1.
INTRODUCTION
What is oil and gas engineering? Oil and gas engineering is a field of engineering concerned with
the activities related to the production of hydrocarbons, which can be either crude oil or natural gas .
There are four main engineering which focus on maximizing economic recovery of hydrocarbons from
subsurface reservoirs which is, offshore engineering, subsea engineering, petroleum engineering and earth
scientist. Petroleum engineering focuses on estimation of the recoverable volume of this resource using a
detailed understanding of the physical behavior of oil, water and gas within porous rock at very high
pressure while earth scientist make research to gain knowledge and brings theory for engineers’ usage.
The combined efforts of geologists and petroleum engineers throughout the life of a hydrocarbon
accumulation determine the way in which a reservoir is developed and depleted, and usually they have the
highest impact on field economics. Petroleum engineering requires a good knowledge of many other
related disciplines, such as geophysics, petroleum geology, formation evaluation (well logging).
Before all, we want to give our credit to Mr. Ikhwani Uzair, as he had given us enough time and
references to guide us throughout this assignment. We hope this assignment satisfied your guide lines.
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Thank you 

2.
HISTORY AND RESEARCHES
In history perspectives the used of oil based product were recorded in the earliest writing of man
which is:
3000 BC
Sumerians use asphalt as an adhesive for making mosaics.
Mesopotamians use bitumen to line water canals, seal boats, and build roads.
Egyptians use pitch to grease chariot wheels, and asphalt to embalm mummies.
1500 BC
The Chinese use petroleum for lamps and for heating homes.
600 BC
Confucius writes about the drilling of 100-foot (30-meter) natural gas wells in
China. The Chinese build pipelines for oil using bamboo poles.
600-500 BC
Arab and Persian chemists mix petroleum with quicklime to make Greek fire, the
napalm of its day.
1200-1300 AD
The Persians mine seep oil near Baku (now in Azerbaijan).
1500-1600 AD
Seep oil from the Carpathian Mountains is used in Polish street lamps.
The Chinese dig oil wells more than 2000 feet (600 meters) deep.
1735 AD
Oil is extracted from oil sands in Alsace, France.
Early 1800s
Oil is produced in United States from brine wells in Pennsylvania.
1847
James Oakes builds a “rock oil” refinery in Jacksdale, England.6 The unit
processes 300 gallons per day to make “paraffin oil” for lamps. James Young
builds a coal-oil refinery in Whitburn, Scotland.7
1848 F.N.
Semyenov drills the first “modern” oil well near Baku.
1849
Canadian geologist Abraham Gesner distills kerosene from crude oil.
1854
Ignacy Lukasiewicz drills oil wells up to 150 feet (50 meters) deep at Bóbrka,
Michael Dietz invents a flat-wick kerosene lamp (Patent issued in 1859).
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1857
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Poland.

3.
1858
Ignacy Lukasiewicz builds a crude oil distillery in Ulaszowice, Poland.8
The first oil well in North America is drilled near Petrolia, Ontario, Canada.
1859
Colonel Edwin L. Drake triggers the Pennsylvania oil boom by drilling a well
near Titusville, Pennsylvania that was 69-feet deep and produced 35 barrels-perday.
1859
An oil refinery is built in Baku (now in Azerbaijan).
1860-61
Oil refineries are built near Oil Creek, Pennsylvania; Petrolia, Ontario, Canada;
and Union County, Arkansas.
Scientific researches
Scientist has defined oil and gas as follow:
“Oil and gas are called hydrocarbon because they are compounds of atoms oh hydrogen and
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carbons. Depending on the mixtures of HC molecules, it is differs on colors and composition”

4.
OIL AND GAS ENGINEERING DICIPLINES
Some of the disciplines in the industry arose as a result of offshore activity. These include:
Subsea Pipeline Engineer – Develops field architecture, flow line configurations and designs for subsea
development studies; Supports Preparedness Response Strategies and strategies for pipelines and jumpers
within the operating subsea facilities.
Offshor e Design Engineer – Performs structural engineering analyses and design for riser systems and
topsides structural modules in major projects development from the conceptual detail engineering and
construction stage. Undertake front-end engineering studies, as required, to identify and develop
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performance improvement changes.

