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SHALE GAS, THE FUTURE - UNCONVENTIONAL GAS

by :

Doddy Priambodo Wuryadi Sadirsan

Jakarta. Oktober 2012

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Nama : Doddy Priambodo

Tempat tgl lahir : 11 April 1961

________________________

Pendidikan : Geologi UGM

Geologi ITB

_________________________

Pengalaman Kerja :

1989 s/d saat ini : PT PERTAMINA

Jabatan Saat ini : Direktur Eksplorasi

. &.Pengembangan

. PT PERTAMINA EP

Nma : Wuryadi Sadirsan

Tempat tgl lahir : 22 Januari 1959

________________________

Pendidikan : Geologi ITB

Geologi ITB

_________________________

Pengalaman Kerja :

1989 s/d saat ini : PT PERTAMINA

Jabatan Saat ini : Manajer Regional .

. PT PERTAMINA EP

CURRICULUM VITAE

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UNCONVENTIONAL GAS

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Unconventional HC Resources

Source: “Unconventional Reservoirs” (Holditch et.al, 2001)

ROAD MAP PT Pertamina (Persero) MENUJU WORLD CLASS COMPANY

1000 md

10 md

0,1 md

0,01 md

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0

200

400

600

800

1000

1200

1400

1600

1800

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

mb

op

d

Oil Production (mbopd) Oil consumption (mbopd)

Indonesia becomes net crude importer

Crude Supply-Demand Profile in Indonesia

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Central & East Java Demand

Will Be Triple By 2019

North Sumatra Demand

Will Be Quadruple By 2019

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PERTUMBUHAN JUMLAH KENDARAAN DI

INDONESIA (Data BPS 2006-2010 – Mobil penumpang, bis, truk, dan sepeda motor)

DATA GAIKINDO dan AISI:

• Jumlah kendaraan di Indonesia No. 1 di ASEAN

(Thailand 25,29 juta, Vietnam 14,51 juta, Malaysia 7,28 juta, serta Filipina 2,15 juta)

• Pertumbuhan Kendaraan bermotor 10-15% per tahun

• Pada 2014 diprediksi penjualan kendaraan bermotor mencapai 1 juta unit

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Characteristics of Shale Gas Plays Characteristics

•Well bounded and contains hydraulic fracture energy;

•Brittle;

•Moderate clay content (< 40 percent)

Specific Measures:

Source: Halliburton Website; /www.halliburton.com/public/news/source_files/Newsletters/KCNews/2006/Jan06PE_Shale_print.html

Characteristic Unit of Measurement Target Explanation

Maturity Ro (%) 1.1 to 1.4 Vitrinite Reflectance

Thickness ft / m > 100 / 30.5 -

TOC % > 3 % -

Gas content Scf / ton > 50 Preferably > 100

Porosity % > 3 Preferably > 5

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COMMON CHARACTERISTICS AMONG GAS SHALES

•High Gamma Ray

•High Resistivity

•High organic content (>1%)

•High maturity (late oil window or higher), Ro > 1%

•Brittleness (>40% Qz. content)

•Thickness (> 30 ft)

•Porosity (>4%)

•Deposited in marine environments

•Type II kerogen

•Presence of fracture barriers (usually carbonates)

•Low permeability (in nano darcy scale)

Shale Gas Parameters

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POTENTIAL IN USA & IN PERTAMINA EP

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U.S. Gas Shale Plays Gammon Shale

Williston Basin

Bakken Shale

Williston Basin

Green River Shale

Green River Basin

Mancos & Lewis Shales

Uinta & Piceance Basin

Devonian/Ohio Shales

Appalachian Basin

New Albany Shale

Illinois Basin

Floyd/Conasauga Shales

Black Warrior Basin

Antrim Shale

Michigan Basin

Barnett Shale

Fort Worth

Basin

Excello/Mulky Shales

Cherokee Basin

Niobrara/Pierre Shales

Denver Basin

Caney/Woodford/

Fayetteville Shales

Arkoma Basin

Barnett/Woodford Shales

Delaware Basin

Palo Duro/Cisco/Bend

Shales

Palo Duro Basin

Mancos/Lewis Shales

San Juan Basin

Cane Creek Shale

Paradox Basin

McClure Shale

San Joaquin Basin

Monterey Shale

Various Basins

Haynesville Shale

East Texas Basin

Woodford

Shale

Anadarko

Basin

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GAS SHALE BASIN BARNETT FAYETTEVILLE HAYNESVILLE MARCELLUS WOOD FORD EAGLE FORD

Basin Area, SqM (est) 54,000 9,000 9,000 95,000 11,000 3,800

Depth, ft 6,500‐8,500 1,000 ‐ 7,000 10,500‐13,500 4,000‐8,500 6,000‐11,000 0,500‐11,300

