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INTERNSHIP REPORT 1
OGDCL Kot Sarang Logistics Base
TABLE OF CONTENTS
1. INTRODUCTION----------------------------------------------------------------------------------------------------------4
1.1. ESTABLISHMENT OF OGDC: -------------------------------------------------------------------------------------------------4
1.2. LOGISTICS BASE KOT SARANG: ---------------------------------------------------------------------------------------------4
1.3. OIL AND GAS TRAINING INSTITUTE (OGTI)------------------------------------------------------------------------------5
1.3.1. AIMS AND OBJECTIVES OF OGTI----------------------------------------------------------------------------------------------------5
1.4. BACKGROUND OF THE INTERNSHIP---------------------------------------------------------------------------------------5
1.5. PURPOSE OF THE INTERNSHIP----------------------------------------------------------------------------------------------5
1.6. SCOPE OF THE STUDY ---------------------------------------------------------------------------------------------------------6
1.7. LIMITATION OF THE STUDY--------------------------------------------------------------------------------------------------6
2. PRESENT STATUS OF THE COMPANY -------------------------------------------------------------------------------6
2.1. VISION STATEMENT -----------------------------------------------------------------------------------------------------------6
2.2. MISSION STATEMENT---------------------------------------------------------------------------------------------------------6
2.3. OBJECTIVES ----------------------------------------------------------------------------------------------------------------------6
2.4. HISTORICAL BACKGROUND OF THE COMPANY ------------------------------------------------------------------------6
2.4.1. ESTABLISHMENT ------------------------------------------------------------------------------------------------------------------------6
2.4.2. DEVELOPMENT --------------------------------------------------------------------------------------------------------------------------7
2.5. PRODUCT LINE ------------------------------------------------------------------------------------------------------------------7
2.6. FUNCTION OF OIL AND GAS DEVELOPMENT COMPANY ------------------------------------------------------------7
3. ORGANIZATIONAL STRUCTURE --------------------------------------------------------------------------------------8
3.1. MAIN OFFICES-------------------------------------------------------------------------------------------------------------------8
3.2. MAIN DEPARTMENTS ---------------------------------------------------------------------------------------------------------9
4. DRILLING OPERATION SERVICES----------------------------------------------------------------------------------- 10
4.1. WELL SERVICES:--------------------------------------------------------------------------------------------------------------- 10
4.2. FUNCTIONS AND RESPONSIBILITIES------------------------------------------------------------------------------------- 10
4.3. HUMAN RESOURCES: ------------------------------------------------------------------------------------------------------- 10
5. CEMENTATION --------------------------------------------------------------------------------------------------------- 10
5.1. MUD PLANT:------------------------------------------------------------------------------------------------------------------- 10
5.2. CUTTING BOTTLE ------------------------------------------------------------------------------------------------------------- 11
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5.3. KENTHWORTH CEMENT PUMP TRUCK--------------------------------------------------------------------------------- 11
5.4. AIR COMPRESSOR------------------------------------------------------------------------------------------------------------ 12
5.5. CEMENT SLURRY MIXER---------------------------------------------------------------------------------------------------- 12
5.6. MUD DIVISION/ DRILLING FLUID SERVICES: -------------------------------------------------------------------------- 13
5.7. BASIC FUNCTIONS OF MUD ----------------------------------------------------------------------------------------------- 13
6. WELL STIMULATION: ------------------------------------------------------------------------------------------------- 14
6.1. INTRODUCTION TO STIMULATION -------------------------------------------------------------------------------------- 14
6.2. TYPES OF WELL TREATMENT---------------------------------------------------------------------------------------------- 14
6.2.1. MATRIX ACIDIZING -------------------------------------------------------------------------------------------------------------------14
6.2.2. HYDRAULIC FRACTURING TREATMENT-----------------------------------------------------------------------------------------15
6.2.3. FRACTURING FLUIDS AND ADDITIVES ------------------------------------------------------------------------------------------15
6.3. EQUIPMENT USED FOR STIMULATION --------------------------------------------------------------------------------- 16
6.3.1. NITROGEN PUMPER------------------------------------------------------------------------------------------------------------------16
6.3.2. COIL TUBING UNIT--------------------------------------------------------------------------------------------------------------------16
7. OVERHAULING SECTION/RIG MAINTENANCE KOT SARANG ----------------------------------------------- 17
7.1. REPAIR AND MAINTENANCE: --------------------------------------------------------------------------------------------- 18
7.1.1. ENGINES: --------------------------------------------------------------------------------------------------------------------------------18
7.1.2. MUD PUMP-----------------------------------------------------------------------------------------------------------------------------21
7.1.3. DRAW-WORK SR. TF-20 -------------------------------------------------------------------------------------------------------------22
7.1.4. SWIVEL/KELLY SPINNER SR. 6600 ------------------------------------------------------------------------------------------------23
8. LOGISTICS WORKSHOP----------------------------------------------------------------------------------------------- 23
8.1. FUNCTIONS -------------------------------------------------------------------------------------------------------------------- 24
8.2. INVENTORY OF HEAVY OIL FIELD TRANSPORT ----------------------------------------------------------------------- 25
8.3. PAST PERFORMANCE / ACHIEVEMENTS ------------------------------------------------------------------------------- 25
8.4. CAPABILITIES ------------------------------------------------------------------------------------------------------------------ 25
9. OIL WELL DRILLING BY OGDCL ------------------------------------------------------------------------------------- 26
9.1. INTRODUCTION--------------------------------------------------------------------------------------------------------------- 26
9.2. FUNCTIONS -------------------------------------------------------------------------------------------------------------------- 27
9.3. RESOURCES -------------------------------------------------------------------------------------------------------------------- 27
9.4. OPERATIONS------------------------------------------------------------------------------------------------------------------- 27
9.4.1. FORMING OIL --------------------------------------------------------------------------------------------------------------------------27
9.4.2. LOCATING OIL--------------------------------------------------------------------------------------------------------------------------28
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10. OIL RIG SYSTEMS --------------------------------------------------------------------------------------------------- 30
11. THE OIL DRILLING PROCESS-------------------------------------------------------------------------------------- 32
11.1. TESTING FOR OIL ---------------------------------------------------------------------------------------------------------- 32
11.2. EXTRACTING OIL----------------------------------------------------------------------------------------------------------- 33
11.3. OFFSHORE OIL DRILLING------------------------------------------------------------------------------------------------ 33
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OGDCL Kot Sarang Logistics Base
1. INTRODUCTION
Prior to OGDCL's emergence, exploration activities in the country were carried out by Pakistan Petroleum
Ltd. (PPL) and Pakistan Oilfields Ltd. (POL). In 1952, PPL discovered a giant gas field at Sui in
Balochistan. This discovery generated immense interest in exploration and five major foreign oil
companies entered into concession agreements with the Government.
During the 1950s, these companies carried out extensive geological and geophysical surveys and drilled
47 exploratory wells. As a result, a few small gas fields were discovered. Despite these gas discoveries,
exploration activity after having reached its peak in mid-1950s, declined in the late fifties. Private
Companies whose main objective was to earn profit were not interested in developing the gas discoveries
especially when infrastructure and demand for gas was non-existent. With exploration activity at its lowest
ebb several foreign exploration contracting companies terminated their operation and either reduced or
relinquished land holdings in 1961.
1.1. ESTABLISHMENT OF OGDC:
To review exploration in the energy sector the Government of Pakistan signed a long-term loan
Agreement on 04 March 1961 with the USSR, whereby Pakistan received 27 million Rubbles to
finance equipment and services of Soviet experts for exploration. Pursuant to the Agreement, OGDC
was created under an Ordinance dated 20th September 1961. The Corporation was charged with
responsibility to undertake a well thought out and systematic exploratory programs and to plan and
promote Pakistan's oil and gas prospects.
As an instrument of policy in the oil and gas sector, the Corporation followed the Government
instructions in matters of exploration and development. The day to day management was however,
vested in a five-member Board of Directors appointed by the Government. In the initial stages the
financial resources were arranged by the GOP as the OGDC lacked the ways and means to raise the
risk capital. The first 10 to 15 years were devoted to development of manpower and building of
infrastructure to undertake much larger exploration programmes.
1.2. LOGISTICS BASE KOT SARANG:
Logistics department has the resources and expertise of shifting rigs throughout Pakistan in rough and
rugged Hilly terrain, sandy and plan areas in remote fields of KPK, Punjab, Sindh and Baluchistan
Provinces. Besides providing quality MUD Engineering, Cementation & Stimulation services, for the
enhancement of Exploration & Production Activities.
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1.3. OIL AND GAS TRAINING INSTITUTE (OGTI)
The oil and gas development company limited (OGDCL) was set up in 1961 in the public sector under
the ministry of petroleum and natural resources.
1.3.1. Aims and Objectives of OGTI
The aims and objectives of OGTI are to identify the training needs of the industry, offer practical
training programme to professional of the petroleum industry, and provide training advice and
guidance to OGDC and to help established standards for training which will meet the performance
needs in the field and on the job.
OGTI is dedicated to:
Establish courses and in-house training programmes which will meet the specific needs of OGDC
and the Pakistan petroleum industry.
“Designing training material that recognizes the capabilities and specific needs of newly hired
employees and those who change their job assignment providing refresher and upgrade training
for industry personnel in cost effective manner”
In-house basic training programmes are being designed and developed to provide a base level of
training which employees require to function in their jobs. OGDC recruits men from all across
Pakistan. The universities and technical schools do not provide the full range of subject matter
necessary for a graduate entering the petroleum industry. It is OGTI’S intention to ensure that the
individual has an opportunity to obtain this training within his first two years with OGDC. In
addition to basic training courses, OGTI will Organizes in-house technology update seminars.
1.4. BACKGROUND OF THE INTERNSHIP
Oil industry is a lifeline for an economy. It is a world of oil exploration, oil refining and engineering.
Pakistan understands the importance of this industry for its economic uplift. Therefore the government
of Pakistan established OGDCL in 1961. OGDCL is the leading firm providing 23% of total
consumption, saving Pakistan from imports and contributing to economy by paying different charges
to the government.
1.5. PURPOSE OF THE INTERNSHIP
This report is based on Internship carried out for the fulfilment of the degree requirement of the
Bachelor of Science Degree in Mechanical Engineering at the International Islamic University
Islamabad. The purpose of the Internship is to do practical work in field and apply the knowledge of
classroom lectures to the real life situations.
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1.6. SCOPE OF THE STUDY
The scope of my internship is focused on the Mechanical Engineering operations in Logistic Field Kot
Sarang. This report will explains department’s working but also flow of work activities among the
sections and fields.
1.7. LIMITATION OF THE STUDY
No matter how efficiently a study is conducted, it cannot be perfect in all respects. The problem of
short time period also makes the analysis restricted as one cannot properly understand and thus analyze
all the operations of the field just in four weeks.
2. PRESENT STATUS OF THE COMPANY
2.1. VISION STATEMENT
“To be a leading, regional Pakistani E & P Company, recognized for its people, partnerships and
performance”
2.2. MISSION STATEMENT
Our mission is to become a competitive, dynamic and growing E & P Company, rapidly enhancing
our reserves through world class workforce, best management practices and technology and
maximizing returns to all stakeholders by capturing high value business opportunities within the
country and abroad, while being a responsible corporate citizen.
