Summary PresentationJanuary 2003

Present Day and Paleo Hydrodynamicsof the Marañon Basin, Peru

Impact on Oil Migration, Oil Quality and Trapping, Implications for Exploration and Production

Acknowledgements - Funding and Support

This project was conducted byRakhit Petroleum Consulting Ltd.

for thePeru Energy Regulatory Assistance Project (PERAP),Canadian Petroleum Institute (CPI)

with generous funding from theCanadian International Development Association (CIDA)

Objectives

1. Study influence of hydrodynamics on the

migration and preservation of oil in the basin.

2. Map paleo and present oil migration fairways to

identify prospective areas for future exploration.

Outline

1. Petroleum Geology

2. Paleo Hydrogeology and Dynamic Oil Migration

3. Hydrogeology and Dynamic Oil Migration

4. Conclusions

Location MapMarañon Basin, Peru

A

A’

200 km

Present Day Structural Cross-SectionMarañon Basin - Santiago Basin

Cross-section supplied by:

Stratigraphic Column and Tectonic EventsPeru

From Mathalone and Montoya, 1995OIL GAS SOURCE ROCK

Salt

Tectonic Events

MADRE deDIOSUCAYALIMARANON/

SANTIAGO

South MarañonSource

Main Reservoir

North MarañonSource

Evaporites

Pressure versus Elevation GraphMarañon Basin, Peru

-18,000

-16,000

-14,000

-12,000

-10,000

-8,000

-6,000

-4,000

-2,000

0

0 2,000 4,000 6,000 8,000 10,000

Pressure (psi)

All DataCushabatayAgua CalienteChontaVivian

Regional Water Gradient

Elev

atio

n (ft

)

Pressure versus Elevation GraphMarañon Basin, Peru

-18,000

-16,000

-14,000

-12,000

-10,000

-8,000

-6,000

-4,000

-2,000

0

0 2,000 4,000 6,000 8,000 10,000

Pressure (psi)

Elev

atio

n(ft

)

All DataVivian

Regional Water Gradient

1. "Paleo" Recharge

2. Flow Convergence

3. Present Day Recharge

Late Migration

Eocene Migration

Migration HistoryVivian Formation, Marañon Basin, Peru

Whole crude gas chromatograph of oil from the Cretaceous Vivian Formation in the Jibaro Field,Marañon Basin (GeoMark, 1997). The hydrocarbon fraction to the right of C15 is highlybiodegraded. A later phase of migration is indicated by presence of nonbiodegraded C1 to C15hydrocarbons.

After Higley, 2001.

Burial History GraphChonta Paleo Kitchen, Marañon Basin, Peru

After PeruPetro, 2002.

Location of Modelled Wells and Pseudo Wells

Chonta Entering Paleo KitchensSantiago Basin

Maturity versus Time Graph in Piuntza IX in the Central Santiago-Nieva Tectonic Depression

Summary Petroleum SystemsMarañon Basin, Peru

Pliocene

Miocene

Oligocene

Eocene

Paleocene

LateCretaceous

10

20

30

40

50

60

Pozo Sand

Pozo Shale

Chonta

0 2nd PhaseLate Pliocene - Recent Kitchen

1st PhaseLate Cretaceous -

Middle EoceneKitchen

InversionQuechua

InversionIncaic(Start

CutucuUplift)

InversionPeruana

Middle Eoceneand olderstructures

Late Mioceneand younger

structures

MIG

RATIO

NR

E-MIG

RATIO

N

Ma

JurassicPucara

Triassic210

Trapping of "New" Oil

and Re-migrated

"Old" Oil

Paleo-Trappingand Local

Biodegradationof "Old" Oil

Pozo Time MigrationSouthern Marañon Basin, Peru

Present Day MigrationNorthern Marañon Basin, Peru

Recoverable Oil ReservesMarañon Basin, Peru

1975

1974

1981

1982

1978

1972

1989

1974

1973 73 73 7 8

119

719

7319

7319

7819

7319

7819

8119

74

1975

1974

1977

1974

1972

1974

1975

1971

1974

1972

1971

19 19 197

197

1972

Tam

boS

ur

Corrientes

San

Jaci

nto

Pav

ayac

uC

ham

bira

E.

