PAKISTAN PETROLEUM LIMITED

SUI GAS FIELD, BALOCHISTAN

4 WEEK INTERNSHIP REPORT

SUBMITTED BY: RAFFAY BIN RAUF

Introduction to Pakistan Petroleum Limited

The pioneer of the natural gas industry in the country, Pakistan Petroleum Limited (PPL) has been a frontline player in the energy sector since the mid-1950s. As a major supplier of natural gas, PPL today contributes over 20 percent of the country’s total natural gas supplies besides producing crude oil, Natural Gas Liquid and Liquefied Petroleum Gas.

The company’s history can be traced back to the establishment of a public limited company in June 1950, with major shareholding by Burma Oil Company (BOC) of the United Kingdom for exploration, prospecting, development and production of oil and natural gas resources. In September 1997, BOC disinvested from the Exploration and Production (E&P) sector worldwide and sold its equity in PPL to the Government of Pakistan (GoP).

Subsequently, the government reduced its holding through an initial public offer in June 2004, which was further decreased with the initiation of the Benazir Employees Stock Option Scheme (BESOS) in August 2009 when PPL employees were allotted 12 percent shares from the government’s equity. More recently, GoP further disinvested its 5 percent shares, around 3.55 percent of the total paid-up capital, in PPL through Secondary Public Offering in 2014.

Currently, the company’s shareholding is divided between the government, which owns about 68 percent, PPL Employees Empowerment Trust that has approximately 7 percent — being shares transferred to employees under BESOS — and private investors, who hold nearly 25 percent.

PPL has acquired 100 percent shareholding of MND E&P Limited, a company incorporated in England and Wales. The name of the subsidiary has been changed to PPL Europe E&P Limited.

Over the years, PPL has developed a reliable foundation and infrastructure for providing clean and safe energy through sustainable exploitation of indigenous natural resources while adhering to best practices of corporate governance and employee health and safety and constraining the ecological footprint of its operations.

PPL operates six producing fields across the country at Sui (Pakistan’s largest gas field), Adhi, Kandhkot, Chachar, Mazarani and Hala and holds working interest in fifteen partner-operated producing fields, including Qadirpur the country’s second largest gas field.

PROCESSES BEING CARRIED OUT IN PAKISTAN PETROLEUM LIMITED

Exploration Department: This department is comprising geologists which explore different parts of the Dera Bugti district for possible sources of gas. They test different types of area and if there is any possible chance of discovery of a well then forward it to SUI Development. Exploration department is the upstream process in PPL.

Sui Development: The purpose of this department is to handle the drilling operations on the marked positions which the exploration department has suggested. Drilling operations will be performed on the marked spots and then when the gas has been extracted then the workforce seals the well and hands it over to the production department. There 3 sites from which gas is being extracted. Sui Main Limestone (SML) supplies most of the gas of around 400 mmcfd, Sui Upper Limestone (SUL) supplies around 40 mmcfd and Habib Raheel Limestone (HRL) is used rarely for extraction. All the wells comprise of these 3 main supplies.

Production Department: This department is responsible for supplying the raw gas from the wells to the plants. To setup distribution pipelines from the wells is the purpose of this department. Perfect working condition, maintenance, monitoring and control of the wells and their pipelines is the objective of this department. Engineers on daily basis visit wells to check for any problems and make a report on them. SUL, SML and HRL all have different properties of gas, so they are sent to different plants to be converted in to usable gas.

De-Hydration Plant: Raw gas coming from Sui Upper Limestone does not have any toxic gases, so it is considered as Sweet Gas. But it still has moisture content in it, due to which, it is sent to the de-hydration plant for releasing the moisture content the gas is then made into usable or sales gas.

Sui Field Gas Compression Station (SFGCS): This plant was commissioned in 1985 because with the passage of time the pressure of raw gas coming from the wells had reduced from what it was in 1952. As the purification plant, in which gas is purified of impurities, requires a pressure of at least 65 bar, the SFGCS project was commissioned. The main purpose of this plant is to compress the incoming gas so that the design parameters of the equipment in the purification plant can be satisfied.

