INTRODUCTION TO OIL & GAS

Part 1 : Energy
UTP Course For Beginners
Dr Deva Ghosh
Professor in Geophysics
Head Center of seismic Imaging ( C.S. I )
14/1/2013

World Energy Sources

Future Prospects of Oil & Gas

Oil
Coal
Gas
Renewable
Nuclear

Power Balance : Fossil Fuel Reserves

LEGEND BARS
OIL
GAS
COAL
ENERGY USAGE

Electricity Usage at Night

Power Map : The colour-coded image of the Earth at

night shows the use of electricity for Lighting is
concentrated in industrialized regions(yellow)
The red parts correspond to oil flares.

Historical Development Wells Drilled in Malaysia

Countries With Natural Oil Reserves Greater Than 3 BSTB

Countries With Natural Gas Reserves Greater Than 20 TSCF

World Wide Distribution of Natural Gas Reserves

G.O.M. Offshore Platforms in Deepwater

PETRONAS CARIGALI SDN BHD (PCSB)

ACREAGE HOLDINGS
PCSB and Joint Ventures Operated Blocks

Aral Sea PSA

(CNODC)
Baisun
Investment
(Petronas)
Surkhanski
(Petronas)

Block 1
(Petronas
)

Mauritania Ta 11 & Ta 12
(Woodside M/Baraka MV)

XATL
Blocks N44, N45,
N50 & N51
(Petronas)

North Siri Krir Deep

(BG/Petronas)
Block 401c
(Amerada/Petronas)

Mauritania Block 7
(Dana/Wintersh/Hardman/
GDF UK/Rock Oil)
Mauritania PSC C
- Block 6
(Woodside M/Hardman/
Energy AMR/Dana/Rock Oil)
Mauritania Area B
- Blocks Deep 4 & 5
(Woodside M/Hardman/
Kufpec/Premier/Rock Oil)
Mauritania Area A
- Blocks 3,4 & 5
(Woodside M/Hardman/
Kufpec/Premier/Rock Oil)

XMEA

Nemed Block
(Shell EGDW/Petronas)

Rabat Sale
(Petronas/OMHYM)

El Burg
(BG/Petronas)

South Pars
Phase 2 & 3
(SPGC)

WDDM
(Burullus)

Block 4
(Kerr
Mc/Kosmos
Block OPL 320
EN/Petronas)
(Pioneer320/Orant
o/
Orandi)
Block PH 77

(Phillips/Petronas)

Block P, Rio Muni

(Ocean/Petronas/
GePetrol/Atlas Pet/DNO)
Block 24
(Ocean AO/Sonangol P/
Petronas/Tullow)

(WNPOC/ONDC
VDS/SUDAPET)
Blocks 5b
(WNPOC/Lundin/
ONDC VDS/
SUDAPET)

XAFR

Blocks 102 & 106

(Petronas/PIDC/A
T Tech/SPC Viet)

Mehar
(Petronas/OP
I/
GovtDaphro
PK/Zaher)
(Petrona

Block 15
(RSPOC/
Express/Sudapet)
Chad Permit H
Block 8
(Esso/Petronas/
(WNPOC/Sudap
Chevron)
et/High Tech
Blocks 3 &
7
(PETRODA
Blocks
1,2 &
4 R)
(GNPOC)
Blocks 5A

s)

Welwel &
Warder
- Blocks 17 & 20
(Petronas)

Block 122
(Petrona
s)
Blocks 01 & 02
(Petronas/PV
EP)
Blocks 01/97 &
02/97
(Petronas/PVEP/LSJ
Blocks
10 & 11-1
OC)
(PIDC/Petronas/CSJ

Mubarak
-Block 20
(Petronas/E
NI/Govt PK)
Blocks
M12, M13, &
M14
(Petronas/MOGE
/
Blocks B-17-01/
PTTEPI/NOEX
Muda/Amarit/Jeng
MY/ Premier
ka/Jengka East/
MY)
Jengka West/Jengka
South/Mali/ Tapi
(PTTEPI/Petronas/
CPOC)
Blocks Samudra/
Samudra North/
Senja/Bulan/
Natuna SEA Block A
Cakerawala/Suriy
(Kufpec/Premier
a/Bumi/Bumi
NT/ Amerada
East/Wira
NT/Petronas)
(Petronas/Hess
Jabung
JDA/Hess
(Petronas/Petchin
Oil/Choc)
JB/ Pertamina)

