Bahregan Sells Oil Despite Sanctions
By Mohammad Afshin
The Iranian Offshore Oil Company (IOOC), a subsidiary of National Iranian Oil Company (NIOC), is among the biggest offshore producers of oil. IOOC is tasked with recovery from oil and gas fields off Persian Gulf and the Sea of Oman. The main regions operated by IOOC in the Persian Gulf include Bahregan, Kharg, Siri, Lavan, Kish and Qeshm oil centers.
Bahregan Oil Center (BOC) is among Iran’s important oil regions. It covers Bahregansar, Hendijan, Soroush and Norouz oil fields.
Here we offer a general review of oil activities in BOC:
Bahregansar & Hendijan Fields
Bahregansar oil field is located 56 kilometers west of Bahregan region. Bahregansar platform was bombarded many times by Iraqi warplanes during years of imposed war (1980-1988).
After the end of the war, the necessary arrangements were made for the reconstruction of the field and renovation of offshore and onshore installations. The new installations were launched in 1989.
Bahregansar is the first and the oldest oil platform in the Persian Gulf to have been administered by Iranian engineers following the 1979 Islamic Revolution. The new Bahregansar platform is an advanced one which has been designed and constructed by Iranians. It is now operating alongside the older platform. Hendijan field is located 55 kilometers west of Bahregan region. It has 9 wells on its satellite platforms.
Norouz Field
Norouz oil field, which was almost destroyed during the imposed war, is in BOC. At the beginning, it had 14 active wells. After the end of the imposed war, onshore and offshore installations were reconstructed and the development and renovation of Norouz was planned within the framework of a buyback contract which involved drilling of 17 new horizontal wells, a production platform, a well platform and a living quarter platform.
The old Norouz oil platform is among the old platforms in the Persian Gulf. The new platform was built in cooperation with Shell several years ago. Iranian engineers are currently taking care of this new platform.
Ali-Reza Afrasiabi, director of Norouz platform, said crude oil recovery from Norouz field started more than five decades ago.
“In the past, oil from the old Norouz field used to be carried to Bahregan through pipeline. But after development, we no longer had any production in the old Norouz and it continued until Shell left,” he said.
“After Shell left, it was felt that the level of production could increase and that is why we reopened some of wells in the old Norouz and currently four wells from old Norouz are producing 7,000 to 8,000 b/d of oil,” he added.
Afrasiabi said 35 people are present in each working shift in Norouz platform, adding that most of them had received training by Shell. He added that IOOC has in recent years provided training for the staff.
He also touched on the difficult conditions the platform experienced after Shell left, saying: “Reparation of fire water pumps was one of major measures handled by Iranians. Moreover, gas compressors were launched and flaring of associated gas was prevented.”
He said 40 mcf/d of gas used to be flared when Shell was present, adding that this figure has now fallen below 8 mcf/d.
Soroush Field
One of the largest platforms in the world in terms of crude oil processing is Soroush oil platform in Soroush field. Known to be among the most advanced platforms in the world, it is located some 110 kilometers from Bahregan region.
Soroush field was bombarded during the Iraqi war and its oil production was halted due to damage inflicted by Iraqi fighter jets. In March 2000, a buyback contract was signed for the development and renovation of this field. The development project involved drilling of 10 horizontal production wells, two wells for injecting contaminated water into the reservoir, two well platforms, one production platform, one living quarter platform and a floating crude oil storage and export system with a capacity of 2.2 mb/d. This project became operational in March 2002.
Hamid-Reza Barzouki, deputy head of Soroush platform, said the crude oil in this field is ultra-heavy oil which could be processed by certain refineries.
“The refineries that could use this oil would produce valuable products,” he said.
He said Iran is exporting five types of crude oil from Soroush, Forouzan and Norouz fields.
“During the time of sanctions, the sale of Soroush and Norouz crude oil did not fall due to its reputation in the world,” he added.
Barzouki said the unique features of Soroush and Norouz oil have had big advantages for Iran’s crude oil sales.
Barzouki said Soroush is among few centers where no flaring is under way, adding that Soroush platform exports its oil and gas.
He said heavy crude oil desalting is a difficult job, adding: “In other platforms, oil is extracted and processed before being sent offshore for desalting, but in Soroush, all this is done altogether.”
“When this platform was launched and Shell delivered the project to us, it had not managed to resolve some important issues including desalting. They picked a group of consultants for this purpose, but they failed again. Finally, they left Iran due to political reasons,” said Barzouki.
