Maximizing the Value and Recovery of Oil and Gas Resources

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1 Research and Development for Oil and Gas Technology LEMIGAS Ministry of Energy and Mineral Resources Republic of Indonesia Maximizing the Value and Recovery of Oil and Gas Resources CCOP-DMF Project on Petroleum Resources/Reserves Classification and Reporting System (S5) Bangkok - Thailand 8 10 September 2015

2 CONTENT 1. INDONESIA RESERVES DEFINITION AND CLASSIFICATION 2. OBTAINING DATA FROM OIL/GAS COMPANIES 3. POD/POFD 4. POTENTIONALITY TO GAIN MORE ADDITIONAL RESERVES Page 2

3 INDONESIA Reserve Classification Reserves Classification that is used by Indonesian Government (SKK Migas and Oil and Gas General Directorate) refer to SPE 2001 and it have been modified based on the reservoir character in Indonesia. Developed Proved Estimate Undeveloped Reserves Probable Estimate Possible Estimate Annual Reserves Report 90%P1 + 50%P2 Or 90% P1 POD Commercial Sub - Commercial Page 3 Source: SKKMIGAS

4 Reserves Classification (More detailed) Active Oil and Gas Reserves Developed Proven Inactive Primary Probable Not yet Developed Secondary Possible Development Status Productivity Level Production Phase Probability Level Reserve classification that is more detail can be done by each formation Page 4 Source: SKKMIGAS

5 Reserves Definition The Summary of Hydrocarbon that originally in the reservoir that can be produced by current available technology until certain times. Cumulative Production Reserve Left in Reservoir Oil Potention in IOR/EOR Phase Oil Reserves in Natural Recovery Original OIL In Place (OOIP) Page 5 Source: SKKMIGAS

6 Reserves Criteria Classification ( Proven Reserve ) : Summary of Hydrocarbon that is found in Reservoir Rock and proven to be produced by using current available technology with trust/acceptance level in about 90% based on well log, geological and reservoir engineering and it is backed up by actual production data or production flowing test. Proven = P1 P90 Page 6 Source: SKKMIGAS

7 Reserves Criteria Classification ( Probable Reserve ) : Summary of Hydrocarbon that is found in Reservoir Rock and proven to be produced by using current available technology with trust/acceptance level in about 50% based on well log, geological and reservoir engineering and it is not yet backed up by actual production data or production flowing test. Probable = P2, 2P = P1 + P2, 2P P50 Page 7 Source: SKKMIGAS

8 Reserves Criteria Classification ( Possible Reserve ) : Summary of Hydrocarbon that is found in Reservoir Rock and proven to be produced by using current available technology with trust/acceptance level in about 10% based on the correlation of geological and geophysical data, Reservoir Engineering but without any well log. Possible = P3, 3P = P1 + P2 + P3, 3P P10 Page 8 Source: SKKMIGAS

9 Boundary of P1 vertically (Proven) : Based on the level of Oil Water Contact (OWC) or Gas Water Contact (GWC) where the determination of fluid level contact must be supported by production flowtest, petrophysics interpretation, and pressure gradient analysis. If OWC or GWC can be certainly determined, then there is no boundary of P2 or P3 vertically in the same reservoir. If Fluid Contact can not be determined, then the vertical boundary of P1 is the lower level of production test (DST). If the resistivity profile below the production test (DST) interval shows the bigger value and also supported with good reservoir properties, then the vertical boundary of P1 is allowed to reach the Lowest Known Oil (LKO) or Lowest Known Gas (LKG). Page 9 Reserves Criteria Classification Source: SKKMIGAS

10 Reserves Criteria Classification Boundary of P2 vertically (Probable) : The boundary between P1 (lowest tested interval) till edge of (LKO/LKG). If the boundary of P1 is at LKO/LKG (lowest tested = LKO/LKG), then the boundary of P2 is between P1 and half of vertical edge of spill point or Highest Known Water (HKW). Boundary of P3 vertically (Possible) : The area boundary between P2 and Spill Point or Highest Known Water (HKW) Page 10 Source: SKKMIGAS