Danan &
Gorrahei
- Blocks 11 & 15
(Petronas)
Calub
& Hilala

Gambela
- Block G
(Petronas)

Blocks 103 & 107

(PIDC)

Fields
Kelafo (CGSC)
- Blocks 12 & 16
(Petronas)
Genale
- Blocks 3 & 4
(Petronas)

Evans Shoal
- NT/P48
(Shell/Santos
Off/Osaka
Gas)

XSEA
Randugunting
(Pertamina/PV
EP/Petronas)

Lampung II
(Petronas)

Blocks 3 and 6
Rovuma Basin
(PCMRB/ENH)

Cai Nuoc - BlockOC)

46
(Petronas/Talism
an/PIDC)

XMAS

Madura
Offshore
(Santos MD/
Petronas)

JPDA 06-102
(Petronas/Koga
s/LGI/Samsung
)
Block
AC/RL8
(BHP/Encan
a)

Zambezi Delta
(Petronas/EN
H)
Blocks ND 1, ND 2 & ND
3
(PCSB)

Block PM
2
(PCSB)
Block PM 6
(PCSB)

Deepwater ND 4 & ND 5
Blocks
(PCSB)

Block SB 305
(PCSB)

Block PM
318
(PCSB)Block PM
309
(PCSB)

Prepared/Compiled by: XBS Dept. XD

Data Source from IHS Energy/XPL Dept

Date Updated: November 2008

Block PM
12
(PCSB)

Block SB 312
(PCSB)

XMAS

Blocks PM
306/307
(PCSB)

PETRONAS OPERATION WORLDWIDE

Tembungo
(PCSB)

Block SK
307
(PCSB)
Balingian PSC
Blocks
(PCSB)

Block SK 305
(PCPP Joint Operating
Co/ PCSB)

Samarang/Asam Paya
(PCSB)

Blocks ND 6 & ND 7
(Petronas/Shell JV)

PETRONAS a Fortune 500 Company **

Has interest in 30 countries

TOP TEN **
@ Profit
@ Return in
Asset &
Revenue

44% of Malaysias Govt.

revenue contributed by
PETRONAS

Including Malaysia

Malaysia Oil and Gas Fields

MSIA/THAI JOINT
DEVELOPMENT

JOINT DEVELOPMENT
MSIA/VIETNAM

Production Breakdown
Sabah
8%

PM 42%

Area

Discovered

Producing

[Link]

68

28

Sarawak

16

Sabah

28

Total

140

53

Sarawak 50%

Malaysia Oil
and Gas

Production Breakdown
Sabah
8%

Reserves

PM 42%

(billion barrels)

Sarawak 50%

Reserve ( B.O.E )
(billion barrels)

Production
(million barrels)
19.34

19.36

19.91

20.18

14.5

14.2

14.66

14.82

20.13 20.18 20.56 20.85

14.67

14.66

14.76

14.99

1576
4.84

5.16

5.25

5.36

5.46

5.52

5.8

5.86
750.2

1690.7 1656.1 1611.4 1673.5 1659

735.7

699.1

955

957

661

691.6

950.4

981.9

980

1631
974

1614
987

FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011

825.8

Oil & Condensate

Natural Gas

679

657

627

FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011

23rd (World Ranking)

14th

Corrective Initiative for Domestic Production Decline

Reservoir & Field Development Perspective
To compensate for Domestic Oil decline by
corrective measures in Field
Development

Improving Recovery Factor

improve recovery factor

From 0.34 to 0.5
EOR/IOR processes (WAG)
find bypass oil by 4D
Deepwater Contribution
Cluster Development strategy

Oil Production (000 bpd)

Malaysia* Oil Production-Historical

19774-1993: Concentration on onshore
and broad Continental shelf development

Mid 1990s : Oil

Production peaked

700
600
500
400
300
200
100
0
1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010

