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GRE LINED TUBING PROCUREMENT STRATEGY

GRE LINED TUBING PROCUREMENT STRATEGY

IN-COUNTRY LINING VS BUYING LINED TUBING FROM PIPE SUPPLIERS

Duoline 20 – GRE lined tubing is a 50 year old proven technology for corrosion protection, flow assurance in production and injection tubing.  More than 45,000 wells, 110 million feet have been installed worldwide. In the Middle East, over 1,000 wells apply this technology in Aramco, KOC, PDO, Occidental, ADCO, Maersk etc. In Iraq, Shell – Majnoon have installed in 3 disposal wells, ENI – Zubair in 2 injection wells, Petronas Garraf have ordered for 20 water injectors and Lukoil for 2 water disposal wells

Duoline 20 lining is carried out without modifying or dismantling the coupling in the tubing. This means that the warranty on the tubing is not affected even if the lining is carried out independently by the service provider. This is an established practice in the Middle East and worldwide.

Duoline 20 lined tubing has been supplied to Iraq in the past through OCTG (pipe) suppliers as a package with the pipe  supply. The lining work was carried outside Iraq. The lining service provider, Maxtube is offering to carryout lining in-country, inside Iraq. This note discusses the benefits of availing the services locally in Iraq by entering into contract directly with the Service provider for lining services. It would require the lining services to be tendered out separated from the tubing supply tenders 

1. LOCAL CONTENT & HUMAN DEVELOPMENT INDEX CONTRIBUTION
  1. Lining requires a 2,500 m2 facility to be set up in Iraq with a substantial investment that Maxtube is willing to make. Portable lining equipment is imported, pipe racks are setup, location is developed offering business opportunities for local contractors.
  2. Importation of equipment and components for lining provides opportunities for clearing and forwarding, transportation companies and customs operations.
  3. The process requires local staff that provides employment for Iraqis.
  4. In due course of time, local staff gain knowledge about lining and connection technologies which is a human index development benefit.
2. Recovery and reuse of old / used and stock tubing:

SOC’s pipe yards have a lot of stock of old, unused tubing; these can be inspected and lined for reuse. Duoline 20 lining system can be applied to new and used tubing POOH (Pulled out of hole). Lining with Duoline 20 will arrest further wall losses. Tubing POOH from oil producers can be lined with Duoline 20 for reuse with no further concerns of wall loss from corrosion. 

3. Reduced Inventory:

SOC can reduce inventory of GRE lined tubing as it does not have to be bought in bulk through yearly pipe tenders. Example is the 10 million dollar stock of GRE lined tubing procured by Garraf team in 2014 but not used yet. The local lining facility can be called out to line tubing in small quantities as and when lined tubing is required for the application. 

4. Inspection and Reuse of Duoline 20 lined tubing:

POOH Duoline 20 lined tubing is reusable after inspection. Depending on the connection type, the tubing can be rerun between 4 and 8 times. Re-exportation and importation of tubing for inspection is not feasible out of Iraq. The locally established facility can service this inspection and help in reuse of the tubing.

5. Commercial advantage of taking lining services direct: 

Currently SOC / IOC’s (International Oil companies) procure the Duoline 20 lining services through OCTG mills and suppliers who control the final prices offered to SOC. Cost savings can be expected by going direct to the lining service provider than the pipe supplier.

6. Independence to line any connection: 

IOC’s will have independence to line any connection, which means tubing can be issued from stock or any leftover material for adhoc requirements. At the moment, the GRE lining is tied down to one connection based on who the least priced bidder for the pipe and GRE lining package is.