A substantial amount of wastewater, known as produced water (PW), is generated during oil
and gas extraction. Given that PW can have a detrimental effect on the environment, it must be
appropriately managed and treated before reuse. Globally, PW management is one of the
greatest challenges in the oil and gas industry due to the costly treatment methods and large
amounts involved, and there is a lack of expertise in the knowledge of PW management. Kuwait
is a leading oil producer, and PW management poses a severe threat to the sustainability of
Kuwait’s oil fields in terms of cost control and environmental safety.
Here, life cycle and economic assessments are used to develop a mathematical framework for
analysing trade-offs between the financial costs and environmental impacts of PW management
operations. Specifically, a multi-objective mixed-integer linear programming framework is
formulated for Kuwait Oil Company’s (KOC) PW supply chain management with different
operational and regulatory constraints. A model solution for sustainable operations over the
short, mid and long term that aligns with KOC’s strategic policy on PW management is
presented. A global sensitivity analysis (GSA) also performed to further assess the economic
and operational factors that influence KOC’s PW management. Finally, risk assessment is
conducted to identify and evaluate risks associated with PW utilisation.
Results indicate that treatment operations account for half of total system costs, and electricity
consumption accounts for most of environmental impact, affecting the sustainability of the PW
supply chain system most significantly. Moreover, KOC’s PW supply chain system is impacted
by a number of factors, including discount rates, electricity costs, and water treatment costs. In
the case of PW utilisation, several types of risks may be posed that may negatively affect health,
technology, the environment, and the economy. The findings of this study can be used to assess
and guide PW supply chain management at KOC.