Oil and gas fields/discoveries in Malay Basin

Geological History of The Earth

Geological
Period

PAST

PRESENT

Shifting Continent

Alfred Waegner Theory of

Continental drift
Based on matching Coast line.
However he said
Geological studies has to
give the evidences

S.E. ASIA BASIN EVOLUTION EARLY EOCENE (~55 MA) TO Curreny

ma
00ma
60
40
ma
10
30
30
ma
50
20
20
ma

Late
Paleocene
Eocene
Oligocene
Oligocene
Late
Eocene
Early
Eocene
Early
Eocene
Late
Miocene
Late
Miocene
Early
Early Miocene
Miocene
Present
day
Present
day

1) Collision of India plate moving eastward with Asia

plate
2) Further Collision with Australia plate moving
Northward

Modified. from Scotese and PALEOMAP (2005) Courtesy Harry Doust

Delta Satellite Images

Mekong Delta, Thailand

Mahakam Delta, East

Kalimantan, Indonesia

Niger Delta, Nigeria

Bay of
Bengal, India

Ganges Delta, India

DELTA IMAGES

Turkmenistan
Delta

Ural Delta,
Kazakhstan

S.E. Asia Basin Geometry

Satellite View

Pacific
Deepwater
Mature

VARIOUS
BASINS

CONSON

MALAY
SARAWAK
SUMATRA

SABAH

200 KM

SEG Research Workshop, KL 2008

Malay Basin Geology

Malay basin is a prolific

Petroleum Tertiary basin that
has seen four decades of
extensive E & P activity.
It is an extensional deep
(12Km) mature, NW trending
basin. With dimension 500 X
200 sq km
Exploration is focused in
Miocene stratigraphic. Units
called Group E to K .
Youngest to oldest.
Courtesy PETRONAS

S.E. Asia Basin Geometry

Petroleum System Processes

Gas
Cap
Oil

Entrapment

Water

Seal Rock
Reservoir
Rock

Migration
120 F

Generation

350 F
2480

Source: AAPG
Source:
AAPG

Example of Gas Field in an Oil Field

LIFE OF FIELD
[Link]
Block
Acquisition

Planning

Frontier
Exploration

Prospect
Evaluation

Drilling

2. Appraisal
Discovery

Volumes

Appraisal

Reserve &
Economic

3. Field Development
Reservoir
Static Model

Simulation

PVT
RFT
DST

Production
Forecast

Development
Plan

4. Production
5. Secondary Recovery
EOR

6. Abandonment

FLOODING
INJECTION

SECONDARY
RECOVERY

PRODUCER &
INJECTOR

Infill
Drilling

THE G & G LINK

GEOLOGY

SEISMIC
DATA
ACQUISITION
VIBROSEIS

*
SEISMIC DATA

SOURCE

Subsurface is explored by exciting the earth by a SOURCE like , Dynamite or VIBROSEIS.

This creates a seismic wave that enters the subsurface and is returned to the surface by
the Reflection process in the form of a Seismic Response, that is recorded on the surface
by a sensor ( geophone/hydrophone)
29

LIFE OF FIELD
EXPLORATION / APPRAISAL / DEVELOPMENT / PRODUCTION.

GEOLOGY
Outcrops
Basin Study
Sequence Strat
Geochemistry
Structural Geology
Sedimentlogy
Biostratigraphy

GEOPHYSICS
Seismic Acquisition
Seismic Processing
Seismic Interpretation
Seismic Evaluation
Rock Physics

OTHERS
Gravity magnetic
Positioning
Remote Sensing
Core & Sidewall
Sample
Pressure
Wire line Log

Integrated G&G Studies

DRILLING
30

ALLIED DISCIPLINES
INFLUENCING G & G

PETROLEUM
RESERVOIR
ENGG.

