This paper investigates the economic feasibility of extending the production life of a small mature oilfield using EOR coupled with CO2 sequestration. We describe the physical aspects of this project, as well as, present a breakdown cost methodology in order to estimate the main financial determinants of the integrated EOR with CO2 sequestration, that is, the cost of capture, compression, transportation and storage. A cash flow and risk analysis is carried out whose main result is a NPV of US$ 3.2 million. A sensitivity analysis shows that project NPV is most sensitive to oil price, oil production and CAPEX. In addition, an environmental benefit of storing 0.73 million tonnes of CO2 over 20 years is achieved.

Keywords:
cash flow, enhanced oil recovery, npv, investment, oil price, economics, co 2, sequestration, student 20, oilfield
Subjects:
Reservoir Characterization, Improved and Enhanced Recovery, Unconventional and Complex Reservoirs, Storage Reservoir Engineering, Environment, Sustainability/Social Responsibility, Asset and Portfolio Management, Chemical flooding methods, Coal seam gas, CO2 capture and sequestration
Copyright 2005, Society of Petroleum Engineers
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