Purification Plant: The purpose of this plant is to purify the raw gas coming from Sui Main Limestone (SML), as the raw gas has impurities such as Hydrogen Sulphide (H 2S), Carbon Dioxide (CO2) and Water (H2O). For the gas to be used as a source of energy it should not possess such impurities. This plant does the downstream processes and provides sales gas according to the customer’s specifications. PPL’s customers are Sui Northern Gas Company Limited (SNGPL) and Sui Southern Gas Company Limited (SSGPL).

Sales Gas Specifications:

H2S --- Hydrogen Sulphide --- Not more than 16 ppmCO2 --- Carbon Dioxide --- Not more than 3 mole %Oxygen --- O2 --- Not more than 0.2 Mole % Calorific Value --- CV --- Not less than 950 BTU/SCFWater --- H2O --- Not more than 7lbs/ MMscfTemperature --- T --- Not more than 130 FPressure --- P --- Maximum 1050 PSI G

5S Methodology being followed in PPL: Seiri Sorting Seiton Set in Order Seiso Shining Seiketsu Standardize Shitsuke Sustain

Systems, Administration and Planning (SAP):SAP ERP has been implemented in the entire organization of PPL since 2004. Due to which the office environment quite much of a paper free environment. If any purchase requisition from the store or any maintenance work order needs to be made then it can be done easily and in a quick manner.

SAP is an enterprise resource planning tool with which each procedure for any type of work order is followed through a systematic set of steps. With the SAP software, a track of the entire supply chain is maintained and information is easily shared in the entire network of PPL.

Stores Department:

An organized category wise indexing system is being observed for the storage items which makes it very easy to trace any item required. Whenever any item is required then a Purchase Requisition is generated which fulfills the requirement of products. There are 2 types of items ordered, one is Non-scheduled item (ND) which is only ordered when someone gives a request for something. The other is Periodic scheduled item (PD) of which a quantity has to be maintained always and is ordered on schedules. There are 5 stores in the entire Sui Field situated at different locations.

Quality, Health, Safety & Environment Department (QHSE):

The QHSE department is responsible for the implementation and guidance of safe working habits for the employees in the Purification Plant and Sui Field Gas Compression Station. To provide each and every employee Personal Protective Equipment (PPE) and ensure that they are being used by everyone inside plant premises, is the sole purpose of this department.

Emergency evacuation plans, emergency preventive plans and assembly points are all decided by the QHSE department. Training of employees is being done by the Health & Safety engineers to ensure that chances of accident occurrences are reduced. Each and every person has to go through an induction by the QHSE department whenever a person visits the plant for the first time, so that the person has an understanding of how to move about in an industrial area and does not get harmed in any way.

Personal Protective Equipment that is provided by the QHSE department are Coverall, Safety Helmet, Safety Shoes and Ear plugs. All these equipment are compulsory for everyone to be worn while working on the plant premises. Hazardous zones are defined in the plant premises according to the hazard levels of the area. Smoke detectors, fire extinguishers and gas detectors are installed for prevention and handling of emergencies. Pakistan Petroleum Limited is OHSAS 14001 certified due to the compliance of such HSE policies.

Planning Department:

The purpose of the planning department is to make annual work plans for the maintenance of machinery equipment installed in the plant. Preventive maintenance schedules are made according to the Original Equipment Manufacturer (OEM) Standards.

According to operating hours the machines are maintained whenever they reach their maintenance time periods as they operate 24 hours per day. Contracts are awarded by the planning department whenever there is maintenance to be done on any machine equipment. When the planning department receives information that the operating hours of a machine are to be fulfilled then a work order is generated which is then sent to the maintenance department.

An annual budget is also generated by this department for the maintenance expenses on the particular machines and then it is sent for approval on a yearly basis. If the maintenance costs of any equipment exceeds its capital value then a request for new equipment is generated.

Administration Department:

The administration department is responsible for dealing with the labor force and all the petty issues that are involved with the work force. Issuing security passes, forwarding leave applications, dealing with the security force of the plant are some of the daily work assignments of the administration department.

