Managing flow assurance uncertainty through stochastic methods and life of field multiphase simulation

Similar documents
Prediction of Gas Hydrates Formation in Flow lines

What is gas hydrates?

DP Conference MTS Symposium. Flow Assurance. Elijah Kempton Tommy Golczynski

Effects of flow behavior on the design of transient operation scenarios

Inland Technologies Inc

Gas Hydrates and Flow Assurance of Reservoir Fluids

Production Management Solution

Flow Assurance in a subsea system perspective DAY 1 part 1

Relationship between Hydrate-Free Hold Time and Subcooling for a Natural Gas System Containing Kinetic Hydrate Inhibitors

Thus, there are two points to keep in mind when analyzing risk:

How to establish an integrated production management system across the reservoir lifecycle

Down Hole Flow Assurance

A Comparison between. commercial Pipeline Fluid-dynamic Codes. OLGA vs. LEDAFLOW

RESOLVE Case Study: Stochastic Scenarios in Field Planning

Field Operations & Inlet Receiving. Chapter 8

MEMO CONCERNS. DISTRIBUTION For general information ELECTRONIC FILE CODE AUTHOR(S) DATE. 14F013 9

Reducing the Cost of Hydrate Management by Under-Dosing Thermodynamic Inhibitors

Fluid Mechanics, Heat Transfer, and Thermodynamics Fall Design Project. Production of Dimethyl Ether

Introduction To Computational Fluid Dynamics. Presented by Marc Laing CFD Team Manager

Risk Analysis Overview

Reprinted from HydrocarbonEngineering December

USING A LARGE RESERVOIR MODEL IN THE PROBABILISTIC ASSESSMENT OF FIELD MANAGEMENT STRATEGIES

Field Operations & Inlet Receiving. Chapter 8

Process Plant Design: The High Cost of Slow Decisions Using Risk Analysis Software to Confidently Speed the Design Process

Deep Sea Hydrate Flow Assurance Challenges

DYNAMICS OF BASELOAD LIQUEFIED NATURAL GAS PLANTS ADVANCED MODELLING AND CONTROL STRATEGIES

THE HYDRATE PLUGGING TENDENCY OF CRUDE-OILS AS DETERMINED BY USING HIGH PRESSURE ELECTRICAL CONDUCTIVITY AND TRANSPARENT HYDRATE ROCKING CELL TESTS

Strategic Engineering of Large Infrastructure Systems: Real Options, Staged Development, and the Role of Flexibility

GAS CONDITIONING FOR GAS STORAGE INSTALLATIONS

I. CHEM. E. SYMPOSIUM SERIES NO. 85 THE SMALL-SCALE RELEASE RATE OF PRESSURISED LIQUEFIED PROPANE TO THE ATMOSPHERE

Gas Hydrates in Low Water Content Gases: Experimental Measurements and Modelling Using the CPA EoS

Gas Lift Workshop Doha Qatar 4-88 February Optimisation of Gas Lift Well Clean-up Operations. by Juan Carlos Mantecon

PROJECT DESIGN HYDRATE MANAGEMENT BY APPLICATION OF MULTIPHASE FLOW SIMULATIONS TOOLS WITH HYDRATE FORMATION AND TRANSPORT

WellFlo. Feature Presentation Weatherford. All rights reserved.

Study into the Life Cycle Cost of Ductile Iron and Stainless Steel Pumps

University of Zagreb, Faculty of Mining, Geology & Petroleum Engineering

Virtuoso Industry leading engineering simulators, operator training systems and online monitoring systems

Transient and Succession-of-Steady-States Pipeline Flow Models

ADVANCED HYBRID MODELLING OF SEPARATORS FOR SAFE DESIGN IN OIL/GAS PRODUCTION PLANTS

Floating LNG: The Challenges of production systems and well fluids management By: Frederic MOLLARD, TECHNIP France 04/19/2013

Optimization of NCG System Lineups

An Offshore Natural Gas Transmission Pipeline Model and Analysis for the Prediction and Detection of Condensate/Hydrate Formation Conditions

