PC Duracaps(r) CI Corrosion Inhibitor Brochure 2016

Production Chemical Group

PC Duracaps® CI Encapsulated Corrosion Inhibitor

TechnologicalReportDownHoleCorrosionProtection

Registered Office: Third Floor, Ulysses House Foley Street Dublin 1 Ireland. Telephone: +353 (1) 888 1114 Fax: +353 (1) 888 1171

Web Site: - www.productionchemical.com

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PRODUCTION CHEMICAL Group of Companies

CONTENTS

Page

Section I- Over View Duracaps® CI – Technology Report----------------------------------------- 3

Section II-PC Duracaps® CI Characteristics and Physical properties--------------------------- 4

Section III-Factors influencing Caps release and transport---------------------------------------- 5

Section IV-PC Duracaps® CI Advantages-------------------------------------------------------------- 5

Section V-Cost comparisons per annum-------------------------------------------------------------- 6

Section VI- Estimating Life Expectancy --------------------------------------------------------------- 7

Section VII- Application of PC Duracaps-------------------------------------------------------------- 7

Section VIII- Monitoring --------------------------------------------------------------------------------- 7

Section IX- Shipping and Handling -------------------------------------------------------------------- 8

Contact Information------------------------------------------------------------------------------------- 8



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Encapsulated Corrosion Inhibitor

PC Duracaps® CI Technology Report Corrosion Inhibitor for Controlled, Long Term Release Section I: Overview 1.1 Introduction

The concept to introduce PC Duracaps® CI encapsulated Corrosion inhibitor into the market was to replace the conventional downhole treatments against corrosion. These traditional periodic batch treatments require large amounts of corrosion inhibitor at every single batch treatment or continuous injection into service environment to effect a change in the corrosion profile of the well. These treatments are designed to quickly establish an inhibitor film along the production string and reduce corrosion level. Inhibitor film remains on tubing until it eventually "stripped off' by incoming fluids. Hence depending on the type of inhibitor, production volumes & downhole dynamics, a batch treatment can only provide protection for several days or may be up to a week, unless retreatment is conducted to maintain the coating. Although this treatment method has been utilized for many years, it is known to have undesirable side effects, either at the intended target area or downstream of the target area. Some of drawbacks include; significant loss of huge quantity of active product due to non-absorption on the production string, formation damage resulting from incidental introduction of foreign fluids into the production zone, and downstream system upsets due to high feedback concentrations of inhibitor immediately after application. As the batch treatment



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only coats the casing or tubing down to about 500ft from perforations. This means this section has not been coated by corrosion inhibitor causes accelerated corrosion due to unprotected areas resulting in regular casing or tubing failure. Section II: Characteristics & Physical Properties PC Duracaps® CI is a very specialized micro-encapsulated Corrosion Inhibitor designed to provide low level, long term controlled release of corrosion inhibitor. Outstanding characteristics;

• Sustained, Low Level Release Provides Long Term Protection

• Requires No Expensive Continuous Chemical Injection Equipment

• Does Not Damage Producing Formations

• Functions Under a Wide Range of Down Hole Conditions

Physical Properties

Sr. No. Property details 1. Appearance semi solid aggregate specialized complex matrix

of polymer in a liquid Brine 2. Color white semi solid matrices in amber brine 3. Density @ 60 0F 9.15 -9.25 4. Solubility in Water Soluble 5. Specific Gravity(H2O=1) 1.124 6. Flash point >200o F



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Section III: Factors Influencing Cap Release & Transport There are 3 x basic mechanisms, occurring simultaneously, with regards to release and transport of active material namely.

1) Release of active material from capsule’s polymeric matrix. 2) Transport of active material from Duracaps® CI surface to the point where it Contacts

incoming produced fluids forming a concentration gradient. 3) Transport of active material from well bore up to the production tubing string.

Section IV- PC Duracaps® CI Advantages

Through extensive experience of treating wells globally, we have concluded the following

factors, which help the Oil & Gas producing companies to save a lot of time and revenue;

• Complete Protection of the well tubular from bottom to top, unlike a conventional

Corrosion Inhibitor. • Reduce the cost of mobility of machinery & manpower expense every month to well

site for batch treatment, by reducing it to once or maybe twice a year, making huge saving without any continuous scale inhibitor injection.

