Instrumentation and Technologies for the Oil Gas Industry

Instrumentation and Technologies for the Oil & Gas Industry Stephan Neuburger 2018 -04 -17 Russian National Oil and Gas Forum at NEFTEGAZ 2018

1. Introduction KROHNE Group 2. Mastering challenges in Oil & Gas applications 3. Project examples 4. Summary Instrumentation and Technologies for the Oil & Gas Industry Agenda

KROHNE Group Facts and figures Supplier of innovative products, solutions and services for the process industry Founded 1921 in Duisburg, Germany 100% family-owned 2017 turnover: 495. 3 mio. EUR (incl. joint ventures) >3, 700 employees >350 employees in R&D 17 production facilities in 12 countries 44 KROHNE companies and joint ventures 55 representatives 3 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

KROHNE Group Mission, Vision & Clients from the process industries Our Mission: We offer the right solutions for our customers’ process measurement applications around the world. We achieve this through innovative and high-quality products and services qualified and competent employees long-term and reliable partnerships with our clients and partners 4 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

KROHNE in CIS The challenge: become a local business partner in the commonwealth Market entry in 1977 Experience in Oil&Gas sector: - gained trust of CIS business partners with smaller projects at first, - Later became a main supplier for Custody Transfer measurements, system solutions and metering skids Due to market & governmental requirements, we set up a local production in 1994: - Flow: e. g. ultrasonic, vortex and electromagnetic flowmeters - Level: e. g. radar, guided radar and mechanical level transmitters Today >200 staff, including dedicated application and project engineers Clear commitment to CIS clients and partners 5 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry Headquarters in Samara, Russia

KROHNE in CIS A network of local partners to match our clients‘ expectations Surgut Naberezhnye Moscow Chelny Kaliningrad Chelyabinsk Novopolotsk Grodno Samara CIS Headquarters, Production Minsk Kiev St. Petersburg & Calibration Krasnodar Baku 6 2018 -04 -17 Almaty Tashkent | Instrumentation and Technologies for the Oil & Gas Industry Sales Krasnoyarsk Sales, Service and Support Irkutsk Ulan Bator Khabarovsk

1. Introduction KROHNE Group 2. Mastering challenges in Oil & Gas applications 3. Project examples 4. Summary Instrumentation and Technologies for the Oil & Gas Industry Agenda

Mastering challenges in Oil & Gas applications Measure all main process parameters Mastering the complexity in the CIS market: Setup & maintain full portfolio of Flow, Level, Pressure, Temperature & Process Analytics under local regulations Client requirements for most accurate measurement in harsh process conditions, and in particularly difficult applications in the oil & gas industry “Measure the facts”: focusing on the primary measurement to guarantee accurate and reliable performance, even under difficult process conditions 8 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

Mastering challenges in Oil & Gas applications Ultrasonic CT flowmeters for liquid hydrocarbons and natural gas Introduced in 1996, they were the first CT meters without moving parts and without pressure loss. Today, they are oil & gas industry standard for… Liquids: crudes, refined products, cryogenic media and chemicals OIML R 117, MI-005, API, GOST etc. ; Gas: OIML R 137 (class 0. 5), MI-002, AGA 9 etc. , wide range of viscosities HP versions for high pressure feedwater, spray water or water injection up to 490 psi / 7107 psi Gas flow devices: DN 100… 1600 / 4… 64“; max. PN 450 / ASME Cl 2500 9 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

Mastering challenges in Oil & Gas applications Coriolis Mass flowmeters with Entrained Gas Management (EGM™) With EGM, coriolis meters maintain operation over a wide range of gas fractions and complex flow conditions. Large lines sizes for highest capacity bulk measurement up to DN 400/16“, and flow rates up to 4, 600 t/h From twin bent to single straight tube designs OIML R 117, R 137, MI-005, MI-002; API, AGA 10 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

Mastering challenges in Oil & Gas applications Multiphase flow meter Multiphase flow measurement without a radioactive source. Substance-specific magnetic resonance flow meter for oil&gas applications - simultaneous inline measurement of oil, gas and water in upstream applications - fully automated inline fluid characterization Full bore design; no pressure drop, no wear Large turn-down ratio on velocity (1: 60) Suited for oil producing wells Gas Volume Fraction GVF< 98%: - High sensitivity at high water liquid ratios (up to 100%) - Suited for high viscosities (3 -2200 c. P) - Suited for high salinity of water (up to saturation) Enables enhanced reservoir management 11 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

