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SPE Applied Technology Workshop

“PUSHING THE RECOVERY LIMIT WITH EOR”


9-12 AUGUST 2009 • AYODYA RESORT BALI • INDONESIA

EOR for Supporting High Oil Demand


and Green Environment

Salis S. Aprilian
President Director
PT Pertamina EP

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Indonesia Net Oil Importer Issue…

*) Source: KOMPAS, 20 August 2005


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Reserve-to-Production Ratio (R/P)

• R/P is the reserves remaining at the end of any year are divided by the
production in that year
• It reflects the length of time that those remaining reserves would last if
production were to continue at that level (BP Definition)

Source: BP Statistical Review of World Energy, 2006


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Working Area of PT PERTAMINA EP

 Working Area: 140,000 km2  Prod 2008, 116.6 MBOPD & 1003 MMSCFD
 3 Regions + 5 Unit Business EP  Prod 2009, 125.5 MBOPD & 1123 MMSCFD (target)
 31 TAC + 10 KSO  Prod YTD up to July 2009 123.3 MBOPD
 160 Production Fields

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2009 Oil Production Target

OIL PRODUCTION GROWTH


MBOPD MBOPD

+14%*
171,9 171,9
34,7 5,0
150,2 6,7
125,5

2008 2009 Plan PTEP PHE Cepu Acquisition Total 2009


Realization Plan
Sukowati BOB PTM- BSP Blok
Backbone fields Tambun Kodeco- W.Madura
Limau Petrochina East Jawa
Poleng SK-305 East Malaysia **
* Actual Growth more than 14% to compensate i ~15% natural production decline per year
** SK305 is main production field operated by Pertamina overseas, will be started up in 2009

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Key Performance Indicators
• Financial KPI:
• Exploration
– Net Income – Strategy (3 – 5 years)  Oil/Gas?
– Investment Realization – Prioritizing Existing Leads & Prospects to
be “Ready to Drill”
– New Plays & Basin Structures

• Operational KPI:
– Reserves • Primary Recovery
– Productions – Reservoir Management
– Maintenance Management (~ investment, SOP,
– Operating Cost Organization)
– HSE Excellences – Production Optimization
– Development of new fields

• Secondary/Tertiary Recovery (EOR)


– Implementing EOR
– Re-development (Rejuvenation)

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Why EOR…

• National Oil Demands : 1.3 Million BOPD, while the Supply : 0.9 – 1 Million
BOPD
• Pertamina has 214 fields and 80% mature fields
• High Oil Price (>> 40 US$/Bbl)
• EOR Technology is getting less expensive (ASP = 10 – 15 US$/Bbl Oil)
• EOR Technology has Improved Significantly:
– Surfactant : IFT : Ultra Low IFT Number (1 x 10 –6)
– Polymer-Surfactant in one chemical
– Polymer with Low Molecular Number Polymer
– Polymer/surfactant for high temperature
– Low cost in-situ Combustion

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Background…

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Pertamina Oil Fields…

• Mostly Mature Fields

• Still under Primary Recovery

TOP TWENTY
ACTIVE PROVEN OIL RESERVES [MMBO]

0,00 5,00 10,00 15,00 20,00 25,00 30,00 35,00 40,00 45,00

RANTAU 41,85

• Many-small-separated-mature
MUSI 25,04
KUALA SIMPANG BARAT 22,20
SOPA 21,69
JIRAK 16,64
BENAKAT TIMUR 15,69
OGAN TIMUR 11,35
TL. AKAR PENDOPO 10,65
BERINGIN-D 9,59
KUALA DALAM 9,14
KETALING TIMUR 7,25
BENUANG 7,24
TAPUS 6,85
KETALING BARAT 5,41
SERANG JAYA 5,40
G. KEMALA TENGAH 5,34
BETUN 4,72
KUANG 3,45
SUNGAI BULUH 2,86
G. KEMALA TIMUR 2,50

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“Wake-up Call” …

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2008 DISCOVERIES FAILED TO REPLACE PT EP PRODUCTION,
AND 2009 IS AT RISK OF NOT DELIVERING
Oil
PRELIMINARY
Gas
Total
2008 Exploration reserve additions 2009 Risked exploration reserve additions***
MMBOE MMBOE
35 32 36 48
Oil 8 27 20 16
MMBO MMBO MMBOE
365 469
369
325 240 149
Gas 95 BCF
40 BCF
BCF
126
95 98
48 60
Total 15
MMBOE
2008 Own- 2008 2P 2008 1P 2009 Own- 2009 2P 2009 1P
operated & additions additions operated & expected expected
TAC TAC additions additions
production* production
forecast
2008 Reserve replacement ratio (RRR)** 2009 Expected reserve replacement ratio**
% %
2P 1P 2P 1P
Oil 93% 22% Oil 133% 65%
Gas 26% 11% Gas 127% 65%
Total 50% 15% Total 129% 61%