2.3. OBJECTIVES
a) Developing E & P Work Flow Models for Data Integration and connectivity.
b) Conduct geo-scientific, algorithms and systems architecture research leading to the development
of robust, interactive and user-friendly geosciences applications software that are tightly integrated
into the workflow environment.
c) Detailed testing of the developed applications to achieve the highest performance.
d) Detailed testing of the developed applications to achieve the highest performance.
e) Training and systems support to the end - users.
2.4. HISTORICAL BACKGROUND OF THE COMPANY
2.4.1. Establishment
The Oil & Gas Development Company Limited (OGDCL) was created under an Ordinance in
1961, to undertake comprehensive exploratory program and promote Pakistan’s oil and gas
prospects. In 1997, it was converted into a Public Limited Company and is now governed by the
Companies Ordinance 1984.
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2.4.2. Development
With a balanced, efficient and competitive structure, OGDCL explores and exploits indigenous
resources for optimum production of oil and gas, besides seeking opportunities abroad.
OGDCL has the largest acreage position in Pakistan and currently operates 17 exploration
concessions and holds non –operated working interest in another 7 exploration concessions. In
addition OGDCL has 35 Mining and Development & Production Leases, which are operated by it
besides having working interest ownership in 28 non-operated Mining and Development &
Production Leases, OGDCL has an extensive database. Services of the Company’s highly qualified
and skilled expertise in the fields of geology and geophysics are frequently availed y the local and
foreign oil companies. It also leases out its drilling rigs to the private sector and carries out seismic
surveys and data processing on contract for these companies on extremely competitive rates.
OGDCL now holds the largest shares of oil and gas reserves in the country, i.e. 48% of total oil
and 37% of total gas reserves. Its percentage share of the total oil and gas production in Pakistan
is 34% and 28% respectively. On the basis of its activities since inception, the company has until
June 30, 2003 and made 59 discoveries with a success ratio of 1:3. OGDCL’s updated estimates
for remaining recoverable oil and gas reserves as on 1st July, 2003, stood at 9.228 billion
Standard cubic feet (BSCF) of gas and 164.25 million barrels of oil including company’s share in
non – operated Joint Ventures.
During the last 42 years OGDCL has grown into a technically and commercially viable
organization.
2.5. PRODUCT LINE
In the product line of OGDCL, the following are its products by which it is earning profits:
a) Crude Oil.
b) Gas.
c) LPG.
d) Sulphur.
e) Gasoline/High and Low Speed Diesel.
f) Kerosene Oil.
g) Naphthalene.
h) Solvent Oil.
2.6. FUNCTION OF OIL AND GAS DEVELOPMENT COMPANY
The main functions of the Corporation are:-
a) To plan, organize and implement programs of exploration of development of oil and resources.
b) To carry out geological, geophysical and other surveys for the exploration of oil and gas.
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OGDCL Kot Sarang Logistics Base
c) To carry out drilling and other prospecting operations to prove and estimate the reserves of oil
and gas.
d) To produce, refine and sale oil and gas
e) To perform other functions as the Federal Government may from time to time assign to the
Corporation.
3. ORGANIZATIONAL STRUCTURE
3.1. MAIN OFFICES
OGDCL Head Office is situated at Jinnah Avenue, Blue Area Islamabad and Regional Offices are
located in Karachi and Multan. Besides this OGDCL has its Liaison Offices in Hyderabad, Sukkhur,
and Quetta for operational activities. The overall organizational structure / organogram is as under
A Board of Directors comprising twelve Directors, all of whom are nominated by the Ministry of
Petroleum and Natural Resources, is responsible for policy related issues. The autonomous Board is
headed by a non-executive Chairman and there is a Managing Director/Chief Executive Officer.
Following are the main offices located throughout Pakistan:
1. OGDCL Head Office, Jinnah Avenue Islamabad.
2. Pirkoh Gas Company Private Limited, Islamabad.
3. OGDCL Regional Office, Shafi Chamber, Karachi
4. OGDCL Regional Office, Multan
5. OGDCL Liaison Office, Quetta
6. OGDCL Liaison Office, Sukkur
7. OGDCL West Wharf Office, Karachi
8. OGDCL Base Store, Islamabad
9. OGDCL Base Store, Khadiji, Karachi
10. OGDCL Base Store, Korangi
11. OGDCL Base Store, Kot Addu
12. OGDCL Logistics Field, Kot Sarang
13. Medical Centres, Islamabad, Rawalpindi & Karachi
14. OGDCL Workshops, Islamabad
15. Oil & Gas Training Institute, Islamabad.
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3.2. MAIN DEPARTMENTS
1. Administration Department
2. Corporate Department
3. Human Resource Department
4. Personnel Department
5. Security Department
6. Legal / Regulation Department
7. Communication Department
8. Procurement Department
9. Stores Department
10. Finance & Accounts Department
11. Audit Department
Exploration & Production Departments
1. Exploration Department
2. Exploitation Department
3. Production Department
4. Process Department
Technical Services Department
1. Drilling Department
2. Data Logging Department
3. Mud Engineering Department
4. Well Services Department
5. Cementation Department
6. Geological Well Supervision Department
7. Engineering Department
8. Wire line Logging Department
9. Geological Department
10. Data Processing Department
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4. DRILLING OPERATION SERVICES
4.1. WELL SERVICES:
To provide quality MUD Engineering, Cementation & Stimulation services, for the enhancement of E
& P Activities.
4.2. FUNCTIONS AND RESPONSIBILITIES
 To arrange & supply Mud Chemicals, Cement & additives to the Drilling & work over Rigs.
 To prepare & implement Mud & Hydraulics programmes for drilling of OGDCL wells.
 To design cement slurries in the Cement Laboratory and to execute the Cementation programmes
 To test Mud & Mud Chemicals, in the Mud Laboratory for its suitability in Drilling Operations.
 To provide Nitrogen & Coil tubing services to work over wells and at processing Plants.
 Shifting of Mud between wells when feasible.
 Acid Pumper for stimulation jobs at wells
4.3. HUMAN RESOURCES:
The department has a team of technically sound, highly experienced and dedicated professionals
consisting of Engineers, Chemist and Technicians.
Most of the Professionals have more than 15-20 years of working experience in their professions and
have undergone training in Pakistan in OGDCL and with the Multinational Companies at USA and
Canada.
1. Head Office OGDCL House Blue Area Islamabad. Central Control
2. Logistics base Kot Sarang located in Teh. Talagang Distt. Chakwal For North
3. Logistics base Kot Addu located in Teh. Muzaffar Garh Distt. Muzaffer Garh For Mid Country
4. Logistics Unit Tando Alam located in Teh. Hyderabad Distt. Hyderabad. For South
5. CEMENTATION
5.1. MUD PLANT:
Mud division of Well Services Department has recently established a Mud Plant of about 1500 bbls
storage capacity at Tando Alam Oil Complex (Sindh Province). This plant is meant for storage and
necessary treatment of the left-over mud for recycling purpose. In the current fiscal year a further
enhancement of the capacity of the Mud Plant is planned so as to make the total capacity up to 3500
bbl,
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5.2. CUTTING BOTTLE
Cutting Bottle is an intermediate & important part of bulking equipment that is commissioned in the
bulking and pumping circuit to load and shift the cement to pressure silos taking pneumatic drive from
the Air compressor.
5.3. KENTHWORTH CEMENT PUMP TRUCK
 Twin Engine 500 HHP
 32 BBL RMX Skid Unit Cat 3406 Engine
 Allison HT750 Transmission, Triplex Oil Well Pump
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5.4. AIR COMPRESSOR
Nine Positive Displacement Air Compressors are available with the Cementation Divisions to cater
necessary Cement Operations. These are actually reciprocating type compressors with three (03)
cylinders , which can intake air from atmosphere at or below atmospheric pressure (14.7 psi-absolute)
and deliver through or without cutting bottle to pressurize The Pressure Silos. The delivery pressure
has a lower limit of 40 psi gauge pressure.
5.5. CEMENT SLURRY MIXER
100 BBL Cement Slurry Mixer (CSM), 03 No. having mixing ability to prepare slurry of 22.0 ppg
Slurry Weight (In addition to that, 02 Nos 20 BBL capacities CSM are also in the possession of
Cementation Division).
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5.6. MUD DIVISION/ DRILLING FLUID SERVICES:
Having been one of the important divisions of Well Services Department, the subject is extending to
provide its discrete Mud Engineering Services along with Mud Chemicals on a vast scale at various
OGDCL well locations to drill down the wells to specific depth for exploiting desirable prospects.
Mostly popular with synonym “The Blood” in mainstream drilling operations, the Mud, also known
as “Drilling Fluid” is one which contain Gel or High yield clay, pre-hydrated in fresh or brackish(salt
or sea) water as a base medium , which performs number of Functions while circulating through a
drilling hole. In conjunction to base clay, there are chemicals, commonly known as Polymers, which
are used to control the miscellaneous properties & fluid dynamics, as dictated by the well condition.
5.7. BASIC FUNCTIONS OF MUD
A Large amount of experimental work has been done in connection with the preparation of mud fluids
of various types, but comparatively little information is available as to the function& of the different
types of muds and details in regard to the ways in which these functions are carried out.
Following is a brief detail of, what a drilling fluid can do while in drilling hole.
 To transport & carry away the cuttings & cavings as the bit cuts down the formation , while drilling
down to a specific depth, known as “Target Depth”
 To cool & lubricate, the metallic hardware, including bit, Drill Colours & Drill Pipes as well as
wall of the hole.
 To control the subsurface formation pressure using the “Hydrostatic Head” of contained fluid
while in static condition & Equivalent Circulating Density “ECD” in dynamic conditions.
 To maintain well bore stability
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 To consolidate certain strata, such as heaving & sloughing water sensitive shales, which tend to
breakdown as the water phase react with sodium montmorillinite & cause serious mechanical
problems, including, pipe-stucking, bridging & difficulty in drilling.
 To seal & clog permeable formation in Non-Productive zones. Extra care is taken to run “Non-
Damaging type Mud” at zone of interest in the likelihood of hydrocarbons, as anticipated by GDO
& previous Composite Logs.
 To control & transmit the hydraulic energy to string, tools & bit in the hole.
 To control the corrosion of metallic components to acceptable levels
 To acquire adequate information about the Formations & important lithalogies by the onsite
geologist evaluation of cuttings & caving’s transported to surface by existing mud.
 To be used as media for transmitting logging information using conductivity of Mud.
 To facilitate cementing & completion
6. WELL STIMULATION:
Stimulation is define as to perform operations on the oil wells so that we increase production of the oil
from the well.
6.1. INTRODUCTION TO STIMULATION
Reservoir stimulation deals with well productivity. As a result, a successful stimulation first requires
accurate identification of parameters controlling well productivity and the determination of whether
or not stimulation can improve production. This is therefore the very first step of the stimulation job
design.
6.2. TYPES OF WELL TREATMENT
 Hydraulic fracturing treatment
 Matrix Acidizing
6.2.1. Matrix acidizing
A low value of the permeability or high value of the skin factor would result in low well
productivity. Matrix acidizing is generally applied to reduce a large skin resulting from
permeability damage during completion or production. There is virtually nothing practical that can
be done to the permeability, although investigators have erroneously suggested that hydraulic
fracturing increases the reservoir permeability. A hydraulic fracture, as it will later be shown, is a
superimposed structure on a reservoir which remains largely undisturbed outside of the fracture.