PROBABILITY MODELS AND UNCERTAINTY IN HYDROLOGY: SOME PERSONAL REFLECTIONS

Combined Mass and Energy Transients

T chnology ogy for a be tter societ ciet

Hydrates are ice like substance which form in natural gas pipelines Hydrates are similar to ice but the characteristics of hydrates are different

Versalis e oil & gas production

Oil Export Tanker Problem- Demurrage and the Flaw of Averages

MAXIMIZING VALUE OF OIL AND GAS DEVELOPMENTS THROUGH RESERVOIR TO SURFACE INTEGRATED MODELING

FORMATION OF GAS HYDRATE BLOCKAGES IN UNDER-INHIBITED CONDITIONS

GEOTHERMAL RESOURCE ASSESSMENT CASE EXAMPLE, OLKARIA I

FROM DATA TO PREDICTIONS

Describing DSTs Analytics techniques

PRE-READING 4 TYPES OF MODEL STRUCTURES

COMBINED HEAT AND POWER SYSTEMS IN LIQUEFIED NATURAL GAS (LNG) REGASIFICATION PROCESSES

3rd International Conference on Life Cycle Management. Zurich, University of Zurich at Irchel August 27 to 29, 2007 Switzerland

- 2 - SME Q1. (a) Briefly explain how the following methods used in a gas-turbine power plant increase the thermal efficiency:

Decision Support and Business Intelligence Systems

Gas hydrate crystallisation: from laboratory to pilot plant tests. A. Sinquin Institut Français du Pétrole

Quenching steels with gas jet arrays

Probabilistic well cost and time modelling. See the unforeseen

A NEW POLYNOMIAL BASED MODEL FOR DETERMINING COOLING TOWER EVAPORATION WATER LOSS. Aaron Powers Johnson Controls, Inc.

SIMULATION OF CH 4 PRODUCTION FROM SUBSEA GAS HYDRATE DEPOSITS COUPLED WITH CO 2 STORAGE

Numerical Analysis of Heat Pipe Fin Stack by Delta Wing Vortex Generator

NATURAL GAS HYDRATES & DEHYDRATION

Analysis Fraction Flow of Water versus Cumulative Oil Recoveries Using Buckley Leverett Method

A simple model for low flow forecasting in Mediterranean streams

Stochastic Gradient Approach for Energy and Supply Optimisation in Water Systems Management

Composition & PVT (Fluid properties as a function of Pressure, Volume and Temperature) Statoil module Field development Magnus Nordsveen

GAS COOLING HEAT TRANSFER AND PRESSURE DROP CHARATERICTICS OF CO 2 /OIL MIXTURE IN A MICROCHANNEL ABSTRACT

Non-isothermal Flow of CO2 in Injection Wells: Evaluation of Different Injection Modes

Measurement of Two Phase Flows in Geothermal Pipelines Using Load-Cells: Field Trial Results

Fluid Mechanics, Heat Transfer, and Thermodynamics Design Project. Production of Acrylic Acid

Global Supply Chain Planning under Demand and Freight Rate Uncertainty

Chapter 7 : Conclusions and recommendations

K&F offers due diligence and techno-commercial

Gas Lift Applied to Heavy Oil

Study programme in Sustainable Energy Systems

CUSTOM DECISION SUPPORT, LLC Telephone (831) Pharmaceutical Pricing Research

Simulation of thermal hydraulics accidental transients: evaluation of MAAP5.02 versus CATHAREv2.5

Flexible Decision Frameworks for Long-term Water Resources Planning. Melanie Wong ESD.71 Application Portfolio 12/13/11

MODELLING OF THE THERMO-PHYSICAL AND PHYSICAL PROPERTIES FOR SOLIDIFICATION OF AL-ALLOYS

Problems with Pitots. Issues with flow measurement in stacks.

MODELLING OF THE THERMO-PHYSICAL AND PHYSICAL PROPERTIES FOR SOLIDIFICATION OF AL-ALLOYS

Experimental study of wax deposition in pipeline effect of inhibitor and spiral flow

Petroleum and Natural Gas Engineering is accredited by European Accreditation Agency (ASIIN).

