CONTENTS

1. Introduction to Oil & Gas Industry 4. Offshore Drilling Rigs & Production
2. Myanmar Oil & Gas Industry Platforms
2.1 Historical Main Oil Field 4.1 Offshore Jack-up Drilling Rig
2.2 Historical Development of Drilling & 4.2 Offshore Production Platform
Production 5. Services in Oil & Gas Industry
Hand-Dug Wells
6. Current Oil & Gas Activities in
Rotary Drilling System Myanmar
2.3 Myanmar Oil & Gas Industry after 1963 6.1 Onshore Activities
3. How Drilling Works 6.2 Offshore Activities
3.1 How Oil is formed 7. Out Look for Myanmar Oil & Gas
3.2 Finding Oil Industry
3.3 Preparing to Drill
3.4 Components of a Drilling Rig
3.5 Drilling Operation
3.6 Extracting the Oil
3.7 Transporting of Oil & Gas
3. How Drilling Works
In this section we will discuss about the processes of finding,
drilling and production of oil.

3.1 How oil is formed. (1/3)

Oil is a fossil fuel that can be found in many countries around the
world.
Oil is formed from the remains of tiny plants and animals
(plankton) that died in ancient seas between 10 million and 600
million years ago. After the organisms died, they sank into the
sand and mud at the bottom of the sea.
Over the years, the organisms decayed in the sedimentary layers.
In these layers, there was little or no oxygen present. So
microorganisms broke the remains into carbon-rich compounds
that formed organic layers.
3.1 How oil is formed. (2/3)
land Malcid washed into
The sea from land Parts of the dead New material
materials change depositing
to hydrocarbons, Sediment forms on
mixed with other impervious layer,
Living material dies sedimentary called the cap rock.
materials
Remains of plankton
Tiny forms of sea life Layers become
more and more
compressed as Topped by the layer
further layers above, in the pores
Layers of sediment settle on top of sedimentary
form rocks- these act as
a reservoir

The organic material mixed with the sediments, forming fine-grained

shale, or source rock.

As new sedimentary layers were deposited, they exerted intense

pressure and heat on the source rock.

The heat and pressure distilled the organic material into crude oil and
natural gas. The oil flowed from the source rock and accumulated in
thicker, more porous limestone or sandstone, called reservoir rock.
3.1 How oil is formed. (3/3)

Movements in the Earth trapped the oil and natural gas in the reservoir
rocks between layers of impermeable rock, or cap rock, such as granite
or marble.

Oil reservoir rocks (red) and natural

gas (blue) can be trapped by folding
(left), faulting (middle) or pinching
out (right)

These movements of the Earth include:

Folding - Horizontal movements press inward and move the rock
layers upward into a fold or anticline.
Faulting - The layers of rock crack, and one side shifts upward or
downward.
Pinching out - A layer of impermeable rock is squeezed upward into the
reservoir rock.
3.2 Finding Oil (1/5)
Finally, and most commonly, it is used seismology, creating shock
waves that pass through hidden rock layers and interpreting the waves
that are reflected back to the surface.
In seismic surveys, a shock wave is created by the following;

 Compressed-air gun - shoots pulses of air into the water (for exploration
over water)
 Thumper truck - slams heavy plates into the ground (for exploration over
land)
 Explosives - drilled into the ground (for exploration over land) or thrown
overboard (for exploration over water), and detonated.

The shock waves travel beneath the surface of the Earth and are
reflected back by the various rock layers. The reflections travel at
different speeds depending upon the type or density of rock layers
through which they must pass.
3.2 Finding Oil (2/5)
The task of finding oil is assigned to geologists.
Their task is to find the right conditions for an oil trap — the right
source rock, reservoir rock and entrapment.
Many years ago, geologists interpreted surface features, surface rock
and soil types, and perhaps some small core samples obtained by
shallow drilling.
Modern oil geologists also examine surface rocks and terrain, with the
additional help of satellite images.
However, it can be used a variety of other methods to find oil such as;

 Sensitive gravity meters to measure tiny changes in the Earth’s

gravitational field that could indicate flowing oil,
 Sensitive magnetometers to measure tiny changes in the Earth’s magnetic
field caused by flowing oil,
 Sniffers (sensitive electronic noses) to detect the smell of hydrocarbons.
3.2 Finding Oil (3/5)
Finally, and most commonly, they use seismology, creating shock
waves that pass through hidden rock layers and interpreting the waves
that are reflected back to the surface.
In seismic surveys, a shock wave is created by the following:

 Compressed-air gun - shoots pulses of air into the water (for exploration
over water)
 Thumper truck - slams heavy plates into the ground (for exploration over
land)
 Explosives - drilled into the ground (for exploration over land) or thrown
overboard (for exploration over water), and detonated.

