Petroleum operations demand
advanced scientific technology and huge investment capital. This operation may
bring high profits, but with huge risks and in some cases lead to loses.
Because of the high commercial value and profits from crude oil, contractors
still accept risks when entering this operation.
In some cases, during the oil
field development execution, through the estimation of the field development
economic efficiency model, contractors may face with the risks of loses because
of high investment costs, and economic efficiency rate is lower than expected.
Thus, the commencement of the operation may be prolonged by contractors. One of
the solutions to solve this problem is to reduce the investment costs as much
as possible by applying old technology, and deduction of equipment costs.
In the oil field development,
economic efficiency is based on the field reserve and production profile for
both oil and gas. And the investment for a gas pipeline system to transport to
onshore shall only be considered if the gas field reserve has commercial value;
otherwise, contractors shall cut off the investment for export gas facility
system. Gas extracted during oil production shall be used as fuel gas, gas
lift, gas injection and flaring.
Environmental issue in oil and
gas exploration and production operations in recent years became big problem
that all governments who proceed these operations in the world should be
concerned. Regulations for environment protection, usage of natural resources
have been closely amended, especially the Provision of prohibited gas flaring in
the Law on Petroleum ratified by Vietnam Parliamentary. Because of this
Provision, in the oil field development plan, contractors must consider method
for export gas in the field equipment system. These results in the increase of
investment may become an obstacle in the field development execution by
contractors.
Environment protection is not
only the contractor’s responsibility but also the government Vietnam, namely
PetroVietnam, a state owned enterprise involved in petroleum operations.
Furthermore, PetroVietnam should find the right way to speed up the execution
of the field development.
The right way to settle the
prolongation of field development in such case is the participation of owner’s
enterprise in the construction of the gas gathering pipeline system by method
of cost sharing, integrating the gas gathering pipeline system project with the
oil field development project. Pham
Minh Nga made a case study which focus were the following subjects:
1. Description of Oil Field
Development process and its issues.
2. Integration necessity of gas
gathering system in oil field development project.
3. Solution chosen to execute the
integration.
Conclusion and Recommendation
The petroleum operation has complexity and requires
advanced scientific technology marvels with high investment costs, especially
the offshore oil exploration and production activities. This is the operation
that brings to the operator huge economic profit from the high oil commercial
value. However, the economic efficiency of this activities depend much on the
field development planning relating to the execution of interactive activities
in all stages from exploration, drilling
and production operations, reservoir engineering and well logging, and enhanced
oil recovery. An Oil Field Development
Plan should be formed and appraised based on the objectives: acceptable
technical technology, economic efficiency, appliance to international practices
in enhanced oil recovery optimism, conformity with Regulations of Law on
environmental protection, and preservation of natural petroleum resources.
Nowadays, Regulations of Laws on petroleum operation have
been amended and supplemented to conform to the realistic requirements for
environment, resources preservation, technology application, enhanced oil recovery optimism, those which,
both the owners’ body and contractors must be followed. Besides, the owner’
enterprise should have responsibility to instruct contractors in the execution
and find method to resolve problems with the purpose of encouraging contractor
in promoting the oil field development. The participation of the owner’s
enterprise in coordination with contractors in the execution of FDP is an
important factor to contribute to the success of the FDP.
With the example of this case study, Integrating Gas
Gathering Facility Project in Oil Field Development Project, it has been
realized that this is a reasonable solution for speeding up the Offshore Oil
Field Development which is similar to HST-HSD and TGS Oil Field Development
Projects in Bach Ho Basin.
It is of a realistic proof that the alternative is the
best solution for Projects in the area which have like circumstances and
condition, but it may be defect and in-economic if it is applied in various
projects without careful consideration. Therefore, finding out an acceptable
solution for resolving any issue or problem, it should be decided based on the
reality and overall analysis and evaluation.
Abstract
In many decades, crude oil and natural gas have become
essential energy resources in the industrial development of all countries in
the world. It has been enormously forcing the development of petroleum
operations. The life cycle of petroleum operations includes exploration and
development, production, refining, marketing, transportation distribution to
the end-user, and final utilization. New scientific technologies have been
increasingly applied in all life cycle of petroleum operations.
Even though petroleum operations have been based on solid
scientific excellence and engineering marvels, only recently has it been
discovered that many of the practices are not environmentally sustainable.
Practically all life-cycle activities of hydrocarbon operations are accompanied
by undesirable discharges of liquid, solid, and gaseous wastes, CO2 emission by
gas flaring which have an enormous impact on the environment. For example, during drilling, water-based
drilling muds and cuttings are discharged overboard, whereas during production,
the major discharge is produced water.
The ecological impacts of these discharges, including habitat
destruction and fragmentation in both terrestrial and aquatic environments, are
now recognized as major concerns associated with petroleum and natural gas
developments. Consequently, reducing environmental impact is the most pressing
issue today and many environmentalist groups are calling for curtailing
petroleum operations altogether. By developing new technologies that guarantee
sustainability in hydrocarbon operations, these problems have been solved in
environmentally acceptable, economically profitable, and socially responsible
manner.
Besides, petroleum operations must be commenced in
conformity with the Law and Regulations relating to the economical usage of all
natural resources. Thus, either enterprises or contractors involved in
petroleum operations have great responsibility for the planning, appraisal,
approval or commencement of oil field development project in compliance with
the regulations of environment, technology, preservation and economical use of
petroleum.
With this study, an acceptable solution for the
integrating the Gas Gathering Pipeline System with Block 16-1 Te Giac Trang and
Block 15–2/1 Hai Su Trang - Hai Su Den Offshore Vietnam Field Development
Project have been chosen to undertake with the purpose of encouraging the early
development of such offshore Oil Fields and commencing the economical use of
associated gases.
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