Availability Assurance Shell s experience in identifying elements critical to long term gas supply

Onshore gathering systems: Multiphase Flow Modeling Accuracy Challenges

Operational Flexibility of CO 2 Transport and Storage

Quantifying Uncertainty in Oil Reserves Estimate

Getting Started with OptQuest

Rapid Drawdown with Effective Stress

Integration of Reservoir Modelling with Oil Field Planning and Infrastructure Optimization

Top of Line Corrosion and Water Condensation Rates in Wet Gas Pipelines

Integrated Sensor Diagnostics (ISD) Subsurface Insight for Unconventional Reservoirs

Assessing technical risks in the geological storage of CO 2

In any particular situation, dealing with environmental risk involves two steps:

What is. Uncertainty Quantification (UQ)? THE INTERNATIONAL ASSOCIATION FOR THE ENGINEERING MODELLING, ANALYSIS AND SIMULATION COMMUNITY

Introduction. Objective

PREVENTION OF HYDRATE BLOCKAGE OF PIPELINE FOR GAS PRODUCTION

Transcription:

Managing flow assurance uncertainty through stochastic methods and life of field multiphase simulation A. E. Johnson 1, T. Bellion 1, T. Lim 1, M. Montini 2, A I. Humphrey 3 1 FEESA Ltd, Farnborough, Hampshire, GU14 7LP, United Kingdom 2 ENI Divisione E&P, Via Emilia, 1-20097 San Donato Milanese, Italy 3 BP Exploration, Sunbury-on-Thames, Middlesex, TW16 7LN, United Kingdom ABSTRACT Multiphase simulators are used widely by flow assurance engineers but the inputs to the simulator are often thought of as apparent certainty whereas, more accurately, they represent unquantified uncertainty. This paper shows how stochastic methods combined with life of field multiphase simulation can be applied to the design and operation of surface facilities, leading to more appropriate and economic systems. In particular, case studies of three marginal projects are presented, namely: handling reservoir uncertainty for a multiple oil well production system, Mono Ethylene Glycol optimisation of a large wet gas network and hydrate management of a new oil well tieback to an existing facility. 1 INTRODUCTION Stochastic methods have become standard for oil and gas reservoir engineers and more widely for economists, to help them understand how input uncertainties affect predictions of quantities such as reserves, production rates or net present value (NPV) of projects. However, stochastic methods are not often used by other engineering disciplines that are also affected by input uncertainties (from reservoir, but also measurement, operation, etc.). For example, facilities engineers typically develop an arbitrary design case (i.e. a snap-shot in time), which is some combination of the worst possible scenarios of each of the key inputs, such as reservoir temperatures and well deliverability, each of these inputs having uncertainty associated with them. As many modern production system designs are for deeper water and longer step-outs, making them economically marginal, assuming the arbitrary worst design case no longer seems appropriate and understanding the effect of uncertainty on the design becomes increasingly important. Applying a life of field (LoF) approach to the modelling of production systems, results in more rigour by removing the arbitrary choices and combinations of the worst of the worst approach. This avoids over design of systems by consideration and acceptance of quantified risk.

A multiphase thermal hydraulic network simulator (Maximus) was used to carry out conceptual studies for the 3 cases presented in this paper. Maximus is a LoF, steady-state, fully compositional, thermal-hydraulic, network solver primarily for the upstream oil and gas industry, although it can be used for any steady state pipeline simulation (1). Maximus has a built-in link to the PVT package Multiflash (2), through which it is easy to calculate the phase behaviour of the fluids, including hydrates. Combining the LoF approach with stochastic methods, uncertainty in design can be further reduced, as demonstrated in the following case studies. 2 CASE STUDY 1 HANDLING RESERVOIR UNCERTAINTIES FOR A DAISY CHAINED MULTIPLE OIL WELL TIEBACK 2.1 Introduction During conceptual design of a production network, handling the uncertainties is key to a robust and appropriate design, for the operator to plan for the most likely behaviour of the field as a whole, rather than the worst case scenario of every well at the same time. This case looks at predicting the minimum cool down time (CDT), for a 40 km daisy chained deep-water production system with 7 production wells spread across 3 fields (Phi, Beta and Kappa) as shown in figure 1. Figure 1: Schematic of the daisy chained production network The main sources of uncertainties have been identified as the reservoir temperatures (T res ) and liquid productivity index (PI). For each reservoir, data are provided about the uncertainties of these input quantities to indicate the most likely, downside and upside values. With 3 possibilities for each of the variables and each of the fields, assessing all possible combinations would require 3 6 (729) LoF simulations to fully handle these uncertainties. Using experimental design techniques these 729 LoF cases can be reduced whilst still ensuring statistically representative results. The cases were reduced from 729 to 27 by applying the Taguchi method (3). This statistical approach, using (quality) loss functions, is a common technique in chemical and manufacturing industries, where it is used on process improvement and quality control.

Typically an oil production network requires a CDT greater than 10hours, which will incorporate a significant no touch time before hydrate management procedures are implemented. Due to operational requirements, this network required a minimum CDT through LoF greater than 18hours, as schematically demonstrated in figure 2. Figure 2: Simple schematic plot of CDT over LoF 2.2 Methodology To reduce the potential 729 LoF simulations down to 27 statistically meaningful cases, the relative dependence of the minimum CDT on variation of the individual variables was found by running approximately 40 cases and ranking the significance of each variable. This allowed for cases to be sorted as the orthogonal array shown in Table 1 (pre-defined in (3)), where the upside, most likely and downside of each variable for each field were input as +1, 0 and -1 respectively. The upside and downside values were +/- 75% in the PIs and +/- 2 ºC in reservoir temperatures. Table 1: Orthogonal variable array of 27 pre-defined cases Field Variables Field Variables 2 Maximus Result Case No. Phi PI Phi T Beta T Kappa T Beta PI Kappa PI Phi PI Phi T Beta T Kappa T Beta PI Kappa PI Min LoF CDT 1 0 0 0 0 0 0 0 0 0 0 0 0 31.0 2 0 0-1 -1 0 1 0 0 1 1 0 1 28.9 3 0 0 1 1 0-1 0 0 1 1 0 1 32.3 4 0-1 0-1 1-1 0 1 0 1 1 1 28.7 5 0-1 -1 1 1 0 0 1 1 1 1 0 27.7 6 0-1 1 0 1 1 0 1 1 0 1 1 29.6 7 0 1 0 1-1 1 0 1 0 1 1 1 33.3 8 0 1-1 0-1 -1 0 1 1 0 1 1 32.7 9 0 1 1-1 -1 0 0 1 1 1 1 0 32.6 10-1 0 0-1 -1-1 1 0 0 1 1 1 17.9 11-1 0-1 1-1 0 1 0 1 1 1 0 21.7 12-1 0 1 0-1 1 1 0 1 0 1 1 22.2 13-1 -1 0 1 0 1 1 1 0 1 0 1 17.2 14-1 -1-1 0 0-1 1 1 1 0 0 1 16.6 15-1 -1 1-1 0 0 1 1 1 1 0 0 17.1 16-1 1 0 0 1 0 1 1 0 0 1 0 23.9 17-1 1-1 -1 1 1 1 1 1 1 1 1 21.1 18-1 1 1 1 1-1 1 1 1 1 1 1 22.3 19 1 0 0 1 1 1 1 0 0 1 1 1 33.6 20 1 0-1 0 1-1 1 0 1 0 1 1 32.1 21 1 0 1-1 1 0 1 0 1 1 1 0 34.1 22 1-1 0 0-1 0 1 1 0 0 1 0 31.3 23 1-1 -1-1 -1 1 1 1 1 1 1 1 30.0 24 1-1 1 1-1 -1 1 1 1 1 1 1 31.8 25 1 1 0-1 0-1 1 1 0 1 0 1 35.1 26 1 1-1 1 0 0 1 1 1 1 0 0 34.0 27 1 1 1 0 0 1 1 1 1 0 0 1 35.5 Table 1 shows the variables, sorted by CDT dependence, along with the minimum CDT from each Maximus LoF network simulation. The variable that has greatest impact on the

