WELCOME TO PROSEP INC.

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1 WELCOME TO PROSEP INC. Partnering with ProSep for your oil, gas and water separations solutions is like a refreshing day at the beach. This file contains presentations featuring our offerings. For optimal viewing, please open the Bookmarks navigation panel. ProSep Inc. TOGETHER CREATING PURE OIL, GAS AND WATER

2 OVERVIEW ProSep Inc. TOGETHER CREATING PURE OIL, GAS AND WATER

3 ProSep Inc. Brief Introduction

4 Mission We will provide a complete range of products for oil, gas and water treatment focused on the upstream O&G industry.

5 Corporate Model

6 Global Coverage ProSep Inc. offices

7 Value Proposition Global Reach Competitive Pricing Mix of Novel + Traditional Technologies Proven Implementation Success

8 ProSep Technologies, Inc. A Brief Introduction

9 Who is ProSep? Provider of process solutions to the oil & gas industry through the supply of QUALITY equipment packages, systems, and services

10 Vision We aim to be recognized as the most TRUSTED, FLEXIBLE, and highest QUALITY supplier of process solutions to the oil & gas industry.

11 Mission We will earn our customers TRUST; we will demonstrate superior levels of FLEXIBILITY; and we will deliver oil & gas process equipment packages, systems, and services of the highest QUALITY. It is our goal to make every customer a repeat customer.

12 Business Lines

13 Business Lines

14 Business Lines

15 Business Lines

16 ProSep Differentiation (1) Quality solutions provider (2) Relationships (3) Flexible business model (4) Flexible project execution model (5) Fabrication management experience / capabilities (6) Customer focus (7) Highly committed staff

17 ProPure AS Company Presentation

18 About ProPure ProPure AS is a technology company specializing in enhanced separation and treatment of produced water, crude oil and gas. We focus on equipment efficiency resulting in reduced OPEX and CAPEX for our customers, and lower life-cycle cost compared to conventional separation equipment. We mix to separate

19 Process Solutions Produced Water Treatment CTour TORR Sorbfloc/GFU Gas Treatment ProScav ProCAP ProDry Crude desalting and dehydration ProSalt Chemical injection ProMix ProMix Gas Oil Water Water ProScav ProCAP Gas membranes CTour TORR Sorbfloc Hydrocyclone Nutshell filter ProSalt ProCond Desalters Gas flotation

20 Engineering and Manufacturing ProSep s Fabrication and Assembly

21 Assembly Shop Location Fisher Road Houston, TX (W. Sam Houston Pkwy N. & Hwy 290) Shop and yard 16,000 sq. ft. covered shop area 45-ton crane capacity 3,200 sq. ft. covered warehouse area 1,900 sq. ft. office 1 acre open laydown area

22 Assembly Shop Shop Entrance (1) 25-ton, (1) 15-ton, (2) 5-ton cranes 30-Foot Eve. Ht.

23 Assembly Shop

24 Engineering Tools / Software (1) Microsoft Office Suite (2) AutoCAD 2007 (3) AutoCAD Inventor 11 (4) Compress (5) MS Project (6) BRE Process Simulation

25 PRIMARY SEPARATION ProSep Inc. TOGETHER CREATING PURE OIL, GAS AND WATER

26 Internals AAAAAAA High Efficiency Separation Technologies

27 High Efficiency Separation Gas Treatment Scrubbers, degassers Mist elimination Compact scrubbers Primary 2 & 3 Phase Separation Internals, Retrofits Vane inlets Inlet cyclones Coalescing internals Demisting cyclones Debottlenecking & Troubleshooting Motion Dampening CFD Analysis

28 Qualification of New Technology Most technology companies have their own laboratory to develop and test proprietary technologies Most major producers will require documented 3rd party test results to qualify a new or novel technology Example: Statoil s K-lab test facility at Kårstø allows testing of full scale scrubber internals on real fluids at pressures up to 150 barg

29 Some Separator Basics (1) Inlet zone Lower velocities Achieve bulk separation Prevent droplet shatter* Prevent foam* Prevent entrainment* Establish plug flow Prevent short circuiting* 1

30 Some Separator Basics... 2 (2) Gas zone Settle large droplets Break foam Prevent wave action

31 Some Separator Basics (3) Gravity settling zone Establish / maintain plug flow Coalesce liquid phases Separate droplets of phases Prevent gas carryunder Break emulsions Prevent outlet vortexing Maximize residence time

32 Some Separator Basics (4) Mist elimination zone Remove mist Prevent re-entrainment Prevent poor flow characteristics Prevent liquid carryover A large part of separation efficiency begins at the inlet by NOT creating separation problems!

33 The Importance of Each Section Target Design Performance Criteria for a separator / scrubber: Vol% of liquid to be removed by section. These can vary a lot with conditions, but this will give you a rough rule of thumb relative comparison: Inlet Section Gravity Disengagement Zone Mist Remover Scrubber (Gas Dominant Separation) Separator (Liquid Dominant Separation) 5 10 % 80-90% 70 80% % % (less than 1% is best) % (less than 1% is best) Note that the mist eliminator removes a relatively small volume of liquid

34 Comparison of Technology and Size Two Vessels Three Technology Applications k = 0.20 m/s k = 0.15 m/s ID = 1.75m (69 inches) ID = 2.0m (79 inches)

35 Performance as Function of Vessel Size and Choice of Internals ID = 69 inches k = 0.20 m/s Performance Improvement due to technology ID = 79 inches k = 0.15 m/s Performance Improvement due to vessel size (Results are based on calculations from current sizing programs)

36 Our Services Complete Vessel Process Design Troubleshooting Separation Processes Diagnosis CFD calculations/simulations Solutions and recommendations Supply of Internals Installation Support

37 Inlet Cyclones

38 Inlet Cyclones

39 Inlet Cyclone Performance

40 Comparison of a Separator with 1 st Generation Design Cyclones 1 st generation Inlet Cyclone No Flow Control Mechanism Large Zones of Secondary Flow Ineffective Residence Time ~ 34% of total vessel length

41 Same Separator Designed with Advanced Design Inlet Cyclones (4 th gen) For an identical 3 phase separator: CFD Designed Flow Control Assure Plug Flow 83% of Volume for Residence Time Efficient Use of Vessel Volume ~ 17% of total vessel length

