Oil and Gas Terminologies – 28 Basic Terms You SHOULD Master Today!

Oil and gas terminologies can be confusing, especially for people who are new to the industry workforce. While some terms may seem self-explanatory, others are more bizarre and require a breakdown in order to grasp the basic understanding.

However, knowing the oil and gas terminologies is not just important for understanding your colleagues in the industry, it is also imperative for ensuring that your work is done safely and well.

We would like to help you when making a move into the oil and gas industry.

These oil and gas terminologies provides help and guidance in your journey to the industry.

Ultimate Guide to Oil and Gas Terminologies

I have created this ultimate guide to oil and gas industry terminologies to help you get familiar with the industry jargon.

If you want to work in oil and gas, get a head start with this guide to the industry lingo.

Barrel

This is the standard, basic unit for measuring oil and is equivalent to 42 U.S. gallons or 158.9873 litres.

Blowout

A blowout is an uncontrolled flow of gas, oil, or other fluids typically caused by a pressure control system failure.

Boe

This stands for Barrels of Oil Equivalent and is defined as a unit of energy equal to the energy released by burning one barrel of crude oil.

BOEPD

This stands for Barrels of Oil Equivalent Per Day.

BTU

BTU is an acronym for British Thermal Unit, a unit of heat.

Christmas tree

The fittings and valves connected to the top of a well which controls the rate of flow from the well

Crude Oil

This is a naturally occuring and unrefined product of petroleum that can be refined to petrochemicals.

Derrick

The tower-like structure that controls most of the drilling and provides support for equipment being lowered in the well

Derrickman

The title for the third person in command after the driller and the assistant driller.

Discovery

 A well from which oil or gas has been recovered.

Dog House

This often refers to a steel-sided room that acts as a communication center for driller and crew.

Downstream

A term that is linked to oil and gas activities, such as refining, that take place away from the source of the supply.

Drill Cuttings

This refers to pieces of rock found in the well after drilling that are then removed and properly disposed of.

E&A

The abbreviation for exploration and appraisal

Oil and Gas Terminologies Contd….

Fish 

Anything that’s fallen down the wellbore by mistake

Frac job 

Another term for hydraulic fracturing (when an oil or gas well is stimulated by pumping special fluids into the reservoir)

Grapple 

Name of tools used to recover fish from the wellbore

Joint

Refers to the length of a pipe

Motorman 

The member of the crew responsible for maintenance of the engines

Permeability

The degree to which fluids or gas can move through porous material.

Pig 

Name of the tool used to clean a pipeline

Reservoir

A general term used to refer to porous and permeable rock containing commercial volumes of oil and gas.

Spudding In

A term that describes the first drilling phase of a new well.

Sour Gas

Natural gas contaminated with chemicals, usually sulfur compounds, that causes a sour odour

TCF

An acronym for Trillion Cubic Feet of natural gas.

Trap

A geological barrier to the upward movement of oil or gas.

Upstream

This term refers to processes in the oil and gas industry, such as exploration and production, that occur near the supply.

Wildcat well 

An exploratory well that is drilled in an area that isn’t a known oil field

Conclusion

In conclusion, the above oil and gas industry terminologies will give you an idea, and a foothold into the oil and gas industry.

You are now up to speed on the important oil and gas industry jargon.

You can put your knowledge to test by leaving a comment below or asking a question on this or any other term you would like to know.

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Subsea Xmas Tree; 4 Things You MUST Know About Subsea Trees

Subsea Xmas tree is basically a stack of valves installed on a subsea wellhead. It is installed provide a controllable interface between the well and production facilities.

It is composed of a variety of valves, which are used for testing, servicing, regulating, or choking the stream of produced oil, gas, and liquids coming up from the well below.

Different types of subsea Xmas trees may be used for either production or water/gas injection. Configurations of subsea Xmas trees may differ based on the requirements of the projects and field developments.

Functions of a Subsea Xmas Tree

Enable flow of the produced fluid from the well or the injection of water or gas from surface facility into the formation (called injection tree), including protection fluids, such as inhibitors for corrosion or hydrate prevention.

