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, supplydemand, 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
DOMINANT

1,600

1,400

1,200

1,000

800

600

400

200

OILOIL
(MBOPD)
(MBPD)

GAS (MBOEPD)

Source:skkmigas

Kinerja gas tahun 2012

12,000

14.00
12.49

11,000
10,000

12.00

11.24
10.73

10.90

10.54

10.35

10.34

10.31

9.78

9,000

10.37

9.82

10.00

9.26

8,000
8.00

BBTUD
7,000

US$/mmbtu
6,000

6.00

5,000
4.00

4,000
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

2007-2012
20,000

18,000
16,044
16,000
14,022
1,014

14,000
958
12,000

US$ Juta

10,000

8,000

9,142
869

10,615

10,425

981

730

2,523

2,671

3,267

11,031
3,149
833
2,495

2,088
6,000
9,196

4,000
5,711

6,579

6,391

2008

2009

10,315

7,033

2,000

2007

Data 21 Desember 2012

2010

2011

2012

Source:skkmigas

GEOLOGICAL
CONSIDERATI
ONS
RESERVOIR
CONSIDERATI
ONS

DESIGN &
ENGENEERIN
G PROD.
FACE

DRILLING
CONSIDERATI
ONS

OIL & GAS

PLAN OF
DEVELOPM
ENT

INVESTMENT
& OPERATING
COST
ESTIMATE

PRODUCTION
FORECAST

PROJECT
SCHEDULE

ECONOMICS
EVALUATION

Management
Management

Economics
Economics

Facilities
Facilities
Engineering
Engineering

Drilling
Drilling
Engineering
Engineering

Reservoir/
Reservoir/
Petroleum
Petroleum
Engineering
Engineering

Overview of field development

planning
Volume
Estimates

Fluid
Compns

Well
Lithologies

Well
Rates

Well No.s
Types,
Locations

Well
Designs

Drilling
Time/Cost
Estimates

Well
Schedules

Drilling
Facilities

Surface
Production
Facilities

Storage
& Export
Systems

Investment
Profile

Production
Profile

Time
Schedules

Product
Prices &
Bases

CAPEX &
OPEX
Estimates

Fiscal
Systems

Safety &
Environment
Assessments

Economic
Indicators

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

0

Produksi

Konsumsi

Souce: PEUI, 2013

Net ekspor/impor minyak nasional

200%
150%
100%
50%

Ketergantungan impor minyak & BBM

40%
saat ini
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

kal/gr)
High
(6.100 - 7.100 kal/gr)
Medium
(5.100 - 6.100 kal/gr)
Low

Source : Geology Agency, MEMR,

2013

RESOURCES : 120.5 Billion Ton

(< 5.100 kal/gr)
RESERVES : 31.4 Billion Ton

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