EXECUTIVE PETROLEUM COMPANY, LLC › feb9af4a › files...gen related corrosion in water base...

EXECUTIVE PETROLEUM COMPANY, LLC

WATER SOLUBLE CORROSION INHIBITORS OIL SOLUBLE CORROSION INHIBITORS FORMULATED CORROSION INHIBITOR CONCENTRATES SCALE INHIBITORS FLOW IMPROVERS & VISCOSITY REDUCERS DEMULSIFIERS DISPERSANTS OF PARAFFIN & ASPHALTENE NEUTRALIZING AMINE ANTI-FOAMING BIOCIDE H2S SCAVENGERS DRILLING STIMULATION PROCESS AND REFINING

Products... productive allies of the Oil Industry!

1970 NW, 129th Ave., Suite 108, Miami, FL 33182, USA Phone: +1 (305) 859.5403 / (305) 965.9675

www.executivepetroleum.com / [email protected]

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ECOIL OIL & GAS PRODUCTS CATALOG

OIL & GAS PRODUCTS CATALOG

CORROSION INHIBITORS SCALE INHIBITORS

FLOW IMPROVERS & VISCOSITY REDUCERS DEMULSIFIERS

DISPERSANTS OF PARAFFIN & ASPHALTENE SURFACTANTS ANTI-FOAMING

BIOCIDES NEUTRALIZING AMINE

H2S SCAVENGERS DRILLING

STIMULATION PROCESS AND REFINING

EXECUTIVE PETROLEUM COMPANY, LLC manufactures specialty quaternary amines, imidazolines and amido-amines, as well as technology-driven concentrates, which combine multiple components to maximize effectiveness. We have both water- and oil-soluble products and concentrates to suit almost any condition.

Deposition of any kind, including scale, paraffin or asphaltene, restricts flow and lowers production output. For scale inhibition, we have a diverse line that includes phosphonates, phosphate esters, carboxylic acids and polymers. Our range of paraffin and asphaltene concentrates provide technology for any type of gathering system.

Removing water from oil is key in oil and gas production operations. We offer a full line of demulsifier intermediates and can assist in formulating your products with you. We also provide scavengers to remove harmful and poisonous contaminants that exist in oil and gas production.

We have an array of drilling, stimulation, process and refining intermediates, as well as specialty blends and formulations that we have developed in conjunction with our customers. Through innovative, intelligent solutions, we will continue to create the best formulas for your company.

http://www.executivepetroleum.com/mailto:[email protected]



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SUMMARY OF PRODUCTS APPLICATION

Corrosion Inhibitors: Water or Oil Soluble, Intermediates, Formulated Concentrated and Encapsulated A corrosion inhibitor is a chemical agent that prevents the deterioration of metal through reactions with its environment. This compound protects pipeline assets and prevents potentially damaging leaks. Scale Inhibitors: Diluted, Concentrated and Encapsulated

Scale inhibitors are chemicals that prevent the formation of build-up that can occur in water. When these elements form, they can reduce flow in pipes, resulting in costly repairs. Additionally, scale inhibitors can prevent EH&S concerns, such as minimizing the formation of NORMS (Naturally Occurring Radioactive Material). Flow Improvers and Viscosity Reducers: For Crude Oil with low or high asphaltene content

Surfactant agents designed to function as catalysts that interact with turbulent flow rates, reducing turbulence and viscosity, and decreasing the pour point and the coefficient of resistance of crude oils in the pipe flow, significantly reducing surface tension in crude emulsions, which allows to reduce pressure and increase flow, improving its transport capacity and transferring larger quantities of oil much more efficiently. Demulsifiers:

Demulsifiers help separate two unmixable fluids that have been forced together. These elements are essential for providing oil with water contents suitable for refining processes.




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Dispersants of Paraffin and Asphaltene:

These products prevent or minimize the effect of paraffin and asphaltene deposits that can disrupt flow by depositing and plugging right from the wellbore to the refinery. H2S Scavengers:

These elements are used to remove and eliminate harmful and poisonous contaminants that exist in oil and gas production, such as Hydrogen Sulfide, which is necessary for safety and process reasons. Drilling:

Diluted (15%) and concentrated (50%) antifoam. micro encapsulated corrosion inhibitor, scale inhibitor and biocide for controlled, long term release. Stimulation:

Multifunctional surfactants that can be used as: pressure reduction in disposal wells; wetting solids; and paraffin dispersion, also as emulsifier, detergent, wetting agent, solid dispersant or foaming, among other applications. Process and Refining:

Neutralizing amines to assist in controlling the pH and acid corrosion due to HCl and H2S in refinery overhead condenser systems, antifouling, corrosion inhibitors, anti-foaming and H2S scavengers.




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CORROSION INHIBITORS – INTERMEDIATES

ECOIL Product Chemical Description

ECOIL-CAP® Concentrated Alkyl Pyridine Quaternary

ECOIL-CCB® Alkyl Benzyl Quaternary Ammonium Chloride

ECOIL-714® 1:1 TOFA:DETA Imidazoline

ECOIL-814® Concentrated Oil-Soluble Amido-Imidazoline Corrosion Inhibitor

ECOIL-084® Concentrated Tall Oil Imidazoline Ethosulfate Quaternary

ECOIL-047® Composite Alkyl Pyridines Derivative

ECOIL-1611-85® Concentrated Amido-Imidazoline based on Tall Oil and DiEthyleneTriamine.

ECOIL-7711® OxyDiEthylene Bis Alkyl Dimethyl Coco Ammonium Chloride

ECOIL-6811® OrganoPhosphonic Acid Salt

ECOIL-5031® Dimer / Trimer Acid

Used to formulate water-soluble or oil soluble/dispersible corrosion inhibitors for producing oil & gas fields and water injection systems. Good in acidic environments

created by carbon dioxide and hydrogen sulfide production.

Application

Excellent water-soluble corrosion inhibitor for producing oil wells, pipelines, packer fluids and water floods, and as

wetting agent, surfactant and cleaner.

Used in formulations for both oilfield and refinery applica-tions (oil soluble). It can be made water dispersible by adding surfactants or by making a salt with acetic acid.

Used in formulations for both oilfield and refinery applica-tions (oil soluble). It can be made water dispersible by adding surfactants or by making a salt with acetic acid.

Water-soluble and is an excellent corrosion inhibitor for water floods, saltwater disposal systems, packer fluids,

pipelines or producing oil wells.

Base intermediate for corrosion inhibitors formulations in the oilfield, in acidizing, pipeline, refineries and three

phased water-oil-gas gathering and delivery systems.

Used in formulations for both oilfield and refinery applications. It is oil soluble and can be used to make

corrosion inhibitors that require total oil solubility.

Excellent corrosion inhibitor for water floods, saltwater disposal systems, packer fluids, pipelines or producing oil wells. Also used as a cationic surfactant and cleaner.

Water-soluble corrosion inhibitor designed to prevent oxy-gen related corrosion in water base drilling muds, aera-

ted drilling fluids, and in mist or foam drilling applications.

To formulate numerous types of corr. inh. Used in drilling mud applications and as a primary emulsifier for invert

drilling systems, and as a component in drilling lubricants




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CORROSION INHIBITORS – INTERMEDIATES (Cont.)

ECOIL-7031® Concentrated Blend of Imidazoline and Dimer Acids

ECOIL-3931® Crude Dimer, Fatty Acid

ECOIL-2051® Concentrated Mixture of Aliphatic and Heterocyclic Amines

ECOIL-4051®Combination of Amine- based Inhibitors, Quaternary Ammonium Compounds and

Sulfite Oxygen Scavengers

ECOIL-7051®Concentrated Blend of Alkyl Pyridine Quaternary Ammonium Salts, Cyclic Amines and Non-Ionic Surfactants

ECOIL-0151® 85% Active Amido- Amine derived from Tall Oil

ECOIL-2191® Concentrated Tall Oil Imidazoline

ECOIL-9691® Naphthenic Acid Imidazolines

ECOIL-Duracaps C.I.®

Micro Encapsulated DURACAPS® C.I. Corrosion Inhibitor for Controlled, Long

Term Release

For formulating water based or oil based corrosion inhi-bitors. It is also used as a corrosion inhibitor against hy-drogen sulfide in drilling muds, and as neutralizing amine

to form salts for water-soluble corrosion or scale inhibitors for water floods, packer fluids, etc.