Stop the flow of fluid produced or injected by means of valves in a safe way.

Control the fluid flow through a choke (not always mandatory).

Monitor well parameters at the level of the tree, such as well pressure, annulus pressure, temperature, sand detection, etc.

Vertical Christmas Tree

Master valves are located above the tubing hanger and swab valves together with master valves are stacked vertically.

The production and annulus bore lays vertically on the body of the tree. The well completion is finished before installing the vertical Xmas tree.

Since the tubing hanger rests on the wellhead, Xmas tree can be recovered without having to recover the downhole completion. This type is generally applied in subsea fields due to their flexibility of installation and operation.

Horizontal Christmas Tree

In contrast to vertical Xmas tree, the valves of horizontal Xmas tree are located on the lateral sides of the horizontal Xmas tree.

This allows for easy well intervention and tubing recovery. Therefore, this type of tree is very feasible for the wells that need many interventions.

The tubing hanger is installed in the tree body instead of the wellhead. Consequently, the tree is installed onto the wellhead before completion of the well.

Components of a Subsea Christmas Tree

Typical components of a typical subsea Xmas tree include:

  • Tubing hanger system.
  • A tree connector to attach the tree to the subsea wellhead.
  • The tree body, a heavy forging with production flow paths, designed for pressure containment, annulus flow paths may also be included in the tree body.
  • Tree valves for the production bore, the annulus, and ancillary functions. The tree valves may be integral with the tree body or bolted on.
  • Valve actuators for remotely opening and closing the valves. Some valves may be manual and will include ROV interfaces for deepwater.
  • Control junction plates for umbilical control hookup.
  • Control system. This includes the valve actuator command system and includes pressure and temperature transducers. The valve actuator command system can be simple tubing or a complex system, including a computer and electrical solenoids depending on the application.
  • Choke (optional) for regulating the production flow rate.
  • Tree piping for conducting production fluids, crossover between the production bore and the annulus, chemical injection, hydraulic controls, etc.
  • Tree guide frame for supporting the tree piping and ancillary equipment. In addition, it provides and guidance for installation and intervention.
  • External tree cap for protecting the upper tree connector and the Xmas tree itself. Tree cap often incorporates dropped object protection or fishing trawl protection.

Conclusion

In conclusion, subsea Xmas trees have been topping underwater wellhead to control flows since 1950s.

Subsea trees are used in offshore field developments globally. This is from shallow to ultra deepwaters. For example, the deepest subsea trees have been installed in the waters offshore Brazil and in the Gulf of Mexico.

Other subsea trees include mudline suspension trees, monobore trees and large bore trees.

Aker Solutions, Cameron, FMC Technologies and Schlumberger are some of the companies that manufacture subsea Xmas trees.

I would be happy to hear from you. Leave a comment below!

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Oil and Gas Christmas Tree; Christmas Tree or Wellhead?

Oil and gas christmas tree, and a wellhead are oil and gas terms. Although used interchangeably, the terms are not the same.

Each has valves and related equipment that help to control and guide the flow of the oil and gas from the ground.

Let us attempt to show the difference between the oil and gas christmas tree and a wellhead.

What is an Oil and Gas Christmas Tree?

A christmas tree in the upstream oil and gas industry is an assembly of valves, spools and fittings used for oil, gas, water injection, water disposal, gas injection, condensate and other types of wells.

It resembles a decorated Christmas tree.

What is an Oil and Gas Wellhead?

The oil and gas wellhead is the component at the surface of a well that provides the structural and pressure-containing interface for the drilling and production equipment.

Producing surface wells that require pumps (pump jacks, nodding donkeys, etc.) frequently do not use any tree because no pressure containment is required.

The oil and gas christmas tree and the wellhead work together to bring oil and gas to the ground.

Oil and gas christmas trees are frequently manufactured from blocks of steel containing multiple valves rather than made from multiple flanged valves.

The primary function of a christmas tree is to control the flow into or out of the oil and gas well.

An oil and gas christmas tree often provides numerous additional functions. These functions includes chemical injection points, well intervention means, pressure relief means (such as annulus vent).

In addition, it includes christmas 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.