42 Inlet Vane Distributor Expands the flow area of the inlet to reduce inlet momentum and improve the utilization of the available vessel volume

43 Axial Flow Cyclone Axial Flow Cyclone working principle

44 Axial Flow Demisting Cyclone Horizontal separators Retrofit conventional scrubbers Compact scrubber New build scrubber

45 Gas Density Effects on Mist Elimination Separation Performance Test fluids; ExxcolD60 and SF6 Gas density varied Separation Efficiency (%) ρ gas =.43 lb/ft 3 ρ gas = 1.31 lb/ft 3 ρ gas = 2.80 lb/ft 3 ρ gas = 3.75 lb/ft 3 Reduced performance with increasing gas load and increasing pressure Flow rate

46 Example CFD Sloshing in Separators Optimization of baffling arrangement in FPSO separators Illustration of mass transfer in a separator with 10 degree pitch Level changes in the vessel with and without added perforated plates

47 Compact Separation

48 Case Studies 1) Troubleshooting Study of Separator & FWKO 2) Vertical Booster Scrubber Replacement 3) Compressor Suction Drum 4) Inline Mist Eliminator

49 1. Study of Separator & FWKO 1) Client requested ProSep conduct a study to determine cause of separation problems. 2) Oil in water content exiting the separation train was higher than on entry. 3) Tracer studies revealed an a shorter than predicted residence time in the FWKO. 4) We undertook the study and proceeded to analyze the separators using traditional spread sheet analysis as well as CFD to verify the process design. First Stage Separator & FWKO FWKO Test same layout 1 st Stage Separator 1 st Generation Inlet Cyclones

50 Study of Separator & FWKO - Conclusions The inlet cyclone and poor inlet design in the FWKO caused the emulsion problems. The inlet design sets up a secondary flow that force liquid from the top of the vessel to the bottom of the vessel. Approximately 50% of the total liquid flow is forced into this kind of secondary flow and this is the main reason for the poor separation The inlet device in the FWKO vessel was removed providing substantial improvement. Net flow of liquids is into the oil side of the cyclone

51 2. Vertical Booster Scrubber Description of Case Vessel is 30 in diameter by 8 S/S Operating pressure psi High gas loading, k = 0.78 ft/s for a vane pack design Reported to be collecting no liquids Experiencing compressor damage due to liquid intrusion Required liquid carry over < 0.1 us gal The small diameter vessel would be very difficult to retrofit mechanically No piping changes to be allowed Must be exact match bolt in replacement Shut in time to be minimized

52 Vertical Booster Scrubber Existing Separator Design Vessel currently uses combination of mesh and vane pack as demister section Nozzles are in the wrong locations No protection of liquid surface Design has inherent poor flow distribution Skirt and overhead have space to allow larger vessel

53 Vertical Booster Scrubber - Solution Design a replacement vessel using high efficience internals 24 Axial flow demisting cyclones Agglomerator mesh pad Vane inlet distributor Protection plate for liquid surface Use internal ducting to work with existing nozzles Construct with full body flange head for assembly and service Increase shell length to 10 6 Internals set on stand inserted into vessel after completion of heat treating

54 3. Compressor Suction Drum - Highlights Vessel collecting no liquid Inlet velocity m/s Inlet momentum of 2826 kg/ms 2 K-value 0.14 m/s Nozzles wrong location No pipe changes

55 Compressor Suction Drum A number of CFD calculations were used to confirm performance. 8 DC 80 Cyclones Mesh pad demister Inlet vane distributor Dollar plate Downcomers

56 4. Inline Mist Eliminator Description of Case Two large reciprocating compressors were experiencing recurring mechanical failures: pistons, crankshafts, bearings, etc. Liquid intrusion is identified as a major or contributing factor Liquids and solid particles tend to destroy cylinder lubrication and cause excessive wear. Liquids are non-compressible and their presence could rupture the compressor cylinder Carryover from scrubbers identified as a source

57 Inline Mist Eliminator A study was conducted to choose best long-term fix: Scrubber upgrade or replacement Gas superheating Inline separators downstream of existing scrubbers Automate suction (and discharge) bottle drains

58 Inline Mist Eliminator Space was limited, which influenced the decision to choose in-line demisting devices

59 Inline Mist Eliminator Space was limited, which influenced the decision to choose in-line demisting devices

60 Inline Mist Eliminator

61 ProMix Mixing Technology by

62 ProPure Injection Mixer Applications Gas Treatment: - ProScav: H2S scavenging - ProCAP: Compact Amine Plant - ProDry: Compact TEG dehydration - ProMix: Gas-liquid and gas-gas mixing Oil Treatment: - ProSalt: Enhanced desalting and dehydration -ProMix: Liquid-liquid mixing Water Treatment: - CTour: Produced water treatment - ProMix: Liquid-liquid mixing

63 ProMix Benefits and Applications ProMix provides our customers access to innovative, tried-and-tested products and services that reduce the overall operating costs and increase the bottom-line. Gas Treatment Water Treatment Oil Treatment Process studies R&D - Testing

64 Technology Principles Injection Mixer Co-Current injection and mixing Liquid-liquid & gas-liquid Flow-driven Very high droplet break-up results in increased contact surface

65 Technology Principles Injection Mixer Better solvent utilization (reduced chemical consumption) Low pressure drop: more throughput

66 Technology Principles Injection Mixer Droplets atomizing

67 ProMix vs. Conventional Quill A Quill + static mixer A CROSS SECTION AA C100 mixer B - High dp - Large contactor length - Propensity to scale formation - Low efficiency B CROSS SECTION BB

68 Technology Principles Inline Mixer Mixing Principle Independent of inlet pattern Homogeneous shear force exposure Can be made adjustable (full bore) Multiphase mixing Low pressure drop OIL AND WATER

69 Technology Principles Inline Mixer Finger - folding jet-flow pattern giving maximum shear forces for minimum pressure drop Multiple mixing internals Ensure optimal performance Outlet channels give uniform outlet flux of the multiphase mixture Small channels give high velocities resulting in high shear tension and the formation of small droplets / bubbles Excessive turbulence ensuring rapid mass transfer

70 Technology M100 In-line Mixer

71 GAS ProSep Inc. TOGETHER CREATING PURE OIL, GAS AND WATER

72 Gas Membranes Separation Technology

73 Applications Wherever you would consider an amine plant Gas sweetening to make pipeline specifications Fuel gas conditioning Enhanced oil recovery (EOR) De-bottlenecking of amine plants

