Economic Evaluation of Chemical Inhibitors for Hydrate Solution in Nigeria Oilfield Flowlines
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363
162
Engineering Science (Science Publishing Group)
2022
English
Nigeria
Abstract
Oil and gas companies across the world have expanded their operations to cold environments like the Offshore Deep-water for more conventional and economical reservoirs as a result of global demand for energy. As Hydrocarbon production continues to increase from both conventional and unconventional reservoirs in harsh environments, Hydrates presents a huge problem in the oil and gas industry because it leads to production losses, and is very expensive in trying to prevent its formation or removal. The hydrate blockage during Deepwater oil and gas exploration will also damage the equipment and threaten personal safety. It also leads to flow interruptions, environmental and safety problems, the interruptions leads to plugging of the flowline, Hydrates still cost the oil and gas industries millions of dollars annually. This paper discusses the existing chemical inhibitors used to mitigate hydrates as well as evaluating economically the cost implication for twelve years in Niger-Delta. In this study, three different types of chemical inhibitors (i.e. Methanol, Mono-ethylene glycol and KHI) were economically evaluated through a cash flow model and eventually the Net Present Value, Internal Rate of Return, Profitability Index, Present Value Ratio and Payback Period were determined and Monte Carlo Simulation was also used to get NPV, IRR and their uncertainties. Their charts show that KHI will generate an NPV of $20.34MM if invested in at Return of Investment of 28% and will also take a period of 3.76 years to recover the investment made into the project. From the analysis, KHI is a better project to invest in because it generates more profit and has a lesser risk than Methanol and Mono-ethylene glycol.
Offshore, Inhibitors Economics, Hydrate Problems, Chemical Inhibitors, Risks
Oil and gas companies across the world have expanded their operations to cold environments like the Offshore Deep-water for more conventional and economical reservoirs as a result of global demand for energy. As Hydrocarbon production continues to increase from both conventional and unconventional reservoirs in harsh environments, Hydrates presents a huge problem in the oil and gas industry because it leads to production losses, and is very expensive in trying to prevent its formation or removal. The hydrate blockage during Deepwater oil and gas exploration will also damage the equipment and threaten personal safety. It also leads to flow interruptions, environmental and safety problems, the interruptions leads to plugging of the flowline, Hydrates still cost the oil and gas industries millions of dollars annually. This paper discusses the existing chemical inhibitors used to mitigate hydrates as well as evaluating economically the cost implication for twelve years in Niger-Delta. In this study, three different types of chemical inhibitors (i.e. Methanol, Mono-ethylene glycol and KHI) were economically evaluated through a cash flow model and eventually the Net Present Value, Internal Rate of Return, Profitability Index, Present Value Ratio and Payback Period were determined and Monte Carlo Simulation was also used to get NPV, IRR and their uncertainties. Their charts show that KHI will generate an NPV of $20.34MM if invested in at Return of Investment of 28% and will also take a period of 3.76 years to recover the investment made into the project. From the analysis, KHI is a better project to invest in because it generates more profit and has a lesser risk than Methanol and Mono-ethylene glycol.
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