Instructions - to be read before using the model

This workbook performs an economic and financial project analysis of using associated gas from and existing oil field.
The analysis is made for a general case and should be used as a first screening tool only.
The model contains nine different worksheets, the contents of each sheet are presented below:
Instructions

This worksheet gives an overview of the main content of the model

Ass. Gas Input

In this sheet the specific data on the associated gas from the oil field are to be entered
by the user of the model - see below.

Project Scope.

This sheet defines four different scenarios for utilization of associated gas, and data
on project scope are to be entered by the user of the model.

Supply & Demand of Ass. Gas

This sheets gives an overview of the supply of associated gas, and the maximum
demand of gas, power and LPG are to be entered

Investment Cost

In this sheet the total investment costs in each of the four scenarios are calculated
based on predefined unit costs and the data entered by the user.

Cost & Prices of Energy

In this sheet project specific economic cost and financial prices of energy are to be
entered

Economic Analyses

This sheet performs a project specific economic analysis of the four scenarios. The
analysis shows the economic benefit of utilization of associated gas at different cost of
CO2 (USD 0 & 20 per ton of CO2)

Financial Analyses

This sheet performs a project specific financial analysis of the four scenarios. The
analysis shows the viability of use of associated gas from the point of view of an
investor / oil producer / owner of the associated gas.

Results

In this sheet the results of both the economic and financial analyses in each of the four
scenarios are summarized.

Coloring of Cells
In the Yellow cells all the project specific data (on the oil field analyzed, project scope, cost and prices
of energy, etc. ) are to be entered by the user of the model.
The Orange cells contain pre-inserted data, that can be changed if other data are better
for the specific project
The cells without coloring contain formulas that should remain fixed.

The Blue cells contain the results of the performed analyses, in the sheet named "Results" .
a summary of the results in all the blue cells are presented
The Purple cells contain headings and help divide the content of the spreadsheet into natural clusters

A detailed description of the methodology used in the model is described in the report:
Flared Gas Utilization Study, Final Report, February 2003.
Elaborated for the World Bank by:
COWI A/S
Industry & Energy

Associated Gas Input

Name of oilfield
No. of operating hours per year
Year in which the first associated gas is used:
Flow of Associated Gas
Daily flow of associated gas
Daily flow of associated gas in US units
Heat value of associated gas in MJ
Heat value of associated gas in kWh
Total energy content of associated gas
Efficiency of gas based power production
Possible annual power production (35 % efficiency)

One
8,000
2005
Unit
m3/day
MMSCFD
MJ/m3
kWh/m3
MW
%
MWh

2005
40,000
1.40

2006
40,000
1.40

2007
40,000
1.40

2008
40,000
1.40

2009
40,000
1.40

2010
40,000
1.40

2011
40,000
1.40

2012
40,000
1.40

2013
40,000
1.40

2014
40,000
1.40

2015
40,000
1.40

41.50
41.50
11.5
11.5
19.2
19.2
35%
53,796 53,796

41.50
11.5
19.2

41.50
11.5
19.2

41.50
11.5
19.2

41.50
11.5
19.2

41.50
11.5
19.2

41.50
11.5
19.2

41.50
11.5
19.2

41.50
11.5
19.2

41.50
11.5
19.2

53,796

53,796

53,796

53,796

53,796

53,796

53,796

53,796

53,796

C3 + C4 Content & LPG amounts

Mole % of C3 + C4
Approximately heat value of C3 + C4 in MJ
Approximately heat value of C3 + C4 in kWh
Relative density of heavy gas (C3+C4)
Density of heavy gas (C3 + C4)
Amount of LPG in kg/day
Amount of LPG in m3/day

%
MJ/m3
kWh/m3
kg per m3
kg/day
m3/day

5.0
8.1
29.2
1.7
2.2
4,396
2,000

5.0
8.1
29.2

5.0
8.1
29.2

5.0
8.1
29.2

5.0
8.1
29.2

5.0
8.1
29.2

5.0
8.1
29.2

5.0
8.1
29.2

5.0
8.1
29.2

5.0
8.1
29.2

5.0
8.1
29.2

2.2
4,396
2,000

2.2
4,396
2,000

2.2
4,396
2,000

2.2
4,396
2,000

2.2
4,396
2,000

2.2
4,396
2,000

2.2
4,396
2,000

2.2
4,396
2,000

2.2
4,396
2,000

2.2
4,396
2,000

Flow of Associated Gas without C3 + C4

Daily flow of associated gas without C3 + C4
Daily flow of associated gas in US units

m3/day
MMSCFD

2005
38,000
1.33

2006
38,000
1.33

2007
38,000
1.33

2008
38,000
1.33

2009
38,000
1.33

2010
38,000
1.33

2011
38,000
1.33

2012
38,000
1.33

2013
38,000
1.33

2014
38,000
1.33

2015
38,000
1.33

MW
MWh

16.8
46,992

16.8
46,992

16.8
46,992

16.8
46,992

16.8
46,992

16.8
46,992

16.8
46,992

16.8
46,992

16.8
46,992

16.8
46,992

16.8
46,992

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Total energy content of associated gas without C3 + C4

Possible annual power production (35 % efficiency)

Own Consumption of Energy at the Oil Field

Diesel equivalent
Annual diesel consumption
Energy content of diesel
Efficiency of diesel generators

l/day
m3/year
MJ per kg
%

10,526 10,526 10,526 10,526 10,526 10,526 10,526 10,526 10,526 10,526 10,526
3,509
3,509
3,509
3,509
3,509
3,509
3,509
3,509
3,509
3,509
3,509
42.0
42.0
42.0
42.0
42.0
42.0
42.0
42.0
42.0
42.0
42.0
30%
30%
30%
30%
30%
30%
30%
30%
30%
30%
30%

Electricity produced from diesel

Density of diesel ( = relative density)
Produced electricity per liter of diesel
Amount of diesel per kWh

kWh per kg
kg per liter
kWh per liter
liter per kWh

Equivalent power consumption

Annual power consumption

MW
MWh

Various Calculated Values:

