O&G MID –Down Steam Ecosystem

• Mid stream & Down Down Stream O&G Business Ecosystem

• Value Loops of Mid Stream
• Value Loops of Downstream Business b
• Regulatory Frame Work
• Legal Frame work
• Role Of PNGRB
• Natural Gas Transportation Pipelines
• City Gas Distribution
• Land Acquisition Laws
• Mid Stream Sector Includes :
• Processing
• Storing
• Transporting
• Marketing of Oil, Natural Gas & Natural Gas Liquids

Involves : Multi Disciplined Engineering/Design

&Automation/Commissioning
• Planning & Development Stages of Pipe Lines

-- Kinds Of Pipe Lines – 4inches to48 Inches

--Abraison Corrosion Management in Pipe lines
-- Scraping or Pigging Ops
-- For Natural Gas – Pipe lines made of Carbon Steel ( 2-60 Inches )
-- The Gas is pressurized by Compressor Stations / Booster Stations
STAGES Of PIPE LINE Dev – Approval/Planning/Stake holders Nod/PNGRB Approval
-- Project Developmen
-- Project Operationalization
Pipe Line Classification etc
• Two Kinds
• Gathering Pipelines – O&G Field Level/Small Dia/ Short Distance
• Pransportation Pipelines- - Long/Large Dia./moving O&G between cities, Countries, Continents,
Onshore/Offshore
• These networks include national Intl Protocols/Maritime Laws &protocols in Offshore
pipeline/geopolitical MOU’s/
• Operations
Generally Done on Turnkey Bases with complex Indemnities /
Pipeline Highway Includes many Compressor Stations
Pumping Stations for Crude pipelines
Several Interlinked piplines with smaller Dia.
Feeder Lines to Distribute gas in Cities/Refineries/Petrochemicals/Fertilizer Plants
Stages of Pipeline Development
• Ongoing Project Conceptualization Advertisement – New/Add On
• Advertisement by PNGRB
• Registration & Authorization ( section 14-23 of PNGRB )
• In principle Regulatory Approval
• Discussions & Finalizing with Stake Holders – Forest /Environment/NGO’s/Labour
Deptt/Defence approvals/HSE Bodies/Restricted Area Approvals/Min Of Shipping &
Coast/Min Of Water Resources/Land Owners & Farmers/Land Record/Judicial/Compensation
package to Farmers & other land owners as per Land Acquisition Laws & processes
• Full approval from PNGRB
• PROJECT DEVELOPMENT/ OPERATIONALIZATION
• Laying Down of Pipelines /Booster Stations/Intellingent Survey. Tools – Remote Pigging
/Corrosion detection etc
More About Mid Stream Pipe Lines

• - Pipelines made of Steel / PVC Tubes ( 4-48 Inch Dia )

• Most Pipe lines are Burried at Depth ( 3-6 Ft )
• Needs to be Protected from Corrosion /Abrasion/
• To be protect by : Wood Logging/Concrete Coating/Rock Shield/High Density Poly Ethylene
/Sand Padding etc
• Crude has Paraffin wax /in Winters-Wax building occurs in pipelines
• These pipelines are Inspected during Routine maintenance Ops.
• The process is called as pigging/scraping ops.
• Pipelines also suffer Corrosion/metal loss/Cracks/Other Mechanical Failure
• Intelligent Pigging Ops-using intelligent pigging & Corrosion/crack detection surveylance tools/
Testing Ops- Ensure Structural Integrity- Hydrostatic Testing
• These devices are also known as pig launcher stations
• FOR NATURAL GAS TRANSPORT
• Pipelines are of Carbon Steel ( 2-60 Inches Size/Dia. )
• The Transported Gas is enroute pressurized by Compressor
Station/Booster Stations
• Gas is mixed with MERCAPTAN ODORENT for any leakage detection
etc as the Orders of Regulator - PNGRB
PETROLEUM RULES 2002
• 1. Title – Petroleum Rules 2002
2. Definitions :
ACT : Means Petroleum Act 1934 ( 30 Of 1934 )
Approved :
OISD
Chief Controller
Joint Chief
Dy Chief
Conservator
Containor
Electric Apparatus
Form/Hot Works/Inspector/OISD Stds/Petroleum In Bulk/Protected Area/Storage Shed/Tank
Testing Officer/
Rules 2002 Cover –
• Importation
• Transportation
• Storage
• Refining

