OTC-30851-MS Flow Assurance Risks Impact on Kuwait Offshore Field Development Plans Eissa M. Al Safran, Kuwait University; Sara I. Al Ansari, Kuwait Oil Company Copyright 2020, Offshore Technology Conference This paper was prepared for presentation at the Offshore Technology Conference originally scheduled to be held in Houston, TX, USA, 4-7 May 2020. Due to COVID-19 the physical event was not held. The official proceedings were published online on 4 May 2020. This paper was selected for presentation by an OTC program committee following review of information contained in an abstract submitted by the author(s). Contents of the paper have not been reviewed by the Offshore Technology Conference and are subject to correction by the author(s). The material does not necessarily reflect any position of the Offshore Technology Conference, its officers, or members. Electronic reproduction, distribution, or storage of any part of this paper without the written consent of the Offshore Technology Conference is prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 words; illustrations may not be copied. The abstract must contain conspicuous acknowledgment of OTC copyright. Abstract Kuwait Oil Company (KOC) offshore exploration and development plans are underway to boost its production capacity to the future target rate. However, the selection of offshore field development scheme is critical due to the associated flow assurance risks, which impact project economics, safety, and sustainability. The objective of this study is to simulate and evaluate two offshore field development schemes, namely subsea multiphase flow, and platform schemes. The evaluation is based on the associated flow assurance risks, project economics, and environmental impact of each development schemes. The analysis covers simulation of each scheme, prediction of flow assurance risks, and prevention/mitigation of the risks during the entire life of the field. Results revealed that although the flow assurance risks in the subsea multiphase flow scheme are significant, it eliminates the large investment cost of platform, which improves the project economics significantly, and minimize environmental impact. Conversely, although the platform development scheme has low flow assurance risk, platform capital investment cost may impair the project economics, safety, and environmental impact. This study investigates each scheme by simulating, economically evaluating, and environmental impact assessing both schemes, to enable the right decision and selection of field development plan. Introduction Kuwait Oil Company recently expanded its exploration to cover its offshore oil fields, which requires an optimum integrated development plan to, economically, increase production capacity while maintaining human and environmental safety. Several offshore oil field (Fig. 1) were explored, but none was developed. While no offshore development in Kuwait fields, other countries in the Arabian Gulf have developed their offshore fields. For example, Qatar is producing large volumes of oil and gas from PEARL gas to liquid offshore project located in North of Qatar (Pit and Unsal, 2018). The produced and processed gas is being transported from two platforms to the onshore gas-processing plant through main pipelines. As the produced gas is sour with high mole fraction of CO2and H2S, a continuous corrosion inhibitor injection is applied as well as kinetic hydrate inhibitor due to the low sea temperatures, which reaches below hydrate formation temperature. Furthermore, the Arabiyah and Hasbah fields in Saudi Arabia offshore are challenging offshore fields due to complex flow assurance risk related to elemental sulfur, hydration, large slug volumes, high 2 OTC-30851-MS corrosion rate, and HPHT environment (Al-Tunisi et al., 2015). The field was developed using sixteen platforms, where heavy diesel oil and MEG injection were used to control corrosion and hydrates. Figure 1—Kuwait offshore field location map showing Medina field investigated in this study (Ibrahim, and Cristoffersen, 2019) This study compares and contrast two different offshore development schemes, namely multiphase subsea and platform developments that differ from each other mainly in the schemes’ layout and fluid separation and processing location with reference to the producing wells and the final onshore production facility. In this study, six deviated, HPHT, volatile, and sour oil producing wells are simulated and optimized. The optimization is done by adjusting the choke size of each well with the objective of maximizing the flow rate. In the subsea development scheme, the separation and processing of the produced fluid is simulated to be at the onshore production facility, which is expected to increase the flow assurance risks along the oil-andgas-subsea pipeline transportation system. On the other hand, in the platform scheme, the production from the six producing wells is separated and processed at the platform, which minimizes the flow assurance risks along the pipeline transportation system from platform to the onshore surface production facility. The objective of the study is to simulate and evaluate the two field development schemes based on the