Oil And Gas Processing


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  • Oil And Gas Processing

    1. 1. Prepared by Mubarak Al Mansouri Procurement Officer, Commercial Division - Drilling and Logistic Section
    2. 2. Overview of this slide pack <ul><li>Section 1 : Overview of Supply chain Management . </li></ul><ul><li>Section 2: </li></ul><ul><ul><li>Component industries in Oil and Gas </li></ul></ul><ul><li>Section 3 : </li></ul><ul><ul><li>Global overview of energy industry. </li></ul></ul><ul><li>Section 4: </li></ul><ul><ul><li>ADNOC and the E&P group of companies in Abu Dhabi </li></ul></ul><ul><li>Section 5: ADMA-OPCO Supply chain Management </li></ul><ul><li>Section 4 </li></ul>
    3. 3. Agenda <ul><li>What is Supply Chain Management and Why is it important? </li></ul><ul><li>Is this something new? What is the history? </li></ul><ul><li>What are the basic elements of Supply Chain Management? </li></ul><ul><li>What are the forces driving Supply Chain Management today? </li></ul><ul><li>What are the risks/issues that affect my job as a Contracts Manager? </li></ul><ul><li>What about Supply Chain Security? </li></ul>
    4. 4. Definition of Supply Chain Management <ul><li>A supply chain is the stream of processes of moving goods from </li></ul><ul><ul><li>customer order </li></ul></ul><ul><ul><li>through the raw materials stage </li></ul></ul><ul><ul><li>Supply </li></ul></ul><ul><ul><li>Production </li></ul></ul><ul><ul><li>and distribution of products to the customer </li></ul></ul><ul><ul><li>Material and information flow Up and Down the Supply Chain </li></ul></ul>
    5. 5. Major Objectives Of Supply chain Process <ul><li>Major objectives of supply management : </li></ul><ul><li>To provide an uninterrupted flow of materials, supplies and services required to operate the organization </li></ul><ul><li>Minimize inventory investment and loss </li></ul><ul><li>Maintain and improve quality </li></ul><ul><li>Create relationships with competent suppliers </li></ul><ul><li>Set standards for supplies </li></ul><ul><li>Get supplies and services at lowest cost </li></ul><ul><li>Achieve harmonious, productive working relationships with other departments </li></ul><ul><li>Keep purchasing administrative costs low </li></ul><ul><li>Improve the organization's competitive position </li></ul>
    6. 6. Information, product, service, financial and knowledge flows Capacity, information, core competencies, capital, and human resource constraints Supplier Network Market Distribution Procurement Manufacturing Integrated Enterprise Distribution Network Relationship Management Generalized Supply Chain Model Material Flow Information Flow Materials End Consumers
    7. 7. 6 key elements to a supply chain <ul><li>Production </li></ul><ul><li>Supply </li></ul><ul><li>Inventory </li></ul><ul><li>Location </li></ul><ul><li>Transportation </li></ul><ul><li>Information </li></ul>
    8. 8. Production Element of Supply Chain <ul><li>Focus on what customer & market demand </li></ul><ul><li>Resource Management </li></ul><ul><ul><li>Internal sourcing (what and which plants) </li></ul></ul><ul><ul><li>Outsourcing to capable suppliers </li></ul></ul><ul><li>Capacity Management </li></ul><ul><ul><li>Workload schedules </li></ul></ul><ul><ul><li>Equipment plans (acquisition/maintenance) </li></ul></ul><ul><li>Order Management </li></ul><ul><li>Quality control </li></ul>
    9. 9. Supply Element of Supply Chain <ul><li>Partners in the Supply Chain </li></ul><ul><li>Assessing core/strategic competencies </li></ul><ul><li>Identifying capable suppliers </li></ul><ul><li>Making sourcing decisions </li></ul><ul><li>Relationship management </li></ul><ul><li>General Procurement </li></ul>
    10. 10. Inventory Element of Supply Chain <ul><li>How Much Inventory and Where to Store It </li></ul><ul><li>Analysis of fluctuations in demand </li></ul><ul><li>Identification of optimal storage locations in support of customer demand </li></ul><ul><li>Identification of optimal stock levels by location </li></ul><ul><li>Establishing inventory ordering policies </li></ul>
