From

Emmanuel Abanum & Sotonye Boyle

To

Contract Sub Committee

Subject

Mini Laboratory Set up at Otakikpo + 2 Lab Scientists

Date

15th September, 2016.

1 Purpose:
To inform the JV of the plan to set up a Mini Laboratory at Otakikpo and to
have a third party lab scientist on site who will be responsible for preliminary
Otakikpo crude oil quality test and analysis before export to IMA Terminal.
2 Background:
The earlier communication on the request for a mini laboratory at Otakikpo +
2 Lab scientists refers:
The chemical evaluation of our crude oil is essentially for effective marketing.
This is an important factor based on the API gravity and specific gravity
evaluation, amongst other varying chemical composition (the trace elements
carbon, hydrogen, nitrogen, sulphur, with some trace metals sodium,
potassium, etc.).
Consequently, a vendor is required to test samples using experienced Lab.
scientists to test Otakikpo crude oil samples hourly and monitor the crude oil
base sediments and water (BS&W in percent) at the field production site in
order to establish accurate crude-oil custody transfer figures.
Hourly monitoring and testing of our day to day crude oil production and the
overall testing during evacuation are targeted at achieving both qualitative
and quantitative evaluation to exporting an on-spec crude oil grade that is
acceptable in the international market.
Furthermore, hourly monitoring of the sediments and water will tell us how
light or dense our crude is a property of the API gravity/Specific gravity
(density) that sets the framework for every crude on an internationally
accepted pricing scale.
Buyers will be interested in the knowing our crude composition in terms of
density, in order to determine the percentage level of hydrocarbon whether
it will be more profitable as a fuel source or for manufacturing of synthetic
materials (plastics, etc.).
Hydrocarbon formulation differ so much from one geographical locality to
another; even within an oil field. And, as such variance in chemical
composition, physical composition colour, viscosity, yield points, pour
points, flash point, etc. occur. Therefore, several tests on a daily basis
throughout the life of the field is to be carried out to achieve the following:
1. To stay within an acceptable quality range.

2. Also, to be able envision the appropriate solvents and reagents best suited
for the crude oil as the life of the field grows old and assume high water
cut.
3. The setting up of this laboratory and its attendant testing will form the
basis for chemical injection and to optimise the potency of our crude (Re:
Testing of Otakikpo Crude Oil to determine Chemical Injection
Requirement, by Emmanuel & Precious, 16 Sept; 2016).

Every petroleum (hydrocarbon) contain varying percent of paraffins,

napthalenes, aromatics, asphalt, etc. and need to be tested as they constitute
the properties that cause yield, pour point, flash point, wax, etc; and results into
pipeline blocking. This eventually increases cost in production per barrel and
consequent rejection and poor pricing by buyers in the international market
(refer to wax content of Otakikpo crude of 23.5% wt, congealing (yield) point of
56 deg. Celsius, and the need to find a suitable pour point depressant to reduce
pour point to approx.. 5 deg. Celsius as cited (Re: Testing of Otakikpo Crude Oil to
determine Chemical Injection Requirement, by Emmanuel & Precious, 16 Sept;
2016)).
Finally, in terms of accounting, royalties payments, etc.; an accurate monitoring
of the BS&W will give us a sense of the quantity of crude oil in variance to the
sediment and water every segment of the pipeline is carrying in order to
determine the custody transfer quantity for which as producers we are liable to
pay. An accurate determination of this property is very important because the
purchaser only pays for the crude oil received and wants to minimize the
quantity of sediments and water they must handle.
Similarly, as producers we will pay royalties based on this with reference to
discounting the quantity of sediments and water. If this is not properly analysed
by an experienced vendor, the producer company is liable to pay for all that is in
the crude oil (sediments and water and impurities).
In the long run, the siting of this mini lab will provide:
1. The basis for a proper crude sample handling method that is crucial to the
Department of Petroleum Resources (DPR) standard.
2. Provide us with a background information of the type of reagents and
solvents agreeable with our crude variables and provide the framework
for a valid argument in terms of pour point, cloud point, pipe blocking,
yield point, etc. problems should a contrary result be achieved at the
discharge point.
3. Also, will reduce loss in production man-hour and downtime in cleaning
pipelines and custody transfer facility.

Scope of work:

Supply and installation of a 40ft Porta Cabin as detailed in the attached

drawing.
Supply and installation of the following furniture
I
2 Nos. of 4 x 4 office desk and chairs
II
1 Nos of 1.5 Panasonic Air Conditioner
III
2 Nos of PVC window blind
IV
Xxxxxxxxxxxx
Supply and commissioning of the under listed lab apparatus;
S/N
NAME OF EQUIPMENT

DESCRIPTI
ON

GAS LIQUID CHROMATOGRAPHY SHOWS CONSTITUENTS OF HYDROCARBON MATERIALS

CENTRIFUGE MACHINE

TO SPIN CRUDE SAMPLES FOR BS&W DETERMINATION

POUR POINT APPARATUS

POUR POINT DETERMINATION

VISCOMETER BATH

TO MAINTAIN THE A STEADY TEMPERATURE MEDIUM

WATER BATH

TO HEAT THE CRUDE SAMPLES BEFORE SPIN

DEMI WATER MACHINE

DEMINALIZED WATER MAKING MACHINE

PH METER

TO DETERMINE THE QUALITY OF DEMI WATER

WEIGHING BALANCE

FOR SAMPLE MEASUREMENT

ANALYTICAL BALANCE

FOR ACCURATE WEIGHING IN SAMPLE PREPARATION

10

FLASH POINT APPARATUS

THE TEMPERATURE ABOVE WHICH IT WILL IGNITE

11

REID VAPOR PRESSURE

THE PRESURE EXERTED BY THE CRUDE UNDER

STORAGE
CONDITIONS

12

HACH DR
SPECTROPHOTOMETER

FOR A WIDE ARRAY OF WASTE WATER ANALYSIS

13

COMPUTERS/MONITORS/PRINTE FOR DATA ENTRY AND SYSTEM AUTOMATION

RS

The scope for the laboratory personnel will be the day to day running of the lab
and as specified below, but not limited to:
i) To measure the various chemical and metal contents: sulphur, nitrogen,
viscosity, pour point, flash point, hydrogen sulphide, etc. of Otakikpo crude oil

ii) For the proper analysis of the API gravity (degree units) and the Specific
Gravity of Otakikpo crude oil
3 Justification:
The justification for setting up of a mini lab is as follows:
1. It is important in preventing problems of yield, quality helps to prevent
pipeline blockage thereby delivering competitive advantage to us.
According to the regulatory standard, the vendor must be DPR certified.
2. It is important for proper custody-transfer evaluation and royalty
payments by the process of discounting sediments and water from the raw
crude oil.
3. Provide us with a background information of the type of reagents and
solvents agreeable with our crude variables and optimise its quality during
the age of the field.
4 Cost Estimate:
To be obtained from identified vendors through a Request for Quotation (RFQ)
5 Proposed Bidders List:
i.) Harper Enerchem
ii.) Production Chemicals Nigeria Ltd iii.) Trans
Afrique
iv.) SGS
v.) Inspectorate
vi.) Emmapet Petroleum Company
vii.) CD Princeton
6 Conclusion:
We hereby seek approval to launch RFQ and invite the vendors listed above.
Accepted and signed on behalf of:
Green Energy International Limited
Signature:
Name:
Title:
Date:

Lekoil Oil and Gas Investments Limited

Signature:
Name:
Title:
Date: