27-03-2012, 10:47 AM
GSPC-NIKO
A B S T R A C T
In an Exploration and Production Company, a large number of operations starting from drilling, separating, storing, processing and selling of crude oil and hydrocarbon gases take place. Before processing of gas or crude oil it goes through a number of exploration phases. Processing and Managing the Exploration business is a big task. Huge costs are involved in the business and there are approvals needed at various stages right from the DGH as the central governing body till the local district authorities. The business is very complex.
The project report highlights the all different units which are working in GSPC-NIKO such as compressors, separators, heaters, dew point control unit, effluent water treatment plant, oil battery, loading and unloading bay, various gas wells, LBDP etc.
The project report also highlights process flow of gas and oil production from its entire unit in the plant. During this project we found some problems in engines of DPC unit. So all problems and their possible reasons with solution are mention in this project report. Project report also contains brief details of all faulty engines and working principle and process and all things.
I hope the project will be very useful for the company and new coming trainees. Nobody is god and humans only commit mistakes, i would heartily welcome any suggestions for further improvement in the project study.
Chapter 1
Introduction
1.1 About Niko Recourses Limited:
Niko Resources Limited is an international oil and natural gas exploration & production company. Niko Resources has assembled a diversified asset base designed to provide access to multiple high impact plays, a key component of Niko’s proven strategy. Other elements of the strategy include growth through the drill bit along with growth through opportunistic acquisitions, striving to be the low-cost producer in every basin in which we operate, and finally, dominating core focus areas through maintaining a large land base and local area knowledge.
Niko’s large, balanced portfolio of assets provides exploration, production and development opportunities for both natural gas and crude oil. Our Indian and Bangladesh production provides strong cash flows enabling us to fund our exploration activities in India, Indonesia, Kurdistan, Madagascar, Pakistan and Trinidad.
Niko Resources Ltd. was incorporated under the ABCA on March 27, 1987. On October 7, 1997, the Company's Articles of Incorporation were amended to delete the Company's class A shares and class B shares, to rename the Common Shares and to create a class of preferred shares. The Company's principal and registered office is located at Suite 4600, 400 – 3rd Avenue S.W., Calgary, Alberta, T2P 4H2. Niko Resources (Block 9) Limited is an indirect wholly-owned subsidiary of Niko with total revenues exceeding 10% of the consolidated revenues of Niko. Niko Resources (Block 9) Limited was incorporated and currently exists under the laws of Bermuda.
1.2 Niko Recourses Limited In India:
The Company has an interest in two producing oil and natural gas blocks (the Hazira Field and the D6 Block) and one producing natural gas block (the Surat Block) in India. Production is sold to various industrial users. Natural gas is distributed via owned and non-owned pipelines, Hazira oil is trucked to the customer and D6 oil is produced into a FPSO. During Fiscal 2011, customers purchasing oil and natural gas production from India accounted for approximately 17% and 69%, respectively, of total Company revenues. During Fiscal 2010, customers purchasing oil and natural gas production from India accounted for approximately 10% and 71%, respectively, of total Company revenues. There are also three non-producing blocks in India. Named "NEC-25", "Cauvery Block" and "D4 Block".
1.2.1 Hazira Field, India
Niko is the operator of the Hazira Field and holds a 33.33% interest therein. The field is located close to several large industries about 25 km southwest of the city of Surat and covers an area of approximately 50 square km on and offshore. In addition, Niko and GSPC have constructed a 36-inch gas sales pipeline to the local industrial area. Niko has constructed an offshore platform, an LBDP, a gas plant and an oil facility at Hazira. The Company has one significant contract for the sale of natural gas from the Hazira Field at a price of $4.86/Mcf expiring April 30, 2016. The commitment for future physical deliveries of gas under this contract exceed the expected related future production from the Company's total proved reserves from the Hazira Field estimated using forecast prices and costs.
1.2.2 Surat Block, India
Niko holds, and is the operator of, a development area in the 24 square km Surat Block located onshore adjacent to the Hazira Field in Gujarat State, India. The natural gas produced from the Surat Block is transferred to the customer via Niko's 6-inch pipeline to the customer's facility. The Company has a gas plant at the Surat Block. All of the production from the Surat Block is sold to one customer with a current price of $6.00/Mcf expiring March 31, 2013.
1.2.3 D6 Block, India
Niko has a 10% working interest in the D6 Block, with Reliance, the operator, holding the remaining interest. The D6 Block is 7,645 square km lying approximately 20 km offshore of the east coast of India. Production from the oil discovery in the MA field in the D6 Block commenced in September 2008 and commercial production commenced in May 2009. Six wells are on production and are tied into the FPSO, which stores the oil until it is sold on the spot market at a price based on Bonny Light and adjusted for quality.
1.2.4 NEC-25, India
Niko has a 10% working interest in NEC-25, with Reliance, the operator, holding the remaining interest. The remaining contract area comprises 9,461 square km lying offshore adjacent to the east coast of India. Exploration and appraisal drilling has been conducted on the block and, once commerciality is concluded, the Company expects to submit a development plan to the GOI.
1.2.5 Cauvery Block, India
The Company holds a 100% interest in the Cauvery Block, which is located onshore southeast India in the State of Tamil Nadu. The block is operated by the Company. The block covers 957 square km and a total of 915 square km of 3D seismic data have been acquired on the block. The Company has drilled four unsuccessful wells on this block. The estimated costs for the remaining well required under the Phase I work commitment is $2 million. The Company intends to relinquish the block.
1.2.6 D4 Block, India
Niko has a 15% participating interest in the D4 Block, with Reliance, the operator, holding the remaining interest. The D4 Block is 17,050 square km and lies offshore of the east coast of India in the Mahanadi Basin. Under Phase I commitments, 2,366 km of 2D seismic and 3,600 square km of 3D seismic have been acquired on the block.
1.3 The NIKO -GSPC Joint Venture:
The Head office ('Operating Partner') of Niko Resources Ltd. entered into a Joint Venture with Gujarat State Petroleum Corporation Limited ('GSPCL or JV Partner) for the exploration and development of oil and gas fields. Niko-GSPCL Joint Venture ('the Joint Venture or Contractor') has entered into production sharing Contract ('PSC'), each for 25 years, with the Government of India on September 23, 1994. Both the Companies have defined their respective rights and obligation with respect to the operations to be conducted under the PSC by executing Joint Operating Agreement ('JOA') on December 05, 1994.