Day 1 PM B 1 MOGE Where to Find Oil

5/27/2018 Day 1 PM B 1 MOGE Where to Find Oil

1/31

WHERE SHALL WE GO TO FIND OIL

AND GAS DISCOVERY ESPECIALLY IN

MYANMAR ONSHORE BLOCKS?

MYANMAR OIL & GAS WEEK 2014

KYAW KYAW AUNG

EXECUTIVE GEOLOGIST

MOGE

25-26 February 2014, Yangon, Myanmar


2/312

WHERE SHALL WE GO TO FIND OIL AND GAS

DISCOVERY ESPECIALLY IN MYANMAR

ONSHORE BLOCKS?

2


3/313

Outline

1. Introduction

2. Sedimentary Basins

3. Historical Exploration and Production4. Commercial Discovery

5. Possible Future Bidding Round

6. Prospective Blocks

7. Conclusion

3


4/314

1. Introduction

Information of Drilling and Production.

Onshore Explorations are still not in the line of success.

Easy Oil extracted from shallow and medium has gone.

Need to know challenges and poor conditions.

Suggestion only based on individual concepts.

4


5/315

2. Sedimentary Basins

5


6/316

2. Sedimentary Basins (Contd)SR NO. OIL & GAS FIELDS YEAR OF DISCOVERY

1 YENANGYAUNG 1887

2 AYADAW 1893

3 CHAUK 19024 PAYAGON 1959

5 MYANAUNG 1964

6 PYAY 1965

7 SHWEPYITHA 1967

8 PYALO 1969

9 MANN 1970

10 LETPANDO 1974

11 PEPPI 1976

12 HTAUKSHABIN 1978

13 HTANTABIN 1980

14 KANNI 1985

15 APYAUK 1991 (Shell)

16 KYAUKKWET/LETPANDO 1995

17 INDAING 1996

18 DAHATPIN 1998

19 NYAUNGDON 1999 (MOGE)

20 THARGYITAUNG/SABE 2001

21 HTANGAING 2007 6


7/317

Sr. Company Block No. Field/Area Basin Remarks1. MPRL MOGE-2(North) Mann field CM Found no new oil reservoir

2. GOLDPETROL MOGE- 1 Yenangyanug field CM Found no new oil reservoir

IOR- 2 Chauk field CM Found no new oil reservoir

3. SIPC PSC-D Mahudaung CM Found discovery but not

yet Commercial Scale

4. PCML RSF-2 Tuyintaung-Myaing CM Relinquished by CAL

RSF-3 Gwegyo-Ngashantaung CM Relinquished by CAL

5. GIS RSF-1 Letpando field CM Just started JOA operation

6. DAEWOO RSF-7 Padan CM Just started MOA operation

MOGE-8 Pauk-Leya CM Just started MOA operation

7. ENI RSF-5 Ondwe CM Will start operation in 2014

2. Sedimentary Basins (Contd)Current Activities carried-out by MOGE and Foreign Companies in Petroliferous basins

7


8/318

Sr. Company Block No. Field/Area Basin Remarks

8. MPRL IOR-4 Pyay oil field Pyay EBM Relinquished by CAL

9. Petronas IOR-5 Htantabin field Pyay EBM MOGE suspended field

10. MPRL IOR-6 Myanaung field Pyay EBM MOGE active field

11. Petronas IOR-7 Shwepyitha field Pyay EBM MOGE active field

12. PTTEP MOGE-3 Natmi Pyay EBM Rilinquished by Exspan

13. Brunei EP-1 Mindon Pyay EBM MOGE drilled test wells

14. ONGC EP-3 Shwegu Pyay EBM MOGE drilled test wells

15. Berlanga EP-4 Mayaman (Pyay_West) Pyay EBM MOGE drilled test wells

16. CAOG MOGE-4 Myintha Pyay EBM MOGE drilled test wells

17. GEOPETROL SF-9 Pyalo-Paukkaung Pyay EBM MOGE suspended fields

2. Sedimentary Basins (Contd)

8

Current Activities carried-out by MOGE and Foreign Companies in Petroliferous basins


9/31

9

MOGE and many International companies carried out someextent of explorations throughout Myanmar.

