PetroJournal - February 2019

PETRO JOURNAL

FEBRUARY 2019 EDITION JOURNALISM SPE ITS SC 2018/2019

Monthly Recap

Flash News

Company Profile

Flash Course Competition Info

INDEX

BENCHMARKING WITH SPE UGM SC

Benchmarking with SPE UGM SC. The event took place at Chemical Engineering O-102.

MONTHLY RECAP

SOFT SKILLS "EVENT ADVENTURE"

Soft Skills Division, “EVENT ADVENTURE" with our speaker Rizal Hidayat F., Petrolida 2018 Project Officer.

The event held at class O-103 Chemical Engineering ITS The discussions that had been given are: - How to concept an event - Common challenges in organizing an event - How to manage people working in your event - Tricks to handle unpredictable situations in event organizing

MONTHLY RECAP

GUEST LECTURE SPE ITS SC 2018

Guest Lecture “Geothermal Energy" with our speaker Riki Irfan S.T., M.Si. The event held at Geomathics Engginering GM 103-104.

MONTHLY RECAP

FLASH NEWS

Offshore Drilling Moving Out of Shale's Shadow

By David Wethe and Rachel Adams-Heard | Rigzone Staff|

After years in the shadow of the U.S. shale patch, deep-water explorers from Royal Dutch Shell Plc to Talos Energy Inc., along with contractors such as Ensco Plc and TechnipFMC Plc, told investors at the Scotia Howard Weil Energy Conference in New Orleans this week they see a revival coming. That was a stark contrast to a subdued outlook for shale at the event.

“The offshore recovery is under way today,” Jon Baksht, chief financial officer at Ensco, told investors Tuesday at the conference. “This isn’t something that we’re waiting for.”

While U.S. shale remains a global hot spot, with multibillion-dollar investment plans from supermajors Exxon Mobil Corp. and Chevron Corp., independent producers have been under pressure from investors to focus on delivering returns rather than ambitious growth plans. At the same time, after nearly half a decade of consecutive spending cuts, the offshore industry is expected to finally boost spending again to develop higher-gushing oil wells.

FLASH NEWS

Offshore Guyana Hess Corp., which has assets in shale and in offshore, made the starkest contrast between the two basins during the conference when Chief Executive Officer John Hess showed a slide about what it would take to get the same amount of oil from the world’s busiest shale patch, the Permian Basin of West Texas and New Mexico, versus Guyana, one of the biggest discoveries of its kind offshore.

To suck out the equivalent of 120,000 barrels of oil a day, the Permian Basin would need a $12.8 billion investment compared to $3.7 billion for the first phase of the Liza section of the Guyana project, in which Hess is teaming up with Exxon.

Offshore capital spending has been cut in half since oil prices first started to fall in 2014. This year explorers and producers are expected to boost offshore spending 3 percent to $155 billion and another 10 percent next year, according to Ensco slides on Tuesday. That compares to a double-digit drop in spending in North American land this year, Schlumberger Ltd. and Halliburton Co., two of the biggest providers of oil services, told investors on Monday.

Tim Duncan, CEO of deep-water explorer Talos Energy Inc., considers himself a contrarian for wading farther into the Gulf of Mexico when others were flocking to the Permian, which straddles Texas and New Mexico.

“Investors are thinking about being basin-agnostic again, and that at least gives us the opportunity to reintroduce the Gulf of Mexico,” Duncan said Tuesday in an interview in New Orleans. “It’s allowing investors to just rethink under a new lens how they view offshore, and we have to take advantage of that opportunity.”

Oil Auctions Fracking shale rock for oil and gas can be done in a matter of months. But it may take years to develop a deep-water area, and before any rigs can start drilling, governments around the world need to auction exploration and production permits. Those auctions have been more frequent lately.

“Take a look back from when we were at this conference one year ago today and we’re up 25 percent just in terms of the number of open tenders that are out there year over year,” said Baksht of Ensco, which is poised to become the world’s biggest offshore rig contractor if its merger with Rowan Cos. closes later this year. “We are seeing that increase in spending and increased activity in the offshore space today.”

FLASH NEWS

So much so that for the first three months of this year, equipment maker TechnipFMC is expecting a quarterly record for inbound orders of subsea gear, an historical proxy for offshore activity because all wells away from land need the valves and pumps that sit on the seafloor.

The return to offshore activity is just a start, though. It’s not a full-fledged boom. There is still a glut of older, unused rigs keeping drilling contractors from having widespread pricing power for pushing up the rents on their vessels.

But for Diamond Offshore Drilling Inc. CEO Marc Edwards, simply hearing of spending hikes from other large explorers such as Equinor ASA and Petroleo Brasileiro SA was critical to realizing better days are ahead.

"Their exploration budgets are significantly moving north," he said. “That’s the first sign of recovery we needed in the offshore space.”