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Shifting Paradigm…

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Mature fields “Rejuvenation”…

MACRO OPERATIONAL MICRO


FOCUS FOCUS FOCUS

Capital Monetization Knowledge & Data


Infrastructures Optimization Detailed Engineering
Production Rate

Wells Efficiency Sub-surface


Risk Simulation
OPEX Management

Re-investment
New business models
New technology & processes

Time

*) Source: Brownfield Seminar, ITB, 2004


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New Technology and Processes…
(Multidisciplinary Synergy Team)

Production Operation
Engineers
Reservoir
Engineers Drilling
Engineers

EOR
Reservoir
Geologists/
Petrophysicists
Management

Supporting
Group
Geophysicists
Field Operation
Group

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EOR Focus Initiatives…

Re-Investment:
2D,3D,4D Seismic,
Reprocessing, Coring, PVT,
Lab Test

EOR
New Business Model:
New Technology: New Portfolio,
Partnership
Waterflooding
Incentives
Chemical Flooding
CO2 Flooding

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New Business Model…
(Portfolio and Partnership Models)

Moderate High Very High  GROUP I


Very Low Risk Low Risk Risk Risk Risk Own Operation with full equity
financing (100% equity)
400

GROUP II
Cost)

High 
Own Operation with project
Cost)

Value
financing (20% equity, 80%
Price,

financing)
f (Reserves,Price,

II
300

Medium
I  GROUP III
Value f(Cadangan,

Value
Partnership with Major
III Companies
200

GROUP IV
Low
Value 
Partnership with Small & Medium
Companies
100

IV V Very Low
Value
 GROUP V
Partial Farm-out

0 50 100 150 200 250 300 350 400

Risk f(St. Dev, Prob)


*) Source: Div Usaha Baru PT PERTAMINA EP
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EOR Project Workflow…
PROJECT PLANNING EXECUTION

FIELD DEVELOPMENT PLAN


IDENTIFICATION
PHASE MANAGERIAL PRODUCTION
PHASE
APPROVAL PHASE

RESERVES AFE : VAL.DAT, PVT, DLL


Data Acquisition

GG
AFE : CORING, X-RAY, SIMULATION, etc
Geo. & Numerical Model Studies
FULL SCALE
RES PEP
JIAN , EPT
Prod. & Reserves Forecast BPMIGAS
• Well Data
• Water
Availability Facilities Requirements PF
START OPERATION
• Initial By
Economic Optimization
Screening ECON Field EOR Organization

•Economics
PRA- POD PILOT POD

Pertamina Mgt Approval BPMIGAS Approval

0 Year 1-2 3-4


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Field Selection

Preliminary Study
Pertamina EOR Steps…
N

Proposal To Regulator

y
Working & Steering Committee
Regulator & Contractor Full-scale

Comprehensive study of GGR


Under supervision of Committee y
y
N POD
Baseline
Lab Study and For Incentive
Chemical Selection

y y
N
y
Pilot Test
Field Trial

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PERTAMINA “Green” Technology…

• Waterflooding for Zero Discharge


• CO2 Flooding for CO2 Reduction Emission
• Bio-Surfactant Flooding from Biodegradable
and Renewable Surfactant

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PERTAMINA Joint Study…

PERTAMINA EP
Mature Fields

LEMIGAS
PUSAT PENELITIAN SURFAKTAN DAN BIOENERGI
Lab & Equipment
LEMBAGA PENELITIAN DAN PENGABDIAN MASYARAKAT
INSTITUT PERTANIAN BOGOR

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EOR Prioritizing…

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EOR Project Schedule…

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Summary…

• Indonesia has been facing a net oil importing issue that needs a sustainable
increasing production and additional reserves
• Pertamina has taken a responsibility of managing its mature fields to support
the Indonesia oil production
• Secondary stage of Oil Recovery is much more challenge for a high incremental
production
• Water-flood is a proven and cheap method to increase production and
additional reserves and environmentally accepted (zero discharge)
• Chemical flooding is the next initiatives of Pertamina EP to enhance oil recovery
as a tertiary recovery
• Bio-surfactant, CO2, produced water could be considered as a “green” EOR
technology

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THANK YOU !
www.pertamina-ep.com

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