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Berlian Field Database Block 1

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E & P
CORE BUSINESS PROCESS
&
ENVIRONMENT

CASE STUDY








BERLIAN FIELD
DATABASE
(Block 1)


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CONTENTS Page No

Block 1


1. INTRODUCTION

2. SUMMARY

3. BACKGROUND INFORMATION

4. FIELD DISCOVERY AND EARLY APPRAISAL

5. PRODUCTION GEOLOGY

6. PETROPHYSICAL DATA

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1. INTRODUCTION

This data set will provide you with the background information on an existing
hydrocarbon accumulation which is typical of an oil field development opportunity in
Malaysia.

By using actual field data you will be able to experience the realities of project
development and to apply and test the knowledge gained during lectures. A case study
provides the opportunity to see the interactions and relationships of all of the disciplines
involved and to understand the sequence of events throughout a field life cycle. In
particular, you will see how the contributions of the technical disciplines are linked to the
business objectives. At this juncture you are to note well that every single costs
expended (known as investments) will impact your project economics, namely, the
UDC. Therefore prudent spending should be exercised. Sound technical justifications as
well as the Value Creations expected from your field appraisal/development activities
must be demonstrated prior to executions.


Practices described in this brief reflect methods and technology recently applied in
PETRONAS operation. However, we encourage you to challenge the existing practice,
to develop alternative options if appropriate, and to investigate how new technologies
could improve the economics of your project.

Just as in reality, you would be working with limited data. Such limitations would give
rise to uncertainties; and the most profound in this case is in the hydrocarbon volumes
and their distributions. These uncertainties in turn, would eventually translate into risks
to your project economics. You would have the opportunity to strike a balance between
remaining acceptable risk levels versus expenditures Additional information may be
required before the available data can be meaningfully applied to your project.
Therefore, this data base will be supplemented during the course by additional data and
you will generate extra information as you progress through the exercises.

It is essential that you have a thorough knowledge of the data contained in this
document and we recommend that you spend some time familiarizing yourself with the
material.

General information can be obtained from the participants manual. Additional specific
information may be available from the instructors in the form of short lectures,
consultancy, videos or written reports. Please make sure that you have discussed within
your team the specific information you require and its relevance to your project.
Wherever possible, certain critical points relevant to your exercise will be highlighted.

In addition to raising the level of your technical and business skills, this course will allow
you to test and improve your skills related to planning, communication, presentation and
team working.

We wish you an enjoyable course and every success in your new business venture.

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2. SUMMARY

The Berlian East structure, offshore the east coast of Peninsular Malaysia is being
considered for development.

A total of four wells (exploration and appraisal wells included) have been drilled to date.
Based on seismic and well information for the Miocene reservoir sequence, options for
field appraisal, development and subsequent production management need to be
evaluated.

The present knowledge of the field indicates that the economics for development are
marginal. However, it is considered that the economics can be improved by including
the existing regional infrastructure into a development scenario.

Field development will have to take into account of the prevailing fiscal framework and
Production Sharing Contract (PSC) agreement.
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3. BACKGROUND INFORMATION

3.1 Location and Infrastructure

The Berlian East Field is located some 25km offshore Peninsular Malaysia (Figure 3.1)
in a water depth of 76m. Several other nearby fields are being produced under separate
production sharing contracts (PSCs) with PETRONAS.

The nearest developed field is Berlian, approximately 20 km northwest of Berlian East.
This producing field, which has just come on stream, has the following infrastructure:

- three 24 slot drilling platforms
- one CPP (Central Processing Platform) comprising :
- production module (60 Mstb/d)
- water injection module (120 Mstb/d)
- gas compression module (50 MMscf/d)
- accommodation module (80-men)

Table 3.1 shows the forecast production profile for Berlian.

