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SCOPE OF WORK & SUPPLIES (INTRODUCTION & DESCRIPTION) UNDERGROUND CIVIL WORKS

SECTION: C-1.1

STRATEGIC STORAGE OF CRUDE OIL PROJECT, VISAKHAPATNAM

Page 1 of 8

6838-01-16-56-0001 Rev. 1

SCOPE OF WORK & SUPPLIES (INTRODUCTION & DESCRIPTION) UNDERGROUND CIVIL WORKS PROJECT :

STRATEGIC STORAGE OF CRUDE OIL

OWNER

:

INDIAN STRATEGIC PETROLEUM RESERVES LTD.

PMC

:

ENGINEERS INDIA LTD.

JOB NO.

:

6838

1

24.08.2007

REVISED & ISSUED FOR BID

RR

CCB

AN

0

21.05.2007

ISSUED FOR BID

RR

CCB

AN

Rev. No

Date

Purpose

Prepared by

Checked by

Approved by

Format No. EIL-1641-1924 Rev.1

Copyright EIL – All rights reserved

1.0

SCOPE OF WORK & SUPPLIES (INTRODUCTION & DESCRIPTION) UNDERGROUND CIVIL WORKS

SECTION: C-1.1

STRATEGIC STORAGE OF CRUDE OIL PROJECT, VISAKHAPATNAM

Page 2 of 8

6838-01-16-56-0001 Rev. 1

INTRODUCTION The Government of India proposes to construct underground rock cavern storage of imported high sulphur crude oil at Visakhapatnam based on the detailed feasibility report (DFR) prepared by Engineers India Limited (EIL). This storage will be used as strategic reserves for the country during emergencies/disruption of supplies. The Government of India has set up a Special Purpose Vehicle –Indian Strategic Petroleum Reserves Limited (ISPRL) – a wholly owned subsidiary under Oil Industry Development Board (OIDB) to implement, maintain and operate the strategic storages on behalf of the Government. Engineers India Limited are appointed as the Project Management Consultants for the project. The total work is proposed to be carried out as two parts, Part-A and Part-B. Part-A shall include civil works for underground rock caverns. Part-B includes the above ground facilities, including all shaft and cavern equipment and mechanical works. The principle of storage of oil in underground rock caverns essentially employs ground water pressure for containing the oil within an unlined rock cavern. It is an established system successfully followed in many countries. Based on geological, geo-technical and hydro-geological investigations conducted at the site, it has been established that rock formations at Visakhapatnam site, in conjunction with ground water conditions are suitable for construction of such caverns with hydro-geological containment. The storage scheme as defined in the Basic Engineering Design (BED) and enclosed drawings is based on the basic engineering performed for a storage capacity of 1.33 MMT.

2.0

PROJECT SITE Visakhapatnam, one of the ten major port cities in India, is located on the east coast in north-eastern part of Andhra Pradesh state. It is about 880 km south-west of Kolkata and 780 km north-east of Chennai by rail extending along the shore of the Bay of Bengal. The port, with the advent of the roadways and railways increased the commercial and industrial importance of the place. The city with its airport, is well connected by air from the other cities of India (Figure No. 1). Apart from being a port city, Visakhapatnam is also an industrially developed city with a no. of major industries viz. The refinery complex of Hindustan Petroleum Corporation Ltd., Hindustan Zinc Ltd., Coromandal Fertilizers Ltd., Bharat Heavy Plates & Vessels, Hindustan Shipyard Ltd., The Headquarter of Eastern Naval Command of India Navy is also located in Visakhapatnam. . The municipal corporation of Visakhapatnam is spread over an area of about 266 sq. km. with a population of 8.57 lakhs. The project site is only 1 km south of the Visakhapatnam harbour entrance channel and immediately west of the so called “Dolphins Nose” with approximate position being North 17O 41’ and East 83O 17’ (Figure no. 2). The proposed area is an E-W striking hill range that terminates along the shoreline close to the crude oil jetty. The ground elevation varies from +10m to +125m. The surrounding hill sides are relatively steep, reaching up to an elevation of approx. +150 m. The inner part of the “site valley” is only approx. 50 m wide and the elevation of the natural bottom is located at approx. +20 m. The outer part of the “site valley” is approx. 100m wide and has a

Format No. EIL-1641-1924 Rev.1

Copyright EIL – All rights reserved

SCOPE OF WORK & SUPPLIES (INTRODUCTION & DESCRIPTION) UNDERGROUND CIVIL WORKS

SECTION: C-1.1

STRATEGIC STORAGE OF CRUDE OIL PROJECT, VISAKHAPATNAM

Page 3 of 8

6838-01-16-56-0001 Rev. 1

natural inclination of approx. 1:10, from approx. +10 m at the entrance to an elevation of up to approx. +25 m at the middle of the valley. The surface facilities for the crude oil storage will be located within a 300 m long relatively narrow valley, surrounded by the inner part of “Dolphins nose” and adjacent rock outcrops. At the inner part of the “site valley” a small canyon enters from the west of the surrounding hills. No inhabitants are found in the area. The vegetation mainly consists of bushes, in some areas quite dense. Except for a quarry in the NW part of the area, few visible outcrops of rock can be seen. The topography and thorny vegetation suggests that the valley is naturally isolated from the surrounding infrastructures. Some rock disposal, junk and waste from the ongoing project for LPG storage has recently been dumped into the inner part of the valley to an elevation of approx. +25m. 3.0

