Shale Oil & Gas

Overview of Shale HC Potential in Onshore East Malaysia

May 2016

© 2015 PETROLIAM NASIONAL BERHAD (PETRONAS)

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©Petroliam Nasional Berhad (PETRONAS) 2015 1
Driver for unconventional in Malaysia

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Status Quo of Malaysia Unconventional :
PETRONAS yet to tap unconventional resources
TIGHT GAS
CATEGORY CBM
OIL / GAS OIL / GAS HYDRATE

HC formed during the Oil & Gas: Trapped in  Oil: Crude that  “Flammable ice” - a
coalification process or shales that have very low occurs in silty-fine crystalline substance
thermal maturation of coal permeability, typically sandstones with like ice, composed of
bed which can be liquid or less than 0.1mD tight carbonate molecules of water and
DEFINITION gaseous reservoir methane, exist in low
 Gas: Preserved in temperatures and high
sandstones layers pressure.

BASIN Sabah Sarawak Sarawak / Malay Sabah

POTENTIAL
RESERVES / SIZES 6Tscf (non-commercial) Unknown Not-established yet >150Tscf
(MALAYSIA)
 Porosity
CHARACTERISTIC

Characteristics applicable to full spectrum of Unconventional Resources

 Permeability
 Configuration
 Resource
 Technology

 Local Supply-Demand  Fracturing  Technology Devt.  Technology Devt.

Gap Technology  Subsurface Knowledge
OTHER FACTORS FOR  Sustained High Oil /
CONSIDERATION Gas Price
Pipeline Access /  Pipeline Access / Availability Pipeline Access /
Availability  Environment Protection Availability
 Shale Gas assets in
LATEST Canada (Progress Preliminary gas hydrates
PROGRESSION
 CBM assets in Energy) , JV  Nil assessment In volume
Australia
(PETRONAS) Argentina , Shale Sabah Deepwater
Evaluation in China

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INTRODUCTION – East Malaysia potential

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Geological Map of East Malaysia and outcrops
SW NE
Upper shoreface (tidal channel and sand bars)
e

e b
b c
b thick bedded sst with sharp erosive base overlying
greyish shale
c a
younging direction

SB
a

Sabah

Sarawak

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Internal
 Stratigraphic Chart
Formation EOD Lithology Description SR Potential

SIBUTI Inner Neratic shale, siltstone interbedded, sst, NA

limestone.

SETAP-SHALE Inner neritic Inner neritic clay-shale & silty clay Poor-Fair Organic matter.
Occationally interbedded with ss, Termally Immature –Early
calcareous ss & moderate thick Mature.
limestone

NYALAU Lower-middle Hard and semi to uncosolidated TOC:78% Oil & gas prone
shoreface sandstone, massive, heterolithic HI:219-475
sucession, coal seam, paleosol and
thick mudstone (probably shelf and
marginal marine mudstone)

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Internal
Onshore Sarawak, Outcrops (Miocene Sequence)
Meligan Formation

Setap Formation

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Internal
 Oligocene Outcrops
Folded and faulted Crocker Formation. Duplex structures in the Crocker Formation.

Moderately deformed Temburong Formation. Highly deformed Temburong Formation.

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Internal
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Presentation Title (acronym) ; ©Petroliam Nasional Berhad

Petroliam Nasional Berhad (PETRONAS)
(PETRONAS) 2014
2015 9
Comparison with North America
Shale Gas Criteria’s

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 Surface Geochemical results
0 10 20 40

Kilometers

Legend
Petronas_Tinjar-Limbang-Klias_PSG-PrelimMapData_TM-CM114_WGS84
∑(C16-C20) / ∑(C6-C7)
(
! > 1.00 Heavy Hydrocarbons

(
! 0.00 - 0.50 Light Hydrocarbons
MicrobialAnomalies_MSZt
VaporAnomalies

∑ ∑
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•

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Internal
 THE 1D BASIN MODELLING – EW-1

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Based on preliminary resource assessment, Malaysia has an
estimated total of 8.8Tcf/2.8Bstb (HIIP) of shale gas resources
in focus area

 Total area: 900 sq.km

 Target depth: 1000m – 3500m

 Thickest prospective shale : 157m

 Type of HC: Oil and Gas

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Stage gate approach is needed to manage
progress, risks and uncertainties – guided by long
term aspirations

Jan May July July Jan Jan Jan Jan

2016 2016 2017 2018 2019 2020 2023 2028

SG1 SG2 Exploration & SG3

Team

FIRST
COMMERCIAL
PRODUCTION
Exploratory development
formation & concept
Drilling* Shale block
collaboration
promotion
Shale Block select FID for full
Award field
Further Introduce development
evaluation fiscal terms
assessment

What we want to answer in Stage Gate 1 This will include :

• Realizing of full shale potential in domestic land  Several wells drilling
• Establishing production profile  Data acquisition and G&G studies
• Ways to entice participation of industry players  Collaboration with unconventional group &
available third parties

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Thank you

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