Importance of an Oil and Gas Christmas Tree?

Importance of a christmas tree is in serving these functions;

  • On producing wells, injecting chemicals or alcohols or oil distillates to prevent and or solve production problems such as blockages.
  • Controlling the injection of gas or water on a producing or non-producing well to sustain economic “production” volumes of gas from other wells in the oilfield.
  • The control system attached to the oil and gas christmas tree controls the downhole safety valve. Therefore, the christmas tree in this instance acts as an attachment and conduit means for the control system to the downhole safety valve.

Oil and Gas Christmas Tree Valves.

A christmas tree has five valves: the kill wing valve, swab valve, production wing valve, 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 released formation fluids are 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 oil or gas from the well bore to the customer.

Components of a Christmas Tree

The two lower valves are called the master valves. They are the upper and lower valves respectively. This is because they lie in the flow path, which well fluids must take to get to the surface.

The lower master valve will normally be manually operated, while the upper master valve is often hydraulically actuated.

Hydraulic tree wing valves are built to be fail-safe closed. This means that they require active hydraulic pressure to stay open.

The right-hand valve is often called the flow wing valve or production wing valve, because it is in the flow path the hydrocarbons take to production facilities.

The left-hand valve is often called the kill wing valve. It is primarily used for injection of fluids such as corrosion inhibitors or methanol to prevent hydrate formation.

Swab valve at the top lies in the path used for well interventions, like wireline and coiled tubing.

The choke is the device, either stationary or adjustable, used to:

  • Control the gas flow which is also known as volume.
  • Create downstream pressure which is also referred to as back pressure

Conclusion

In conclusion, a wellhead must be present to utilize an oil and gas christmas tree. A wellhead does not use the christmas tree during drilling operations.

I hope this has helped you understand the various assemblies. In turn, this would help you better see the difference between a christmas tree and a wellhead.

Leave a comment below, or ask a question.

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Mozambique Area-1 LNG Project in Mozambique – 5 Things You SHOULD Know!

Mozambique Area-1 LNG project comprises of  the Golfinho-Atum gas field development. This is in the offshore Area 1 Block of the deep-water Rovuma Basin.

In addition, it comprises of the construction of a 12.88 million tonnes per annum (Mtpa) onshore liquefied natural gas (LNG) facility on the Cabo Delgado coast of Mozambique.

Anadarko Petroleum Corporation, through its wholly-owned subsidiary Anadarko Moçambique Área 1, holds majority stake in the Mozambique Rovuma Offshore Area 1 development consortium.

The final investment decision (FID) on the Area 1 Mozambique LNG project was taken in June 2019. It is estimated to cost about $20bn.

Construction works on the integrated LNG project started in 2019, with the start of production scheduled for 2024.

The Mozambique Area-1 LNG will be the first onshore LNG facility in Mozambique.

Mozambique Area-1 LNG Project History

In 2011 and 2012, gas and oil multinationals ENI from Italy and Anadarko from the U.S.A. made a huge discovery: a gas field containing 7000 billion cubic meters of gas, just off the coast of Cabo Delgado, Mozambique’s northernmost province.

This has become the world’s fourth largest offshore gas project. The discovery is worth hundreds of billions of dollars.

Mozambique is emerging as a future leader in the global LNG industry, and this is as it works to develop an LNG facility on the Afungi peninsula in Cabo Delgado province.

With approximately 75 trillion cubic feet of recoverable natural gas discovered in the Area 1, the Mozambique LNG Project represents an extraordinary opportunity to meet increasing world demand for a energy.

To start, environmental impact assessment (EIA) for the Mozambique Area-1 LNG project was carried out between 2011 and 2014.

Thereafter, the Mozambican Ministry of Coordination of Environmental Affairs (MICOA) approved the EIA report in June 2014.

Finally, the concessions to design, build and operate the marine facilities for the project were secured from the Government of Mozambique in July 2017.

Most importantly, the Government of Mozambique gave the final approval for the Mozambique Area-1 LNG development plan in March 2018.