Source: https://www.rigzone.com/news/wire/offshore_drilling_moving_out_of_shales_shado w-28-mar-2019-158477-article/

COMPANY PROFILE

SAUDI ARAMCO Saudi Aramco is an integrated energy and chemicals company. The Company is engaged in the exploration, production, refining, distribution, shipping, and marketing of hydrocarbons, production of petrochemical products, and production and export of crude oil and natural gas liquids. Saudi Aramco traces its beginnings to 1933 when a Concession Agreement was signed between Saudi Arabia and the Standard Oil Company of California (SOCAL). A subsidiary company, the California Arabian Standard Oil Company (CASOC), was created to manage the agreement.

The work began right away. After surveying the Saudi desert for oil, drilling began in 1935.

PHOTO: https://www.middleeastmonitor.com

Now named Aramco (the Arabia American Oil Company), their crude oil production hit 500,000 barrels per day in 1949.

Their rapid increase in oil production meant we had to expand our distribution efforts as well. In 1950, they completed the 1,212-kilometer Trans-Arabian Pipeline (Tapline) — the longest in the world. The Tapline linked eastern Saudi Arabia to the Mediterranean Sea, sharply cutting the time and cost of exporting oil to Europe. And after two years of exploration in the shallow Arabian Gulf waters, they discovered the Safaniyah field in 1951. It proved to be the world’s largest offshore oil field. And in 1958, Aramco’s crude oil production exceeded 1 million barrels in a calendar year.

In 1980, the Saudi government increased its interest in Aramco to 100%. Eight years later, the Saudi Arabian Oil Company (Saudi Aramco) was officially established — a new company to take over all the responsibilities of Aramco, with His Excellency Ali I. Al-Naimi becoming our first Saudi president in 1984, and the first Saudi president and CEO in 1988.

COMPANY PROFILE

The following year, Saudi Aramco began its transformation from an oilproducing and exporting company to an integrated petroleum enterprise, with the formation of Star Enterprises in 1989 — a joint venture with Texaco in the United States. This would evolve to become Motiva, initially a partnership with Texaco and Shell, which in 2017 progressed to Saudi Aramco being the sole owner of North America’s largest single-site crude oil refinery at Port Arthur, Texas.

Their expansion continued in 1994 when they acquired a 40% interest in Petron Corporation, the largest crude oil refiner and marketer in the Philippines. And then again in 1996, when they made several more overseas investments in Europe by purchasing 50% in privately held Greek refiner Motor Oil (Hellas) Corinth Refineries S.A., and its marketing affiliate, Avinoil Industrial Commercial and Maritime Oil Company, S.A.

PHOTO: https://www.saudiaramco.com/en/who-we-are/overview/our-history

In 1997, they developed POWERS (Parallel Oil-Water-Gas-Reservoir Simulator). A high-resolution reservoir simulator that models and predicts the performance of super-giant reservoirs, POWERS was so successful that it went on to inspire a range of more powerful and precise Saudi Aramco simulation software.

Witnessing the advantages of technological advancements firsthand, in 2000 they built a state-of-the-art Research and Development Center (R&DC) in Dhahran for our scientists. They used this work as the foundation for a network of research centers across the world, which to this day are working on breakthroughs to increase discovery and recovery, reduce costs, enhance safety, and protect the environment.

COMPANY PROFILE

PHOTO: https://www.saudiaramco.com/en/who-we-are/overview/our-perspective

Over 80 years of access to largely conventional petroleum reserves, combined with the application of leading industry and proprietary technologies, gives us the ability to consistently drive high value at low cost and to operate efficiently across high demand product segments.

They produce five different grades of crude oil. These are: Arabian Heavy, Arabian Medium, Arabian Light, Arabian Extra Light, and Arabian Super Light.

PHOTO: https://www.saudiaramco.com/en/who-we-are/overview/our-history

Providing domestic customers with gas as a source of energy and as a feedstock has other advantages; it allows them to free up more crude oil for export and other high value applications. Over the years, they have built a comprehensive gas infrastructure. The Master Gas System - an extensive network of pipelines and processing facilities - connects their key gas production sites with demand centers throughout the Kingdom. In addition, our oil and NGL export terminals serve as the launch point for supplying NGL to consumers around the world.

COMPANY PROFILE

Since entering the chemicals business in 1998, they have sought to maximize the value of every hydrocarbon molecule they produce and have created a diversified portfolio of non-oil revenue streams for the company.

As today’s fastest growing crude oil demand sector, chemicals presents considerable opportunities for future growth and long-term value creation.

Their chemicals business currently spans the production of basic chemicals such as aromatics, olefins, and polyolefins to more complex products such as polyols and advanced synthetic rubber. Their chemicals products are found in the many of the items we use every day and serve the needs of industries such as packaging, automotive, footwear and appliances.

