Viability of SiO2 Nanoparticles for Enhanced Oil Recovery in the Niger Delta: A Comparative Analysis

Abstract

Abstract Based on the consistent laboratory success of SiO2 and its compatibility with sandstone reservoirs, it has been widely recommended for enhanced oil recovery (EOR). However, the economics must be commensurate with acceptable returns on investment given the current market realities. This study was focused on determining the economic advantage of SiO2 Nano-Fluid flooding for enhanced oil recovery in the Niger Delta as a tool for quality investment decision. To achieve this, a comparative economic analysis was performed by evaluating economic feasibility of Alkaline Surfactant Polymer (ASP) Flooding, Water Alternating Gas (WAG) and SiO2 Nano-Fluid Flooding using a discounted net cash flow model for the Niger Delta and the recovery factors for the compared alternatives obtained from core-flood experiments. Economic indicators including Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI) and Discounted Payback Period were used in ranking the alternative recovery methods based on their performance; and sensitivity analysis on some model inputs performed to observe their effect on the NPV of investment returns. From the results obtained, SiO2 Nano-Fluid Flooding had an NPV of $57.88M with a payback period of 2 years. A profitability index of 1.83 and an internal rate of return of 75% with a hurdle rate of 15% was also observed for this option. ASP and WAG had NPVs of $15.45M and $25.3M respectively, with an internal rate of return above the hurdle rate. The results indicated that while all 3 compared alternatives are profitable for the Niger Delta, SiO2 Nano-Fluid flooding is potentially the most profitable. The consideration of this result and a subsequent implementation would be of advantage to oil producing companies in the Niger-Delta and provide a basis for the local manufacture of SiO2 Nano-particles.