“Over this time, our own forces changed the plans and formulae and finally managed to resolve the desalting challenge in Soroush and Norouz oil fields. Several months after Shell’s departure, Iranian specialists resolved this problem,” he added.
Drilling New Wells
Mohammad-Ali Rahimieh, head of BOC, said from among Hendijan, Bahregansar, Soroush and Norouz fields, the oil produced from Hendijan and Bahregansar are blended to be sent to onshore facilities for processing and storage.
He also said that the oil produced by Soroush and Norouz fields is exported after being processed.
“The quality of oil produced in these four fields is such that it has always its own customers and even during the time of sanctions, the sale of oil from these fields has not been disrupted at all,” he added.
Rahimieh aid plans have been under way for increased production. He said that new wells expected to be drilled in all four fields.
“In any oil field producing oil, decline will naturally occur and drilling of new wells or repairing oil wells in order to prevent natural increase or decrease in production will happen,” he said.
Rahimieh added that new wells are currently being drilled by two drilling rigs in Hendijan and Bahregansar regions.
Hendijan Field and Two Platforms
Rahimieh said a number of wells are expected to be drilled in Hendijan field, adding: “Two platforms are currently under construction by ISOICO in Bandar Abbas Yard. It is being done in parallel with the drilling of wells.”
“In the place where wellhead platform 7 should be installed, a jacket is being installed, but no topside has yet been installed,” he said. “In this region, 7 wells have been drilled and all of them are producing. One of the best IOOC wells is located in this region.”
Rahimieh said: “In wellhead platform 8, two wells have been spudded and there is plan for the drilling of several wells. The jacket has been installed, but no topdrive is installed.”
Oil Delivery from Azadegan to Bahregan
Rahimieh said oil produced in Azadegan field is planned to be carried to Bahregan via pipeline, adding: “In Bahregan, four three-million-barrel facilities have been constructed and installed, two of which have a 1-million-barrel capacity and two others are 500,000-barrel capacity.”
He said that these facilities are being used because they have been constructed ahead of schedule.
“But as soon as Azadegan’s oil reaches Bahregan, these facilities will be used for storing Azadegan oil,” said Rahimieh.
Domestic Manufacturing
Rahimieh said the period of sanctions was the start of move towards domestic manufacturing of equipment and parts required in the petroleum industry.
“Due to the imposition of sanctions against Iran’s petroleum industry, many foreign companies refused to sell us equipment and parts,” he added.
He said that the sanctions resulted in trust in domestic manufacturing companies. Rahimieh said pumps and its components are currently being manufactured by Iranian companies in Ahvaz, Isfahan and Tehran. He said all this equipment is of high quality and that electroengines required in the petroleum industry are supplied by a company based in the city of Mashhad.
He said that domestic companies boosted their manufacturing capabilities due to support provided for them, adding that most equipment could be procured domestically.
Rahimieh said Iran still depends partly on foreign companies for turbines, expressing hope that Iran would become self-reliant with the help of domestic companies.
Renovation of Platforms
Rahimieh underscored the necessity of reconstructing and renovating oil platforms, saying: “In the Persian Gulf region, due to high humidity, maintenance of oil platforms is of high significance and ignoring the platforms would cause corrosion. Platforms in Bahregan oil center are no exception.”
He said that tender bids are to be offered for painting old platforms in Norouz and Bahregansar, adding that renovation of two wells in Soroush platform is also to be put to tender.
Tough Job on Oil Platforms
Referring to the difficulty of work on oil platforms, Rahimieh said: “In some of oil platforms, there are many stairs and the staff have to go them up and down several times a day. On the long-term, that would harm their knee joints.”
He said he has worked on oil platforms for 12 years, adding: “Walking on iron is harmful and those working on oil platforms will suffer physical damage.”
Persian Gulf SFU
Rahimieh said Persian Gulf Floating Oil Storage Unit (FSU) is the largest terminal built in the world, adding that heavy crude is extracted from Soroush and Norouz oil fields before being processed and exported through by this FSU. He said that there are 21 storage tanks in this FSU.
He said this FSU was built by a South Korean company. He added: “The Korean company manufacturing the FSU has so far met all its obligations and there is only one problem with the metering system of this vessel. After its reparation, it should be endorsed by the Export Supervision Office.”