The fracture, however, can greatly improve the well productivity by creating a large contact surface
between the well and the reservoir. The production improvement results from effectively
increasing the wellbore radius, which is indicated in subsequent testing as a reduction in the skin
factor, generally to negative value
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6.2.2. HYDRAULIC FRACTURING TREATMENT
A theoretical examination of the fracturing of rocks by means of pressure applied in boreholes
leads to the conclusion that, regardless of whether the fracturing fluid is of the penetrating or non-
penetrating type, the fractures produced should be approximately perpendicular to the axis of least
stress (Fig. 7). The general state of stress underground is that in which the three principal stresses
are unequal. For tectonically relaxed areas characterized by normal faulting, the least stress should
be horizontal; the fracture produced should be vertical with the injection pressure less than that of
the overburden. In areas of active tectonic compression, the least stress should be vertical and
equal to the pressure of the overburden; the fracture should be horizontal with injection pressure
equal to or greater than the pressure of the overburden.
6.2.3. Fracturing Fluids and Additives
To achieve successful stimulation, the fracturing fluid must have certain physical and chemical
properties:
1. It should be compatible with the formation rock.
2. It should be compatible with the formation fluids.
3. It should be capable of suspending proppants and transporting them deep into the fracture.
4. It should be capable, through its inherent viscosity, to develop the necessary fracture width
to accept proppants.
5. It should be an efficient fluid (i.e., have low fluid loss). It should be easy to remove from
the formation.
6. It should have low friction pressure. Preparation of the fluid should be simple and easy to
perform in the field.
7. It should be stable so that it will retain its viscosity throughout the treatment.
8. The fracturing fluid should be cost-effective.
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6.3. EQUIPMENT USED FOR STIMULATION
6.3.1. NITROGEN PUMPER
Vacuum Truck (Mack), 05 Nos; 350 HHP, 120 BBLs capacity (can haul 20 PPG Mud)
Acid Bulker, 400 HHP, 72 BBL Capacities. 18 Nos,“HP” Silos having 1000 Ft3 bulk Capacity
with 40 psi Operating Pressure.
6.3.2. COIL TUBING UNIT
The coil tubing unit is used for the basic stimulation jobs. The coil tubing unit which consists of a
metallic pipe wrapped around in the form of a roll. It is inserted into the well for various stimulation
purposes.
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7. OVERHAULING SECTION/RIG MAINTENANCE KOT SARANG
Overhauling section is located inside KOT SARANG Logistics Base providing the maintenance functions
for the RIG components and machinery including Engines, Draw works & Mud Pumps etc. These
machineries all-over from OGDCL field locations came for the repairing and overhauling in the Base
KOT SARNG. This section provides services of maintenance under the supervision of Engineers which
led the task of overhauling of machinery. The section is facilitated with the experienced technicians
provided with the advance tools for the maintenance of machinery along with the facilities of gas welding,
arc welding and Fork lifting. The part of this section also provides winding of electrical motors and
repairing of electrical machines.
Apparatus:
 Gas welding Equipment
 Arc welding Equipment
 Fork-Lifter
 Motor winding machine
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7.1. REPAIR AND MAINTENANCE:
7.1.1. ENGINES:
CAT G3406 GAS ENGINE Sr. 2WB2732
Tough and durable, built on the industry-standard G3400 platform brings maximum uptime
and low operating cost to your operation. G3406 engines meet the most demanding continuous
duty gas compression applications with virtually no unscheduled downtime. Ideal applications
for G3406 engines include gas lift, gas gathering, and wellhead gas compression.
Technical Specifications:
Ratings: 6 cylinder 160-242 bkW (215-325 bhp) @ 1800 rpm are NSPS site compliant capable
with customer-provided air-fuel ratio control and after treatment or available for non-regulated
areas.
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CAT G3408 GAS ENGINE Sr. IDZ14242
Tough and durable, built on the industry-standard G3400 platform brings maximum uptime
and low operating cost to your operation. G3408 engines meet the most demanding continuous
duty gas compression applications with virtually no unscheduled downtime. Ideal applications
for G3408 engines include gas lift, gas gathering, and wellhead gas compression.
Technical Specifications:
Ratings: 8 cylinder190-298 kW (255-400 bhp) @ 1800 rpm are NSPS site compliant capable
with customer-provided air-fuel ratio control and after treatment or available for non-regulated
areas
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CAT D398 PROPULSION ENGINE Sr. 66BO-9752
These engines are the ideal solution for your demanding operations in the oilfield. Decades of
field operation and intense research and development allow Cat D398 engines to deliver
excellent performance with low operating costs and emissions. This is an ideal engine for land
mechanical drilling applications such as mud pump drives. Cat engines are backed by the
worldwide network of Cat dealers ready to support your operation with technical support,
service, parts, and warranty.
Technical Specifications:
Ratings: 12 cylinder 597-858 bkW (800-1150 bhp) @ 1800-2100 rpm meet U.S. EPA Tier 2
equivalent emission standards.
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7.1.2. MUD PUMP
A mud pump is a reciprocating piston/plunger device designed to circulate drilling fluid under
high pressure (up to 7,500 psi (52,000 kPa)) down the drill string and back up the annulus.
Mud pump is a large reciprocating pump used to circulate the mud (drilling fluid) on a drilling rig.
It is an important part of the oil well drilling equipment.
The overhauling/Rig maintenance have special maintenance technicians whom responsible for the
maintenance and repair work of the machine. Mud Pumps and other mechanical equipment
inspected and maintained on a scheduled and timely basis to find and address problems ahead of
time, in order to avoid unscheduled shutdown. The engineers attend to the size of the sediment
particles; when finding large particles, the Mud Pump wearing part often checked for repairing
needs or replacement. The wearing parts for Mud Pumps include pump casing, bearings, impeller,
piston, liner, etc. Advanced anti-wear measures adopted to increase the service life of the wearing
parts, which can reduce the investment cost of the project, and improve production efficiency. At
the same time, wearing parts and other Mud Pump parts are repaired rather than replaced when
possible
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7.1.3. DRAW-WORK Sr. TF-20
A draw-works is the primary hoisting machinery that is a component of a rotary drilling rig. Its
main function is to provide a means of raising and lowering the traveling blocks. A modern draw-
works consists of five main parts: the drum, the motor(s), the reduction gear, the brake, and the
auxiliary brake.
Complete overhauling of Draw-Works is done by the Rig maintenance department of KOT
SARANG under the supervision of engineers.
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7.1.4. SWIVEL/KELLY SPINNER Sr. 6600
The Kelly Spinner is used for driving the Kelly stem by air or hydraulic motor, and matching to
the clamp of the mouse hole to making up with the single automatically, during the drilling
operation. It has the advantages of safety, high efficiency and manpower reduction.
8. LOGISTICS WORKSHOP
Logistics department has the resources and
expertise of shifting rigs throughout Pakistan
in rough and rugged Hilly terrain, sandy and
plan areas in remote fields of KPK, Punjab,
Sindh and Baluchistan Provinces.
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Logistics workshop is part of the base KOT SARANG is equipped for maintenance, repair, and
overhauling of Earth-Moving-Machines which are used for the transportation, construction and load-
lifting purposes. These machines include Crawler machines, Shovels, Clamshells, Hydraulic Cranes,
PowerShell, Excavator, Bulldozers, Fuel-Tankers and Loading-Trucks etc. Engineers along with the
technicians put their efforts to keep these machines working and running for the operational needs of
OGDCL. All the logistics equipment needed for the exploration and production is maintained by the
logistics workshop of KOT SARANG.
8.1. FUNCTIONS
 Shifting of drilling and work-over rigs.
 Shifting of tabular chemicals and all type of supplies for drilling rig sites.
 Shifting of all type of material and equipment of service companies associated with E & P activities.
INTERNSHIP REPORT 25
OGDCL Kot Sarang Logistics Base
8.2. INVENTORY OF HEAVY OIL FIELD TRANSPORT
Logistics department has acquired variety of good equipment and maintained operational bases
consisting of heavy transport which include trailers cranes and dozers.
The trailers and cranes of Logistics department are fully equipped with latching equipment and
necessary slings etc. for different load binding, loading and off-loading.
The brief of usable inventory is as under:
 60 High bed trailers capacity 40 ton 6x6 and 6x4 drive.
 10 Low-bed trailers capacity 50 ton 6x6 and 6x4 drive.
 10 Cranes capacity 50/40 ton 8x4 drive lattice boom
extendable to 120 feet
 2 Dozer Caterpillar D8N.
8.3. PAST PERFORMANCE / ACHIEVEMENTS
Average rig shifting per year 18 Drilling + 07 Work over.
General shifting assignments of supplies for well sites For all the above wells.
General shifting assignments for Exploration, Production, Plant
and Process, Store and Engineering Depts. Etc.
As and when required.
Logistics department has the resources and expertise of shifting rigs throughout Pakistan in rough
and rugged Hilly terrain, sandy and plan areas in remote fields of KPK, Punjab, Sindh and
Baluchistan Provinces.
8.4. CAPABILITIES
The logistics machinery is capable of moving the following rigs at a time:
1. Long distance over 1000 KM. round trip 01 Rig move at a time
2. Short distance below 1000 KM round trip 02 Rig moves at a time
3. Within field radius of 150 KM 03 Rig Moves at a time.
INTERNSHIP REPORT 26
OGDCL Kot Sarang Logistics Base
9. OIL WELL DRILLING by OGDCL
9.1. INTRODUCTION
As Pakistan’s largest oil & gas producer, OGDCL share in Country’s total oil and gas production
stands at 42,520 bpd of Crude oil (Net Averaged), 1,120 mmcfd of Gas (Net Averaged) and 171 M.
T/d of LPG (Net Averaged).
Having 40 operated oil & gas fields, geographically distributed all across the country; OGDCL has
embarked upon development works on 32 fields, to bring these on production. OGDCL has 35 oil &
gas processing plants. These include Dehydration, LPG, Sulphur Recovery, H2S Removal, Gas
Sweetening, Condensate Stabilization, Refining and Compression plants.
Various measures have been taken in order to augment production levels to reach new heights. This
includes setting up of aggressive targets, enduring commitment by its professionals, and induction of
latest technologies, pursuing industry best practices, strengthening surveillance techniques, enhancing
in-house engineering design & simulation capabilities, utilization of state-of-the art automation
systems and fostering use of information technology.
INTERNSHIP REPORT 27
OGDCL Kot Sarang Logistics Base
9.2. FUNCTIONS
 Well Design and project manuals for all exploratory, appraisal & development wells.
 AFE /Wells cost time.
 Monitoring AFE approval & actual cost on daily basis.
 Drilling engineering studies.
 Drilling Operations as per approved programs.
 Supervision of drilling & work over operations.
 Work over operations as per approved programs.
 Preventive maintenance, repair and overhauling of rig equipment’s.
 Fishing operations on limited scale.
 Monitoring of non-operated joint venture.
9.3. RESOURCES
OGDCL owns 07 drilling & 01 work-over rigs as under:
 Deep drilling up to 6000 M 01 Rig
 Deep drilling up to 5000 M 03 Rigs
 Medium drilling up to 4000 M 01 Rig
 Shallow drilling up to 2800 M 02 Rig
 Work over medium depth up to 3500 M 01 Rig
All rigs are operated by OGDCL’s own experienced & qualified crew.