Oil soluble corrosion inhibitor used to formulate corrosion inhibitor products for downhole batching or flowline

batching. Highly water dispersible without forming stable emulsions.

Used to formulate corrosion inhibitors and oil mud emulsifiers and wetting agents, and as an intermediate used in drilling and down hole production applications.

Used in all fresh water and brine based packer (annular) inhibitors. If the treatment water contains calcium levels

over 10,000 ppm, the product should be checked for solubility in the brine.

Used in most oilfield system where water-soluble products are required (large solubility window) as in flow

lines, pipelines and water injection systems. It is very effective in systems where hydrogen sulfide present.

Concentrated corrosion inhibitor base that is used to formulate oil soluble and water dispersible corrosion

inhibitors.

Used in formulations for oilfield applications. It can be converted to a quaternary or ethoxylated to make a water-

soluble corrosion inhibitor.

For use in controlling corrosion in refinery overhead systems that are predominantly hydrocarbon (particularly

suited for crude units).

Designed to offset problems associated with conventional batch treatments by providing long term, controlled release of corrosion inhibitor into the target area at concentrations high enough to inhibit corrosion without introducing potentially damaging chemicals into

the reservoir, yet low enough to prevent significant product loss and downstream system upsets.




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CORROSION INHIBITORS – BLENDED CONCENTRATES


ECOIL-7031® Concentrated Blend of Imidazoline and Dimer Acids.

ECOIL-4051®Combination of Amine- based Inhibitors, Quaternary Ammonium Compounds and

Sulfite Oxygen Scavengers

ECOIL-7051®Concentrated Blend of Alkyl Pyridine Quaternary Ammonium Salts, Cyclic

Amines and Non-Ionic Surfactants in a Solvent Package.

ECOIL-7151®Concentrated Blend of Fatty Ammonium Salts. It a unique concentration of Salted

Imidazolines, Cocoquats, and Quaternized Pyridine Compounds

ECOIL-0651®Concentrated Blend of Amines, Primary Amine Quaternary Compounds and an

Imidazoline.

ECOIL-6651®Concentrated Blend of Amines, Primary

Quaternary Compounds and an Imidazoline Quaternary Compound.

ECOIL-8651®Unique Concentration of Amines,

Quaternary Compounds and Salted Imidazoline Compounds

ECOIL-3751® Concentrated Blend of Amines, Amido Amines and Surfactants.

ECOIL-5751®Concentrate of Amines, Quarternary Compounds and Salted Imidazoline

Compounds.

ECOIL-1585®Blend of Alkyl Pyridine Quarternary

Compounds with Imidazoline Quaternarized Amines.

ECOIL-0561® Concentrated Blend of Imidazoline and Dimer Acids

Can be used in most systems where a water soluble product is required. Used in sweet and sour systems.

Good solubility through most brines. Suitable for flow-line, downhole and water injection. Good for systems with

hydrogen sulfide.

Oil soluble product, used to batch onto metal surfaces. Product can be used in systems where you want to

prevent emulsions.

Brine Suitability

Used to formulate products for downhole batching or flowline batching. It is highly water dispersible without

forming stable emulsion. Provides corrosion protection in both sweet (carbon dioxide only) and sour (hydrogen

sulfide) systems.Used in all fresh water and brine based packer (annular) inhibitors. If the treatment water contains calcium levels


Used in most oilfield system where water-soluble products are required. It has a large solubility window and

can be used in flow lines, pipelines and water injection systems. It is very effective in systems where hydrogen

sulfide present.

Large solubility range, should be screened for compatibility with water. Suitable for flow-line, down hole and water injection applications. Primarily used in sweet

applications.Best water solubility range. Product should be

compatible with any brine. Suitable for flow-line, downhole and water injection systems. Good for sweet

and sour systems.Specially designed for corrosion resulting from high fluid velocity systems. It works excellent in gathering systems

that are both sweet (carbon dioxide only) and sour (carbon dioxide and hydrogen sulfide). It has a wide

range of solubility into fresh and salty brines and also performs well in systems with elevated temperatures.

To be used in gas systems where a non- gunking, non-foaming, non-emulsifying corrosion inhibitor is required.

Can be used in most systems where a water soluble product is required. Preferred for sweet systems and/or

sweet and slightly sour.




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ECOIL-DURACAPS® C.I.

ENCAPSULATED CORROSION INHIBITOR

TECHNOLOGY REPORT Micro Encapsulated Corrosion Inhibitor for Controlled, Long Term Release

Introduction

There are three main conventional methods of treating corrosion in the production tubing:

Periodic batch treatments, typically batch treatments introduce large amounts of inhibitor into the service environment to effect a change in the corrosion profile of the well. Batching is designed to quickly establish an inhibitor film along the production string and reduce the corrosion level. The inhibitor film remains on the tubing until it is "stripped off' by incoming fluids. Depending on the type of inhibitor, production volumes and downhole dynamics, a batch treatment can provide several days on up to a few weeks of protection until retreatment is required.

Squeezes push chemicals into the pay zone which are adsorbed onto the formation, then over time, release chemical into the production tubing, they can last significantly longer than batching even up to several months but are comparatively expensive and have their own associated potential problems.

Although both these treating methods have been utilized for years, they can have undesirable side effects, either at the intended target area or downstream of the target area. Some of the drawbacks include; significant loss of active product due to non-absorption on the production string with batching and downstream process upsets due to high feedback concentrations of inhibitor immediately after application. Squeezes can cause formation damage resulting from introduction of foreign fluids into the production zone and there is always wasteful loss of chemical in the first few days of the treatment due to inefficient adsorption of the chemical. Loss of revenues from loss in production during applications and cost of rig and logistics for short-term protection (cost effectiveness) are also of concern.

Continuous Injection from surface via capillary tubing. Although the most controllable method as far as amount of chemical applied, injection from the surface also has several inherent problems. Large mature onshore fields may have dozens of wells, which would require workover to fit expensive capillary tubing or spaghetti string for chemical injection. In fields, which cover very large areas or are in isolated or perhaps dangerous environments (due to various reasons),




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the cost and logistics of maintaining these surface pumps and chemical reservoirs becomes untenable.

ECOIL-DURACAPS® C.I. Encapsulated Corrosion Inhibitor is designed to offset problems associated with conventional treatments by providing long-term, controlled release of inhibitor into the target area at concentrations high enough to maintain corrosion inhibition yet low enough to prevent significant product loss and downstream system upsets.

In a drum of ECOIL-DURACAPS® C.I., approximately half of the container will have a light colored solid material on the bottom, i.e., the caps (more accurately known as the aggregate which contains hundreds to thousands of capsules per aggregate) and a light amber colored brine solution above the capsules. The aggregate particles, averaging in size 1-3 mm, are weighted to allow placement to the bottom of a well. They are also heavier than the brine in the drum. On mixing before application the aggregate and brine form slurry for ease of pumping.

Note: the brine solution is present to allow the caps to maintain their form during storage and provides a carrier for the mixing of the caps during application.

Since ECOIL-DURACAPS® C.I. is spotted into the rat-hole of the well, it will not damage producing formations. Typical method of application of ECOIL-DURACAPS® C.I. is pumping the caps down the annulus or Tubing and allowing the caps to fall into the rat-hole (a drop time calculation is provided see section below). As the release of Inhibitor from the caps is at levels intended to maintain a protective film on the tubulars, after the corrosion caps are initially applied and allowed to drop to the bottom of the target area, we recommend a batch and circulate or tubing displacement treatment utilizing a film persistent oil soluble inhibitor is applied in order to quickly establish an inhibitor film on the downhole tubulars.

As the inhibitor film from the batch treatment detaches from the metal surface over time, inhibitor released from the corrosion caps is present in the production fluids to repair the detached inhibitor film giving long-term protection.