“At present, the problem with the metering system does not cause any disruption in exports and after this system is launched, measurements will be done inside the Persian Gulf FSU,” said Rahimieh.
Regarding Sourena FSU, he said: “At present, no oil is loaded on Sourena and Persian Gulf FSU has already replaced it.”
He said Sourena will be either overhauled or auctioned off.
6mb Oil Sale in 4 Months
The 2.2-million-barrel floating oil storage unit (FSU), dubbed the Persian Gulf, came on stream in Soroush oil region early this year.
The FSU has the capacity to take in some 200,000 barrels per day of heavy crude oil produced in Iran’s offshore oil fields of Soroush and Nowruz.
The floating terminal has a length of 337 meters, a width of 60 meters and a height of 33 meters.
The construction of FSU was over in 2011 and was installed after arriving at Iran’s waters. The launch of the FSU was delayed for two years due to restrictions imposed on Iran by the United States and the European Union. However, the FSU was launched following a series of complicated and tough operations by Iranian and Korean experts. The FSU is equipped with advanced fire extinguishing system and sophisticated systems dealing with H2S.
Since its inauguration, no life-threatening incidents have been reported on this FSU. This advanced FSU can accommodate 80 people and most of its functions are done automatically. Training of Iranian experts and specialists and indigenization of advanced FSUs are the most important achievements of the construction, installation and operation of Persian Gulf FSU for Iran’s petroleum industry.
Moreover, increased production from Soroush and Norouz oil fields, higher precision in oil export metering with the help of new advanced systems, using the most advanced storage unit, high safety and avoiding environment pollution of the Persian Gulf are among the most important measures undertaken by Iranian engineers for the first time in the country.
Mehdi Amir-Khosravi, deputy head of Persian Gulf FSU, said the contract for the construction of Persian Gulf FSU was signed with South Korea’s Samsung in 2008.
“After its construction, the FSU was moved to this region. Now nearly four months after its inauguration, 12 loadings have been done there,” he said.
Amir-Khosravi said 6 million barrels of oil have so far been exported from Soroush and Norouz fields. He said 3.1 million barrels of oil from Soroush and 2.9 million barrels from Norouz have been delivered to Chinese, Japanese and Indian oil tankers.
He said the storage capacity of this FSU was 2.2 million barrels, adding that Soroush and Norouz oil is stored separately in the storage unit to be delivered to customers based on their desired oil grade.
Amir-Khosravi said the storage tanks in the FSU could be replaced, adding: “After oil export, storage tanks are washed so that the residues are erased off and it becomes clear that there is no more oil inside.”
He noted that oil export from Persian Gulf FSU has so far not seen any delay or any other problem.
“Since the date of exports and its beginning are registered, any delay by vendor or buyer, except for delays stemming from bad weather conditions, would be punishable by cash fine,” said Amir-Khosravi.
Noting that Soroush and Norouz oil has certain properties and that certain refineries can process it he said: “It would be difficult to find an alternative for this oil.”
“For these refineries, buyers will have to purchase Soroush and Norouz oil and it might be interesting to know that the sanctions’ pressures have had negative impacts on them and they had to deal with feedstock shortage. Oil produced here has always had its own customers and we are ready to increase our export if the number of buyers increases even now,” he said.
Export from Persian Gulf FSU
Amir-Khosravi said the International Affairs Directorate of NIOC is tasked with marketing and finding oil buyers, adding: “In general, scheduling for annual exports is sent here and it would become clear when and how much oil should be exported. Then, oil buyers make the necessary arrangements and send tanker to Persian Gulf FSU on the specified date to receive oil.”
“Some time, due to inappropriate weather conditions, the buyers will be notified that the oil cargo may be delivered sooner,” he said.
Amir-Khosravi said the final day of arrival of oil tanker would be announced to foreign company and it will be updated after every hour. “Then, the Persian Gulf FSU will contact offshore operations officials for the necessary arrangements,” he added.
Then, he said, a group of five officers will go to the FSU by helicopter or ship to make an assessment of the situation and make necessary plans.
Amir-Khosravi said the plan will be announced to the tanker through radio transmission system. If the vessel is to berth at the FSU, the time and place should be announced to the tanker. This place is often between 1.5 and 2 miles away.
He said three tugboats will approach the FSU from behind and both sides in order to tie the tanker to the FSU with an 85-meter chain.