Mole weight of mixture (C3+C4)
Quantity of C3 + C4

kg/kg mole
kg/day

3.5
0.84
2.94
0.34

3.5
0.84
2.94
0.34

3.5
0.84
2.94
0.34

3.5
0.84
2.94
0.34

3.5
0.84
2.94
0.34

3.5
0.84
2.94
0.34

3.5
0.84
2.94
0.34

3.5
0.84
2.94
0.34

3.5
0.84
2.94
0.34

3.5
0.84
2.94
0.34

3.5
0.84
2.94
0.34

1.29
10,316

1.29
10,316

1.29
10,316

1.29
10,316

1.29
10,316

1.29
10,316

1.29
10,316

1.29
10,316

1.29
10,316

1.29
10,316

1.29
10,316

49
4,375

49
4,375

49
4,375

49
4,375

49
4,375

49
4,375

49
4,375

49
4,375

49
4,375

49
4,375

49
4,375

2016
40,000
1.40

2017
40,000
1.40

2018
40,000
1.40

2019
40,000
1.40

41.50
11.5
19.2

41.50
11.5
19.2

41.50
11.5
19.2

41.50
11.5
19.2

53,796

53,796

53,796

53,796

5.0
8.1
29.2

5.0
8.1
29.2

5.0
8.1
29.2

5.0
8.1
29.2

2.2
4,396
2,000

2.2
4,396
2,000

2.2
4,396
2,000

2.2
4,396
2,000

2016
38,000
1.33

2017
38,000
1.33

2018
38,000
1.33

2019
38,000
1.33

16.8
46,992

16.8
46,992

16.8
46,992

16.8
46,992

2016

2017

2018

2019

10,526 10,526 10,526 10,526

3,509
3,509
3,509
3,509
42.0
42.0
42.0
42.0
30%
30%
30%
30%

3.5
0.84
2.94
0.34

3.5
0.84
2.94
0.34

3.5
0.84
2.94
0.34

3.5
0.84
2.94
0.34

1.29
10,316

1.29
10,316

1.29
10,316

1.29
10,316

49
4,375

49
4,375

49
4,375

49
4,375

Project Scope
Based on the amounts and composition of the associated gas - as inserted in the sheet before this
the model calculates the net economic benefits and net financial revenue of the below scenarios
for utilization of the associated gas:
Scenario 1

Use of the associated gas for power production at the oil field and
transmission of power to the nearest electricity grid

Scenario 2

Scenario 1 plus extraction of LPG at the wellhead

Scenario 31)

Transportation of the associated gas in a new gas pipeline to a site

where it can be used by a new or existing IPP / power company to
power production and /or by industries.

Scenario 4

Scenario 3 plus extraction of LPG at the wellhead

In all scenarios the present diesel consumption for power production at the oil field are
assumed to be substituted by associated gas.
1) Given the assumption that the gas can be moved before extraction of the wet part!
If the gas is rich in C3 & C4 Scenario 3 might not be possible

To calculate the investment cost in the four scenarios the below input are necessary:
Scenario 1
Distance from oil field to existing power grid
Needed compression of gas (from wellhead to generator)
Main type of energy replaced by associated gas for power production
1 = diesel, 2 = HFO, 3 = other
Load factor - power production & transmission

1 only 1, 2 or 3 ca
0.80 normally betwee

Scenario 2
Distance from oil field to existing power grid
Needed compression of gas (from wellhead to LPG separator and generator)
Power produced from which main type of energy are replaced ?
Load factor - power production & transmission

20 kilometers
10 bar (g)
1
0.80 normally betwee

Scenario 3
Distance from oil field to existing or new IPP or power company (production site)
Needed compression of gas (from wellhead to power production and industrial site)
Load factor - gas transmission
Extra investment needed at new or existing IPP or power plant 2)
Annual O&M of extra investment at IPP / power plant (percentages of above investment)
Extra investment needed at industries to use gas 3)
Annual O&M of extra investment at industries (percentages of above investment)

20 kilometers
10 bar (g)
0.80 normally betwee
0 million USD
5%
0 million USD
5%

Scenario 4
Distance from oil field to existing or new IPP of power company (production site)
Needed compression of gas (from wellhead to power production and industrial site)
Load factor - gas transmission
Extra investment needed at new or existing IPP or power plant 2)
Annual O&M of extra investment at IPP / power plant (percentages of above investment)
Extra investment needed at industries to use gas 3)
Annual O&M of extra investment at industries (percentages of above investment)

20 kilometers
10 bar (g)
0.80 normally betwee
0 million USD
5%
0 million USD
5%

2) Extra investments at the IPP or power plant are for instance extra cost of gas based generators compared
to diesel based generators . All cost beyond the power producing plant ( transmission, distribution and
end-user connections) are not to be included as these cost apply both to diesel and gas based power
production.
3) Extra investments at the industrial end-users are for instance extra cost of gas based equipment compared
to diesel based equipment.

20 kilometers
10 bar (g)

meters
input either 10,20,30 or 40 bar

y 1, 2 or 3 can be inserted
mally between 0,5 & 1,0

meters
input either 10,20,30 or 40 bar

mally between 0,5 & 1,0

meters
input either 10,20,30 or 40 bar
mally between 0,5 & 1,0
on USD

on USD

meters
input either 10,20,30 or 40 bar
mally between 0.5 & 1.0
on USD

on USD

Maximum Supply of Associated Gas

Year

Annual

2004

Amount of Associated Gas

- of which gas without C3 + C4
- of which C3 + C4

million m3
million m3
million m3

Maximum power production

- of which gas without C3 + C4
- of which C3 + C4
Maximum LPG production

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

13.33
12.67
0.67

13.33
12.67
0.67

13.33
12.67
0.67

13.33
12.67
0.67

13.33
12.67
0.67

13.33
12.67
0.67

13.33
12.67
0.67

13.33
12.67
0.67

13.33
12.67
0.67

13.33
12.67
0.67

MWh
MWh
MWh

53,796
46,992
6,804

53,796
46,992
6,804

53,796
46,992
6,804

53,796
46,992
6,804

53,796
46,992
6,804

53,796
46,992
6,804

53,796
46,992
6,804

53,796
46,992
6,804

53,796
46,992
6,804

53,796
46,992
6,804

ton

1,465

1,465

1,465

1,465

1,465

1,465

1,465

1,465

1,465

1,465

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Maximum Demand for Associated Gas

Year
Maximum gas demand of IPP/power plant
Maximum industrial gas demand
Maximum power consumption at oil field
Maximum grid absorption capacity
Total maximum power consumption
Maximum LPG domestic/local demand
Maximum LPG export potential1)
Total LPG demand

Annual

2004

million m3
million m3

20.00
-

20.00
-

20.00
-

20.00
-

20.00
-

20.00
-

20.00
-

20.00
-

20.00
-

20.00
-

MWh
MWh
MWh

10,316
30,000
40,316

10,316
30,000
40,316

10,316
30,000
40,316

10,316
30,000
40,316

10,316
30,000
40,316

10,316
30,000
40,316

10,316
30,000
40,316

10,316
30,000
40,316

10,316
30,000
40,316

10,316
30,000
40,316

ton
ton
ton

20,000
60,000
80,000

20,000
60,000
80,000

20,000
60,000
80,000

20,000
60,000
80,000

20,000
60,000
80,000

20,000
60,000
80,000

20,000
60,000
80,000

20,000
60,000
80,000

20,000
60,000
80,000

20,000
60,000
80,000

MWh

40,316

40,316

40,316

40,316

40,316

40,316

40,316

40,316

40,316

40,316

million m3
million m3

13.33
-

13.33
-

13.33
-

13.33
-

13.33
-

13.33
-

13.33
-

13.33
-

13.33
-

13.33
-

1) the export potential is normally either zero or very large (infinite)

