Sealing Produced Water complying with OSPAR & Environmental Legislation. Utilising USP technology

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1 Sealing Produced Water complying with OSPAR & Environmental Legislation Utilising USP technology

2 Introductions Gib FitzGibbon Senior Applications Engineer John Crane Aberdeen Dr.Mike Turner Principal Technologist Oil Plus Jim Malcolm General Manager John Crane North Sea Operations John Crane & Oil Plus are part of Smiths Group plc

3 Mike Turner PhD in Geochemistry and has worked in the oil industry for 12 years Worked for Oil Plus for 8 years Has managed over 30 projects with Oil Plus and specialises in flow assurance and management of the water cycle in the oil field Specific interests in scale management

4 Seal Selection Considerations Safety - no risk to personnel Environment - no harmful discharges to atmosphere or sea Technical - fit for purpose - reliable Cost - acceptable value, taking into account potential loss of production

5 COST OF WATER COST OF CRUDE = $ 40 - $50 PER BARREL COST OF DEFERRED OIL = $ 5 / 5 PER BARREL COST OF INJECTED WATER =? COST OF LOSS OF P.W. INJECTIVITY =? Potential cut back in production or possible shut down SEAL SELECTION CRITICAL!

6 Lost Production due to loss of PWI ACTUAL CASE HISTORY No. of outages.8 Pump downtime per outage (days) Injection water lost (bbl/day)..100,000 Total injection water lost (bbl).8,800,000 Deferred oil (bbl).5,866,667 Based on a ratio of 1.5:1 Value of deferred oil (@ $4.60 per bbl). 18,792,943

7 Water Injection Seawater Safety Environment Technical Temperature 7-10 ºC Pressures 5-15 barg Clean, no solids No hazardous substances Single Seal usually OK

8 Water Injection Produced Water Safety Environment Technical Hot - up to 100 ºC Pressures up to 45 bar g Corrosive Complex, unstable brines Scale, Wax Biologically active Solids - µm to mm size Pyrophoric when dried (FeS) Toxic - added chemicals and natural components (heavy metals, radioactives) Characteristics may vary with time (new wells, injection water breakthrough)

9 OSPAR & Emission Management The prevention and reduction of produced water and oil and other substances contained therein, should be a priority item for continuous improvement in an operator's environmental management systems. OSPAR Recommendation 2001/1 for the Management of Produced Water from Offshore Installations Total oil-in-water in 2006 reduced by 15% from 2000 level Reduction from 40 to 30 mg/l by end 2006 BAT (best available technology) & BEP (best environmental practice) to be applied Other water (ballast, drainage) still limited to 40 ppm Zero Emissions (corporate targets)

10 OSPAR & Emission Management Our goals are simply stated - no accidents, no harm to people, and no damage to the environment. SME website - products required: Products or services that improve safety or plant integrity Products and services that will reduce customers costs Consistent with their commitment to contribute to sustainable development, Shell companies have a systematic approach to health, safety and environmental management in order to achieve continuous performance improvement. Ensure all employees and others engaged on Canadian Natural s behalf are aware of the need and informed of the requirements to protect the environment; Determine, evaluate and mitigate the environmental impacts of Canadian Natural s business during project planning, exploration, drilling, construction, operations and decommissioning; Communicate with members of the public regarding Canadian Natural activities; Ensure that Canadian Natural operations comply with government regulations, industry guidelines and company policies and procedures concerning the protection of the environment and public; Ensure appropriate waste and emission management programs are developed and implemented Use energy and other resources efficiently at Canadian Natural operations.

11 Conventional Solution - the problems Single Seal Emulsions - unstable fluid film Corrosion of metal parts Solids - Abrasion Solids, Wax - Springs clogging Scaling Produced Water Vaporisation Solids, Wax - Hang up HC leak to environment A single seal is not suitable Technically - not up to the job Environmentally - HSE - OSPAR

12 Conventional Solution - the problems

13 DRY TANDEM SEAL PI PT Primary seal running on product - reduced life Leakage taken to drain DRAIN Also pass through backup seal to atmosphere Emissions are managed and controlled But NOT ZERO Barrier Press. < Product HC emissions Produced Water

14 WET TANDEM SEAL Primary seal running on product - reduced life Leakage contained in vessel, drained off periodically Emissions are managed and controlled But NOT ZERO Barrier Press. < Product HC emissions Produced Water

15 DOUBLE SEAL Barrier fluid Pressurised barrier system Barrier pressure > product pressure Barrier leaks into pump Product cannot leak out ZERO EMISSIONS Barrier Press. > Product Product Barrier fluid

16 Summary Single, Dry Tandem and Wet Tandem ALL have their primary seal in the product. Tandem seals will control the emission of reservoir products to some extent, but will still allow HC into the environment The traditional safe, environmentally acceptable and technically reliable solution is a double seal. Guaranteed not to leak product to atmosphere. However it can be expensive with high maintenance. USP technology not only offers double seal integrity but surpasses it in reliability, reduced maintenance and value.

17 Conventional Solution - the problems Single Seal Emulsions - unstable fluid film Corrosion of metal parts Solids - Abrasion Solids, Wax - Springs clogging Scaling Produced Water Vaporisation Solids, Wax - Hang up HC leak to environment A single seal is not suitable Technically - not up to the job Environmentally - HSE - OSPAR

18 Produced Water Sealing Solutions USP Technology

19 Produced Water Sealing Solutions USP Technology Based on well-established dry gas seal technology Rotation 40 bar product Flow 0 bar seawater Barrier fluid pressure Process pressure Maximum pressure

20 Single seal USP seal

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22 Plan 53 Seal System with Auto-top up tank Store Circulate Pressurise Monitor Condition PTx PTx PI PSV SEAL PUMP CROSS OVER VALVE SEAL TRIP ALARM ALARM TRIP FILL / INLINE FILTER BLOCK 3/4 NPT (F) PI PTx PTx PSV HIGH POINT VENTS SEAWATER SUPPLY & RETURN TO SEAL OIL COOLERS LOW POINT DRAINS ACCUMULA TOR NRV PI LTx LID Vent PI AIR PUMP Y TYPE STRAINER LG Y TYPE STRAINER AIR PUMP AIR REG DRIP TRAY DRAIN 1/2 NPT(F) AIR REG

23 PLAN 53M

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25 USP Seal for PW Ultra reliable Zero maintenance Self-recovery Greatly reduced package costs 29% - 35%. Self-regulating Self-cleaning Reduced heat generation & temperatures Small footprint Seal life: typically 3 years+