• Rule 3 : Restrictions on Delivery & Despatch

• Rule 4 : Approval of Container – 1 Ltre for Class A & 5 Ltre for Class B
• Approval Needed from Chief Controller
PETROLEUM RULES 2002
• GENERAL PROVISIONS ( R-3 to Rule 13 )
• Rule : 5 Containers Specs for Class A Material/Kind/size/Air Space% 5
• R : 6 Containers for Class B&C Not Much issues
• Rule : 7 Empty Receptacles to be Cleaned up Fully
• Rule : 8 Repair Of Hot Works – to be done with after due Certification from Master
• Rule 9 : Prevention Of Escape Of Petroleum
• Rule 10 : Prohibition Of Child Employment – No child under 18 Yrs
• Rule 11 : Prohibition Of Smoking/Lights/Fire etc near Containers
• Rule 12 ; Special Precautions against Accidents
• Rules 13 : Payment Of Fees
PETROLEUM RULES 2002

• CHAPTER II : IMPORTATION
• Rule 14 License for Import Of Petroleum : other then the one which could be
stored without licence ( section 7,8,9 ) shall not be Imported without valid licence.
• Rule 15 Petroleum Exempted : Class B&C and Defense
• Rule 16 Port For Imports : with all approval Conditions from CC
• Rule 17 Declaration By Master of the Ship / Ship’s Agent
Master of the Ship handling the Petroleum Import has to provide all the shipment
Details in the Declaration as per Section-16 and to be hande over to pilot /Captain of
the Ship
• Rule 18 Ship Anchoring 1)Every Ship carrying Petroleum shall Anchor at such
Anchorage as specified by the Conservator
2) Ship Anchorage shall never be similar to Explosive’s Anchorage in
Shape/Colour etc.
3) and should be at the safe distance if anchored near by
- Rule 19 Production of Certificate & Licence for Import - personally or through
Agent to the Commissionar of Customs at port of Landing .
- No Landing without his approval
- Rule 20 Permission of Custom Commissionar to Land Petroleum
- Customs would satisfy wrt – Testing Officer’s Report/Storage Acommodation
Certificate/Authentication of Licence of Import
• Rule 21 Landing of Petroleum Class B & C Can be Appd. In anticipation of Testing
Officer’s Report
• Rules 22 Unloading of Petroleum In Bulk Subject to Provisions of Part II of Chapter
III ( Transport by Water in Bulk ) through Jetties/Barges/lighter at Designated Places
• Rules 23 Unloading of Petroleum otherwise than in Bulk Subject to Provision of
Chapter III . Containers to be free of leakage etc
• Rules 24 Transhipment Of Petroleum can be transshipped from one Ship to Other
Subject to Provision of Part II of Chapter III
• Rules 25 Importing by Land No Imports by Land
• Rules 26 Land Import only in exceptional Cases
• Permission of Custom Comm. To Unload
CHAPTER III TRANSPORT OF
PETROLEUM
• Part I of Chapter III General ( 28-32 )
• Rule 28 Restriction on Leaky Recepticles
• Rule 29 Loading Of Containers
• Rules 30 Restrictions on Passengers/Combustable & inflammable
Items
• 31 Prohibition Of Smoking
• 32 Night Restrictions on Loading/Unloading Ops
• Chapter III ( Part II ) Transportation by Water in Bulk
• Rule 33 Licence from Licencing Authority is a must
• Rule 34 Vessels to made of Iron/Steel with Prescribed Specs
All Tanks to Have Manholes/Air tight Joints/Filling & Suction pipes
& Valve Near by to the Bottom/Filling & Discharge through Pipe
& Valve only
Rule 35 For Class A Petroleum Tanks to Have Vent or Relief Valve
With mesh ( more tham 11 meshes per cm )
Simila Ventilators to all spaces around Tank
• Other Safety Provisions Master Vessel Jobs ( 36-50 ) Include
Exhaust Outlets with Spark Arrester/No Petrol Engine/0.20m3 of
dry sand/non sparking hammer/Red Flag/Life Boats/Ventilation &
cleaning of Holds & Tanks ( Master’s Jobs )
Loading & Unloading through Armoured Hose /Total Prohibition of
Naked Light/Fore/smoking /FFE in Ready Condition/Non conveyance of
Class A with Class B & C Petroleum/No Transport of Untested Petroleum
Chapter III Part III ( Rules 51-61 ) Coast wise Transport of Class A
Petroleum not in Bulk . These Rules Provide Conditions & Precautions For
Not in Bulk transport
Part IV – Rules 62-86
• PART IV Transport of Class A Petroleum on Land (R-62-86 )
• Rule 62 Approval needed for more than 100 Lts of Class A Petroleum
• Rule 63 Special safety while Filling/Specs of Containers/tank Vehicles
Testing & maintenance as per 3rd Schedule provisions
Rule 64 Class A Petroleum to be filled only upto 97 %
Rule 65 &66 Tank Vehicle & Trailor never to use for other purpose
Rule 70 Regarding the Specs of Vehicle for carrying Class A Petroleum
Part IV Contd.
• Rules 71 to 86
• Rule 71 Elect. Safety Rules
• Rule 72/73/74 About Fire Extinguishers
• Rule 75 Licence of Transport
• Rule 76 Loading & Unloading in Licenced Premises
• Rule 77 Leaky Tanker Never to be Filled
• Rule 78 Filling rate to never be beyond 1 Metre/Sec until the filling
pipe is fully submerged . Be gradually increased to 6m/sec
• ( can approve more speed if Petroleum has higher Conductivity Rate )
Part V – Transport By Pipeline 87-108
• Rule 87 Applicable to other than those in Upstream O&G or with in Refinery
& Installations
• Rule 88 Provide the Right of way to Acquire Pipelines
• Rule 89 Approval from cc to be obtained
• Rule 90 Design Pipeline Details
• Rules 91 Laying Down of Pipeline Criteria
• Rules 92 Protection of Pipelines against Corrosion
• Rules 93 Hydraulic Test /Pressure Test – at 1.1 times the designed internal
