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South Sudan Petroleum Engineers
This page serve as the platform where Petroleum Engineers and Geoscientists share knowledge.
Oil and Gas Contracts.
Oil and gas contracts are the backbone of the energy industry. They provide a legal framework for the exploration, extraction, and transportation of oil and gas resources. Oil and gas agreements are complex documents but are vital for governing the rights, obligations, and responsibilities of all parties involved. They play a key role throughout the process of oil and gas production, including the marketing of the resources.
Oil is a valuable national asset that cannot be underestimated or left without a specific and clear legal framework, as it is no secret to anyone that it could have positive impacts on the economic and social arenas. It is the main income for almost every producing countries, and there is no other equivalent for their national economy. The majority of oil-producing countries depend on it at a rate ranging between 95% and 98%
In extractive industries, the contracts define the relationship between the state and the companies operating in this sector, in addition to the rights and duties of each party. It highlights plans for exploration, extraction and production, financial conditions, consequences of waiving the exercise of the petroleum right, methods of keeping records and accounting…etc.
There are three types of these contracts in this sector, which are concession contracts, production sharing, and service sharing contracts. Each type of contract has characteristics that distinguish it from other types of contracts. each type is further divided into subtypes which are not going to cover here.
Concession Contract
The government grants concessions to a company or companies to work in a specific sector, such as oil exploration in a specific geographical area.
The rights to the natural resources belong to the concessionary trading company(s). These companies fund all exploration, development and production operations.
Usually, in this type of contract, the state’s profits consist of a specific percentage of royalties and taxes, in addition to social taxes and bonuses. If the state participates through its national companies, the company’s share of the profit oil is added to its profit.
Production Sharing Contract
Ownership of natural resources belongs to the state. Companies have the exclusive right to exploration, development and production.
In this type of contract, companies bear the cost of exploration, development and production, and recover their investments later from the oil they extract and export. Then, companies share the profit oil with the state according to a previously agreed upon formula.
The state’s profits in general consist of its share of the profit oil, royalties and taxes.
This type of contract is common in the oil sector and is rare in the gas sector and is not applied in the mining sector.
Services Contract
Natural resources are under state ownership. It concludes an agreement with companies to provide specific technical services, such as exploration work, construction work, transportation…etc.
The state keeps the resources it produces and pays companies for their services, either in cash or a commodity, such as oil or other types of commodities.
These types of contracts are rare and are adopted by countries, such as Saudi Arabia, Kuwait and Iran.
Each contract includes axes in which the duties and rights of each of the companies and the state are refuted, namely: technical, commercial, social, environmental, production and obligations.
Technical Hub:
The technical axis revolves around the exploration plan, the geological systems for petroleum proposed by the right holder, the potential reservoirs, their depth and number… etc. This includes the companies’ obligations and the time, geological and practical plans for extracting oil from sea or land.
Commercial Hub:
This axis highlights and defines the method of calculating the profits of the rights holders and the state from oil production.
Social Hub:
This axis highlights the obligations of the rights holders towards the community in terms of employment, training, financial assistance, and financing activities beneficial to the host community, this axis should be understood well by those who are working in oil and gas industry in South Sudan, especially those in legal department and petroleum economic department as per the current situation of our country.
Environmental Axis:
This axis highlights the laws, rules and requirements that rights holders must respect and implement to protect the environment and public safety, the producing state must be very keen on how oil and gas waste are being treated and disposed .
“Establishing a proactive culture of commitment to health, safety and environmental values among all workers involved in petroleum activities.”
Note:
This is just brief public lecture and if you want to read more, please don't hesitate to go through Petroleum economic. You will get more than this.
Thanks
# . Samuel Apachdit Aka Samuel Mabor Mading.
06/05/2024
Meet our Event & Project Manager, Rachelle Kasongo, in Juba next week to discuss your attendance and participation at the upcoming South Sudan Oil & Power Conference set to take place from June 25th to 28th. Just over 7 weeks away! 🇸🇸
Reach out to schedule a meeting between May 5th and May 10th. Contact [email protected].
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06/05/2024
Bit Selection For Drilling Oil & Gas Wells Guide & Hints - DRILLING MANUAL |
Bit selection is a critical aspect of drilling oil and gas wells, as it directly impacts the efficiency and success of the drilling operation. The right balance between durability and rate of pe*******on (ROP) must be achieved to ensure optimum performance. Selecting a bit that offers the desired balance can help avoid catastrophic failures and ensure the bit can maintain the gauge hole. Additionally, the chosen bit should be responsive to directional drilling requirements and have a cutting structure that can withstand variations in formation character and drilling parameters. Effective bit selection is an economic issue, as poor choices can result in increased costs.
