EMPIRICAL MODEL AND SOFTWARE DEVELOPMENT FOR CRUDE OIL CARGO QUANTITY MEASUREMENT AND DISCREPANCIES DETERMINATION IN NIGERIA

Abstract

The petroleum industry is faced with measurement problem. This problem could be attributed to low value of petroleum products derived at the time of installation. However, over the years, with increasing crude oil prices of associated petroleum products, there is need to ensure that cargoes loaded and discharged are measured more accurately with minimum loses. Hence, this research focuses on development of an empirical model for oil cargo quantity shipment, discrepancies determinations in Nigerian oil and gas sector. In order to achieve the objectives of this research, collection of data of past shipping activities were carried out. The data collected were statistically analyzed using MATLAB and model was developed as well as a discrepancy predictive software, using Visual Basis Software. The volume correction factor (VCF), a factor used in converting crude oil volume at tank temperature to volume at standard temperature 15oC was determined. The weight correction factor (WCF), a factor used in converting volume of crude oil in barrels to weight in long tons was generated through a model which can be used to get the corresponding weight correction factor at different temperatures. A comparison was done between the results generated from the developed software and the certificate of quantity COQ of crude oil obtained from the Department of Petroleum Resources in the Ministry of Petroleum Resources, Nigeria (July 2019). It was found out that 80 metric ton valued at N12,000,000.00 of crude oil was lost due to the miscalculation of the transported crude oil. With the aid of this software, similar errors in crude oil shipment can be detected and minimized.