    11. 11. Location Element of Supply Chain <ul><li>Strategic placement of production plants, distribution and stocking facilities </li></ul><ul><li>Understand customer markets </li></ul><ul><li>Perform Locating decisions for production and stocking facilities </li></ul><ul><ul><li>Lightweight/market driven near the end-user </li></ul></ul><ul><ul><li>Heavy industries near raw material source </li></ul></ul><ul><li>Evaluation of tax and tariff issues and transportation accessibility </li></ul>
    12. 12. Transportation Element of Supply Chain <ul><li>Supporting inventory decisions and customer demand requirements (transportation is up to 30% of Product Cost!) </li></ul><ul><li>Identify customer service levels </li></ul><ul><li>Identify modal forms </li></ul><ul><ul><li>Air </li></ul></ul><ul><ul><li>Ship </li></ul></ul><ul><ul><li>Rail </li></ul></ul><ul><ul><li>Ground </li></ul></ul><ul><li>Establish strategic transportation partnerships </li></ul>
    13. 13. Information Element of Supply Chain <ul><li>Obtaining, linking and leveraging information across the Supply Chain </li></ul><ul><li>organization of information </li></ul><ul><li>Linking computers through networks and the internet </li></ul><ul><li>Streamlining information flow </li></ul><ul><li>Consolidating information </li></ul><ul><li>Information warehousing </li></ul><ul><li>Decision support tools </li></ul>
    14. 14. Key Attributes of a “Chain” <ul><li>Cannot exceed the capacity of its weakest link </li></ul><ul><li>A break in the chain makes the chain non-functional </li></ul><ul><li>All links must move in synchronization </li></ul><ul><li>All links have an interdependency </li></ul>
    15. 15. Supply Chain Driving Factors <ul><li>Information Revolution </li></ul><ul><li>Customer Demand </li></ul><ul><li>Adaptive forms of Relationship Management </li></ul>
    16. 16. Driving Change – Information Technology <ul><li>Inter-Enterprise Technology </li></ul><ul><ul><li>Dynamic Operating Systems </li></ul></ul><ul><ul><ul><li>Relational data stores </li></ul></ul></ul><ul><ul><li>Desktop Tools </li></ul></ul><ul><ul><li>COTS Revolution (ERP, S&OP, CPFR) </li></ul></ul>Finance Procurement Manufacturing Engineering Marketing Manufacturing Traditional Information Sharing Finance Procurement Manufacturing Engineering Marketing Manufacturing Relational Information Sharing
    17. 17. Driving Change – Information Technology <ul><li>Intra-Enterprise Technology </li></ul><ul><ul><li>The Internet </li></ul></ul><ul><ul><li>E-Commerce </li></ul></ul><ul><ul><ul><li>2004 estimated at $69.2B, +23.5% from 2003 </li></ul></ul></ul><ul><ul><ul><li>1.9% of total sales </li></ul></ul></ul><ul><ul><li>Universal Information Distribution (Java, XML) </li></ul></ul>World Wide Estimate of Active Internet Users 2000 2001 2002 2003 2004 North Amaerica 97.6 114.4 130.8 147.7 160.6 Europe 70.1 107.8 152.7 206.5 254.9 Asia/Pacific 48.7 63.8 85.4 118.8 173.0 Latin America 9.9 15.3 22.1 31.0 40.8 Africa and Mideast 3.5 5.3 7.2 90 10.9 Total World Wide 229.8 306.6 398.1 513.0 640.2
    18. 18. Driving Change – Relationship Management <ul><li>Relationship Assessments </li></ul><ul><li>Alliance evaluation mechanisms </li></ul><ul><ul><li>Assessing key variables of Reliability, Competence, Affect Based Trust (Goodwill), Vulnerability (risk sharing) and Loyalty </li></ul></ul><ul><li>Conflict Resolution </li></ul><ul><ul><li>Aversion to legal disputes </li></ul></ul><ul><ul><li>Arbitration as a business decision </li></ul></ul><ul><ul><ul><li>Minitrial </li></ul></ul></ul><ul><ul><ul><li>Rent-a-judge </li></ul></ul></ul><ul><li>Information as a Common Thread </li></ul>
    19. 19. Challenges in Supply Chain Management Today <ul><li>Strategic imperative of supply chain </li></ul><ul><li>Deliberate redesign of supply chain networks </li></ul><ul><li>Offshore outsourcing (lead-times/customer service impact) </li></ul><ul><li>Supply chain design to customer requirements </li></ul><ul><li>Cash-to-cash cycle </li></ul><ul><li>Supply chain visibility technology </li></ul><ul><li>Strategies for inventory positioning near customers </li></ul><ul><li>Warehouse Management challenges </li></ul><ul><li>Collaboration with supply chain partners </li></ul>