Mozambique Area-1 LNG Project Details

The Golfinho-Atum gas field is located in 1,600m-deep waters within the Rovuma Basin Area 1, approximately 40km off the coast of Cabo Delgado. The Offshore Area-1 is estimated to contain 75 trillion cubic feet (tcf) of recoverable natural gas resources.

The LNG processing and export facility will be developed in the Afungi peninsula in Cabo Delgado, the northernmost province of Mozambique.

Mozambique Area-1 LNG Project Operator and Partners

Anadarko holds 26.5% interest in the Rovuma Area 1 exploration and production concession. The other licensees are ENH Rovuma Área Um (15%), Mitsui E&P Mozambique Area1 (20%), ONGC Videsh (10%), Beas Rovuma Energy Mozambique (10%), Bharat Petroresources Limited (BPRL) Ventures Mozambique (10%), and PTTEP Mozambique Area 1 (8.5%).

Beas Rovuma Energy Mozambique (BREM) is a joint venture between ONGC Videsh (60%) and Oil India Limited (OIL, 40%), while BPRL is a wholly-owned subsidiary of Bharat Petroleum, another state-controlled oil and gas company of India.

Mozambique Area-1 LNG Facility

The Mozambique Area-1 LNG facility will consist of two liquefaction trains with a combined nameplate capacity of 12.88Mtpa in the initial phase. It will also house gas pre-treatment facilities and full-containment LNG storage tanks. The LNG production capacity of the facility is proposed to be further expanded up to 50Mtpa in future.

The plant will receive feed gas supply from the Golfinho-Atum gas field through pipeline and produce LNG for export to the Asian and European markets, as well as for domestic consumption in Mozambique.

Other support facilities for the LNG plant will include materials offloading facility and an LNG marine terminal capable of accommodating large LNG carriers, which will also be shared with upcoming Area 4 LNG projects.

LNG off-take

Mozambique Area-1 LNG project is backed with 11.1Mtpa of long-term LNG off-take agreements.

The customers for the project include Electricite de France (EDF, 1.2Mtpa), Japan’s JERA and Taiwan’s CPC Corporation (1.6Mtpa), CNOOC Gas and Power Singapore (1.5Mtpa).

Similarly, Tokyo Gas and Centrica (2.6Mtpa), Shell International Trading Middle East (2Mtpa), Bharat Petroleum Corporation (1Mtpa), and Indonesia’s Pertamina (1Mtpa) are also customers.

In addition, Anadarko signed a memorandum of understanding (MoU) with the Government of Mozambique in December 2015, to provide 100 million cubic feet of gas a day (Mmcfd) from the facility for domestic consumption.

Contractors and Suppliers

A consortium of McDermott, Chiyoda Corporation, and Saipem is responsible for the engineering, procurement, and construction (EPC) of the onshore liquefaction plant along with its support facilities.

The joint venture of CB&I (now McDermott), Chiyoda and Saipem (CCS JV) also provided the front-end engineering and design (FEED) for the LNG facility.

TechnipFMC, in consortium with Van Oord, is the engineering, procurement, construction, and installation (EPCI) contractor. This is for the offshore subsea system for the project.

Allseas will be engaged as a major subcontractor for the offshore installation works.

TechnipFMC will also provide subsea trees, subsea controls systems, production manifolds, subsea connectors, in addition to completion workover riser & installation workover control system for the subsea gathering system, through its subsidiary FMC Technologies.

Oceaneering International is the supplier of subsea umbilicals and distribution hardware, while Advanced Technology Valve will provide pipeline subsea ball and subsea gate valves.

Cameron Italy will supply the subsea chemical injection metering valves for the Mozambique Area-1 LNG project.

Conclusion

If you would like to work in this Mozambique Area-1 LNG Project, and if it’s something you want to improve in continually, then you can have a more secure footing in your space.

I would be glad to help!

In conclusion, keep updating yourself with knowledge, insights and the latest in the oil and gas business. Stay connected with your audience, expand your product offerings, and give the best customer service that you can, and it will set you apart from the others in this oil and gas industry.

Have any questions about LNG projects in Mozambique?

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Area-4 Rovuma LNG Project – 7 Things You MUST Know!