7 prominent historical explorations in CMB and Pyay

Embayment.

1. SIPC in block-D

2. MOGE in Letpando/Kyaukkwet

3. Goldpetrol in Yenangyaung/Chauk

4. MPRL in Mann5. FEL in Htaukshabin/Kanni

6. CAL in Pyay

7. MOGE in RSF-6/8

3. Historical Exploration and Production

9


10/31

10

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

22000

24000

26000

28000

30000

32000

34000

1974-75

1975-76

1976-77

1977-78

1978-79

1979-80

1980-81

1981-82

1982-83

1983-84

1984-85

1985-86

1986-87

1987-88

1988-89

1989-90

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

DailyAverageB

OPD

Crude Oil Production History of Myanmar

"Onshore"

"Offshore"

3. Historical Exploration and Production (Contd)

10


11/31

11

0

100

200

300

400

500

600

700

800

900

1000

1100

1200

1300

1400

1974-75

1975-76

1976-77

1977-78

1978-79

1979-80

1980-81

1981-82

1982-83

1983-84

1984-85

1985-86

1986-87

1987-88

1988-89

1989-90

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

DailyAveragemmscf

Natural Gas Production History of Myanmar

"Onshore"

"Offshore"

3. Historical Exploration and Production (Contd)

11


12/31

12 12

Sr.

NoName of Oil/Gas Field

Discovery

Year

Daily Production Rate

Oil

(BOPD)

Gas

(MMSCFD)1 Yenangyaung (Goldpetrol) 1887 1940 0.280

2 AYADAW 1893 2 1.795

3 Chauk/Lanywa(Goldprtrol) 1902 1206 0.202

4 Myanaung (MPRL) 1964 35 0.111

5 Pyay (MPRL) 1965 86 0.101

6 Shwepyithar (Petronas) 1967 89 0.324

7 Mann (MPRL) 1970 1523 1.608

8 LETPANDO 1974 1022 0.127

9 PEPPI 1976 0 0.363

10 HTAUKSHABIN 1978 592 2.179

11 KANNI 1985 619 0.223

12 APYAUK 1991 28 5.942

13 KYAUKKWET 1995 28 9.817

14 NYAUNGDON 1999 259 19.014

15 THARGYITAUNG/SABE 2001 221 4.46616 MAUBIN(SOUTH) 2006 10 9.934

17 HTANGAING/DAHATPIN 2007 90 0.004

Onshore Total 7750 56.490

18 SHWE 2004 0 211.429

19 YADANA 1982 0 434.797

20 YETAGUN 1992 10484 169.074

Offshore Total 10484 815.300

Grand Total 17895 871.790

3. Historical Exploration and Production (Contd)Current Oil and Gas Production of Myanmar


13/31

13

4. Commercial Discovery

No significant oil field has been discovered within 2

decades (1990 to 2013).

Although some of the potential oil fields likeYenangyaung, Chauk, and Mann had been operated

by the foreign oil companies, production before

IPR/PCC contract can no longer be maintained.

We need to wait and see the new discovery till to

next 5 years at least.

13


14/31

14

1. RSF-1 (Letpando and Kyaukkwet Fields)

2. RSF-6 (Htangaing/Dahutpin Fields)

3. RSF-8 (Yenanma Field)

4. MOGE-2(South) (Htaukshabin-Kanni-PPI)

5. MOGE-5 (Apyauk-Nyaungdon, MaUBin)

6. IOR-1 (Thargyitaung, Sabe, Ayadaw Fields)


(Onshore)

I. MOGE Stand-Alone Operating Blocks

(6 Nos)

RSF-1

IOR-1

MOGE-2(S)

RSF-6 & 8

MOGE-5

14


15/31

15

5. Possible Future Bidding Round (Contd)

Is there any Plan in MOE to Release MOGEs Onshore Fields in the Next Bidding Round?

Not known yet whether to release active fields in the next bidding round or not.

To release current operating fields with PSC or IOR contracts in the future biddinground will be one of the key issues to be discussed seriously between MOE, EPD and

MOGE.