associated flow assurance risks, economics, and environmental impact using a state-of-the-art commercial steady-state flow simulator. Several flow assurance mitigation strategies are investigated to optimize the total production rate through enhancing the system design and operability. Field, Fluid, and Production System Description This study carries out steady-state multiphase flow analyses to simulation subsea and platform development schemes located in offshore Kuwait. The simulated Medina field is approximately 90 meters deep and located approximately 16 km from the Northern shore as shown in Fig. 2. OTC-30851-MS 3 Figure 2—The simulated Medina field location The sea floor profile is rugged with a sharp elevation close to the shore as shown in Fig. 3. The two field development schemes were constructed and simulated, from which the optimal total flow rate and flow assurance risks were predicted. The six deep and deviated wells have a maximum depth and deviation of 16,570ft and 50°, respectively as shown in Fig. 4, which are drilled and completed in the HPHT Middle Marrat, Jurassic formation. The initial reservoir pressure and temperature of Middle Marrat are approximately 11,000 psia and 270°F, respectively. The flow from the six wells is comingled at a joint to and delivered to the facility through a main multiphase flowline in the subsea multiphase scheme. In the platform scheme, the flow is comingled at the riser base and flowed upward through the riser to the twophase separator, the separated fluids are delivered to the shore through two single-phase down comers and two main pipelines. Figure 3—Sea floor profile 4 OTC-30851-MS Figure 4—Simulated wells profile and geometry The simulated volatile oil has an API gravity and GOR of 38° and 2900 scf/STB, respectively, with sour gases of 1.1% CO2 and 2.1% H2S mole fractions. Fig. 5 shows the phase envelop of the produced fluid as well as the hydrates and water lines, indicating the potential of hydrates and ice formation and deposition along pipeline system. Figure 5—Produced fluid phase envelope The reservoir pressure depletion is predicted using material balance on the same reservoir located onshore, which is fitted in Eq. 1 as follows: OTC-30851-MS 5 (1) where Np is the cumulative produced oil in STB and pr is the reservoir pressure in psia. Simulation Description In this study, a commercial industry standard steady-state multiphase flow simulator is used. Fig. 6 shows the network simulation schematics of the subsea scheme and platform scheme. A compositional model with 3-Parameter Peng Robinson Equation of State (EoS) is used to characterize the volatile sour crude oil simulated in this study by advanced thermodynamic commercial software package incorporated in the standard industry multiphase flow simulator. Furthermore, comprehensive mechanistic models of Xiao et al. (1990), Ansari et al. (1994), and Kaya et al. (1999) where selected to predict the multiphase behavior and characteristics, including the flow pattern, pressure gradient and liquid holdup along the entire production system. The investigated flow assurance phenomena in this study are pipe erosion and corrosion, formation and deposition of gas hydrate, hydrodynamic and terrain slugging, and severe slugging in the platform system. Figure 6—Network simulation schematic. Subsea scheme (top) and platform scheme (bottom) Pipe erosion is predicted by calculating the erosional velocity ratio (EVR) defined as the ratio of fluid velocity to the maximum allowable erosional velocity using API RP14 model. To control erosion, a proper pipe size is selected that allows producing the optimum designed flow rate, while keeping erosional velocity ratio less than unity. Corrosion is predicted by calculating the corrosion rate, i.e. pipe material loss per year due to the presence of CO2 dissolved in water, using de waard (1995) corrosion model. The analysis of gas hydrate formation and deposition in the flowlines covers different sensitivities based on the controlling parameters of this phenomenon such as sea temperature gradient and pressure and temperature profile throughout the pipelines. The objective of this analysis is to predict the critical temperature below which gas hydrate forms with ±10% uncertainty, which indicate that the system thermal management is crucial to prevent hydrates formation. Consequently, heat transfer management is carried 6 OTC-30851-MS out to prevent hydrates formation using different type and thickness of pipeline insulation material. In addition, chemical inhibitors to mitigate hydrates are investigated by predicting the inhibitor injection rates and economics (Al-Safran and Brill, 2017). Terrain and hydrodynamic slugging are predicted and mitigated by early phase separation and pipelining as single-phase gas and single-phase liquid, or pipeline re-routing to minimize the inclination angle effect. Severe slugging is predicted using Boe (1981) criterial and is mitigated by preventing liquid accumulation at the riser base, increasing system pressure by topside choking, riser gas lift, or riser self-gas lifting (AlSafran and Brill, 2017). Economic Analysis A detailed economic analysis based on the optimum designs of the subsea multiphase