The rigs crew have vast drilling & work-over experience of wells scattered all over the country.
Maintenance standards at rigs have been improved.
9.4. OPERATIONS
9.4.1. FORMING OIL
Oil comes from the remains of tiny plants and animals (plankton) that died in ancient seas between
10 million and 600 million 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. So microorganisms broke the remains into carbon-rich compounds that
formed organic layers. The organic material mixed with the sediments, forming fine-grained shale,
or source rock. As new sedimentary layers were deposited, they exerted intense pressure and heat
on the source rock. The heat and pressure distilled the organic material into crude oil and natural
gas. The oil flowed from the source rock and accumulated in thicker, more porous limestone or
INTERNSHIP REPORT 28
OGDCL Kot Sarang Logistics Base
sandstone, called reservoir rock. Movements in the Earth trapped the oil and natural gas in the
reservoir rocks between layers of impermeable rock, or cap rock, such as granite or marble.
These movements of the Earth include:
 Folding - Horizontal movements press inward and move the rock layers upward into a fold
or anticline.
 Faulting - The layers of rock crack, and one side shifts upward or downward.
 Pinching out - A layer of impermeable rock is squeezed upward into the reservoir rock.
9.4.2. LOCATING OIL
Whether employed directly by an oil company or under contract from a private firm, geologists
are the ones responsible for finding oil. Their task is to find the right conditions for an oil trap --
the right source rock, reservoir rock and entrapment. Many years ago, geologists interpreted
surface features, surface rock and soil types, and perhaps some small core samples obtained by
shallow drilling. Modern oil geologists also examine surface rocks and terrain, with the additional
help of satellite images. However, they also use a variety of other methods to find oil. They can
use sensitive gravity meters to measure tiny changes in the Earth's gravitational field that could
indicate flowing oil, as well as sensitive magnetometers to measure tiny changes in the Earth's
magnetic field caused by flowing oil. They can detect the smell of hydrocarbons using sensitive
electronic noses called sniffers. Finally, and most commonly, they use seismology, creating shock
waves 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 exploration over water)
Thumper truck - slams heavy plates into the ground (for exploration over land)
Explosives - detonated after being drilled into the ground (for exploration over land) or thrown
overboard (for exploration over water)
The shock waves travel beneath the surface of the Earth and are reflected back by the various rock
layers. The reflections travel at different speeds depending upon the type or density of rock layers
through which they must pass. Sensitive microphones or vibration detectors detect the reflections
of the shock waves -- hydrophones over water, seismometers over land. Seismologists interpret
the readings for signs of oil and gas traps.
INTERNSHIP REPORT 29
OGDCL Kot Sarang Logistics Base
Once geologists find a prospective oil
strike, they mark the location using GPS
coordinates on land or by marker buoys
on water.
Once the site has been selected,
scientists survey the area to determine
its boundaries, and conduct
environmental impact studies if
necessary. The oil company may need
lease agreements, titles and right-of way
accesses before drilling the land. For
off-shore sites, legal jurisdiction must
be determined.
After the legal issues are settled, the
crew goes about preparing the land:
The land must be cleared and levelled,
and access roads may be built.
Because water is used in drilling, there must be a source of water nearby. If there is no natural
source, the crew drills a water well.
The crew digs a reserve pit, which is used to dispose of rock cuttings and drilling mud during the
drilling process, and lines 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 of offsite
-- trucked away instead of placed in a pit.
Once the land has been prepared, the crew digs several holes to make way for the rig and the main
hole. A rectangular pit called a cellar is dug around the location of the actual drilling hole. The
cellar provides a work space around the hole for the workers and drilling accessories. The crew
then begins drilling the main hole, often with a small drill truck rather than the main rig. The first
part of the hole is larger and shallower than the main portion, and is lined with a large-diameter
conductor pipe. The crew digs additional holes off to the side to temporarily store equipment --
when these holes are finished, the rig equipment can be brought in and set up.
Depending upon the remoteness of the drill site and its access, it may be necessary to bring in
equipment by truck, helicopter or barge. Some rigs are built on ships or barges for work on inland
water where there is no foundation to support a rig (as in marshes or lakes).
INTERNSHIP REPORT 30
OGDCL Kot Sarang Logistics Base
10. OIL RIG SYSTEMS
Once the equipment is at the site, the crew sets the
rig up. Here are the major systems of a land oil rig:
 Power system
 Large diesel engines - burn diesel-fuel oil to
provide the main source of power
 Electrical generators - powered by the diesel
engines to provide electrical power
 Mechanical system - driven by electric motors
 Hoisting system - used for lifting heavy
loads; consists of a mechanical winch (draw-
works) with a large steel cable spool, a block-
and-tackle pulley and a receiving storage reel
for the cable
 Turntable - part of the drilling apparatus
 Rotating equipment - used for rotary drilling
 Swivel - large handle that holds the weight of
the drill string; allows the string to rotate and makes a pressure-tight seal on the hole
 Kelly - four- or six-sided pipe that transfers rotary motion to the turntable and drill string.
 Turntable or rotary table - drives the rotating motion using power from electric motors.
 Drill string - consists of drill pipe (connected sections of about 30 feet (10 meters) and drill collars.
(larger diameter, heavier pipe that fits around the drill pipe and places weight on the drill bit)
 Drill bit(s) - end of the drill that actually cuts up the rock; comes in many shapes and materials
(tungsten carbide steel, diamond) that are specialized for various drilling tasks and rock formations.
 Casing - large-diameter concrete pipe that lines the drill hole, prevents the hole from collapsing,
and allows drilling mud to circulate.
INTERNSHIP REPORT 31
OGDCL Kot Sarang Logistics Base
 Circulation system - 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 through the kelly, rotary table, drill pipes and drill
collars
 Pump - sucks mud from the mud pits and pumps it to
the drilling apparatus
 Pipes and Hoses - connects pump to drilling apparatus
 Mud-return line - returns mud from the hole
 Shale Shaker - shaker/sieve that separates rock cuttings
from the mud
 Shale Slide - conveys cuttings to the reserve pit
 Reserve pit - collects rock cuttings separated from the
mud
 Mud pits - where drilling mud is mixed and recycled
 Mud-mixing hopper - where new mud is mixed and
then sent to the mud pits
 Derrick - support structure that holds the drilling
apparatus; tall enough to allow new sections of drill pipe to be
added to the drilling apparatus as drilling progresses
 Blowout preventer - high-pressure valves (located under the land rig or on the sea floor) that seal the
high-pressure drill lines and relieve pressure when necessary to prevent a blowout (uncontrolled gush
of gas or oil to the surface, often associated with fire)
INTERNSHIP REPORT 32
OGDCL Kot Sarang Logistics Base
11. THE OIL DRILLING PROCESS
The crew sets up the rig and starts the drilling operations. First, from the starter hole, the team drills a
surface hole down to a pre-set depth, which is somewhere above where they think the oil trap is located.
There are five basic steps to drilling the surface hole. Place the drill bit, collar and drill pipe in the hole.
Attach the kelly and turntable, and begin drilling. As drilling progresses, circulate mud through the pipe
and out of the bit to float the rock cuttings out of the hole. Add new sections (joints) of drill pipes as the
hole gets deeper. Remove (trip out) the drill pipe, collar and bit when the pre-set depth (anywhere from a
few hundred to a couple-thousand feet) is reached.
Once they reach the pre-set depth, they must run and cement the casing -- place casing-pipe sections into
the hole to prevent it from collapsing in on itself. The casing pipe has spacers around the outside to keep
it centred in the hole.
The casing crew puts the casing pipe in the hole. The cement crew pumps cement down the casing pipe
using a bottom plug, a cement slurry, a top plug and drill mud. The pressure from the drill mud causes the
cement slurry to move through the casing and fill the space between the outside of the casing and the hole.
Finally, the cement is allowed to harden and then tested for such properties as hardness, alignment and a
proper seal.
11.1. TESTING FOR OIL
Drilling continues in stages: The crew drills, then runs and cements new casings, then drills again.
When the rock cuttings from the mud reveal the oil sand from the reservoir rock the crew may have
reached the well's final depth. At this point, crew members remove the drilling apparatus from the hole
and perform several tests to confirm this finding:
 Well logging - lowering electrical and gas sensors into the hole to take measurements of the
rock formations there
 Drill-stem testing - lowering a device into the hole to measure the pressures, which will reveal
whether reservoir rock has been reached
 Core samples - taking samples of rock to look for characteristics of reservoir rock
Once they've reached the final depth, the crew completes the well to allow oil to flow into the casing
in a controlled manner. First, they lower a perforating gun into the well to the production depth. The
gun has explosive charges to create holes in the casing through which oil can flow. After the casing
has been perforated, they run a small-diameter pipe (tubing) into the hole as a conduit for oil and gas
to flow up through the well. A device called a packer is run down the outside of the tubing. When the
packer is set at the production level, it's expanded to form a seal around the outside of the tubing.
Finally, they connect a multi-valved structure called a Christmas tree to the top of the tubing and
cement it to the top of the casing. The Christmas tree allows them to control the flow of oil from the
well.
INTERNSHIP REPORT 33
OGDCL Kot Sarang Logistics Base
After the well is completed, the crew must start the flow of oil into the well. For limestone reservoir
rock, acid is pumped down the well and out the perforations. The acid dissolves channels in the
limestone that lead oil into the well. For sandstone reservoir rock, a specially blended fluid containing
proppants (sand, walnut shells, aluminium pellets) is pumped down the well and out the perforations.
The pressure from this fluid makes small fractures in the sandstone that allow oil to flow into the well,
while the proppants hold these fractures open. Once the oil is flowing, the oil rig is removed from the
site and production equipment is set up to extract the oil from the well.
11.2. EXTRACTING OIL
After the rig is removed, the crew puts a pump on the well head.
In the pump system, an electric motor drives a gear box that moves a lever. The lever pushes and pulls
a polishing rod up and down. The polishing rod is attached to a sucker rod, which is attached to a
pump. This system forces the pump up and down, creating a suction that draws oil up through the well.
In some cases, the oil may be too heavy to flow. In these cases, the crew drills a second hole into the
reservoir and injects steam under pressure. The heat from the steam thins the oil in the reservoir, and
the pressure helps push it up the well. This process is called enhanced oil recovery.
11.3. OFFSHORE OIL DRILLING
Not all oil is accessible on land or in shallow waters. You can find some oil deposits buried deep under
the ocean floor. Reaching these oil deposits is dangerous, but if done correctly, it can also be
rewarding. If things go wrong, however, the results can be deadly both for oil workers and the
surrounding environment.
Using sonic equipment, oil companies determine the drilling sites most likely to produce oil. Then
they use a mobile offshore drilling unit (MODU) to dig the initial well. Some units are converted into
production rigs, meaning they switch from drilling for oil to capturing oil once it's found. Most of the
time, the oil company will replace the MODU with a more permanent oil production rig to capture oil.