It is sure that the Unconventional Exploration to be introduced in MOGEs field is

highly interested by MOE.

The Management will plan to visit to Thailand to learn the contract model, terms and

conditions of the Unconventional Exploration.

Once the Managements come to know about PSC model and T & C of Unconventional

Exploration, the blocks occupied by MOGE could probably be released with

Unconventional PSC contract in 2014.

Currently, an Australian Company (Tamboran) cooperated with local Myanmar

Company has already submitted a proposal to carry out feasibility study for

Unconventional Exploration in Htaukshabin/Kanni fields. No response from MOE has

been given to Tamboran yet as the idea of Management is to bring all the PSC

operations by International tendering process.

15


16/31

16

What are the BlocksReserved for MOGE

till 2014?


1.PSC-P (Myaungmya)

2.PSC-Q (Payagon)

3.MOGE-6 (Indaing)4.MOGE-7 (Myanaung East)

These 4 Blocks can be released

with PSC contract in the 3rd

Bidding Round Onshore (2014)since MOGE can no longer

retain those blocks for MOGEs

reserves without doing

anything by themselves or

Foreign Companies.

PSC-P PSC-Q

MOGE-6

MOGE-7

II. MOGE Reserved Blocks

(4 Nos)

16


17/31

17

Onshore Blocks already left remainafter 2nd Bidding Round 2013.


1. PSC-C2 (Shwebo-Monywa)

2. PSC-L (Sittwe)

3. PSC-M (Kyaukphyu)

4. PSC-S (Hsipaw-Lashio)

5. PSC-T (Lashio East)

6. PSC-U (Kalaw)

7. PSC-V (Loikaw)

8. IOR-3 (Tetma)

These blocks will be released

definitely in the 3rd Bidding Round.

III. Remaining Blocks

(8 Nos)

17

5 P ibl F t Biddi R d


18/31

18


(Offshore)

Which Offshore blocks will be left remain in the next Bidding Round?

Offshore Shallow Water Blocks recently

terminated

1. A-2 (ESSAR)

2. M-1 (Rimbunan)

3. M-10 (CNOOC) No one can know how many shallow

and deep water blocks will be left

remain after completion of 1st Bidding

Round

The list of awarded companies andblocks will be announced probably by

the first week of March 2014

The 2nd Bidding Round (Offshore) can

be possible in early 2015, we guess.

A-2

M-1

M-10

18


19/31

19

6. Prospective BlocksI. MOGE Operating Blocks (RSF-1, 6, 8, MOGE-2, 5, & IOR-1)

1. Letpando- Kyaukkwet Oil and Gas Field (RSF-1)

2. Htaukshabin-Kanni- Peppi Oil and Gas Field (MOGE-2_South).

1. Letpando-Kyaukkwet Oil and Gas Field (RSF-1)

MOGE has signed JOA with GIS company on March 8, 2013. The objective is to

boost up the oil production from the shut-in wells and low caliber wells by using

the USRHD technique. If this technique is proved to achieve the incremental

production from 5 pilot wells, MOE will continue JOA carrying out the next

batch in cooperation with GIS.

Besides, MOGE allowed another local Myanmar company (Parami) cooperated

with a foreign services company (Weatherford) to conduct the production

optimization operations using the special products of Weatherford. If there

were significant increase in oil production in Letpando Oil Field by using

Weatherfords equipments, MOGE will consider to utilize the equipmentsmanufactured by the Weatherford company.

So that, both Letpando and Kyaukkwet Oil and Gas fields can be involved

continuously with joint operating companies. We think that MOGE will not

consider to call on tender for participating in EOR or IPR operations in Letpando-

Kyaukkwet fields. 19

( )


20/31

20

2. Htaukshabin-Kanni- Peppi Oil and Gas Field (MOGE-2_South)

After Focus Energy Limited relinquished the block, MOGE , stand-alone had been

operating the fields since 2009.

Many of oil and gas companies are quite interesting to work together with

MOGE. Many EOR proposals have been submitted to MOE by PTTEPI, Daewoo,

and Petronas. And also, some Myanmar companies have approached to MOGE

to work in these fields with PCC Contract during 2009 to 2013. Daewoo and

Tamboran have tried to get these fields to work with unconventional shale gas

exploration.