In this stylized example ECOIL-DURACAPS® C.I. applied at the wellhead via the annulus, the caps fall via the annulus and settle in the rat-hole. Once the caps have settled in the rat-hole production is resumed As ECOIL-DURACAPS® C.I. slowly dissolve in the rat hole a concentration gradient is formed and small amount of inhibitor is released continuously into the produced fluids (red dots), giving long-term corrosion protection to the production tubing




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Outstanding characteristics of ECOIL-DURACAPS®: -

· Low Level Release, Long Term Protection

· No Expensive Chemical Injection Equipment

· Does Not Damage Producing Formations

· Functions Under a Wide Range of Downhole Conditions

Factors Influencing Cap Release & Transport

There are 3 basic mechanisms, occurring simultaneously, with regards to the release and transport of the active material:

A) Release of the active material from the capsule’s polymeric matrix.

The encapsulated inhibitor is a complex matrix of polymer, active material, weighting agent, brine carrier and various other components that constitute the capsule, therefore, the factors influencing release of the active materials are also complex. Laboratory evaluations of the caps under static conditions, (i.e. simulating conditions in a rat-hole or other non-turbulent areas) suggest that temperature, chloride levels and the system pH play a role in influencing the release of the active material from the capsule. The effect on release rate by these parameters can be summarized as follows: -

a. the higher the temperature the greater the release of active material, particularly at temperatures > 150 °F (65 °C).

b. at temperatures < 150 °F (65 °C) - the higher the pH, the lower the release of active material. - the higher the chloride level, the lower the release of active material.

c. at temperatures > 150 °F (65 °C): - the higher the chloride level, the higher the release of active material. - the higher the pH, the higher the release of active material.

NOTE: - Laboratory results indicate the sensitivity of the caps to these factors; they do not imply how much active material will be released in an actual dynamic service environment, as each application will be different. Experience has shown the variables such as salinity, temperature and pH can have a maximum effect on release rate in a range of 10-20%.




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From our experience, using the ECOIL-DURACAPS® C.I. would generally give 6-9 months’ protection before further application of caps is required in a 2,000 bbl./Day well with 50% water and 50% oil.

Therefore, to establish the length of corrosion protection in any specific well, a field trial is always recommended during which length of treatment and cost effectiveness is determined. Please see the monitoring section below.

B) Transport of the active material from the cap surface to the point where it contacts incoming produced fluids forming a concentration gradient:

Once the caps settle into the rat-hole active material will begin to be released into the fluid above the cap surface, moving the concentration of inhibitor towards equilibrium between the cap matrix and the fluid. This equilibrium condition will set up a concentration gradient with the highest concentration at the cap-liquid interface and the lowest concentrations at the point where incoming produced fluids contact the inhibitor in the upper portion of the rat-hole.

C) Transport of the active material from the well bore up the production:

Tubing string.

Although thermal effects, such as convection currents help distribute the active material throughout the column of fluid, transport of the active material throughout the rat-hole is mainly due to uptake of fluids at the point where mixing occurs between the in-coming produced fluids and concentration gradient. This mixing removes inhibitor, which in turn alters the equilibrium of the concentration gradient. This shift in the equilibrium of the concentration gradient promotes further release of active material from the caps in order to reestablish the equilibrium of the concentration gradient. The inhibitor removed in the produced fluids moving up the production tubing is then available to repair the film of inhibitor giving continuous long-term corrosion protection.

ANALOGY: - Smoke traveling up a chimney where the highest concentration of smoke is closest to the fire and lowest at the top of the chimney. As the smoke leaves the chimney, the outside air dilutes it. The smoke generated from the fire below continually replaces the smoke that departs the chimney.




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The amount of active material carried to the surface by the incoming produced fluids is a function of the production volume; the degree of turbulence as the fluids enter the well bore area and the depth of the producing zone.

Obviously the greater amount of turbulence at the top of the concentration gradient the greater the chances of the uninhibited produced fluids mixing with the active material of the concentration gradient. Significant mixing would promote a higher concentration of active material being transported with the produced fluids. In wells with high production volumes, the amount of active material transported may appear low due to dilution effects. This would be most evident in wells producing from thick pay zones or wells with multiple completions since fluids produced from the upper reaches of the pay zone would not encounter the active material near the rat-hole. However, as the active material is repairing the protective film even at low concentrations good protection can be obtained.




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Estimating Life Expectancy of a ECOIL-DURACAPS® C.I. Application.

The length of a caps treatment will depend on many factors such as:

• The amount of caps charged to the well. • The bottom hole temperature, salinity and pH. • The rat-hole dimensions. • Production volumes.

Due to the number of dependent variables (as previously discussed) it is not possible to accurately predict the length of treatment from the application of one drum of ECOIL-DURACAPS® C.I. to any particular well. Therefore, to obtain definitive data on the length of protection given and therefore cost effectiveness by a single application, a field trial should be performed.

Field Trial Monitoring

During the field trial several parameters should be monitored to give data on effectiveness and length of treatment from the application.

a) Cumulative Production Volume. Reporting the total volume of produced fluids throughout the length of the treatment provides an indication of the cost effectiveness of the treatment in terms of cost of ECOIL-DURACAPS® C.I. / barrel of produced oil compared to other treatments.

b) Coupons / Probes: Strategically placed corrosion coupons or probes in the system at the wellhead or along the flow line can identify the severity of corrosion in the produced fluids.

c) Iron & Manganese Counts: Periodic monitoring of iron counts via colorimetric or spectrophotometric methods during the treatment period can also be used as a means to measure the effectiveness of the corrosion caps. Manganese is usually found in extremely low levels in connate waters. Therefore, manganese analysis of produced water is an excellent way to monitor steel corrosion.

It is important to obtain a baseline value of Iron and Manganese content in the produced fluids prior to application of ECOIL-DURACAPS® C.I. in order to compare to results obtained during the treatment period.




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Cost Effectiveness compared to other methods of Treating Corrosion in Production Tubing

As mentioned, there are three main conventional methods of protecting production tubing, Injection of chemical form surface via capillary tubing and squeeze or batch treatments.

Capillary Tubing - this would be expensive but once installed normal surface injection is possible. However, the logistics of maintenance to surface pump and refilling reservoirs in large fields or isolated wells must also be taken into account.

A work over rig will have to be employed and the production tubing must be removed and the capillary tubing strapped to the production tubing- a pup joint added into the tubing where the capillary tubing will enter into the production tubing. The Capillary tubing should be below the point of where the corrosion is occurring.

To compare the costing of various methods we will use the example of a - 10,000 foot well with BS&W at 50% - CO2 6% - High corrosion tendency, Production 2,000 bbl./d: -

Initial cost very High – Capital expenditure for the capillary tubing: -

$10 to $15.00 per foot = For 10,000 foot well – $100,000 - $150,000

Well tubing has to be pulled and well shut in – A Rig is required. - $100,000

Capillary tubing strapped to production tubing. Then normal surface chemical required being Injected on a continuous basis using 20 ppm in water phase at:

$800 a drum, 0.8 gal/day = 5.3 drums per year - $4,240 (just referential price)

NOTE: - Liquid Corrosion inhibitors are usually 20-30% active; therefore, 20 ppm surface injection will equate to approx. 6.5 ppm of concentrated inhibitor being applied (which the ECOIL-DURACAPS® C.I. contain).

THEREFORE, CAPITAL EXPENDITURE – 250,000 USD TO INSTALL CAPILLARY TUBING IN ONE WELL PLUS CONTINUOUS INJECTION FOR ONE YEAR = $4,240.00.

Cost First Year = $254,240

Coil tubing can be used in a similar way but capital outlay even more costly.




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Scale Squeeze - Again an expensive option – a workover rig is needed to perform this action - There is a possibility of a reaction or “gun king” which can result in formation damage and there is the risk of forming emulsion block in the formation. However, in the North Sea for example with a 100-drum squeeze job one-year protection has been known and is becoming the norm.

PLEASE NOTE THIS IS AN APPROXIMATION – again we will use 10,000 foot well with BS&W at 50% - CO2 6% - Production 2,000 bbl./d:

Squeeze will require at least 40 drums chemical (MINIMUM) for the squeeze Job and will require pumping unit.