PROJECT DESCRIPTION The Project consists of an under ground storage facility of at Visakhapatnam for storage of imported high sulphur crude oil in underground-unlined rock caverns. While the crude storage caverns are built underground by excavating hard rock (through conventional drilling and blasting method), its associated facilities e.g. heat exchangers, metering skids, boiler, flare, firewater storage and pumping station, control and personnel buildings, effluent treatment plant, outdoor electrical switch yard, compressed air system, standby power generator, maintenance workshop, etc. shall be located above ground. The submersible pumps will be installed at the bottom of the caverns, to pump out the crude oil for use of refineries whenever required. Crude oil to the Visakhapatnam cavern storage will be first received through the existing unloading facilities for crude oil of HPCL refinery. The tap off from the existing pipeline shall be taken around 2 km from the jetty and location of strategic storage is around 1 km from the pipeline. The residual pressure at tap off point is sufficient to transfer the crude oil to the strategic storage. For transfer of crude oil out of the strategic storage, submersible pumps shall be installed in the caverns and the same pipeline shall be used to transfer crude oil to HPCL refinery, or to load ship tankers at HPCL jetty for supply of crude oil to other refineries.

3.1

Underground Rock Cavern The crude oil storage caverns are designed as one U shaped and one W shaped cavern with a “D”- shaped cross section to store a single crude type. The typical design dimensions of the caverns are as follows: Storage units

Unit A ( W Shaped)

Unit B ( U Shaped)

Cavern width Max. Cavern height: Cavern length (“leg”)

20 m 30 m 840 m

20 m 30 m 320 m

Product intake is located at the end of one “leg” and the pump installation is located at the end of the other “leg” in a shaft with a pump pit for unit B. For unit A there are two product intakes, with one each at the end of the outer “legs” and the pump installation in the shaft with a pump pit is located at the end of the middle “leg”. By this design it Format No. EIL-1641-1924 Rev.1

Copyright EIL – All rights reserved

SCOPE OF WORK & SUPPLIES (INTRODUCTION & DESCRIPTION) UNDERGROUND CIVIL WORKS

SECTION: C-1.1

STRATEGIC STORAGE OF CRUDE OIL PROJECT, VISAKHAPATNAM

Page 4 of 8

6838-01-16-56-0001 Rev. 1

is intended to achieve the requisite oil circulation in the cavern. The cavern roof is horizontal along the full length of the cavern. To facilitate the flushing and cleaning of the floor when the cavern is emptied, the cavern bottom is levelled and covered by non-reinforced concrete laid in slope. The crude will be distributed by a pipeline inside the cavern to the end of the “cavern leg” most distant from the pump pit. At the end of the intake pipe, inside the cavern, the crude oil will be dispersed evenly across the cavern width. This design allows for sediments to separate in the cavern and also for circulation and removal of sludge. 3.2

Water Curtain System The function of the horizontal water curtain is to maintain the ground water pressure in fissures above the storage cavern, so that the water pressure is high enough to prevent gas to leak out from the “cavern legs” of cavern. In fissures connected to the cavern, water will flow towards the cavern, preventing gas leakage out of the cavern. The water curtain tunnel of approximately 6m x 6 m size is located along a centre line between legs of the U shaped cavern, where as for the W shaped caverns the water curtain tunnel is located on top of the middle leg. The floor elevation level of these water curtain tunnels is at –10m. The boreholes are drilled from the water curtain tunnel with spacing of 10 m, with an extension of 10 meters outside the storage caverns. Directions shall be determined during detail design to achieve maximum infiltration in fissures. The boreholes shall be pressurised during the construction. The water curtain gallery and boreholes shall always be at-least 50m ahead of the main cavern to ensure saturation during the construction phase.

3.3

Access to Cavern A main access tunnel, along with branch tunnels are designed to provide access to both the main cavern and the water curtain gallery for construction purpose. In addition the shafts can also serve the purpose of access and ventilation during the construction phase. All access to the cavern, shaft and water curtain system shall be sealed with concrete plugs.

3.4

Muck Disposal Sites A dedicated muck disposal area is located at Lova Garden about 1km from the site. Another disposal site is under finalization.

