TDU-R Thermal Desorption Unit Technical overview

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Technical overview Project doc.: TDU-R Technical overview QUALITY GROUP BELGOROD RUSSIA, 2017 Name Signature Date Prepared Vitaliy Chaiko 08/03/17 Checked Denis Chaiko 12/03/17 Approved Vladimir Gargoma 10/04/17

Table of contents 1. Purpose... 3 1.1 Introduction... 3 1.2 Advantages of TDU-R unit... 3 1.3 Disadvantages of TDU-R unit... 5 2. Performance parameters... 7 3. General description of TDU-R unit... 9 3.1 Material feed module... 9 3.2 Process module... 10 3.3 Dried material discharge module... 11 3.4 Gas treatment module... 12 3.5 Condensation and separation module... 13 3.6 Non-condensable gas treatment module... 14 3.7 Cooling system module... 15 3.8 Control room... 16 4. Project team... 18 Page 2 of 18

1. Purpose Purpose of this document is to describe system of drill cuttings thermal treatment by indirect heat (TDU-R) and control principles. 1.1 Introduction TDU-R Thermal Desorption Unit - model R The unit for drill cuttings treatment is developed by LLC Quality Group Belgorod company in Russia. The task was set to develop simple, effective and ergonomic system of drill cuttings treatment. Final product after treatment includes recovered oil, water and inert solid phase. Design requirement is to minimize installation time and maximum reduce service demand. The project was started in March 2016, the latest drawings were developed in March 2017. The unit is developed by highly professional engineers and specialists who have great experience in operation of similar units in different countries around the world (Africa, Asia, America and Europe). System of drill cuttings thermal treatment (TDU-R) represents complete solution on drill cuttings treatment. The system provides treatment up to 2 tons/hour of drill cuttings and further separation into three recovered fractions: oil, water and solid phase. The system is supplied with drill cuttings and recovers oil and water by indirect heating in process module. Recovered oil and water can be reused during drilling process and solid phase (due to low total content of hydrocarbons (less than 1%) can be used by a client for road filling or site area preparation, premixing solid phase with sand on site. Technical process of drill cuttings treatment includes material heating by diesel burners. It allows to minimize power consumption resulting in reduction of economic resources cost. The unit is so designed that oil recovered during treatment can be used for burners operation making the whole treatment process much cheaper. Also it shall be noted that the whole technical process of treatment is totally enclosed. 1.2 Advantages of TDU-R unit Mobile Installation 24 hours Minimum power consumption Easy to operate Two operators are required for operation per shift Minimum price compared to foreign analogue Easy to manufacture Able to treat drill cuttings after drying centrifuge and press filter Page 3 of 18

Able to treat viscous drill cuttings from old cuttings pits Heat energy surplus Mobility. The unit is designed based on 20 ft. container in shipping frame allowing quick and easy installation, assembly and transportability by any means of transportation, by sea and land. Installation. Installation will not take much time, about a day (24 hours). Installation speed and time will depend on convenience of selected area where process modules will be assembled into one complex TDU- R. Power. Power consumption will be minimum compared to existing analogues, less than 60 kw / hour. This economy is possible due to diesel burners which are used to heat the unit and maintain operating temperature required for the process. Diesel burners can also operate on oil recovered during treatment of drill cuttings. Operation. TDU-R control program enables to capture and monitor the whole treatment process, control all parameters and operation of all modules and equipment. Operator can easily control operational condition and can timely respond to any emerging problems. It is quite easy to understand and learn how to operate the unit within a short period of time due to program availability and simplicity. The unit is normally operated by two operators per shift; number of operators may depend on quantity of additional equipment to be used during material treatment. Price-Quality. TDU-R unit is budget choice based on price-quality ratio as the company set a task for the engineers to develop the unit simply and qualitatively based on great experience of the specialists who have been working on similar projects in different countries within 17 years. Simplicity of the unit won t affect its capacity and quality will be equal or even better compared to foreign analogue. Treated material. One of the most important advantages of TDU-R unit is possibility to treat easily any material, even after vertical drying centrifuge like Dryer or after cuttings pressing equipment like Mud Cuttings Separator. ТDU-R can also treat easily drill cuttings stored in old pits after preliminary screening of drill cuttings using shale shaker to remove any foreign objects which may get inside the unit. Treatment of material from old abandoned cuttings pits is always challenging and important driver of disposal. Additional capabilities. Surplus of heat energy gained during treatment process can be used: in winter to heat the premises, in summer to get hot water, heat treated material or for other needs. Page 4 of 18