Pumping unit Hire – $45,000

40 drums chemical (MINIMUM) 40 x $800 = $32,000 (just referential price)

Other chemicals (over flush, etc.): $12,000

Approximate cost for squeeze assuming successful = $89,000 per well.

In this example we will assume an impressive one year’s protection.


Batch treatments – Well can be closed in twice per month can cause problems with the well – also possibilities of skin damage due to C.I. entering the reservoir. Batching is also very disruptive to the well.

Pump Unit Hire – 2 x 12 x $45,000 = $1,080,000

2 drums used per month – 24 x $800 = $19,200 (just referential price)

Oil Company could have their own Pump unit which will reduce the cost of the hiring the pump, but requires maintenance and initial capital outlay.

Cost First Year = $1,099,200




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ECOIL-DURACAPS® C.I. – If we assume two drums (6 months’ protection per drum) required per year. The application will also require a pumping unit with two drums applied at once: -

*Pump Unit Hire - 1 x $45,000 (See Note Below) = $45,000

(Please note a pump unit is only needed for the first application for the batch treatment – application can be applied using a simple diaphragm pump through a lubricator reducing this cost to 5,000 USD. Therefore, future treatments if the client allows the caps to drop by gravity would be 14,000.00 USD.)

2 drums of ECOIL-DURACAPS® C.I. – 2 x $2,000 = $4,000 (just referential price)

Other chemicals: $5,000

Cost First Year = $54,000*

Summary of Comparative Costings

METHOD OF DOWNHOLE CORROSION

CONTROL

TOTAL COST FIRST

YEAR per well, $

COMMENTS

CAPILLARY 254,240

Advantage, Injection highly controllable. Initial cost of fitting capillary tubing is prohibitive. High maintenance of surface chemical pumps and regular refilling chemical reservoirs required. Only becomes cost effective after many years and if remains problem free.

SQUEEZE 89,000 Yearly chemical costs very high, Overall not cost effective in comparison to ECOIL-DURACAPS® C.I.

BATCH 1,099,200 Yearly chemical costs very high, Overall not cost effective in comparison to other methods.

ECOIL-DURACAPS® C.I.

– pumping unit 54,000* ECOIL-DURACAPS

® C.I. Most cost effective method. Even if outside contractors are used for pumping.

ECOIL-DURACAPS® C.I. 10,000 Putting through lubricator.




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* Note: We have used the going rate for pump unit hire for comparative purposes, however if the Oil Company purchases their own unit these cost will be reduced further. If there are several wells requiring ECOIL-DURACAPS® C.I. in a field Production Chemical will consider putting into place a truck and pump unit, manned by PC personnel to cover all application requirements. This will further significantly reduce ongoing costs. CONCLUSION As can be seen, ECOIL-DURACAPS® C.I. are a very cost effective, low maintenance form of treatment for corrosion problems downhole.

Application of ECOIL-DURACAPS® C.I. The most common method of introducing caps into wells with pressure at the wellhead is through a pump that can deliver up to 1-2 barrels/minute. The recommended pumping rate for caps is ¼ to ½ barrel per minute (pump well within its operating maximum) to minimize the clogging of the suction hose and shearing of the caps. The type of pump used to transfer the caps from the drum into the well will be dictated by the amount of pressure needed to overcome wellhead pressure, it is recommended that the pump be a positive displacement type pump, such as a Roper pump (rotary gear pump) or triplex pump. These pumps are frequently used with the power take-off unit on a chemical pump truck. In general, positive displacement type pumps minimize the mechanical shearing of the aggregate versus centrifugal type pumps. In addition to selecting the proper type of pump, it is advisable that efforts are made to minimize other contributors to excessive shear during product application, such as pumping through chokes or restrictions. Caps can be applied from the drum to the well by extending a hose no less than 2" in diameter (5.1 cm) or a drum stinger from the suction side of the pump into the drum. It is critical that the caps are continually agitated while product is being removed from the drum. This continued mixing of the caps and brine allows for the brine to act as a carrier, as well as, preventing the hose and pump from becoming clogged with the capsules. It is also recommended that the surfaces of the tubulars, i.e., production tubing or annulus, be




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pre-wetted with 2-5 barrels of produced brine or 2% KCl prior to application of the caps in order to reduce the possibility of capsule "hang-up" on dry pipe as they cascade down to the bottom of the well. After the caps have been pumped into the well, follow with at least 10-20 barrels of 2% KCl solution or produced water in order to help carry the caps to the bottom of the well. Once the caps and the other flush fluids have been introduced into the well, shut-in the well long enough to allow the caps to fall into the intended target area. In most cases, shutting in the well for 24 hours will be more than adequate for the caps to reach bottom. If a more exact determination of how long it takes for the caps to fall is required, an engineering calculation is provided (see calculation section below). When Corrosion caps are used, after the ECOIL-DURACAPS® C.I. are applied and allowed to drop to the bottom of the target area, a “batch and circulate” or “tubing displacement” treatment utilizing a film persistent oil soluble inhibitor is highly recommended to be applied. This is in order to quickly establish an inhibitor film on the down-hole tubulars. As the inhibitor film from the batch treatment detaches over time from the metal surface, inhibitor released from the corrosion caps is present in the production fluids to repair the detached inhibitor film giving extended long term protection. ECOIL-DURACAPS® C.I. can be applied through a lubricator – a simple diaphragm pump is used to pump into the lubricator which is placed on top of the wellhead. The lubricator is filled with the ECOIL-DURACAPS® C.I. then capped. The top valve of the wellhead is opened and the caps drop under gravity. Very simple and no major cost. The only draw back is that the caps have to drop by gravity to the rate hole and this can take time – in some cases as much as 40-48 hours if the well is deep and has high fluid levels.




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SCALE INHIBITORS


ECOIL-122® 1500 Molecular Weight Polyacrylate

ECOIL-2220®Bis-HexaMethyleneTriAmine Penta

Methylene Phosphonic Acid

ECOIL-422® TEA Phosphate Ester Sodium Salt

ECOIL-822-70® TEA Phosphate Ester 70% Active

ECOIL-2320® DETA Phosphonate

ECOIL-332® AMP Phosphonate

ECOIL-432® HEDP Phosphonate

ECOIL-762® / 7620®

Proprietary Phosphonate

ECOIL-03-S® Phosphine Carboxylic Acid (PCA)

ECOIL-Duracaps S.I.®

Micro Encapsulated DURACAPS® S.I. Scale Inhibitor for Controlled, Long Term

Release

Application

Reduces precipitation of low solubility inorganic salts (calcium carbonate). Used in squeeze applications or industrial water treatment applications where calcium

carbonate is a problem.Concentrate to prepare water soluble scale inhibitors for control of calcium, magnesium, strontium, barium or iron scales in cooling water, boilers, water- floods or drilling

systems with Temp.in excess of 175°C (350°F).

Used in cooling water, boilers, secondary recovery (water-flood) systems and drilling applications.

Compatible with most brines that have calcium levels under 3500 ppm. Temp. limited up to 65 °C (150 °F).

Concentrate to prepare water-soluble scale inhibitors for control of calcium, magnesium, strontium, barium or iron

scales (cooling water, boilers, water-floods or drilling systems). Brines with calcium levels > 5000 ppm.

It is the most effective against systems where Calcium Carbonate is the primary scaling mechanism. It should be tested for compatibility with brines that have calcium

levels greater than 3500 ppm.

Typically used in fresh water applications and to formulate scale inhibitors or scale/corrosion inhibitors for cooling water, boilers, water floods or drilling systems.

For waters with high levels of calcium (it will stay soluble in brines nearing calcium saturation). It has strong anodic properties that will also provide corrosion effectiveness in

oxygen rich environments such as cooling towers and drilling fluids.

To prepare water- soluble scale inhibitors for control of calcium, magnesium, strontium, barium or iron scales in

the oilfield. It is also effective against calcium oxalate.

