Flow measurement equipment exchange
- 1. Flow Measurement Equipment Exchange Concept and Principles Jacek Krawaczynski 16th March 2017
- 2. 1 of 7 - Background At an operators meeting called by the Oil and Gas Authority, there was a good discussion of issues surrounding older flow measurement systems for oil and gas fields nearing the end of field life. Two key issues highlighted were:- ? Flow measurement systems are oversized for late field life and it may not be economically viable to replace them. ? Obsolescent equipment and spares availability may result in earlier cessation of production for smaller volumes. In some cases there is no economic value in upgrading the measurement system to extend the life of a field. There was a discussion about the value of having an exchange mechanism for operators to dispose of obsolete equipment and allow other operators to obtain spares for obsolete equipment The ability to source used equipment and replacement for obsolete equipment resets the economics for extending the life of fields.
- 3. 2 of 7 – Key issues Whilst many flow measurement systems have a wide turndown, there are limitations due to physical size which may only be addressed by reducing the meter size. This oversizing often occurs in late field life, where the economics may not support the replacement costs at this that stage. The second issue discussed was the obsolescence of measurement equipment, where the lack of spares can severely impact the reliability and operability of a measurement system. This obsolescence affects flow computers, metering databases, gas chromatographs and some types of flow meters.
- 4. 3 of 7 – Potential solution The discussion raised the concept of an equipment exchange between operators (referred to as a “swapshop” in the meeting). Whilst the platform of the flow measurement exchange (FME) was not detailed, there is a question over whether there is value for operators in such an exchange scheme. The FME would be open to all operators and includes gas networks. In future, it could possibly include industries such as water and nuclear. The FME would allow operators to list the measurement equipment that was no longer required and to search for what equipment was available on the exchange for spares for any obsolete equipment.
- 5. 4 of 7 – FME Concept - Equipment value The equipment would not have any warranty or guarantees and it would be up to the user to check and refurbish the equipment if required. For flow computers and metering databases the specifications would be required to ensure compatibility. It is not clear how the equipment would be valued, apart from scrap value, but there could still be a payment involved:- ? Payment in kind notional value. ? Donation to charity for smaller components. ? User to collect (and remove?) equipment at their own cost.
- 6. 5 of 7 – FME Concept - Scope What is covered by this exchange:- ? Complete metering system including instruments, meters, meter runs, headers flow computers and databases which are being decommissioned ? Components of flow measurement systems which include:- o Primary meters o Meter runs and headers o Flow computers o Metering databases o Gas chromatographs o Calorimeters (any left?) o Densitometers o Relative density analysers o Secondary instruments – individual isntruments to be included or excluded from scope ? Subsea meters which have been recovered ? Multiphase flow meters For example, I know of a dual stream condensate metering system with a prover that may be available and also that there are a number of Daniels 500 series gas chromatographs in stores which have been removed from sites and may never see service again within that company.
- 7. 6 of 7 – Issues to be considered At this concept stage a number of issues have been raised, which include:- ? Liability ? Warranty ? Indemnity ? Due diligence with onus on users This exchange should not challenge sales of systems as focus is on late life equipment where the exchange extends the life of fields for a cost in line with associated marginal economics where it would be uneconomic to upgrade.
- 8. 7 of 7 – Your thoughts You have just read through a few ideas which may have sown some seeds and now I would like to hear your thoughts… Could this work? - I think the appetite and need is there! How would this be structured what platform could it be based on? Finally, can this be applied to more than just flow measurement equipment? Do you have any unused flow measurement equipment in storage that is no longer required. If so please let me know the type of equipment and number of units. All responses will be treated in strict confidence and may be used to provide aggregate data. Let me know be sending an email to jacek@jk-consulting.co.uk