Year Oil Production
(Mstb/d)
Gas Production
(MMscf/d)
1 3.5 1.5
2 (current) 48.8 21.4
3 58.6 26.5
4 58.6 27.3
5 48.1 23.3
6 32.3 16.2
7 25.4 13.1
8 20.7 10.9
9 16.6 9.0
10 13.6 7.6
11 11.9 6.7
12 9.9 4.7
13 8.5 3.8
14 7.6 3.4
15 6.9 3.0
16 6.0 2.6
17 5.0 2.2
18 4.1 1.8
19 3.1 1.4
20 1.6 0.1
Table 3.1: Berlian Field Production Forecast
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A terminal is located onshore near Pekan, approximately 29 km from the Berlian East
field. The function of the terminal is to act primarily as a tank farm. There are pipelines
from the Berlian development to the terminal. Additional crude storage is available at the
terminal but an increase in crude throughput would require the upgrading of the
existing process facilities. Gas market is available onshore.

Crude is exported from the Pekan terminal in the following ways:
- through an onshore pipeline to a refinery
- By tanker loading from an SBM system.


3.2 Company History

Your project team is part of the technical function in your company which was given the
contract to operate the field under the PSC. Your company is as a contractor to
PETRONAS.

PETRONAS (Petroliam Nasional Berhad) was formed in 1974 to act as the government
instrument to take charge of petroleum matters. PETRONAS is guided by the following
main objectives:

to safeguard the sovereign rights of Malaysia and the legitimate rights and interests
of Malaysians in the ownership and development of petroleum resources

to undertake proper planning for the orderly exploitation and utilization of Malaysia
petroleum resources so as to satisfy both the present and future needs of the
country

to participate actively in the exploitation of petroleum and in the marketing and
distribution of petroleum and petroleum products.

to ensure that the local market is supplied with petroleum and petrochemical
products at reasonable prices.

to encourage local participation in the manufacturing, assembling and fabricating of
plant and equipment used in the oil industry and in the provision of ancillary and
supporting services.

to contribute to the development of the agro based sector of the economy by
making available nitrogenous fertilizers and

to ensure that the people of Malaysia as a whole enjoy the fullest benefits from the
development of the countrys petroleum industry

As contractor to PETRONAS, your company is required to observe all these values and
ensures that steps are taken to incorporate these objectives in your development plan.

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Rihau
C
Berlian
Berlian East
A
B
Terminal
0 1 2 30
Location
N
Malaysia
Kuala
Trengganu
Kuala
Lumpur
Kuanta
Peka
Singapore
Berlian
Figure 3.1
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Before 1976, the concession system gave oil companies the right to explore, produce
and market petroleum independently, in return for royalty and tax payments to the
government. During 1976 PETRONAS started to replace the original concession system
with Production Sharing Contracts (PSCs). Under the new system a fundamental
change occurred, such that management and control of petroleum resources rests with
PETRONAS, while the oil companies operate as contractors.

PSCs stipulate the terms under which to operate, the contract periods, the
relinquishment terms, the obligation to utilize Malaysian goods and services wherever
possible, and the requirements for training Malaysian personnel. The specific terms of
PSC agreement which apply to the licence block containing Berlian East are given in
Section 14.

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4. FIELD DISCOVERY AND EARLY APPRAISAL

The field was discovered by well Berlian East-1 drilled in late 1999 in a crestal position
in Block 1 (Figure 4.1). The location was based on an anticlinal feature interpreted from
a 1 km by 1.5 km 2D seismic grid shot in 1999. The purpose of the well was to
evaluate the reservoir quality and hydrocarbon potentials of Block 1.

The quality of the seismic available was considered adequate to delineate the overall
structure. However, complex crestal faultings, and shallow gas effects over the area
have so far hindered a more detailed interpretation.



Berlian East-1 (BE-1) encountered 29 metres of oil and 7 meters of gas in the M
reservoir unit, and 14.2 metres of gas in the L reservoir unit.

Berlian East-2 (BE-2) was drilled early in 2000 to test the hydrocarbon potential of Fault
Block 3. The well encountered the objective sequence fully water bearing.