pressure and maintaining it for 24 Hrs . To be done at 12 m interval
(maintaining shut down Procedure)
• R-94 Shut down procedure /process
• R-95 Patrolling & Communication Systems to be 2KM Range
• R-96 Checking of Pipeline Gauges of Tank ,Booster Pump once in a Yr
• R 97 Alteration/Addition only after CC’s Approval
• R 98 Repair & Maintenance of Pipeline
• R-99 Power of CC for required relay or repair for Public Safety
• R100 Power of Inspection & Examination
• R 101 Fire/Major Leakage in Pipe Line /Connected facilities to be
reportd by I/C immediately to Nearest Police St//Magistrate / CC
• R-102 /103/104 Classification of Hazardous Area
• R 105/106 Fixed Electrical Apparatus
• R 107 Fixed Electrical Wiring- 108
• R 108 Earthing & Bounding
• R-109to R115 Other Provisions
• CHAPTER V ( STORAGE OF PETROLEUM 116-135 )
• Storage of Petroleum Needing License ( CLASS – A Petroleum )
• R- 116 No ops. without Valid License wrt Storage of Class A Petroleum
• R-117 Precautions for Fire as per OISD Stds/DCP&other Fire Extinguishers
• R-118 Experienced Supervisor- a must for all Ops.
• R-119 Absolute Cleanliness to be managed
• R-120 Full Drainage
• R-121 WallsFencing of minimum1.8 Mts Height forUnauthorized Entry
• R-122 1.2 Mts Height for Service Stations for same
• R-123 Marking of Capacity on Tanks
• R-124 Tanks construction of Specified Iron/Steel Grades as per ISI stds
• R-125 Protection against Corrosion /by protective Coating or Cathode ray protection
mechanisms
• R-126 Pressure Integrity Testin by Competent Technocrats. Should provide to Convenience
through Specialized Pipes/Pumps . Performance Certification to be given for such Testing Ops.
• R-127 Proper Earthing of Tanks ( two separate earthing Connections)
Resistance to earth should be less than 20 Ohms.
128 Testing Of earthing to be after every 12 Months with specified/Full Records
R-129 No Night Working Unless with Appd. Elect.Lighting ( as per Chapter IV )
Chapter V Petroleum Rules 2002 Contd .
• R-130 Certificate of Safety Needed by CC
• R-131 Prior Approval of Specs/Plans & Premises Required
• R-132 Electric Motor/Internal Combustion Engine to Drive Pumps for
pumping Petroleum to be always Appd by CC
• R-133 License Nos & related Details to be marked in Storage
Premises/Service Stations
• R-134 Extract of Key Rules/Instructions be prominently displayed
• R-135
Chapter VI Storage of Class C Petroleum
• Rule 136- Rule 140
• R-136 Provisions of Class A Petroleum not Applicable in Class C
• Chapter VII of Licences ( R-141 to R-160 )
Chapter VII Refining Of Petroleum R-162-
180
• R-162 To ensure well defined Project Report wih all the prescribed
specifications & Toatal Plans showing the arrangements of
Tanks/Stills/Furnaces/Elect. Installations/Pump
House/Drainage/ETP/FFE
Key Activity Units : Refining /Crackers/Reform/Blend/
Key facilities : Boilers/Crackers/Catalytic Converters/Retarders/Pump
Houses/LPG Vol.
Fencing & Gates at all locales where propsed to
Refine/Crack/Reform/Blend the Petroleum ( Named Refinery in this
Chapter). To be sent in Triplicate With Scrutiny Fee to Chief Controller
• R-163 Appd Design/Plan be Kept at Refinery in all major Units
• R-164 Alternations need Prior Approvals of Chief Controller
• R-165 Fire Proof Material be used in Handling the Ops.
• R-166 Storage Tanks to be 90 Mts Away from any Stilt/Boiler/Furnace
• R-167 Storage Tanks of LPG be 90 Mts away from Stilt/Boiler/Furnace
• R-168 Flares to be also 90 Mts away from any Tanks/Stills/Pump
House/Refinery/LPG Activity
• R-169 Effluent & Drainage not to Cause any Pollution/Harmful Effect
adjoin Vegetable Life/Animals etc
• R-170 No Fire/source of Heat /Light to exist beyond the stills/Boiler/Firing Place
• R-171 Work Permit from a Competent Authority for Maintenance & Repair Jobs/Entry Permit
for limited Period/Work done by Trained people with Std. Equpments & Processes
• R-172 WellTrained Professionals as per OISD 116 Stds with all Fixtures
• Adequate Water Supply at all strategic Points through Independent Grid with Isolating
Valves. Mains to be always pressurized by 2-3 Boosting Pumpsao adequate Capacity
/working automaticallywhen pressure drops in Mains/ be always filled with Hydrants at
Convenient Places/not >30 Mts
• R-173 All Petroleum be pumped back to service as it leaves the stills and Boilers
• R-174 Danger from Static Electricity Systems be Prevented
• R-75 Display of Warning Notices all Specifics of at all relevant & Visible Places
• R-176
Chapt.VIII - Refining Of Petroleum–Rules
2002
• R-162 to R- 180 Refining of Petroleum ( All Ops )
• R-162 Project Report & Plans with all Specs showing the exact arrangements of
Tanks/Stills/Furnaces/Elect. Instalations/Pump houses/Drainage/ETP/FFE
• Operating Env.- Refining/Cracking /Reform/Blend
- Furnace/Boiler/Cracker/Catalytic Convertor/Retarders/Pump House/LPG Vol.
- Fencing with Gates at all major Buildings /required out lets & inlets
Where it is proposed to Refine/Crack/Reform or Blend Petroleum ( Called Refinery In this
Chapter )
- All the Above ecosystem would be sent to CC in Triplicate with desired Scrutiny Fees
- R-163 Copy of Each Appd. Plan to be Kept at Refinery
- R-164 – Alternations too needs the Approval of CC
- R-165-Fire Proof Material be used where Petroleum in Refinery to be handled in any Way
Chapt VIII Refining of Petroleum Contd.

