Introduction to Hydrocarbon

Exploration and Production

- Field Development Life Cycle

Widodo W. Purwanto
Eksplorasi dan Produksi
Hidrokarbon (3SKS)- ENCH801037,
ENCH801008
 Outline

Syllabus
Overview of hydrocarbon
industry
The field development life cycle
Overview Hydrocarbon
Industry
Oil and Gas
Black Gold!

Politics: fuel source,

main producers, supply-
demand, peaks, global
warming

Standard Oil Company - founded in 1870

Gulf Oil - founded 1890
Texaco - founded 1901
Royal Dutch Shell - founded 1907
Anglo-Persian Oil Company - founded 190
Source: IEA, 2015
Hydrocarbon
Within each type of hydrocarbon, there are
many types, which have implications for their
environmental impact and energy content
There is an extensive, capital-intensive
energy infrastructure that explores, drills,
converts and transports fossil fuels from
source to consumption
Three major groups:
- Coal, oil, and natural gas
Three major uses
-Transportation, industry, and electricity
Hydrocarbon fuels (cont)
What are the unit of measures of coal, oil,
and
natural gas?
How much of these hydrocarbon are
consumed on a daily basis
Where are these resources located?
What are the political implications of the
location of these resources?
How are they transported?
Hydrocarbon value chain
Oil value chain
 Natural gas value chain

Upstream Midstream Downstream

LNG value chain
Coal value chain
World Oil &Gas Status
Oil reserves-to-production (R/P)
ratios
Indonesias Hydrocarbon
Status
Balance of payment

Oil & Gas

Source: BI, 2014

 Shifting roles: Oil to Gas
1,800
OIL PRODUCTION DOMINANT
GAS
PRODUCTION
1,600 DOMINANT

1,400

1,200

1,000

800

600

400

200

OILOIL
(MBOPD) GAS (MBOEPD)
(MBPD)
Source:skkmigas
 Kinerja gas tahun 2012
12,000 14.00

12.49
11,000
12.00
11.24
10,000 10.90
10.73
10.54 10.35 10.37
10.31 10.34
9,000 9.78 9.82
10.00
9.26

8,000

BBTUD 8.00
7,000

US$/mmbtu
6,000
6.00

5,000

4,000 4.00

3,000
2.00
2,000

1,000 -
Jan Feb Mar Apr Mei Jun Jul Agt Sep Okt Nop Des*

Source: skkmigas
 Realisasi investasi migas
20,000
2007-2012
18,000

16,044
16,000

14,022
14,000 1,014

958
12,000 11,031 3,267
10,615 10,425
3,149
10,000 9,142 833
US$ Juta 981 730

869 2,495
8,000 2,523 2,671
2,088
6,000
10,315
9,196
4,000
6,579 7,033
6,391
5,711
2,000

-
2007 2008 2009 2010 2011 2012

Data 21 Desember 2012

Source:skkmigas
 GEOLOGICAL
CONSIDERATI
ONS
RESERVOIR
CONSIDERATI DRILLING
ONS CONSIDERATI
ONS

DESIGN & OIL & GAS

ENGENEERIN PLAN OF PRODUCTION
G PROD. DEVELOPM FORECAST
FACE ENT

INVESTMENT PROJECT
& OPERATING SCHEDULE
COST
ESTIMATE

ECONOMICS
EVALUATION
 Overview of field development
planning
Engineering
Engineering
Reservoir/
Petroleum
Reservoir/
Petroleum

Well No.s
Volume Fluid Well Well Production
Types,
Estimates Compns Lithologies Rates Profile
Locations
Engineering
Engineering
Drilling
Drilling

Drilling
Well Well Drilling
Designs Time/Cost Schedules Facilities
Estimates
Engineering
Engineering
Facilities
Facilities

Surface Storage CAPEX & Safety &

Time
Production & Export OPEX Environment
Schedules
Facilities Systems Estimates Assessments
Economics
Economics

Product
Investment Fiscal Economic
Profile Prices & Systems Indicators
Bases
Management
Management

Select
Best Development Plan

Source: skkmIgas
Indonesia petroleum problems

Net oil importer country

National oil production <, national
budget depends on oil and gas exports
Some petroleum fuels are still
subsidised, crude oil price >
subsidised fuel price
Limited refinery capacities, low quality
gasoline, dependent import petroleum
fuels >
 Neraca minyak dan BBM
6,000

5,000

4,000
Konsumsi 2050 - 3.5 x saat ini
3,000 2030 ~ 2 x saat ini
Ribu barel/hari

2,000

Net Impor
Net Ekspor 1,000

Produksi Konsumsi

Souce: PEUI, 2013

Net ekspor/impor minyak nasional
200%

150%
Ketergantungan impor minyak & BBM
100%
40% saat ini
50% 85% 2030
100% 2050
0%

-50%

-100%

-150%

Souce: PEUI, 2013

Oil netback comparison
Ethylene, Benzene
PX price
1400-1600 US$/t
Domestic natural gas problems

Natural gas pricing vs. export

Natural gas export >
Limited natural gas infrastructure
domestic utilization is still low
Stranded gas with high CO2
content
Natural gas netback values
Source: PGE, 2012
 Coal resources and reserves

Very High (> 7.100 Source : Geology Agency, MEMR,

kal/gr)
High (6.100 - 7.100 kal/gr) 2013
Medium RESOURCES : 120.5 Billion Ton
(5.100 - 6.100 kal/gr)
Low RESERVES : 31.4 Billion Ton
(< 5.100 kal/gr)

51
Indonesia - Coal
Indonesia coal problems

Browncoal reserves 60% lignite

Land use overlaping, small
company, environment problems
Limited infrastructure - stock filling,
road, kereta
Competitive coal market, export >>
Basic types of unconventional
gas

Coalbed methane
Shale gas
Natural gas hydrate
Unconventional fossil
Field Development Life
Cycle
Key stage in E&P lifecycle
- E&P and Economic life of a
field
Field life cycle
Exploration
Searching for hydrocarbon:
-Objective
-Petroleum migration and
accumulation
-Seismic data aquisition
-Subsurface map from
logging
Reservoir Characterization
-Wireline
-Objectives of Well logging
-Archie-Equation
3. Exploration Team
Phasing and expenditure of typical
exploration activities
Appraisal
-Resource and reserves
classification
-Resouces and reserves
classification
Development
-Drilling and well planning
-Drilling system &
equipments
-Rig selection
-Cassing the well
-Well completions
Production
-Well performances
-Workover activity
- Production profile
Abandonment
-Economic life of a field
Thank you