74 Basics of the Membrane Process MEMBRANE FEED Methane RESIDUE Methane Carbon Dioxide High Pressure PERMEATE Carbon Dioxide Low Pressure

75 Flat Sheet Cellulose Acetate Membrane

76 Flat Sheet Cellulose Acetate Membrane Electron microscopic image of a typical flat sheet membrane

77 Grace Spiral Wound Membrane Construction

78 Grace Spiral Wound Membrane Construction

79 Grace Cellulose Acetate Spiral Wound Module Lightweight & easy to handle 8.25 (diameter) x 42 long Less than 45 lbs.

80 Grace Cellulose Acetate Spiral Wound Module Manufactured by Grace since 1984 ProSep personnel involved in over 220 natural gas applications Robust design 1800 psi differential pressure

81 Housing Design

82 CA Spiral Wound Membrane Loading

83 CA Spiral Wound Membrane Skid Design Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Bank 6

84 ProSep Manufacturing & Assembly

85 One-Stage Membrane System Block Diagram Membrane Bank FEED VENT Pretreatment SALES GAS

86 Two-Stage Membrane System Block Diagram (Recovery of Membrane Losses) SALES GAS Membrane Bank FEED VENT Pretreatment Compression Membrane Bank Pretreatment VENT

87 Variety of Process Flow Diagrams Based on the Applications

88 Hollow Fiber Membrane Module

89 Hollow Fiber Membrane Dense Skin Electron microscopic image of a hollow fiber

90 Hollow Fiber Membrane ProSep Personnel Experience ProSep personnel have also been using the hollow fiber membrane technology, since No other organization has experience using both the hollow fiber and the spiral wound. Hollow fiber membrane general facts: Have more surface area More sensitive to common contaminants Long lead times create difficulties More expensive modules

91 Key Process Parameters Gas Composition (partial pressure) Pressure Differential (DP) Pressure Ratio (PI / PII) Separation Factor (μ) Temperature Moisture Content of Gas

92 CA Spiral Wound Feed Gas Specifications Pressure C6+ BTX Annual Decline psia 3500 ppm 150 ppm 15% (Max) psia 2000 ppm 100 ppm 20% (Max) psia 1500 ppm 100 ppm 25% (Max) (For Feed Gas Temperatures Between F)

93 Characteristics of Cellulose Acetate (1) Flux severely depressed by Exposure to liquid water hygroscopic Coatings and surface active agents, i.e., lube oils, glycols, amines, etc. High concentrations of vapor phase aromatics and C6+; however much more tolerant of these components than PI membrane

94 Characteristics of Cellulose Acetate (2) Tolerant of light liquid phase aliphatic hydrocarbons up to C6 (3) Naturally ages as a function of feed gas pressure and composition

95 Essentials for Good Performance System Effective Pretreatment Piping design to enhance agglomeration of aerosols Filtration Guard bed Instrumentation Membrane Skids Ease of loading / unloading Turndown philosophy Piping design (feed, residue, and permeate)

96 Essentials for Good Membrane Element Performance Adhesives, fabrics, polymer Withstand at least 1300 psi differential pressure Easily packaged Good selectivity Resistant to compaction

97 Key Features and Benefits 1) Skid mounted and ready to operate easy and inexpensive to install/commission 2) Requires minimal operator involvement lower operating expenses 3) No moving parts lower overall maintenance costs 4) percent smaller/lighter than equivalent amine units modular configuration provides flexibility with space requirements

98 Key Features and Benefits 5) No circulating liquids, problems and costs associated with spillage and disposal of hazardous chemicals are prevented 6) Modular configuration provides flexibility with regard to changes in process conditions (increases in flow rate, etc.) 7) Utilities: electrical power, water, or instrument air are not required 8) Distinct advantages compared to amine

99 Advantages Compared to Amine Low capital investment (installed cost 30% less) Ease of installation Simple Operation No utilities required No corrosive liquids Flexible Process can simply bring on or shut in a bank Low weight and space requirements Low environmental impact

100 ProSep Gas Treatment & Membranes ProSep Personnel Membrane History 220 Gas Sweetening Installations since 1985 Highest Differential Pressure Natural Gas Treating 1715 PSI Sale/Lease Philosophy Ease of Operation Experience With CA Spiral Wound And PI Hollow Fiber Only Company To Install Medal PI Hollow Fiber In Natural Gas

101 Duke Mewbourn Plant 60 MMSCFD CO 2 Trimming Plant In Weld County Colorado* Using Grace CA Spiral Wound Membranes See Gas Processors Association Paper TRIMMING RESIDUE CO2 WITH MEMBRANE TECHNOLOGY

102 LFC Rifle, CO

103 Kinder Morgan Sacroc Expansion, Snyder, TX

104 Ypergas Yucal Placer, Venezuela

105 PDVSA Bitor, Venezuela

106 Oxy (Amoco) Wasson Plant Denver City, TX 15 MMSCFD 50% CO 2 plant using Medal PI hollow fiber membranes

107 ProDry Gas Dehydration

108 ProDry Gas dehydration with ProPure s co-current contactor Replaces the counter-current contacting tower with the ProDry contactor Reduces footprint, weight and operating expenditure related to chemical consumption, storage and handling Under qualification through a Joint Industry Project comprising ConocoPhillips, Total and StatoilHydro Gas stream TEG Mixed flow

109 ProDry Selected Applications Debottlenecking of existing dehydration units (1-stage ProDry) Fuel gas dehydration (1- and 2-stage ProDry) Dehydration for gas reinjection (1-stage ProDry) Long distance transportation with moderate and low dew point reduction ( 1- and 2-stage ProDry) Subsea gas dehydration

110 ProDry Case 1 (New Build Example) Grass roots installation, dew point reduction 54 F (30 C) (2-stage ProDry) Compared with counter-current absorption tower: Installation: Weight and space reductions of 30-35% Heat duty: Slight increase in heat duty due to higher TEG circulation rate, approximately 3% Operation: No risk for flooding and foaming in the ProDry contactor unit. Improved turndown capability due to this.