To guide the bit selection process, it is important to define the objective of the application and gather relevant data from similar applications. Analyzing actual performances of different bit types and assessing geological data can help establish a performance baseline. Various factors are considered in bit selection, including the lithology of the rocks being drilled, the directional demands placed on the bit, and the interval that the bit needs to drill. Other factors such as mud type and the need for reaming also play a role in the selection process. By considering these factors and evaluating the probable cost per foot, the most suitable bit can be chosen for the drilling operation.
Read More: https://www.drillingmanual.com/bit-selection-for-drilling-oil-gas-wells-guide-hints/
Free PDFs:
Download free books on drilling and related topics from the Drilling Manual Telegram channel at https://t.me/drillingmanual2
Learning Videos:
Watch educational videos on drilling techniques, equipment, and more on the Drilling Manual YouTube channel at https://bit.ly/3pKS5dd
06/05/2024
DRILL STEM TESTING (SRO)
The Drill Stem Test (DST) plays a pivotal role in prospect evaluation and subsequent field development planning. Therefore, it is imperative to acquire reliable, high accuracy downhole pressure and temperature data in a timely manner in order to allow the reservoir evaluation to be conducted without introducing additional uncertainty or delay.
Acoustic Data's SonicGauge ™ Wireless Monitoring System delivers surface-read-out (SRO) of downhole pressure and temperature data in real-time via acoustic telemetry transmitted through the tubing. Access to real-time reservoir response data allows live analysis of the well test, leading to fast and informed decision making at wellsite or remotely via satellite or cellular communication. In turn, this decreases risk, rig time and lost production. Multiple SonicGauge wireless downhole gauges can be deployed along the test string to capture high accuracy, flowing and shut-in pressure and gradient data.
Credit to Eng. Ali Al Diwan
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12/10/2023
Drilling:
Introduction to Oil&Gas Well Drilling
The term drilling indicates the whole complex of operations necessary to construct wells of circular section applying excavation techniques.
To drill a well it is necessary to carry out simultaneously the following actions (drilling process):
1- To overcome the resistance of the rock, crushing it into small particles measuring just a few mm.
2- To remove the rock particles, while still acting on fresh material.
3-To maintain the stability of the walls of the hole.
4- To prevent the fluids contained in the drilled formations from entering the well.
This can be achieved by using rotary drilling rigs which are the ones operating today in the field of hydrocarbons exploration and production.
The drilling rigs are complexes of mobile equipment which can be moved (onshore and offshore) from one drill site to another, drilling a series of wells.
In rotary drilling the rock is bored using a cutting tool called the bit, which is rotated and simultaneously forced against the rock at the bottom of the hole by a drill string consisting of hollow steel pipes of circular section screwed together.
The Drilling Process:
The cuttings produced by the bit are transported up to the surface by a drilling fluid, usually a liquid (mud or water), or else a gas or foam, circulated in the pipes down to the bit and then to the surface.
The rotation is transmitted to the bit from the surface by a device called the rotary table or, in the modern rigs, by a top drive motor with the rotary table as backup; additional rotation can be added by downhole motors located directly above the bit.
After having drilled a certain length of hole, in order to guarantee its stability it has to be cased with steel pipes, called casings, joined together by threaded sleeves.
The space between the casing and the hole is then filled with cement slurry to ensure a hydraulic and mechanical seal.
The final depth of the well is accomplished by drilling holes of decreasing diameter, successively protected by casings, likewise of decreasing diameter, producing a structure made up of concentric tubular elements.
Planning the drilling of a well
The planning of a well is a fundamental part of the drilling process – it is the basis for making all the important technical choices, for assessing the costs and organizing the actual construction of the well in the most efficient way.
The well planning starts the moment when the interpretation of the seismic data and the reconstruction of the geology of the area reveal the presence of a structure favourable to the accumulation of hydrocarbons.
27/09/2023
The electrical submersible pump, typically called an ESP, is an efficient and reliable artificial-lift method for lifting moderate to high volumes of fluids from wellbores. These volumes range from a low of 150 B/D to as much as 150,000 B/D (24 to 24,600 m3/d). Variable-speed controllers can extend this range significantly, both on the high and low side. The ESP’s main components include:
Multistaged centrifugal pump
Three-phase induction motor
Seal-chamber section
Power cable
Surface controls
The components are normally tubing hung from the wellhead with the pump on top and the motor attached below. There are special applications in which this configuration is inverted.