5.
PROCESS AND DEVELOPMENT
EXPLORATION STAGE
EXPLORATION is about finding oil and gas fields. Main goal is to identify and deliver commercially
viable field development opportunities. The following geological and geophysical (G&G) activities would
take place:
-
Conduct seismic surveys
-
Process and interpret the seismic data and map the potential reservoir
-
Select exploration well locations
-
Drill and evaluate exploration well data
-
Core analysis to establish porosity and permeability
-
Logging data to determine porosity, water and hydrocarbon saturation
-
Production test data to determine flow rates and maximum production potential
-
PVT to allow reservoir fluid analysis and ascertain oil/gas quality and the shrinkage or expansion
factor
-
Build a computer model or the reservoir and identify and where possible major uncertainties by
further data analysis, seismic reprocessing etc.
APPRAISAL STAGE
Exploration phase of life cycle closely intertwines with the next stage of processing which is Appraisal.
The objective of APPRAISAL is to obtain information about the reservoir in order to make a decision
whether or not to proceed with development of the field. This stage comprises of the following activities:
-
Planning and execution of a data acquisition program of additional seismic
-
Reprocessing existing seismic data to obtain enhances results and the drilling of appraisal wells
-
Evaluation of the results from the seismic and appraisal drilling activities
-
Using the information from the seismic and drilling programs to update the computer reservoir
simulation models
Conduct initial conceptual field development planning and an Environmental Impact Assessment
５
(EIA) study of these conceptual plans
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6.
DEVELOPMENT STAGE
The initial phase of field development planning could involve the assessment of more than one
development option. Four components of development plan can be used to describe each option:
-
Reservoir: number, location, type of wells; assessment of oil recovery mechanism; assessment of
production over the development stage
-
Wells: the design of wells to meet production requirements
-
Facilities: process facilities, infrastructure, terminal/export facilities
-
Operating and Maintenance strategies: manning level, daily production level, support
requirements (for example is helicopter), supply vessels
PRODUCTION STAGE
Production stage is a phase targeting at bringing the well fluids to the surface and preparing them for use
in refinery or processing plant. All production and maintenance activities would be carried out to meet
strict safety and environmental policies and procedures. The main activities consist of the following:
-
Regulate production and injection to meet approved plans for the quantity and quality of product
-
Monitor and record all information to manage the reservoir, wells and facilities
-
This could lead to further reservoir development or modifications to the facilities
-
Plan and schedule all production and maintenance activities to minimize production deferment
and operating costs
Carry out maintenance to safeguards the technical integrity of all wells and facilities and ensure
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their availability over the life of the field.
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7.
DECOMMISSIONING/ABANDONMENT PHASE
The end of the life of the field is when it is no longer economic for the operator to continue production
(when the operating costs exceed the revenue from the sale of production). It is common around the world
that operator might abandoned the field prior to its depletion as a result of sale to other interested party.
Such as acquisition takes place between the super major operating company and independent oil company
when production declines to the level not commercially attractive to the super-major.
It is becoming increasingly common around the world that offshore facilities must be dismantled and
removed and the site restored to the original condition. The major activities during the decommissioning
phase are:
-
Plug and abandon well by putting cement plugs into the wells at various depths and remove the
well-head and casing to a depth of about 2 meters below the surface or seabed
-
Dismantle and remove the jacket and all facilities from the site, ensuring that there is no
contamination of the environment from any oil or waste material remaining in the process
facilities.
-
Conduct a final environmental impact study.
７
Restore the site to its original condition
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8.
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Sub sea

9.
Life Cycle

Life cycle of processing of oil field consist of 5 stages
1. Exploration
2. Appraisal
3. Development
4. Production
5. Abandonment
Oil Refineries
Oil refineries are the key to obtain hydrocarbon. Oil in deferent parts of the world contains
different proportions of the various types of hydrocarbon. There are refineries in many part of the
UK including Edinburgh, Liverpool and Milford Haven. North Sea oil is relatively high in
９
naphtha, which is used for making plastics while Malaysia’s petroleum
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10.
Petroleum Processing Stage
Before we go on to talk about petroleum processing, it is important to know something about
petroleum itself. Petroleum is called a fossil fuel because it is formed from the bodies of ancient
organisms – primarily one celled plants and animals. Contrary to modern myth, only a tiny fraction (if
any) of the molecules in crude oil are from dinosaurs. When these creatures died, their remains
accumulated at bottoms of ancient lakes or seas, along with sand and other sediments. Over time, a
combination of pressure, heat, and bacterial action transformed the deposits into sedimentary rock. The
incorporated organic matter was transformed into simpler chemicals, such as hydrocarbons, water, carbon
dioxide, hydrogen sulfide, and others.
The chemicals didn’t always stay put. If the surrounding rock was porous, liquids and gases could
migrate, either up to the surface or into a reservoir that was capped by impermeable rock or a dome of
salt. Today, when petroleum geologists look for oil, they actually are looking for structures that might be
traps for liquid hydrocarbons.
the hydrocarbon molecules usually are heavier. In China and South Africa, a significant amount of coal is
converted into synthesis gas, which is used to make chemicals and/or synthetic petroleum. In Canada, oil
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In solid sources of fossil fuel – coal, oil shale, oil sands and tar sands – the mineral content is higher and
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Figure 1 : Petroleum Reservoir