This department is also responsible for messes in the Sui Field and the related work procedures taking place in the messes. The maintenance of the messes, the issuance of salaries to the work force at the messes, the provision of essential items and equipment that are used on a daily basis at the messes.

It is a form of co-ordination center for all the departments situated in the plant premises. The administration department of the Sui Purification Plant and Sui Field Gas Compression Station usually work in the same way. This department serves as an administrator for all related-to-work and not related-to-work issues.

Laboratory of Purification Plant:

To maintain the required standards of processed gas and assure the quality of process auxiliaries, this department performs a series of different tests on daily basis such as analysis of treated water and processed gas.

The purpose of this department is to check for impurities in the incoming gas and also the purified gas that is being sent to our customer. Hydrogen Sulphide (H2S) is the bi-product of the purification process of the gas so it is to be checked that traces of this toxic gas do not remain in the gas that is being transmitted to our customer.

It is this department’s responsibility to check that the gas is purified according to the given parameters as also there are other acidic gases coming along in the pipelines. A daily analysis of the gas is done and the information is then kept in a folder by the name of “Sui Gas Purification Plant Laboratory Analysis & Operational Information” which is available in soft copies as well as a hard copy.

Testing is being done of the percentage amount of Mono-Ethanol Amine (MEA) and Tri-Ethylene Glycol (TEG) present in the sales gas.

Technical Services and Inspection:

The main purpose of technical services is to observe and follow through with the operational inspections of the equipment in the plant. The Inspection section’s responsibility is to follow through with the maintenance inspections. This department generates reports accordingly as problems arise and are being solved. The purpose of this work method is for sectional activities so that proper system can be made for organizing, collecting data.

Water Treatment Plant:

The purpose of the water treatment plant is to provide de-mineralized water and also soft water for use by the boilers installed in the boiler area. The de-mineralized water hence does not damage the boiler lines and prevents it from rust and corrosion which will reduce the life of the boilers.

This water treatment plant is assigned to reduce the conductivity of water which is done by the de-mineralization process. Short-term shutdown take place in this plant for 30 to 40 minutes after every 24-48 hours for the change of filters.

The process of de-mineralization is being done by a Reverse Osmosis plant EU ICR system which is designed to purify water by the process of reverse osmosis with which 97-98 % of the dissolved ions and approximately 99% of contaminants are removed.

All machines are equipped with Grundfos Multi-Stage Centrifugal Pumps. These pumps are designed to deliver consistent high-pressure flow ideal for membrane system operation.

A neutralization pump is installed which is used to mix the acidic liquids, coming out as the bi-product, with caustic acid so that the drained out liquid is neutralized and then drained out.

Power House of Purification Plant:

The power house is responsible for providing electrical power to the entire Purification Plant, the residential messes and also to the entire Sui Gas field which includes the main offices.

Gas turbine generators are being used to provide electricity to the field. Steam turbine generators are being used to provide electricity for plant operations. Most of the turbines are axial-flow single shaft.

Diesel generators are used for stand-by in case that one of the gas turbine generators does not work. 4000 hours is usually the operating time of a generator after which the generator is then

shut-down for maintenance. After 32000 hours the generator is completely overhauled and the engine is replaced.

Electrical Department of Purification Plant:

The purpose of the electrical department is the maintenance of electrical components fitted in the power house with the generators. It is this department’s responsibility to ensure proper efficient working of the transmission lines which are providing power to the Sui Field and also to the purification plant.

This department is divided in 2 sections, one is electrical maintenance and the other is electrical works. When overhauling of generators is needed to be done then the electrical department has to isolate the generator and provide electrical assistance when overhauling is being done and completed.

Un-interrupted Power Supply (UPS) is also under the responsibility of this department, as it cannot be afforded for the plants electrical equipment to be shut down for even a minute as then it would make a problem in the gas supply for the entire country.

Instrumentation Department:

The instrumentation department is responsible for providing equipment for the trouble-shooting of the electrical department.