Berlian East Field Outline
BE-1
BE-3
Block I
Block II
Block III
Block IV
BE-4
BE-2
1 km
Figure 4.1
N
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Berlian East-3 (BE-3) tested the southern flank of Fault Block 1 in March 2001 and
confirmed the M and L reservoir to be hydrocarbon bearing.

Berlian East-4 (BE-4) was drilled some 3 km due east of Berlian East-1 in February
2002, with the objective of appraising reservoir continuity in the eastern part of Fault
Block 1. The well encountered 6.4 metres of net oil sand within the M reservoir. The
L reservoir unit was found to be poorly developed.

All of the wells described above have been plugged and abandoned. The well results,
lithological description and interpretation are available.

(Additional learning points : All the above wells were drilled vertically therefore you
would have a straightforward sand/HC thicknesses. What would happened to the
lengths of the above sand (hence hydrocarbon) columns encountered by the wells if
they were drilled non-vertical ie deviated wells?)
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5. PRODUCTION GEOLOGY

5.1 Introduction

The Berlian East Field is an east-west trending faulted anticline, about 11 km long and
some 5 km wide. Predominantly northeast-southwest striking normal faults
compartmentalise the field into several fault blocks.

The area comprises Pliocene to Recent sequences which unconformably overlie the
Late Miocene reservoir units. Sediments of the objective sequence were deposited in a
coastal plain to holomarine environment. A summary of the stratigraphy is provided in
Figure 5.1.

The structural style and the depositional environment are similar to those observed in
the Berlian Field. No overpressures have been encountered to date above the N sands
in the Berlian East Field.

5.2 Structural Definition

The Berlian East anticline is dissected by several predominantly northeast southwest
trending normal faults. The vertical displacement ranges from a few metres to 100
metres.

The disappointing result of Berlian East-2 confirms that intra-field faults are sealing,
predominantly as a result of low N/G ratio (clay smearing).

The maximum structural dip encountered is found on the flanks of the structure.

5.3 Depositional Environment

From wireline logs and limited core data in well Berlian East-1 and Berlian East-4, a
model of the depositional environment has been derived. The objective sequence has
been subdivided into an upper zone (L unit) and a lower zone (M unit).

L unit: The top of this unit is marked by the Late Miocene - Pliocene unconformity which
is clearly reflected in the sonic and resistivity logs of the Berlian East wells but not
recognised on seismic. The unit is thinned at the crest compared to the flank areas.

The sediments were deposited in a coastal to holomarine environment. In general the
sand to shale ratio is low (0.1 to 0.4) and the net sandstone thickness rarely exceeds 20
metres. The main lower L sand shows some thinning towards the west of the field.
The lower L contains several prominent, continuous and laterally correlatable coal beds.

M unit: Lithologically this unit can be differentiated based on several prominent coal
beds which are also clearly visible on seismic. A reservoir subdivision into discrete
drainage units has been proposed.


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[Additional learning points : Coal, although thin, may be quite visible on seismic
compared to sand of similar thickness. Why is this so ?]
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LITHOLOGY
AGE
LOG
DESCRIPTION
P
E
R
I
O
D

E
P
O
C
H

G
R
O
U
P

O
R

F
O
R
M
A
T
I
O
N
SEA FLOOR@94 m
S
C
A
L
E

(
m
e
t
r
e
)

R
T
T
E
R
T
I
A
R
Y









T
O










Q
U
A
R
T
E
R
N
A
R
Y

no samples
mainly claystones,
poorly consolidated with
minor siltstones and sands
claystone, mudstone,
siltstone and sandstone
interbeds
claystone/mudstone,sandstone
with minor siltstone and coal
seams at base
P
l
e
i
s
t
o
c
e
n
e

t
o

r
e
c
e
n
t

L
a
t
e

P
l
i
o
c
e
n
e

E
a
r
l
y

P
l
i
o
c
e
n
e

L
a
t
e

M
i
o
c
e
n
e
?

M
i
d
d
l
e

M
i
o
c
e
n
e
?