Net Thickness, ft 100 ‐ 600 20 ‐ 200 200 ‐ 300 50 ‐ 200 120 ‐ 220 300 ‐ 475

TOC, % 4.5 4 ‐ 9.8 0.5 ‐4 3 ‐ 12 1 ‐ 14 3 ‐ 5

Total Porosity, % 4 ‐5 2 ‐8 8‐9 10 3 ‐9 7 ‐ 10

Thermal Maturity, Ro 2.2 1.5 ‐ 4.0 1.0 ‐ 2.5 1.1 ‐ 3.0 1.0 – 1.2 7

IP Rates, MMCFD 4 2.8 14 5 4.5 9 + Cond

Avg. Lateral Length, ft 2,500 ‐ 3,500 1,500 ‐ 5,000 3,500 ‐ 3,800 2,500 2,500 ‐ 5,000 3,800 - 5,500

Well Spacing, Acres* 60 ‐ 160 80 ‐ 160 40 ‐560 40 ‐ 160 640

Proj.OGIP, TCF (Bsn) 327 52 717 1,500 23

Expected RF, % (Bsn) 20 ‐ 50 30 30 20 ‐ 40 50+

Rec. Resources, TCF 44 42 251 2 62 11 21

•Averages ‐ depends on Lateral Length, Frac & Reservoir Characteristics

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Shale gas production

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Break even point

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Comparison data of Shale Gas in US and Purpose WK Pertamina

9.33-16.96 3.51– 21.17

Asset Overview – Shale Gas Parameter

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Gas Shale Rankings vs Initial Production Vertical Wells

0

500

1000

1500

2000

2500

3000

3500

40 50 60 70 80 90

Gas Shale Score Ranking

Init

ial P

rod

uc

tio

n (

MC

FD

)

Barnett

Haynesville

Woodford

Woodford Caney

Marcellus

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Major Source Rock Type of The Hydrocarbon Productive Basin of Indonesia

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Quartz + Feldspar

Carbonate Clay

North Sumatra Basin

Palembang subbasin

North West Jawa Basin

BaritoBasin

KutaiBasin

Salawati Basin

Jambi subbasin

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ADMINISTRATIVE MAP OF

SHALE GAS NAD

LEGEND :

District Border

River

WK Block Existing PEP

City/Town

Sub District

INDEX MAP

TOTAL AREA = 6.257 km² (NW) WK = 4.392 km² (SE) WK = 1.865 km²

1672 sq km

2720 sq km

3537 sq km

1865 sq km

Intres area of L Baong FM.

Intres area of Bampo FM.

OUTCROP OF OLD SEDIMENT

AND BASEMENT

Asset Overview – Location Map

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PERTAMINA STRATEGY

PERTAMINA’S BLUE PRINT OF NEW AND RENEWABLE ENERGY (NRE)

PERIOD

HC BASE

(Unconventional)

Non HC BASE

2010 - 2013 2014 - 2017 2018- 2021 2022 - 2025

•CBM •Shale Gas/oil

• Geothermal

•CBM •Shale Gas/oil • Tight Sand Gas ??

• Geothermal • Wind • Algae

• Geothermal • Wind • Algae • Solar cell • Nuclear

• Geothermal •Wind •Algae •Solar cell •Nuclear •Hydrogen

•CBM •Shale Gas/oil • Tight Sand Gas ?? • Oil / Gas Sand

•CBM •Shale Gas/oil • Tight Sand Gas ?? • Oil /Gas Sand • Coal-Synthetic Gas

NATIONAL ENERGY

COMPANY

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CONSTRAINs

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Comparison data of Shale Gas in USA

9.33-16.96 3.51– 21.17

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PROBABILITY GEOLOGICAL SUCCESS FOR SHALE GAS MODIFIED FROM JAVIER AND OTIS

PARAMETER TEMPLATE

Lacustrine - marine

18 -98 ft

0.56 – 1.96

18.5 -91.7

1 -9

6,500 – 10,000

396 – 1,398

F. Baong – F Bampo

Aru – Langkat North Sumatra

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GAS SHALE PRODUCTION

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POSITIVE VALUE

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LOKASI KEGIATAN OIL/GAS SHALE

PUSAT SUMBER DAYA GEOLOGI

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Dst -5 Sumur Pagardewa 5

di lapisan shale F Gumai

kedalam 1400 m

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Unconventional gas

Gas production

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Conclusion

1. Shale gas is unconventional gas, high price and high technology.

2. Potential in Pertamina EP is different of age, facies and brittleness from those in USA

3. Constrain in Shale Gas development is number of wells, horizontal wells and water treatment.

4. The positive value of Shale Gas is abundant, and promising.

5. Pertamina will expoit gas shale to support national energy stability after economics is achieved

6. Government support is needed in incentive land clearance, customs tax, social effect.

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Exploration : the biggest gamble in oil & gas business

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Thank you