11.
sands are converted into more than 700,000 barrels- per-day of synthetic petroleum, which is sent to
conventional oil refineries in Canada and the United States.
Due to its origin, crude oil is a complex mixture containing thousands of different hydrocarbons.
As the name implies, hydrocarbons are chemicals containing hydrogen and carbon. In addition to
hydrogen and carbon, most crude oils also contain 1 to 3 wt% sulfur along with smaller amounts of
nitrogen, oxygen, metals, and salts. The salts can be removed with a hot-water wash (see Section 2), but
the other major contaminants – sulfur, nitrogen, oxygen and metals – are harder to remove because they
are linked to hydrocarbons by chemical bonds.
Crude oils from some wells are as clear as vegetable oil. Other wells produce green, brown or black
crudes. Some taste sour or smell like rotten eggs. Some flow as easily as water, others don’t flow unless
they are heated, and some are so solid they have to be mined.
Table 1 compares properties for 21 selected crudes. Traders characterize a crude by citing its source, API
gravity (a measure of density), and sulfur content. The source is the oil field from which the crude was
produced. The API gravity is a rough indication of distillation properties, which determine how much
gasoline, kerosene, etc., can be distilled from the crude. Along with other factors, the sulfur content
affects processing costs. Figure 3 shows that light crudes (those with high API gravities) often contain
less sulfur and nitrogen than heavy crudes, but not always.
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Table 1: Properties of 21 Selected Crude Oils

12.
Figure 2. Sulfur and nitrogen versus API gravity for selected crude oils
All refineries are different. They have different histories, locations, and market drivers.
Therefore, no single illustration can capture all of the possible combinations and permutations of the
processes that fit together to comprise an oil refinery. But despite their differences, most refineries
perform the seven basic operations named in the list below. There are seven basic operations in Petroleum
Processing.
• Distillation • Alkylation
• Asphalt • Catalytic reforming
•Catalytic polymerization
Protecting the Environment
• Solvent refining
• Steam/hydrocarbon reforming
Conversion Treating, finishing, blending
• Waste water treatment
• Carbon removal
Rearrangement
• Gasoline, kerosene and diesel
• Disposal of solids • Isomerization
• Hydrogen addition • Lubes and waxes
• Sulfur recover
１２
Reforming
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Separation Combination

13.
Figure below will explain to you how a simplified layout for a high-conversion refinery in the
United States. The diagram doesn’t show product blending and sulfur recovery units, but these are
almost always present. Lube-oil processing and hydrogen production units also may be present. The
depicted plant is configured for maximum fuels production. In a typical European refinery, the coker
would be replaced with a visbreaker. In many Asian refineries, where diesel demand is higher than
gasoline demand, the coker would be replaced by a visbreaker and the FCC by a hydrocacker.
Figure 3. Typical layout for an oil refiner y
Separation
Dist illat ion
In terms of throughput, the biggest unit in most plants is the Crude Distillation Unit (See figure
plant may be required.
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in a coker, hydrocracker, or FCC unit, an atmospheric tower, a vacuum tower, and a multi-column gas
13
below). Many downstream conversion units also use distillation for production separation. For example,

14.
At mospheric Dist illat ion
Crude oil distillation is more complicated than product distillation, in part because crude oils
contain water, salts, and suspended solids. To reduce corrosion, plugging, and fouling in crude heaters
and towers, and to prevent the poisoning of catalysts in downstream units, these contaminants are
removed by a process called desalting.
The two most typical methods of crude-oil desalting – chemical and electrostatic separation –
use hot water to dissolve the salts and collect suspended solids. In chemical desalting, water and
surfactants are added to the crude, heated to dissolve salts and other impurities, and then sent to a settling
tank where the water and oil separate. In electrostatic desalting, chemicals are replaced with a strong
electrostatic charge, which drives the separation of water from oil.
Figure 4 : Crude Distillation
Modern crude distillation towers can process 200,000 barrels of oil per day. They can be up to
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trays in the top section are replaced with structured packing.
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50 meters tall and contain 20 to 40 fractionation trays spaced at regular intervals. In some towers, the