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OGDCL internship report on oil and gas operations

  • 1. INTERNSHIP REPORT 1 OGDCL Kot Sarang Logistics Base TABLE OF CONTENTS 1. INTRODUCTION----------------------------------------------------------------------------------------------------------4 1.1. ESTABLISHMENT OF OGDC: -------------------------------------------------------------------------------------------------4 1.2. LOGISTICS BASE KOT SARANG: ---------------------------------------------------------------------------------------------4 1.3. OIL AND GAS TRAINING INSTITUTE (OGTI)------------------------------------------------------------------------------5 1.3.1. AIMS AND OBJECTIVES OF OGTI----------------------------------------------------------------------------------------------------5 1.4. BACKGROUND OF THE INTERNSHIP---------------------------------------------------------------------------------------5 1.5. PURPOSE OF THE INTERNSHIP----------------------------------------------------------------------------------------------5 1.6. SCOPE OF THE STUDY ---------------------------------------------------------------------------------------------------------6 1.7. LIMITATION OF THE STUDY--------------------------------------------------------------------------------------------------6 2. PRESENT STATUS OF THE COMPANY -------------------------------------------------------------------------------6 2.1. VISION STATEMENT -----------------------------------------------------------------------------------------------------------6 2.2. MISSION STATEMENT---------------------------------------------------------------------------------------------------------6 2.3. OBJECTIVES ----------------------------------------------------------------------------------------------------------------------6 2.4. HISTORICAL BACKGROUND OF THE COMPANY ------------------------------------------------------------------------6 2.4.1. ESTABLISHMENT ------------------------------------------------------------------------------------------------------------------------6 2.4.2. DEVELOPMENT --------------------------------------------------------------------------------------------------------------------------7 2.5. PRODUCT LINE ------------------------------------------------------------------------------------------------------------------7 2.6. FUNCTION OF OIL AND GAS DEVELOPMENT COMPANY ------------------------------------------------------------7 3. ORGANIZATIONAL STRUCTURE --------------------------------------------------------------------------------------8 3.1. MAIN OFFICES-------------------------------------------------------------------------------------------------------------------8 3.2. MAIN DEPARTMENTS ---------------------------------------------------------------------------------------------------------9 4. DRILLING OPERATION SERVICES----------------------------------------------------------------------------------- 10 4.1. WELL SERVICES:--------------------------------------------------------------------------------------------------------------- 10 4.2. FUNCTIONS AND RESPONSIBILITIES------------------------------------------------------------------------------------- 10 4.3. HUMAN RESOURCES: ------------------------------------------------------------------------------------------------------- 10 5. CEMENTATION --------------------------------------------------------------------------------------------------------- 10 5.1. MUD PLANT:------------------------------------------------------------------------------------------------------------------- 10 5.2. CUTTING BOTTLE ------------------------------------------------------------------------------------------------------------- 11
  • 2. INTERNSHIP REPORT 2 OGDCL Kot Sarang Logistics Base 5.3. KENTHWORTH CEMENT PUMP TRUCK--------------------------------------------------------------------------------- 11 5.4. AIR COMPRESSOR------------------------------------------------------------------------------------------------------------ 12 5.5. CEMENT SLURRY MIXER---------------------------------------------------------------------------------------------------- 12 5.6. MUD DIVISION/ DRILLING FLUID SERVICES: -------------------------------------------------------------------------- 13 5.7. BASIC FUNCTIONS OF MUD ----------------------------------------------------------------------------------------------- 13 6. WELL STIMULATION: ------------------------------------------------------------------------------------------------- 14 6.1. INTRODUCTION TO STIMULATION -------------------------------------------------------------------------------------- 14 6.2. TYPES OF WELL TREATMENT---------------------------------------------------------------------------------------------- 14 6.2.1. MATRIX ACIDIZING -------------------------------------------------------------------------------------------------------------------14 6.2.2. HYDRAULIC FRACTURING TREATMENT-----------------------------------------------------------------------------------------15 6.2.3. FRACTURING FLUIDS AND ADDITIVES ------------------------------------------------------------------------------------------15 6.3. EQUIPMENT USED FOR STIMULATION --------------------------------------------------------------------------------- 16 6.3.1. NITROGEN PUMPER------------------------------------------------------------------------------------------------------------------16 6.3.2. COIL TUBING UNIT--------------------------------------------------------------------------------------------------------------------16 7. OVERHAULING SECTION/RIG MAINTENANCE KOT SARANG ----------------------------------------------- 17 7.1. REPAIR AND MAINTENANCE: --------------------------------------------------------------------------------------------- 18 7.1.1. ENGINES: --------------------------------------------------------------------------------------------------------------------------------18 7.1.2. MUD PUMP-----------------------------------------------------------------------------------------------------------------------------21 7.1.3. DRAW-WORK SR. TF-20 -------------------------------------------------------------------------------------------------------------22 7.1.4. SWIVEL/KELLY SPINNER SR. 6600 ------------------------------------------------------------------------------------------------23 8. LOGISTICS WORKSHOP----------------------------------------------------------------------------------------------- 23 8.1. FUNCTIONS -------------------------------------------------------------------------------------------------------------------- 24 8.2. INVENTORY OF HEAVY OIL FIELD TRANSPORT ----------------------------------------------------------------------- 25 8.3. PAST PERFORMANCE / ACHIEVEMENTS ------------------------------------------------------------------------------- 25 8.4. CAPABILITIES ------------------------------------------------------------------------------------------------------------------ 25 9. OIL WELL DRILLING BY OGDCL ------------------------------------------------------------------------------------- 26 9.1. INTRODUCTION--------------------------------------------------------------------------------------------------------------- 26 9.2. FUNCTIONS -------------------------------------------------------------------------------------------------------------------- 27 9.3. RESOURCES -------------------------------------------------------------------------------------------------------------------- 27 9.4. OPERATIONS------------------------------------------------------------------------------------------------------------------- 27 9.4.1. FORMING OIL --------------------------------------------------------------------------------------------------------------------------27 9.4.2. LOCATING OIL--------------------------------------------------------------------------------------------------------------------------28
  • 3. INTERNSHIP REPORT 3 OGDCL Kot Sarang Logistics Base 10. OIL RIG SYSTEMS --------------------------------------------------------------------------------------------------- 30 11. THE OIL DRILLING PROCESS-------------------------------------------------------------------------------------- 32 11.1. TESTING FOR OIL ---------------------------------------------------------------------------------------------------------- 32 11.2. EXTRACTING OIL----------------------------------------------------------------------------------------------------------- 33 11.3. OFFSHORE OIL DRILLING------------------------------------------------------------------------------------------------ 33
  • 4. INTERNSHIP REPORT 4 OGDCL Kot Sarang Logistics Base 1. INTRODUCTION Prior to OGDCL's emergence, exploration activities in the country were carried out by Pakistan Petroleum Ltd. (PPL) and Pakistan Oilfields Ltd. (POL). In 1952, PPL discovered a giant gas field at Sui in Balochistan. This discovery generated immense interest in exploration and five major foreign oil companies entered into concession agreements with the Government. During the 1950s, these companies carried out extensive geological and geophysical surveys and drilled 47 exploratory wells. As a result, a few small gas fields were discovered. Despite these gas discoveries, exploration activity after having reached its peak in mid-1950s, declined in the late fifties. Private Companies whose main objective was to earn profit were not interested in developing the gas discoveries especially when infrastructure and demand for gas was non-existent. With exploration activity at its lowest ebb several foreign exploration contracting companies terminated their operation and either reduced or relinquished land holdings in 1961. 1.1. ESTABLISHMENT OF OGDC: To review exploration in the energy sector the Government of Pakistan signed a long-term loan Agreement on 04 March 1961 with the USSR, whereby Pakistan received 27 million Rubbles to finance equipment and services of Soviet experts for exploration. Pursuant to the Agreement, OGDC was created under an Ordinance dated 20th September 1961. The Corporation was charged with responsibility to undertake a well thought out and systematic exploratory programs and to plan and promote Pakistan's oil and gas prospects. As an instrument of policy in the oil and gas sector, the Corporation followed the Government instructions in matters of exploration and development. The day to day management was however, vested in a five-member Board of Directors appointed by the Government. In the initial stages the financial resources were arranged by the GOP as the OGDC lacked the ways and means to raise the risk capital. The first 10 to 15 years were devoted to development of manpower and building of infrastructure to undertake much larger exploration programmes. 1.2. LOGISTICS BASE KOT SARANG: Logistics department has the resources and expertise of shifting rigs throughout Pakistan in rough and rugged Hilly terrain, sandy and plan areas in remote fields of KPK, Punjab, Sindh and Baluchistan Provinces. Besides providing quality MUD Engineering, Cementation & Stimulation services, for the enhancement of Exploration & Production Activities.
  • 5. INTERNSHIP REPORT 5 OGDCL Kot Sarang Logistics Base 1.3. OIL AND GAS TRAINING INSTITUTE (OGTI) The oil and gas development company limited (OGDCL) was set up in 1961 in the public sector under the ministry of petroleum and natural resources. 1.3.1. Aims and Objectives of OGTI The aims and objectives of OGTI are to identify the training needs of the industry, offer practical training programme to professional of the petroleum industry, and provide training advice and guidance to OGDC and to help established standards for training which will meet the performance needs in the field and on the job. OGTI is dedicated to: Establish courses and in-house training programmes which will meet the specific needs of OGDC and the Pakistan petroleum industry. “Designing training material that recognizes the capabilities and specific needs of newly hired employees and those who change their job assignment providing refresher and upgrade training for industry personnel in cost effective manner” In-house basic training programmes are being designed and developed to provide a base level of training which employees require to function in their jobs. OGDC recruits men from all across Pakistan. The universities and technical schools do not provide the full range of subject matter necessary for a graduate entering the petroleum industry. It is OGTI’S intention to ensure that the individual has an opportunity to obtain this training within his first two years with OGDC. In addition to basic training courses, OGTI will Organizes in-house technology update seminars. 1.4. BACKGROUND OF THE INTERNSHIP Oil industry is a lifeline for an economy. It is a world of oil exploration, oil refining and engineering. Pakistan understands the importance of this industry for its economic uplift. Therefore the government of Pakistan established OGDCL in 1961. OGDCL is the leading firm providing 23% of total consumption, saving Pakistan from imports and contributing to economy by paying different charges to the government. 1.5. PURPOSE OF THE INTERNSHIP This report is based on Internship carried out for the fulfilment of the degree requirement of the Bachelor of Science Degree in Mechanical Engineering at the International Islamic University Islamabad. The purpose of the Internship is to do practical work in field and apply the knowledge of classroom lectures to the real life situations.
  • 6. INTERNSHIP REPORT 6 OGDCL Kot Sarang Logistics Base 1.6. SCOPE OF THE STUDY The scope of my internship is focused on the Mechanical Engineering operations in Logistic Field Kot Sarang. This report will explains department’s working but also flow of work activities among the sections and fields. 1.7. LIMITATION OF THE STUDY No matter how efficiently a study is conducted, it cannot be perfect in all respects. The problem of short time period also makes the analysis restricted as one cannot properly understand and thus analyze all the operations of the field just in four weeks. 2. PRESENT STATUS OF THE COMPANY 2.1. VISION STATEMENT “To be a leading, regional Pakistani E & P Company, recognized for its people, partnerships and performance” 2.2. MISSION STATEMENT Our mission is to become a competitive, dynamic and growing E & P Company, rapidly enhancing our reserves through world class workforce, best management practices and technology and maximizing returns to all stakeholders by capturing high value business opportunities within the country and abroad, while being a responsible corporate citizen. 2.3. OBJECTIVES a) Developing E & P Work Flow Models for Data Integration and connectivity. b) Conduct geo-scientific, algorithms and systems architecture research leading to the development of robust, interactive and user-friendly geosciences applications software that are tightly integrated into the workflow environment. c) Detailed testing of the developed applications to achieve the highest performance. d) Detailed testing of the developed applications to achieve the highest performance. e) Training and systems support to the end - users. 2.4. HISTORICAL BACKGROUND OF THE COMPANY 2.4.1. Establishment The Oil & Gas Development Company Limited (OGDCL) was created under an Ordinance in 1961, to undertake comprehensive exploratory program and promote Pakistan’s oil and gas prospects. In 1997, it was converted into a Public Limited Company and is now governed by the Companies Ordinance 1984.
