How to improve oil value using H2S scavenging

Customer received a 72 day Return on Investment (ROI) from new Hydrex Chemical Service Program.

The Client's Needs

Stretched as most oil producers are for profitability during times of low crude prices, it remains critical to be able to sell every barrel of oil produced from an active well. When operational issues arise which prevent the sale of product, this situation only worsens.

The levels of H2S entrained in a customer’s produced oil was causing local oil transport companies to reject the product for sale. Without the ability to sell their product, crude oil storage vessels continued to fill and the resultant lack of storage space threatened to shut down the operation.

The customer needed to quickly reduce the levels of H2S in the headspace of their crude oil storage vessels, as well as in the oil phase of their production going into the battery. Finding a solution was challenging, as H2S levels in the produced crude were commonly in the 10,000 – 15,000 ppm range. The objective was to reduce H2S levels below 100 ppm in order for the product to meet their customers specifications for purchase and pickup.

The Solution

Veolia was asked to participate in the design of a solution which was targeted at applying the correct chemical product at the optimal dosage into the proper point of application.

After surveying the well site and vessel system, it was determine that a systematic approach had to be taken, applying and controlling the feed of a proprietary H2S scavenger into the emulsion breaking unit immediately after the oil dump. While more retention time would have been optimal, the system dynamics would not allow for that. An injection quill was installed to ensure that proper agitation was achieved in the flowing crude.

Program Description & Results

Veolia’s Hydrex 8873 was selected as the chemical solution due to it’s success in nearby fields. It has the ability to scavenge hydrogen sulfide in all phases of production without sacrificing performance for economics. The injection was installed and turned on at an injection rate of 15 gallons per day.

Twelve hours after implementation, the production foreman reported that the oil had been sold with no traceable H2S present in the atmosphere or in the oil. This well has not had an oil reject since the Hydrex 8873 automated chemical feed and control program was implemented. The well operator has since implemented this chemical program on each of its batteries in this field.

Performance

Since the program has been implemented, the following results have been achieved:

  • Produced oil H2S levels are not only well below 100 ppm, in most cases they are virtually non-detectable
  • Produced oil sales now have increased back to normal levels, restoring the well’s profitability
  • Due to the low H2S levels in the oil, the client’s Marketing team has been able to negotiate a better selling price for the oil, and spark interest in other buyers.
  • On-site, Hands Free chemical deliveries eliminated product run-outs
  • With H2S now at very low levels, corrosion rates throughout the system are lower, which will ultimately improve the reliability and life of the well

Customer Value

The client established a successful chemical program through Veolia, using Hydrex 8873. The program enables their wells to be operated safely and their oil to be sold regularly and profitably. With no recorded downtime attributed to high Hydrogen Sulfide concerns since the Hydrex program was implemented, the operator has been able to increase the profitability of the well through regular oil sales to it’s clients.

Being able to sell the rejected oil already in tankage, the client received a one-time savings of $20,500. More importantly, improved oil quality enabled them to increase pricing, adding $4125/day in revenue across the field. 74 day Return on Investment (ROI) was achieved by the implementation of the Hydrex 8873 program.

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