MOGE have signed MOA only with Daewoo to carry out feasibility study of

Unconventional Exploration in Blocks RSF-7 and MOGE-8 instead of Htaukshabin-

Kanni Oil Field since 2 years ago. It does not mean that MOGE is awarding 2blocks to Daewoo to work with PSC without invitation for International

tendering. It is just only MOA to enable to issue a FSR.

Tamboran (Australian Company) who wishes to carry out feasibility study for

Unconventional Exploration in Htaukshabin/Kanni areas has not got any

permission from MOE so far.

6. Prospective Blocks (Contd)

I. MOGE Operating Blocks (RSF-1, 6, 8, MOGE-2, 5, & IOR-1) Contd

20


21/31

21

3. Thargyitaung-Sabe-Ayadaw Oil and Gas Fields

Narrow and very elongated Oil and Gas Fields.

Very limited reservoirs are prevalent in Thargyitaung-Sabe Fields having

thin column of oil since gas is almost directly contacted with water.

Ayadaw field had been producing mainly gas from the sub-thrust

reservoirs since 1972. Primary recovery has been gone except to expect

the prospects of deeper horizons only.

The production testing results of deeper horizons (Eocene Sandstones)

tested in Letpando-Kyaukkwet Field, Block-D in the north of Letpando and

MOGE-1 (Chauk Oil field) are not so much encouraging.

No EOR or IPR or even PSC operations to be conducted in these fields arerecommended.

Unconventional technique should be used to produce the oil

commercially from the tight sand reservoirs which are well developed in

this block.

6. Prospective Blocks (Contd)I. MOGE Operating Blocks (RSF-1, 6, 8, MOGE-2, 5, & IOR-1) Contd

21


22/31

22

4. Apyauk- Nyaungdon- Ma U Bin (South) Oil and Gas Field (MOGE-5)

These fields have been producing mainly gas from the stack

sandstone reservoirs.

Now, 2 fields like Apyauk and Nyaungdon are at the stage of

depletion .

MOGE and EPD have no practice of releasing a gas dominated

field to work together with an International company against the

IPR Contract since before.

Nobody can predict closely whether MOGE can consider to bring

the gas fields into the next bidding round or not .

Not preferable fields compared to RSF-1 (Letpando-Kyaukkwet)

and MOGE-2_South (Htaukshabin-Kanni-Peppi).


22


23/31

23

5. Htangaing-Dahutpin Oil Fields (RSF-6) and Yenanma field (RSF-8)

Oil has been producing from both shallow wells and hand-dug

wells.

Due to no occurrence of indication of hydrocarbon from MOGE

wells drilled to 9000 ft, possibility of finding oil commercially

from the deeper horizons would become less.

However, if MOGE would change their mind to release this oil

producing block to work together with PSC, it is suggested to bid

for petroleum exploration .

No EOR or IPR or PCC operations to be conducted in Yenanma

field (RSF-8) are recommended.


23

( )


24/31

24

Summary for MOGEs Operating Blocks

There will be no tender invitation for EOR or IPR operations in

MOGE operating fields in the next bidding round, 2014.

As the Ministry of Energy is quite interesting in Unconventional

Exploration and Production nowadays, the Foreign companiesshould have to pay their attention in presenting new techniques

that would become well known to MOGE.

MOE and MOGE are now rushing to be acquainted with the

contract model, terms and conditions of UnconventionalExploration and within 2014, the International Bidding for the

Unconventional PSC Blocks (onshore) will be announced in

conjunction with conventional PSC officially.


24

i l k ( d)


25/31

25

PSC-P and Q are always reserved for MOGE future operations.

Today, gas production from onshore is significantly decreasing and

there is no commercial gas discovery after the year 1999.

Most of the gas produced from Onshore is utilized for NGV and it

will be very disappointing for all of us when NGV would stop due

to shortage of onshore gas.

Therefore, within the Management of MOGE, there will be a

serious discussion whether to release these blocks in the next

Bidding Round or not.