G
R
O
U
P



I

G
R
O
U
P

L

G
R
O
U
P



J

G
R
O
U
P



M

sandstone, siltstone, mudstone
interbeds with frequent coal
mainly siltstone, mudstone
with minor shale and
sandstone
scarce to absence of coal beds
Figure 5.1 General Stratigraphy of Berlian East
100
200
300
400
500
600
700
800
900
1000
1100
1200
1300
1400
1500
1600
1700
1800
1900
G
R
O
U
P



N

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Sandstones are of varying thicknesses up to 20 metres and comprise widespread
almagamated channels which form laterally thick sands which may not necessarily be
continuous. Bar deposits and crevasse splays are evident from core data and this
interfinger with the channel sandstones. It is possible that some of the channel deposits
are more linear in distribution. The environment of deposition is interpreted as Lower
Coastal Plain, with some marine influence in evidence, particularly in the lower section.

Well logs and cores show some fining upward cycles with flaser bedded sandstones
grading into fine sandstones and shales. Cycles are frequently capped by coalbeds.
Flaser bedding and wave ripples observed in the BE-4 core corroborate some tidal
influence during deposition.

The overall thickness of the M unit is some 200 metres at the crest, increasing towards
the flanks where thicknesses of up 320 metres have been interpreted. Reservoir quality
seems to deteriorate towards the east.

5.4 Diagenesis

Streaks of cemented, tight limestone, sometimes dolomitised occur throughout the
reservoir sequence. These layers, of up to 1m thickness may be laterally continuous
over wide areas of the structure.

6. PETROPHYSICAL DATA

The following table contains a summary of the wireline logging and core measurements.



Sand Well Top
m.ss
Bottom
m.ss
H
m
Net sand
m
Net oil sand
m
Net gas
m
L BE-1
BE-2
BE-3
BE-4
1205.1
1322.5
1232.2
1272.4
1220.4
1331.4
1245.3
1274.2
15.3
8.9
13.1
1.8
15.2
0.6
11.7
1.5



14.2

11.3
1.1
M 2/3 BE-1
BE-2
BE-3
BE-4
1242.7
1387.4
1270.9
Shale out
1262.1
1393.2
1293.7
Shale out
19.4
5.8
22.8
14.9
1.1
8.4

5.8

4.3
7.0
M 7/8 BE-1
BE-2
BE-3
BE-4
Shale out
1406.3
1295.6
1321.1
Shale out
1424.0
1321.5
1344.6

17.7
25.9
23.5

0.3
6.6
15.4


6.0
12.5

M 9/14 BE-1
BE-2
BE-3
BE-4
1300.0
1433.8
1330.9
1366.0
1333.5
1466.6
1367.2
1386.7
33.5
34.1
36.3
20.7
17.7
10.8
18.6
14.0
17.1

18.2
2.1

M 15 BE-1
BE-2
BE-3
BE-4
1338.5
1474.6
1373.3
1393.4
1348.0
1485.2
1383.9
1399.8
9.5
10.6
10.6
6.4
6.1
4.9
8.7
5.5
6.1

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Sand Well Top
m.ss
Bottom
m.ss
Net HC
m
Av.
fraction
S
w
Av.
fraction
Remarks

L BE-1
BE-2
BE-3
BE-4
1205.1
1322.5
1232.2
1272.4
1220.4
1331.4
1245.3
1274.2
14.2

11.3
1.1
0.28
0.23
0.27
0.31
0.31

0.47
0.64

WET


M 2/3 BE-1
BE-2
BE-3
BE-4
1242.7
1387.4
1270.9
Shale out
1262.1
1393.2
1293.7
Shale out
12.8

4.3
0.28
0.24
0.26

0.40

0.56

WET
M 7/8 BE-1
BE-2
BE-3
BE-4
Shale out
1406.3
1295.6
1321.1
Shale out
1424.0
1321.5
1344.6


6.0
12.5

0.23
0.27
0.26


0.49
0.55

WET
M 9/14 BE-1
BE-2
BE-3
BE-4
1300.0
1433.8
1330.9
1366.0
1333.5
1466.6
1367.2
1386.7
17.1

18.2
2.1
0.27
0.25
0.25
0.25
0.52

0.43
0.57

WET

LPO 1376.6
M 15 BE-1
BE-2
BE-3
BE-4
1338.5
1474.6
1373.3
1393.4
1348.0
1485.2
1383.9
1399.8
6.1



0.30
0.25
0.28
0.29
0.30
WET
WET
WET

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Routine core analysis was used to establish porosity / permeability relationships and to
calibrate the calculated log porosities.

Special core analysis established the saturation exponent (m) and the cementation
exponent (n):

m=2 n=2

For a first estimation of net reservoir a GR cut-off of 80 API can be applied.
For detailed evaluations the Waxman Smits equation is used.

Identifier for the line curves:

BS Nominal Borehole Size (inches)
CAL Calliper (inches)
GR Gamma Ray (API counts)
SP Spontaneous Potential (mV)
MSFL Microspherically Focused Lateralog (shallow resistivity, Ohmm)
lLD Induction Log Deep (deep resistivity, Ohm.m)
SFL Spherically Focused Lateralog (Ohm.m)
DT Sonic travel time (ms)


























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EXERCISE
BLOCK 1

(SEPARATE SHEET)


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Exercise 1.1 Life of Field

Prepare a five minute presentation outlining the technical, business and non-technical
issues you consider important during the various stages of the field life cycle.

Exercise 1.2 Exploration Techniques and Identifying Prospects

Your company has been offered to buy into acreage offshore East Malaysia where
several exploration wells have encountered hydrocarbons. A visit to the partner
company is in preparation. The objective is to view the data that are available and to
request specific additional information required to quantitatively evaluate the field. The
company has indicated that it is prepared to provide all information requested, however,
you are expected to contribute towards the original costs of data acquisition and
processing.

Your shareholders expect a short memo (one page) outlining which outstanding
questions (issues) need to be answered (addressed) and what data can provide the
answer(s) and which techniques will be most useful to acquire such data.
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Exercise 1.3 Drilling Operations

Your team has been assigned the task to plan the drilling of an outstep well in the
BERLIAN EAST area.

As the Petroleum Engineering and Exploration Department you should provide the
drilling department with all necessary data for the project.

Please note that you will have to justify the proposed activities to the shareholders.
(Group B & D)

[Additional Learning Point : In data gathering we would not want to acquire data that
would give us the same information as that we have obtained before. We therefore have
to step out from the known zones into the new unknown zones.]

Exercise 1.3 Drilling Operations

As the Berlian East Drilling Operations team you to plan the drilling of an outstep well in
the area. As a first step you should provide the Petroleum Engineering and Exploration
Departments with a detailed list of data you require for the efficient planning of the
drilling operation. Please note that you will have to justify your request to the Operations
and Exploration Managers. (Group A & C)
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Exercise 1.4 Reservoir Description: Geology

Using the data contained in the newly purchased package, summarise your present
knowledge of the reservoir geology of the Berlian East Field.

Of particular interest is the prediction of lateral and vertical variation in reservoir quality
as well as the structural configuration of the area.

Which activities would you propose to improve the definition of specific geological
reservoir parameters?

What are the implications of the present reservoir knowledge for the development and
the production planning of the L and M reservoir?


[Additional Learning Point : The seismic has inherent limitations in defining a fields
exact structural configuration especially the flanks. This comes about mainly because of
seismic imaging difficulty as well as difficulty in velocity field determination for time-
depth conversion. The vertical error in the flank positions affect the lateral distributions
of the hydrocarbons hence field development. It is therefore prudent to determine as
accurately as possible the structural configuration before FDP is formulated. Seismic
DHIs sometimes could help to resolve this matter. Where there is no such luxury,
calculations on the tolerance of the flank positions is next best.]
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Exercise 1.5 Reservoir Description: Fluids

Given the RFT data of Berlian East 3 construct a pressure vs depth plot and advise on
fluid types and contacts.