PHOTO: https://www.venturesonsite.com/news/

By combining chemicals production with our domestic and international refineries, they have created a globally integrated refining and petrochemical network that creates resilience in times of crude oil price volatility, secures dedicated outlets for our crude oil in strategic growth markets, and allows us to control and optimize costs across the entire supply chain from the well-head to customers. It includes joint ventures with some of the industry’s leading companies, including DowDuPont, ExxonMobil, Lanxess, Shell, Sinopec, Sumitomo and Total.

Source: https://www.saudiaramco.com/en/who-we-are/overview

FLASH COURSE

What are MOPUs and FPSOs? MOPUs A Mobile Offshore Production Unit is any type of portable structure that can be reused when procuring oil and gas from the seabed. These are typically used when the depth of drilling is over 500m. If the water is any shallower, then fixed platforms are constructed.

The MOPU classification includes all types of FPSO vessels, as well as spar and tension leg platforms, jack-ups, semi-submersible production units, and production barges.

FPSOs A Floating Production, Storage, and Offloading vessel is a ship used to process and store oil and gas. These vessels are moveable platforms, but unlike some other MOPUs are usually housed in tankers. This makes them perfect for taking advantage of fields with shorter life expectancies, and for moving between smaller sites.

FPSOs are often moored by using central or spread mooring – single mooring lines or multiple – and can operate in any depths, including ultra-deepwater (3km+).

Whilst not strictly FPSOs, similar vessels include FSOs (storage and offloading), FPSs (production), FSUs (storage), FLNGs (LNG fuels), FSRUs (regasification), and FDPSO (drilling, production, storage, and offloading).

SPARs SPAR platforms are floating oil platforms which use long cylindrical buoys to remain afloat. They are most common in the Gulf of Mexico.

- There are three types of SPAR platform: classic, featuring a large upright cylindrical hull; truss, which included an open truss section at the bottom of the hull; and cell, made up of seven hollow tubes.

- There was ever only one cell SPAR, Red Hawk, which was decommissioned in 2014 after ten years of production.

- The world’s first SPAR was Neptune, built in 1997 in the Gulf of Mexico by Anadarko – to a depth of just over 500m - Shell’s Perdido, built in 2010, is the deepest SPAR in the world, moored at a depth of 2,450m.

FLASH COURSE

Tension leg platforms Tension leg platforms, or TLPs, are buoyant platforms kept stable by hightension moorings, or tendons. They are also sometimes included in the fixed platform group due to their tight moorings functioning almost as rigid legs.

These moorings link the hull to a template affixed to the sea bed. Most TLPs feature a hull kept buoyant by four air-filled columns, much like a semisubmersible.

- The first TLP to be constructed was ConocoPhillips’ Hutton, installed in the North Sea in 1984.

- The world’s deepest TLP is Chevron’s Big Foot, moored at a depth of just over 1,500m in the Gulf of Mexico. Big Foot became operational in 2014.

- Typical platforms boast a surface facility of around 6,000m², a staff complement of up to 100, and a production maximum of around 150,000 BPD oil, and 400 MMscfd gas.

- TLP tendons are usually 1m-diameter 3-inch steel tubes, and there are at least 10 tendons per platform.

Jack-ups Whilst more common as MODUs (Mobile Offshore Drilling Units), jackup rigs are also a type of MOPU. These platforms do not float, but feature self-elevating legs which extend downwards, raising the main body of the vessel above sea level once the legs hit the seabed.

This provides a mobile and stable shallow water source of production.

- Jack-ups can feature open-truss legs or columnar legs – the latter of which are cheaper to manufacture, but less stable. Columnar-legged jack-ups are therefore only used in depths of less than around 75m.

- Jack-ups can be moved, retrofitted, and properly prepped for production far quicker than site-specific structures, and are often converted from older vessels.

FLASH COURSE

Semi-submersibles Semi-submersible platforms are the most stable floating MOPU, and have hulls that are partially submerged when in position. There are two main types: bottle – consisting of bottle-shaped hulls that are submerged to the ocean floor, and column – consisting of two horizontal columnar hulls that are only submerged a few metres below the water line, and then moored to the sea bed with mooring lines. The latter type is more stable, and the more recent advancement.

- The first semi-submersible was the Argyll FPU, converted from a MODU in 1975 and operating at a depth of 150m in the North Sea. - Anadarko’s Independence Hub, installed in the Gulf of Mexico in 2007, is the world’s deepest operational semi-submersible – producing fuel whilst moored in seas nearly 2.5km deep.

Source: https://www.oilandgasiq.com/fpso-flng/surveys/fpso-2019-the-state-of-themarket-survey

GOOD LUCK DELEGATES

"It is better to fail in originality than to succeed in imitation.�

Herman Melville

PHOTO: OILANDGASPEOPLE

The process of oil drilling begins with a drill cutting through the earth, allowing air to be pumped downwards, and once the oil is hit, it rushes to the surface and can shoot dozens of meters out of the ground

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