15.
Before reaching the tower, desalted oil goes through a network of pre-heat exchangers to a fired heater,
which brings the temperature up to about 343°C. If the oil gets much hotter that this, it starts to crack and
deposit carbon inside the pipes and equipment through which it flows. The hot crude enters the
distillation tower just above the bottom. Steam is added to enhance separation; it does so largely by
decreasing vapor pressure in the column.
When hot oil enters the tower, most of it vaporizes. Unvaporized heavy fuel oil and/or asphalt
residue drops to the bottom of the tower, where it is drawn off. The vapors rise through the distillation
trays, which contain perforations and bubble caps (Figure 3). Each tray permits vapors from below to
bubble through the cooler, condensed liquid on top of the tray. This provides excellent vapor/liquid
contacting. Condensed liquid flows down through a pipe to the hotter tray below, where the higher
temperature causes re-evaporation. A given molecule evaporates and condenses many times before
finally leaving the tower.
Products are collected from the top, bottom and side of the column. Side draw products are taken
from trays at which the temperature corresponds to the cut point for a desired product. In modern towers,
a portion of each side draw stream is returned to the tower to control tray temperatures and further
enhance separation. Part of the top product is also returned; this “reflux” flow plays a major role in
controlling temperature at the top of the tower.
After leaving the tower, product streams go to holding tanks or directly to downstream
process units. Products can include heavy fuel oil, heating oil, kerosene, gasoline, and uncondensed
gases.
bubble-cap trays
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Distillation column with
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Figure 5 :

16.
CAREERS OPPURTUNITY
Once you have completed your Masters in Petroleum Geosciences and Engineering, you will be
equipped with skills and knowledge that enable you to solve future tasks and challenges related to the
exploration and production of oil and gas. There are great work opportunities within the traditional as
well as the future oil industry. Possible work places such as at international oil companies, consultancy
firms and service providers. A completed study also forms a good basis for a future career as a
researcher.
There’s a lot of job opportunity in this field such as piping layout designer, drilling engineer, subsurface
engineer, fitter, and many more.
Job Outlook
Employment of petroleum engineers is expected to grow 17 percent from 2010 to 2020, about as fast as
the average for all occupations. Oil prices will be a major determinant of employment growth, as higher
prices lead to increasing complexity of oil companies’ operations and require more engineers for each
drilling operation.

Environmental Engineering & Science – Research for crude oil well, and to make sure
environment is not affected too serious during the petroleum extracting process happen.

Reservoir engineers – Work to optimize production of oil and gas via proper well placement,
production rates, and enhanced oil recovery techniques.

Drilling engineers – Manage the technical aspects of drilling exploratory, production and
injection wells.

Production engineers, including subsurface engineers – Manage the interface between the
reservoir and the well, including perforations, sand control, down hole flow control, and down
hole monitoring equipment; evaluate artificial lift methods; and also select surface equipment
that separates the produced fluids (oil, natural gas, and water).

Chemical engineers – Manage the petroleum refining process and make sure the process run
well and effectively to reduce cost and chemical waste.
Forbes Magazine in 2010. Statistics taken based on employers that having Bachelor’s Degree in Petroleum
Engineering and worked at United States.
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The median annual pay for petroleum engineers was USD114080 in May 2010 according to
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Pay

17.
ANALYSIS, MARKETING AND ISSUES
PETRONAS at a Glance
PETRONAS, the acronymn for Petroliam Nasional Berhad, was incorporated on 17 August 1974 under
the Companies Act, 1965. It is wholly-owned by the Malaysian Government and is vested with the entire
ownership and control of the petroleum resources in Malaysia through the Petroleum Development Act,
1974. Over the years, PETRONAS has grown to become a fully integrated oil and gas corporation and is
ranked among the FORTUNE Global 500® largest corporations in the world.
Oil, Gas and Energy –National Key Economic Area (NKEA)
 Oil and Gas sector is expected to generate RM131.4 billion in Gross National Income by 2020, (5%
annual growth) in the period from 2010 to 2020.
 12 entry point projects (EPPs) have been identified under the oil, gas and energy sector.
 These EPPs have been developed across 4 themes to raise sector‟s output and meet energy demands
over the 10 year time frame. The themes are:
–Making Malaysia the number one Asian hub for oil field services, especially Deepwater
–Building a sustainable energy platform for growth
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–Enhancing growth in downstream
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–Sustaining oil and gas production

