IBP1359_12 UNIQUE CHALLENGES LEAD TO INNOVATIVE SOLUTIONS ON PETROBRAS P-63 PROJECT David J. Clark1, Brian V.

Dakin2

Copyright 2012, Brazilian Petroleum, Gas and Biofuels Institute - IBP

This Technical Paper was prepared for presentation at the Rio Oi & Gas Expo and Conference 2012, held between September, 1720, 2012, in Rio de Janeiro. This Technical Paper was selected for presentation by the Technical Committee of the event according to the information contained in the final paper submitted by the author(s). The organizers are not supposed to translate or correct the submitted papers. The material as it is presented, does not necessarily represent Brazilian Petroleum, Gas and Biofuels Institute opinion, or that of its Members or Representatives. Authors consent to the publication of this Technical Paper in the Rio Oil & Gas Expo and Conference 2012 Proceedings.

Abstract
In early 2010, Petrobras accepted bids for the design, fabrication, installation and operation of the P-63 FPSO for the first three years of production starting in 2013. The field is to be produced using dry tree wells located at the adjacent P-61 tension leg platform (TLP) and subsea wells flowing to the P-63 floating production storage and offloading (FPSO) vessel. Production processing facilities are located primarily on the FPSO with multiple fluid transfer lines directing raw produced fluids from P-61 to P-63 for processing. The oil is a heavy crude with low associated gas, high viscosity, and emulsion forming tendency, all of which had significant impact on the equipment and piping design. The low GOR, relatively high power consumption, and location of the facility required the generators and ships boilers be capable of operating with stabilised crude as one of the fuel sources. In addition to the design issues noted, supply chain management challenges had to be overcome due to a contractual stipulation that required 65% Brazilian content. This paper will discuss some of the significant challenges that were faced and the solutions implemented to meet them including: Effects of heavy, high viscosity crude and emulsion on equipment selection and sizing, and piping sizing and layout; limited gas availability as production declines and the effect on power generation/drivers; use of reciprocating engine drivers for power generation; material selection; and interface management among the contractors involved.

1. Introduction
The Papa Terra field is located approximately 110 kilometers off the coast of Rio de Janeiro in the Campos Basin, Block BC-20, in water depths up to 1200 meters. In early 2010, Petrobras accepted bids for the design, fabrication, installation and operation of the P-63 FPSO for the first three years of production starting in 2013. The winning contractor chose AMEC Oil & Gas Americas (formerly AMEC Paragon at the time of execution) to provide basic engineering for all topsides modules and subsequently to provide detailed engineering of the four hydrocarbon processing modules. The Papa Terra reservoir contains potential recoverable reserves estimated at up to 1 billion barrels of oil equivalent. The field is to be produced from dry tree wells located at the P-61 tension leg platform (TLP) and from subsea wells flowing to the P-63 FPSO vessel. The FPSO is a conversion of the Ultra Large Crude Carrier BW Nisa, with storage capacity of 2,300,000 barrels. Production processing facilities are primarily located on the FPSO with multiple fluid transfer lines directing raw produced fluids from P-61 to P-63 for processing. The process facility is designed for 350,000 BLPD with up to 140,000 BOPD and 325,000 BWPD; 35 MMscfd gas compression for fuel gas, lift gas and/or re-injection; and 340,000 BPD seawater injection. Figure 1 shows a block flow diagram of the main process streams. The flow rates shown in Figure 1 indicate the design capacity each particular section of the plant.

______________________________ 1 Master of Chemical Engineering Process Engineering Lead, AMEC Oil & Gas Americas 2 MSc, C.Eng., M.I.Mech.E., F.E.I., F.I.Diag.E. Engineering Manager, AMEC Oil & Gas Americas

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Figure 1. Block diagram for P-63 main process flow with design rates shown Several significant production and processing challenges existed for the facility. The Papa Terra oil is a heavy 14.2-16.5 degree API crude with low associated gas, high viscosity, and emulsion forming tendency. The high density and viscosity of the oil require higher processing temperatures and larger separation equipment than would typically be expected for lighter oils at the given production rates. Additionally, there was a strict contractual requirement on the minimum allowable pressure drop between the arrival point on the FPSO and the first separator, which affected the piping and heat transfer equipment selection. The low GOR, relatively high power consumption, and location of the facility required the generators and ships boilers be capable of operating with stabilised crude as one of the fuel sources. In addition to the technical design issues noted, supply chain management challenges had to be overcome due to a contractual stipulation that required 65% Brazilian content. It was important, therefore, that contractors engaged in the design, procurement and construction phases of the project, as well as equipment suppliers, understood the unique project challenges and devised appropriate mechanisms and processes to overcome them.