Designed to offset problems associated with conventional batch treatments by providing long term,

controlled release of inhibitor into the target area at concentrations high enough to inhibit scale without introducing potentially damaging chemicals into the

reservoir, yet low enough to prevent significant product loss and downstream system upsets.

Used in cooling water, boilers, secondary recovery (water-flood) systems and drilling applications.

Compatible with most brines that have calcium levels under 3500 ppm. Temp. limited up to 65 °C (150 °F).




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ECOIL-DURACAPS® S.I. ENCAPSULATED SCALE INHIBITOR

TECHNOLOGY REPORT

Micro Encapsulated Scale Inhibitor for Controlled, Long Term Release

Overview:

There are two conventional downhole treatments for preventing scale build-up.

Scale squeezes- will typically introduce large amounts of inhibitor into the service environment to effect a change in the scaling profile of the well. These treatments are designed to prevent scale compounds from forming and depositing along the production string, but they also are intended to provide extended scale inhibition, usually of the order of several months.

Continuous Injection from surface via capillary tubing- the most controllable method as far as amount of chemical applied. Large mature onshore fields may have dozens of wells with scale problems downhole, each would require workover to fit capillary tubing or spaghetti string for chemical injection with Chemical fed from the surface by chemical pump and reservoir.

Although these treating methods are well established, both have some undesirable characteristics, either at the intended target area or downstream of the target area. Some of the drawbacks include; initial significant loss of active product due to non-absorption or precipitation as in a scale squeeze, formation damage resulting from the introduction of foreign fluids into the production zone, and downstream system upsets due to high feedback concentrations of inhibitor immediately after application.

With Chemical injection by capillary tubing from surface pumps the cost of workover to fit the capillary is very prohibitive. In fields, which cover very large areas or are in isolated or perhaps dangerous environments (due to various reasons), the cost and logistics of maintaining these surface pumps and chemical reservoirs can become untenable.

Production Chemical’s ECOIL-DURACAPS® S.I. encapsulated Scale Inhibitor is designed to offset problems associated with conventional batch treatments by providing long term, controlled release of inhibitor into the target area at concentrations high enough to inhibit scale without introducing potentially damaging chemicals into the reservoir, yet low enough to prevent significant product loss and downstream system upsets.




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ECOIL-DURACAPS® S.I. encapsulated Scale Inhibitor is non-hazardous, therefore, non-regulated by the United States Department of Transportation (D.O.T.). In a container of ECOIL-DURACAPS® S.I. capsules, approximately half of the container will have a light colored solid material on the bottom, i.e., the ECOIL-DURACAPS® S.I. (more accurately known as the aggregate which contains hundreds to thousands of ECOIL-DURACAPS® S.I. capsules per aggregate) and a light amber colored brine solution above the ECOIL-DURACAPS® S.I. capsules. The aggregate particles, averaging in size 1-3 mm, are weighted to allow placement to the bottom of a well. They are also heavier than the brine in the drum. Because of this property, ECOIL-DURACAPS® S.I. capsules will settle and compact during storage and will require agitation to form pumpable slurry prior to application. It is important to vigorously mix the contents of the drum to form slurry immediately prior to and during removal from the container!

Note: the brine solution is present to allow the ECOIL-DURACAPS® S.I. to maintain their form during storage and provides a carrier for the mixing of the ECOIL-DURACAPS® S.I. into slurry during pumping and application.

The ECOIL-DURACAPS® S.I. are applied at the wellhead and fall under gravity to the rat-hole. Here they settle and slowly start to dissolve over an extended period of time. As the polymer matrix dissolves the Scale Inhibitor is released and a concentration gradient forms. Where the top of the concentration gradient meets and mixes with the incoming produced fluids (from Perforations) Inhibitor is taken up through the production tubing and therefore is present in the fluids upstream of any potential scaling areas or deposition.

Outstanding characteristics of ECOIL-DURACAPS® S.I.:

• Low Level Release, Long Term Protection.

• No Expensive Chemical Injection Equipment.

• Does Not Damage Producing Formations.

• Functions Under a Wide Range of Downhole Conditions.




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Factors Influencing Cap Release & Transport

There are 3 basic mechanisms, occurring simultaneously, with regards to the release and transport of the active material:

A) Release of the active material from the ECOIL-DURACAPS® S.I. capsule’s polymeric matrix.

The encapsulated ECOIL-DURACAPS® S.I. inhibitor is a complex matrix of polymer, active Material, weighting agent, brine carrier and various other components that constitute the ECOIL-DURACAPS® S.I. capsules; therefore, the factors influencing release of the active materials are also complex. Laboratory evaluations of the ECOIL-DURACAPS® S.I. under static conditions, (i.e. simulating conditions in a rat-hole or other non-turbulent areas) suggest that temperature, chloride levels and the system pH play a role in influencing the release of the active material from the ECOIL-DURACAPS® S.I. capsules. The effect on release rate by these parameters can be summarized as follows:

a. the higher the temperature the greater the release of active material, particularly at temperatures > 150 °F (65 °C)

b. at temperatures < 150 °F (65 °C) - the higher the pH, the lower the release of active material. - the higher the chloride level, the lower the release of active material.

c. at temperatures > 150 °F (65 °C): - the higher the chloride level, the higher the release of active material. - the higher the pH, the higher the release of active material.

NOTE: - Laboratory results indicate the sensitivity of the caps to these factors; they do not imply how much active material will be released in an actual dynamic service environment, as each application will be different. Experience has shown the variables such as salinity, temperature and pH can have a maximum effect on release rate in a range of 10-20%. From our experience, using the ECOIL-DURACAPS® S.I. would generally give 6-9 months’ protection before further application of caps is required in a 2,000 bbl./Day well with 50% water and 50% oil.

Therefore, to establish the length of scale protection in any specific well, a field trial is always recommended during which length of treatment and cost effectiveness is determined.




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B) Transport of the active material from the cap surface to the point where it contacts incoming produced fluids forming a concentration gradient.

Once the ECOIL-DURACAPS® S.I. settle into the rat-hole active material will begin to be released into the fluid above the cap surface, moving the concentration of inhibitor towards equilibrium between the cap matrix and the fluid. This equilibrium condition will set up a concentration gradient with the highest concentration at the cap-liquid interface and the lowest concentrations at the point where incoming produced fluids contact the inhibitor in the upper portion of the rat-hole.

C) Transport of the active material from the well bore up the production

Tubing string.

Although thermal effects, such as convection currents help distribute the active material throughout the column of fluid, transport of the active material throughout the rat-hole is mainly due to uptake of fluids at the point where mixing occurs between the in-coming produced fluids and concentration gradient. This mixing removes inhibitor, which in turn alters the equilibrium of the concentration gradient. This shift in the equilibrium of the concentration gradient promotes further release of active material from the ECOIL-DURACAPS® S.I. in order to reestablish the equilibrium of the concentration gradient. The inhibitor removed in the produced fluids moving up the production tubing is then available to inhibit scale deposition giving continuous long-term protection.

ANALOGY: - Smoke traveling up a chimney where the highest concentration of smoke is closest to the fire and lowest at the top of the chimney. As the smoke leaves the chimney, the outside air dilutes it. The smoke generated from the fire below continually replaces the smoke that departs the chimney.

The amount of active material carried to the surface by the incoming produced fluids is a function of the production volume; the degree of turbulence as the fluids enter the well bore area and the depth of the producing zone.




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Obviously the greater amount of turbulence at the top of the concentration gradient the greater the chances of the uninhibited produced fluids mixing with the active material of the concentration gradient. Significant mixing would promote a higher concentration of active material being transported with the produced fluids. In wells with high production volumes, the amount of active material transported may appear low due to dilution effects. This would be most evident in wells producing from thick pay zones or wells with multiple completions since fluids produced from the upper reaches of the pay zone would not encounter the active material near the rat-hole. However, as the active material is released even at low concentrations excellent protection can be obtained.

Well Selection Criteria

A number of conditions must be met in order for Production Chemical’s ECOIL-DURACAPS® S.I. to be considered as an alternative to conventional treatments. They are: The scaling problem exists in the wellbore and/or production tubing. The ECOIL-DURACAPS® S.I. capsules can be placed upstream of the problem area.