Actual Supply (no LPG Production)

Either:
Power produced from gas at oil field
Or:
Gas transmission for IPP / power plant
Gas transmission for industrial use

2)

2) use of gas to electricity production is in the model given priority to gas for industrial use

Actual Supply - with LPG Production

LPG
Excess amounts of gas with C3 + C43)
Excess amounts of gas with C3 + C4
Either:
Power produced from gas at oil field
Or:
Gas transmission for IPP / power plant
Gas transmission for industrial use

2)

ton
million m3
MWh

1,465
-

1,465

1,465
-

1,465
-

1,465
-

1,465
-

1,465
-

1,465
-

1,465
-

1,465
-

MWh

40,316

40,316

40,316

40,316

40,316

40,316

40,316

40,316

40,316

40,316

million m3
million m3

12.67
-

12.67
-

12.67
-

12.67
-

12.67
-

12.67
-

12.67
-

12.67
-

12.67
-

12.67
-

3) This is the amount of gas with C3 + C4 which due to demand restrictions can not be used for LPG production.

2015

2016

2017

2018

2019

13.33
12.67
0.67

13.33
12.67
0.67

13.33
12.67
0.67

13.33
12.67
0.67

13.33
12.67
0.67

53,796
46,992
6,804

53,796
46,992
6,804

53,796
46,992
6,804

53,796
46,992
6,804

53,796
46,992
6,804

1,465

1,465

1,465

1,465

1,465

2015

2016

2017

2018

2019

20.00
-

20.00
-

20.00
-

20.00
-

20.00
-

10,316
30,000
40,316

10,316
30,000
40,316

10,316
30,000
40,316

10,316
30,000
40,316

10,316
30,000
40,316

20,000
60,000
80,000

20,000
60,000
80,000

20,000
60,000
80,000

20,000
60,000
80,000

20,000
60,000
80,000

40,316

40,316

40,316

40,316

40,316

13.33
-

13.33
-

13.33
-

13.33
-

13.33
-

1,465
-

1,465
-

1,465
-

1,465
-

1,465
-

40,316

40,316

40,316

40,316

40,316

12.67
-

12.67
-

12.67
-

12.67
-

12.67
-

Investment Costs
Investment
Scenario 1

10 Million USD
7.1 Million USD
20 Million USD
Million USD

1.90
5.70
0.50
8.10

5%
5%
2%

0.09
0.29
0.01
0.39

bar (g)
MW
kilometers
tons
tons
tons

10
7.1
20
1,465
1,465
1,465

Million USD
Million USD
Million USD
Million USD
Million USD
Million USD
Million USD

1.90
5.70
0.50
1.84
0.80
0.50
11.24

5%
5%
2%
5%
5%
5%

0.09
0.29
0.01
0.09
0.04
0.02
0.55

Transportation of gas to new or existing IPP / power company and industrial users
Compression of gas
Transmission of gas
Extra investment in power generation
Extra investment in industries
Total Investment

Scenario 4

bar (g)
MW
kilometers

Scenario 1 plus extraction of LPG

Compression of gas
Gas based power generation plant
Power transmission
Dehydration of gas
Chilling of gas
Distillation, storage etc.
Total Investment

Scenario 3

O&M
cost
per year

Power production at the oil field and transmission of power to grid

Compression of gas
Gas based power generation plant
Power transmission
Total Investment

Scenario 2

O&M
%

bar (g)
million m3
-

10 Million USD
20 Million USD
Million USD
Million USD
Million USD

1.90
0.74
2.64

5%
2%
5%
5%

0.09
0.01
0.11

bar (g)
million m3
tons
tons
tons

10 Million USD
20 Million USD
Million USD
Million USD
1,465 Million USD
1,465 Million USD
1,465 Million USD
Million USD

1.90
0.73
1.84
0.80
0.50
5.76

5%
2%
5%
5%
5%
5%
5%

0.09
0.01
0.09
0.04
0.02
0.27

Scenario 3 plus extraction of LPG

Compression of gas
Transmission of gas
Extra investment in power generation
Extra investment in industries
Dehydration of gas
Chilling of gas
Distillation, storage etc.
Total Investment

Unit Investment Costs

Formulas used
Compression of gas
The used formulas are described in Annex 3 of the report
Cost of gas compression to 30 bar
32.7 million USD * (flow m3/hour/ 240,000)0.6
Cost of gas compression to 80 bar
42.5 million USD * (flow m3/hour/ 240,000)0.6

O&M %
per year
5%

Gas Transmission Line

Cost of gas transmission (PE-pipes)

0.04 million USD* kilometer * (flow m 3/hour/ 2,500)0.4

2%

LPG production
Dehydration of gas, large scale
Dehydration of gas, small scale
Chilling of gas

53.0 million USD * (flow m3 /hour/ 450,000)0.6

0.74 million USD * (flow m3/hour/10,410)0.6
23.0 million USD * (flow m3 /hour/ 450,000)0.6

5%

LPG production
Distillation, storage etc.
Gas Based Generating Plant

Unit Cost
0.00034 million USD per ton

5%

5%

Cost of gas based power generating

plant
Power Transmission Line
Cost of power transmission line

0.8000 million USD per MW

5%

0.0200 million USD per kilometer

2%

Economic Cost of Fuels and CO2

Year

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Cost of diesel at oil field

Cost of diesel at new or exist. IPP or power plant
Cost of fuel at industries (diesel equivalent)

USD / liter
USD / liter
USD / liter

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

Cost of diesel produced power at oil field

Cost of power at grid connection point
Cost of diesel produced power at IPP/ power Pl
Cost of fuel at industries (diesel equivalent)

USD per MWh

USD per MWh
USD per MWh
USD per MWh

75.00
-

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

Cost of LPG at nearest harbor

LPG transport cost from harbor to border
LPG import price cif border
LPG local transportation from border to refinery
LPG transportation cost from oil field to refinery
Cost of LPG
LPG export to World Market

USD / ton
USD / ton
USD / ton
USD / ton
USD / ton
USD / ton
USD / ton

325
325
15
10
350
300

325
325
15
10
350
300

325
325
15
10
350
300

325
325
15
10
350
300

325
325
15
10
350
300

325
325
15
10
350
300

325
325
15
10
350
300

325
325
15
10
350
300

325
325
15
10
350
300

325
325
15
10
350
300

325
325
15
10
350
300

CO2 emission from diesel compared to gas

plus %

20%

20%

20%

20%

20%

20%

20%

20%

20%

20%

20%

CO2 emission from HFO compared to gas

plus %
kg CO2 per m3

30%

30%

30%

30%

30%

30%

30%

30%

30%

30%

30%

2.90

2.90

2.90

2.90

2.90

2.90

2.90

2.90

2.90

2.90

2.90

CO2 emission from Field 1 gas

Cost of CO2 emission - low value case

USD per ton CO2

Cost of CO2 emission - high value case

USD per ton CO2

20

20

20

20

20

20

20

20

20

20

20

Economic discounting rate

12%

Financial Prices of Fuels and CO2

Year
Price of diesel at oil field
Price of diesel at new or exist. IPP or power plant
Price of fuel at industries (diesel equivalent)
Price of diesel produced power at oil field
Price of power at grid connection point
Price of diesel produced power at IPP/ power pl
Price of fuel at industries (diesel equivalent)
LPG price at nearest harbor