CDT, Phi PI, is on the left hand side of the table through to the one with the least impact, Kappa PI, on the right hand side. The CDT was calculated from equation 1, derived from Newton s law of cooling. The CDT was calculated for every pipeline in the system to find the minimum CDT time. Where: ( ) 1 T init = Initial temperature, T fin = Final temperature, T Ambient temperature, B = Fitting coefficient, calculated from transient pipeline cooldown simulation Regression analysis on the 27 cases displayed in Table 1 was then performed (in this case using the Excel Solver), to obtain the polynomial coefficients in the functional form of correlation 2. This resulted in a correlation that describes the CDT with variations of the input uncertainties. Where: ( ) ( ) 2 C 0 = Constant, a, b, c, etc. = Coefficients, X n = Outcome of variable n, (+1 or 0 or -1), R = Residual term (assumed negligible) Figure 3: CDT comparison with Maximus results and polynomial predictions Figure 3 presents the comparison of the results for minimum CDT i.e. output from the polynomial correlation 2 and the values calculated from Maximus for the 27 cases. The comparison shows an average difference of 2.3%, which is well within the error bands of multiphase and thermal prediction so was deemed acceptable.

A Monte Carlo simulation was then run using correlation 2, with the Excel statistical add-in, Crystal Ball. The upside, most likely and downside values (-1, 0, +1) were entered as the P10, P50, P90 respectively, to define triangular probability distributions with the limits -1 and +1. The simulation was run for up to 200,000 samples to produce the probability distributions for minimum CDT. 2.3 Results and discussion The result of the Monte Carlo simulation is shown in Figure 4 (20,000 samples were found to be sufficient in this case): Figure 4: Crystal Ball output (top panel is probability density function, bottom panel is cumulative probability distribution). The Monte Carlo simulation results from Crystal Ball demonstrated that there was a 90% chance of the minimum LoF CDT being greater than, or equal to, the target time of 18hrs. This approach of LoF multiphase simulation combined with stochastic analysis techniques has the following benefits for this conceptual design: 1. Reduced the number of simulations required 2. Presented a procedural approach to the assessment of CDT 3. Gave the project assurance on minimum CDT 4. Resulted in a robust but not overly conservative design A much wider range of uncertainties could be investigated in this way and the use of stochastic techniques in handling other input uncertainties in design is examined in case study 2.

3 CASE STUDY 2 - MEG OPTIMISATION OF A LARGE WET GAS NETWORK 3.1 Introduction Case 2 examines the Mono Ethylene Glycol (MEG) injection optimisation in the BP West Nile Delta (WND) wet gas development in Egypt. A schematic of the full Maximus model of the WND system is shown in Figure 5: Figure 5: Schematic of WND network As in case 1, careful assessment of the uncertainties, based on accurate predictions, is required for cost effective design and operation. The prevention of hydrates through using chemical inhibitors (MEG in this case) is a widely used practice in oil and gas production. Accurate assessment of chemical inhibitor requirements is crucial to avoid over or under dosing and, as initially in this case, to avoid the development appearing unfeasible due to the size of the MEG facilities required. WND comprises three production fields: Raven, a pre-pliocene reservoir, Giza Fayoum and Taurus Libra, both Pliocene reservoirs. The Pliocene reservoirs are low pressure

(<350bara) and low temperature (<65ºC) reservoirs, with a low CGR (<7.5stb/mmscf) and low water production. The pre-pliocene reservoirs are high pressure (~750bara) and high temperature (~135ºC), with a high CGR (~23.5stb/mmscf) and high water production (4). In the WND gas development the issue of the formation of hydrates, is to be handled with the injection of MEG downstream of the chokes in the Pliocene fields and at the three manifolds for the pre-pliocene field. The development comprises 34 wells and approximately 380km of pipelines. Initial work to size the MEG injection system found that the approach of taking the worst of the worst (i.e. water rate, temperature, pressure) would lead to an extremely large, and unfeasible, MEG injection system. Therefore, a more appropriate method was sought. FEESA were approached to perform the work and used a multiphase, LoF simulation combined with stochastic methods to better calculate the MEG requirements. 3.2 Methodology In order to obtain the required MEG flowrate necessary to avoid the formation of hydrates in the network of pipelines, first a set of hydrate dissociation curves needed to be calculated. This was done via a simple Maximus model with three sources with different compositions, pure water, MEG and dry gas, connected to a sink via a pipe. Figure 6: Maximus model for the calculation of hydrate dissociation curves A sensitivity analysis of various gas, water and MEG flowrates resulted in the hydrate dissociation curves displayed in Figure 7. Figure 7: Hydrate dissociation curves for various MEG concentrations (%) Then, by using the hydrate dissociation curves in Figure 7, the fitting parameters k 1 to k 4 were solved for the modified Hammerschmidt equation 3. This provided a relationship to