The shock waves travel beneath the surface of the Earth and are
reflected back by the various rock layers. The reflections travel at
different speeds depending upon the type or density of rock layers
through which they must pass.
The reflections of the shock waves are detected by sensitive
microphones or vibration detectors hydrophones over water,
seismometers over land. The readings are interpreted by seismologists
for signs of oil and gas traps.
3.2 Finding Oil (4/5)
3.2 Finding Oil (5/5)
Although modern oil-exploration methods are better than previous
ones, they still may have only a 10-percent success rate for finding
new oil fields.

Once a prospective oil strike is found, the location is marked by GPS

coordinates on land or by marker buoys on water.
3.3 Preparing to Drill (1/8)

Once the site has been selected, it must be surveyed to determine its
boundaries, and environmental impact studies may be done.

Lease agreements, titles and right-of way accesses for the land must be
obtained and evaluated legally. For off-shore sites, legal jurisdiction
must be determined.

Once the legal issues have been settled, the crew goes about preparing
the land:
 The land is cleared and leveled, and access roads may be built.
 As the main component of drilling mud is water , there must be a source of
water nearby. If there is no natural source, they drill a water well. Pumps &
water lines are installed.
 They dig a reserve pit, which is used to dispose of rock cuttings and drilling
mud during the drilling process, and line it with plastic to protect the
environment.
 If the site is an ecologically sensitive area, such as a marsh or wilderness,
then the cuttings and mud must be disposed offsite trucked away instead of
placed in a pit.
3.3 Preparing to Drill (2/8)

Land clearing & preparing for BHP

Reserve mud pits

3.3 Preparing to Drill (3/8)

Once the land has been prepared, several holes must be dug to make way for
the rig and the main hole. A rectangular pit, called a cellar, is dug around
the location of the actual drilling hole.

The first part of holes is a large diameter hole in the cellar. It is lined with
large diameter pipe called conductor pipe.

Another hole is dug off to the side of the cellar and is lined with pipe. It is
called the rat hole ( as a place to temporarily store a piece of drill stream).

Cellar Cellar & rat hole

3.3 Preparing to Drill (4/8)
MOVING RIG COMPONENTS TO THE SITE
( Land Rigs )

• Cranes, Trucks and river crafts are used

depending on location of the site.
• Rig components are designed for portability are
easily loaded & unloaded. Oil Field Trucks,
Cranes & other trucks are used for carrying
rig components.
• Rig components are moved into some remote
area by helicopters.
3.3 Preparing to Drill (5/8)

MOVING RIG COMPONENTS TO THE SITE

( Offshore Rigs )

Jackup Rig
Mobile offshore rigs ( such as jackup rig,
submersible rig, semisubmersible rig,
and drill ship ) are used at offshore
blocks.
Jackup Rig – floats when moving to the
location. At site, huge legs are cranked
down until they contact the sea floor
and penetrate some feets into the
seabed. Jackup rigs are limited to drill
in water depth of 350 ft.
Submersible Rig – It floats on the hull
while towing to the site. The hulls are
flooded and come to rest on bottom at
the site. S Rigs are also limited to drill in
shallow waters.
3.3 Preparing to Drill (6/8)

MOVING RIG COMPONENTS TO THE

SITE ( Offshore Rigs )

• Semisubmersible Rig – It is
similar to submersible. It may
have two or more hulls upon
which the rig floats while towing
to the location. Once on location
the hulls are flooded but they do
not settle to the bottom. They
submerge only to a depth a little
below the water surface.

• Semisubmersible Rigs are often

selected because of their
excellent stability in rough, deep
seas.
Semisubmersible Rig
3.3 Preparing to Drill (7/8)

MOVING RIG COMPONENTS TO THE SITE ( Offshore Rigs )

Rig Move for Jack-up Rig

Rig Move for Semisubmersible Rig

3.3 Preparing to Drill (8/8)

MOVING RIG COMPONENTS TO THE SITE ( Offshore Rigs )

• Drill Ship – It is shaped just like any ocean-going ship. However drilling
equipment ( with other modification ) make a drill ship distinctive. Drill
ships are the most mobile because of its self-propelled function.