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

USD / liter
USD / liter
USD / liter

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

USD per MWh

USD per MWh
USD per MWh
USD per MWh

75.00
-

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

325

325

325

325

325

325

325

325

325

325

325

USD / ton

LPG transport cost from harbor to border

LPG import price cif border
LPG local transportation from border to refinery
LPG transportation cost from oil field to refinery
Purchase price ab new refinery at oil field
LPG export price - to World Market
CO2 emission from diesel compared to gas
CO2 emission from oil field
Value of CER (reduced CO2 emission )
Financial discounting rate

USD / ton
USD / ton
USD / ton
USD / ton
USD / ton
USD / ton

325
15
10
350
300

325
15
10
350
300

325
15
10
350
300

325
15
10
350
300

325
15
10
350
300

325
15
10
350
300

325
15
10
350
300

325
15
10
350
300

325
15
10
350
300

325
15
10
350
300

325
15
10
350
300

plus %
kg CO2 per m3

20%

20%

20%

20%

20%

20%

20%

20%

20%

20%

20%

2.90

2.90

2.90

2.90

2.90

2.90

2.90

2.90

2.90

2.90

2.90

USD per ton CO2

15%

2015

2016

2017

2018

2019

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

325
325
15
10
350
300

325
325
15
10
350
300

325
325
15
10
350
300

325
325
15
10
350
300

325
325
15
10
350
300

20%

20%

20%

20%

20%

30%

30%

30%

30%

30%

2.90

2.90

2.90

2.90

2.90

20

20

20

20

20

2015

2016

2017

2018

2019

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

0.25
0.25
0.25

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

85.03
75.00
85.03
85.03

325

325

325

325

325

325
15
10
350
300

325
15
10
350
300

325
15
10
350
300

325
15
10
350
300

325
15
10
350
300

20%

20%

20%

20%

20%

2.90

2.90

2.90

2.90

2.90

Economic Analyses
Use of Associated Gas from Oil Field:

One

Present Economic Cost of Flaring Scenario

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

13.33

13.33

13.33

13.33

13.33

13.33

13.33

13.33

13.33

13.33

13.33

MWh

10,316 10315.79 10315.79

10316

10316

10316

10316

10316

10316

10316

10316

tons

38,667

38,667

38,667

38,667

38,667

38,667

38,667

38,667

38,667

38,667

38,667

million USD

0.88

0.88

0.88

0.88

0.88

0.88

0.88

0.88

0.88

0.88

0.88

million USD

million USD

0.77

0.77

0.77

0.77

0.77

0.77

0.77

0.77

0.77

0.77

0.77

Associated Gas Production

Associated Gas from oil production

million m3 / year

Present Power Consumption at oil field

Total diesel based consumption
CO2 from flaring
Total CO2 emission from flaring
Total Cost of Flaring
Cost of diesel consumption at oil field
Cost of CO2 emission - low value CO2 case
Cost of CO2 emission - high value CO2 case
Net Costs of Flaring - NPV (low)

5.97

million USD

Net Costs of Flaring - NPV (high)

11.24

million USD

Scenario 1 - Power Production at Oil Field

Amounts of Energy - Scenario 1
Gas for LPG production
Gas for power generation
Total CO2 emission reduction from flaring
Present use at oil field (to own power production)
Power for gas compression
Supply of power to grid
Total power production
Economic Cost - Scenario 1
Total Investment Cost
Total O&M
Total Cost
NPV of Total Costs
Economic Benefits - Scenario 1
Saved cost of diesel at oil field
Saved cost of power production
Saved CO2 cost of flaring (low)
Saved CO2 cost of flaring (high)
Saved CO2 cost of power production (low)
Saved CO2 cost of power production (high)
Total Benefits (low)
Total Benefit (high)
NPV of Benefits
NPV of Benefits
Net Benefits (low)
Net Benefits (high)
Net Benefits of Scenario 1 (low)

million m3 / year
million m3 / year

2004
-

2005
9.99

2006
9.99

2007
###
9.99

2008
9.99

2009
9.99

2010
9.99

2011
9.99

2012
9.99

2013
9.99

2014
9.99

tons

28,977

28,977

28,977

28,977

28,977

28,977

28,977

28,977

28,977

28,977

MWh
MWh
MWh
MWh

10,316
5,291
24,709
40,316

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

million USD
million USD
million USD

2004
8.1
8.1

2005
0.4
0.4

2006
0.4
0.4

2007
###
0.4
0.4

2008
0.4
0.4

2009
0.4
0.4

2010
0.4
0.4

2011
0.4
0.4

2012
0.4
0.4

2013
0.4
0.4

2014
0.4
0.4

9.60

million USD

million USD
million USD

0.88
1.85

0.88
2.25

0.88
2.25

0.88
2.25

0.88
2.25

0.88
2.25

0.88
2.25

0.88
2.25

0.88
2.25

0.88
2.25

million USD

million USD
million USD
million USD
million USD
million USD

0.58
0.12
2.73
3.43

0.58
0.12
3.13
3.82

0.58
0.12
3.13
3.82

0.58
0.12
3.13
3.82

0.58
0.12
3.13
3.82

0.58
0.12
3.13
3.82

0.58
0.12
3.13
3.82

0.58
0.12
3.13
3.82

0.58
0.12
3.13
3.82

0.58
0.12
3.13
3.82

2.74
3.43

2.74
3.43

2.74
3.43

2.74
3.43

2.74
3.43

2.74
3.43

2.74
3.43

2.74
3.43

2.74
3.43

18.70
22.93
million USD
million USD
9.10

million USD
million USD
-8.10
-8.10

2.34
3.04

million USD

Net Benefits of Scenario 1 (high)

