describes different factor to build a petroleum complex

1. BUILDING A PETROLEUM COMPLEX
VIPUL KILEDAR(121445),SANTOSH KUMAR(121428),PANKAJ NISHANT
(121420)

2. Vision
The petroleum industry must be highly automated.
It also include profitability & sustainability.
It must be simpler and safe to operate.

3. Oil in India
 India had about 125 Million metric tonne of proven
oil reserves.
 India's crude oil reserves are located in the western
coast (Mumbai High) and in the northeastern parts
of the country
 offshore reserves lies in Bay of Bengal and in the
state of Rajasthan.
 ONGC Corporation is the largest oil company
accounting for roughly 75% of the country’s oil.
 Reliance Industries, a privately owned Indian
company, will also have a bigger role in the natural
gas sector

4. UP STREAM MIDSTREAM
DOWNSTREAM
Introduction to
Upstream
Reserves – Formation
and Importance
Production – The
First Step in Adding
Value
The Unconventional
Future of Upstream
Introduction to
Midstream
Processing – The
Next Step in
Adding Value
Transportation
Storage
Introduction to
Downstream
Refining –
Products and
Participants
Consumption –
The Final Step in
Adding Value
Marketing and
Retail

5. Upstream = E&P
The upstream segment of the business is also known as
the exploration and production (E&P) sector.
 deals with recovering and producing crude oil and
natural gas.
 The exploration sector involves obtaining a lease
and permission to drill.

6. Petroleum Exploration License (PEL) and Petroleum Mining
Lease (PML)
 PEL is granted for a period of 7 years in onland/ shallow
water areas
 And 8 years in deepwater and frontier areas for
exploration activities .
 PML is normally awarded for 20 years for producing
Hydrocarbons as per The Oilfields Regulation and
Development Act, 1948 P&NG Rules, 1959
 PEL / PML for offshore exploration and production is
granted by the Union Govt.
 In case of onland blocks, PEL / PML is granted by the
concerned State Govt. on the basis of recommendation
made by the Union Govt.

7. Drilling
Drilling is physically creating the “borehole” in the ground
that will eventually become an oil or gas well.
This work is done by rig contractors and service companies in
the Oilfield Services business sector.

8. Production
The production sector of the upstream segment maximizes
recovery of petroleum from subsurface reservoirs.
Production brings the oil to the surface.

9. An ‘Unconventional’ Upstream
Unconventional resources are considered by the petroleum
industry to be any resources extracted, or produced, by any
method other than the traditional vertically drilled well.

10. Midstream
As its name implies, the midstream segment encompasses
facilities and processes that sit between the upstream and
downstream segments.
Activities can include processing, storage and
transportation of crude oil and natural gas.

11. Processing.
Processing oil and gas liquids into marketable products is the
beginning of the midstream segment of the business
Field Processing
Field processing is the first phase of oil and gas processing,
starting in the onshore or offshore production field.

12. Field Processing
Measure the production rate
Separate the oil, gas, and water
Remove impurities
Temporarily store the crude or gas.
Here, surface facilities are designed and installed that

13. Fractionation
Fractionation plants, which remove natural gas liquids
(NGL) from the produced oil and gas are also a component
of the midstream activities.
These NGLs are used as blend components in a refinery and
used as fuel or feedstock in the manufacture of
petrochemicals.

14. Transportation
Pipelines
Marine Transportation:
 tankers or vessels
Land Transportation
 Land transportation methods include
pipelines, truck and rail.

15. Natural Gas Transportation
Natural gas, which flows at much higher pressure than
crude oil, is most often transported in large-diameter
pipelines called transmission lines.

16. Pipelines, Trucks, and Railroad
While pipelines are the safest and most efficient way to
transport oil and gas, trucks and rail are more flexible
in terms of timing and destination.

17. Storage - Crude Oil
• bulk terminals
• refinery tanks
• holding tanks
Storage
facilities for
crude oil and
refined
liquids
include:

18. Storage - Natural Gas
Because of its extremely high pressure, natural gas must be
stored in underground reservoirs until it is ready to be
transported to market.

19. Downstream
Processing, transporting and selling refined products made
from crude oil is the business of the downstream segment
of the oil and gas industry.

20. Key downstream business sectors
include:
• Oil Refining
• Supply and Trading
• Product Marketing & Retail

21. Petroleum Products
Light petroleum products
Medium petroleum products
Heavy petroleum products
The resulting petroleum products are often classified as

22. Light Products
Gasoline (or petrol)
• Naphtha - used as a solvent or paint thinner.
Liquid petroleum gas(LPG)

23. Medium Products
Middle Distillates
Diesel fuel
Kerosene and related jet aircraft fuels

24. Heavy Products
Fuel oils
• Lubricating oils
• Paraffin wax
• Asphalt and tar
• Petroleum coke

25. Consumption

26. Marketing and Retail
Product marketing is the business of finding and supplying
customers.

28. Cost of building up an petroleum complex
New Builds vs. Upgrades
Oil refining is a capital-intensive business.
Planning, designing, permitting and building a new medium-sized refinery is a 5-7 year
process, and costs $7-10 billion, not counting acquiring the land.
The cost varies depending on the location (which determines land and construction
costs† ), the type of crude to be processed and the range of outputs (both of the latter
affect the configuration and complexity of the refinery), the size of the plant and local
environmental regulations.
The cost of the now shelved project by Irving Oil to build a second 300,000 bpd
refinery in Saint John, NB was estimated at $8+ billion.
The projected cost of the proposed 550,000 bpd Kitimat Clean refinery is $13 billion ..

29. Examples of an petroleum complex
Jamnagar refinery is the world's largest oil refinery with an aggregate capacity of 1.24
million barrels per day (bpd). The refinery complex is located at Jamnagar in Gujarat,
India. It is owned and operated by Reliance Industries.
The refinery consists of hydro-desulphurisation, catalytic reforming, fluid catalytic
cracking and delayed coking units. It also includes sulphur recovery, hydrogen
generation, merox treating and TAME (Tertiary Amyl Methyl Ether) units.
The refinery complex is spread across 7,500 acres and has more than 50 process units
which refine the basic feedstock, crude oil to obtain various finished products.The
world's largest refinery took three years to complete and involved about $6bn of
investment