“After the tanker is connected to the FSU, 350-meter export pipelines are delivered to the tanker in a vessel. These pipes are connected to the tanker. As soon as the tanker valves are opened, the pumps of Persian Gulf FSU are switched on for the delivery of oil to the tanker,” he added.
Amir-Khosravi said after the start of oil export operations, sophisticated radar systems measure the delivery of oil real-time.
“Usually, for a 500,000-barrel range, a ±5 tolerance is considered and included in the contract. This tolerance is determined by the supervisor of export operations,” he said.
“After the end of export operations, the export pipes are disconnected from the tanker and the FSU is detached from the tanker and the tanker would be at the disposal of specialist,” said Amir-Khosravi.
Persian Gulf FSU Properties
Amir-Khosravi said oil extracted from Soroush and Norouz fields is heavy, adding: “Carrying this type of oil to long onshore distances is difficult. Therefore, the Soroush and Norouz oil is transferred to the Persian Gulf FSU for storage and processing.”
He said the properties of Persian Gulf FSU include pumping, storage and transfer of this type of crude oil. He added: “One of advantages of Persian Gulf FSU over other floating storage units used in the world is the ability of its connection to any size of very large crude carrier (VLCC). But other floating storage units can be only connected to small-size tankers.”
Persian Gulf Outstanding Features
Amir-Khosravi said marine standards are changing constantly and updated regularly, adding: “Sourena standards were outdated and the activity of Sourena could not continue based on new standards.”
He said that the Persian Gulf FSU is technologically different from Sourena and is operating in compliance with new marine standards.
“The vessels carrying oil products should have no direct contact with sea, as required by international standards. The middle part of these vessels should be also empty or filled with water. Sourena did not have this capability and did not have a balance reservoir,” he added.
Noting that a fluid is required to be inside the FSU for oil to exit completely, Amir-Khosravi said “In Sourena, 300,000 b/d of oil remained in the storage tanks to maintain balance, and that amount of oil was never exported. But in Persian Gulf FSU, this problem is not seen and oil could be entirely pushed out of storage tank.”
“Moreover, the exterior wall of the FSU could be filled with seawater to preserve its balance,” he added.
He said 23 tankers are storing oil for the Persian Gulf FSU, adding: “This FSU has been built in compliance with Norwegian DNV ranking which is one of the most reputed in the world.”
“Given the fact that these tankers store two different grades of oil, when they are filled or emptied, forces are exerted upon the vessel. Controlling these stresses has become easy in the Persian Gulf FSU and the storage tanks in the second wall could be easily filled with water,” said Amir-Khosravi.
Specialized Forces
Amir-Khosravi said the staff employed on Persian Gulf FSU are young, adding that graduates of chemical, petroleum and mechanical engineering are recruited to work on vessels while graduates of marine science are employed for tankers.
“One of advantages of recruitment of young staff in the Persian Gulf FSU is their specialty in crude oil metering and their knowledge about production and export,” he said.
Amir-Khosravi said those operating on Persian Gulf FSU have a good command of English and they can easily communicate in English with foreigners.
FPSO
A floating production, storage and offloading (FPSO) unit is a floating vessel used by the offshore oil and gas industry for the production and processing of hydrocarbons, and for the storage of oil. An FPSO vessel is designed to receive hydrocarbons produced by itself or from nearby platforms or subsea template, process them, and store oil until it can be offloaded onto a tanker or, less frequently, transported through a pipeline. FPSOs are preferred in frontier offshore regions as they are easy to install, and do not require a local pipeline infrastructure to export oil. FPSOs can be a conversion of an oil tanker or can be a vessel built specially for the application. A vessel used only to store oil (without processing it) is referred to as a floating storage and offloading vessel (FSO). There are also under construction (as at 2013) floating liquefied natural gas (FLNG) vessels, which will extract and liquefy natural gas on board.
Oil produced from offshore production platforms can be transported to the mainland either by pipeline or by tanker. When a tanker is chosen to transport the oil, it is necessary to accumulate oil in some form of storage tank such that the oil tanker is not continuously occupied during oil production, and is only needed once sufficient oil has been produced to fill the tanker.
Floating production, storage and offloading vessels are particularly effective in remote or deepwater locations where seabed pipelines are not cost effective. FPSOs eliminate the need to lay expensive long-distance pipelines from the processing facility to an onshore terminal. This can provide an economically attractive solution for smaller oil fields which can be exhausted in a few years and do not justify the expense of installing a pipeline. Furthermore, once the field is depleted, the FPSO can be moved to a new location.