rapidly calculate the MEG concentration for any specific pressure and temperature (within the study range). The modified Hammerschmidt equation is given below: ( ) 5 ( ) 6 3 4 Where: = Mass fraction of glycol to avoid hydrate formation, = Hydrate dissociation temperature, = Actual flowing temperature, = Difference between and, = Hammerschmidt coefficient, k 1 to k 4 = Composition specific fitting parameters The modification to the Hammerschmidt equation is to make the term H, which is a constant in the original equation 3, a function of the pressure for a better fit to the data. By introducing equation 3 into the user defined production logic of the Maximus model, it was determined where in the LoF there was a risk of hydrate formation at any point in the system. The model then automatically calculated the required MEG flowrate to dose each pipeline section out of the hydrate region (for each timestep of the simulation through LoF). After the Maximus LoF multiphase simulation results were obtained, further analysis of the uncertainty was carried out stochastically using an Excel model set up to perform Monte Carlo simulations. In calculating the MEG requirement, it is known that there would be a measurement uncertainty on each of the inputs required in the calculation (i.e. the pressure, temperature, water flowrate and MEG flowrate). Thus, when determining the necessary MEG flowrate, various methodologies were considered for the calculation, as shown below: Exact calculation of MEG required to exit the hydrate region A 3ºC margin on the associated hydrate dissociation temperature A 2.5% error added as measurement uncertainties A 10% error added as measurement uncertainties An absolute measurement error for each of the 4 measured quantities (Table 2). Table 2: Absolute measurement errors Measured quantity Unit Error Pressure bara ±2 Temperature K ±0.2 Water flowrate kg/s ±0.1 MEG flowrate kg/s ±0.05 The four measurements with uncertainty, shown in table 2, were input as probability distributions assuming that the uncertainties are of a random nature and therefore considered to be normally distributed.

3.3 Results and discussion An example of the MEG flowrate results, from the LoF simulation, for each of the above methodologies are plotted in Figure 8 for the Raven trunkline: Figure 8: Comparison between MEG flowrates with different errors for the Raven trunkline Figure 8 shows, as expected, the higher the error applied, the more MEG is required. However, the case at the end of life for the Raven trunkline shows an interesting difference between the methodologies considered. The trends in late life indicate that for cases with a small uncertainty band applied, MEG injection is not required, but for the other cases it is. To better assess such spread in the results statistical analysis was applied. Figure 9 shows an example of the results from the Monte Carlo analysis applied to the Raven trunkline at a point towards the end of LoF. Figure 9: Results of statistical analysis From the Maximus simulation described above, the MEG flowrate necessary to remain outside the hydrate curve is -1.3kg/s (i.e. a negative value, so no MEG is required). However, once all the measurement uncertainties are taken into account, the resulting

probability density function (PDF) shows that there is a certain risk of hydrate formation and in order to be 99% confident of flowing outside the hydrate region, an amount of MEG equivalent to 1.4kg/s would be required (4). The above methods were successfully used to: 1. Show that many of the worst cases can t happen simultaneously 2. Reduce the MEG design rates by a factor of approximately 3, making the project feasible and moving it into the next design phase 3. Avoid hydrates with 99% certainty The above demonstrates the combined use of multiphase simulation and stochastic methods applied to input uncertainties, can greatly impact the feasibility of a project. Case 3 uses similar stochastic techniques applied to input uncertainties in the assessment of hydrate prevention strategies, in a multiphase tie-back of an infill well to an existing system. 4 CASE STUDY 3 - HYDRATE MANAGEMENT OF AN NEW OIL WELL TIEBACK TO AN EXISTING FACILITY 4.1 Introduction Stochastic techniques were applied to investigate feasible hydrate management strategies, for a new infill well to be tied back to an existing deep-water (approximately 1400m) production system, via a 1 km flexible pipeline with an internal diameter of 12cm. Figure 10 shows a schematic of the system with the new well highlighted: Figure 10: A schematic of the production system with the new well indicated The relatively high U value for the flexible of 4.8W/m 2 /K gives a short cooldown time. This combined with the volume of the flexible, presented economic and operational issues with the use of conventional methanol (MeOH) displacement (i.e. large volumes would be needed frequently). Therefore, it was deemed necessary to investigate whether there was a better approach for the operation of the flexible and well, that would improve the operability and the economics of the new well. Therefore, alternative strategies were studied, alongside MeOH displacement, using thermodynamic modelling of the system in Maximus combined with stochastic techniques. The following hydrate management strategies were investigated: MeOH displacement