Mastering challenges in Oil & Gas applications 80 GHz radar level transmitters Contactless level measurement in tanks of all shapes and sizes. Highly focused beam, measuring range up to 100 m/ 328 ft Lens, Drop and Horn antenna styles with process connections starting from ¾“ Accuracy from ± 2 mm/ ± 0. 08“; dielectric constants as low as 1. 4 12 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

Mastering challenges in Oil & Gas applications Development project 700 bar dp cell ± 500 mbar range: accurate and reliable measurement in HP processes Smallest dp changes under extreme conditions KROHNE is a reliable partner for consulting, development and implementation of new technologies 13 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

Mastering challenges in Oil & Gas applications Meeting the demand for engineered solutions Clients demand full scope of delivery: Gas separator, control valve, mass flowmeter(s), piping, dosing control, communication and integration into DCS/ERP Custody-transfer-relevant project management Commissioning, training, documentation MID MI-005 liquid propane road tanker filling 14 2018 -04 -17 Marine tanker loading w/ different viscosities fuels | Instrumentation and Technologies for the Oil & Gas Industry Railway oil loading rack w/ 60 mass flowmeters

Mastering challenges in Oil & Gas applications Meeting the demand for engineered solutions: CT Metering Systems for Liquids and LNG Diameters: 4“-40“ Pressure class: 150# - 1500# Design: Skid mounted or assembly on site (incl. analyzer house) Flowmeters: Ultrasonic, Coriolis, turbine, PD Scope: Metering runs, instrumentation, valves, flow computer cabinets, prover tie-ins, ball prover, analyzer house, supervisory software solutions Execution: From design capabilities during FEED up to commissioning and service on site by local service team Highlights: In-house development of flowmeters, flow computers and supervisory software guarantees seamless integration Custody transfer liquid metering skid on site Various configurations possible to minimise pressure drop Z-configuration liquid skid with multiple meter runs and analyzer house 15 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

Mastering challenges in Oil & Gas applications Meeting the demand for engineered solutions: CT Metering Systems for Natural Gas Diameters: 4“-40“ Pressure class: 150# - 2500# Design: Skid mounted or assembly on site Flowmeters: Ultrasonic, Coriolis, turbine, orifice Scope: Metering runs, instrumentation, valves, flow computer cabinets, analyzer house, supervisory software solutions Execution: From design capabilities during FEED up to commissioning and service on site by local service team Highlights Meter runs can be equipped with two meters in series to extend or, in some regions, even avoid costly recalibrations. High pressure natural gas skid ready for shipment Minimised foot print ALTOSONIC V 12 s only need 5 D straight inlet (without flow conditioner) to meet AGA 9. Z-configuration skid with 2 meters in series 16 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

Mastering challenges in Oil & Gas applications Meeting the demand for engineered solutions: Pipeline leak detection and localisation system Inline F, P, T instrumentation on a pipeline is already installed Based on application knowledge, a mathematical model of this specific pipeline is created, covering all operational statuses Measured data of inline sensors is continuously compared with the mathematical model Pattern recognition software detects deviations as leak or safe Integration into PCS or stand-alone Zero false alarms 17 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

Mastering challenges in Oil & Gas applications Side note: System solutions are the foundation for the Internet of things (Io. T) in process industry As Io. T arrives in process industry, process instrumentation will be primary supplier and information hub KROHNE actively pushes innovative technologies based on uniform open standards, e. g. NAMUR Large investments in R&D, projects include - Smart Sensors / Measuring Modules - Communication: Ethernet, Bluetooth, … - Diagnostics - Miniaturization -… Turning from pure hardware manufacturer into measuring services provider 18 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