1.3 Disadvantages of TDU-R unit СО2 release due to burners usage Process water requires additional treatment If repair is required, the unit is cooled down to safe temperature for a long time after total shutdown of all equipment Not able to treat coarse debris which may often be found in cuttings pits Exhaust gas СО2 released during operation of diesel burners is the main disadvantage of the unit. There is possibility to install additional equipment to minimize СО2 release but it incurs additional expenses. The second option is to use recovery method; it will considerably reduce gas release but will result in cost increase and TDU-R modification. Process water, obtained after drill cuttings treatment, has very unpleasant odor and contains variety of chemical elements which don t allow reusing of this water without additional treatment. Practically process water is mixed with treated water and then it is treated in bioreactor with bacteria. The present task is to find solution on water treatment to remove contaminants and odor. Cooldown. In case of damage or forced shutdown of TDU-R unit, desorption chamber shall be cooled down for several hours, so it is impossible to start repair immediately. In this case there is no alternative at the present moment. Coarse debris. In case of treatment of material from old cuttings pits, drill cuttings shall be screened using shale shaker. TDU-R is not designed to treat coarse debris. Other plants such as Incinerator or cyclic UTD are used for coarse debris, stones and metal. Page 5 of 18

Untreated drilling mud Treated drilling mud Shale shakers Centrifuges Solids control equipment Drying unit like MCS Drying centrifuge like WSM-04 Page 6 of 18

2. Performance parameters TDU-R unit is designed to treat drill cuttings generated during drilling: Drill cuttings after cleaning system (shakers, centrifuges and other solids control equipment equipment) Dried drill cuttings after vertical centrifuge like WSM-04, Dryer or Verti-G Dried drill cuttings after Cuttings Separator like MCS or other equipment like Rotary Vac. Drill cuttings of any viscosity or used drilling mud TDU-R unit is able to treat 1-2 tons/hour of hydrocarbon-based drill cuttings. Preferable drill cuttings for treatment: Hydrocarbons content: Water content: Solid phase content: 10% of weight 10% of weight 80% of weight TDU-R capacity will be decreased in case of higher content of water and hydrocarbons. Maximum allowed content of liquid phase is up to 50% by weight: Hydrocarbons 25% Water 25% Solid phase 50% Final product after treatment: Dried drill cuttings in the form of fine solids with hydrocarbons content from 0.5% 0.01% Treated hydrocarbon phase (oil, fluid paraffin, diesel, synthetic and mineral oil) Process water Page 7 of 18

Diagram 1. Process flow diagram of TDU-R material treatment Fin Fan Cooler Gas cleaning screw Scrubber Condenser Feed hopper Separator Process module Scrubber oil Rec oil Water Discharge Diesel Burners Page 8 of 18

3. General description of TDU-R unit TDU-R unit consists of the following main components: 1. Material feed module (hopper, blade mixers, feed conveyor and working platform with stairs) 2. Process module (two desorption chambers, fire box and heating system which includes 4 burners of premium class) 3. Dried material discharge module (outlet box, discharge screw conveyor, solid phase outlet box and rotary valve) 4. Gas treatment module (gas pipe with installed screw and gas scrubber) 5. Condensation and separation module (heat exchangers, water condenser and oil-water separator) 6. Non-condensable gas treatment module (residual gas goes through hydraulic seal, then through coal filter, after filter gas is burnt in fire box or is discharged to the atmosphere) 7. Cooling system module 8. Storage tanks 9. Control room (equipped container with control cabinets for motors and electrical equipment) 3.1 Material feed module Hopper with capacity 3m 3 is used for dry bulk, liquid and viscous drill cuttings. Material in feed hopper prevents entry of air into desorption chamber allowing to isolate drying process from entry of oxygen and avoid gas ignition. Two installed blade mixers are used for mixing of material with required rate depending on drill cuttings composition and different time periods. Level transmitter is installed on top of the hopper. This transmitter shuts down feed conveyor if material level in the hopper is decreased to critical level. Feed conveyor is so designed that it is possible to feed bulk material and material with any viscosity. Feed rate is controlled by control system which provides required volume of feed material in desorption chamber to maintain desired operating temperature and stable treatment process. Working platform with stairs is designed for operator's convenience to visually control technical process and for repair work. Page 9 of 18

The figure below shows model of material feed module Figure 1. Material feed module 3.2 Process module Process module includes fire box with two installed desorption chambers. The main process of material drying takes place in desorption chambers. Each chamber is equipped with mixing screw which moves material to discharge point of heated drill cuttings. Rotation speed of mixing screw can be regulated depending on basic characteristic of treated material. Mixing screw has several blades and scrapers which are installed axially in sections. Blades are so designed that they spread material equally on chamber wall circle-wise, then scraper removes stuck material which is moved slowly to outlet box and when moving the material is mixed constantly to ensure proper heat exchange and effective removal of hydrocarbons and water. 4 diesel burners are installed in a staggered order, each burner heats the specific area and maintains temperature set by operator in stable mode. Burners of premium class can operate on diesel oil and also on oil recovered during drill cuttings treatment. Page 10 of 18