4.0

ENVIRONMENTAL SETTING

4.1

Climate and Weather The climate of the region is mainly governed by its location in the tropical zone and the monsoon winds in the southern peninsula of Indian sub-continent. According to the prevailing / recurring monsoon patterns in the region, the year could be divided into four seasons as follows : Pre-monsoon (March-May); Termed as summer season, is characterised by the north easterly winds in the beginning of this season, which shift towards south-westerly in

Format No. EIL-1641-1924 Rev.1

Copyright EIL – All rights reserved

SCOPE OF WORK & SUPPLIES (INTRODUCTION & DESCRIPTION) UNDERGROUND CIVIL WORKS

SECTION: C-1.1

STRATEGIC STORAGE OF CRUDE OIL PROJECT, VISAKHAPATNAM

Page 5 of 8

6838-01-16-56-0001 Rev. 1

later part. The ambient temperatures are highest in this season, and also the probability of depressions and storms are more in the month of May. South-west monsoon (June-September); This is generally rainy season with predominant south-westerly winds. There are occurrences of depressions and cyclones during this season depending on the location of the monsoon trough. Post-monsoon (October & November); Generally dry weather with variable winds during the month of October. This is also a transition period from south-west to northeast monsoon. Cool season (December-February); The ambient temperatures are relatively lower with mild winter conditions. The frequency of occurrence of storms to severe cyclones is high during November and December months, accordingly the rainfall is also maximum during these months in the region. The predominant wind direction is North easterly in the season. 4.2

Temperature As per the climatological data recorded for Visakhapatnam, the mean daily temperatures vary from 17.5O C to 34.0O C in different months of the year. Being a coastal city the variation in ambient temperature is very limited, however within this, there is distinct seasonal variation observed in the temperature. The pre-monsoon and beginning of SW monsoon records highest temperature (summer) whereas; December and January months records lowest temperatures. The extreme temperatures recorded over 30 years period are 12.8O C as the lowest in January and 44.4OC as the highest in the month of June.

4.3

Relative Humidity The relative humidity is fairly high and uniform throughout the year representing the coastal phenomena. The mean values of daily relative humidity vary between 71% to 84%.

4.4

Rainfall The wet season persists mainly during the south-west monsoon and slightly before and after this period. September and October are the wettest months of the year with an average rainfall of 167.3mm and 259.3mm respectively. The average annual rainfall is 973.6mm.

4.5

Wind The prevalent wind regime is seasonally dependent with wind direction from the south-west or the north-east depending upon the monsoon season. The mean wind speed in different months vary in the range of 6.3 kmph to 16.5 kmph with annual average of about 10.8 kmph. It is known however that wind speeds as high as 150 kmph may be experienced at the coast occasionally during cyclones in Bay of Bengal.

4.6

Cyclones In the Bay of Bengal, depressions are liable to be encountered at all seasons of the year. With a local fall in pressure, wind gust towards the depression from all sides forming into a revolving storm. The average number of cyclones occurring in the Bay of Bengal as whole varies from 4 to 5 per year all along the Bay of Bengal Coast.

Format No. EIL-1641-1924 Rev.1

Copyright EIL – All rights reserved

4.7

SCOPE OF WORK & SUPPLIES (INTRODUCTION & DESCRIPTION) UNDERGROUND CIVIL WORKS

SECTION: C-1.1

STRATEGIC STORAGE OF CRUDE OIL PROJECT, VISAKHAPATNAM

Page 6 of 8

6838-01-16-56-0001 Rev. 1

Sea-water temperature and salinity The sea-water temperature off the coast varies from a mean of about 25OC in January to a mean of about 29O C in October. The salinity varies from a mean of 24.4% in November to a mean 34.2% in April.

4.8

Use of the Site Information The climatic and environmental conditions described above (sections) are for general information only. Bidders are advised to familiarize themselves with the prevalent environmental conditions.

Format No. EIL-1641-1924 Rev.1

Copyright EIL – All rights reserved

SCOPE OF WORK & SUPPLIES (INTRODUCTION & DESCRIPTION) UNDERGROUND CIVIL WORKS

SECTION: C-1.1

STRATEGIC STORAGE OF CRUDE OIL PROJECT, VISAKHAPATNAM

Page 7 of 8

6838-01-16-56-0001 Rev. 1

Figure No. 1: Location Map of Visakhapatnam

Format No. EIL-1641-1924 Rev.1

Copyright EIL – All rights reserved

SCOPE OF WORK & SUPPLIES (INTRODUCTION & DESCRIPTION) UNDERGROUND CIVIL WORKS

SECTION: C-1.1

STRATEGIC STORAGE OF CRUDE OIL PROJECT, VISAKHAPATNAM

Page 8 of 8

6838-01-16-56-0001 Rev. 1

STRATEGIC STORAGE PROJECT SITE

Figure No. 2: Indicative Location of the Strategic Storage Project Site

Format No. EIL-1641-1924 Rev.1

Copyright EIL – All rights reserved

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