development scheme and platform development schemes is carried out to evaluate all the simulated alternatives of flow assurance mitigation and prevention scenarios. The net present value (NPV) is used as the main economic indicator in this study to, economically, evaluate the alternatives, and compare the two schemes. In addition, the discounted cash flow rate of return (DCFROR) is used as a second indicator for further detailed comparison. Different factors are included in the cash flow calculation to determine the NPV such as depreciation, tax, and present value factor. The investment cost cover in each scheme the capital cost of drilling and completion, platform installation, pipeline material, insulation and coating, fluid separation, chemical injection, pump and compressor stations, SCADA and metering system, environmental and permitting, engineering and construction management and contingency cost represented as allowance for funds used during construction. Furthermore, the operating cost includes the annual expenses related to personnel salaries, data acquisitions and operations, pump and compressor fuel and maintenance cost, required chemical injection, station maintenance, SCADA operating cost, produced water treating cost, transportation and accommodation cost in case of platform scheme, workover and other field maintenance costs. Based on the economic analysis results, as well other factors, the evaluation of both production schemes is determined. Results and discussion Both scheme designs were optimized to meet this study objective. Table 1 shows the properties of the main designed flowlines. The multiphase flowline represents the main flowline of the subsea scheme, while liquid and gas flowlines are the main flowlines in the platform scheme that carries liquid and gas after separation to the shore. Table 1—Flowline characteristics Flow line Type- Schedule Nominal Diameter (in.) Inner Diameter (in.) Thickness (in.) Weight (lbm/ft) Roughness (in.) Multiphase API-60 10 9.75 0.5 54.74 0.0018 Liquid API-80 8 7.625 0.5 43.39 0.0018 Gas API-140 10 8.75 1.0 104.13 0.0018 In the platform scheme, the separator is located at the platform with a separator pressure of 700 psia, a pump and compressor are added to boost the flow to the onshore receiving facility from year 1-12, and 14. Based on the designed pipeline size and optimized flow rate, the EVR along the multiphase and single phase pipelines did not exceeded 0.9, eliminating the risk of pipe erosion as shown in Fig. 7. OTC-30851-MS 7 Figure 7—Erosional velocity ratio vs. time Pipeline corrosion is significant and severe in this simulation study due to the sour gas and water, which when combined forms carbonic acid. This was observed in the multiphase and gas flowlines in year one as shown in Fig. 8. Corrosion can be mitigated in several ways, for example using corrosion resistance alloys (CRA) instead of carbon steel, gas-sweetening processing, cathodic protection, and corrosion inhibitors. However, the efficiency of the chemical inhibitor is related to the flow pattern and the pipe wall-wetting phase. Because the flow pattern predicted along the pipeline is mainly stratified and slug flow, it is recommended in this study using CRA and Cathodic protection over continues corrosion inhibitors injection. Figure 8—Corrosion rate and cumulative corrosion for gas, liquid, and multiphase flowlines The hydrates phase envelop and flowlines pressure/temperature profiles are predicted and plotted in Fig. 9 to assess the risk of hydrates formation and possible deposition. In this paper, we only show the results of hydrates prediction and mitigation in the multiphase flowline of the subsea scheme. Similar results were obtained for the gas flowline in the platform scheme, but almost no hydrate was predicted in the liquid flowline of the platform scheme. The analysis shows that the fluid temperature drops below the hydrates 8 OTC-30851-MS formation temperature seven months of the year due to sea water temperature drop and increase in heat transfer rate from produced fluids to surrounding sea water. Figure 9—Hydrates phase envelop and fluid PT profile at different sea temperatures Multiple sensitivities analyses were carried out on pipeline insulation thickness and insulation material to minimize heat loss and prevent hydrates formation. Polyethylene, polypropylene, and polyurethane are three different insulation materials with thermal conductivity of 0.20, 0.13 and 0.07 Btu/h-ft-°F, respectively, were investigated with multiple thicknesses of 0.2, 0.3 and 0.5 in. Fig. 10 shows the produced fluid and hydrates formation temperature profiles with insulation, which indicates fluid temperature drops below the hydrates formation temperature for most of the flowline. On the other hand, Fig. 11 shows the fluid and hydrates formation temperature profiles with 0.3 in. of Polypropylene insulation in which the temperature of the fluid above the hydrates formation temperature due to reduction in heat transfer rate. Similar analysis was carried for different insulation material and thicknesses. OTC-30851-MS 9 Figure 10—Hydrates and fluid temperature profiles without insulation or chemical injection Figure 11—Hydrates formation