111 ProDry Case 2 (Debottlenecking Example) Debottleneck existing dehy units (vertical absorber vessels) Compact ProPure contactor eliminates the need to replace the existing conventional absorber column. Installation: Upstream, downstream or parallel to existing absorber. Routes some of the TEG to the ProDry contactor, which is a simple spool piece retrofit. Heat duty: Reduced heat duty associated with reduced TEG circulation rate of 35 % (alternatively additional dew point reduction 11 F (6 C)) Operation: Added flexibility and gas handling capacity to the process with low costs. No risk for flooding and foaming in the ProDry contactor.

112 ProScav H 2 S Scavenging Technology

113 Spotlight Technology Award at OTC 2005 for ProScav

114 ProScav H 2 S Removal Technology System for injecting and mixing H 2 S scavenger in a gas or liquid stream to remove moderate amounts of H 2 S

115 Technology Principles Injection Mixer Co-current contactor injects and mixes the H 2 S scavenger Internal contactor design allows an ultra-efficient scavenger utilization and less chemical is needed to achieve the outlet specification Low pressure drop: more throughput

116 Technology Principles Injection Mixer Droplet Atomizing ProPure injection-mixer atomizes scavenger droplets increasing contacting surface

117 Technology Principles Injection Mixer Comparison: ProPure vs. Conventional Quill or nozzle Quill + static mixer A A CROSS SECTION AA Quill/nozzle: - Scavenger goes to the bottom of the pipe - Small contacting surface - Low efficiency Quill + static mixer: - High dp - Large contactor length - Propense to scaling -Low efficiency ProPure C100 B B CROSS SECTION BB C100 injection mixer: -Low dp -Efficient use of all scavenger injected -Compact unit, custommade to the application

118 ProScav OPEX Savings Savings: 88 l/d Savings: 274 l/d Savings: 4400 l/d % % % Reduction in consumption compared to quill injection %

119 ProScav OPEX Savings Case Study North Sea platform 13 MSm3/d (460 MSCFD) Inlet H 2 S: 40 ppm Outlet spec H 2 S: 2.5 ppm Pressure: 77 bar Cost of triazine based scavenger (on platform) = 1.5 USD/l Scavenger consumption per year (liters) Quill and static mixer 4 million liters ProScav 2.8 million liters Yearly cost 6 MUSD 4.2 M USD YEARLY SAVINGS: 1.8 MUSD

120 ProScav Previous Applications (32) Offshore H 2 S scavenging Pipe sizes: 2 to 24 H 2 S inlet concentration: 7 to 100 ppm H 2 S outlet specification: 10 to 2.5 ppm Flow rates: 0.5 to 42 MSm3/d Pressure: 13 to 136 bar (188 to 1972 psi) Temperature: -2 to +135 C (28 to 275 F)

121 ProScav Benefits % reduced scavenger consumption Cost-efficient compared to other offshore H 2 S removal processes Reduced chemical transportation, handling and storage costs Efficient even with high flow variations Compact inline system, easy to install at any pipe angle Integrated gas flow meter

122 ProCAP Selective H 2 S Removal Technology

123 ProCAP Selective H 2 S Removal Compact amine plant for selective removal of H 2 S Replaces counter-current contacting tower with an inline injection and mixing device The quick reaction time avoids co-absorption of CO 2, utilizing the amine more efficiently for H 2 S removal Ideal for retrofitting amine plants to increase capacity

124 Technology Principle Injection Mixer Co-current contactor injects and mixes the amine Internal contactor design allows an ultra-efficient amine utilization and less chemical is needed to achieve the outlet specification Lower amine circulation rate: less footprint, weight and energy requirements; small amine regeneration unit Low pressure drop: more throughput

125 Co-Current vs. Counter-Current Contactor Sour gas Lean solvent Purified gas Rich solvent and purified gas ProCAP : Compact co-current contactor Conventional amine plant: Large countercurrent column Sour gas Rich solvent

126 ProCAP (2-stage: 100 ppmv H 2 S, 5 mole% CO 2 ) Sweet gas Charcoal filter Condenser Acid gas 1st stage contactor & separator Sour, wet gas 2nd stage contactor & separator Buffer tank Filter Stripping column Re-boiler Lean amine pump

127 ProCAP vs. Conventional Amine Plant Process and mechanical data Conventional amine plant 50 ppm 2.5 ppm CAP 50 ppm 2.5 ppm Gas mass flow 24 MSm3d 24 MSm3d Pressure 81.5 bara 81.5 bara Amine circulation rate Total equipment dry weight 240 m3/h 110 m3/h 532 Mton 222 Mton Heat duty 18 MW 8 MW CAPEX 25 MUSD 14 MUSD Savings over plant s lifetime (25 years): 4.7 MUSD/Year YEARLY OPEX (electricity) 7.8 MUSD 3.5 MUSD

128 ProCAP Benefits Reduced amine circulation rate of up to 70% Installed weight reduction of up to 60% Reduced OPEX related to amine Lower heat duty requirement Smaller footprint Utilizes non-proprietary amine MDEA

129 OIL ProSep Inc. TOGETHER CREATING PURE OIL, GAS AND WATER

130 Upstream Crude Processing

131 Why Treat Crude Oil? Crude contains impurities: gas, water, salt and solids and other contaminants Other contaminants such as H2S and CO2 can create maintenance and hazardous conditions. Salt content may have to be reduced for acceptance by refineries Equipment used to remove these impurities is mostly based on gravity separation enhanced with mechanical, centrifugal and electrostatic coalescing technologies.

132 Defining the Project: Treating Objectives Liquid stabilization through the removal of gas Removal of free water from the oil phase Removal of emulsified water from the oil phase to a specified level In the case of desalting, reduce the salt concentration to meet a specific maximum

133 Defining the Project: Vital Process Data What are the inlet process conditions? What are the physical limitations at the site? What is the design philosophy of the client? What are the outlet specifications that need to be met?