    20. 20. Component industries in Oil and Gas <ul><li>Upstream </li></ul><ul><li>Midstream </li></ul><ul><li>Downstream </li></ul>
    21. 21. Component industries in Oil and Gas Upstream The Exploration , Drilling, and Production Of Crude Oil. Midstream The transportation and trading of crude Oil to refiners. Downstream The refining of crude oil into finished product The Storage of crude Oil , and the Distribution And Marketing of crude Oil to Wholesalers and Retailers
    22. 22. Oil Supply Chain EXPLORATION PRODUCTION Crude Oil Pipelines Shipping Trading Refining Product Pipelines Storage Terminals Product Distribution Retile Markets Industrial Markets Commercial Markets
    23. 23. Gas Supply Chain Process Land Drilling and Production Marine Drilling and Production Oil and Gas Gathering/ Separation Compressor Station Gas Processing Station Gas Storage Gas Transmission End-Customers Transportation Industry Power Plants Domestic Use
    24. 24. Crude Oil Supply Chain Process Land Drilling and Production Marine Drilling and Production Oil and Gas Gathering/ Separation Oil Refining Petrochemical Processing Oil Transportation End-Customers Transportation Industry Power Plants Domestic Use
    25. 25. Oil and Gas Supply chain Compressor Station Land Drilling and Production Oil and Gas Gathering/ Separation Marine Drilling and Production Gas Processing Station Gas Storage Gas Transmission Oil Refining Petrochemical Processing Oil Transpiration End-Customers Power Plants Domestic Use Transportation Industry
    26. 26. Global Overview of Energy Industry <ul><li>OPEC & Non-OPEC Members </li></ul><ul><li>Proven oil reserves at end 2005 </li></ul><ul><li>Distribution of proven (oil) reserves 1985, 1995, 2005 </li></ul><ul><li>Oil production by area </li></ul><ul><li>Oil consumption by area </li></ul><ul><li>Natural gas production by area </li></ul><ul><li>Natural gas consumption by area </li></ul><ul><li>2005 Energy Growth </li></ul><ul><li>Global Demand for Energy </li></ul><ul><li>Primary energy consumption per capita </li></ul>This section covers the following information:
    27. 27. OPEC & Non-OPEC Members OPEC was first set up in 1960. the membership has changed over time. Its purpose is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.
    28. 28. Global Fossil Resources Proven hydrocarbon reserves are hydrocarbons about which there is reasonably accurate data. There are many places in the world that have not been fully explored, but the limited data available can be interpreted and realistic estimations of the amount of hydrocarbons can be made. These are called ‘yet to find’ on this graph. Unconventional fossil fuels are sources of energy that might be difficult to extract eg Sour Gas; Heavy Oil etc.
    29. 29. Regional distribution of oil reserves as at end 2005
    30. 30. Estimated proved reserves by region showing the changes between 1985, 1995 and 2005
    31. 31. Oil production by area Oil consumption by area This slide shows the relationship between production and consumption and how it has changed over time. Eg, Middle East production has increased. Also USA consumption rate has increased. Investment is made in production capacity so as to meet market requirements. Trends in oil production and consumption over time
    32. 32. World Gas Consumption By Region, 1999 & 2020 1999 2020 est. Africa C./S. America North America W. Europe Middle East Dev. Asia Eastern Europe Ind. Asia Source: EIA, International Energy Outlook, 2002
    33. 33. World’s LNG Facilities and Markets: Growing Regional and Global Markets Existing Facilities Proposed Facilities Markets Source: World LNG/GTL Review
    34. 34. Gas production by area Gas Consumption by area Trends in gas production and consumption over time This slide shows the relationship between production and consumption and how it has changed over time. Eg, Qatar Oilfield is now building new gas compression facilities to meet EU and USA gas demand.