The figure below shows model of process module Figure 2. Process module 3.3 Dried material discharge module Discharge module consists of two outlet boxes, discharge screw conveyor and rotary valve. Dried material is discharged through side hole of desorption chamber to outlet box-1. Screw conveyor discharges solid phase to outlet box-2 continuously. Sufficient level of solid phase is provided in outlet box-2 which serves as a seal to block air entry into the chamber. The box is equipped with level switch which controls timely opening of rotary valve for discharge of treated material. Page 11 of 18

The figure below shows model of dried material discharge module Figure 3. Dried material discharge module 3.4 Gas treatment module Gas line is the first stage of gas treatment for solids removal. Gas line is equipped with special screw. When vapor passes, small particles of solid phase hit flights of screw and settle down. Screw is started by timer to clean gas pipe from layer of settled particles and removes accumulated layer of small particles back to the chamber. The second stage is gas scrubber where remaining small particles of solid phase are settled down. When passing through oil flow, solids are saturated with oil, become heavy and settle down resulting in vapor cleaning. Small quantity of gas is condensed in this scrubber so scrubber can clean itself from settled dust. Level switch controls oil level in gas scrubber, surplus oil is pumped into feed hopper tank. Page 12 of 18

The figure below shows model of gas treatment module Figure 4. Gas treatment module 3.5 Condensation and separation module The first stage of condensation: treated gas passes through cooled tubes of heat exchanger. The second and third stages: gas and vapor condensation by water spraying. Gas is supplied to tanks with Raschig rings and numerous spray nozzles where vapor condensation takes place due to water spraying. The next stage is separation of condensed liquid into fractions. Gravity separator separates liquid into oil and water. Separated water and hydrocarbon fraction is pumped from separator to tanks. Page 13 of 18

The figure below shows model of condensation and separation module Figure 5. Condensation and separation module 3.6 Non-condensable gas treatment module Small quantity of gas which was not condensed in vapor condenser is removed from the unit through hydraulic seal, then through coal filter and after that is discharged to the atmosphere. The second option is burning of non-condensable gas in TDU-R fire box. For this purpose noncondensable gas line was designed which supplies gas through flame arrestor resulting in disposal of noncondensable gas and saving small quantity of oil. Operator can use either the first or the second option of gas disposal depending on situation which allows using one of the options. The third option of gas disposal is use of cold plasma. Page 14 of 18

The figure below shows model of non-condensable gas treatment module Figure 6. Non-condensable gas treatment module 3.7 Cooling system module Cooling system plays an important role in technical process providing required temperature conditions for all systems and process modules of the unit. Cooling system is filled with water and glycol usually at the ratio 50x50 depending on climate and place where fin fan cooler will be used. Temperature sensor of cooling system is displayed on control panel and operator can control operation of cooling system. The figure below shows model of cooling system module Figure 7. Cooling system module Page 15 of 18

3.8 Control room Control panel is installed in control room and is managed by control system Supervisory Control and Data Acquisition (SCADA). TDU-R unit is operated in automatic mode. Also distribution panels of electrical equipment of all systems, modules and PLC control panels are located in control room. The unit is equipped with audible and visual alarm so operator can respond immediately to any emergency situation. Remote control is provided for TDU-R so operator can control operation of the unit at a distance from control room. Video monitoring is provided for easy operation of TDU-R unit. The figure below shows model of control room Figure 8. Control room Page 16 of 18

Diagram 2. Overview screen of TDU-R operator interface Page 17 of 18

4. Project team TDU-R project was executed by team of professionals. Technical support, consultations and project support: 1. Viktor Bocharov Doctor of Biological Sciences, Candidate of Chemical Sciences, Professor. Russia 2. Elena Knysh Technical translator. Kazakhstan 3. Natalia Tereshenko Manager LLC Quality Group Belgorod. Russia 4. Ivo Klaric Director Eagle Technology. Bosnia and Herzegovina 5. Tore Ausland CEO Quality Group AS. Norway Engineers: 1. Danil Averkov Design Engineer. Russia 2. Aleksandr Ischuk - Design Engineer. Russia 3. Vladimir Polevoy - Design Engineer. Russia 4. Roman Selukov E&I Engineer. Russia TDU specialists with international work experience: 1. Vladimir Gargoma International specialist. Russia, 17 years of work experience 2. Vitaly Chaiko- International specialist. Kazakhstan, 16 years of work experience 3. Denis Chaiko - International specialist. Kazakhstan, 15 years of work experience Page 18 of 18