134 END USER Defining the Project: Designing the Process TAG NO. EQUIPMENT DESCRIPTION PROJECT NOTES: P-1101A/B Feed Pumps 1, PSIG 1. The operating pressure for the oil treating equipment is based on the SK-1101 Feed Pump Skid 8' W x 15' L operating pressure required to maintain the water phase of the Thermal HE-1101 SK-1102 NAM-1101 NBK-1101 SK-1103 Oil/Oil Heat Exch. Oil/Oil Heat Exch. Skid Heated FWKO Thermal Elect. Treater Common Piping Skid 7.62 MM BTU/Hr. 8' W x 30' L 13' O.D. x 68' S/S 13' O.D. x 68' S/S 10' W x 20' L Oil Outlet SCOPE OF SUPPLY Makeup Gas Gas Outlet Makeup Gas Gas Outlet Electric Treater as a liquid. 2. True total pressure drop cannot be determined until a through evaluation of the job site is done and a equipment layout can be preformed. ABH-1101A/B Corrugated Plate Interceptor 8' W x 14' L x 10' H ABM-1101 Induced Gas Flotation 8' W x 30' L x 10' H 3. Chemical Injection points are shown for both oil and water treatment. P-1102A/B CPI Oil Pumps PSIG The chemical packages are included in the scope of supply. P-1103A/B CPI Soilds Removal Pumps PSIG CI CI SK-1104 CPI Pump Skid 8' W x 8' L P-1104A/B IGF Oil Pumps PSIG 4. Automated solid wash and removal systems are included with the P-1105A/B IGF Clean Water Pumps 1, PSIG FWKO and Treater but not shown for simplicity. SK-1105 IGF Pump Skid 10' W x 10' L 150 KVA ABH-1102 Solids Separator 4' W x 10' L x 14' H XFMER 5. Automated high skin temperature wash systems are included with the P-1106A/B Soilds Removal Pumps PSIG NAM-1101 NBK-1101 firetubes to prevent solids buildup on the firetube surfaces. SK-1106 P-1107A/B C-1101A/B V-1101 SK-1107 Solids Removal Skid Fuel Oil Pumps Atomizing Air Compressor Air Compressor Reservoir Compressor / Oil Fuel Skid 8' W x 14' L 3 75 PSIG PSIG 120 gal Tank 8' W x 10' L 2 HE-1101 SK-1102 Fuel Gas Heating Section Coalescing Section Fuel Gas Heating Section Coalescing Section 6. Wash water requirements for the automated vessel and firetube wash systems comes from tankage (existing or new) for the water discharged from the Induced Gas Flotation unit. T-1101 Fuel Oil Day Tank 9.25' Dia. Welded Tank P-1108A/B Clean Wash Water Pumps PSIG SK-1108 Wash Water Pump Skid 7' W x 9' L CI Crude from Wells 1 AIR C-1101A/B V-1101 P-1107A/B 7 SK ABH-1102 P-1106A/B SK SK Dual fuel burners require the crude oil (when it is used for fuel) to be at a viscosity of equal to or greater than 20 cp. The crude needs to be at 262 F to meet this requirement. During normal operation the treated oil leaving the Treater meets this requirement. However, during startup a preheater has been provided. P-1101A/B SK-1101 SK A Crude Oil Day Tank has been provided to ensure a dehydrated fuel system during cold startup, allowing the equipment to come up to Solids Removal operating temperature before flowing conditions are initiated. Ploymer Injection Water from P-1105A/B T CI Blanket Gas 9. Two skids tagged SK-1103 are shown on the diagram for simplicity purpose only. In actuality there is only one skid with the FWKO oil and To Disposal Wells Water Storage Tank P-1108A/B To Automated Vessels and Firetubes Wash Systems water outlet piping and the Treater water outlet piping. P-1102A/B 10. Both the FWKO and the Treater have internal solid wash and removal Process Flow Diagram SK-1108 Return from Wash Systems ABH-1101A/B P-1104A/B 15 ABM systems (Sand Jets / Sand Dumps) BPD of water is added to each vessel by the sand wash systems and BPD is removed from each vessel through the sand dump systems. The jet water is additional water to the system where as the sand dump is all internal to the system as reflected in the mass balance table. Water Oulet 13 CLIENT P-1105A/B DWG. NO. PROJECT 19 Solids Removal P-1103A/B DRAWN: DATE: SK-1104 SK-1105 Solids Pit CHECKED: DATE: SCOPE OF SUPPLY ENG. APPROVED: DATE: 17 To Slop Oil System NO. BY DATE DESCRIPTION CHK'D. APP'D. REVISION SCALE: DESCRIPTION UNITS PROCESS CONDITIONS OIL CONTENT IN WATER STREAM WATER CONTENT IN OIL STREAM SOLIDS MASS FLOW RATE SOLIDS LOADING SOLIDS SPECIFIC GRAVITY OPERATING TEMPERATURE OPERATING PRESSURE GAS SPECIFIC GRAVITY GAS FLOW RATE WATER SPECIFIC T,P WATER FLOW RATE OIL SPECIFIC T,P (12.3 O API) CRUDE OIL FLOW RATE LINE NUMBER PPM ,608 3, ,000 8, % LB/D 2,620 2,620 2,620 2, , ,551 PPM , ,986 2, , F PSIG MM SCFD BPD 40, , , , , , , , , , , , , , BPD 10, , , , , ,

135 Defining the Project: Vital Process Data Dry Crude Viscosity Approximate Viscosity - Temperature Chart for various API Crude Oils Color Key: Plot - Inlet Condition - Interm ediate Condition o C , ,000 95,000 20,000 47,000 10,000 Viscosity 24,000 14,000 9,000 4,600 2,300 1,800 1, API 5,000 3,000 2,000 1, API SSU 14 o F Temperature 3 cst

136 Typical Production Train Note: This oil train shows all of the available equipment. This does not mean that all of the equipment is necessary for any particular application.

137 Primary Separation Purpose: Liquid stabilization May be two or three phases May require several stages First stage sizing is primarily based on gas removal

138 FWKO Purpose: Bulk water removal Design basis: empirical data Two or three phases Free water removed, leaving some emulsified water in oil outlet stream (percentage dependent on factors such as API gravity, viscosity, etc.) Viscosity requirements addressed through scavenged heat or internal firetubes

139 Thermal Treater Purpose: Meet spec oil requirements Combination of both heating and coalescing capabilities in one efficient process unit Heating section meets treating viscosity requirements Two or three phases Electrostatic or mechanical coalescing Number required based on coalescing designs (not heating demands)

140 Dehydrator Purpose: Meet spec oil requirements Vertical grid design allows for horizontal flow Options Two or three phases Combination of mechanical coalescer elements with vertical (electrostatic) grid system possible Used in production fields where external heat sources are available or the number of process units is dictated by heat load requirements (line heater used)

141 Dehydrator Double-ended designs with multiple electrostatic zones with variable field densities offered to meet high throughput requirements