    35. 35. Global Electricity Consumption: 75% Demand Increase by 2020
    36. 36. Growth World Energy Consumption Governments of many countries are now collaborating to ensure more stable demand levels – and also reductions in emissions.
    37. 37. Global growth in demand for energy Per capita demand for energy Many countries have or are predicting booming economies eg some countries in Asia Pacific. A booming economy means higher demand for energy – especially by industry. As countries become more developed, individuals in their population have more wealth and therefore have a higher demand for energy.
    38. 38. Enhanced Oil Recovery Could Change the Geopolitics of Oil Venezuela 272 billion barrels heavy oil Canada 300 billion barrels heavy oil Saudi Arabia reserve estimates: 250 billion barrels Steve Holditch, SPE Conference, 2002
    39. 39. % World Oil/Gas/Coal Reserves By Region: Geopolitical Issues In Focus C./S. America Asia & Oceania 36 Middle East 57 North America W. Europe Eastern Europe Africa 26 5 18 2 4 8 6 8 6 9 3 27 36 7 30 8 3 Source: EIA, International Energy Outlook, 2002 Oil Gas Coal
    40. 40. % Increases in CO 2 Emissions, 1999/2020 North America + 42% W. Europe +21% C./S. America +139% Middle East +72% Africa +140% Eastern Europe +45% Ind. Asia +23% Dev. Asia +122% Worldwide Carbon Emissions Expected to Increase 61%
    41. 41. Section 2 : Overview of ADNOC E & P Companies in Abu Dhabi <ul><li>ADNOC E&P Companies </li></ul><ul><ul><li>Exploration and production of Oil and Gas </li></ul></ul><ul><ul><li>Exploration and Production Services </li></ul></ul><ul><ul><li>Oil and Gas Processing </li></ul></ul><ul><ul><li>Chemicals and Petrochemicals </li></ul></ul><ul><ul><li>Maritime Transportation and Refined Products Distribution </li></ul></ul><ul><li>Shareholders and Joint Venture (JV) Partnership </li></ul><ul><ul><li>Share Percentages </li></ul></ul><ul><ul><li>Partnership values </li></ul></ul>
    42. 42. Overview of Abu Dhabi E&P Group of companies <ul><li>Exploration and Production of Oil and Gas </li></ul><ul><ul><li>ADCO; ADMA-OPCO; ZADCO </li></ul></ul><ul><li>Exploration and Production Services </li></ul><ul><ul><li>NDC; ESNAAD; IRSHAD </li></ul></ul><ul><li>Oil and Gas Processing </li></ul><ul><ul><li>GASCO; ADGAS; TAKREER </li></ul></ul><ul><li>Chemical and petrochemicals </li></ul><ul><ul><li>FERTIL; Borouge </li></ul></ul><ul><li>Maritime transportation and refining and product distribution </li></ul><ul><ul><li>ADNATCO; NGSCO; ADNOC Distribution </li></ul></ul>
    43. 43. PIW's Top 50: How The Firms Stack Up Energy Intelligence Group, Inc.   Rank Rank PIW Company Country State 2005 2004 Index Ownership       (%) 1 1 30   Saudi Aramco   Saudi Arabia 100 2 2 36   Exxon Mobil   US   3 4 39   NIOC   Iran 100 4 3 44   PDV   Venezuela 100 5 5 48   BP   UK   6 6 59   Royal Dutch Shell   UK/Netherlands   7 9 68    PetroChina   China 90 8 8 78    Chevron   US   8 7 78   Total   France   10 9 83   Pemex   Mexico 100 11 11 94   ConocoPhillips   US   12 12 96   Sonatrach   Algeria 100 13 13 100   KPC   Kuwait 100 14 14 106   Petrobras   Brazil 32 15 24 108   Gazprom   Russia 50.002 16 19 130   Lukoil   Russia   17 16 132   Adnoc   UAE 100 18 17 134   Eni   Italy   19 18 137   Petronas   Malaysia 100 20 21 143   NNPC   Nigeria 100 21 20 152   Repsol YPF   Spain   22 25 156   LibyaNOC   Libya 100