2. Crude Properties
Two sets of well sample data were provided, bracketing the expected API gravity range. A detailed compositional analysis was provided for each along with minimal additional information. Selected data for the two available well samples are included in Table 1. Table 1. Selected Crude Data Parameter Oil API Grade Viscosity (dry dead oil) Value - Well #1 14.20 3564 cSt @ 40C 1529 cSt @ 50C 735.7 cSt @ 60C 0-95% 41.48 Sm3/Sm3 0.07 mol% None detected 55-70C Value - Well #2 16.50 1569 cSt @ 40C 706,6 cSt @ 50C 357,5 cSt @ 60C 0-95% 53.60 Sm3/Sm3 0.13 mol% None detected 55-70C 2

BS&W Gas-to-Oil Ratio CO2 content H2S content Arrival temperature at FPSO

Rio Oil & Gas Expo and Conference 2012 Of particular note is the dead oil viscosity, with values exceeding 1000 cSt at the minimum expected arrival temperature of 55C for the heavier sample. It was indicated that the crude had emulsion forming tendencies; however no laboratory data were available to quantify the expected emulsion properties. Aspentechs Hysys process simulation software was used to match the dead oil viscosity data provided and the default Hysys correlation was used to predict the emulsion viscosities. The correlation predicted a maximum emulsion viscosity of over 5700 cP at the minimum arrival temperature. The value predicted by Hysys at each relevant location and operating condition was used for design of piping and equipment.

3. Impact of Low API and High Viscosity on Process Operating Parameters

The density of the crude directly affects the residence time required for any gravity-based separation operations as the smaller density difference between low API oil and produced water phases will require a longer settling time than would be needed for higher API crudes. The high viscosity of the oil has a similar influence on separation operations by reducing the settling velocity of water droplets in the highly viscous oil phase. Pressure drop in the piping also increases with viscosity and the presence of an emulsion magnifies this effect. One simple way to reduce required separator and piping sizes is to heat the production fluids, which will both lower the viscosity and help to break the emulsion. This is accomplished on P-63 through the use of product to feed cross exchangers and by direct heating with utility steam. The production fluids are heated by product oil upstream of the first separation stage and by produced water and steam upstream of the second separation stage. Electrostatic treaters remove the balance of the water to meet sales specification. Several factors played a part in determining the operating temperature of the treaters, but primary among these was the availabilty of steam from the existing hull boilers. The operating temperature of the second stage separation and the treaters was set at 140C, while the first stage separation operates at a varying temperature dependent on arrival temperature of the production stream and water cut. As much heat is recovered from the product as possible. 3.1 Inlet Production Piping The production piping from the tie-in at top of risers to the first production separator was subject to a total pressure drop requirement of no more than 5 kgf/cm2 (4.9 bar), maximum. This included static head loss along with frictional losses through piping and equipment. To meet this requirement, the piping length and number of bends had to be minimized. The exercise of optimizing the equipment layout, pipe size and piping runs required substantial effort and coordination amongst the piping designers, pipe stress engineer, mechanical and process groups to find a solution that was acceptable to all and met the contractual pressure drop requirement. The largest contributors to pressure loss were the section of piping from the riser tie-in to the pig launcher/receiver which was required to match closely with the flowline internal diameter (for pig transit), the static head due to elevation difference and the loss across the oil to oil heat exchanger located at the inlet to the separator. The static head and the drop across the exchanger were essentially fixed values so the solution had to be found in the piping. The process was iterative and ultimately the solution was achieved by making two significant decisions. First was to move the barred tee on the inlet piping as close as possible to the top of the riser tie-in and immediately increasing the line size on the normal flow path to the separator which significantly reduced the frictional losses. Second was running the main production piping directly from module to module rather than inward to the central pipe rack and back, which significantly reduced the piping run length. 3.2. Separator Selection and Sizing The Oil separation trains include two stages of gravity separation operating at 9 barg and 4 barg followed by pumping the liquid to the electrostatic treaters operating at 5 barg. Each of the separation stages inludes a pair of horizontal vessels consisting of a larger oil water separator below a degasser on the level immediately above. Given the low API gravity of the oil and the high viscosity, it is necessary to heat the production stream in order to achieve separation with reasonable residence times. Initial sizing of the separators based on simple gravity separation with typical inlet distributors and gas outlet demisters yielded separator sizes on the order of 4600mm ID x 26m S/S. The overall length of the separators, including the heads was approximately 29.5m. This presented an immediate problem in that the planned length of the separation modules was only 29m.