142 Electrostatic Treater for BHP Billiton Neptune (GoM) (Delivered 2006) Double Ended Horizontal Flow Adjustable Grid Spacing Inlet Cyclones and Flow Management Dual Transformers Oil Storage Compartment

143 ProSep Desalter Purpose: Reduce salt entrainment in oil Various processes for crude desalting depending on salt content at beginning of production, and outlet oil specification Simple dehydration to multiple-stage dehydration combined with dilution water injections Performance dependent on viscosity (heat input may be required)

144 Desalting Technology Two main methods: dehydration and dilution Dehydration: 99.99% of salt is in solution in the water, so water removal is the key Dilution: Reduction of salt concentration (in the entrained water) with fresh or brackish dilution water Scheme: Application of dilution and dehydration

145 Desalting Technology Key Factors for effective desalting: Achieve homogeneous mixing (dispersion) with injection / mixing devices Avoid emulsion creation with excessive mechanical and/or thermal shearing Achieve adequate water droplet population for coalescence to occur Re-establish water droplet population at each stage of multiple stage dehydration

146 Desalting Technology Two-stage desalting system

147 Desalting Technology Two-stage desalting system KOC K BOPD

148 Vessel Internals Inlet Momentum Management Momentum Breakers Vane Diffusers Cyclonic Distributors Gas Demisting Mesh and Vane Mist Extractors Axial Flow Cyclonic Demisters Viscosity Enhancement Firetubes Heating Coils

149 Vessel Internals Plug Flow Distribution Perforated Plates Outlet Phase Management Vortex Breakers Weirs Solids Removal Sand Wash and Extraction Systems Firetube Protection Detection and Wash Systems ProClean Sand Jet & Dump Station

150 ProSalt Mixer System Wash water inlet Mixer chamber Crude Inlet Crude Outlet Wash water injection section ProSalt Mixer System, iso view

151 Horizontal Flow Separation technology based on horizontal flow regime Can remove smaller droplet size More efficient system Critical particle diameter as described by Stokes Law is reduced since the terminal settling velocity is perpendicular to the horizontal process flow velocity.

152 Horizontal Flow Pattern Allows two-phase and three-phase designs (minimizes equipment) Maximizes phase management Interface adjustment / retention time Continuous operation throughout vessel Enhances separation Smaller droplet removal Calibration Conducive to placement of coalescing components Utilization of mechanical coalescers as bulk or polisher Multiple exposures to electrostatic fields Multi-electrostatic field strength

153 Modular Concept ProSep modular design systems allow: Operation with gas phase, eliminating need for degassing vessel before electrostatic dehydrator Installation of mechanical coalescers in inlet section reduces water cut to acceptable levels before entering electrostatic field, thus increasing inlet water cut that dehydrator can process Placement of firetubes in various locations to improve efficiency and reduce amount of equipment needed

154 Advantages of ProSep s Crude Oil Offerings Half a century of global project management and execution experience Best-fit technology to meet design needs Modular process scheme Horizontal flow pattern Proven operational and mechanical designs offer reduced production losses / better system control

155 Features Individual treating units to fully integrated process trains Mechanical and electrostatic coalescing internals Single-stage and multi-stage desalting systems Onshore and offshore designs Three-phase operation not limited by electrostatic design configuration

156 ProSalt Desalting / Dehydration Technology

157 Spotlight Technology Award at OTC 2009 for ProSalt

158 ProSalt Enhanced Desalting Compact in-line flow conditioning technology Provides unobstructed flow conditions and efficient mixing dilution water (and production chemicals if required), replacing the conventional globe valve Generates a homogeneous phase flow in the pipe at a low pressure drop while controlling shear forces Improved oil-water separation, with less emulsion

159 ProSalt Desalted crude oil 1 st Stage desalter LC 2 nd Stage desalter LC Demulsifier chemical Crude oil Heat exchanger ProSalt mixer ProSalt mixer Effluent water Wash water Wash water pump Recycle wash water pump

160 ProSalt Wash water inlet Mixer chamber Crude Inlet Crude Outlet Wash water injection section

161 ProSalt Water droplet size distribution is crucial for oil/water separation in a desalter. ProSalt creates the best possible flow conditions enhancing the desalter s performance. Not-separable water droplets created with conventional valve Uniform, separable water droplets created by ProSalt

162 ProSalt Mixer and Globe Valve Droplet Distributions

163 ProSalt Benefits Reduced pressure drop 60% Reduced wash-water consumption 40% Improved OiW separation 40% less water in oil downstream desalter Reduced residence time in desalter Reduced chemical consumption High turn-down ratio Easy retrofit Low installation cost

164 ProSalt Qualification at Saudi Aramco Crude oil desalting, 12 installation at Saudi Aramco s GOSP -4 Excerpts from Aramco s report: Pressure drop across de ProPure mixing system decreased by 60% Wash water rate was reduced by 40% (from 50 GPM to 30 GPM) Oil in water content reduced by 40% ProPure mixing system has demonstrated that it is a key process component in the Desalter process with considerable impact on desalting capacity and performance Saudi Aramco

165 ProSalt OPEX Savings Case study Onshore separation plant 770,000 bpd production 7% water cut 130 ppm demulsifier at 3.65 USD/L Electricity costs for desalting process 97,000 USD/Yr Design pressure drop: 0.4 bar Demulsifier consumption per year Demulsifier cost / yr Design case ProSalt 12 M liters 9.4 M liters 43.8 MUSD Electricity 0.97 MUSD TOTAL MUSD YEARLY SAVINGS: 9.65 MUSD 34.3 MUSD 0.82 MUSD MUSD

166 ProSalt References 1 x 16 Mongstad refinery 2 x 14 Grane field 1 x 14 Shedgum 4 1 x 20 UGOSP 4 10 Akal BN 2 x 24 Dos Bocas Terminal

167 ProClean System For Removing Sand and Other Solids from Process Vessels

168 What s the Issue? Most crude oils contain varying quantities of sand and silts. This is especially true for heavier oils (higher viscosity). Accumulation may interfere with process in a number of ways. Displace process volume Upset flow patterns Plug nozzles and equipment Cause fire tube failures Facilitate corrosion Require maintenance shut-ins and......?

169 What s the Issue? Sand removal is an important function in many vessels, especially primary separation vessels, FWKOs, and treaters.