    44. 44. Joint Ventures <ul><li>Main Characteristics: </li></ul><ul><ul><li>Co-management </li></ul></ul><ul><ul><li>Sharing profits and losses </li></ul></ul><ul><ul><li>Limited duration </li></ul></ul><ul><li>Competing as a joint venture: </li></ul><ul><ul><li>Joint ventures should be formed before submitting offer </li></ul></ul><ul><ul><li>Agreement should provide for contract performance </li></ul></ul>
    45. 45. Joint Ventures: Advantages <ul><li>Allows several companies to compete </li></ul><ul><li>All parties have a voice in management </li></ul><ul><li>Each party shares profit </li></ul><ul><li>Enhanced cost competitiveness—no tiered relationship </li></ul>
    46. 46. Joint Ventures: Disadvantages <ul><li>Proposal evaluation </li></ul><ul><li>Co-management problems </li></ul><ul><li>Legal Risks </li></ul><ul><ul><li>Joint and several liability </li></ul></ul><ul><ul><li>Imputation of improper or criminal conduct </li></ul></ul><ul><li>Form of joint venture </li></ul><ul><ul><li>Lack of Federal Acquisition Regulation </li></ul></ul><ul><ul><li>LLCs and Corporations are alternatives </li></ul></ul>
    47. 47. Why are Joint Venture Partnerships preferred by the UAE Government? <ul><li>Historical position </li></ul><ul><ul><li>The oil industry started in the UAE in the 1950s. At that time, foreign owned-oil companies ran the businesses on behalf of the Government. </li></ul></ul><ul><li>Current position </li></ul><ul><ul><li>Joint ventures mean…. </li></ul></ul>
    48. 48. Reengineering of ADNOC companies Source: Mubarak etc (2007) From To 1- Product-focused 2- Rigid System 3- Backward integration 4- Scale Derive Value 5- The is Only one way to do business 6- Monopoly 7- Quality control 8- Traditional Oil Company 9- Trial & Error 10- Loosing Values Traditional Oil companies Modern Oil companies Customer-focused Flexible Specialization Design Create Value Continuous Improvement Is Possible Time competition TQM Digital Oil Company Optimal Models Value Recapture
    49. 49. Oil & Gas Exploration & Production Companies Abu Dhabi Company for Oil Operations (ADCO) Oil Exploration, production and export operations from onshore oil fields on behalf of the partners. ADCO Partners ADNOC: %60 BP: 9.5% , TotaL : 9.5%, Shell : 9.5%, Exxon: 5% ,Mobile : 5% , and Partex: 2% Abu Dhabi Marine Operating Company (ADMA-OPCO) Oil Exploration, production and export operations from offshore oil fields on behalf of the partners. ADMA-OPCO Partners ADNOC : 60% BP : 14.76% , Total : 13.33% Jodco : 12% Zakum Development Company (ZADCO Oil development and production from the Upper Zakum field. Operation of Umm Al Dalkh and Satah on behalf of the partners. ZADCO Partners ADNOC : 88% , BP : 4% , Total : 4% , Jodco : 4%
    50. 50. Exploration and Production Services National Drilling Company (NDC) Onshore and Offshore Drilling. NDC Partners ADNOC : 100% ESNAAD Production and marketing of mud chemicals, material handling services, waste management, specialty chemicals blending; chartering or leasing specialized vessels . ESNAAD Partners ADNOC: 100% Abu Dhabi Petroleum Ports Operating Company (IRSHAD ) Operating Ruwais, Jebel Dhanna and other oil Ports . IRSHAD Partners ADNOC : 100%