and fluid temperature profiles with 0.3 in. polypropylene insulation In addition, sensitivity analyses on methanol injection rate to obtain the optimum value to mitigate hydrates formation is carried out. Fig. 12 shows the effect of methanol on shifting the hydrates formation temperature line below the fluid temperature line. Further analysis was carried out to obtain the optimal injection volume. Table 2 lists all the optimal insulation thicknesses and material, and methanol injection rates for the multiphase, gas, and liquid flow line in both subsea and platform schemes at the lowest sea temperature of 63 °F. 10 OTC-30851-MS Figure 12—Hydrates formation and fluid temperature profiles with Methanol Table 2—Gas hydrate simulated prevention and mitigation methods Methanol (bbl/d) Polyethylene (in.) Polypropylene (in.) Polyurethane (in.) Multiphase flowline 270 0.5 0.3 0.2 Liquid flowline 70 0.7 0.5 0.3 Gas flowline 90 2.1 1.4 0.7 Severe slugging in platform riser is predicted for the base case in this study according to the severe slugging indicator being less than one. Sensitivity analysis on topside choking and decreasing of riser ID was carried, but showed a no effect on mitigating severe slugging. However, increasing the separator pressure 2200 psia increased the system pressure and decreased the flowrate, resulting in complete mitigation of severe slugging. Results show that this resulted a reduction of 6.6 MMscf/d (7%) of gas flow rate, and 3,255 STB/d (9%) of oil flowrate in the first year. In addition, this eliminated the need of fluid boosting downstream of the separator. This severe slugging mitigation was only obtained when selecting Zhang et al. (2003) unified model as the hydrodynamic model, which predicts dispersed bubbly flow pattern in the vertical riser. On the other hand, when Ansari et al. (1994) model is used, severe slugging persists. This indicates the large uncertainty in modeling severe slugging phenomenon and flow pattern, and may require careful model tuning with field data to ensure accuracy. Terrain slugging prediction is a transient phenomenon, which requires slug tracking modeling. In future work of this study, an industry standard transient multiphase flow simulator will be used, which includes slug tracking modeling to simulate terrain slugging along the multiphase flowline. At this stage of the study, the average multiphase flow parameters along the multiphase flowline of the subsea development scheme are presented using industry standard commercial steady-state simulator. Figs. 13 and 14 show the flow pattern and average liquid holdup along the multiphase flowline, indicating that intermittent flow is the dominant flow pattern, especially in the uphill sections of the flowline. The flow pattern not only affects flow assurance phenomena such as hydrates and wax deposition behavior and characteristics, but also the efficiency of chemical injections such as Methanol and MEG. Fig. 15 shows an important slug flow characteristics, i.e. mean slug length along the flowline. Results reveals that average slug length increases up approximately OTC-30851-MS 11 300 ft at 11 km horizontal distance, then sharply decreases as the flow pattern becomes segregated flow in the downhill sections of the flowline. This sharp increase in mean slug length results in the generation of very long slugs when calculating the 99% probability (P99), which indicates the slug length that exceeds 99% of the slugs. Al-Safran et al. (2005) proposed a probabilistic modeling of the maximum slug length as a function of mean slug length and standard deviation of normally transformed slug length distribution as given in Eq. 2. Figure 13—Flow pattern prediction along multiphase flowline of subsea scheme Figure 14—Liquid holdup prediction along multiphase flowline of subsea scheme 12 OTC-30851-MS Figure 15—Mean slug prediction along multiphase flowline of subsea scheme (2) where μN and σN are the mean and standard deviation of normal transformed slug length distribution, respectively. The value of 2.58 in Eq. 2 is the t-statistic that corresponds to 99% confidence interval of tdistribution. Incorporating the flow assurance prevention and mitigation scenarios, both development schemes maintain continuous production for entire project life of 20 years. Figs. 16 and 17 show the reservoir pressure depletion, and the production rates of oil, gas and water along the life of the project for both schemes. Figure 16—Platform scheme production and pessure forecast OTC-30851-MS 13 Figure 17—Subsea multiphase scheme production and pressure forecast Based on simulation results, detailed economic analyses were carried out for four alternative scenarios under the subsea multiphase scheme and 16 alternative scenarios under the platform scheme based on the proposed flow assurance mitigation methods. Table 3 describes each alternative plan. Each of the above alternatives have its capital cost, operating costs and revenues. For example, separator pressure of 2200 psia option eliminated the capital cost of installing the boosting stations as well as station annual maintenance cost and operating cost; however, increased system pressure, which resulted in less oil and gas production, which will directly affect the revenues and cash flow. Considering 35% tax rate and 20% depreciation rate, the two economic indicators (NPV profile and DCFROR) were obtained to evaluate the above alternatives given in Table 3. Results revealed that all subsea scheme alternatives showed approximately equal DCFRAR of around 128.6% with slightly higher NPV profile for the AA alternative as shown in Table 4. 