Hydrate remediation through depressurisation from each end of the flexible MeOH displacement or hydrate remediation (combined risk based approach) MeOH dosing (continuous) Anti-agglomerate / LDHI dosing (continuous) No hydrate prevention with abandonment upon blockage 4.2 Methodology LoF modelling was used to assess the thermal behaviour and performance of the new infill well incorporated into the existing network, to allow calculation of blockage risk and revenue throughout operation of the well. As is common with production wells, the watercut and water flowrate were shown to increase rapidly over the first 2 years, approaching an asymptote over the remaining life. Over the same time the oil flowrate decreased. 4.2.1 Heat transfer and hydrate weight calculation To model the amount of hydrate formed in the 1 km tieback during a restart from an unplanned shutdown, Multiflash was used in a simple Maximus model to characterise the composition for a GOR of 620scf/stb at an isobaric pressure, P, of 120 bara. Watercuts from 1% to 95% and temperatures from 4 C to 20 C, using water salinity of 3.5wt%, were modelled. For modelling flowing conditions, both relationships of hydrate weight with temperature and enthalpy change with temperature are required. The approach taken to develop these relationships is described in the following sections. 4.2.1.1 Assumptions Pipe is considered to be isobaric, as the variation of mixture enthalpy with pressure doesn t change significantly at pressures above 100 bara All the hydrates formed accumulate into one cylindrical plug during restart (conservative) Hydrates have no insulation effect (conservative) A >1m plug can block a pipeline (input into the model as a normal distribution). The fluids and wall are at thermodynamic equilibrium No hydrate kinetics are considered Figure 11: Hydrate weight (%) against watercut (%) at varied temperatures ( C)

4.2.1.2 Hydrate weight with temperature Using Multiflash in a Maximus model, the hydrate weight (%),, was calculated for a range of temperatures and a fit was produced, using equation 7, for each of the watercuts. 7 Where: T = Temperature, n, & are fitting parameters 4.2.1.3 Temperature of fluid with time & position Also using Multiflash, results for specific enthalpy change from 4 C, allowed a relationship to be fitted for each of the watercuts using equation 8. Where: = Specific enthalpy, = fitting parameter 8 The relationship given by equation 8 was then used to model the temperature of the fluid with time and position, using equation 9. Change in Enthalpy of a 50m length of fluid from (i-1, t-1) to (i, t) = Heat lost by a 50m length of wall at position i from time t-1 to time t Where: ( ) ( ) 9 t = Time step, i = Position, T = Temperature, = Mass of a 50m long wall section, = Specific Heat capacity of wall, = Mass of a 50m long fluid section, = Coefficient (from Equation 8) The above hydrate mass formed and pseudo-transient heat transfer calculations were incorporated into a spreadsheet model, along with the economic and statistical inputs described below. 4.2.2 Economic Modelling To assess the hydrate management strategies relative to each other, an economic Excel LoF model of the system was set up with monthly time steps. Key inputs of the economic model were: 1. Global economic inputs that affect the LoF as a whole (i.e. discount rate, $/bbl, well cost, flexible cost, abandonment cost, kinetic hydrate inhibitor (KHI) cost, KHI concentration, MeOH cost and MeOH concentration) 2. Specific inputs as probability distributions (i.e. critical hydrate plug length, number of shutdowns, abandonment cost and shutdown length) The uncertainties in the specific inputs (i.e. 2. above) were represented as PDFs fitted to data. Weibull distributions were fitted to the historic operational shutdown data (see