Below is the the indication of the ESP components.
25/04/2023
Water Alternating Gas (WAG) is an enhanced oil recovery (EOR) technique that has gained widespread use in the petroleum industry. The technique involves injecting water and gas in alternating cycles into an oil reservoir to increase the amount of oil that can be extracted. WAG is particularly useful in mature oil fields where the natural pressure of the reservoir has declined, making it more difficult to extract oil using conventional methods.
The WAG process involves injecting water first, which helps to displace the oil in the reservoir towards the production wells. The water injection reduces the mobility of the gas, thereby improving its displacement efficiency. The gas injection follows the water injection, and it helps to sweep the remaining oil towards the production wells. The alternating injection of water and gas helps to maintain the pressure of the reservoir and reduce the oil viscosity, thereby increasing the amount of oil that can be extracted.
The WAG process has several advantages over conventional oil recovery methods. Firstly, it reduces the mobility of the injected gas, which increases its displacement efficiency. Secondly, it improves the sweep efficiency of the reservoir, thereby increasing the amount of oil that can be extracted. Thirdly, it helps to maintain the pressure of the reservoir, which reduces the risk of subsidence and other geological problems associated with oil extraction.
However, the effectiveness of the WAG process depends on several factors, including reservoir permeability, heterogeneity, and the properties of the injected fluids. Therefore, reservoir simulation studies are necessary to determine the optimal injection rate and ratio of water to gas for a given reservoir. The simulation studies involve creating a computer model of the reservoir and simulating the injection of water and gas to determine the best injection rate and ratio.
In conclusion, the Water Alternating Gas (WAG) technique is a useful enhanced oil recovery (EOR) method that has gained widespread use in the petroleum industry. The technique involves injecting water and gas in alternating cycles into an oil reservoir to increase the amount of oil that can be extracted. While the WAG process has several advantages over conventional oil recovery methods, its effectiveness depends on several factors, including reservoir permeability, heterogeneity, and the properties of the injected fluids. Therefore, reservoir simulation studies are necessary to determine the optimal injection rate and ratio of water to gas for a given reservoir.
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21/04/2023
What causes this problem.
15/04/2023
What causes this.
05/07/2022
1. Wellhead/Christmas Tree Parts and Components
2. The Difference Between a Wellhead and Christmas Tree
A Christmas Tree is an assembly of valves, spools, and fittings used for an oil well, gas well, water injection well, water disposal well, gas injection well, condensate well, and other types of wells. It is named for its resemblance to a decorate tree at Christmas.
Many times, the words Christmas Tree and Wellhead are used interchangeably; however, a wellhead and Christmas tree are entirely separate paces of equipment. A wellhead must be present in order to utilize a Christmas tree and is used without a Christmas tree during drilling operations. Producing surface wells that require pumps (pump jacks, nodding donkeys, etc.) frequently do not utilize any tree due to no pressure containment requirement.
Tree complexity has increased over the last few decades. They are frequently manufactured from blocks of steel containing multiple valves rather than made from multiple fl**ge valves.
The primary function of a tree is to control the flow into or out of the well, usually oil or gas.
A tree often provides numerous additional functions including chemical injection points, well intervention means, pressure relief means (such as annulus vent), tree and well monitoring points (such as pressure, temperature, corrosion, erosion, sand detection, flow rate, flow composition, valve and choke position feedback, connection points for devices such as down hole pressure and temperature transducer (DHPT).
What purpose does a tree serve?
•On producing wells, injection of chemicals or alcohols or oil distillates to prevent and or solve production problems (such as blockages) may be used.
•A tree may also be used to control the injection of gas or water injection application on a producing or non-producing well in order to sustain economic "production" volumes of gas from other well(s) in the area (field).•The control system attached to the tree controls the down hole safety valve (scssv,dhsv, sssv) while the tree acts as an attachment and conduit means of the control system to the down hole safety valve.
As you can see even on this Christmas Tree Diagram there are five valves. The Kill Wing valve, the Swab valve, the production wing valve, the upper master valve and lower master valve. When the operator, well, and facilities are ready to produce and receive oil or gas, valves are opened and the release of the formation fluids is allowed to flow into and through a pipeline. It is important to understand where these valves are located and what role they play in getting gas from the well bore to the customer.
Parts Defined
•The two lower valves are called the master valves
We hope this has helped you understand the difference between wellhead and Christmas trees better; however, if you have any questions feel free to contact us
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