We have received the following test report from India, where a 6” LKC paraffin control system was installed on an offshore oil platform which has a total of eight wells, one being treated with the LKC system for a comparison test.
We have been given the following report:
- Head pressure
- Barrels of liquid produced per day
- Barrels of oil produced per day
Unit installed November 29, 1999 (today: date April 26, 2000)
The produced fluid (water and oil mixture) analyzed before and after installation of the LKC reflects the increase in carbonate concentration and no increase in bicarbonate concentration indicating lack of carbonate scale in the pipeline. Tests carried out before and after installation, reflects a gain of approximately 60 barrels of oil per day.
The customer is preparing a formal press release and has not given us permission to use the company name until the press release is made public.
An increase of 60 BPD @ $30.00/barrel = $1,800.00/day There are seven more wells on this platform (total of 8) 8 x $1,800.00 = $14,400.00 per day in additional production X 365 days per year = $5,256,000.00 per year in additional production after all 8 are installed.
This is a typical return on investment that we have observed in other applications, both offshore and oil wells on land. Once you obtain the actual production figures and the cost of chemicals, hot oiling, pigging, and downtime while administering these tasks, we can plot a return on investment (ROI) for project justification.