Overview of Upstream Industry

Additional Lecture

Outline

• Oil & Gas Industry – Overview of Upstream Sector

• A Glimpse of Unconventional Gas

1

2

3

4

5 6 7

8 9

10

Major Oil Producers

Vide – Price Waterhouse Cooper

1

2 3

4

5

6

7 8

9

Major Gas Producers

Vide – Price Waterhouse Cooper

Indonesia – Top 5 Players

Total Indonesie Chevron ExxonMobil ConocoPhillips British Petroleum

International

Pertamina

MedcoEnergi

Energi Mega Persada Star Energy BOB Bumi Siak Pusako

Domestic

Oil & Gas Industry

Production

Pipelines

Exploration

& Production

Shipment EXPORT UPSTREAM

LNG / LPG Plant

Oil / Gas

REFINERY

Gasoline Station

TRANSPORTATION

DOWN STREAM

Fuel

End Users

Fuel

Distribution

Fertilizer / Electricity

Upstream – Business Process

Exploration – searching for new oil / gas

• Seismic Survey / Prospecting

• Exploration Drilling

Exploitation – oil / gas production

• Development Drilling

• Processing Facilities

• Gathering Stations

Transportation – to delivery point

• Pipelines

• Truck, Barge, Ship (OIL / CNG / LNG)

8 – 10

Years

Page 8

• Onshore

• Offshore

• Transition Zone

Seismic Acquisition & Processing

• Regional mapping

• Prospecting Interpretation

& Mapping

• Drilling wildcat well Exploration

Drilling

• 3D Seismic

• Delineation Drilling Appraisals

Exploration Activities

Page 9

Seismic is the Tool to “see”

Subsurface 2D Seismic

3D Seismic

• Fault traps

• Stratigraphic: – Reservoir pinch-out

– Unconformity

• Combination

Page 10

Various Types of Hydrocarbon “Traps”

Anticline

Associated Gas Non-Associated Gas

Oil & Gas Gas

Oil Reservoir

Oil

Prospect Mapping – best location for drilling

Exploration

Drilling

Exploration Success followed by

Appraisals

• Onshore

• Offshore

• Transition Zone

Seismic Acquisition & Processing

• Regional mapping

• Prospecting

Interpretation & Mapping

• Drilling wildcat well

Exploration Drilling

SUCCESSFUL

WILDCAT

DRILLING

Appraisals • 3D Seismic – better definition of

reservoir

• Delineation Drilling

Exploration Discoveries according to BPMigas

• BEWARE!

• Exploration wells

means wildcat and

appraisal wells

• This does not

show volumes of

discoveries

http://en.indonesiafinancetoday.com/read/28376/Oil-and-Gas-Explorations-Sunk-Cost-Reached-

US-2.4-B-in-2012

Development Phase – Drilling – Processing Facilities – Gathering Station

Cluster System

Gas Processing Sequence

Gas to pipeline

LPG

19 JMA

24803

Transporting PetroleumTransporting Petroleum

Oil FieldOil Field

Oil FieldOil FieldPipelinePipeline RefineryRefinery

PipelinePipeline

Railroad Tank CarsRailroad Tank Cars

Mobil

Tank TruckTank Truck

ConsumersConsumers

Industrial Customers

Industrial Customers

Local DistributorLocal Distributor

Mobil

TankerTanker

Offshore PlatformOffshore Platform

Production Operation

Oil Field Maturity • Primary Recovery Phase (10%-35% RF)

– Natural Flow

– Artificial Lift

• Secondary Recovery Phase (up to 50% RF)

– Introduction of Additional Energy to The Reservoir to Push-

out The Fluid

• Enhanced Recovery Phase (up to 80% RF)

– Introduction Of Thermal, Chemicals, Microbe to The

Reservoir

RF = Recovery Factor

Gas Recovery Factor ≈ 60 - 85%

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Production

Consumption

Indonesia – Oil Production versus

Consumption (000 bbls/day)

Source - BP

Since 2004 Indonesia

is net oil importer

Indonesia – Oil Reserves (MMBO - million barrels)

0

2.000

4.000

6.000

8.000

10.000

12.000

2001 2003 2005 2007 2009 2011

Proven

Potential

Source - PWC

R/P = 11.1 Years

Indonesia – Gas Production versus

Consumption (billion cubic meters /day)

0

10

20

30

40

50

60

70

80

90

1970 1975 1980 1985 1990 1995 2000 2005 2010

Production

Consumption

Source - BP

Indonesia – Gas Reserves (TCF – trillion cubic feet)

Source - PWC

0

20

40

60

80

100

120

140

160

180

200

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Proven

Potential

R/P = 41.2 Years

Unconventional Gas

• Tight Gas Sands

• Coal Bed Methane (Coal Seam

Gas)

• Shale Gas

• Underground Coal Gasification

(UCG)

Unconventional Gas

Underground Coal Gasification

Thank You for

Your Kind Attention