Rio Oil & Gas Expo and Conference 2012 An iterative process of evaluating the equipment configuration, particularly operating temperatures and overall system performance was undertaken with the assistance of vendors. Ultimately, the separators were significantly reduced in size through the use of proprietary internals supported computational fluid dynamics and the vendors experience. The final size of the separators is 4267mm ID x 15m T/T for the first stage separator and 4000mm ID x 15m T/T for the second stage separator. 3.3. Heat Exchanger Selection and Sizing Given the high viscosity of the oil and emulsion, shell and tube exchangers were given first consideration for the cross exchange and steam heating services. Initial estimates of the exchanger sizes and weights caused immediate concern and a shift in focus from shell and tube to plate type exchangers. Gasketed plate and frame exchangers were chosen for the cross exchange services and welded shell and plate exchangers for the final heating service (using steam as the heating medium). Because of the high viscosity on the emulsion side of the exchangers, wide channel plates were used. Optimizing the size of the plate and frame exchangers was very much trial and error requiring considerable time and effort on the part of the selected vendor. The high viscosity on the emulsion side required a larger flow area which resulted in lower velocities, which in turn reduced the heat transfer coefficients, which required more area. Ultimately, additional pressure drop was required to allow sufficient fluid velocity and acceptable heat exchanger sizes. Six units in parallel were required for each of the process cross exchange services. Figure 2 shows a screen shot from the 3D PDMS model with the oil to oil cross exchangers on the upper level of the right module (M11-HP separation) and the produced water to oil cross exchangers on the upper level of the left module (M12-LP separation). Each of the oil to oil cross exchangers had 450 mm ports, weighed approximately 18.2 Te dry, with dimensions of approximately 5.6m L x 1.4m W x 3.5m H; each of the water to oil cross exchangers had 450 mm ports, weighed approximately 17.8 Te dry, with dimensions of approximately 5.3m L x 1.6m W x 3.7m H.

Figure 2. Plate and frame exchangers on the separation modules The final heating was accomplished using shell and plate exchangers with steam as the heating medium on the shell side. The initial configuration considered was for four horizontal shell and tube exchangers. Deck space was not available without extensive modifications, so subsequently these were changed to vertical exchangers to save space. A secondary benefit to vertical shell and tube exchangers was that the heat transfer for the condensing steam was substantially better with a vertical tube bundle. In both of these cases, mechanical handling was a great concern as the tube bundles were heavy and long. There is no crane access at the exchanger location, so removal and handling of the bundle would have been difficult, requiring significant strucural modifications. Given the operating and design temperatures, 170C and 200C respectively, gasketed plate and frame exchangers were not a viable option. Shell and plate exchangers were investigated and chosen for purchase. Figure 3 shows the plate and shell exchangers in the 3D PDMS model with the equivalent 4-unit vertical shell and tube exchanger option overlaid. Table 2 shows a comparison of the exchanger weights for the options that were considered. Although the 4-unit vertical shell and tube exchanger 4

Rio Oil & Gas Expo and Conference 2012 option did offer a slight weight advantage, the removal and handling of the plate packs is much simpler and easier to implement.

Figure 3. Comparison of shell and plate (yellow) vs shell and tube (red) exchanger installation Table 2. Comparison of exchanger weights Configuration Horizontal, 4 units, S&T, type AES Vertical, 4 units, S&T, type AES Vertical, 4 units, S&T, type BEM Vertical, 2 units, S&T, type BEM Shell and plate, 5 units Weight/unit Te 35.7 10.7 6.4 12.4 6.4 Bundle weight Te 16.1 4.7 3.2 7.0 4.3 Total weight Te 142.8 42.8 25.6 24.8 32.0 Source Aspen Exchanger Design and Rating V7.1 Aspen Exchanger Design and Rating V7.1 Vendor Vendor As purchased

4. Power Generation
The generators on P-63 provide power for the FPSO, for the adjacent P-61 TLP, and for the downhole pumps. The peak demand has been estimated at approximately 84 MW. Typically, gas turbine driven electric generators have been used on Petrobras FPSOs. The Papa Terra crude has a low GOR and gas available for fuel is expected to fall short of what will be required sometime during year 7 or 8 of operation, at which time an alternative fuel and/or alternative power source would be required if gas turbines were the selected drivers. Three options were investigated and cost estimates prepared to determine order of magnitude differences to rank them against each other. First was the standard solution of providing dual fueled turbines capable of operating on marine diesel as well as gas. For this case a small distillation plant was included to produce liquid fuel of suitable quality to fire the turbines.