    51. 51. Oil and Gas Processing Abu Dhabi Gas Industries Limited (GASCO) Operation and production of liquefied gas products. GASCO Partners ADNOC: 68% , Shell: 15% , Total : 15% , Partex : 2% Abu Dhabi Gas Liquefaction Company Limited (ADGAS) Operating Das Island gas liquefaction plants . ADGAS Partners ADNOC: 70% , BP :10% , Total : 5% , Mistu : 15% Abu Dhabi Oil Refining Company (TAKREER) Refining of crude oil and condense. Production of Chlorine and related chemicals, Sulphur granulation. NDC Partners ADNOC:100%
    52. 52. Chemicals and Petrochemicals Ruwais Fertilizer Industries (FERTIL) Operation of Ammonia and urea plant at Ruwais and marketing its products. Ruwais Partners ADNOC: 66.67% , Total : 33.33% Abu Dhabi Polymers Company Limited (BOROUGE) Processing and production of ethylene & polyethylene. BOROUGE Partners ADNOC : 60% Lamnalco : 40%
    53. 53. Maritime Transportation and Refined Products Distribution Abu Dhabi National Tanker Company (ADNATCO) Transporting crude oil and refined products. National Gas Shipping Company (NGSCO) Transporting crude oil and refined products. ADNOC Distribution Storage, Transportation and distribution of refined products . ADNATCO Partners ADNOC: 100% NGSCO Partners ADNOC: 70% BP: 10%Total : 5% , Mitsui : 15% ADNOC Distribution Partners ADNOC: 100%
    54. 54. ADMA-OPCO Supply chain Management <ul><li>ADMA-OPCO Upstream level </li></ul><ul><li>ADMA-OPCO Midstream </li></ul><ul><li>ADMA-OPCO Downstream </li></ul>
    55. 55. ADMA-OPCO Supply chain Compressor Station Oil and Gas Gathering/ Separation ADMA-OPCO Drilling and Production Gas Processing Station Gas Storage Gas Transmission Oil Refining Petrochemical Processing Oil Transpiration End-Customers Power Plants Domestic Use Transportation Industry
    56. 56. Platform Producers Ship/Barge Pipeline Gathering Wellhead Producers Truck Refineries Terminal/ Storage/ Hub Location Bulk Terminal Storage Gas Stations ADNOC Supply Chain Upstream Downstream
    57. 57. Spot Price CRUDE Refiner Acquisition Cost of CRUDE FUTURES Price CRUDE CRUDE OIL REFINED PRODUCTS Spot Price GASOLINE Futures price GASOLINE refinery Spot and Contract Sales Terminal Rack Price Hypermarket Jobber’s Dealer Outlets Jobber Operated Outlets Franchised Dealer Outlet Dealer Owens land Franchised Dealer Outlet Dealer Leases from third party Franchised Dealer Outlet Leased From Refiner Company Owned & Operated Outlets ADNOC Distribution Distribution System and Valuation flows
    58. 58. ADMA Fields UMM SHAIF 300 000 55 o 00 / 2 800 000 600 000 700 000 800 000 200 000 54 o 00 / 53 o 00 / 52 o 00 / 25 o 00 / 24 o 00 / QATAR IRAN DUBAI A B U D H A B I Al Dabbiya Abu Al Abyad Murawah Al Bazm Al Gharbi Sir Bani Yas Al Yasat Sir Abu Nu’air ADMA Undeveloped Structures 0 10 20 30 40 50 KM SATAH 2 700 000 Abu Dhabi MANDOUS ZAKUM BELBAZEM NASR US-A&B YASER UMM Al DHOLOU UMM Al SALSAL BU HASEER GHASHA BU JUFAIR JARNAIN DALMA HIAR DALMA AL MUTARID UMM LULU/ BIN NASHER Al DALAKH UMM Das Qarnain Arzana Zirku Dalma TOTAL ABK ADMA - OPCO ADMA Developed Fields Butini AL KHAIR GAMMA New Fields SARB
    59. 59. ZaKum Zakum structure vs the M25 motorway that surrounds the city of London and its suburbs.
    60. 60. Seismic Survey <ul><li>What Seismic Survey is ? </li></ul><ul><li>Why is using it </li></ul>
    61. 61. Seismic Offshore Survey techniques are used by geoscientists to determine the places where oil at.
