Local startups are capable of reducing the effects of corrosion in the oil industry by at least 20% over the next five years, the head of the Oil Industry Technology and Innovation Park said.
“The annual losses inflicted by corrosion on the oil sector in Iran is estimated at $20 billion and domestic knowledge-based firms can help lessen the massive loss,” Mohammad Esmaeil Kefayati was also quoted as saying by the Oil Ministry’s news service.
Close to 50 startups are ready and willing to collaborate with the National Iranian Oil Company to carry out corrosion control operations not only in refineries but also in hydrocarbon fields, he added.
Corrosion damages pipes, equipment and machinery, forcing refining complexes to close for cleanup operations, in addition to causing serious environmental problems, such as leaks.
Commenting on ongoing projects to reduce corrosion, he noted that specialized workers have been trained to manage corrosion control via pigging operations, but it is not enough and a lot more needs to be done.
In refineries and petrochemical plants, heating leads to production of additional corrosive agents such as strong and weak acids.
Contamination by oxygen is very detrimental to steel structures, therefore, every effort should be made to exclude it from all oil and gas operations.
Damage Mechanisms
The official said effective corrosion management programs should identify corrosion damage mechanisms and encompass, as a minimum, the required mitigation methods and monitoring and maintenance techniques.
Corrosion in refineries is mainly caused by inorganics such as carbon dioxide, water, sodium chloride and sulfuric acid, and not by organics.
There are mainly two types of corrosive agents, such as those present in the crude oil or feedstock, and those associated with control or processes.
Usually, water is present in crude oils, the complete removal of which is very difficult. Due to the moisture in compressed air, corrosion starts when the coating of pipes becomes worn out. The gradual pitting corrosion continues with the occurrence of a leak.
According to Kefayati, by using the cutting-edge technologies developed by startups, it is possible to enhance oil and gas output capacity from hydrocarbon reserves in abandoned wells.
The official said plans are underway to link startups with local oil and gas firms so that they can help apply modern enhanced oil recovery and improved oil recovery techniques that are crucial for increasing production.
Oilfield exploitation process can be divided into four stages, the last of which is characterized by a rather slow, gradual decline of oil production.
There are more than 5,500 oil and gas wells in 400 oil and gas fields of the country, some of which are under the late stage of development.
This stage is associated with a number of challenges during the production and operation of reservoir fluids, such as fluctuation in temperature and pressure, and assessment of oil production rates.
Annual Production
The official noted that by drawing on the capabilities of knowledge-based companies, NIOC will be able to increase its annual production capacity to more than 80 million barrels of oil.
“Some 50 startups are capable of competing with foreign counterparts, as they are marketing their goods and technical services in international markets,” he said.
“There are startups whose products, including catalysts, pieces and parts are sent to Russia and other neighboring states, but due to sanctions-related concerns, names cannot be revealed.”
Kefayati said Iran is 80% self-sufficient in manufacturing parts and equipment needed by the oil and gas industries, and plans have been made to meet the rest.
He added that outdated oil production methods do not work anymore, which explains why startups should be given a chance to play a bigger role in the key industry.
“Taking advantage of local firms’ prowess can also help reduce costs in oil and gas sector. NIOC must spend at least $10 million on drilling each new well, whereas by using knowledge-based firms’ experience, the state-run company can revive each abandoned well at a cost of $1 million,” he concluded.