Depth mss PSIA
-1322.8 1895.7
-1335.6 1910.6
-1340.8 1916.6
-1352.1 1929.3
-1364.1 1945.8
-1383.4 1974.7

[Additional Learning Point : RFT could provide a good indication as to fluid contacts but
it could not beat the accuracy of contacts seen directly from the wireline logs!.]


Exercise 1.6 Data Interpretation: Log Evaluation

The well BE-1 (1300m AHBDF to 1375m AHBDF) has been logged with GR, FDC, CNL
and resistivity logs. Perform a quick look qualitative and quantitative estimate of
lithology, net reservoir sand, net-to-gross ratio, porosity and saturation. Do you observe
any fluid contacts on the logs and how do they fit the pressure depth plot derived fluid
distribution?

Assumption: Archie equation applicable. Core analysis has established
ma
: 2.65 g/cm
3
.

fl
in the oil zone: 0.9 g/cm
3

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Exercise 1.7 Data Interpretation: Log Evaluation Results
GR and density readings confirm the section as a sand shale sequence.


Net Reservoir: Determined by applying a GR cut off, in this case 80 API. The inspected
interval covers 90 m of which 40 m is net sand. For this section, if no other reservoir
subdivision is used the N/G is 0.44.


Fluid Distribution: The resistivity log indicates hydrocarbons down to 1347 m AHBDF
and WUT 1364 m AHBDF. No contact can be established without additional data such
as the RFT pressures.
The density neutron combination shows no gas effect and all sands are therefore
interpreted as oil bearing with an ODT 1347 m AHBDF.
fl ma
b ma

b
can be read from the log by averaging the reading over a sand interval. It is now
possible to calculate porosities but an easier method is to rescale the density log grid:

if
b
= 1.85 g/cm
3
, = 0.46
if
b
= 2.20 g/cm
3
, = 0.26
if
b
= 2.60 g/cm
3
, = 0.03


Hydrocarbon saturation: The Deep Resistivity log will provide Rt and using the Archie
equation:
Rw Sw Rt
m n
* *

=
Rw can be calculated by reading the value for Ro from the resistivity log in the water
zone:
Ro = 2.5 m @ = 24%

m
o
R
Rw


= 0.14 m


In the oil zone:
Rt = 25 m @ = 28% (values in the lowest and well developed clean oil sand). This
leads to Sw = 0.31 and thus So = 0.69


[Additional Learning Point : The industry also uses HKW (Highest Known Water) for
Water Up To (WUT) . For oil on the rock case LKO (Lowest Known Oil) may also be
used instead of ODT (Oil Down To). Other terms to know is GDT (Gas Down To) for
Lowest Known Gas (LKG) situation and Oil Up To (OUT) for Highest Known Oil (HKO)].
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Exercise 1.8 Data Interpretation: Correlation

Using the logs of all Berlian East wells establish a field wide datum plane correlation.
Advise on a meaningful reservoir subdivision and the implications of your correlation on
reservoir continuity.


Exercise 1.9 Data Interpretation: Mapping and Cross Sections

From the top reservoir depths of the four well logs used in the correlation the information
contained in your data package and the interpreted fluid contacts you construct a top
M2/3 map. As a step towards quantification of the range of hydrocarbons in place, you
should create a high case and low case map (two teams each!). An east west cross
section should visualise the main structural elements and sand distribution trends
across the field.


In view of time constraints, you are advised to plan your resources assigned to the
different tasks carefully.









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Top M2/3 Reservoir Map
1: 35,000
0 1 km
BE-2
1387
BE-4
S/O
BE-3
1271
BE-1
1242
BERLIAN FIELD FDP
1
3
0
0
1
3
6
0
1
4
0
0
1
4
0
0
1400
1300
1300
1400
65,5000 N
65,2500 N
65,0000 N
4
5
,
7
5
0
0

E
4
5
,
5
0
0
0

E
4
6
,
2
5
0
0

E
4
6
,
0
0
0
0

E
N
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