13.33

million USD

Scenario 2 - Power & LPG Production at the Oil Field

Amounts of Energy - Scenario 2
Gas for LPG production
Gas for power generation
Total CO2 emission reduction from flaring
LPG to local market
LPG to export market
Total LPG production
Present use at oil field (to own power production)
Power for gas compression
Supply of power to grid
Total power production
Economic Cost - Scenario 2
Total Investment Cost
Total O&M
Total Cost
NPV of Total Costs
Economic Benefits - Scenario 2
Saved cost of diesel at oil field
Saved cost of power production
Saved cost of LPG - local market
Saved cost of LPG - export
Saved CO2 cost of flaring (low)
Saved CO2 cost of flaring (high)
Saved CO2 cost of power production (low)
Saved CO2 cost of power production (high)
Total Benefits (low)
Total Benefit (high)
NPV of Benefits
NPV of Benefits

million m3 / year
million m3 / year

2004
-

2005
0.67
10.87

2006
0.67
10.87

2007
0.67
10.87

2008
0.67
10.87

2009
0.67
10.87

2010
0.67
10.87

2011
0.67
10.87

2012
0.67
10.87

2013
0.67
10.87

2014
0.67
10.87

tons

33,448

33,448

33,448

33,448

33,448

33,448

33,448

33,448

33,448

33,448

ton / year
ton / year
ton / year

1,465
1,465

1,465
1,465

1,465
1,465

1,465
1,465

1,465
1,465

1,465
1,465

1,465
1,465

1,465
1,465

1,465
1,465

1,465
1,465

MWh
MWh
MWh
MWh

10,316
5,291
24,709
40,316

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

million USD
million USD
million USD

2004
11.2
11.2

2005
0.5
0.5

2006
0.5
0.5

2007
###
0.5
0.5

2008
0.5
0.5

2009
0.5
0.5

2010
0.5
0.5

2011
0.5
0.5

2012
0.5
0.5

2013
0.5
0.5

2014
0.5
0.5

2006
0.88
2.25
0.51
0.67
0.13
3.64
4.44

2007
0.88
2.25
0.51
0.67
0.13
3.64
4.44

2008
0.88
2.25
0.51
0.67
0.13
3.64
4.44

2009
0.88
2.25
0.51
0.67
0.13
3.64
4.44

2010
0.88
2.25
0.51
0.67
0.13
3.64
4.44

2011
0.88
2.25
0.51
0.67
0.13
3.64
4.44

2012
0.88
2.25
0.51
0.67
0.13
3.64
4.44

2013
0.88
2.25
0.51
0.67
0.13
3.64
4.44

2014
0.88
2.25
0.51
0.67
0.13
3.64
4.44

13.36

million USD
million USD
million USD
million USD
million USD
million USD
million USD
million USD
million USD
million USD
21.82
26.70

million USD
2004
-

2005
0.88
1.85
0.51
0.67
0.13
3.24
4.05

million USD
million USD

Net Benefits (low)

Net Benefits (high)

million USD
million USD

-11.24
-11.24

2.70
3.50

Net Benefits of Scenario 2 (low)

8.5

million USD

Net Benefits of Scenario 2 (high)

13.3

million USD

3.09
3.90

3.09
3.90

3.09
3.90

3.09
3.90

3.09
3.90

3.09
3.90

3.09
3.90

3.09
3.90

3.09
3.90

Scenario 3 - Gas Transmission to Power Plant & Industries

Amounts of Energy - Scenario 3
Gas for LPG production
Gas transmission for IPP / power plant
Gas transmission for industries
Total CO2 emission reduction from flaring
Present use at oil field (to own power production)
Power for gas compression
Supply of power to grid
Total power production
Economic Cost - Scenario 3
Total Investment Cost
Total O&M
Total Cost
NPV of Total Costs
Economic Benefits - Scenario 3
Saved cost of diesel at oil field
Saved cost of diesel at IPP or power plant
Saved cost of fuels at industries
Saved CO2 cost of flaring (low)
Saved CO2 cost of flaring (high)
Saved CO2 cost of power production (low)
Saved CO2 cost of power production (high)
Total Benefits (low)
Total Benefit (high)
NPV of Benefits
NPV of Benefits
Net Benefits (low)
Net Benefits (high)

million m3 / year
million m3 / year
million m3 / year

2004
-

2005
13.33
-

2006
13.33
-

2007
###
13.33
-

2008
13.33
-

2009
13.33
-

2010
13.33
-

2011
13.33
-

2012
13.33
-

2013
13.33
-

2014
13.33
-

tons

38,667

38,667

38,667

38,667

38,667

38,667

38,667

38,667

38,667

38,667

MWh
MWh
MWh
MWh

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

million USD
million USD
million USD

2004
2.6
2.6

2005
0.1
0.1

2006
0.1
0.1

2007
###
0.1
0.1

2008
0.1
0.1

2009
0.1
0.1

2010
0.1
0.1

2011
0.1
0.1

2012
0.1
0.1

2013
0.1
0.1

2014
0.1
0.1

2006
0.88
2.10
0.77
0.15
2.98
3.91

2007
0.88
2.10
0.77
0.15
2.98
3.91

2008
0.88
2.10
0.77
0.15
2.98
3.91

2009
0.88
2.10
0.77
0.15
2.98
3.91

2010
0.88
2.10
0.77
0.15
2.98
3.91

2011
0.88
2.10
0.77
0.15
2.98
3.91

2012
0.88
2.10
0.77
0.15
2.98
3.91

2013
0.88
2.10
0.77
0.15
2.98
3.91

2014
0.88
2.10
0.77
0.15
2.98
3.91

2.87
3.80

2.87
3.80

2.87
3.80

2.87
3.80

2.87
3.80

2.87
3.80

2.87
3.80

2.87
3.80

2.87
3.80

3.02

million USD
million USD
million USD
million USD
million USD
million USD
million USD
million USD
million USD
18.11
23.75
million USD
million USD

million USD
2004
-

2005
0.88
2.10
0.77
0.15
2.98
3.91

million USD
million USD
-2.64
-2.64

2.87
3.80

Net Benefits of Scenario 3 (low)

15.1

million USD

Net Benefits of Scenario 3 (high)

20.7

million USD

Scenario 4 - LPG Production and Gas Transmission to Power Plant & Industries
Amounts of Energy - Scenario 4
Gas for LPG production
Gas transmission for IPP / power plant
Gas transmission for industries
Total CO2 emission reduction from flaring
LPG to local market
LPG to export market
Total LPG production
Present use at oil field (to own power production)
Power for gas compression
Supply of power to grid
Total power production
Economic Cost - Scenario 4
Total Investment Cost
Total O&M
Total Cost
NPV of Total Costs
Economic Benefits - Scenario 4
Saved cost of diesel at oil field
Saved cost of diesel at IPP or power plant
Saved cost of fuels at industries
Saved cost of LPG - local market
Saved cost of LPG - export
Saved CO2 cost of flaring (low)
Saved CO2 cost of flaring (high)
Saved CO2 cost of power production (low)
Saved CO2 cost of power production (high)
Total Benefits (low)
Total Benefit (high)