Control panels installed in all the departments are for monitoring and control of performance parameters so that the process operations can be kept within optimum performance zone. Commissioning of control panels for the power house, process area and boiler area are all done by the instrumentation department. Their main objective is to keep all instruments (like temperature control valve, pressure control valve, level transmitters etc.) in perfect working condition.

Boiler Area of Purification Plant:

The boiler area consists of 14 boilers, out of which 6 are in operation, 2 are on standby and 1 is being overhauled. The purpose of the boiler area is to provide steam to the steam generators in the power house for the generators to function properly and provide electricity to the plant. The boiler’s maintenance is done once a year when the chief boiler inspector comes and examines the boilers and then the boiler is overhauled accordingly.

Process Description: The demineralized water coming from the water treatment plant is fed to de-aerators by means of transfer pumps. The water flow rate is controlled by level controls installed on steam condensate surge tanks. Then the flash condensate is fed to the condensate run down vessel.

The demineralized water pumps are designed to pump demineralized water from surge tanks to de-aerators.

Process Area of Purification Plant:

The process area has 8 purification banks and 6 de-hydration units which are to be monitored and controlled. This department hold the authority to authorize any services for the Purification banks and also the de-hydration units. Shift engineers on every 8 hour shift inspect the units physically and accordingly authorize the maintenance and service departments to take preventive actions. Performance parameters of the units are displayed on screens inside the process area control room.

This department is responsible for the entire operations and analysis of the Purification banks and de-hydration units. This department is the main station where acidic gases and water are separated from the raw (sour) gas. The monitoring of parameters and controlling of the required S.O.Ps for the sales gas is the responsibility of the process area engineers. The production of sales gas on average is 350 Million standard cubic feet per day (MMscfd).

Workshop of SFGCS:

Purpose of the workshop is to repair any problematic parts which arise from the equipment installed for the processes of SFGCS. It is a manufacturing shop which does different functions such as welding, machining, shearing, fabrication and maintenance activities. Some of the Major Machines installed are: lathe machine, rolling machine, guillotine machine, heavy duty lathe, water distillation plant, metal degreaser, hacksaw machine and hydraulic press unit.

Instrument Department of SFGCS:

Electronic instruments for monitoring and control of operations of SFGCS compressors are commissioned by the instrument department. Control panels have been installed for SUL line and SML line which monitor different performance parameters. All types of sensors that are installed in offices, equipment and on pipelines are centrally monitored in the control room with the help of the control panels. Pressure transmitter, pressure differential transmitter, flow transmitter, level transmitter and pressure control valves are some of the sensors which are installed and maintained by the instrument department.

Electrical Department of SFGCS:

The main purpose of the electrical department is to monitor and control the power generators and its power distribution system in SFGCS. There are 9 sub-stations which are controlling and monitoring the parameters of the different generators. The power is transmitted to 14 transformers which then transfer power to the different auxiliaries of the SUL and SML compressors. The generators are producing 6600 volt which is then stepped down to 415 volt for use by the motors.

4 gas turbine generators are installed of 3.2 Mega Watt each. 7 gas turbine compressors of 6.2 Mega Watt each, are installed for compression of gas coming from the SML pipeline, of which 5 are operational at one time. Then there are 3 motor driven compressors for the SUL line, which were installed in 1995 and have power rating of 2.2 Mega Watt. The auxiliaries that are installed for the gas turbine compressors, in total require 400 KW load.

Installation and maintenance of anti-explosive emergency lights is also the responsibility of the electrical department.

Operations Department:

The purpose of the operations department is to monitor and control the performance parameters of SUL and SML gas headers, the turbo compressors, turbo generators, and SUL compressors.

The operations department works inside the control room where the workforce is managing the entire operational procedures. Fuel gas for the gas turbine generators is being provided from the SUL gas header which is coming from the de-hydration plant directly to the gas turbines. There are 7 units installed for the monitoring of SML compressors and 4 units installed for the monitoring of SUL motor driven compressors. The auxiliaries that are installed for the generators, compressors are also being monitored by the operations department.