  • 7. INTERNSHIP REPORT 7 OGDCL Kot Sarang Logistics Base 2.4.2. Development With a balanced, efficient and competitive structure, OGDCL explores and exploits indigenous resources for optimum production of oil and gas, besides seeking opportunities abroad. OGDCL has the largest acreage position in Pakistan and currently operates 17 exploration concessions and holds non –operated working interest in another 7 exploration concessions. In addition OGDCL has 35 Mining and Development & Production Leases, which are operated by it besides having working interest ownership in 28 non-operated Mining and Development & Production Leases, OGDCL has an extensive database. Services of the Company’s highly qualified and skilled expertise in the fields of geology and geophysics are frequently availed y the local and foreign oil companies. It also leases out its drilling rigs to the private sector and carries out seismic surveys and data processing on contract for these companies on extremely competitive rates. OGDCL now holds the largest shares of oil and gas reserves in the country, i.e. 48% of total oil and 37% of total gas reserves. Its percentage share of the total oil and gas production in Pakistan is 34% and 28% respectively. On the basis of its activities since inception, the company has until June 30, 2003 and made 59 discoveries with a success ratio of 1:3. OGDCL’s updated estimates for remaining recoverable oil and gas reserves as on 1st July, 2003, stood at 9.228 billion Standard cubic feet (BSCF) of gas and 164.25 million barrels of oil including company’s share in non – operated Joint Ventures. During the last 42 years OGDCL has grown into a technically and commercially viable organization. 2.5. PRODUCT LINE In the product line of OGDCL, the following are its products by which it is earning profits: a) Crude Oil. b) Gas. c) LPG. d) Sulphur. e) Gasoline/High and Low Speed Diesel. f) Kerosene Oil. g) Naphthalene. h) Solvent Oil. 2.6. FUNCTION OF OIL AND GAS DEVELOPMENT COMPANY The main functions of the Corporation are:- a) To plan, organize and implement programs of exploration of development of oil and resources. b) To carry out geological, geophysical and other surveys for the exploration of oil and gas.
  • 8. INTERNSHIP REPORT 8 OGDCL Kot Sarang Logistics Base c) To carry out drilling and other prospecting operations to prove and estimate the reserves of oil and gas. d) To produce, refine and sale oil and gas e) To perform other functions as the Federal Government may from time to time assign to the Corporation. 3. ORGANIZATIONAL STRUCTURE 3.1. MAIN OFFICES OGDCL Head Office is situated at Jinnah Avenue, Blue Area Islamabad and Regional Offices are located in Karachi and Multan. Besides this OGDCL has its Liaison Offices in Hyderabad, Sukkhur, and Quetta for operational activities. The overall organizational structure / organogram is as under A Board of Directors comprising twelve Directors, all of whom are nominated by the Ministry of Petroleum and Natural Resources, is responsible for policy related issues. The autonomous Board is headed by a non-executive Chairman and there is a Managing Director/Chief Executive Officer. Following are the main offices located throughout Pakistan: 1. OGDCL Head Office, Jinnah Avenue Islamabad. 2. Pirkoh Gas Company Private Limited, Islamabad. 3. OGDCL Regional Office, Shafi Chamber, Karachi 4. OGDCL Regional Office, Multan 5. OGDCL Liaison Office, Quetta 6. OGDCL Liaison Office, Sukkur 7. OGDCL West Wharf Office, Karachi 8. OGDCL Base Store, Islamabad 9. OGDCL Base Store, Khadiji, Karachi 10. OGDCL Base Store, Korangi 11. OGDCL Base Store, Kot Addu 12. OGDCL Logistics Field, Kot Sarang 13. Medical Centres, Islamabad, Rawalpindi & Karachi 14. OGDCL Workshops, Islamabad 15. Oil & Gas Training Institute, Islamabad.
  • 9. INTERNSHIP REPORT 9 OGDCL Kot Sarang Logistics Base 3.2. MAIN DEPARTMENTS 1. Administration Department 2. Corporate Department 3. Human Resource Department 4. Personnel Department 5. Security Department 6. Legal / Regulation Department 7. Communication Department 8. Procurement Department 9. Stores Department 10. Finance & Accounts Department 11. Audit Department Exploration & Production Departments 1. Exploration Department 2. Exploitation Department 3. Production Department 4. Process Department Technical Services Department 1. Drilling Department 2. Data Logging Department 3. Mud Engineering Department 4. Well Services Department 5. Cementation Department 6. Geological Well Supervision Department 7. Engineering Department 8. Wire line Logging Department 9. Geological Department 10. Data Processing Department
  • 10. INTERNSHIP REPORT 10 OGDCL Kot Sarang Logistics Base 4. DRILLING OPERATION SERVICES 4.1. WELL SERVICES: To provide quality MUD Engineering, Cementation & Stimulation services, for the enhancement of E & P Activities. 4.2. FUNCTIONS AND RESPONSIBILITIES  To arrange & supply Mud Chemicals, Cement & additives to the Drilling & work over Rigs.  To prepare & implement Mud & Hydraulics programmes for drilling of OGDCL wells.  To design cement slurries in the Cement Laboratory and to execute the Cementation programmes  To test Mud & Mud Chemicals, in the Mud Laboratory for its suitability in Drilling Operations.  To provide Nitrogen & Coil tubing services to work over wells and at processing Plants.  Shifting of Mud between wells when feasible.  Acid Pumper for stimulation jobs at wells 4.3. HUMAN RESOURCES: The department has a team of technically sound, highly experienced and dedicated professionals consisting of Engineers, Chemist and Technicians. Most of the Professionals have more than 15-20 years of working experience in their professions and have undergone training in Pakistan in OGDCL and with the Multinational Companies at USA and Canada. 1. Head Office OGDCL House Blue Area Islamabad. Central Control 2. Logistics base Kot Sarang located in Teh. Talagang Distt. Chakwal For North 3. Logistics base Kot Addu located in Teh. Muzaffar Garh Distt. Muzaffer Garh For Mid Country 4. Logistics Unit Tando Alam located in Teh. Hyderabad Distt. Hyderabad. For South 5. CEMENTATION 5.1. MUD PLANT: Mud division of Well Services Department has recently established a Mud Plant of about 1500 bbls storage capacity at Tando Alam Oil Complex (Sindh Province). This plant is meant for storage and necessary treatment of the left-over mud for recycling purpose. In the current fiscal year a further enhancement of the capacity of the Mud Plant is planned so as to make the total capacity up to 3500 bbl,
  • 11. INTERNSHIP REPORT 11 OGDCL Kot Sarang Logistics Base 5.2. CUTTING BOTTLE Cutting Bottle is an intermediate & important part of bulking equipment that is commissioned in the bulking and pumping circuit to load and shift the cement to pressure silos taking pneumatic drive from the Air compressor. 5.3. KENTHWORTH CEMENT PUMP TRUCK  Twin Engine 500 HHP  32 BBL RMX Skid Unit Cat 3406 Engine  Allison HT750 Transmission, Triplex Oil Well Pump
  • 12. INTERNSHIP REPORT 12 OGDCL Kot Sarang Logistics Base 5.4. AIR COMPRESSOR Nine Positive Displacement Air Compressors are available with the Cementation Divisions to cater necessary Cement Operations. These are actually reciprocating type compressors with three (03) cylinders , which can intake air from atmosphere at or below atmospheric pressure (14.7 psi-absolute) and deliver through or without cutting bottle to pressurize The Pressure Silos. The delivery pressure has a lower limit of 40 psi gauge pressure. 5.5. CEMENT SLURRY MIXER 100 BBL Cement Slurry Mixer (CSM), 03 No. having mixing ability to prepare slurry of 22.0 ppg Slurry Weight (In addition to that, 02 Nos 20 BBL capacities CSM are also in the possession of Cementation Division).
  • 13. INTERNSHIP REPORT 13 OGDCL Kot Sarang Logistics Base 5.6. MUD DIVISION/ DRILLING FLUID SERVICES: Having been one of the important divisions of Well Services Department, the subject is extending to provide its discrete Mud Engineering Services along with Mud Chemicals on a vast scale at various OGDCL well locations to drill down the wells to specific depth for exploiting desirable prospects. Mostly popular with synonym “The Blood” in mainstream drilling operations, the Mud, also known as “Drilling Fluid” is one which contain Gel or High yield clay, pre-hydrated in fresh or brackish(salt or sea) water as a base medium , which performs number of Functions while circulating through a drilling hole. In conjunction to base clay, there are chemicals, commonly known as Polymers, which are used to control the miscellaneous properties & fluid dynamics, as dictated by the well condition. 5.7. BASIC FUNCTIONS OF MUD A Large amount of experimental work has been done in connection with the preparation of mud fluids of various types, but comparatively little information is available as to the function& of the different types of muds and details in regard to the ways in which these functions are carried out. Following is a brief detail of, what a drilling fluid can do while in drilling hole.  To transport & carry away the cuttings & cavings as the bit cuts down the formation , while drilling down to a specific depth, known as “Target Depth”  To cool & lubricate, the metallic hardware, including bit, Drill Colours & Drill Pipes as well as wall of the hole.  To control the subsurface formation pressure using the “Hydrostatic Head” of contained fluid while in static condition & Equivalent Circulating Density “ECD” in dynamic conditions.  To maintain well bore stability
  • 14. INTERNSHIP REPORT 14 OGDCL Kot Sarang Logistics Base  To consolidate certain strata, such as heaving & sloughing water sensitive shales, which tend to breakdown as the water phase react with sodium montmorillinite & cause serious mechanical problems, including, pipe-stucking, bridging & difficulty in drilling.  To seal & clog permeable formation in Non-Productive zones. Extra care is taken to run “Non- Damaging type Mud” at zone of interest in the likelihood of hydrocarbons, as anticipated by GDO & previous Composite Logs.  To control & transmit the hydraulic energy to string, tools & bit in the hole.  To control the corrosion of metallic components to acceptable levels  To acquire adequate information about the Formations & important lithalogies by the onsite geologist evaluation of cuttings & caving’s transported to surface by existing mud.  To be used as media for transmitting logging information using conductivity of Mud.  To facilitate cementing & completion 6. WELL STIMULATION: Stimulation is define as to perform operations on the oil wells so that we increase production of the oil from the well. 6.1. INTRODUCTION TO STIMULATION Reservoir stimulation deals with well productivity. As a result, a successful stimulation first requires accurate identification of parameters controlling well productivity and the determination of whether or not stimulation can improve production. This is therefore the very first step of the stimulation job design. 6.2. TYPES OF WELL TREATMENT  Hydraulic fracturing treatment  Matrix Acidizing 6.2.1. Matrix acidizing A low value of the permeability or high value of the skin factor would result in low well productivity. Matrix acidizing is generally applied to reduce a large skin resulting from permeability damage during completion or production. There is virtually nothing practical that can be done to the permeability, although investigators have erroneously suggested that hydraulic fracturing increases the reservoir permeability. A hydraulic fracture, as it will later be shown, is a superimposed structure on a reservoir which remains largely undisturbed outside of the fracture. The fracture, however, can greatly improve the well productivity by creating a large contact surface between the well and the reservoir. The production improvement results from effectively increasing the wellbore radius, which is indicated in subsequent testing as a reduction in the skin factor, generally to negative value
  • 15. INTERNSHIP REPORT 15 OGDCL Kot Sarang Logistics Base 6.2.2. HYDRAULIC FRACTURING TREATMENT A theoretical examination of the fracturing of rocks by means of pressure applied in boreholes leads to the conclusion that, regardless of whether the fracturing fluid is of the penetrating or non- penetrating type, the fractures produced should be approximately perpendicular to the axis of least stress (Fig. 7). The general state of stress underground is that in which the three principal stresses are unequal. For tectonically relaxed areas characterized by normal faulting, the least stress should be horizontal; the fracture produced should be vertical with the injection pressure less than that of the overburden. In areas of active tectonic compression, the least stress should be vertical and equal to the pressure of the overburden; the fracture should be horizontal with injection pressure equal to or greater than the pressure of the overburden. 6.2.3. Fracturing Fluids and Additives To achieve successful stimulation, the fracturing fluid must have certain physical and chemical properties: 1. It should be compatible with the formation rock. 2. It should be compatible with the formation fluids. 3. It should be capable of suspending proppants and transporting them deep into the fracture. 4. It should be capable, through its inherent viscosity, to develop the necessary fracture width to accept proppants. 5. It should be an efficient fluid (i.e., have low fluid loss). It should be easy to remove from the formation. 6. It should have low friction pressure. Preparation of the fluid should be simple and easy to perform in the field. 7. It should be stable so that it will retain its viscosity throughout the treatment. 8. The fracturing fluid should be cost-effective.