Mastering challenges in Oil & Gas applications Services for CIS-specific demands Market potential project services: O&G clients demand support from first offer to project completion. Project management, engineering, execution with local engineers Local calibration/ verification - Flow range DN 15… 1600: (re-)calibration of Mass and other flowmeters, manufacturer-independent - Automated Level calibration rig High-end machinery park: - Customized Inlet- outlet spool pieces, flow straighteners - mechanical works and adjustments - adaptation piping systems - All works according to intl. KROHNE standard and know-how Local technical customer service 19 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

Mastering challenges in Oil & Gas applications Euro. Loop: high pressure/high flow gas and liquid calibrations with actual medium KROHNE bundles all Euro. Loop services for its CIS clients: Testing and calibration according to MID, EN, IEC or OIML: single meters or complete skids can be calibrated with: Natural gas: - 20… 30, 000 m 3/h for sizes 6… 36" up to ANSI 900 - with best overall uncertainty (CMC) of 0. 17% Liquid hydrocarbons: - sizes 4… 30" up to 5, 000 m³/h - large range of Reynolds numbers, viscosities 1… 400 mm²/s (c. St) - with best overall uncertainties 0. 02% for volume and 0. 04% for mass 20 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

1. Introduction KROHNE Group 2. Mastering challenges in Oil & Gas applications 3. Project examples 4. Summary Instrumentation and Technologies for the Oil & Gas Industry Agenda

Project Overview Custody Transfer Liquid Metering Skids for Tuapse Refinery, Russia End user Rosneft Location Tuapse, Russia Year of supply 2011 Application CT measurement on export terminal Medium Diesel, Naphtha, Mazut Scope of supply ALTOSONIC V based measurement skid Project details KROHNE provided a turn-key metering skid with integrated analyzer housing. The solution is fully in line with OIML and GOST regulations. Tupase near the Black Sea coast Metering skid with analyser housing 22 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

Project Overview ALTOSONIC V 12 for South Stream, Russia - Bulgaria End user South Stream transport AG Location Measurement at the Russian (inlet) side and the Bulgarian (outlet) side of the Black Sea Year of supply 2015 Application Measurement with CT accuracy Medium Natural gas Scope of supply ALTOSONIC V 12 Project details The South Stream pipeline crosses the Black Sea, which means a long stretch without compressor stations. As a result gas is injected at high pressure, requiring special 2500# design flowmeters. KROHNE could combine this with a meter design that does not need a flow conditioner. South Stream pipeline from Russia into Europe ALTOSONIC V 12 2500” with compact flanges 23 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

Project Overview OPTIMASS 2000 for Black Oil Loading, Kazakhstan End user Kaz. Munai. Gaz and Lukoil Location Dostyk, Kazakhstan Year of supply 2010 Application CT measurement for train loading Medium High viscous black oil Scope of supply OPTIMASS 2000 Project details In the Dostyk Refinery environment only limited installation space is available, making it impossible to use traditional bend tube design Coriolis meters. The small footprint of the straight tube OPTIMASS 2000 allowed for a seamless integration. Storage at Dostyk refinery Small footprint of OPTIMASS 2000 24 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

Project Overview Well Water Injection at BP Baku West Azeri End user BP Location West Azeri, Baku, Azerbaijan Year of supply 2012 Application Well water injection Medium Water Scope of supply OPTIFLUX 4000 Project details KROHNE provided an OPTIFLUX 4300 electromagnetic flowmeter for high pressure injection of water. The meter is constructed in 6 MO material in a 1500# full rating design. Hydrotest during production Flow calibration in KROHNE factory 25 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

1. Introduction KROHNE Group 2. Mastering challenges in Oil & Gas applications 3. Project examples 4. Summary Instrumentation and Technologies for the Oil & Gas Industry Agenda

Instrumentation and Technologies for the Oil & Gas Industry Summary CIS Oil&Gas market comprises complex applications and rising demands for process measurement under difficult conditions Beyond plain instrumentation, clients demand Measurement Solutions and Services for their projects Local presence and expertise is essential to understand market needs KROHNEs main benefits: Complete instrumentation portfolio, Measurement Solutions and Services that match customer and authorities requirements Innovative technologies to solve application-specific challenges Global company with large local network; local production and calibration Longterm experience and capabilities in the CIS region: reliable partner over decades 27 2018 -04 -17 | Instrumentation and Technologies for the Oil & Gas Industry

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