tecon engineering - petroleum clubpetroleumclub.ro/.../chandrasekhar_ramakrishnan-tecon.pdf ·...

Engineering, Project Management and Consulting for Industrial Plants

Dr. Chandrasekhar Ramakrishnan

Romania Upstream Conference 2011

Tecon Engineering

Wellhead Compression –Exploiting Remaining Gas Reserves with

Limited CAPEX

Tecon – Copyright 2011

Member of ILF-Group

page 2

• Company Profile

• Abandoned Gas Wells

• Concept of Wellhead Compression

• Technical Solutions

• Increased CAPEX or OPEX?

• Experience Showcase

• Summary and Conclusions

Wellhead CompressionContents of Presentation

Content


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page 3

Overview

• Austrian Engineering & Consulting Company, Member of the ILF-Group

• Founded in 1998, present in Romania since 2007

• Focus on innovation, cost effectiveness, safety and environmental compatibility

• Engineering services for all project phases in the business areas:

Wellhead Compression Company Profile

REFINERY

PETROCHEMISTRY

UP-STREAM


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page 4

Definitions

according to Oil&Glossary:

to abandon a well

to cease efforts to produce oil or gas from a well when it becomesunprofitable……

Wellhead Compression Abandoned Gas Wells


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page 5

Current Situation

• Approximately 20 – 30 million abondoned wells worldwide

• Most nations do not keep records on these

• Potential safety&environmental hazard



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page 6

Technical Approach

• Exxon Mobil publication *:

…..Wells were abandoned or recompleted when unable to produce intothe 6.89 MPa line pressure. Others were abandoned for the same reasonat pressures as low as 2.07 MPa…..

.....A well abandoned because it would not flow into a 1.7 MPa gatheringsystem (one stage of compression) would leave about 3.4 MPa bottom-hole-pressure (BHP)…..

* Duggan J.O., Langston R.B., Mobil E&P U.S. Inc.: „Gas Well Completions Into Low-BHP Reservoirs Add Reserves“, Proceedings, SPE Gas Technology Symposium, 13-15 June 1988, Dallas, Texas



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page 7

Consequences

• Significant gas reserves still waiting to be produced

• Profitability to be re-assessed

• Technical feasibility to be re-assessed

• Wellhead Compression asinteresting technical solution!


Gas prices 1973-1999 from Bureau of Labor Statistics (BLS)

Gas price before 1973 (annual) from U.S. DOE

Recent weekly prices (year 2000 and after) from U.S. DOE

(source: www.zfacts.com )


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page 8

Wellhead Compression Concept of Wellhead Compression

Wellhead Compression

• Highly valuable technical solution for:

Gas production with WHFP as low as 1 bar(g)

Pressure increase on the well site

Remote locations without any infrastructure

Design life time >> operating time on single wellhead, easy relocation to be envisaged


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page 9

Basic Requirements for Equipment

• Robust compressor with combined drive

• Easy to install/relocate, potentially skid-mounted, etc.

• Compliant with environmental standards, ATEX regulation, etc.

• Appropriate material selection for increased flexibility

• General pressure requirements:

Wellhead Compression Concept of Wellhead Compression

1 - 15 bar(g) 10 - 26 bar(g)


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page 10

Suitable Compressor Types

• Techno-Economic Optimization (e.g. chart below)

• Most suitable compressor types: Reciprocating or Rotary-Screw

• Flow rate dependent on suction pressure

Wellhead Compression Technical Solutions


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page 11

Advantages / Disadvantages of Compressor Types

Reciprocating Rotary-Screw

+ Flexible regarding gas composition + Flexible regarding gas composition

+ High Efficiency + Tolerant to entrained liquids

- Vibrations + Compact Design

- Sensitive to liquid entrainment - Lube Oil System Required

Availability 97.3% Availability 97.7%



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page 12

Compressor Drive & Auxiliary Equipment

• Natural gas combustion engines

• Diesel engines

• Electric motors

• Separator

• Cooler

• Liquid Tank and „Blow Case“ (or pump)

• DCS container



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page 13

Range of Possibilities

• Tailor made packages

• Capacity: 25,000 – 100,000 scm/d

• Suction Pressure: 1-10 bar(g)

• Discharge Pressure: up to 26 bar(g)

• CAPEX: 300,000 € - 1,500,000 €

• Design life time: 20 – 25 years

Wellhead Compression CAPEX or OPEX?


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page 14

Investment Option (Sample Calculation)

• Investment (CAPEX): 500,000 €

• Capacity: 30,000 scm/d = approx. 10.6 million scm/a

• Operation (OPEX): 60,000 €/a (incl. maintenance, lube oil, etc.)

• Return of Investment: within 1 year!



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page 15

Rental Option (Sample Calculation)

• If CAPEX for Wellhead Compression is not budgeted

• Equipment Rental vs. Rental incl. Operation&Maintenance

• Example: 500,000 € WHC package with 30,000 scm/d

• Monthly production: 883,000 scm/month

• Rental rate: 25 – 30,000 €/month (all inclusive)

Net profit from the very first month of operation!!



Member of ILF-Group

page 16

TECON References

• Wellhead Compression Project Quadirpur, Pakistan (2008)

• Wellhead Compression Study, Romania (2009)

• Wellhead Compression Project Moosbrunn, Austria (2010)

• Our partners and clients:

Wellhead Compression Experience Showcase


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page 17

Conclusions

• Significant gas reserves existing, at low BHPs

• Accessibility is a question of profitability

• Technical solution well available in terms of Wellhead Compression

• WHC available „from the shelf“ or tailor-made as robust, mobile andflexible solution

• CAPEX: ROI within 1 year vs. OPEX: net profit from the first month

Wellhead Compression Summary and Conclusion


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page 18

Expression of Interest

We can support you with the Engineering&Consulting for WHC packagedesign, procurement, financing, installation & operation!

www.tecon.at

Wellhead Compression Summary and Conclusion

“Happy Gas”

and

Thank You for Your Attention!

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