Classification of Reserve Category based on Well

where it should be supported by production test (DST),

11 Classification of Reserve Category based on Well (Vertically) Prod. Test Gas Flowing Illustration - 1 Edge of P1 could be determined vertically based on fluid level (OWC/GWC), where it should be supported by production test (DST), Petrophysics Interpretation, and Pressure gradient. Proven GWC Prod Test. Water Flowing. Page 11 Source: SKKMIGAS

12 Classification of Reserve Category based on Well (Vertically) GR RT Illustration- 2 A Probable B Proven tes prod. Probable LKO Page 12 Source: SKKMIGAS

13 Classification of Reserve Category based on Well (AREA) Lateral/Areal Boundary of P1 (Proven) 1.5 x of Radius Investigation from flowing production test (DST) at the representated Zone 1.5 x of depletion radius that is counted by decline analysis of production profile from well that have been produced. If there is no DST data available, then the approximation of the edge of area P1 is 250 metres maximum for Oil reservoir with API > 30 0, and for gas Reservoir, the maximum area is 750 m. Lateral/Areal Boundary of 2P (Proven + Probable) 2.5 x Radius area P1 (Proven). If the area P1 is restricted by different facies or there is fault, then the area in which there is no well available, is categorized as P2 Outside the area 2P in the same structure, is categorized as Possible (P3). Page 13 Source: SKKMIGAS

14 OBTAINING DATA FROM OIL/GAS COMPANIES WHAT OPERATOR SHOULD SUBMIT TO THE GOVERNMENT? ANNUAL RESERVES REPORT WHICH CONTENT I. COVER LETTER - Brief Explanation - Revision of Reserves - Revision of Map - Reclasification of Reserves - New Discovery II. CONTRACT AREA MAP - Oil Field Location - Gas Field Location - Undeveloped Field Location III. RESERVES AND PRODUCTION SUMMARY A. Estimated Reserves By Field By Reservoir B. Revision of Reserves C. Production Page 14 Source: SKKMIGAS

15 OBTAINING DATA FROM OIL/GAS COMPANIES ANNUAL RESERVES REPORT CONTENT I IV. APPENDICES / ATTACHMENTS 1. Individual Reservoir Data - Form : D-2 GEOLOGICAL DATA ENGINEERING DATA PRODUCTION AND INJECTION DATA RESERVOIR RESERVES CALCULATIONS Method of Calculation Type of Reservoir Drive 2. Top Structure Map 3. Net Isopach Map 4. Production Performance Figures 5. Other Supporting Data : Estimated Economic Limit, Gas Composition, Gas Utilization, Platform Location Map, Structure Cross Section, Type Well Log Section - Etc. Page 15 Source: SKKMIGAS

16 OBTAINING DATA FROM OIL/GAS COMPANIES Reporting Resources from oil/gas Companies (KKKS): 2013 now : Reporting using Online Website Before 2013 : Manual reporting using MS Excel Standar format reporting on Resources from each oil/gas companies (PSC) will make the analisis and calculation of resources more accurate. Page 16

17 Reporting resources online stages: 1. Reporting Preparation 2. Filling form PLAY 3. Filling form LEAD 4. Filling form DRILLABLE PROSPECT 5. Filling form POST DRILL PROSPECT 6. Filling form DISCOVERY POSPECT 7. Uploading Map, figures and diagram 8. Printing out Report PORTFOLIO ASSET 9. Sending hardcopy to SKK MIGAS On-line website SKK Migas Page 17

18 Page 18 The reporting online website:

19 Page 19 The reporting online website:

20 Page 20 The reporting online website:

21 Page 21 The reporting online website:

22 Page 22 The reporting online website:

23 Page 23 The reporting online website:

24 Page 24

25 Page 25 The reporting online website:

26 Data requirement for reporting: AVAILABILITY INFORMATION PLAY LEAD DRILLABLE POST DRILL DISCOVERY NAME GEOGRAPHIC COORDINATE BASIN ROCK / FLUID PROPERTIES FROM ADJACTION WELL DATA GEOLOGY SURVEY GRAVITY SURVEY GEOCHEMISTRY SURVEY ELECTROMAGNETIC SURVEY RESISTIVITY SURVEY OTHERS SURVEY SEISMIC 3D SURVEY WELL TESTING WELL PETROPHYSIC ROCK PROPERTIES GAS DEVIATION FACTOR INITIAL FVF OIL VISCOSITY GCF DESCRIPTION GRA CLOSURE AREA VOLUMETRIC Page 26