Rio Oil & Gas Expo and Conference 2012 Second was to provide steam boilers and steam turbine driven generation. The boilers would be fitted with dual burners capable of running on gas and/or a treated crude stream. For this case a crude treatment package to heat the crude for viscosity reduction was included. Third was an option to provide internal combustion engines that could be run on gas, marine diesel oil, or treated crude. For this case, a crude treatment package to heat (viscosity reduction) and centrifuge (fully de-water) the crude was included. The study determined that the first and second options differed in cost by only about 5%, whereas the internal combustion engine option offered a savings of 15-20% of the total installed cost. The internal combustion option was selected and power is being provided from six 18-cylinder engines in a 5+1 configuration, each rated for 17 MW. The engine-driven gensets are being provided in three modules each with two gensets and associated utility systems. They are capable of running on fuel gas, marine diesel oil or treated heavy crude. As the field matures and available fuel gas declines, individual units will be switched over to heavy crude as their normal operating fuel.

5. Gas Processing
The gas stream at Papa Terra is being compressed and dehydrated mainly for use as fuel gas. Excess gas during the early years of production will be further compressed and re-injected for possible future recovery. There is also the option to use the gas for lifting production as a backup to the electric downhole pumps. One requirement that came about based on the choice of internal combustion engine drivers for power generation was that the methane number of the fuel gas be greater than 80. The Papa Terra gas is relatively heavy and does not meet this requirement when taken directly off the separators. To meet this requirement, a Joules-Thomson package was included to chill the gas by auto-refrigeration and feed-product heat exchange, whereby the heavier components are condensed from the stream. The J-T package produces two gas product streams - one is a lower molecular weight (higher methane number) lean gas for use in the internal combustion engines and the other is a heavier rich gas stream which is used for gas blanketing, purge, and as fuel to the steam system in the hull. The gas temperature is lowered such that a moleculare seive dehydration system was required to reduce the water content/dew point sufficiently to avoid hydrate formation in the cooled stream.

6. Metallurgy
The NORSOK standard M-506, CO2 corrosion rate calculation model, was used to estimate the corrosion rates for carbon steel throughout the facility. Although the overall CO2 content of the production stream is relatively low at 0.13 mol%, there are certain locations within the facility where the local streams have significantly higher CO2 content, in particular the flash gas from the second stage of separation, where the concentration reaches over 5 mol%. There are also some areas with water condensing in the process stream, notably the compressor discharge coolers, where corrosion rates are calculated to be quite high and alloy pipe has been specified. The results of the calculations were tabulated and evaluated. Through use of increased corrosion allowances and/or corrosion inhibitor injection and the use of alloy only where required, suitable material choices were made.

7. Fit for Purpose Specifications

The P-63 facility is not subject to the full library of Petrobras company standards and specifications. Some were specifically identified in the contract, but in general the facility was intended to be designed as fit for purpose. The ultimate goal of this is to reduce overall project cost and there is evidence, both anectdotal and quantitative, that fit for purpose and vendor-standard specifications will in fact result in substantially lower project costs. One of the most common challenges that was faced when writing these fit for purpose specifications was many of the Brazilian engineers have worked for Petrobras, directly or as contractor or sub-contractor. There seemed to be a tendency to consciously or sub-consciously incorporate requirements that are costly and/or difficult to comply with, and are unnecessary to ensure a safe and operable facility. That is to say, that they have often spent years working within the framework of Petrobras standards and become accustomed to much more than fit for purpose as the normal way of doing things. Frequently, comments on documents submitted for review and approval reflected that previous experience. 6

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8. Local Work Content

As many companies doing work in Brazil and at other locations around the world will find, there is often a requirement for a certain percentage of the work is accomplished in the host country, usually measured by monetary value. Often, as was the case for P-63, there is a defined contractual method for making this calculation. Although AMEC Oil & Gas Americas was a sub-contractor and not directly subject to the content requirement, it must always be kept in mind. Particularly when dealing with vendors and/or other service providers, it is almost always preferable to work with companies that have in-country offices, service centers, manufacturing facilities and the like.

9. Comments
The crude produced from the Papa Terra field is heavier and more difficult to process than what has historically been produced offshore. As world demand for oil continues to grow, it is likely, if not certain, to become more common that similar heavy oils will be produced, as well as even more challenging reservoir fluids in more remote locations and harsh conditions. It will be important for AMEC Oil & Gas Americas to seek feedback regarding the operation of the facility after it is put into service in 2013. Such information could be used to evaluate the decisions that were made during the design effort and to help us to be successful on future projects.