    62. 62. Geophysics
    63. 63. <ul><li>Tertiary: </li></ul><ul><ul><li>- Asmari (Zagros) </li></ul></ul><ul><li>Middle Cretaceous: </li></ul><ul><ul><li>- Mishrif/Natih (S & N Gulf) </li></ul></ul><ul><ul><li>Bangestan/Sarvak (Zagros) </li></ul></ul><ul><ul><li>Mauddud (Mid-/N Gulf) </li></ul></ul><ul><li>Early Cretaceous </li></ul><ul><ul><li>Thamama Group (Shuaiba, Kharaib, Habshan) (S Gulf) </li></ul></ul><ul><ul><li>Minagish Oolite </li></ul></ul><ul><ul><li>Bangestan </li></ul></ul><ul><li>Jurassic: </li></ul><ul><ul><li>Arab (S Gulf region) </li></ul></ul><ul><li>Permo-Triassic </li></ul><ul><ul><li>Khuff (Central and E Gulf) </li></ul></ul><ul><li>Proterozoic (Oman) </li></ul>Principle carbonate reservoir formations of the Gulf region + many other less prominent reservoirs (Based on southern Gulf example) Convergence Passive margin Back Arc/Extension
    64. 64. Fixed platform (300 ft) Drilling Operations Drilling Onshore and offshore is handling By NDC For Abu Dhabi exploration companies
    65. 65. Drilling Operation Structures
    66. 66. Drilling Holes directions Drill holes can go Horizontal , Vertical , ( Sidetrack)
    67. 67. 9 5/8” in Zone B ± 10700 ftMD or Zone F ± 11300 ftMD 13 3/8” in Fiqa ± 6850 ftMD 18 5/8” in Miocene Evaporites ± 1000 ftMD 8 1/2” horizontal hole Casing Design
    68. 68. Production formation
    69. 69. Gas lift
    70. 70. Gas injection
    71. 71. <ul><li>Low pressure wells sometimes are fitted with special pumps to draw the oil to the surface. </li></ul><ul><li>ADMA wells do not currently need to use ESP Pump because high reservoir pressure let crude oil get out easily. </li></ul>Electric Submersible Pump
    72. 72. Gas depletion
    73. 73. Gas transmission
    74. 74. <ul><li>Oil does not come up out of the ground in a pure condition, but is often mixed with water and contains gases such as methane, ethane and propane. The gases are dissolved in the oil under pressure and are released as the pressure decreases. </li></ul>Wellhead Platform
    75. 75. <ul><li>Oil and Gas Gathering / Separation </li></ul><ul><li>Crude oil flows out of the wells to a processing centre through multi-phase pipelines </li></ul><ul><li>Pipelines are often laid out in organized corridors. </li></ul>Pipelines to Das Island
    76. 76. <ul><li>Refineries converts crude oil into : </li></ul><ul><ul><li>Finished products from the Refinery are as follows :   Liquefied Petroleum Gases Naphtha Unleaded Gasoline Aviation Turbine Kerosene Domestic Kerosene Gas Oil Straight Run Residue Liquid Sulphur. </li></ul></ul><ul><li>Pipelines is the most common form of transporting crude . </li></ul>
    77. 77. Refinery Process
    78. 78. Refinery units include <ul><li>Crude Distillation Unit (85,000 BPSD) </li></ul><ul><li>Naphtha Hydrodesulphuries Unit ( 22500 BPSD) </li></ul><ul><li>Kerosene Merox Unit (21,250 BPSD) </li></ul><ul><li>Catalytic Reformer Unit (14,000 BPSD) </li></ul><ul><li>Gas Oil Hydrodesulphuriser Unit (22,500 BPSD) </li></ul><ul><li>LPG Treating and Recovery Unit (3,480 BPSD) </li></ul><ul><li>Naphtha Stabilizer Unit (3,630 BPSD) </li></ul><ul><li>Gas Sweetening Unit (40 tons/day H2S Removal) </li></ul><ul><li>Sulphur Recovery Unit (40 tons/day) </li></ul><ul><li>Jarn Yaphour Crude Oil Stabilization Plant (10,000 BPSD) </li></ul>
    79. 79. Refinery and Distribution system
    80. 80. Marketing and Distribution <ul><li>Distribution System and Valuation flows </li></ul><ul><li>Selection of Specific Fuel Uses </li></ul><ul><li>Market Behavior </li></ul>
    81. 81. Selection of Specific Fuel Uses Industry Growth Forecast Industry Growth Forecast Industry Demand By Fuel Type Database Market Share Model Trend Analysis Technological Changes
    82. 82. GAS Users Electricity Users Oil Users Solar Energy Major Transitions Minor Transitions Market Behavior
