gas Enterprise : Oil & gas exploration / production / (MOGE) distribution (Upstream activities)

Myanma Petrochemical Enterprise : Refineries / Fertilizer Plants / LPG (MPE) Plant / Methanol Plant / etc.

Myanma Petroleum Products Enterprise : Marketing / distribution / of (MPPE) petroleum products.

2.3 2.3 Myanmar Oil & Gas Industry After 1963 Myanmar Oil & Gas Industry After 1963 66/6/62.3 2.3 Myanmar Oil & Gas Industry After 1963 Myanmar Oil & Gas Industry After 1963 66/6/6

Prior to 1963, oil was extracted mainly from Chauk and Yenangyaung Oil Fields in the Central Myanmar Basin with an annual production of 3.99 million barrels.

After the establishment of the national oil enterprise, new oil and gas fields were discovered increasing the yearly production, which peaked at 11.20 million barrels in 1984-85.

Currently MOGE is producing about 20,000 bopd and 1300 mmcfd gas from onshore oil and gas fields. Oil is sent to the nearest refineries by barges and pipelines.

The produced gas is transmitted to gas turbines, fertilizer plants, methanol plant, LPG plant, cement factories,CNG stations and other industries by pipelines.

Myanmar is exporting natural gas 1100 mmcfd to Thailand from Yadana and Yetagon Offshore Platform.


Yadana Offshore production Platform

Yetagun Offshore production Platform


oil & gas (1)

Documents