27 Mandatory data requirement for reporting: Page 27 PLAY Administration Geographical Block Basin Province Geological By Analog to Distance to Analog Exploration method Environment Onshore/offshore Terrain Adjacent Activity Distance Nearby Field Distance Nearby Infrastructure GCF Source rock Reservoir rock Trapping Dynamic LEAD Administration Link Play Structure Nama Lead Name Clarified by Lead Name Initiation Date Center Coordinate Environment Onshore/offshore Terrain Adjacent Activity Distance Nearby Field Distance Nearby Infrastructure Survey Data Availability Acquisition Year Total Crossing line Average Spacing Parallel Interval 2D Closure Low, Best, and High Estimate

28 Mandatory data requirement for reporting: DRILLABLE Prospect Administration Link Play Structure Nama Drillable Name Clarified by Lead Name Initiation Date Center Coordinate Environment Onshore/offshore Terrain Adjacent Activity Distance Nearby Field Distance Nearby Infrastructure Adjacent Well Data Porosity P90, P50, P10 Water Saturation (Sw) P90, P50, P10 Year Acquisition Gross ReservoirThickness Net Pay Thickness P90, P50, P10 Area Closure Estimation P90, P50, P10 Page 28 POSTDRILL Prospect Administration Link Play Structure Nama Postdrill Name Clarified by Lead Name Initiation Date Center Coordinate Environment Onshore/offshore Terrain Adjacent Activity Distance Nearby Field Distance Nearby Infrastructure Year Acquisition Gross ReservoirThickness Net Pay Thickness P90, P50, P10 Area Closure Estimation P90, P50, P10 Well Data Well Name Coordinate Well Result Well Type Onshore/Offshore Terrain Well Statues Formation Target Hydrocarbon Indication Oil Show Reading Gas Show Reading Boi (Max Mean Min) Bgi (Max 0- Mean Min) Well Data Clastic/non-clastic Gross Res. Thickness, Res. Vshale, NTG, Porosity, Saturation (P90, P50, P10) GRT, Res. DTC., Res. Total Pore. Porosity, Saturation (P90, P50, P10)

29 Mandatory data requirement for reporting: DISCOVERY Administration Link Play Structure Nama Discovery Name Clarified by Lead Name Initiation Date Center Coordinate Environment Onshore/offshore Terrain Adjacent Activity Distance Nearby Field Distance Nearby Infrastructure Year Acquisition Gross ReservoirThickness Net Pay Thickness P90, P50, P10 Area Closure Estimation P90, P50, P10 Page 29 Well Data Well Name Coordinate Well Result Well Type Onshore/Offshore Terrain Well Statues Formation Target Number Penetrated Production Zone Zone Name Well Test Well Radius Hydrocarbon Indication Oil Show Reading Gas Show Reading Boi (Max Mean Min) Bgi (Max 0- Mean Min) Well Data Clastic/non-clastic Gross Res. Thickness, Res. Vshale, NTG, Porosity, Saturation (P90, P50, P10) GRT, Res. DTC., Res. Total Pore. Porosity, Saturation (P90, P50, P10)

30 Type of Reporting and Schedule: Original reporting must be submitted before 31 Juli every year. Revised reporting must be submitted before end of year. Page 30

Field and working area oil/gas Indonesia: Working Area Map

of neighboring countries Basin with oil production Basin

indication Basin no hydrocarbon discovery yet Basin no

31 Field and working area oil/gas Indonesia: Working Area Map of Indonesia Symbol Country border Land of Indonesia Land of neighboring countries Basin with oil production Basin with hydrocarbon discovery Basin with hydrocarbon indication Basin no hydrocarbon discovery yet Basin no exploration Oil and gas working areas 259 Company Operators Page 31 Report 2014