14 OTC-30851-MS Table 3—Design alternative Alternatives Description AA Subsea scheme with corrosion resistance alloy and polypropylene insulation AB Subsea scheme with corrosion resistance alloy and polyethylene insulation AC Subsea scheme with corrosion resistance alloy and polyurethane insulation AD Subsea scheme with corrosion resistance alloy and methanol injection BAAA Platform scheme with corrosion resistance alloy, separator pressure 700 psia and polypropylene insulation BAAB Platform scheme with corrosion resistance alloy, separator pressure 700 psia and polyethylene insulation BAAC Platform scheme with corrosion resistance alloy, separator pressure 700 psia and polyurethane insulation BAAD Platform scheme with corrosion resistance alloy, separator pressure 700 psia and methanol injection BABA Platform scheme with corrosion resistance alloy, separator pressure 2200 psia and polypropylene insulation BABB Platform scheme with corrosion resistance alloy, separator pressure 2200 psia and polyethylene insulation BABC Platform scheme with corrosion resistance alloy, separator pressure 2200 psia and polyurethane insulation BABD Platform scheme with corrosion resistance alloy, separator pressure 2200 psia and methanol injection BBAA Platform scheme with gas sweetening processing, separator pressure 700 psia and polypropylene insulation BBAB Platform scheme with gas sweetening processing, separator pressure 700 psia and polyethylene insulation BBAC Platform scheme with gas sweetening processing, separator pressure 700 psia and polyurethane insulation BBAD Platform scheme with gas sweetening processing, separator pressure 700 psia and methanol injection BBBA Platform scheme with gas sweetening processing, separator pressure 2200 psia and polypropylene insulation BBBB Platform scheme with gas sweetening processing, separator pressure 2200 psia and polyethylene insulation BBBC Platform scheme with gas sweetening processing, separator pressure 2200 psia and polyurethane insulation BBBD Platform scheme with gas sweetening processing, separator pressure 2200 psia and methanol injection For platform alternatives, both indicators proposed BBAA alternative over the 15 other alternatives as shown in Fig. 18 with DCFRAR of 61.2%. OTC-30851-MS 15 Figure 18—Platform scheme alternative NPV as a function of discount rate Table 4—NPV of subsea scheme selected alternatives NPV, USD million Discount Rate % AA AB AC AD 0 4633.984 4633.953 4633.969 4632.489 10 2223.691 2223.66 2223.676 2222.33 20 1308.17 1308.139 1308.155 1306.92 30 861.5549 861.5242 861.54 860.4 40 604.2724 604.2417 604.2574 603.1984 50 438.7447 438.714 438.7297 437.7409 60 323.8401 323.8094 323.8251 322.8978 70 239.6026 239.5719 239.5876 238.7144 80 175.2772 175.2465 175.2622 174.4372 90 124.5851 124.5543 124.5701 123.7882 100 83.62483 83.5941 83.60986 82.86676 The best economic selected scenario from each scheme were to determine which scheme is economically better. Fig. 19 shows the comparison results between the two best-selected scenarios of both schemes based on two selected economic indicators. 16 OTC-30851-MS Figure 19—NPV and discounted rate of best scenarios from each scheme Conclusion The results showed that flow assurance risks such as hydrates and corrosion are high in both production schemes, which impact not only the wells flow rate, but also system integrity and safety. Using industry standard steady-state multiphase flow simulator, 20 different field development designs were simulated with manageable flow assurance risks. These designs were economically evaluated based on two economical indicators, NPV and DCFROR. As a result, a subsea multiphase development scheme with 10 in. ID corrosion resistance alloy multiphase flowline with 0.3 in. thick polypropylene insulation is selected as the optimum design and most profitable economic option with assured flow scenario. Therefore, compared with platform field development scheme, subsea development is better option due to its manageable flow assurance issues, and high NPV. This study should enable KOC to evaluate different offshore development schemes by predicting flow assurance risks, investigating different flow assurance mitigation and management strategies, evaluating the economics for each scheme, and assessing the environmental impact. This should ensure sustainable production with safe operation and protected environment. References Al-Safran, E., Brill, J., 2017. Applied Multiphase Flow in Pipes and Flow Assurance – Oil and Gas Production. Society of Petroleum Engineers, Richardson, TX, USA. Al-Safran, E., Sarica, C., Zhang H-Q., and Brill, J. 2005. Probabilistic/Mechanistic Modeling of Slug Length Distribution in a Horizontal Pipeline. SPE 84230-PA, SPE Journal of Production and Facilities, 160–172. 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