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The ECOIL-DURACAPS® S.I. capsules can be placed in an area or chamber large enough to contain the charge.

The ECOIL-DURACAPS® S.I. capsules can reside in an area or chamber undisturbed from the forces of incoming produced fluids.

The most likely placement for the ECOIL-DURACAPS® S.I. is in the rat-hole, the dead space between the bottom of the well and below the perforations and pump. This space should be relatively free of any turbulence from sources, such as incoming production fluids or down-hole pump agitation in order for the ECOIL-DURACAPS® S.I. to remain in the target area. For ECOIL-DURACAPS® S.I. to be used effectively, the rat-hole must provide enough volume to contain the desired volume of ECOIL-DURACAPS® S.I., as well as, have a sufficient amount of "head space" to allow the active material of the scale ECOIL-DURACAPS® S.I. to release forming a concentration gradient before encountering the produced fluids.

Wells completed with a packer may not be candidates for this technology unless the downhole pump can be unseated and the ECOIL-DURACAPS® S.I. are allowed to fall through the production tubing, this is usually instigated at workover when the pump is removed for maintenance.

Estimating Life Expectancy of a ECOIL-DURACAPS® S.I. Application.

The length of a ECOIL-DURACAPS® S.I. treatment will depend on many factors such as: · The amount of ECOIL-DURACAPS® S.I. charged to the well. · The bottom hole temperature, salinity and pH. · The rat-hole dimensions. · Production volumes.

Due to the number of dependent variables (as previously discussed) it is not possible to accurately predict the length of treatment from the application of one drum of ECOIL-DURACAPS® S.I. to any particular well. From our experience, using the ECOIL-DURACAPS® S.I. would generally give 6-9 months’ protection before further application of ECOIL-DURACAPS® S.I. is required in a 2,000 bbl./Day well with 50% water and 50% oil.

Therefore, to obtain definitive data on the length of protection given and therefore cost effectiveness by a single application, a field trial should be performed.




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Field Trial Monitoring

During the field trial several parameters should be monitored to give data on effectiveness and length of treatment from the application.

a) Cumulative Production Volume. Reporting the total volume of produced fluids throughout the length of the treatment provides an indication of the cost effectiveness of the treatment in terms of cost of ECOIL-DURACAPS® S.I. / barrel of produced oil compared to other treatments. Monitoring and comparison of Wellhead pressure over time before and after the treatment can also be used as an indication of the effectiveness of the ECOIL-DURACAPS® S.I. at inhibiting scale build up.

b) Coupons / Probes: Strategically placed scale coupons in the system at the wellhead preferably or along the flow line can identify the reduction in scaling in the produced fluids. Coupons would have to be in place before the application so that base line data is collected for comparison.

c) Phosphonate Residual Concentration levels should be monitored after the application. The active scale Inhibiting compound in ECOIL-DURACAPS® S.I. is a phosphonate. By monitoring the level of Phosphonate in the produced water at the wellhead over time and correlating with other parameters, the length of treatment from the application and protection can be determined. Experience has shown that levels as low as 0.2 mg/l phosphonate can be detected utilizing methods such as the Hach method. Field results have demonstrated that scale has been prevented with a PRC in the 0.2-0.5 mg/l range.

Cost Effectiveness Compared To Other Methods Of Downhole Scale Protection

As mentioned there are two main conventional methods of protecting production tubing, Injection of chemical form surface via capillary tubing and squeeze treatments. Plus, there is the option of regular scale removal.

Capillary tubing - this would be expensive but once installed normal surface injection is possible. However, the logistics of maintenance to surface pump and refilling reservoirs in large fields or isolated wells must also be taken into account.

A work over rig will have to be employed and the production tubing must be removed and the capillary tubing strapped to the production tubing- a pup joint added into the tubing where the capillary tubing will enter into the production tubing. The Capillary tubing should be below the




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point of where the scale is depositing. If the well has a packer, this could be a problem if there is scale forming below the packer.

To compare the costing of various methods we will use the example of a - 10,000 foot well with BS&W at 50% - CO2 6% - High scaling tendency, Production 2,000 bbl./d:

Initial cost very high –

Capital expenditure for the capillary tubing:

$10 to $15.00 per foot. = For 10,000 foot well = $100,000 - $150,000

Well tubing has to be pulled and well shut in = $100,000

A Rig is required. - Capillary tubing strapped to Production tubing.

Then normal surface chemical required being Injected on a continuous basis using 20 ppm in water phase at:

$800 a drum, 0.8 gals/day = 5.3 drums per year = $4,240 (just referential price)

NOTE: - Liquid Scale inhibitors are usually 20-30% active; therefore, 20 ppm surface injection will equate to approx. 6.5 ppm of concentrated inhibitor being applied (which the ECOIL-DURACAPS® S.I. contain).

THEREFORE, CAPITAL EXPENDITURE – $250,000 USD TO INSTALL CAPILLARY TUBING IN ONE WELL PLUS CONTINUOUS INJECTION FOR ONE YEAR = $4,240.00.


Coil tubing can be used in a similar way but capital outlay even more costly.

Squeeze - Again an expensive option –There is always the possibility of formation damage with squeezes and loss of production. However, In the North Sea for example with a 100-drum squeeze job one-year protection has been known and is becoming the norm.

PLEASE NOTE THIS IS AN APPROXIMATION – again we will use 10,000 foot well with BS&W at 50% - CO2 6% - High Scaling Tendency. Production 2,000 bbl./d:




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Squeeze will require at least 40 drums chemical (MINIMUM) for the squeeze Job and will require pumping unit and assume a long treatment of one year.

Pumping unit Hire = $45,000

40 drums chemicals (MINIMUM) 40 x $800 = $32,000 (just referential price)

Other chemicals (over flush, etc.): $12,000

Approximate cost for squeeze assuming successful = $89,000 per well.

In this example we will assume an impressive one year’s protection


Scale removal - of course there is the option to keep cleaning up using acids and mechanical removal using slick line/wire line. This may not be too expensive if you have your own pumping unit. We are great believers of organic acids and using mutual solvents rather than the Inorganic mineral acids - the reason being they are less aggressive to metal surfaces. We also have some scale removers that are non-aggressive to metal surfaces if there is concern re corrosion. A schedule will have to be produced and as the well ages then the frequency of the cleanup will have to be increased. The main concerns are corrosive effects on tubing and how frequently will you need to acidize?

Probably at least 2 clean ups per year per well -

*Pumping unit Hire- 2 x $45,000 = $90,000

Acid & chemicals (per Acid Job): 2 x $20,000 = $40,000


ECOIL-DURACAPS® S.I. – If we assume two drums (6 months’ protection per drum) required per year. The application will also require a pumping unit with two drums applied at once:

*Pump Unit Hire - 1 x $45,000 (See Note Below): $45,000




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ECOIL-DURACAPS® S.I. can be applied using a simple diaphragm pump through a lubricator reducing this cost to $5,000.

Therefore, treatments if the client allows the ECOIL-DURACAPS® S.I. to drop purely by gravity would be $14,000.00 per year.

2 drums of ECOIL-DURACAPS® S.I. – 2 x $2,000: $4,000 (just referential price)

Other chemicals: $5,000

Cost First year = $54,000*

Summary of Comparative Costings

* Note: We have used the going rate for pump unit hire for comparative purposes, however if the Oil Company purchases their own unit or uses a diaphragm pump and lubricator to apply the ECOIL-DURACAPS® S.I. these cost will be dramatically reduced further. If there are several wells requiring ECOIL-DURACAPS® S.I. in a field Production Chemical will consider putting into place a truck and pump unit, manned by PC personnel to cover all application requirements. This will further significantly reduce ongoing costs.




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CONCLUSION

As can be seen ECOIL-DURACAPS® S.I. are a very cost effective, low maintenance form of treatment for Scale problems downhole.

In Pakistan for example, OGDCL is now looking at charging ECOIL-DURACAPS® S.I. in any workover wells. Even wells with ESP when the normal maintenance is performed they are charging the wells with ECOIL-DURACAPS® S.I. protecting the pumps from scale mainly. This has reduced downtime and frequency of lifting the pumps by 50%.

