the emulsion probably occurs in the wellbore, wellhead and pipeline where turbulent flow occurs. gas comes out of solution , expands and cools the flowstream off. sort of like a milkshake , chocolate milkshake, dark chocolate.

the emulsion could occur with the native formation water,
but i assume the injected water only increases the problem. other things can contribute to an emulsion. the droplets like to form around particles of iron for example (corrosion product). i think solid parafin can also contribute. i dont know if parafin is even a problem here.
you are taxing my memory, this goes back to the days in the texaco field office long long ago in an oilfield far far away. when i left i told them i was leaving because of low pay, low employee moral and lo-cation.

and this leads up to another story. one solution to excess water production, which i am sure the saudi's are or have looked at is a free water knock out. this will remove a large % of the water before it enters the gosp. they still have to do something with the water.