million m3 / year
million m3 / year
million m3 / year

2004
-

2005
0.67
12.67
-

2006
0.67
12.67
-

2007
0.67
12.67
-

2008
0.67
12.67
-

2009
0.67
12.67
-

2010
0.67
12.67
-

2011
0.67
12.67
-

2012
0.67
12.67
-

2013
0.67
12.67
-

2014
0.67
12.67
-

tons

38,667

38,667

38,667

38,667

38,667

38,667

38,667

38,667

38,667

38,667

ton / year
ton / year
ton / year

1465
1465

1465
1465

1465
1465

1465
1465

1465
1465

1465
1465

1465
1465

1465
1465

1465
1465

1465
1465

MWh
MWh
MWh
MWh

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

million USD
million USD
million USD

2004
5.8
5.8

2005
0.3
0.3

2006
0.3
0.3

2007
###
0.3
0.3

2008
0.3
0.3

2009
0.3
0.3

2010
0.3
0.3

2011
0.3
0.3

2012
0.3
0.3

2013
0.3
0.3

2014
0.3
0.3

2006
0.88
2.10
0.51
0.77
0.15
3.49
4.42

2007
0.88
2.10
0.51
0.77
0.15
3.49
4.42

2008
0.88
2.10
0.51
0.77
0.15
3.49
4.42

2009
0.88
2.10
0.51
0.77
0.15
3.49
4.42

2010
0.88
2.10
0.51
0.77
0.15
3.49
4.42

2011
0.88
2.10
0.51
0.77
0.15
3.49
4.42

2012
0.88
2.10
0.51
0.77
0.15
3.49
4.42

2013
0.88
2.10
0.51
0.77
0.15
3.49
4.42

2014
0.88
2.10
0.51
0.77
0.15
3.49
4.42

6.77

million USD
million USD
million USD
million USD
million USD
million USD
million USD
million USD
million USD
million USD
million USD

million USD
2004
-

2005
0.88
2.10
0.51
0.77
0.15
3.49
4.42

NPV of Benefits
NPV of Benefits
Net Benefits (low)
Net Benefits (high)

21.23
26.87
million USD
million USD

million USD
million USD
-5.76
-5.76

3.22
4.15

Net Benefits of Scenario 4 (low)

14.5

million USD

Net Benefits of Scenario 4 (high)

20.1

million USD

3.22
4.15

3.22
4.15

3.22
4.15

3.22
4.15

3.22
4.15

3.22
4.15

3.22
4.15

3.22
4.15

3.22
4.15

Fixed

2004

prices

2015

2016

2017

2018

2019

13.33

13.33

13.33

13.33

13.33

10316

10316

10316

10316

10316

38,667

38,667

38,667

38,667

38,667

0.88

0.88

0.88

0.88

0.88

0.77

0.77

0.77

0.77

0.77

2015
9.99

2016
9.99

2017
9.99

2018
9.99

2019
9.99

28,977

28,977

28,977

28,977

28,977

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

2015
0.4
0.4

2016
0.4
0.4

2017
0.4
0.4

2018
0.4
0.4

2019
0.4
0.4

0.88
2.25

0.88
2.25

0.88
2.25

0.88
2.25

0.88
2.25

0.58
0.12
3.13
3.82

0.58
0.12
3.13
3.82

0.58
0.12
3.13
3.82

0.58
0.12
3.13
3.82

0.58
0.12
3.13
3.82

2.74
3.43

2.74
3.43

2.74
3.43

2.74
3.43

2.74
3.43

2015
0.67
10.87

2016
0.67
10.87

2017
0.67
10.87

2018
0.67
10.87

2019
0.67
10.87

33,448

33,448

33,448

33,448

33,448

1,465
1,465

1,465
1,465

1,465
1,465

1,465
1,465

1,465
1,465

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

10,316
5,291
30,000
45,607

2015
0.5
0.5

2016
0.5
0.5

2017
0.5
0.5

2018
0.5
0.5

2019
0.5
0.5

2015
0.88
2.25
0.51
0.67
0.13
3.64
4.44

2016
0.88
2.25
0.51
0.67
0.13
3.64
4.44

2017
0.88
2.25
0.51
0.67
0.13
3.64
4.44

2018
0.88
2.25
0.51
0.67
0.13
3.64
4.44

2019
0.88
2.25
0.51
0.67
0.13
3.64
4.44

3.09
3.90

3.09
3.90

3.09
3.90

3.09
3.90

3.09
3.90

2015
13.33
-

2016
13.33
-

2017
13.33
-

2018
13.33
-

2019
13.33
-

38,667

38,667

38,667

38,667

38,667

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

2015
0.1
0.1

2016
0.1
0.1

2017
0.1
0.1

2018
0.1
0.1

2019
0.1
0.1

2015
0.88
2.10
0.77
0.15
2.98
3.91

2016
0.88
2.10
0.77
0.15
2.98
3.91

2017
0.88
2.10
0.77
0.15
2.98
3.91

2018
0.88
2.10
0.77
0.15
2.98
3.91

2019
0.88
2.10
0.77
0.15
2.98
3.91

2.87
3.80

2.87
3.80

2.87
3.80

2.87
3.80

2.87
3.80

2015
0.67
12.67
-

2016
0.67
12.67
-

2017
0.67
12.67
-

2018
0.67
12.67
-

2019
0.67
12.67
-

38,667

38,667

38,667

38,667

38,667

1465
1465

1465
1465

1465
1465

1465
1465

1465
1465

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

2015
0.3
0.3

2016
0.3
0.3

2017
0.3
0.3

2018
0.3
0.3

2019
0.3
0.3

2015
0.88
2.10
0.51
0.77
0.15
3.49
4.42

2016
0.88
2.10
0.51
0.77
0.15
3.49
4.42

2017
0.88
2.10
0.51
0.77
0.15
3.49
4.42

2018
0.88
2.10
0.51
0.77
0.15
3.49
4.42

2019
0.88
2.10
0.51
0.77
0.15
3.49
4.42

3.22
4.15

3.22
4.15

3.22
4.15

3.22
4.15

3.22
4.15

Financial Analyses
Sale of Associated Gas from Oil Field:

One

Scenario 1
Amounts of Energy - Scenario 1
Gas for LPG production
Gas for power production
Total CO2 emission reduction from flaring

million m / year
million m3 / year

2004
-

tons

28,977

28,977

28,977

28,977

28,977

28,977

28,977

28,977

28,977

Present use at oil field (to own power production)

Power for gas compression

MWh
MWh

10,316
5,291

10,316
5,291

10,316
5,291

10,316
5,291

10,316
5,291

10,316
5,291

10,316
5,291

10,316
5,291

10,316
5,291

Supply of power to grid

Total power production

MWh
MWh

24,709
40,316

30,000
45,607

30,000
45,607

30,000
45,607

30,000
45,607

30,000
45,607

30,000
45,607

30,000
45,607

30,000
45,607

million USD
million USD
million USD

2004
8.1
8.1

2005
0.4
0.4

2006
0.4
0.4

2007
0.4
0.4

2008
0.4
0.4

2009
0.4
0.4

2010
0.4
0.4

2011
0.4
0.4

2012
0.4
0.4

2013
0.4
0.4

2006
0.88
2.25
0.09
3.21

2007
0.88
2.25
0.09
3.21

2008
0.88
2.25
0.09
3.21

2009
0.88
2.25
0.09
3.21

2010
0.88
2.25
0.09
3.21

2011
0.88
2.25
0.09
3.21

2012
0.88
2.25
0.09
3.21

2013
0.88
2.25
0.09
3.21

2.82

2.82

2.82

2.82

2.82

2.82

2.82

2.82

Financial Cost - Scenario 1

Total Investment Cost
Total O&M
Total Cost
NPV of Total Costs
Financial Income - Scenario 1
Sale of gas to power production at oil field
Sale of power to grid
Income from sales of CER
Total Income
NPV of Total Income
Net Income
NPV of Net Income of Scenario 1