170 Ways to Address the Issue Flush through the vessel and address elsewhere Remove at prescheduled maintenance intervals Employ an efficient sand dump system

171 Characteristics of an Efficient System Prevent disruption of primary process (volume) Avoid process interruption (fluidizing large volumes) Prevent solid accumulations Prevent corrosion damage Prevent abrasion damage Use minimal jetting fluid Adjustable for solids loading Reliable operation (automated!)

172 ProClean System Design Based on many years of applied field experience Developed and proven in a heavy oil environment Focuses on not disrupting the primary process Emphasizes reliability Uses multiple dump stations Requires minimal jetting fluid Maintains a clean vessel SAND DUMP PIPING SPRAY JETS (12 Intervals) FLUSH/DUMP VALVES SANDPAN (5 Length) SAND JET PIPING SAND JET HEADER SAND DUMP HEADER

173 Sand Dump Unit There will be a number of these stations in any given vessel, and large diameter vessels may require several parallel headers to cover a larger area of the vessel s shell.

174 How the ProClean System Works A vessel will have multiple independent stations Each station has a number of matching jets which push the solids within the sand pan area of influence

175 How the ProClean System Works Each individual station jets and dumps on a pre-determined individual schedule Events are automated with multiple, short timed duration cycles several times per day Each vessel section is regularly swept clean with a minimal volume of water

176 How the ProClean System Works Dump action for each station is sequenced to clean the entire vessel a calculated number of times daily The sequence of individual events may be designed to match the sand deposit profile of the vessel.

177 Advantages of the ProClean System Solids accumulation, corrosion, and abrasion are satisfactorily addressed Jets, valves, and nozzles are not in direct contact with the sand on activation The jetting angle pushes the sand parallel to the vessel shell into the pan area of influence

178 Advantages of the ProClean System Discharge ports are located at the top of the sand pan as opposed to the bottom of the vessel Avoids disruption of the primary function process stability

179 Components The primary components of the ProClean solids removal station are bolted in and completely and easily serviceable. These consist of the pan and dump header, the header with jets, the external headers with control valves, and the programmable (PLC) sand dump panel which automatically controls the actuation sequence of the entire cycle.

180 Components Control sequencing is designed so the sand dump and sand jet system within an individual station are operated at the same time.

181 Summary By injecting water at sufficient pressure and velocity, complete removal of the sand buildup can be ensured each time that the station is activated. The water injection occurs simultaneously with sand dump operation to prevent disruption to the process.

182 Summary Frequent, timed, dump events continuously sweep the vessel clean. The vessel is automatically maintained in a continuous sand-free state.

183 WATER ProSep Inc. TOGETHER CREATING PURE OIL, GAS AND WATER

184 Produced Water Treating Solutions

185 Primary Treatment

186 Primary Treatment ProPlate Corrugated Plate Interceptor (CPI)

187 ProPlate CPI

188 ProPlate CPI

189 ProPlate CPI Separator pack (0.75 / 19 mm separation) Solids Oil v = g(ρ w ρ o ) D 2 µ Stokes Law

190 ProPlate CPI

191 ProPlate CPI Separation favored by : High oil droplet velocity Large oil droplet size Large oil / water density difference Low water viscosity Coalescence favored by : High oil concentration High interfacial tension (between oil droplet and water) Low turbulence Thin layer of oil on the pack plates

192 Primary Treatment ProSpin Liquid-Liquid Hydrocyclone

193 ProSpin Hydrocyclone

194 ProSpin Hydrocyclone Factors Affecting Separation: Droplet size Inlet concentration Interfacial tension Hydrocyclone geometry Temperature Differential density Differential Pressure

195 ProSpin Hydrocyclone Differential Pressure Ratio Control PDR = Inlet Pressure Overflow Pressure Inlet Pressure Underflow Pressure Typical Range: PDR = 1.4 to 2.5

196 Primary Treatment ProSkim Vertical Skimmer

197 ProSkim Skimmer Gas LC LC Recovered Oil Clean Water Oily Water

198 ProSkim Skimmer Influent Oil Concentration 5,000 ppm upwards (50,000 ppm slugs) Effluent Oil Concentration ppm

199 ProSkim Skimmer Ideal as first cut ahead of an IGF Code and Non-Code Designs Flow rates from ,000 BWPD Low maintenance Minimal pressure drop across inlet to outlet

200 Secondary Treatment

201 Secondary Treatment ProFloat Vertical Induced Gas Flotation Unit (IGF)

202 ProFloat Vertical IGF

203 ProFloat Vertical IGF Operational Features Dual induction zones maximize gas contact with total flow stream Excellent removal of oils and solids Not impacted by temperature or make-up gas used Atmospheric or ASME code vessels Low oil skimmings volume Proven performance and reliability Minimal moving parts

204 ProFloat Vertical IGF Principles of Operation Gas is hydraulically sheared into water by pushing a recycle stream across multiple educators which draw from the vessel gas space An inline static mixer provides a homogenous oil/water/gas mixture that begins the flotation process Recycle stream is reintroduced into the primary inlet stream Gas bubbles and oil droplet collide and attach increasing the oil droplets apparent density thereby causing them to rise rapidly to the surface The floated oil is intermittently skimmed from the surface while clean water continuously exits near the bottom of the vessel

205 ProFloat Vertical IGF Influent Oil Concentration Effluent Oil Concentration 500 ppm maximum ppm

206 ProFloat Vertical IGF Single vessel flow rates from ,000 BWPD Skim volumes of 1-3% Minimal gas make-up rates: 0.25 ft3/bbl treated actual, 0.5 ft3/bbl treated design Single unit removal efficiencies 93-97%, multiple units in series can achieve 99% No internal moving parts no seal failures

207 ProFloat Vertical IGF Vertical design is motion insensitive uncompromised performance on floating applications (FPSO, SPAR, SemiSub) Ideal for refinery process water treatment Onshore and offshore designed to meet the tightest customer specifications

208 Tertiary Treatment

209 Tertiary Treatment ProShell Deep Bed Nutshell Filter

210 Tertiary Treatment Media Filtration Multi / Mono Media Filters Sand and Oil make Roadbed Low Capital Cost Lower Flux Rates Ancillary equipment required Nutshell Filters High Flux Rates Easily Backwashed Higher Capital Cost Low media consumption Good with heavy oil for overboard discharge