18.
Oil, Gas and Energy –12 Entry Point Projects

Rejuvenating existing fields through enhanced oil recovery

Developing small fields through innovative solutions

Intensifying exploration activities

Building a regional oil storage and trading hub (GIFT)

Unlocking premium gas demand in Peninsular Malaysia

Attracting MNCs to bring their global oil field service and equipment operations to Malaysia

Consolidating the domestic fabricators

Developing engineering, procurement and installation capabilities and capacity through strategic
partnerships and joint ventures

Improving energy efficiency

Building up solar power capacity

Deploying nuclear energy for power generation

Tapping Malaysia’s hydroelectricity potential
Formation of Malaysia Petroleum Resource Corporation (MPRC)
 An agency under the Prime Minister’s office
 Provide direction and advice to domestic and global oil and gas companies –maximize their
investment and growth opportunity
 MPRC takes a strategic long-term approach –Asia Pacific hub by 2017
 MPRC –set up Industry Consultative Council (ICC) –to address and resolve industry issues
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 MPRC –instrumental in launching of incentives

19.
Malaysia’s hydrocarbon reserves
stand at 20.56 billion
Barrels of Oil Equivalent (BOE)
with an average production of
1.63 million BOE per day
(Petronas report 2010).
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Producer in the world
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Malaysia is the 28th Oil

20.
OIL AND GAS PROSPECTS
Nowadays petroleum has been the most important source of energy to human daily life. It is
used to generate power on many kind of vehicles from small sizes such as motorcycle to the bigger size
like airplane, rocket and ship. Not only that, it is also used to generate electrical power at certain country
which still using petroleum energy to generate power station. So, there is too many prospects for oil and
gas user.
Malaysia has approximately 615,100 square kilometers of acreages available for oil and gas
exploration. Of these, 218,678 square kilometers or 36% of the total acreages are currently covered by
Production Sharing Contracts. Exploration drilling in Malaysia by the Production Sharing Contractors
has resulted in the discovery of 163 oil fields and 216 gas fields. Many significant discoveries were
made in shelfal shallow waters as well as in deepwater environments.
Increasingly, new discoveries have been made through new play-types such as fractured
basements, pinnacle reefs, low Sulphur content and turbidities. Application of new technologies have
also greatly contributed to exploration successes, especially in deepwater areas
Crude oil which is petroleum before being processed can be sold worldwide. This situation
happened in Malaysia which is Petronas extracted our local petroleum and sell to other countries. This is
because of our petroleum high in quality and less quantity of nitrogen that can prevent pollution and
slow down the breakage to the engine. This type of petroleum can be sold to the petroleum processing
company such as Shell, Exxon-Mobil, and many more.
Processed petroleum is petroleum that done undergo distillation process. This type of petroleum
can be classified into many types such as alkane, alcohol, diesel, kerosene, and much more. This type of
petroleum can sold direct for people’s daily usage. Example is kerosene is used to generate airplane
engine. At Malaysia, kerosene is also used to burn pelita for Malay festival called Hari Raya. Diesel used
to generate power for/busses and lorries while alcohol is used widely for perfume production.
Here we can conclude that there are too many prospects in oil and gas production. People who
involve in oil and gas industry basically get a large amount of salary. This is because petroleum is
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important source to human daily life.

21.
REFERENCES
Internet
http:///www.oilandgas.com
http://www.slideshare.net/fidan/introduction-into-oil-and-gas-industry-oil-part-1
http://www.slideshare.net/fidan/oil-gas-disciplines
http://www.slideshare.net/fidan/brief-introduction-into-oil-gas-industry-by-fidan-aliyeva
Books
1. Krishna G Bhattacharrya and Anup K Talukdar, Catalysis in Petroleum and Petrochemical
Industries, Narosa Publishing House. Mumbai, 2008
2. H. K. Abdel-Aal, Mohamed Aggour, M. A. Fahim, Petroleum And Gas Field Processing,
Marcel Dekker. New York, 2003
3. James H. Gary, Glenn E. Handwerk, Petroleum Refining Technology and Economics, Marcel
Dekker. USA, 2001
4.
Dr. Clifford Jones, The 2010 Gulf Oil Spill, Venture Publishing. UK, 2010
5. Paul R. Robinson, Petroleum Processing Overview, PQ Optimization Services Inc. Texas, 2006
People
1. Ir. Muhammad Rizal Bin Abdullah – Philips Malaysia Engineer
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2. Faridah Binti Nizarif – Petroleum Engineer at Foxboro Malaysia