R-166 Storage Tanks be more than 90 Mts away from any silt/Boiler/Furnace
- not applicable to Class C Fuel Tank if Capacity not > 24 Hr Stock
R-167 Storage Tank of LPG to be 90 Mts away from Still/Boiler/Furnace
. Any Tank to be 30 Mts away from other tank/Still/pump House /any refinery /LPG activity
R-168 Flare to be 90mts away from any tank/still/Pump house etc
R-169 Effluent & Drainage not to Cause any Polution/Harmful Effect on adjoining vegetable
life/Animal Life
R- 170 No Fire, Source of Heat or light influencing Ignition of Inflammable Vapours shall be allowed
R-171 Work Permit from Cpmpetent Authority for maintenance & repair Jobs
- entry confined to earmarked spaces only, Permit for a limited period only
- work to be done by trained professionals with Std. Equipments only
• R-172 Fire Control Provisions – well Trained Professionals with all desired material
& fixtures as per OISD 116 Stds / Adequate water Supply at all strategic Points
through an Independent Grid with Isolating Valves
• R- 173 All Petroleum as it leaves the STILLS may be pumped back to Service Tanks
( For Fuel & Refinery Storage Tanks and not to be stored in the vicinity of Stills &
Boilers
• R-174 Danger from Static Electricity to be prevented
• R-175 Display of warning Notices at all key places
• R-176
• R177 All plants/Instruments/Equipments/shall be periodically inpected
• R-178 All operators shall be trained in safe operations written procedures ..
Chapter IX – Tetra Ethyl Led Mixture
• R-181- 185

• Chapter IX – Testing Of Petroleum ( 186-199 )

Chapter XI Notice Of Accidents R- 200
• R-200

• Chapter XII Exemptions