  • 16. INTERNSHIP REPORT 16 OGDCL Kot Sarang Logistics Base 6.3. EQUIPMENT USED FOR STIMULATION 6.3.1. NITROGEN PUMPER Vacuum Truck (Mack), 05 Nos; 350 HHP, 120 BBLs capacity (can haul 20 PPG Mud) Acid Bulker, 400 HHP, 72 BBL Capacities. 18 Nos,“HP” Silos having 1000 Ft3 bulk Capacity with 40 psi Operating Pressure. 6.3.2. COIL TUBING UNIT The coil tubing unit is used for the basic stimulation jobs. The coil tubing unit which consists of a metallic pipe wrapped around in the form of a roll. It is inserted into the well for various stimulation purposes.
  • 17. INTERNSHIP REPORT 17 OGDCL Kot Sarang Logistics Base 7. OVERHAULING SECTION/RIG MAINTENANCE KOT SARANG Overhauling section is located inside KOT SARANG Logistics Base providing the maintenance functions for the RIG components and machinery including Engines, Draw works & Mud Pumps etc. These machineries all-over from OGDCL field locations came for the repairing and overhauling in the Base KOT SARNG. This section provides services of maintenance under the supervision of Engineers which led the task of overhauling of machinery. The section is facilitated with the experienced technicians provided with the advance tools for the maintenance of machinery along with the facilities of gas welding, arc welding and Fork lifting. The part of this section also provides winding of electrical motors and repairing of electrical machines. Apparatus:  Gas welding Equipment  Arc welding Equipment  Fork-Lifter  Motor winding machine
  • 18. INTERNSHIP REPORT 18 OGDCL Kot Sarang Logistics Base 7.1. REPAIR AND MAINTENANCE: 7.1.1. ENGINES: CAT G3406 GAS ENGINE Sr. 2WB2732 Tough and durable, built on the industry-standard G3400 platform brings maximum uptime and low operating cost to your operation. G3406 engines meet the most demanding continuous duty gas compression applications with virtually no unscheduled downtime. Ideal applications for G3406 engines include gas lift, gas gathering, and wellhead gas compression. Technical Specifications: Ratings: 6 cylinder 160-242 bkW (215-325 bhp) @ 1800 rpm are NSPS site compliant capable with customer-provided air-fuel ratio control and after treatment or available for non-regulated areas.
  • 19. INTERNSHIP REPORT 19 OGDCL Kot Sarang Logistics Base CAT G3408 GAS ENGINE Sr. IDZ14242 Tough and durable, built on the industry-standard G3400 platform brings maximum uptime and low operating cost to your operation. G3408 engines meet the most demanding continuous duty gas compression applications with virtually no unscheduled downtime. Ideal applications for G3408 engines include gas lift, gas gathering, and wellhead gas compression. Technical Specifications: Ratings: 8 cylinder190-298 kW (255-400 bhp) @ 1800 rpm are NSPS site compliant capable with customer-provided air-fuel ratio control and after treatment or available for non-regulated areas
  • 20. INTERNSHIP REPORT 20 OGDCL Kot Sarang Logistics Base CAT D398 PROPULSION ENGINE Sr. 66BO-9752 These engines are the ideal solution for your demanding operations in the oilfield. Decades of field operation and intense research and development allow Cat D398 engines to deliver excellent performance with low operating costs and emissions. This is an ideal engine for land mechanical drilling applications such as mud pump drives. Cat engines are backed by the worldwide network of Cat dealers ready to support your operation with technical support, service, parts, and warranty. Technical Specifications: Ratings: 12 cylinder 597-858 bkW (800-1150 bhp) @ 1800-2100 rpm meet U.S. EPA Tier 2 equivalent emission standards.
  • 21. INTERNSHIP REPORT 21 OGDCL Kot Sarang Logistics Base 7.1.2. MUD PUMP A mud pump is a reciprocating piston/plunger device designed to circulate drilling fluid under high pressure (up to 7,500 psi (52,000 kPa)) down the drill string and back up the annulus. Mud pump is a large reciprocating pump used to circulate the mud (drilling fluid) on a drilling rig. It is an important part of the oil well drilling equipment. The overhauling/Rig maintenance have special maintenance technicians whom responsible for the maintenance and repair work of the machine. Mud Pumps and other mechanical equipment inspected and maintained on a scheduled and timely basis to find and address problems ahead of time, in order to avoid unscheduled shutdown. The engineers attend to the size of the sediment particles; when finding large particles, the Mud Pump wearing part often checked for repairing needs or replacement. The wearing parts for Mud Pumps include pump casing, bearings, impeller, piston, liner, etc. Advanced anti-wear measures adopted to increase the service life of the wearing parts, which can reduce the investment cost of the project, and improve production efficiency. At the same time, wearing parts and other Mud Pump parts are repaired rather than replaced when possible
  • 22. INTERNSHIP REPORT 22 OGDCL Kot Sarang Logistics Base 7.1.3. DRAW-WORK Sr. TF-20 A draw-works is the primary hoisting machinery that is a component of a rotary drilling rig. Its main function is to provide a means of raising and lowering the traveling blocks. A modern draw- works consists of five main parts: the drum, the motor(s), the reduction gear, the brake, and the auxiliary brake. Complete overhauling of Draw-Works is done by the Rig maintenance department of KOT SARANG under the supervision of engineers.
  • 23. INTERNSHIP REPORT 23 OGDCL Kot Sarang Logistics Base 7.1.4. SWIVEL/KELLY SPINNER Sr. 6600 The Kelly Spinner is used for driving the Kelly stem by air or hydraulic motor, and matching to the clamp of the mouse hole to making up with the single automatically, during the drilling operation. It has the advantages of safety, high efficiency and manpower reduction. 8. LOGISTICS WORKSHOP Logistics department has the resources and expertise of shifting rigs throughout Pakistan in rough and rugged Hilly terrain, sandy and plan areas in remote fields of KPK, Punjab, Sindh and Baluchistan Provinces.
  • 24. INTERNSHIP REPORT 24 OGDCL Kot Sarang Logistics Base Logistics workshop is part of the base KOT SARANG is equipped for maintenance, repair, and overhauling of Earth-Moving-Machines which are used for the transportation, construction and load- lifting purposes. These machines include Crawler machines, Shovels, Clamshells, Hydraulic Cranes, PowerShell, Excavator, Bulldozers, Fuel-Tankers and Loading-Trucks etc. Engineers along with the technicians put their efforts to keep these machines working and running for the operational needs of OGDCL. All the logistics equipment needed for the exploration and production is maintained by the logistics workshop of KOT SARANG. 8.1. FUNCTIONS  Shifting of drilling and work-over rigs.  Shifting of tabular chemicals and all type of supplies for drilling rig sites.  Shifting of all type of material and equipment of service companies associated with E & P activities.
  • 25. INTERNSHIP REPORT 25 OGDCL Kot Sarang Logistics Base 8.2. INVENTORY OF HEAVY OIL FIELD TRANSPORT Logistics department has acquired variety of good equipment and maintained operational bases consisting of heavy transport which include trailers cranes and dozers. The trailers and cranes of Logistics department are fully equipped with latching equipment and necessary slings etc. for different load binding, loading and off-loading. The brief of usable inventory is as under:  60 High bed trailers capacity 40 ton 6x6 and 6x4 drive.  10 Low-bed trailers capacity 50 ton 6x6 and 6x4 drive.  10 Cranes capacity 50/40 ton 8x4 drive lattice boom extendable to 120 feet  2 Dozer Caterpillar D8N. 8.3. PAST PERFORMANCE / ACHIEVEMENTS Average rig shifting per year 18 Drilling + 07 Work over. General shifting assignments of supplies for well sites For all the above wells. General shifting assignments for Exploration, Production, Plant and Process, Store and Engineering Depts. Etc. As and when required. Logistics department has the resources and expertise of shifting rigs throughout Pakistan in rough and rugged Hilly terrain, sandy and plan areas in remote fields of KPK, Punjab, Sindh and Baluchistan Provinces. 8.4. CAPABILITIES The logistics machinery is capable of moving the following rigs at a time: 1. Long distance over 1000 KM. round trip 01 Rig move at a time 2. Short distance below 1000 KM round trip 02 Rig moves at a time 3. Within field radius of 150 KM 03 Rig Moves at a time.
  • 26. INTERNSHIP REPORT 26 OGDCL Kot Sarang Logistics Base 9. OIL WELL DRILLING by OGDCL 9.1. INTRODUCTION As Pakistan’s largest oil & gas producer, OGDCL share in Country’s total oil and gas production stands at 42,520 bpd of Crude oil (Net Averaged), 1,120 mmcfd of Gas (Net Averaged) and 171 M. T/d of LPG (Net Averaged). Having 40 operated oil & gas fields, geographically distributed all across the country; OGDCL has embarked upon development works on 32 fields, to bring these on production. OGDCL has 35 oil & gas processing plants. These include Dehydration, LPG, Sulphur Recovery, H2S Removal, Gas Sweetening, Condensate Stabilization, Refining and Compression plants. Various measures have been taken in order to augment production levels to reach new heights. This includes setting up of aggressive targets, enduring commitment by its professionals, and induction of latest technologies, pursuing industry best practices, strengthening surveillance techniques, enhancing in-house engineering design & simulation capabilities, utilization of state-of-the art automation systems and fostering use of information technology.
