The cost of obtaining foreign chemicals for EOR operations in the Niger Delta are challenging, principally in the face of surging currency exchange rate. Therefore, this research presents the opportunity of recovering more oil from the country`s depleted reservoirs at a cheaper cost with eco-friendly emulsion fluid. The cost of formulating the emulsion flooding fluid with palm oil mill effluent, and empty palm bunch was compared to the cost of formulating a synthetic emulsion with gear oil and sodium lauryl sulphate. Oil was extracted from palm oil mill effluent using a centrifuge after characterization and surfactant solution was prepared with distilled water and ash from burnt empty fruit bunch, then oil/surfactant emulsion sample was formulated in a ratio 30/70. Furthermore, a synthetic emulsion with gear oil and sodium lauryl sulfate was also formulated in a ratio of 30/70. Two Core samples of evaluated geometry were used in this flooding experiment. These crude oil saturated cores were flooded with water, then followed with then followed by flooding with the locally formulated emulsion, and the synthetic emulsion respectively. The results showed that water flooding in the two core samples recovered 58.3% of oil, while the locally formulated emulsion recovered an incremental 35.2% and 37.5% of oil respectively. Lastly the economic analysis of formulating emulsion flooding fluid using waste materials from palm oil mill, and using synthetic materials were carried out. The results revealed that the net present value of investment in formulating synthetic emulsion is N-499,507,552,185.00, while the net present value of using waste materials from palm oil mill is N 26,940,828,073.20. Investment on the production of emulsion of 30/70 ratio using synthetic materials requires a substantial initial investment and generates consistent negative cash flows, leading to a significant loss of 90.89%, but investment in the production of 30/70 emulsion ratio with oil extracted from palm oil mill effluent and palm bunch ash appears viable, with a relatively small yearly investment, positive cash flows for the 10-year period, and a substantial positive NPV. With payback period of 8.17 years and a Return on investment of 122.35%.
Keywords: Economic Evaluation, Empty palm bunch, Palm oil mill effluent, local emulsion, synthetic emulsion