Near the vicinity of PSC-P and Q, there existing huge discoveries

of Yadana and Aungsinkha in Offshore that had been operated by

Total and PTTEPI.


II. MOGE Reserved Blocks (P, Q, MOGE-6 & 7)

25

6 i l k (C d)


26/31

26


III. Remaining Blocks (PSC-C2, L, M, S, T, U, V, & IOR-3)

Blocks PSC-S, T, U and V are in the Intermountain Basins.

International companies did not express their strong interest in

the 2nd Bidding Round 2011.

The block IOR-3 was also dislike by the 2nd Bidding Round

bidders. MOGE and CAL did a lot of seismic, drilling, and

production operations having no commercial production of the

field.

The block C-2 was operated by CNOOC who drilled (5) wells

without testing in (3) wells and with hydraulic fracturing in (2)wells. Due to occurrence of lithic sandstone reservoir in both

shallow and medium depth, testing were not successful except

finding traces of hydrocarbon.

26

6 P i Bl k (C d)


27/31

27

ESSAR carried out 3D seismic and drilled one exploratory well to about

10000 ft in block-L.

As the monsoon comes earlier, the well has been plugged back and

abandoned without testing.

Narrow weather window and difficult transportation for heavy

equipments led to prolonging operation period.

Lots of problem such as shale caving, gas cut, and loading mud density

using barites created the drilling operation delay and caused the

formation damaged.

CNOOC drilled (6) wells to shallow and medium depths in block-M

having no commercial oil and gas reserves.

Block-M is situated on an island and all the difficulties found in block-M

are similar to those in Block-L, for example narrow operational window,

poor accessibility and subsurface drilling problems.

No recommendation to be interested in these 2 blocks.


III. Remaining Blocks (PSC-C2, L, M, S, T, U, V, & IOR-3) Contd

27

6 P ti Bl k (C td)


28/31

28

6. Prospective Blocks (Contd)Remaining Offshore Blocks (A-2, M-1, M-10)

28

No one knows exactly how many shallow and deep water blocks

will be left remain after completion of 1st Bidding Round.

In case of no block left remain, only blocks A2, M1 and M10 will be

included in the next Bidding Round.

There is no doubt that the oil companies have carried out E & Poperations in the areas with their best efforts.

ESSAR drilled one exploratory well to about 15000 ft in block-A2

without doing production testing, Rimbunan drilled a well to a

depth of 7000 ft in block M1 with no testing. After the first welldrilling, additional 2D seismic acquisition was conducted to look

for the prospect of the 2nd well. But subject to the poor results of

seismic, block M1 was relinquished without drilling 2nd well.

6 P ti Bl k (C td)


29/31

29

6. Prospective Blocks (Contd)Remaining Offshore Blocks (A-2, M-1, M-10) Contd

CNOOC drilled 6 wells to the depths of 6000 7000 ft.

According to their testing results, reserves estimate of discovery

sand found at those depths are likely to be too less than their

economic size.

Attempts to firm out the block failed and attempts to carry onproduction by using process of floating LNG failed, too.

My feeling is that block M10 will be the most interesting block

among 3 blocks as it is close to M9 of which Zawtika gas field is

going to get the first gas in early 2014. Why not drilling down the deeper depths to find the potential of

deeper reservoirs that can yield a better production against higher

flowing pressures rather than shallow reservoirs.

29

7 C l i


30/31

30

7. Conclusion

Interest of oil companies are still rising.

No significant gap in advanced technologies.

No new discovery of oil on land till 2013.

No doubt upon the state-of-the-art technologies.

No need to consider about the blocks occupied by respective

companies. For IOR or Unconventional PSC, RSF-1 will be the priority.

Among open PSC onshore blocks P & Q will be the most priority.

Block M10 relinquished by CNOOC is the most interesting among 3

shallow water blocks L, M1 and M10.

Currently, E & P in deepwater blocks activities will be at very initial

stage in Myanmar offshore.

30


31/31

31

THANK YOU

Date post:	17-Oct-2015
Category:	Documents
Upload:	mehedi-hasan
View:	48 times
Download:	2 times

Day 1 PM B 1 MOGE Where to Find Oil

Documents