Model Application That Monitors and Evaluates the Economic Viability and Cost-effectiveness of Modular Gas Processing Plants for Gas Utilization in Field-X

Abstract

This paper express model application that monitors and evaluates the economic viability and cost effectiveness of modular gas processing plant for the utilization of gas in Field-x. Critical evaluation has shown that these oil companies waste (flare) this precious resource primarily due to lack of processing infrastructures and remoteness of the field. Discounted cash flow analysis was used to evaluate the developed model for the utilization of associate gas for the marginal field. The profitability of the project was evaluated at discount rates of 5%, 10%, 15%, 20% and 25% for a project life cycle of 10 years. The payback period for each scenario was approximately 2 years. Net Present Value (NPV) observed an increase almost linearly with time until later periods (about 5 years) which the relationship with non-linearity was visible. This suggests that the project was approaching its peak production, and there was a progressive decrease in the amount of gas flared. The Net Present Value (NPV) and Return on Investment (ROI) which is a fair indication of the profitability index of the project increased with reducing discount rate. All values of NPV were positive, and the Profitability Index (PI) of the project was greater than one. The regression model was also compared with the observed data from the field and the percentage error in prediction was less than 5% for all scenario of discount rate.