Economic Evaluation of Chemical Inhibitors for Hydrate Solution in Nigeria Oilfield Flowlines

Precious Joseph Ekpo; Uche Osokogwu; Solomon Williams

doi:doi:10.11648/j.es.20220704.11

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Economic Evaluation of Chemical Inhibitors for Hydrate Solution in Nigeria Oilfield Flowlines

Precious Joseph Ekpo, Uche Osokogwu, Solomon Williams

Published in Engineering Science (Volume 7, Issue 4)

Received: 10 February 2022 Accepted: 6 June 2022 Published: 29 December 2022

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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.

Published in	Engineering Science (Volume 7, Issue 4)
DOI	10.11648/j.es.20220704.11
Page(s)	54-62
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Offshore, Inhibitors Economics, Hydrate Problems, Chemical Inhibitors, Risks

References

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[10]	Li, X. S., Liu, Y. J., Zeng, Z. Y. et al (2011). “Equilibrium hydrate formation conditions for the mixtures of methane + ionic liquids + water”. J Chem Eng Data 56: 119–123.
[11]	Tian, J. et al. (2011). “Low Dosage Hydrate Inhibitors (LDHI): Advances and Developments in Flow Assurance Technology for Offshore Oil and Gas Productions, in Offshore Technology Conference”. Offshore Technology Conference: Houston, Texas, USA.
[12]	Igboanusi U. P., A. C. O. (2011). “The Advancement from Thermodynamic Inhibitors to Kinetic Inhibitors and Anti-Agglomerants in Natural Gas Flow Assurance”. International Journal of Chemical and Environmental Engineering. 2 (2): p. 131-134.
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[18]	Frostman, L. M, Thieu, V., Crosby, D. L. and Downs, H. H. (2003). “Low-Dosage Hydrate Inhibitors (LDHIs): Reducing Costs in Existing Systems and Designing for the Future”. Paper SPE 80269 presented at SPE International Symposium on Oilfield Chemistry, Houston, 5-8 February.
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APA Style

Precious Joseph Ekpo, Uche Osokogwu, Solomon Williams. (2022). Economic Evaluation of Chemical Inhibitors for Hydrate Solution in Nigeria Oilfield Flowlines. Engineering Science, 7(4), 54-62. https://doi.org/10.11648/j.es.20220704.11

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ACS Style

Precious Joseph Ekpo; Uche Osokogwu; Solomon Williams. Economic Evaluation of Chemical Inhibitors for Hydrate Solution in Nigeria Oilfield Flowlines. Eng. Sci. 2022, 7(4), 54-62. doi: 10.11648/j.es.20220704.11

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AMA Style

Precious Joseph Ekpo, Uche Osokogwu, Solomon Williams. Economic Evaluation of Chemical Inhibitors for Hydrate Solution in Nigeria Oilfield Flowlines. Eng Sci. 2022;7(4):54-62. doi: 10.11648/j.es.20220704.11

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@article{10.11648/j.es.20220704.11,
  author = {Precious Joseph Ekpo and Uche Osokogwu and Solomon Williams},
  title = {Economic Evaluation of Chemical Inhibitors for Hydrate Solution in Nigeria Oilfield Flowlines},
  journal = {Engineering Science},
  volume = {7},
  number = {4},
  pages = {54-62},
  doi = {10.11648/j.es.20220704.11},
  url = {https://doi.org/10.11648/j.es.20220704.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.es.20220704.11},
  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.},
 year = {2022}
}

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TY  - JOUR
T1  - Economic Evaluation of Chemical Inhibitors for Hydrate Solution in Nigeria Oilfield Flowlines
AU  - Precious Joseph Ekpo
AU  - Uche Osokogwu
AU  - Solomon Williams
Y1  - 2022/12/29
PY  - 2022
N1  - https://doi.org/10.11648/j.es.20220704.11
DO  - 10.11648/j.es.20220704.11
T2  - Engineering Science
JF  - Engineering Science
JO  - Engineering Science
SP  - 54
EP  - 62
PB  - Science Publishing Group
SN  - 2578-9279
UR  - https://doi.org/10.11648/j.es.20220704.11
AB  - 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.
VL  - 7
IS  - 4
ER  -

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Author Information

Precious Joseph Ekpo

Department of Petroleum and Gas Engineering, Faculty of Engineering, University of Port Harcourt, Port Harcourt, Nigeria
Uche Osokogwu

Department of Petroleum and Gas Engineering, Faculty of Engineering, University of Port Harcourt, Port Harcourt, Nigeria
Solomon Williams

Department of Petroleum and Gas Engineering, Faculty of Engineering, University of Port Harcourt, Port Harcourt, Nigeria

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Plain Text BibTeX RIS

APA Style

Precious Joseph Ekpo, Uche Osokogwu, Solomon Williams. (2022). Economic Evaluation of Chemical Inhibitors for Hydrate Solution in Nigeria Oilfield Flowlines. Engineering Science, 7(4), 54-62. https://doi.org/10.11648/j.es.20220704.11

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ACS Style

Precious Joseph Ekpo; Uche Osokogwu; Solomon Williams. Economic Evaluation of Chemical Inhibitors for Hydrate Solution in Nigeria Oilfield Flowlines. Eng. Sci. 2022, 7(4), 54-62. doi: 10.11648/j.es.20220704.11

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AMA Style

Precious Joseph Ekpo, Uche Osokogwu, Solomon Williams. Economic Evaluation of Chemical Inhibitors for Hydrate Solution in Nigeria Oilfield Flowlines. Eng Sci. 2022;7(4):54-62. doi: 10.11648/j.es.20220704.11

Copy | Download

@article{10.11648/j.es.20220704.11,
  author = {Precious Joseph Ekpo and Uche Osokogwu and Solomon Williams},
  title = {Economic Evaluation of Chemical Inhibitors for Hydrate Solution in Nigeria Oilfield Flowlines},
  journal = {Engineering Science},
  volume = {7},
  number = {4},
  pages = {54-62},
  doi = {10.11648/j.es.20220704.11},
  url = {https://doi.org/10.11648/j.es.20220704.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.es.20220704.11},
  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.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Economic Evaluation of Chemical Inhibitors for Hydrate Solution in Nigeria Oilfield Flowlines
AU  - Precious Joseph Ekpo
AU  - Uche Osokogwu
AU  - Solomon Williams
Y1  - 2022/12/29
PY  - 2022
N1  - https://doi.org/10.11648/j.es.20220704.11
DO  - 10.11648/j.es.20220704.11
T2  - Engineering Science
JF  - Engineering Science
JO  - Engineering Science
SP  - 54
EP  - 62
PB  - Science Publishing Group
SN  - 2578-9279
UR  - https://doi.org/10.11648/j.es.20220704.11
AB  - 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.
VL  - 7
IS  - 4
ER  -

Copy | Download