EVALUATION OF CORROSION COST OF CRUDE OIL PROCESSING INDUSTRY

Crude oil production industry as the hub of Nigeria Economy is not immune to the global financial meltdown being experienced world over which have resulted in a continual fall of oil price. This has necessitated the need to reduce cost of production. One of the major costs of production is corrosion cost, hence, its evaluation. This research work outlined the basic principles of corrosion prevention, monitoring and inspection and attempted to describe ways in which these measures may be adopted in the context of oil production. A wide range of facilities are used in crude oil production making it difficult to evaluate precisely the extent of corrosion and its cost implication. In this study, cost of corrosion per barrel was determined and the annualized value of corrosion cost was also determined using the principles of engineering economy and results analyzed using descriptive statistics. The results showed that among the corrosion prevention methods identified, the use of chemical treatment gave the highest cost contribution (81%) of the total cost of prevention while coating added 19%. Cleaning pigging and cathodic protection gave no cost. The contribution of corrosion maintenance methods are 60% for repairs and 40% for replacement. Also among the corrosion monitoring and inspection identified, NDT gave the highest cost contribution of 41% of the total cost, followed by coating survey (34%). Cathodic protection survey and crude analysis gives the lowest cost contribution of 19% and 6% respectively. Corrosion control cost per barrel was found to be 77 cent/barrel. The significance of this cost was not much due to high price of crude oil in the international market. But the effect of corrosion in crude oil processing takes its toll on crude oil production (i.e. deferment).