Objectives: Nigeria has a significant conventional and heavy
oil resource base. Despite the fact that the bulk of conventional oil reserves
have been produced since independence, heavy oil reserves have gone unexplored
due to low primary production recovery and, as a result, worries about economic
viability under the current budgetary framework. This chapter investigates the
use of the Steam Flooding enhanced oil recovery (EOR) method utilising
appropriate Nigerian heavy oil reservoirs as a case study, aims to construct a
diagnostic model to predict performance, and assesses the economics to
determine the EOR method's viability. As heavy oil is developed, Nigeria's oil
reserves and production will grow.
Study Design: Following a non-disclosure agreement, data for
two heavy oil reservoirs in Nigeria was acquired from two oil corporations
(NDA)
Studying at the Emerald Energy Institute at the University
of Port Harcourt in Nigeria from 2016 to 2021.
Methodology: To select steam flooding for the examined
reservoirs, the screening criteria of commercially effective EOR technologies
were used. The Design of Experiment (DoE) method was used to analyse the
reservoirs and operational parameters, as well as to find their optimum values,
which were then utilised to forecast reservoir performance. Using Discounted
Cash Flow Analysis, the economics of the steam flood technique recommended for
the reservoirs in question were also assessed (DCFA).
Results: The steam flooding technique was shown to be
technically and economically viable for the heavy oil reservoirs studied. In
comparison to the water flooding approach, which had a 13 percent OOIP and
natural depletion of 9 percent for the offshore reservoir, the steam flood had
an excellent recovery efficiency of 24 percent. The recovery efficiency for the
onshore reservoir was 20% for steam flood and 4% for natural depletion. The
project was found to be viable even at a worst-case heavy oil price of US$15,
according to the economic analysis.
Conclusion: Steam flooding is a viable method for developing
heavy oil reservoirs in Nigeria that match the screening criteria, hence
increasing the country's oil reserves and production.
Recommendation: Fiscal policy should be changed,
particularly the petroleum profit tax, which should be reduced from 85% to 50%
to encourage operators and investors to pursue steam flooding and other EOR
approaches.
Author(S) Details
Okoro Emmanuel Evans
Emerald Energy
Institute, University of Port Harcourt, Nigeria.
Mike Onyekonwu
Emerald Energy Institute, University of Port Harcourt, Nigeria.
Joseph Ajienka
Emerald Energy Institute, University of Port Harcourt, Nigeria.
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