Introduction To Oil & Gas

Part 1 : Petroleum Exploration

Dr. Deva Ghosh (drdeva@petronas.com.my)

Professor in Geophysics

Head Center of Excellence in Seismic Imaging (CSI)

Ext. 7033

26/05/2014

Prof. Dr. Deva Ghosh: Short Bio • Prof. Dr. Deva Ghosh is a Professor with the Geoscience

Department at the Universiti Teknologi Petronas, a position that he assumed in January, 2011. He is also the Principal Investigator for Seismic Imaging and Hydrocarbon Prediction with the University.

• After acquiring a Bachelor's and Master's degree in Geophysics from Banaras University, Dr. Ghosh continued his education, receiving a PhD in Geophysics in 1971 from Delft University

• With more than 35 years of experience as an academic and Chief Geophysicist, Dr. Ghosh specializes in prospect evaluation, time lapse, processing and other complex geophysical related topics

L0 - Welcome QAB 4093 - Volume Interpretation

World Energy Sources

Malaysia: Primary Energy

Supply in 2011

Top World Oil Reserves (2007)

0

50

100

150

200

250

300

Sau

di A

rabia

Can

ada

Iran

Iraq

Kuw

ait

UAE

Ven

ezue

la

Rus

sia

Liby

a

Niger

ia

U.S

.A.

China

Qatar

Mex

ico

Algeria

Brazil

Kaz

akhs

tan

Norway

Aze

rbad

jan

India

Malay

sia

Re

se

rve

s (

in B

ln b

bls

)

OIL

Total World Oil Reserves Non-

Conventio

nal Oil

World Petroleum Supply OIL

World Oil Supply and Demand

Quarter 1st 2nd 3rd 4th

Supply 89.33 90.4 91.01 90.55

Demand 89.25 89.87 91.05 91.34

Million BOPD 2013

Historical Oil Price OIL

afte

r Edw

ard

s, A

AP

G 1

997

De

cre

as

ing

F

os

sil F

ue

ls

Ne

w T

ec

hn

olo

gie

s

1900 1920 1940 1960 1980 2000 2020 2040 2060 2080 2100

20

40

60

80

100 100 BILLION

Natural

gas

Crude Oil

Solar, wind,

Geothermal

Nuclear Coal

World Energy Demand

Billio

n B

OE

/ye

ar

Fossil Fuels vs. Renewables

Future Prospects of Oil & Gas

Oil

Gas

Coal

Nuclear

Renewable

Proven Global Oil & Gas Reserves

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.

Electricity Usage at Night

SINGAPORE

KL

IPOH PENANG

TRONOH?

National Oil Companies

CNPC CNOOC PETROBRAS PETRONAS PEMEX ONGC PETRAMINA NNPC PETROBANGLA PVDSA GAZPROM

Major Oil Companies

1. EXXON MOBIL 2. Royal Dutch Shell 3. TOTAL 4. B.P 5. Chevron 6. Conoco Phillips 7. Stat Oil 8. REPSOL 9. British Gas

PETRONAS a Fortune 500 Company ** Has interest in 30 countries

44% of Malaysia’s Govt. revenue contributed by PETRONAS

The Earth has a molten interior on which the crust and mantle float

Origin of the Earth

• Formed about 4.5 Billion Years ago by the gradual condensation and cooling of hot cosmic dust to a mass of molten material

• 3 Zones of Different Mechanical Properties :

Core Mantle Crust

The Nebular Hypothesis

Petroleum Consumption: The Long-Term Oil Supply

Challenge OIL

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

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

1) Collision of India plate moving eastward with Asia plate 2) Further Collision with Australia plate moving Northward

60 ma Paleocene

50 ma Early Eocene

40 ma Late Eocene

30 ma Oligocene

20 ma

Early Miocene

10 ma

Late Miocene

0 ma

Present day

60 ma Paleocene

50 ma Early Eocene

40 ma Late Eocene

30 ma Oligocene

20 ma

Early Miocene

10 ma

Late Miocene

0 ma

Present day

Including Malaysia

PETRONAS a Fortune 500 Company ** Has interest in 22 countries

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

44% of Malaysia’s Govt. revenue contributed by PETRONAS

S.E. Asia Basin Geometry

SEG Research Workshop, KL 2008

Satellite View

VARIOUS BASINS

Pacific

Deepwater

Mature

MALAY

SARAWAK SABAH

CONSON

200 KM SUMATRA

Malaysia Oil and Gas Fields

Area Discovered Producing

P.Malaysia 68 28

Sarawak 44 16

Sabah 28 9

Total 140 53

Area Discovered Producing

P.Malaysia 89 9

Sarawak 70 11

Sabah 24 2

Total 183 22

Production Breakdown

PM 42%

Sabah 8%

Sarawak 50%

M’SIA/THAI JOINT DEVELOPMENT

JOINT DEVELOPMENT M’SIA/VIETNAM

Oil and gas fields/discoveries in Malay Basin

Reserves

Production (million barrels)