32 Field and working area oil/gas Indonesia: Page 32 Report 2014

33 Classification of POD (Plan of Development) Plan of Development I Plan of Development I is the first POD in a working area to get the Minister of Energy Approval, by recommendation of SKK Migas, after consulting the local Government. Remarks: This POD marks the changing between a working area from exploration phase into Exploitation/Production Phase Page 33

34 Page 34 Classification of POD

35 Classification of POD Plan of Development II POD II (etc) is the next type of POD from the different reservoir structure at the same working area that has been approved before (POD I). Remarks : This type of POD should/must get approval from the Head of SKK Migas. POD SecRec/EOR is the development of field to produce oil with SecRec/EOR methods. Proposed POD is only contains the production that has same number with the production from that field minus baseline production that is agreed by SKK MIGAS and PSC Company. Page 35

Classification of POFD (Plan of Further Development) POFD is the next plan of development for a field that has been produced in the same reservoir structure, where all of the establishment of

36 Classification of POFD (Plan of Further Development) POFD is the next plan of development for a field that has been produced in the same reservoir structure, where all of the establishment of production facilities and drilling plan that has been approved on the previous POD is done. For some fields that has been produced for a long time with no POD before, if there is a plan for next development, then the POFD is a must. Page 36

First Field, in reservoir X and Y POFD in field P includes Reservoir Z POD II in field R as the second Field in Working

37 Classification of POD Page 37 Field P,Q,R,S is in Working area A Field U and V is in Working area B Field U and Field P have facility that can be used by Field S Field W is in Working Area A and B, it needs utilization POD I in Field P as First Field, in reservoir X and Y POFD in field P includes Reservoir Z POD II in field R as the second Field in Working Area A, After P POP in Field S, using facilities in Field U, or other facilities around it X,Y,Z is the reservoir from field P

38 Reserves for POP and POD/POFD Reserves is calculated from the producing zone. If the predicted production time is limited by contract, therefore reserves calculation is counted untill the contract is over. Reserve Classification that used for POD Proposal is already using the classification for P1, P2 and P3. Reserves Calculation is referring to Iso- HPV (Hydrocarbon pore volume) map or Net Pay. POD Time High Most likely LOW P3 P2 P1 Development Decision Page 38 Data

39 Reserves Calculation for POP dan POD/POFD Reserves that is used to predict the production in POP/POD/POFD Proposal, should enter a risk factor in the calculation. POP (Put On Production) : 90% P1 POD (Plan of Development) : Oil = 90% P1 + 50% P2 Pipe Gas = 90% P1 + 50% P2 LNG = 90% P1, 50%P2 can be used for domestic gas POFD (Plan of Further Development) from Produced Field : Oil = 90% P1 (remain reserves) + 50% P2 Pipe Gas = 90% P1 (remain reserves) + 50% P2 LNG = 90% P1 (remain reserves) Page 39

40 CHANCE OF GETTING ADDITIONAL RESERVES Indonesia still have potentiality to gain additional reserves by: re-activating a number of ancient wells; increasing production from fields with still have low withdrawal rate (WR < 8%) or low recovery factor; Intensify the activities of getting additional reserves from marginal/small fields and brownfields; IOR/EOR Project. Conducting unconventional oil/gas research such as shale gas Page 40

41 CHANCE OF GETTING ADDITIONAL RESERVES Chemical/Sulfactan Steam Flood Chemical/Sulfactan Steam Flood Page 41 Source: SKKMIGAS

42 t h a n k yo u Page 42 Oki@lemigas.esdm.go.id e_yuliastono@lemigas.esdm.go.id zeki_f@lemigas.esdm.go.id Ministry of Energy and Mineral Resources R&D Centre for Oil and Gas Technology Republic of Indonesia LEMIGAS

Exercise 14: Estimating HC Volumes

Exercise 14: Estimating HC Volumes Objective Calculate a first-order estimate of the volume of oil that could be contained in the Alpha and Beta prospects using a simple reservoir volume formula and typical