PETROPHYSICS

G&G

COMPUTER
TECHNOLOGY

DRILLING

PETROLEUM
ECONOMICS

Carbonate G @ G Link
PSTM Stack Line 1990

Seismic

Outcrop

32

DEEPWATER SUBMARINE FAN

MODELS

- sandy channels confined by

muddy levees
33

DEEP WATER TURBIDITE

SEDIMENT TRANSPORT

34

DEEPWATER IMAGES
Brazil

West Nile Delta

Courtesy Enterprise Oil/Shell

West Africa

Line 3

Courtesy BG plc
Courtesy BP
500m

35

SUMANDAK BURIED HILL PLAY

DEPOSITIONAL MODEL
N
N

SB3
SB2
SB1

FS1
TS2

TS1
FS1
TS2

TS1

Deposition of sand during high stand

Truncation during low stand event
N
SB4
SB3
SB2
SB1

IVC

IVA

SEAL?
FS1
TS2

TS1

Overlain by clay during subsequence transgressive event

36

SUMANDAK COMPLEX
TIME
STRUCTURE

AMPLITUDE
MAP

SEISMIC

37

START

END

ACQUISITION
SYSTEMS

Structure
Velocity
Rock, Fluid, Lithology
t

WAVELET
RECOVER
GEOLOGY

EARTH PROPOGATION
EFFECT
t
CONVOLVE
EARTH MODEL
Vp, Vs,
Porosity
Structure
Saturation

INVERSION

MODELLING

FORWARD & INVERSE SEISMIC

PROBLEM

DECONVOLVE

SEISMIC RESPONSE
38

EOR Application in Malay Basin

EOR CHALLENGES
1) Production comes from offshore fields
where EOR is challenging and expensive.
2) Well spacing is coarse at 1000ft to 3000ft.
3) Many wells are deviated
4) Facilities are ageing 20 years or older.
5) 5) The reservoirs are complex, and compartmentalized.
6) Fields are mature and reservoirs depleted.
7) Oil is light with API around 45 degrees.
8)Reservoir temperatures are high

39

GEOHAZARD CLASSIFICATION
FLOWCHART
SHALLOW GAS
FLUID EXPULSION
MUD VOLCANOES
POCKMARKS
GAS HYDRATES
B.S.R.

SHALLOW WATER FLOW

SAND FLOW
FISSURES
CRATERS

GEO-HAZARD
CLASSIFICATION
OVER-PRESSURES
BLOW-OUT

SLUMPING
LANDSLIDES
FAULTS GORGES
INSTABILITY

GEOHAZARD IMAGES
GAS CHIMNEY

GEOHAZARD IMAGES
MALAYSIAN OFFSHORE

Gas bubbling in water

Magic of Seismic in detecting Gas bubbling in water

MALAYSIAN OFFSHORE HAZARD

(GAS BUBBLING NEAR PLATFORM)

SINKING OF DRILLING RIG

DUE TO GAS HAZARD
1

Gas escape causes Seawater density to drop resulting in the Platform to sink

Improving Pore Pressure Prediction

Thermal Effects
New Prospect
P-T Gradient = 0.5-1.0 Mpa/C

Pore Pressure Prediction

In the Malay basin

Pressure (ppg, MWE )

7.0

12.0

17.0

22.0

2000

2500

Top of Overpressure

Depth (m)

3000

0
Tangga-2
Bujang-2
Bujang-3A

-200
-400

Bujang-4
Sepat-1
Sepat-2

Noring-2
[Link]
Melor-1

Inas-1
Guling-1
Melor-2

Seismic Prediction

3500

Trend Estimation

Hard Overpressure

-600

4000

-800
-1000
-1200

4500

Thermal Effects Included in Trend

Generation
5000

-1600

Onset of Overpressure

-1800

Lith
osta
tic S
tres
s

-2000
-2200
-2400

P-T Gradient = 0.5-1.0 M pa/C

20
ppg

-2600
-2800

Expected High Pressure Zones

-3000
-3200

14
pp
g

11

13

15

17

19

21

1500

16
pp
g

g
pp

-3800

g
pp

g
pp

-3600

12

10

33
8.

-3400

Pressure (ppg, M WE )

18
pp
g

1700

-4000
1900

0
0

1000
500

2000
1500

3000
2500

4000
3500

5000
4500

6000
5500

7000
6500

8000
7500

9000
8500

10000
9500

Pressure (psi)

2100

Depth (m)

Depth (m TVDSS)

-1400

2300

2500

2700

2900

Thermal Effects Included

in Trend Generation

Perfect Match with Observed

pressure (green) in Well Trend

Perfect Match with Observed

pressure (green) in Well Trend
Courtesy P RSB-UTP