9.02

million USD
million USD
million USD
million USD
16.04
million USD
7.02

2005
9.99

2006
9.99

2007
9.99

2008
9.99

2009
9.99

2010
9.99

2011
9.99

2012
9.99

2013
9.99

million USD
2004
-

2005
0.88
1.85
0.09
2.82

million USD
-8.10

2.43

million USD

Scenario 2 - Power & LPG Production at the Oil Field

Amounts of Energy - Scenario 2
Gas for LPG production
Gas for power production
Total CO2 emission reduction from flaring
LPG to local market
LPG to export market
Total LPG production
Present use at oil field (to own power production)
Power for gas compression
Supply of power to grid
Total power production
Financial Cost - Scenario 2
Total Investment Cost
Total O&M
Total Cost
NPV of Total Costs
Financial Income - Scenario 2
Sale of gas to power production at oil field
Sale of power to grid
Sale of LPG to local market
Export of LPG
Income from sales of CER
Total Income
NPV of Total Income
Net Income

million m3 / year
million m3 / year

2004
-

2005
0.67
10.87

2006
0.67
10.87

2007
0.67
10.87

2008
0.67
10.87

2009
0.67
10.87

2010
0.67
10.87

2011
0.67
10.87

2012
0.67
10.87

2013
0.67
10.87

tons

33,448

33,448

33,448

33,448

33,448

33,448

33,448

33,448

33,448

ton / year
ton / year
ton / year
MWh
MWh
MWh
MWh

1,465
1,465
10,316
5,291
24,709
40,316

1,465
1,465
10,316
5,291
30,000
45,607

1,465
1,465
10,316
5,291
30,000
45,607

1,465
1,465
10,316
5,291
30,000
45,607

1,465
1,465
10,316
5,291
30,000
45,607

1,465
1,465
10,316
5,291
30,000
45,607

1,465
1,465
10,316
5,291
30,000
45,607

1,465
1,465
10,316
5,291
30,000
45,607

1,465
1,465
10,316
5,291
30,000
45,607

million USD
million USD
million USD

2004
11.2
11.2

2005
0.5
0.5

2006
0.5
0.5

2007
0.5
0.5

2008
0.5
0.5

2009
0.5
0.5

2010
0.5
0.5

2011
0.5
0.5

2012
0.5
0.5

2013
0.5
0.5

2006
0.88
2.25
0.51
0.10
3.74

2007
0.88
2.25
0.51
0.10
3.74

2008
0.88
2.25
0.51
0.10
3.74

2009
0.88
2.25
0.51
0.10
3.74

2010
0.88
2.25
0.51
0.10
3.74

2011
0.88
2.25
0.51
0.10
3.74

2012
0.88
2.25
0.51
0.10
3.74

2013
0.88
2.25
0.51
0.10
3.74

3.19

3.19

3.19

3.19

3.19

3.19

3.19

3.19

12.55

million USD
million USD
million USD
million USD
million USD
million USD
18.72
million USD

million USD
2004
-

2005
0.88
1.85
0.51
0.10
3.34

million USD
-11.24

2.80

NPV of Net Income of Scenario 2

6.17

million USD

Scenario 3 - Gas Transmission to Power Plant & Industries

Amounts of Energy - Scenario 3
Gas for LPG production
Gas transmission for IPP / power plant
Gas transmission for industries
Total CO2 emission reduction from flaring
Present use at oil field (to own power production)
Power for gas compression
Supply of gas to IPP / power plant / industries
Total power production
Financial Cost - Scenario 3
Total Investment Cost
Total O&M
Total Cost
NPV of Total Costs
Financial Income - Scenario 3
Sale of gas to power production at oil field
Sale of gas to IPP / power plant
Sale of gas to industries
Income from sales of CER
Total Income
NPV of Total Income
Net Income
NPV of Net Income of Scenario 3

million m / year
million m3 / year
million m3 / year

2004
-

tons

38,667

38,667

38,667

38,667

38,667

38,667

38,667

38,667

38,667

MWh
MWh
MWh
MWh

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

million USD
million USD
million USD

2004
2.6
2.6

2005
0.1
0.1

2006
0.1
0.1

2007
0.1
0.1

2008
0.1
0.1

2009
0.1
0.1

2010
0.1
0.1

2011
0.1
0.1

2012
0.1
0.1

2013
0.1
0.1

2006
0.88
2.10
0.12
3.09

2007
0.88
2.10
0.12
3.09

2008
0.88
2.10
0.12
3.09

2009
0.88
2.10
0.12
3.09

2010
0.88
2.10
0.12
3.09

2011
0.88
2.10
0.12
3.09

2012
0.88
2.10
0.12
3.09

2013
0.88
2.10
0.12
3.09

2.98

2.98

2.98

2.98

2.98

2.98

2.98

2.98

2.85

million USD
million USD
million USD
million USD
million USD
15.73
million USD
12.88

2005
13.33
-

2006
13.33
-

2007
13.33
-

2008
13.33
-

2009
13.33
-

2010
13.33
-

2011
13.33
-

2012
13.33
-

2013
13.33
-

million USD
2004
-

2005
0.88
2.10
0.12
3.09

million USD
-2.64

2.98

million USD

Scenario 4 - LPG Production and Gas Transmission to Power Plant & Industries
Amounts of Energy - Scenario 4
Gas for LPG production
Gas transmission for IPP / power plant
Gas transmission for industries
Total CO2 emission reduction from flaring
LPG to local market
LPG to export market
Total LPG production
Present use at oil field (to own power production)
Power for gas compression
Supply of power to grid
Total power production
Financial Cost - Scenario 4
Total Investment Cost
Total O&M
Total Cost
NPV of Total Costs
Financial Income - Scenario 4
Sale of gas to power production at oil field
Sale of gas to IPP / power plant
Sale of gas to industries
Sale of LPG to local market
Export of LPG to World Market
Income from sales of CER
Total Income
NPV of Total Income