Are you interested in Area-4 Rovuma LNG project in Mozambique?

If yes, then buckle up….and look at the answers to the questions below.

I have answered 7 questions, whose answers you MUST know about the Area-4 Rovuma LNG project in Mozambique

This is in regard to the Area 4 Rovuma LNG Project. I have broken the project into 7 key areas, and am going to share them with you in this article.

What is Area 4 Rovuma LNG Project?

I know you are wondering why there is much interest in and about Area 4 Rovuma LNG project.

If you not an industry insider or professional, the good news is that I am here to help you understand it.

The project, Rovuma liquefied natural gas (LNG) project is a 15.2 million tonnes per annum (Mtpa) LNG export facility.

This facility is planned to be developed for purposes of liquefying and marketing gas resources from three reservoirs in the Area 4 block of the Rovuma Basin, offshore Mozambique

Background of Area-4 Rovuma LNG Project

The Area-4 Rovuma LNG project is based on three gas reservoirs of the Mamba complex in the Area 4 block of the Rovuma Basin.

This is located approximately 40km off the Cabo Delgado coast in Northern Mozambique.  The Mamba gas field was discovered in October 2011.

The Area 4 is estimated to hold a total of 85 trillion cubic feet (tcf) of gas reserves. Rovuma LNG project targets the development and commercialization of 21.7Tcf of high-quality gas resources.

Who is the Operator of the Area-4 Rovuma LNG Project?

Mozambique Rovuma Venture (MRV), a joint venture of ExxonMobil (40%), Eni (40%), and CNPC (20%) is the operator and holds 70% interest in the Area 4 exploration and production concession contract. Galp, KOGAS, and Empresa Nacional de Hidrocarbonetos each hold a 10% interest in the block.

Eni is in charge of the construction and operation of the upstream facilities on behalf of MRV, while ExxonMobil will lead the construction and operation of the LNG and associated facilities for the deepwater Area 4 block.

When is it expected to be completed?

The final investment decision (FID) on the multi-billion-dollar Area-4 Rovuma LNG project is expected by the end of 2019, while the construction works are expected to be started in 2020.

Expected to be brought on stream in 2024, the LNG project will produce 17,000 tonnes (t) of liquefied petroleum gas (LPG) a year in Mozambique and pave the way for the country to become one of the leading LNG exporters in Africa.

Who are the Top Contractors of Area-4 Rovuma LNG Project?

Mitsubishi Heavy Industries (MHI) was selected as the supplier of gas turbines and compressors for the project, under an agreement signed in April 2019.

Mitsubishi Heavy Industries Compressor Corporation (MCO) will be responsible for the supply of liquefaction compressors, while Mitsubishi Hitachi Power Systems (MHPS) will supply the gas-turbines for the LNG plant.

Airswift in a joint venture with Embrace is responsible to provide workforce for the project, while Bonatti International was selected for the construction of temporary accommodation and workstation facilities.

Projectos e Estudos de Impacto Ambiental (Impacto) was involved in the preparation of the EIA report for the project.

Where is Rovuma LNG Project Located?

Land of approximately 7,000ha has been obtained for the development of the Rovuma LNG project on the Afungi Peninsula. This is in the Cabo Delgado Province of Mozambique.

The built area for the LNG processing infrastructures will be 3,600ha. The rest of the land will be utilized for the construction of the auxiliary facilities.

What are the Infrastructure Details of Area-4 Rovuma LNG Project?

The first phase of the Area-4 Rovuma LNG project will comprise two liquefaction trains of 7.6Mtpa each.

The LNG trains will be equipped with H-100 gas turbines and liquefaction compressor units from Mitsubishi. Each dual-shaft H-100 gas turbine will have a rated capacity of 120MW.

The Area-4 Rovuma LNG plant will receive up to six billion cubic feet (bcf) of natural gas a day from as many as 60 production wells in Area 4 offshore block.

The feed gas for the liquefaction facility will be supplied through a new 45km-long subsea pipeline corridor.

The marine facilities for the project will include a multi-purpose dock (MPD) to support the primary construction activities.  There will also be an LNG export jetty with two marine loading berths to accommodate LNG carriers.

