$32M oil facility near the NM border was losing 800 BBL/day, flaring black smoke, and facing shutdown threats from regulators and the midstream. Oxygen infiltration and seized VRUs added to the crisis. We were brought in to help stabilize and solve it.
Project Spotlight: Troubleshooting & Optimization of Oil Facility Experiencing Severe Operational Challenges
This newly constructed $32 million oil battery near the New Mexico state line was facing a series of critical operational challenges. The facility was losing an estimated 800 BBL/day of oil into its water tanks, experiencing severe flash gas surges that overwhelmed and seized both VRUs on the tank vent system, and struggling with poor-quality NGLs entering storage. Compounding the situation, persistent black-smoke flaring had drawn the attention of regulatory agencies. Both the TCEQ and EPA were threatening substantial fines and potential facility shutdowns if immediate corrective action wasn’t taken. In addition, oxygen infiltration into the sales gas system had prompted a shutdown warning from the midstream gas purchaser, further escalating the urgency of resolution.
Our team was engaged to assess and help resolve critical operational issues at a newly commissioned facility producing approximately 60,000 BBL/day of water and 800–1,000 BBL/day of oil. The facility was experiencing a combination of process, emissions, and reliability issues that risked regulatory intervention and production downtime.
Key Issues Identified:
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Oxygen infiltration into the vapor recovery system, triggering a shut-in warning from the midstream provider.
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Excessive flaring beyond permitted volumes, prompting warnings from the TCEQ.
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Condensate contamination and oil losses: Up to 1,000 BBL/day of oil was entering water tanks due to process imbalances and vent routing.
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VRU reliability problems: Three of five VRUs were offline, two of which were damaged from liquid carryover.
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Inadequate gas handling: Heavy gas was saturating lines, forming liquid condensate throughout — even between the LP FKO and the flare stack.
Root Cause Analysis & Observations:
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VRU suction lines were connected to truck loading vapor return lines, creating a potential oxygen ingress point.
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Gas blanket systems were non-functional due to poor control tuning and incorrect pressure settings.
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Compressor liquids were being routed to the water tanks, leading to unexpected flash gas and hydrocarbon carryover. This introduced high volumes of gas and splash-over into vent systems, contributing to oil contamination and increased flaring.
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Flare system lacked proper back-slope and air control, resulting in black smoke and incomplete combustion.
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Separator pressures were elevated (150 psig), increasing downstream liquid load and flash volumes.
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Facility operating conditions exceeded design parameters (150 psig at 150°F vs. 100 psig at 108°F), stressing the system and impacting NGL separation.
Recommendations & Actions Taken:
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Commissioned the backup VRT VRU (SK0701) and optimized setpoints to reduce tank pressure surges.
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Reduced separator pressure from 125 psig to 100 psig to lower flash volumes and gas loading on the VRUs.
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Re-evaluated gas blanket control logic and recommended a full system function test.
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Redirected compressor liquids to NGL tanks rather than water tanks to minimize hydrocarbon losses and reduce vapor load on the tank vent system.
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Suggested regrading the flare line to ensure proper drainage and eliminate persistent condensate pooling.
This hands-on troubleshooting effort combined real-time field observations with process engineering to improve facility reliability, reduce emissions, and preserve valuable hydrocarbon volumes.
Interested in quality engineering services for your upcoming oil and gas development? Contact us today to discuss how we can help ensure the success of your next project.