Bar

traFo

rest

al

Shi

viya

cuC

apah

uari

Sur

Hua

yuri

S.

Dor

issa

Cap

irona

Vale

ncia

/Neu

vaE

sper

anta

Yana

yacu

Cec

i

Capahuari SurS

hivi

yacu

Dor

issa

Fore

stal

San

Jaci

nto

Jiba

rito

Bre

tana

Sam

iria

Sur

Jiba

ro

Hua

yuri

S.

Bar

traP

avay

acu

Yana

yacu

Vale

ncia

/Neu

vaE

sper

anta

Cor

rient

esC

arm

en

Cap

ahua

riN

orte

Cor

rient

es

0

20

40

60

80

100

120

140

160

MM

BO

REC

OVE

RA

BLE

TenaVivianChontaCushabatay

Shi

viya

cu L

ook-

alik

e?D

oris

sa L

ook-

alik

e?Fo

rest

al L

ook-

alik

e?S

an J

acin

to L

ook-

alik

e?

Possible UndiscoveredChonta Oil Fields

Total 734 MMBO: 50 % in 3 Fields62% in Vivian, 37% in Chonta

(Data from Mathalone and Montoya, 1995).Recent discoveries in Block 67 (Dorado, Paiche, Piraña) not included.

Oil GravityVivian Formation, Marañon Basin, Peru

8°

78° 77° 76° 75° 74° 73°

78° 77° 76° 75° 74° 73°

7°

6°

5°

4°

3°

2°

8°

7°

6°

5°

4°

3°

2°

0 100 km

46

42

38

34

30

26

22

18

14

10

Oil Gravity ( API)°

Colombia

Brasil

Ecuador

Peru

Peru

Peru

Outline

1. Petroleum Geology

2. Paleo Hydrogeology and Dynamic Oil Migration

3. Hydrogeology and Dynamic Oil Migration

4. Conclusions

Petroleum Hydrogeology of the Marañon BasinEarly Tertiary - Pozo Time (~40 Ma)

ECUADOR

PERU

Freshwater RechargeP OZO SE A

PR OTO CUT UCUUP LIF T

PRO TO ANDE AN UPL IFT Major Molasse Source Area

N

OIL WIN D OW

S

S

WesternOil Kitchen

Salt Dissolution

Extensive PaleoBiodegradation c. 65 Cº

Sediment LoadCompaction

F

F

Tect

onic

C

ompr

essi

on

PAL

JU-TR

PZ

K PE

CUSHCHON

VIV

Before Quecha Inversion = Western Oil Kitchen

Sea Level

SA NTI AGO BAS IN

PLIOMIOPALKVIVCHON

CUSHJUTRPZPE

Pliocene

Miocene

Paleocene

Cretaceous

Vivian Ss

Chonta

Cushabatay

Jurassic

Triassic

Paleozoic

Precambrian

Driving Forces

for Brine Flow

in the West

Freshwater Flow

Brine Flow

Oil Migration

Fault Conduit Source Rock

EWVI VIA N U PLA NDS

Paleo - StructureVivian Formation, Marañon Basin, Peru

8°

78° 77° 76° 75° 74° 73°

78° 77° 76° 75° 74° 73°

7°

6°

5°

4°

3°

2°

8°

7°

6°

5°

4°

3°

2°

0 100 km

N

0

-200

-400

-600

-800

-1,000

-1,200

-1,400

-1,600

-1,800

Colombia

Brasil

Ecuador

Peru

Peru

Peru

Structure (m)

Paleo - Hydraulic HeadVivian Formation, Marañon Basin, Peru

N

8°

78° 77° 76° 75° 74° 73°

78° 77° 76° 75° 74° 73°

7°

6°

5°

4°

3°

2°

8°

7°

6°

5°

4°

3°

2°

0 100 km

800

700

600

500

400

300

200

100

0

Hydraulic Head (m)