2005
0.67
12.67
-

2006
0.67
12.67
-

2007
0.67
12.67
-

2008
0.67
12.67
-

2009
0.67
12.67
-

2010
0.67
12.67
-

2011
0.67
12.67
-

2012
0.67
12.67
-

2013
0.67
12.67
-

ton / year
ton / year
ton / year

38,667
1,465
1,465

38,667
1,465
1,465

38,667
1,465
1,465

38,667
1,465
1,465

38,667
1,465
1,465

38,667
1,465
1,465

38,667
1,465
1,465

38,667
1,465
1,465

38,667
1,465
1,465

MWh
MWh
MWh
MWh

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

million USD
million USD
million USD

2004
5.8
5.8

2005
0.3
0.3

2006
0.3
0.3

2007
0.3
0.3

2008
0.3
0.3

2009
0.3
0.3

2010
0.3
0.3

2011
0.3
0.3

2012
0.3
0.3

2013
0.3
0.3

2006
0.88
2.10
0.51
0.12
3.61

2007
0.88
2.10
0.51
0.12
3.61

2008
0.88
2.10
0.51
0.12
3.61

2009
0.88
2.10
0.51
0.12
3.61

2010
0.88
2.10
0.51
0.12
3.61

2011
0.88
2.10
0.51
0.12
3.61

2012
0.88
2.10
0.51
0.12
3.61

2013
0.88
2.10
0.51
0.12
3.61

million m3 / year
million m3 / year
million m3 / year
tons

6.37

million USD
million USD
million USD
million USD
million USD
million USD
million USD
21.09

2004
-

million USD
2004
-

2005
0.88
2.10
0.51
0.12
3.61

million USD

Net Income
NPV of Net Income of Scenario 4

million USD
11.97

-5.76

3.34

million USD

3.34

3.34

3.34

3.34

3.34

3.34

3.34

3.34

Fixed

2004

prices

2014
9.99

2015
9.99

2016
9.99

2017
9.99

2018
9.99

2019
9.99

28,977

28,977

28,977

28,977

28,977

28,977

10,316
5,291

10,316
5,291

10,316
5,291

10,316
5,291

10,316
5,291

10,316
5,291

30,000
45,607

30,000
45,607

30,000
45,607

30,000
45,607

30,000
45,607

30,000
45,607

2014
0.4
0.4

2015
0.4
0.4

2016
0.4
0.4

2017
0.4
0.4

2018
0.4
0.4

2019
0.4
0.4

2014
0.88
2.25
0.09
3.21

2015
0.88
2.25
0.09
3.21

2016
0.88
2.25
0.09
3.21

2017
0.88
2.25
0.09
3.21

2018
0.88
2.25
0.09
3.21

2019
0.88
2.25
0.09
3.21

2.82

2.82

2.82

2.82

2.82

2.82

2014
0.67
10.87

2015
0.67
10.87

2016
0.67
10.87

2017
0.67
10.87

2018
0.67
10.87

2019
0.67
10.87

33,448

33,448

33,448

33,448

33,448

33,448

1,465
1,465
10,316
5,291
30,000
45,607

1,465
1,465
10,316
5,291
30,000
45,607

1,465
1,465
10,316
5,291
30,000
45,607

1,465
1,465
10,316
5,291
30,000
45,607

1,465
1,465
10,316
5,291
30,000
45,607

1,465
1,465
10,316
5,291
30,000
45,607

2014
0.5
0.5

2015
0.5
0.5

2016
0.5
0.5

2017
0.5
0.5

2018
0.5
0.5

2019
0.5
0.5

2014
0.88
2.25
0.51
0.10
3.74

2015
0.88
2.25
0.51
0.10
3.74

2016
0.88
2.25
0.51
0.10
3.74

2017
0.88
2.25
0.51
0.10
3.74

2018
0.88
2.25
0.51
0.10
3.74

2019
0.88
2.25
0.51
0.10
3.74

3.19

3.19

3.19

3.19

3.19

3.19

2014
13.33
-

2015
13.33
-

2016
13.33
-

2017
13.33
-

2018
13.33
-

2019
13.33
-

38,667

38,667

38,667

38,667

38,667

38,667

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

2014
0.1
0.1

2015
0.1
0.1

2016
0.1
0.1

2017
0.1
0.1

2018
0.1
0.1

2019
0.1
0.1

2014
0.88
2.10
0.12
3.09

2015
0.88
2.10
0.12
3.09

2016
0.88
2.10
0.12
3.09

2017
0.88
2.10
0.12
3.09

2018
0.88
2.10
0.12
3.09

2019
0.88
2.10
0.12
3.09

2.98

2.98

2.98

2.98

2.98

2.98

2014
0.67
12.67
-

2015
0.67
12.67
-

2016
0.67
12.67
-

2017
0.67
12.67
-

2018
0.67
12.67
-

2019
0.67
12.67
-

38,667
1,465
1,465

38,667
1,465
1,465

38,667
1,465
1,465

38,667
1,465
1,465

38,667
1,465
1,465

38,667
1,465
1,465

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

10,316
5,291
24,709
40,316

2014
0.3
0.3

2015
0.3
0.3

2016
0.3
0.3

2017
0.3
0.3

2018
0.3
0.3

2019
0.3
0.3

2014
0.88
2.10
0.51
0.12
3.61

2015
0.88
2.10
0.51
0.12
3.61

2016
0.88
2.10
0.51
0.12
3.61

2017
0.88
2.10
0.51
0.12
3.61

2018
0.88
2.10
0.51
0.12
3.61

2019
0.88
2.10
0.51
0.12
3.61

3.34

3.34

3.34

3.34

3.34

3.34

Results of Economic & Financial Analyses

0 USD per ton CO2

Results of Economic Analysis

NPV million USD

Present Flaring Scenario

Scenario 1
Scenario 2
Scenario 3
Scenario 4

Benefits

Costs

Net
Benefits

Marginal
Benefit

Gas Flared
%

Gas Used
%

0
18.7
21.8
18.1
21.2

6.0
9.6
13.4
3.0
6.8

-6.0
9.1
8.5
15.1
14.5

15.1
14.4
21.1
20.4

100%
0%
0%
0%
0%

0%
100%
100%
100%
100%

20 USD per ton CO2

Results of Economic Analysis

NPV million USD

Present Flaring Scenario

Scenario 1
Scenario 2
Scenario 3
Scenario 4

Benefits

Costs

Net
Benefits

Marginal
Benefit

Gas Flared
%

Gas Used
%

0.0
22.9
26.7
23.8
26.9

11.2
9.6
13.4
3.0
6.8

-11.2
13.3
13.3
20.7
20.1

24.6
24.6
32.0
31.3

100%
0%
0%
0%
0%

0%
100%
100%
100%
100%

Results of Financial Analysis

NPV million USD

Present Flaring Scenario

Scenario 1
Scenario 2
Scenario 3
Scenario 4

3 per ton CO2

Sale of CER at

Income

Costs

Net
Income

Marginal
Income

Gas Flared
%

Gas Used
%

0
16.0
18.7
15.7
21.1

0
9.0
12.6
2.9
6.4

0
7.0
6.2
12.9
12.0

7.0
6.2
12.9
12.0

100%
0%
0%
0%
0%

0%
100%
100%
100%
100%

325