Figure 12) and normal distributions were fitted to the other two. The resulting PDFs were sampled in a Monte Carlo simulation to produce model input values for each Monte Carlo case. Figure 12: In the left panel, distribution for the frequency of unplanned shutdowns; in the right panel, distribution for the length of unplanned shutdowns. 50,000 samples were performed in the Monte Carlo simulations, for each of the 6 hydrate management strategies considered. The outputs of the Monte Carlo simulations were probability distributions, discussed below, of the economic and operational risk for each strategy. 4.3 Results and discussion From the Monte Carlo simulation, output probability distributions for blockage risk, abandonment date, number of blockages and overall NPVs were produced for each strategy. Figure 13 demonstrates that MeOH displacement is economically favoured but, given operational constraints, it might not be operationally possible. Figure 13: NPV comparison of hydrate management strategies

Figure 14 shows an example of the output of hydrate blockage risk, with the highest period of risk being from approximately the end of year 1 to the end of year 5. In the first few months of operation there is no risk of hydrate blockage (no water present) and after about year 7 the risk of blockage is minimal. Figure 14: Hydrate blockage risk period This investigation method provides a relative comparison of strategies. The stochastic investigation showed that the strategy of hydrate remediation (allowing blockages to occur then removing them via depressurisation) has a 90% probability that approximately 75% of the maximum NPV is still achieved. For this strategy, during the highest risk period, there is only a 20% risk of hydrates forming. Therefore, a combination of the MeOH displacement and hydrate remediation strategy was recommended by FEESA - i.e. a conventional MeOH displacement strategy during early to midlife, (whilst there is a higher blockage risk, as shown in Figure 14) followed by a hydrate remediation strategy in later life (during the low risk periods) when the high watercut could create operational difficulties using displacement. This strategy was shown to have an NPV close to the strategy of using MeOH displacement only. The above LoF Maximus and stochastic investigation: 1. Showed hydrate remediation is a feasible alternative to solely dosing or displacing 2. Showed MeOH displacement is still economically favoured in this case, but might not be operationally possible 3. Showed there is a 90% probability that circa 75% of NPV achieved with remediation 4. Allowed the client to: a. Better understand their hydrate risks b. Perform detailed economic analysis of the options c. See the benefits of improved MeOH sparing on the FPSO

5 CONCLUSIONS Three marginal production system conceptual design case studies have been presented as follows: a. Handling reservoir uncertainty for a multiple oil well deep water production system b. MEG optimisation of a large wet gas network c. Hydrate management of an new oil well tieback to an existing deep water facility The case studies demonstrate the benefits to projects and operations from combining stochastic techniques, with multiphase LoF network simulation in such scenarios. The stochastic methods allow uncertainty in input data of various kinds (reservoir, measurement and operational uncertainties) to be handled. The handling of input data uncertainty, in turn, results in quantification of the output uncertainty, moving it away from the apparent certainty that is often implicit in oil and gas production system conceptual design presentation. The handling of uncertainty in this way results in designs which are not over conservative, a factor which is becoming increasingly important in designs for economically marginal developments. REFERENCES (1) M. J. Watson, N. J. Hawkes, E. Luna-Ortiz, Application of advanced chemical process design methods to integrated production modelling, 15 th International Conference on Multiphase Production Technology, Cannes, France, June 15 17, 2011 (2) Multiflash for Windows, Version 3.5, Infochem Computer Services Ltd, February 1 2006. (3) S. Manivannan, Taguchi Based Linear Regression Modelling of Flat Plate Heat Sink, J Eng & App Sci, Vol 5, Issue 1, 36-44, 2010 (4) M. Montini, A. Humphrey, M. J. Watson, A. E. Johnson, A Probabilistic Approach To Prevent The Formation Of Hydrates In Gas Production Systems, 7 th ICGH, Edinburgh, Scotland, UK, July 17-21, 2011 (5) Hammerschmidt EG. Formation of gas hydrates in natural gas transmission lines. Ind. Eng. Chem. 1934; 26:851-855.