Application of ECOIL-DURACAPS® S.I.

The most common method of introducing ECOIL-DURACAPS® S.I. into wells with pressure at the wellhead is through a pump that can deliver up to 1-2 barrels/minute. The recommended pumping rate for ECOIL-DURACAPS® S.I. is ¼ to ½ barrel per minute (pump well within its operating maximum) to minimize the clogging of the suction hose and shearing of the ECOIL-DURACAPS® S.I.

The type of pump used to transfer the ECOIL-DURACAPS® S.I. from the drum into the well will be dictated by the amount of pressure needed to overcome wellhead pressure, it is recommended that the pump be a positive displacement type pump, such as a Roper pump (rotary gear pump) or triplex pump. These pumps are frequently used with the power take-off unit on a chemical pump truck. In general, positive displacement type pumps minimize the mechanical shearing of the aggregate versus centrifugal type pumps. In addition to selecting the proper type of pump, it is advisable that efforts are made to minimize other contributors to excessive shear during product application, such as pumping through chokes or restrictions.

Alternatively, the ECOIL-DURACAPS® S.I. can be applied using a simple diaphragm pump via a lubricator and allow the ECOIL-DURACAPS® S.I. to fall solely by gravity only. This is the most cost effective method, as a chemical pump truck is not required. However, drop time (and therefore shut in time) can be long in deep wells. ECOIL-DURACAPS® S.I. can be applied from the drum by extending a hose no less than 2" in diameter (5.1 cm) or a drum stinger from the suction side of the pump into the drum. It is critical that the ECOIL-DURACAPS® S.I. are continually agitated while product is being removed from the drum.




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This continued mixing of the ECOIL-DURACAPS® S.I. and brine allows for the brine to act as a carrier, as well as, preventing the hose and pump from becoming clogged with the ECOIL-DURACAPS® S.I. capsules.

It is also recommended that the surfaces of the tubulars, i.e., production tubing or annulus, be pre-wetted with 2-5 barrels of produced brine or 2% KCl prior to application of the ECOIL-DURACAPS® S.I. in order to reduce the possibility of ECOIL-DURACAPS® S.I. capsules "hang-up" on dry pipe as they cascade down to the bottom of the well. After the ECOIL-DURACAPS® S.I. have been pumped into the well, follow with at least 10-20 barrels of 2% KCl solution or produced water in order to help carry the ECOIL-DURACAPS® S.I. to the bottom of the well. Once the ECOIL-DURACAPS® S.I. and the other flush fluids have been introduced into the well, shut-in the well long enough to allow the ECOIL-DURACAPS® S.I. to fall into the intended target area. In most cases, shutting in the well for 24 hours will be more than adequate for the ECOIL-DURACAPS® S.I. to reach bottom. If a more exact determination of how long it takes for the ECOIL-DURACAPS® S.I. to fall is required, an engineering calculation is provided.

In wells that do not have an ample rat-hole volume, an option that has shown to be useful is a "basket" attached below the pump. In these cases, the basket is hung below an electrical submersible pump (ESP). The basket is designed to protect the ECOIL-DURACAPS® S.I. from fluid currents while providing sufficient contact between the active material in the concentration gradient and the produced fluids.




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FLOW IMPROVERS AND VISCOSITY REDUCERS

ECOIL FLOW FI-1209-HF® for Heavy and Extra-Heavy Crudes (Between 5 and 20 °API).

ECOIL FLOW FI-1212-HF® for Heavy Crudes with High Asphaltene Content.

Both Products are mixtures of surfactants in a hydrocarbon solvent with a high flash point, formulated as Flow Improvers and Viscosity Reducers for Petroleum production, with better results by continuously applying them to the crude emulsion on the head from the well.

Surfactants significantly reduce the surface tension in crude emulsions, which allows reducing the pressure and increasing the flow.

The use of Flow Improvers and Viscosity Reducers is the best technical-economic option compared to the most expensive and complex conventional diluent use options, or internal heating in the wells.

ECOIL FLOW FI-1209-HF® and FI-1212-HF® Flow Improvers are concentrated for the oil field, but if more dilute is needed, they can be mixed with aromatic solvents, kerosene or diesel.

The treatment doses depend on the treated crude, but typically requires applications of up to 500 ppm, or if the crude is diluted with a solvent, the treatment doses may normally vary between 100 to 250 ppm.

Summary of Technical Characteristics:




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The ECOIL FLOW Products FI-1209-HF® and FI-1212-HF® are chemical flow-improving additives, designed to function as catalysts that interact with turbulent flow rates, reducing turbulence and viscosity, and decreasing the pour point and the coefficient of resistance of heavy crude oils (with specific gravity less than 20 °API) in the pipe flow, increasing its transport capacity and transferring larger quantities of oil much more efficiently.

With the continuous use of ECOIL FLOW FI-1209-HF® and FI-1212-HF®, the heavy and extra-heavy oil fields can increase their production rate between 20 and 40%, making them more profitable with the inherent increase in revenue from higher sales volume.

¡The ECOIL FLOW Products FI-1209-HF® and FI-1212-HF® are not solvent!! They are products formulated to have a direct effect on the oil, based on the principle of asphaltenes dispersion and micellar dispersion, which generate a direct result in the inter-molecular energy levels of a viscous-elastic fluid, such as heavy and extra-heavy crude.

Summary of Benefits:

With the use of Flow Improvers ECOIL FLOW FI-1209-HF® & FI-1212-HF®:

Reduces the pressure associated with heavy oil production systems.

Reduces deposits on the internal walls of pumps and transfer lines.

Reduces the frequency of pump and transfer pipes failures.

Reduces the use of diluent (up to 50%).

Reduces operation and maintenance costs of wells.

Increases crude oil production volumes (up to 40%).

Commercial Product Development

• ECOIL FLOW Fl-1209-HF® it is the ninth generation of a flow improver that finally entered the commercialization phase.

• ECOIL FLOW Fl-1212-HF® it was an additional adaptation of the chemistry of the ECOIL FLOW Fl-1209-HF that was formulated with an additional component to deal with heavy crude systems with higher asphaltenes content.




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Presentation and Dispatch:

Both Products, ECOIL FLOW FI-1209-HF® and FI-1212-HF®, are available for sale in 55 Gallon (208 Liter) Metal Drums, or in 275 Gallon (1,000 Liter) or 330 Gallons (1,250 Liters) IBC (Intermediate Bulk Container).

For the handling of the ECOIL FLOW Products FI-1209-HF® and FI-1212HF®, please refer to the Material Safety Data Sheet (MSDS), where you will find extensive and detailed safety information and prevention of risks that must be known during the transport and use of these products.




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DEMULSIFIER

ECOIL-0727®

Description:

ECOIL-0727® is a unique mixture of surfactants and demulsifiers in aromatic solvent. Application:

ECOIL-0727® is very effective in the treatment of emulsions that are stabilized by solids, clays, iron sulfides, etc. This product is formulated to treat decanting oils, tank bottoms and other emulsions. ECOIL-0727® can be applied in batches or by continuous application in the production equipment to remove interface emulsions and treat other kinds of emulsions. ECOIL-0727® is typically used in a range of 100 ppm to 1,000 ppm, depending on the characteristics of the fluid to be treated. A representative of ours can assist with recommendations of the specific program to use. Physical Properties:

Appearance: Aromatic Liquid, dark brown

Specific Weight: 0.92 @ 25 °C (77 °F) Pour Point: < -40 °C (-40 °F) Flash Point: 13 °C (55 °F)

Presentation of the Product:

The Demulsifier ECOIL-0727® is available for sale in 55 Gallon (208 L) Metal Drums, or in 275 Gallon (1,000 L) or 330 Gallon (1,250 L) IBC (Intermediate Bulk Container).

Safety during Product Handling and Use:

For the handling of the ECOIL-0727® Product, please refer to the Material Safety Data Sheet (or MSDS), where you will find extensive and detailed safety and risk prevention information that should be known prior to transport and use of this product.