(billion barrels)

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

(World Ranking)

23rd

14th

Malaysia Oil and Gas

PM 42%

Sabah 8%

Sarawak 50%

Production Breakdown

FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011

4.84 5.16 5.25 5.36 5.46 5.52 5.8 5.86

14.5 14.2 14.66 14.82 14.67 14.66 14.76 14.99

Oil & Condensate Natural Gas

19.91 20.18 20.13 20.18 20.56 20.85 19.34 19.36

FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011

825.8 955 957 950.4 981.9 679 657 627

750.2 735.7 699.1 661 691.6

980 974 987

Production (million barrels)

1576 1690.7 1656.1 1611.4 1673.5 1659 1631 1614

Natural Gas Oil & Condensate

Petroleum System Processes

24803

Petroleum System ElementsPetroleum System Elements

120° F120° F

350° F350° FGenerationGeneration

MigrationMigration

Seal RockSeal Rock

Reservoir RockReservoir Rock

OilOil

WaterWater

Gas CapGas Cap

EntrapmentEntrapment

Source: AAPG Source: AAPG

Trap Styles

Fault

Salt dome

Anticline

Pinch-out

Unconformity

Example of Gas Field in an Oil Field

Corrective Initiative for Domestic Production Decline Reservoir & Field Development Perspective

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

improve recovery factor

From 0.34 to 0.5

EOR/IOR processes (WAG)

find bypass oil by 4D

Deepwater Contribution

Cluster Development strategy

Improving Recovery Factor

Petroleum Economics

5 10 15 20 Years

US $

Graphite Dead Carbon

Tem

per

atu

re

Organic Matter

Fate of Organic Matter

Humic Substances

Kerogen

methane

oil

Wet Gas

Thermally Matured Organic Matter

Dry Gas

1985, P.D.O., Muscat, Oman Geological Field Work: Examining Exposed Rocks To Understand the Subsurface

Source Rock Maturation & Petroleum Generation

• The earth’s temperature increases with depth in the earth’s crust.

• As organic matter is buried, it is heated and transformed into kerogen, oil and gas.

• Most oil is produced between temperatures of 60 and 120 degrees C, at a depth range known as the “oil window”.

Hyd

roge

n In

dex

Oxygen Index

Type I

Type II

Type III

Type IV

LEGEND BARS CO2, H2O OIL WET GAS DRY GAS NO HYDROCARBON POTENTIAL INCREASING MATURATION

Kerogen Maturation – Van Krevelen Diagram

Petroleum System

Malay Basin Inversion Structures

COMPRESSIVE H.C. BEARING ANTICLINES

Basement Controlled

Faulting results into

grabens & half grabens

The Role of Geoscientists: Finding and Monitoring Petroleum Resources

Kikeh Field, Sabah

Angsi Platform, Terengganu

Gas bubbling in water

GEOHAZARD IMAGES MALAYSIAN OFFSHORE

Magic of Seismic in detecting Gas bubbling in water

MALAYSIAN OFFSHORE HAZARD

(GAS BUBBLING NEAR PLATFORM)

SINKING OF DRILLING RIG DUE TO GAS HAZARD

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

1 2

3 4

Blown-out Macondo Well

Deep Water Platform Horizon

Blow-out Preventer

Drilling a Deep Water Well

Recent Gas Discoveries Since 2010

Malaysia: Gas Demand

Planning Block

Acquisition Frontier

Exploration Prospect

Evaluation Drilling

Discovery Volumes Appraisal Reserve & Economic

Reservoir Static Model

Simulation Production

Forecast

PVT RFT DST

Development Plan

Infill Drilling

LIFE OF FIELD

Exploration

Appraisal

Field Development

EOR FLOODING INJECTION SECONDARY

RECOVERY

PRODUCER & INJECTOR

Secondary Recovery

The Seismic Experiment Interaction of Geology & Geophysics

SEISMIC SOURCE GEOLOGICAL

STRUCTURE

Courtesy GX Technology

Depth

Km

Malaysia: Gas Reserves

Future Prospects of Oil & Gas