• Avoid the loss of continuous CI injection down hole due to number of unforeseen reasons such as, pump failure, chemical makeup, inventory at site etc.

• Both Duracaps® CI & SI can be charged together to give protection against Corrosion & Scale.

• Less wear & tear of the well as it will only be shut down once or twice in a year for the Inhibitor treatment.

• PC Duracaps® CI & SI are excellent replacement to continuous injection through Capillary tubing down hole.

• PC Duracaps® CI- unlike conventional squeeze treatment do not have the risk to damage the reservoir/formation.



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Considering the above factors, the cost of PC Duracaps® CI itself is insignificant as compare

to the cost of a conventional Corrosion Inhibitors and its frequency for annual treatment. Similarly, considering the un–interrupted production without any batch treatment for

extensive period, advantages are unmatchable.

Section V- Cost Comparisons per annum

Conventional CI PC Duracaps® CI

Material cost • Quantity of chemical: • Quantity of solvents:

Material cost • Cost of the chemical: 2 drums • Cost of solvents: NA

Frequency per year: • Batch treatment: 24 x application • Capillary tubing: continuous

Frequency per year: • Application: 1 x application

Cost of batch treatment 1. Batch treatment:

(Material cost) x (solvent cost) x (equipment cost) x (man hours) = (value X) ….(i)

(value X) x (cost of production Loss during shut-in) x 24 = (Total expense)

2. Capillary Treatment

(material cost) x (solvent cost) x (equipment cost) x (condensate loss) x (tubing& equipment replacement cost due to un-interrupted injection) x (man hours for monitoring injection) = (Total Expense)

Cost of treatment Charging with Duracaps® CI

(material cost x solvent cost x equipment cost x man hours) = (value Y) …. (i) (value Y) x (cost of production loss during shut-in) x 1 = (Total expense) No capillary treatment required due to continuous release of the chemical for top to bottom protection



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PC Duracaps® CI future for corrosion inhibition downhole Section VI: Estimating Life Expectancy As previously discussed the length of a Duracaps® CI treatment will depend on many factors such as;

• Amount of Duracaps® CI charged into the well • Bottom hole temperature, salinity & pH • Rat hole dimensions • Production volumes

Due to the interaction of these factors, it is very difficult to predict the life expectancy for a given amount of Duracaps® CI. Section VII: Application of Duracaps® CI Production Chemical would like to recommend following methods in detail for placement of PC Duracaps® CI in the rat hole of candidate well;

• Bull heading using High Pressure Pump • Through Coil Tubing Unit. • Using the area between master valve and swab valve as a lubricator



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Section VIII: Monitoring a) Coupons/Probes: Strategically placed corrosion coupons or probes in the system at the

wellhead or along the flow line to identify the severity of corrosion in the produced fluids. b) Fe & Mn counts: Periodic monitoring of iron counts via colorimetric or

spectrophotometric methods during the treatment period can also be used as a means to measure the effective treatment of PC Duracaps® CI.

It is important to obtain a baseline value of Fe & Mn content in the produced fluids prior to application of Duracaps® CI in order to compare counts obtained after and during the treatment period. Section IX: Shipping and Handling

Duracaps® CI is shipped in 55 US gallon lined drums or 200 liters, is Non-Regulated by the US Department of Transportation. As with any chemical, avoid contact with skin, eyes or clothing. If skin or eye contact does occur, flush exposed area with copious amount of water. Material Safety Data Sheets are available upon request. “We have a lot of innovative products which make us one of the

market leaders in Chemical Treatments”

For additional information please contact; Production Chemical Group

Forwarding address England- London Office

Admin Services; PO Box 618, Staines upon Thames, TW18 9GA Telephone: +44 207 118 3477 Fax: +44 207 118 3478

Mobile: +44 973 730065 e-mail [email protected] website www.productionchemical.com

Documents

PC Duracaps(r) CI Corrosion Inhibitor Brochure 2016