211 ProShell Nutshell Filter

212 ProShell Nutshell Filter Influent Oil Concentration Effluent Oil Concentration 50 ppm nominal maximum 90-98% removal of oil solids > 5 microns

213 ProShell Nutshell Filter Applications Produced water-injection, disposal, softening SAGD Oil removal and softener filters Seawater injection FPSO and platform complete packages Refineries-cooling/waste water Polyethylene quench water

214 Near-Zero Discharge Solutions

215 Gas Flotation Unit Produced Water Treatment

216 Gas Flotation Unit Up to 97% removal efficiency as standalone and 99% combined with CTour or Sorbfloc No moving parts Can be installed in series for optimum result Recycles induced gas 3 m 3 separator treats 6 million liters/day (37,700 bpd)

217 Gas Flotation Unit Gas Oil ProPure mixing technology Injection of condensate: CTour process Produced water Gas flotation unit Injection of SORBFLOC flocculant Cleaned water

218 Gas Flotation Unit Benefits Ultra-efficient removal of small oil droplets and gas bubbles Not sensitive to flow variations Robust design no moving parts Low maintenance One or two stages Small footprint Can be combined with CTour and Sorbfloc

219 Sorbfloc Green Flocculant for Produced Water Treatment

220 Sorbfloc Produced water treatment Instant mixing of a new green flocculant for selective and robust flock generation. The flocculant is injected and mixed with ProPure s proprietary injector/mixer. Sorbfloc removes full spectrum of harmful components: dispersed and dissolved hydrocarbon heavy metals submicron particles

221 Sorbfloc Injection of gas/condensate Gas Oil ProPure mixing technology Produced water Injection of SORBFLOC Gas flotation unit Cleaned water

222 Sorbfloc Flocculant technology has been tried and tested by our industrial partner Sorbwater in different industrial applications such as slop, sewage and household water Technology qualification in progress, first offshore test carried out in February 2009

223 Sorbfloc Benefits Removal of dispersed and dissolved hydrocarbons, as well as heavy metals Efficient even at low dosage can be supplied as powder to minimize logistic and handling costs Green flocculant, based on an alginate - no harmful discharges to sea Does not affect crude quality Inlet Outlet No bioccumulation of flocculant, also approved for treating drinking water Instant flocculant mixing by ProPure in-line mixer

224 CTour Best Available Water Treatment Technology

225 Spotlight Technology Award at OTC 2006 for The CTour Process

226 The CTour Concept Proprietary highly efficient technology extracting dispersed and dissolved hydrocarbons from produced water by using a liquid condensate as a solvent. Highlights: Typical outlet discharge <5ppm oil Only environmentally friendly and cost efficient alternative to well reinjection Easy to retrofit with IGFs and hydrocyclones

227 CTour Separator Injection of condensate % CTour Mixing train Produced water outlet ppm Hydrocyclone or gas flotation unit High droplet break-up and mixing efficiency, achieved with a low pressure drop Homogeneous shear force exposure, compact in-line design creating optimal coalescence of condensate and oil

228 CTour Separator Injection of condensate % CTour Mixing train Process Produced water outlet ppm Hydrocarbon contaminants extracted, oil and condensate droplets coalesce 99.5% of the condensate is separated in the hydrocyclone and routed back to main process Hydrocyclone or gas flotation unit

229 CTour Test Skid bpd Produced water inlet Injector and mixers Condensate tank Dimensions L, W, H: 3.70 x 1.60 x 2.15 m 12 2 x 5 3 x 5 Produced water inlet: PW Pump Hydrocyclone Produced water outlet 1.5 ANSI B.16.5, #600 RTJ

230 CTour Benefits Typical outlet concentration is <3ppm Total Petroleum Hydrocarbons (TPH) Removal of >90% of Polycyclic Aromatic Hydrocarbons (PAH) Cost-efficient alternative to reinjection Environmentally sound and rated BAT Best Available Technology by OSPAR 40% reduction of the corrosion inhibitor discharge Reliable technology Residual OiW discharge ppm ,25 0,5 0,75 1 1,25 1,5 Condensate Injection Vol% Feed 1000 ppm Feed 500 ppm Feed 300 ppm Feed 100 ppm Feed 40 ppm

231 CTour References Statfjord A 560,000 bwpd Statfjord B 440,000 bwpd Statfjord C 400,000 bwpd Snorre A 150,000 bwpd Åsgard A 110,000 bwpd Ekofisk 2/4-J 300,000 bwpd

232 TORR Produced Water Treatment

233 TORR Produced Water Treatment System for produced water de-oiling using a proprietary coalescing/ adsorption media The water enters at the bottom of in-line pressure vessels and pasess through a core of coalescing/adsorption media The media adsorbs oil droplets which then coalesce into larger globules Globules desorb from coalescing element and separate by gravitation

234 Operating Principles Adsorption Coalescence Desorbtion Gravity Separation

235 Product Specifications Oil Density: API 16 and above Fluid Temperature: up to 95 C Inlet Oil Concentrations: up to 2,000 mg/l Oil Droplet Diameters: down to 2 microns Produced Water Flow Rates: up to 120,000 BWPD Pressure Drop: 7 to 10 psi Flow Turndown Ratio: 100:1 Gas Recovery: up to 2-3% Handles upset feed conditions Sustains motion (FPSOs and semi-submersibles) Exceeds stringent overboard discharge regulations

236 TORR Removal Efficiency 110,00 % 90,00 % 70,00 % 68,20 % 90,40 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 50,00 % 30,00 % 10,00 % -10,00 % 2,5 7,5 12,5 17,5 22,5 Oil droplet size (microns) 27,5 32,5 37,5 42,5

237 Coalescing Elements

238 Small Footprint 30,000 BWPD 15,700 bbls/m2 (H1+H4) = 7.2 m D2 = m Footprint = 1.9 m2 60,000 BWPD 17,600 bbls/m2 (H1+H4) = 7.5 m D2 = 2.0 m Footprint = 3.4 m2

239 TORR Benefits Oil removal from up to 2000 ppm to outlet of <10 ppm High flow rate turn-down ratio Small footprint Efficient even with very small oil droplet size distribution No chemicals added

240 TORR References Triton FPSO 65,000 BPD 7 Gathering centers 260,000 BPD BP Angola 6,000 BPD Mobile unit 2,000 BPD Mobile unit 5,000 BPD

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