Colombia

Brasil

Ecuador

Peru

Peru

Peru

Paleo FlowConvergence

Water Flow

Paleo - Water SalinityVivian Formation, Marañon Basin, Peru

N

8°

78° 77° 76° 75° 74° 73°

78° 77° 76° 75° 74° 73°

7°

6°

5°

4°

3°

2°

8°

7°

6°

5°

4°

3°

2°

0 100 km

220,000

200,000

180,000

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

Colombia

Brasil

Ecuador

Peru

Peru

Peru

Water Salinity (mg/L)

Paleo - Oil MigrationVivian Formation, Marañon Basin, Peru

N

8°

78° 77° 76° 75° 74° 73°

78° 77° 76° 75° 74° 73°

7°

6°

5°

4°

3°

2°

8°

7°

6°

5°

4°

3°

2°

0 100 km

Colombia

Brasil

Ecuador

Peru

Peru

Peru

Summary Paleo - Oil MigrationVivian Formation, Marañon Basin, Peru

N

8°

78° 77° 76° 75° 74° 73°

78° 77° 76° 75° 74° 73°

7°

6°

5°

4°

3°

2°

8°

7°

6°

5°

4°

3°

2°

0 100 km

Oil Charged Fairways

Paleo Accumulation

Colombia

Brasil

Ecuador

Peru

Peru

Peru

Outline

1. Petroleum Geology

2. Paleo Hydrogeology and Dynamic Oil Migration

3. Hydrogeology and Dynamic Oil Migration

4. Conclusions

Petroleum Hydrogeology of the Marañon BasinLate Pliocene (c. 5 Ma) - Present

EW

Sea Level

ECUADOR

PERU

N

S

S

OIL WINDOW

S

SA NTI AGO BAS IN

CU TUC U U PLI FT

CO RDI LLE RA RE AL

Strong Freshwater Recharge

Weak 'Paleo' Water Flowc. 65 Cº

No Present DayBiodegradation

(Reservoirs Too Hot)

BASE PLIOMIOPALK

PLIOMIOPALKVIVCHON

CUSHJUTRPZPE

Pliocene

Miocene

Paleocene

Cretaceous

Vivian Ss

Chonta

Cushabatay

Jurassic

Triassic

Paleozoic

Precambrian

Driving Forces

for Brine Flow

in the West

Freshwater Flow

Brine Flow

Oil Migration

Fault Conduit Source Rock

StructureVivian Formation, Marañon Basin, Peru

N

8°

78° 77° 76° 75° 74° 73°

78° 77° 76° 75° 74° 73°

7°

6°

5°

4°

3°

2°

8°

7°

6°

5°

4°

3°

2°

0 100 km

0

-1,000

-2,000

-3,000

-4,000

-5,000

Colombia

Brasil

Ecuador

Peru

Peru

Peru

Structure (m)

Hydraulic HeadVivian Formation, Marañon Basin, Peru

N

8°

78° 77° 76° 75° 74° 73°

78° 77° 76° 75° 74° 73°

7°

6°

5°

4°

3°

2°

8°

7°

6°

5°

4°

3°

2°

0 100 km

400

360

320

280

240

200

160

120

80

40

0

Hydraulic Head (m)

Water Flow

FlowConvergence

Colombia

Brasil

Ecuador

Peru

Peru

Peru

Water SalinityVivian Formation, Marañon Basin, Peru

NColombia

Brasil

Ecuador

Peru

Peru

Peru

8°

78° 77° 76° 75° 74° 73°

78° 77° 76° 75° 74° 73°

7°

6°

5°

4°

3°

2°

8°

7°

6°

5°

4°

3°

2°

0 100 km

200,000

180,000

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

Water Salinity (mg/L)

