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EXPLORATION DRIVEN

DELIVERY FOCUSED

Production Chemicals Optimization CongressImplementing a Metric-Driven

Chemical Management Program

Presented by:Dr. Huz Ismail, Production Chemistry and Integrity Management

Leslie Malone, Senior Staff Engineer

July 29th, 2015

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Agenda

• Challenge• Chemicals

• H2S• Paraffin• Biocide• Corrosion• SI

• Practical Application

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Murphy Oil-Eagle Ford Operations

• Over 150,000 acres • 600 + producing oil wells• H2S: Range 0 to 7%• CO2: 0 to 10%• Geographically dispersed in

the Eagle Ford• 430 beam pumps operating• Eagle Ford Head office,

Houston, TX

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Global Energy Demand

• IEA - World Energy Outlook Special Report 2015: Energy and Climate Change – June 2015

Hydrocarbon still dominate in 2030 and beyond

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Peak Oil

Peak Oil Demand: The Role of Fuel Efficiency and Alternative Fuels in a Global Oil Production DeclineAdam R. Brandt †*, Adam Millard-Ball ‡, Matthew Ganser †, and Steven M. Gorelick §† Department of Energy Resources Engineering, Stanford University, Stanford California 94305, United States

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US Unconventional Plays

EIA – 2014 Report

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Conventional

7

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Several H2S Database• Operations• Field Service Reports from Chemical Service Provider• Meters

Database

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Integration

Integrity

Projects

Facilities

OperationsReservoir

Geology

Regulatory/HSE

Data Historian

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• Drilling• Toe up, toe down…

• Completions• Frac Water Chemistry, well

spacing, guar, proppant…• Productions

• Oil, Gas, Water Rate, T, P…• Water Quality: TSS, TDS, pH,

Dissolved Oxygen

• Water Chemistry: Na, Mg, Ca, Ba, Sr, Fe, HCO3, SO4…

• Oil Assay: API, Wax, %Asphaltene, Naphthanate

• Production Chemistry• Operational Data

• Shut-down, turn around, Pigging…

• PDF

• Locked Excel

• Standardize Report formats

• Develop a Strategy for monitoring

• KPI

Best Practices - Database

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H2S

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Data Visualization

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1

10

100

1000

10000

LBS

OF

H2S

No Treatment

Direct Injection

Facilities Review

Liquid & SolidTowers

Sour Sales

/Amine

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Direct Injection – Water Soluble ScavengerKey

Low InjectionRate

MediumInjection

Rate

HighInjection Rate

AM PM

Day 1

Day 2

Day 3

Day 4

Day 5

Vendor 1 –Well 2

Vendor 3 –Well 2

Vendor 2 –Well 1Vendor 1 –Well 1

OS-Well 1

HS&E Baseline-Well 1 Baseline-Well 2

Vendor 3 –Well 1 Baseline-Well 1

Vendor 2 –Well 2

OS-Well 2

WELLHEADPIGLINE

Water◦ pH◦ Hardness Calcium Magnesium

◦ Millipore◦ Emulsion

H2S◦ Oil◦ Water◦ Gas◦ pigline

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H2S Scavenger Performance & Economics

0.01

0.1

1

10

100

0 10 20 30

[H2S

]ppm

$0

$75

$150

$225

$300

Cost

/day

MEA triazine scavenger

gal/days

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H2S Scavenger – Flow Assurance

5 gal 1 lbs. 2.4 Ibs.

H2S (ppm)

Gas Rate (MCFD)

Chemical rate (GPD)

dithazine(Ibs/day)

100 500 23 1110000 500 2347 1100

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Conclusions – H2S

• Triazine is still the most economical option for sub-50 IbsH2S application

• Oil Soluble – poor efficiencies• Centralized treatment best strategy• Solid Tower not the best option due to CAPEX

Treatment Technology* Cases Expectation ($/Ibs of H2S)

Actual ($/Ibs of H2S)

Low High

Direct Injection 50 $18 $ 31 $ 202**

Liquid Tower 8 $13 $ 15 $ 21 Solid Media Tower 4 $ 6 $ 20 $ 41 *CAPEX + OPEX – 3 year payout**when managed by service provider

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Paraffin

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Paraffin Inhibitor

Crystal Distortion

Polymer Co-crystallisation

N-Alkane Crystal Formation

Wax Dispersants

Advantages over conventional paraffin inhibitors:• Lower dosages required• Can be applied below the Wax Appearance

Temperature

Wax dispersant

Wax crystal agglomerate

Solvents• Xylene• Diesel• Kerosene• Tolune• Naphtha

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HTGC

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

0 15 30 45 60 75 90 105

%W

T.

CARBON NUMBER

Paraffin Deposition

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Conclusions from the Model

• Dispersant should the best results

• Solvent also provide good results but high dosage made it uneconomical

• Crystal Modifier shows poor results

0

200

400

600

800

1000

1200

0 1 2 3 4

BPD

Years

Production

Oil Production Water

No Cap String

No Treatment

Dispersant or Solvent

Topside

Capstring – Continuous Dispersant or Solvent

OR

Backside Batch Treatment

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Artificial Lift Production Equals Flowing Production

Gros

s Oil

Prod

uctio

n, B

OPD

Flowing

Rod pumped

Other AL

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Chemical Pumps

• Fit for purpose• Maintenance• Injection Rate

Practical Applications

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Practical Applications

• Installed at 5000 ‘• Connected• Plugged• Failures

Cap Strings

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Practical Applications

• Management• Tracking• KPI’s

Hot Water - Batch Treatments

Insert photos here

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Practical Application

• VSD to automate injection rate• Adjust rate based on production• Shut off chemical automatically when well is down

Automation

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• Questions