Royalties Model to Increase the Recovery Factor through Low Salinity Water Flooding in the Peruvian Jungle

Sinchitullo J.; Sinchitullo A.; Prudencio G. · Proceedings of the LACCEI international Multi-conference for Engineering, Education and Technology (2021) · DOI: 10.18687/laccei2021.1.1.409

Resumen

Low oil prices have led oil companies to postpone multiple investment projects. Likewise, they have found it necessary to reduce their capital and operating costs. Peru has a rigid fiscal system that does not analyze situations where oil price volatility is extreme. For this reason, a royalty model has been developed that would allow increasing production in mature fields in the Peruvian jungle. This through an optimization model that incorporates the geological, reservoir and economic characteristics of the fields of the Peruvian jungle, based on a win-win approach. With the model, the optimal royalty rates are found, and the reserve replacement ratio is incorporated as a mechanism to guarantee investments in the oil fields of the case study. For this, the potentiality of application of the improved recovery technique of the injection of low salinity water flooding (LSWF) has been evaluated. The importance of the study lies in the fact that the operating companies will have a negotiation mechanism with the hydrocarbons agency (Perupetro) in a situation of volatility in the oil price. The main conclusion of the study indicates that the proposed methodology allows the design of a more equitable royalty scheme in terms of income for both the State and the investor, and the LSFW technique can increase the recovery factor by up to 4.5%.

Instituciones: Universidad Nacional de Ingeniería