    83. 83. <ul><li>The Processing or Gathering Centre is a facility which collects oil from a number of wells, for the purpose of separating out the associated gases and water. </li></ul><ul><li>Offshore the initial basic processing is done at the production platform before the oil and gas streams are sent to Das or Zirku Island </li></ul>Oil and Gas Processing Oil Gas
    84. 84. The Risk Assessment Process
    85. 85. What is risk? <ul><li>Simply put, risk is the chance that something will go wrong! </li></ul><ul><li>We all accept and manage risk all the time </li></ul><ul><ul><li>We drive cars </li></ul></ul><ul><ul><li>We fly in planes </li></ul></ul><ul><li>Risk has two components </li></ul><ul><ul><li>The probability of Hazard taking place </li></ul></ul><ul><ul><li>The impact of Hazard if it does take place </li></ul></ul><ul><li>The way we try to manage risk is called Risk Mitigation </li></ul>
    86. 86. Why do we do risk assessments? <ul><li>Formal Risk Assessments must be completed by a team so that: </li></ul><ul><ul><li>all risks are identified – different people will see different risks </li></ul></ul><ul><ul><li>all the team understand the risks and measures identified to control them. </li></ul></ul><ul><ul><li>all the team can be confident that the work can be completed safely </li></ul></ul><ul><li>We work in an industry where we are surrounded by risk all the time. </li></ul><ul><li>We need to assess risk to ensure we can do work safely. </li></ul><ul><li>We have techniques for understanding and controlling risk. </li></ul><ul><ul><li>Techniques include Permit to Work and Formal Risk Assessment . </li></ul></ul><ul><li>Good Risk Assessment needs team working and collaboration! </li></ul>
    87. 87. ADNOC Global Operations
    88. 88. Freight Forwarders - ADNOC <ul><li>The international freight forwarder is a company that handles most of the aspects of shipping goods, including arranging for the shipping and required documentation. They help ADNOC with </li></ul><ul><ul><li>Import rules and regulations of foreign countries. </li></ul></ul><ul><ul><li>Methods of shipping , government export regulations and the documents connected with foreign trade. </li></ul></ul>
    89. 89. World- Wide Transportation Destinations
    90. 90. Asian Pacific Transportation and Routs
    91. 91. Typical Energy Issues in the 21 th century <ul><li>Wellhead Price Controls. </li></ul><ul><li>Off – Shore Leasing Policies. </li></ul><ul><li>Depletion allowances. </li></ul><ul><li>Power plant sitting. </li></ul><ul><li>Thermal pollution. </li></ul><ul><li>Air pollution controls. </li></ul><ul><li>Rate of return Regulations. </li></ul><ul><li>Export regulations. </li></ul><ul><li>End use controls. </li></ul><ul><li>Strip mining. </li></ul><ul><li>Off-shore oil spills. </li></ul><ul><li>Oil wars. </li></ul><ul><li>Oil games. </li></ul><ul><li>Oil negotiation (OAPEC/ OPEC-OIC). </li></ul>
    92. 92. Commercial Challenges Faced by Oil Companies <ul><li>Increasing costs and declining size of discoveries are increasing risk to capital exposure and putting pressure on returns; </li></ul><ul><li>The market pricing and the actual price of crude and products influences the relative value of crude. </li></ul><ul><li>Delay in shipping of products can cost the refinery hundreds of thousands of dollars. </li></ul><ul><li>For moving the product from one point to another there are pipeline or terminal constraints. </li></ul><ul><li>New approaches are required to overcome the challenges in todays environment. </li></ul>
    93. 93. Future World Oil Prices
    94. 94. <ul><li>Resource base is sufficient to meet expected world oil demand growth. </li></ul><ul><li>Medium-term supply outlook presents real energy policy challenges: </li></ul><ul><li>Without reserve additions, Non-OPEC countries will face increasing challenges to expand conventional oil production, </li></ul><ul><li>OPEC will face the challenge of timely expanding its production capacity in order to both meet demand growth and to contribute to oil market stability. </li></ul>Conclusion
    95. 95. Thank you