The project site will also feature a 1.7km-long temporary airstrip and a 3.5km-long permanent airstrip.

The initial production life of the Rovuma LNG project is estimated to be 30 years.

Is there an existing LNG off-take Agreement?

The Area 4 development partners secured LNG off-take commitment from their affiliated buyers for the 15.2Mtpa Rovuma LNG project in December 2018.

Conclusion

Hopefully, this post has helped to answer some of the questions you have, and also provided you with information that is helpful as you seek business or job opportunities in Mozambique.

I am looking forward to hearing from you. Leave a comment below or ask a question.

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10 Largest Sovereign Wealth Funds

In this post, I have listed the 10 largest sovereign wealth funds around the world in terms of assets. These wealth funds are becoming increasingly powerful players on the global financial scene.

But despite their rapid rise, they are often less well understood than other types of investment vehicles.

I will start by answering the question; what is a sovereign wealth fund?. After that, I will give you a brief history of the sovereign wealth funds.

What is a Sovereign Wealth Fund?

Sovereign Wealth Funds are investment funds, mostly state-owned and whose source of revenue are often the balance of payment surpluses, fiscal surpluses and in particular oil or gas resources. According to the Sovereign Wealth Fund Institute, over 88 countries own one, and sovereign wealth fund in hydrocarbon resource-rich countries are managing assets worth more than $4 trillion, with the Norwegian sovereign wealth fund alone having asset value of more than $1 trillion.

History of Largest Sovereign Wealth Funds

Sovereign wealth funds originated in the 1950s. The funds came about as a solution for a country with a budgetary surplus.

Kuwait Investment Authority was the first sovereign wealth fund. It was established in 1953 to invest excess oil revenues.

After two years, Kiribati created a fund to hold its revenue reserves in 1955.

Little new activity occurred until three major funds were created:

  • Abu Dhabi’s Investment Authority (1976)
  • Singapore’s Government Investment Corporation (1981)
  • Norway’s  Petroleum Fund (1990)

Over the last few decades, the size and number of sovereign wealth funds have increased dramatically.

There are more than 88 sovereign wealth funds, and according to the SWF Institute, has exceeding north of $8 trillion.

Which are the 10 Largest Sovereign Wealth Funds by Asset?

This is the list of the 10 largest sovereign wealth funds in the world by asset;

  • Norway Government Pension Fund Global

Assets: $1,098,820,000,000/=

  • China Investment Corporation

Assets: $940,604,000,000/=

  • Abu Dhabi Investment Authority

Assets: $696,660,000,000/=

  • Kuwait Investment Authority

Assets: $592,000,000,000/=

  • Hong Kong Authority Investment Portfolio

Assets: $509,353,000,000/=

  • GIC Private Limited

Assets: $440,000,000,000/=

  • SAFE Investment Company

Assets: $417,844,700,460/=

  • TEMASEK Holdings

Assets: $375,383,000,000/=

  • Qatar Investment Authority

Assets: $328,000,000,000/=

  • National Council for Social Security Fund

Assets: $324,996,000,000/=

What is the largest fund in the world?

Norway’s sovereign wealth fund is the largest in the world. The fund has over $1 trillion in assets. It is managed by the Norwegian Central Bank, the Norges Bank.

The fund was set up as the Petroleum Fund of Norway to invest the surplus from oil sales, but changed to its current name in 2006.

Some of the fund’s biggest equity holdings include Nestlé SA, Royal Dutch Shell (RDS.A), Amazon (AMZN), Apple (AAPL), Alphabet (GOOGL) and Microsoft (MSFT).

Conclusion

The size and number of the 10 largest sovereign wealth funds continue to grow. Sovereign wealth funds will remain a crucial part of the global economy in the future.

One report projects that if sovereign wealth funds continue to grow at their current pace, they will exceed the annual economic output of the U.S. and that of the European Union by 2025.

The emergence of sovereign wealth funds is an important development for international investing.

In conclusion, as regulation and transparency issues get resolved in the coming years, the funds are likely to take on a major role in shaping the global economy.

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