  • 27. INTERNSHIP REPORT 27 OGDCL Kot Sarang Logistics Base 9.2. FUNCTIONS  Well Design and project manuals for all exploratory, appraisal & development wells.  AFE /Wells cost time.  Monitoring AFE approval & actual cost on daily basis.  Drilling engineering studies.  Drilling Operations as per approved programs.  Supervision of drilling & work over operations.  Work over operations as per approved programs.  Preventive maintenance, repair and overhauling of rig equipment’s.  Fishing operations on limited scale.  Monitoring of non-operated joint venture. 9.3. RESOURCES OGDCL owns 07 drilling & 01 work-over rigs as under:  Deep drilling up to 6000 M 01 Rig  Deep drilling up to 5000 M 03 Rigs  Medium drilling up to 4000 M 01 Rig  Shallow drilling up to 2800 M 02 Rig  Work over medium depth up to 3500 M 01 Rig All rigs are operated by OGDCL’s own experienced & qualified crew. The rigs crew have vast drilling & work-over experience of wells scattered all over the country. Maintenance standards at rigs have been improved. 9.4. OPERATIONS 9.4.1. FORMING OIL Oil comes from the remains of tiny plants and animals (plankton) that died in ancient seas between 10 million and 600 million 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. So microorganisms broke the remains into carbon-rich compounds that formed organic layers. The organic material mixed with the sediments, forming fine-grained shale, or source rock. As new sedimentary layers were deposited, they exerted intense pressure and heat on the source rock. The heat and pressure distilled the organic material into crude oil and natural gas. The oil flowed from the source rock and accumulated in thicker, more porous limestone or
  • 28. INTERNSHIP REPORT 28 OGDCL Kot Sarang Logistics Base sandstone, called reservoir rock. Movements in the Earth trapped the oil and natural gas in the reservoir rocks between layers of impermeable rock, or cap rock, such as granite or marble. These movements of the Earth include:  Folding - Horizontal movements press inward and move the rock layers upward into a fold or anticline.  Faulting - The layers of rock crack, and one side shifts upward or downward.  Pinching out - A layer of impermeable rock is squeezed upward into the reservoir rock. 9.4.2. LOCATING OIL Whether employed directly by an oil company or under contract from a private firm, geologists are the ones responsible for finding oil. Their task is to find the right conditions for an oil trap -- the right source rock, reservoir rock and entrapment. Many years ago, geologists interpreted surface features, surface rock and soil types, and perhaps some small core samples obtained by shallow drilling. Modern oil geologists also examine surface rocks and terrain, with the additional help of satellite images. However, they also use a variety of other methods to find oil. They can use sensitive gravity meters to measure tiny changes in the Earth's gravitational field that could indicate flowing oil, as well as sensitive magnetometers to measure tiny changes in the Earth's magnetic field caused by flowing oil. They can detect the smell of hydrocarbons using sensitive electronic noses called sniffers. Finally, and most commonly, they use seismology, creating shock waves 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 exploration over water) Thumper truck - slams heavy plates into the ground (for exploration over land) Explosives - detonated after being drilled into the ground (for exploration over land) or thrown overboard (for exploration over water) The shock waves travel beneath the surface of the Earth and are reflected back by the various rock layers. The reflections travel at different speeds depending upon the type or density of rock layers through which they must pass. Sensitive microphones or vibration detectors detect the reflections of the shock waves -- hydrophones over water, seismometers over land. Seismologists interpret the readings for signs of oil and gas traps.
  • 29. INTERNSHIP REPORT 29 OGDCL Kot Sarang Logistics Base Once geologists find a prospective oil strike, they mark the location using GPS coordinates on land or by marker buoys on water. Once the site has been selected, scientists survey the area to determine its boundaries, and conduct environmental impact studies if necessary. The oil company may need lease agreements, titles and right-of way accesses before drilling the land. For off-shore sites, legal jurisdiction must be determined. After the legal issues are settled, the crew goes about preparing the land: The land must be cleared and levelled, and access roads may be built. Because water is used in drilling, there must be a source of water nearby. If there is no natural source, the crew drills a water well. The crew digs a reserve pit, which is used to dispose of rock cuttings and drilling mud during the drilling process, and lines 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 of offsite -- trucked away instead of placed in a pit. Once the land has been prepared, the crew digs several holes to make way for the rig and the main hole. A rectangular pit called a cellar is dug around the location of the actual drilling hole. The cellar provides a work space around the hole for the workers and drilling accessories. The crew then begins drilling the main hole, often with a small drill truck rather than the main rig. The first part of the hole is larger and shallower than the main portion, and is lined with a large-diameter conductor pipe. The crew digs additional holes off to the side to temporarily store equipment -- when these holes are finished, the rig equipment can be brought in and set up. Depending upon the remoteness of the drill site and its access, it may be necessary to bring in equipment by truck, helicopter or barge. Some rigs are built on ships or barges for work on inland water where there is no foundation to support a rig (as in marshes or lakes).
  • 30. INTERNSHIP REPORT 30 OGDCL Kot Sarang Logistics Base 10. OIL RIG SYSTEMS Once the equipment is at the site, the crew sets the rig up. Here are the major systems of a land oil rig:  Power system  Large diesel engines - burn diesel-fuel oil to provide the main source of power  Electrical generators - powered by the diesel engines to provide electrical power  Mechanical system - driven by electric motors  Hoisting system - used for lifting heavy loads; consists of a mechanical winch (draw- works) with a large steel cable spool, a block- and-tackle pulley and a receiving storage reel for the cable  Turntable - part of the drilling apparatus  Rotating equipment - used for rotary drilling  Swivel - large handle that holds the weight of the drill string; allows the string to rotate and makes a pressure-tight seal on the hole  Kelly - four- or six-sided pipe that transfers rotary motion to the turntable and drill string.  Turntable or rotary table - drives the rotating motion using power from electric motors.  Drill string - consists of drill pipe (connected sections of about 30 feet (10 meters) and drill collars. (larger diameter, heavier pipe that fits around the drill pipe and places weight on the drill bit)  Drill bit(s) - end of the drill that actually cuts up the rock; comes in many shapes and materials (tungsten carbide steel, diamond) that are specialized for various drilling tasks and rock formations.  Casing - large-diameter concrete pipe that lines the drill hole, prevents the hole from collapsing, and allows drilling mud to circulate.
  • 31. INTERNSHIP REPORT 31 OGDCL Kot Sarang Logistics Base  Circulation system - 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 through the kelly, rotary table, drill pipes and drill collars  Pump - sucks mud from the mud pits and pumps it to the drilling apparatus  Pipes and Hoses - connects pump to drilling apparatus  Mud-return line - returns mud from the hole  Shale Shaker - shaker/sieve that separates rock cuttings from the mud  Shale Slide - conveys cuttings to the reserve pit  Reserve pit - collects rock cuttings separated from the mud  Mud pits - where drilling mud is mixed and recycled  Mud-mixing hopper - where new mud is mixed and then sent to the mud pits  Derrick - support structure that holds the drilling apparatus; tall enough to allow new sections of drill pipe to be added to the drilling apparatus as drilling progresses  Blowout preventer - high-pressure valves (located under the land rig or on the sea floor) that seal the high-pressure drill lines and relieve pressure when necessary to prevent a blowout (uncontrolled gush of gas or oil to the surface, often associated with fire)
  • 32. INTERNSHIP REPORT 32 OGDCL Kot Sarang Logistics Base 11. THE OIL DRILLING PROCESS The crew sets up the rig and starts the drilling operations. First, from the starter hole, the team drills a surface hole down to a pre-set depth, which is somewhere above where they think the oil trap is located. There are five basic steps to drilling the surface hole. Place the drill bit, collar and drill pipe in the hole. Attach the kelly and turntable, and begin drilling. As drilling progresses, circulate mud through the pipe and out of the bit to float the rock cuttings out of the hole. Add new sections (joints) of drill pipes as the hole gets deeper. Remove (trip out) the drill pipe, collar and bit when the pre-set depth (anywhere from a few hundred to a couple-thousand feet) is reached. Once they reach the pre-set depth, they must run and cement the casing -- place casing-pipe sections into the hole to prevent it from collapsing in on itself. The casing pipe has spacers around the outside to keep it centred in the hole. The casing crew puts the casing pipe in the hole. The cement crew pumps cement down the casing pipe using a bottom plug, a cement slurry, a top plug and drill mud. The pressure from the drill mud causes the cement slurry to move through the casing and fill the space between the outside of the casing and the hole. Finally, the cement is allowed to harden and then tested for such properties as hardness, alignment and a proper seal. 11.1. TESTING FOR OIL Drilling continues in stages: The crew drills, then runs and cements new casings, then drills again. When the rock cuttings from the mud reveal the oil sand from the reservoir rock the crew may have reached the well's final depth. At this point, crew members remove the drilling apparatus from the hole and perform several tests to confirm this finding:  Well logging - lowering electrical and gas sensors into the hole to take measurements of the rock formations there  Drill-stem testing - lowering a device into the hole to measure the pressures, which will reveal whether reservoir rock has been reached  Core samples - taking samples of rock to look for characteristics of reservoir rock Once they've reached the final depth, the crew completes the well to allow oil to flow into the casing in a controlled manner. First, they lower a perforating gun into the well to the production depth. The gun has explosive charges to create holes in the casing through which oil can flow. After the casing has been perforated, they run a small-diameter pipe (tubing) into the hole as a conduit for oil and gas to flow up through the well. A device called a packer is run down the outside of the tubing. When the packer is set at the production level, it's expanded to form a seal around the outside of the tubing. Finally, they connect a multi-valved structure called a Christmas tree to the top of the tubing and cement it to the top of the casing. The Christmas tree allows them to control the flow of oil from the well.
  • 33. INTERNSHIP REPORT 33 OGDCL Kot Sarang Logistics Base After the well is completed, the crew must start the flow of oil into the well. For limestone reservoir rock, acid is pumped down the well and out the perforations. The acid dissolves channels in the limestone that lead oil into the well. For sandstone reservoir rock, a specially blended fluid containing proppants (sand, walnut shells, aluminium pellets) is pumped down the well and out the perforations. The pressure from this fluid makes small fractures in the sandstone that allow oil to flow into the well, while the proppants hold these fractures open. Once the oil is flowing, the oil rig is removed from the site and production equipment is set up to extract the oil from the well. 11.2. EXTRACTING OIL After the rig is removed, the crew puts a pump on the well head. In the pump system, an electric motor drives a gear box that moves a lever. The lever pushes and pulls a polishing rod up and down. The polishing rod is attached to a sucker rod, which is attached to a pump. This system forces the pump up and down, creating a suction that draws oil up through the well. In some cases, the oil may be too heavy to flow. In these cases, the crew drills a second hole into the reservoir and injects steam under pressure. The heat from the steam thins the oil in the reservoir, and the pressure helps push it up the well. This process is called enhanced oil recovery. 11.3. OFFSHORE OIL DRILLING Not all oil is accessible on land or in shallow waters. You can find some oil deposits buried deep under the ocean floor. Reaching these oil deposits is dangerous, but if done correctly, it can also be rewarding. If things go wrong, however, the results can be deadly both for oil workers and the surrounding environment. Using sonic equipment, oil companies determine the drilling sites most likely to produce oil. Then they use a mobile offshore drilling unit (MODU) to dig the initial well. Some units are converted into production rigs, meaning they switch from drilling for oil to capturing oil once it's found. Most of the time, the oil company will replace the MODU with a more permanent oil production rig to capture oil.