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DISPERSANTS OF PARAPHIN AND ASPHALTENE


ECOIL-1019-50® Complex Ester in Aromatic Solvent

ECOIL-7159C®Blend of Dispersants that have both oil

and water solubility

ECOIL-8159C® Blend of Water-soluble Dispersants for use with hot water batch treatments

ECOIL-9797®Liquid Organic based formulation

designed to treat troublesome paraffin and asphaltene deposits

ECOIL-5099C®Blend of Dispersants blended in

Aromatic Solvent

ECOIL-4899C®Mixture of Quaternary Ammonium

Chlorides

Application

Pour Point Depressant. It is a crystal modifier that is formulated to improve flow in systems transporting oil. It works by lowering the pour point, which improves the oils

cold flow properties.Paraffin Dispersant specifically designed for removal and dispersion of paraffin deposits in oil and gas operations, allowing the dispersants to reduce the surface tension

between paraffin particles and dispersing them throughout the produced fluids.

Paraffin Dispersant specifically designed for removal and dispersion of paraffin deposits in oil and gas operations. It functions in hot water systems allowing the dispersants to reduce the surface tension between paraffin particles

and dispersing them throughout the produced fluids.Paraffin & Asphaltene Dispersant specifically designed for removal and dispersion of paraffin and asphaltene

deposits in oil and gas operations. Reduces the surface tension between particles and dispersing them

throughout the produced fluids.Asphaltene Dispersant specifically designed for

prevention and dispersion of paraffin and asphaltene deposits in oil and gas operations, allowing the disper-sants to reduce the surface tension between particles and dispersing them throughout the produced fluids.

Used to control paraffin deposition in oil and gas operations. Applications can be batched or used continuously. Treatment rates will vary upon your

application and treatment conditions.




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STIMULATION AGENTS


ECOIL-199® Blend of surfactants and wetting agents

ECOIL-4051®Combination of amine- based inhibitors, quaternary ammonium compounds and

sulfite oxygen scavengers.

ECOIL-0008 SERIES®

Foaming agents

ECOIL-0018® Anionic Surfactant, Dicotyl Sulfosuccinate, Sodium Salt.

ECOIL-0028® Cocamidopropyl Hydroxysultaine Foaming Agent.

ECOIL-0048® Cocamidopropyl Betaine Foaming Agent.

ECOIL-0068® Cocoamidopropyl Hydroxysultaine Surfactant

ECOIL-4168® Ammonium Alkyl Ether Sulphate Foaming Agent.

ECOIL-4188® Ammonium Alkyl Ether Sulphate Foaming Agent

Foaming agent, primary & secondary emulsifier, foam booster and viscosity builder for drilling, cementing, completion, stimulation, fracturing and production

chemical applications.

Dosage will be dependent upon brine concentration, hydrocarbon concentration in the water and temperature

requirements.

Application

Multifunctional surfactant that can be used as: pressure reduction in disposal wells; wetting solids; and paraffin dispersion. It can be diluted in either water or aromatic

solvents.Used in all fresh water and brine based packer (annular) inhibitors. If the treatment water contains calcium levels


Emulsifier, Detergent, Wetting Agent, and Dispersant.

Amphoteric Surfactant used as a stand-alone foamer, or as a booster depending upon the severity of the well. The

product will work in a large pH range and is effective in both brine and brine/oil/condensate systems.

Amphoteric Surfactant used as a stand-alone foamer, or as a booster depending upon the severity of the well, and

can be used in drilling, cementing, completion, stimulation, fracturing, and production applications.

Anionic Surfactant used as a stand-alone foamer or as a booster depending upon the severity of the well. This

product can be used in drilling, cementing, completion, stimulation, fracturing, and production applications and

has a large window of solubility in both brine and hydrocarbon.

Anionic Surfactant used as a stand-alone foamer or as a booster depending upon the severity of the well. This

product can be used in drilling, cementing, completion, stimulation, fracturing, and production applications and

has a large window of solubility in both brine and hydrocarbon.




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STIMULATION AGENTS (Cont.)

ECOIL-8259C®Unique blend of surface-active agents in

an aromatic solvent

ECOIL-0879®Solids Dispersant specially formulated to dissolve and disperse asphaltene

and paraffin deposition

ECOIL-ARA®Drag Reducing Agent (DRA) classified as an ultra- high molecular weight PAO

(Polyalphaolefin)

ECOIL-FI-90®Mixture of a surface- active agents in a

hydrocarbon solvent

ECOIL-RF-1®Fast hydrating, concentrated dry friction

reducer

ECOIL-FI-1209-HF®

Mixture of a surface-actives agent in a hydrocarbon solvent with high flammable

point

ECOIL-FI-1212-HF®

Mixture of a surface-actives agent in a hydrocarbon solvent with high flammable

point

Flow Improver for oil production. Significantly reduces the surface tension in emulsions allowing for reduced pressu-res and thus maximizing flow. Used in light, medium and

heavy crudes, reducing diluent flow use up to 50%.

Sand Dispersant effective at reducing surface tension in liquids and interfacial tension of liquid / solid systems.

Used to reduce surface tension in high sand emulsions and oil transportation systems (preventing plugging).

Can be used both downhole to remedy formation issues with paraffin and asphaltene solids and in other

production chemical equipment. (pipelines, vessels, tanks, equipment)

Designed to increase the flow rate by reducing the pressure drop in crude oil pipelines. It works by reducing the turbulent burst found in oil pipelines, thus reducing

the energy consumption.Flow Improver for oil production. Significantly reduces the surface tension in emulsions allowing for reduced pressu-res and thus maximizing flow. Used in light, medium and

heavy crudes, reducing diluent flow use up to 50%.

Hydrates rapidly in fresh water and salt-water brines. It has the advantages of being more concentrated and does not have a limited shelf life as liquid emulsions.

Flow Improver for oil production. Significantly reduces the surface tension in emulsions allowing for reduced pressures and thus maximizing flow. Used in light,

medium and heavy crudes with high asphaltene contents, reducing diluent flow use up to 50%.




Page 38 of 55



ANTI-FOAMING

ECOIL-0599® (Concentrated)

ECOIL-0199® (Diluted)

Description:

ECOIL-0599® and ECOIL-0199® are anti-foaming, oil soluble, with silicone as active ingredient.

Application:

ECOIL-0599® and ECOIL-0199® are anti-foaming that can be used in various applications, such as drilling, production and transport of crude. The solvent present in both products is oil soluble, so they are especially effective in the presence of hydrocarbons.

ECOIL-0599® and ECOIL-0199® can be applied in batches or can be applied continuously through a chemical dosing pump.

The optimal application dose of ECOIL-0599® and ECOIL-0199® depends on the severity of the foam problem to be treated, but is typically in ranges of 5 to 25 parts per million (ppm).

Physical Properties:

Appearance: Liquid

Concentration: 50% (ECOIL-0599®) and 15% (ECOIL-0199®)

Solubility: Oil

Specific Weight: 0.85 @ 25 °C

Flash Point: > 61 °C




Page 39 of 55



Presentation of the Product:

Anti-Foaming ECOIL-0599® and ECOIL-0199® are available for sale in 55 Gallon (208 Liter) Metal Drums, or in 275 Gallon (1,000 Liter) or 330 Gallon (1,250 Liter) IBL (Intermediate Bulk Container), in Concentrated form (50%) or in Diluted form (15%), respectively.

Safety during Product Handling and Use:

These products are combustible and should be kept away from heat sources. For handling of ECOIL-0599® and ECOIL-0199® Anti-Foaming Agents, please refer to the Material Safety Data Sheet (or MSDS), where you will find extensive and detailed safety information and prevention of risks that must be known prior to transport and use of this product.




Page 40 of 55



NEUTRALIZING AMINE

ECOIL-550®

(Concentrated or Diluted)

Application:

ECOIL-550® is a mixture of neutralizing amines to help control acidic pH and corrosion due to hydrochloric acid and hydrogen sulfide in Refineries surface condenser systems.

ECOIL-550® is designed to be continuously applied through a chemical pump.

Physical Properties:

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