Oil MigrationVivian Formation, Marañon Basin, Peru

NColombia

Brasil

Ecuador

Peru

Peru

Peru

8°

78° 77° 76° 75° 74° 73°

78° 77° 76° 75° 74° 73°

7°

6°

5°

4°

3°

2°

8°

7°

6°

5°

4°

3°

2°

0 100 km

Summary of Oil Migration and Re-MigrationVivian Formation, Marañon Basin, Peru

N

8°

78° 77° 76° 75° 74° 73°

78° 77° 76° 75° 74° 73°

7°

6°

5°

4°

3°

2°

8°

7°

6°

5°

4°

3°

2°

0 100 km

Remigrated Paleo Oil Charged Fairways

Paleo Oil Accumulation

New Oil Charged Fairways

Gas Charged Fairways

Colombia

Brasil

Ecuador

Peru

Peru

Peru

Heavy Oil

Light - Medium Oil

Present Oil Accumulation

Updip Flushing Risk

Downdip Flushing Risk

Gas Lost to Outcrop

Tilted Oil/Water ContactsVivian Formation, Marañon Basin, Peru

N

Updip Flushing Risk

Downdip Flushing Risk

8°

78° 77° 76° 75° 74° 73°

78° 77° 76° 75° 74° 73°

7°

6°

5°

4°

3°

2°

8°

7°

6°

5°

4°

3°

2°

0 100 km

28

24

20

16

12

8

4

0

Colombia

Brasil

Ecuador

Peru

Peru

Peru

Heavy Oil

Light - Medium Oil Tilt (m/km)

Tilted Oil/Water Contact, Shiviyacu FieldVivian A Sand, Marañon Basin, Peru

-8670 ft.

-8560 ft.

8.6 km

OWC Tilt3.9 m/km SE Cross-section supplied by:

Predicted Tilted Oil/Water ContactsLoreto Dome, Marañon Basin, Peru

Cushabatay Sandstone

Vivian Sandstone

Loreto 1X

200

100

-1000

-2000

-3000

-4000

C

-5000

80 180

16060 120

14020 40

0

Distance (km)

Elev

atio

n (m

)

Vertical Exaggeration = x 20

7 m/km (40ºAPI)

17 m/km (15ºAPI)

6 m/km(40ºAPI)

16 m/km(15ºAPI)

C’

Cushabatay Tilts

Vivian Tilts

ShaleChonta LimestoneShale

Dow

ndip Flow

Downdip Flow

Loreto Structure Prognosis

Despite the 1X well being wet, there is potential for hydrodynamic trapping on the northeast flank of theLoreto Dome. Given the immense size of the structure (2 km of closure and 50 km wide) the reservestrapped could be considerable. Calculations for 40º API, with a predicted oil/water contact tilt of 7 m/km inthe Cushabatay, indicate that over a billion BBls of oil could be trapped. Reservoir quality and oil chargeare serious risk factors.

Outline

1. Petroleum Geology

2. Paleo Hydrogeology and Dynamic Oil Migration

3. Hydrogeology and Dynamic Oil Migration

4. Conclusions

Conclusions

1. The basin is hydrodynamically active due to outcrop

of major aquifers at high elevation in Andes Foothills.

2. Main Vivian reservoir contains oil fields with oil/water

contact tilts up to 15 m/km.

3. The southern basin received only paleo oil charge.

Three narrow re-migrated oil fairways with potential

tilted accumulations are mapped.

Conclusions

4. The northern basin received both paleo and present

day oil charge. Four broad oil fairways with potential

accumulations exist.

5. A major hydrodynamic trap may exist downdip of the

shelf edge in the northern basin.

6. Biodegradation was widespread during paleo-time but

is limited to the shallow basin margins today.

Project Availability

This study, “Present Day and Paleo Hydrodynamics of theMarañon Basin, Peru,” is available in paper or PDF format,for a modest copy charge.

Please contact Rakhit Petroleum Consulting Ltd.

Calgary, Alberta, Canada

info@rpcl.com

(403) 264-4466