Drill Ship
3.4 Components of a Drilling Rig (1/9)
3.4 Components of a Drilling Rig (2/9)
Power system
Large diesel engines - burn diesel-fuel oil to provide the main
source of power.
Electrical generators - powered by the diesel engines to
provide electrical power.
Derrick or Mast - support structure that holds the drilling
apparatus; tall enough to allow new sections of drill pipe to be
added to the drilling apparatus as drilling progresses.
Manufacturers rate Derrick or Mast in terms of the vertical load
they can carry and wind load they can withstand from the side.
Most derricks & masts can withstand a wind load of 100 to 130
mile per hour.
Drawworks (hoisting system) - used for lifting heavy loads;
consists of a mechanical winch with a large steel cable spool, a
block-and-tackle pulley and a receiving storage reel for the cable.
It is driven by electric motors or chain drive.
Crown Block – is a large multiple pulley installed at the top of the
Mast.
3.4 Components of a Drilling Rig (3/9)

1. Drawworks

2. Crown Block
1
3. Mechanical Power Drive System

2
3.4 Components of a Drilling Rig (4/9)

Traveling block: an
arrangement of pulleys or
sheaves which moves up or
down in the derrick again up
to the crown block.
Drilling Line
 Fastline - the part
of the drilling line
running out of the
drawworks up to the
crown block.
 Dead Line - the
part of the line from the
end of the crown block
to the secured wire-
rope supply reel.
3.4 Components of a Drilling Rig (5/9)

Swivel: a mechanical device that suspends the weight of the drill

string, & permits the drill string to rotate. The rotary hose ( kelly
hose ) is attached to the side of swivel and drilling mud enters the
swivel through this hose.
Drill Bit : is a device attached to the end of the drill string that
breaks apart the rock being drilled. It contains jets through which
the drilling fluid exits.
Drill String : The assembly of members between the swivel and drill
bit including kelly,drill pipe and drill collars.
Kelly : four- or six-sided pipe that transfers rotary motion of the
rotary table to the drill string. Kellys are about 40 feet long.
3.4 Components of a Drilling Rig (6/9)

• Drill Pipe: joints of hollow tubing used to

connect the surface equipment to the
bottom hole assembly (BHA) and acts as a
conduit for the drilling fluid. In the diagram,
these are stands of drill pipe which are 2 or
3 joints of drill pipe connected together and
stood in the derrick vertically, usually to
save time while Tripping pipe.
A joint of drill pipe is 30 ft long. Each end of
each joint is threaded. The female end is
called “ box ” and the male end is called “
pin ”. These threaded ends are called “tool
joints” which are welded onto the outside of
the drill pipe body.
• Drill Collars : are special heavy-walled
pipes. They are heavier than drill pipes and
used on the bottom part of the drill string to
put weight on the bit. The threads are cut
directly onto and in the drill collars as the
wall is so thick.
3.4 Components of a Drilling Rig (7/9)
Rotary Table (turntable) - rotates the drill string along with the
attached tools and bit. It is part of the drilling apparatus and powered
by electric motors or chain drive.
Mud pump: reciprocal type of pump used to circulate drilling fluid
through the system.
Mud tanks: often called mud pits, provides a reserve store of drilling
fluid until it is required down the well bore. It pumps drilling mud
(mixture of water, clay, weighting material and chemicals, used to lift
rock cuttings from the drill bit to the surface) under pressure through
the kelly, rotary table, drill pipes and drill collars.
Shale shaker: separates drill cuttings from the drilling fluid before it
is pumped back down the borehole.
3.4 Components of a Drilling Rig (8/9)

Centrifuge: an industrial version of the

device that separates fine silt and sand
from the drilling fluid.
Degasser: a device that separates air
and/or gas from the drilling fluid.
Desander / desilter: contains a set of
Hydrocyclones that separate sand and
silt from the drilling fluid.
Blowout preventer (BOP) - high-pressure
valves (located under the land rig or on
the sea floor) that seal the high-
pressure drill lines and relieve pressure
when necessary to prevent a blowout
(uncontrolled gush of gas or oil to the
surface, often associated with fire)
3.4 Components of a Drilling Rig (9/9)
Centrifuge: an industrial version of the device that separates fine
silt and sand from the drilling fluid.

Elevators: a hinged device that is used to latch to the drill pipe or

casing to facilitate the lowering or lifting (of pipe or casing) into
or out of the borehole.

Chain tongs: wrench with a section of chain, that wraps around

whatever is being tightened or loosened. Similar to a pipe wrench.
1. The Introduction to Oil & Gas Industry 3/3

The midstream sector includes;

Transporting of crude oil, natural gas, natural gas liquids
(LNGs, mainly ethane, propane and butane) and sulphur
To store & market

The downstream sector is used to refer to;

The refining of crude oil

The selling and distribution of natural gas and products
derived from crude oil
( such as liquified petroleum gas (LPG), gasoline or petrol, jet fuel,
diesel oil, other fuel oils, asphalt and petroleum coke )