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DEVELOPMENT OF UNCONVENTIONALRESERVOIRS IN PAKISTAN
By
Dr. M. Saeed Khan JadoonOGDCL, Islamabad
APRIL 11, 2011SERENA HOTEL ISLAMABAD
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PROVOKING THOUGHTS
With the nuclear industry in crisis and oilprices on the rise, could the solution toour energy problems be in the ground athome? Daniel yergin on the promise of
shale gas.
He ," states that the turmoil in the middleeast is a "sea change" for the global oil
market and that the U.S.A and emergingmarkets are most economically vulnerableto rising oil prices.
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Outline of Presentation
Objectives Energy out Look Existing Indigenous Resource
International Scenario Conventional & Unconventional Reservoirs Potential of Unconventional Resource Development Model
Economic Consideration Summary
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HOW TO MEET ENERGY REQUIREMENT
OF THE COUNTRY
UNCONVENTIONAL ENERGY RESOURCEAVAILABILITY
DEVELOPMENT PHIL0SPHY
OBJECTIVES
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PakistanEnergy Out Look
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PakistanGas Out Look
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Energy ResourcesAvailable To Us
Indigenous Resources of Oil & Gas
Hydroelectric
Nuclear
Solar & Wind Energy
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Primary EnergySupplies By Source
Oil, 32.1%
Gas, 48.3%
LPG, 0.6%
Coal, 7.6%
Hydro Electricity,10.6%
NuclearElectricity, 0.6% Imported
Electricity, 0.1%
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Pakistan IndigenousNatural Reserves
ConventionalGas- 30 TCF
Oil 436, Million bbls
Tight Gas- 40 TCF Coal -185 Billion Tons
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Sectoral EnergyConsumption By Source
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INTERNATIONAL SCENARIOFOR UNCONVENTIONAL
RESERVOIR
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World Un-Conventional Gas Resource
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WORLDUN-CONVENTIONAL GAS
40-50 TCFPakistan
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European Unconventional Reservoir
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India Shale Gas & CBM Projects
Started work on CBM 1993
Group of experts was formulated to collect and analyzedata.
32 BLOCKS Have been given to different companies
Now India started Production from CBM
Next Few Years, Production will be 38 CM^3/day
ONGC had Recent Discovery of Shale Gas in West Bengal
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Shale Gas Contribution in USA,18 % of the Total Production
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Advance Resources International USA Gas Projectedvalues from different Sources, 2009
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INDIGNEOUS HYDROCARBONRESOURCES
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Indigenous Oil & Gas Reservoirs
Conventional Reservoirs
Sandstone and carbonateReservoirs.
With good reservoir propertieshave good capability of storageand Productivity
Reasonable Efforts forExploration
Explored area is about275,000 Sq km
550,000 Sq km is unexplored Current Production Oil: 60000-66000 bbl Gas: 4.15 BCF
Unconventional Reservoirs
Poor reservoir propertieshave capability of storagebut poor Productivity
Tight Gas Reservoir
Shale Gas Reservoir
Coal Bed Methane
NOT DEVELOPED YET
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Unconventional Reservoir Descriptions
Tight Gas Reservoir
Mostly SandstoneReservoir
Good storage Capabilitybut poor Producibility.
Distributed over LargeArea of Pakistan
Advance TechnologyNeed to Produce
Shale Gas reservoir
Exist in Shale
Source and Reservoir
Good storage Capabilitybut poor Producibility
Distributed over Large
Area of Pakistan
Advance Technologyneed to Produce
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Unconventional Reservoirs
COAL BED METHAN(CBM)
Gas is generatedduring Coalification
Process
Gas Adsorbed on theCoal
Very poor conductivity
Distributed over Sindh& Punjab Province
Word 10 % CoalDeposits are in Sindh
Total Deposits are 185billion tone.
Not developed Yet
No Conclusive Work
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Known Tight Gas Reservoirs
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Shale Sequence in Pakistan
Ghazij Shale Thickness (meters)
Vastly Distributed- 100 -1200
Thalar Shale Vastly Distributed – 45 – 184
Samber Shale Vastly Distributed – 500- 600
Chichali Shale Vastly Distributed – 35 – 130
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Ghazij Shale Distribution
0
0
0
7 5
7 5
7 5
7 5 75
7 5
1
5 0
1 5 0
1 5 0
15 0 1 5
0
15 0
2 2 5
2 2 5
2 2 5
2 2 5
2 2 5
2 2 5
2 2 5
3 0 0
3 0 0
3 0 0
3 0 0
300
3 0 0
300
3 7 5
3 7 5
3 7 5 3 7 5
375
3 7 5
4 5 0
4 5 0
4 5 0 4 5 0
450
4 5 0
5 2 5
5 2 5
5 2 5
525525
525
6 0 0
6 0 0
6 0 0
6 0 0
6006 0 0
600
6 7 5
6 7 5 675
6 7 5
675
6 7 5
6 75
7 5 0
7 5 0 7 50
7 5 0
750
7 5 0
750
8 2 5
8 2 5
8 2 5
8 2 5
8 2 5
8 2 5
8 25
1275
1 2 7 5
1275
1 2 7 5
1 2 0 0
9 0 0
9 0 0
9 0 0
9 0 0
9 0 0
9 0 0
9 0 0
1200
1 2 0 0
1 2 0
0
1 2 0 0
1 2 0 0
1 2 0 0
1 2 0 0
1 1 2 5
1 1 2 5
112 5
11 25
1 1 2 5
1 1 2 5
1 1 2 5
112 5
1 1 2 5
1125
9 7 5
9 7 5
9 7 5
9 7 5
9 7 5 9 7 5
9 7 5
1050
1 0 5 0
1 0 5 0
1 0 5 0
1 0 5 0
1 0 5 0
1 0 5 0
1 1 2 5
1 1 2 5
1 0 5 0
1 0 5 0
1 0 5 0
1 0 5 0
1050
9 7 5
9 7 5
9 7 5
9 7 5
9 0 0
9 0 0
Dhodak
Pirkoh
LotiZin
Uch
Jhal_Magsi
Sara_West
Badar
Qadirpur
340000 360000 380000 400000 420000 440000 460000 480000 500000 520000 540000 560000 580000 600000 620000 640000 660000
3 0 4 0 0 0 0
3 0 6 0 0 0 0
3 0 8 0 0 0 0
3 1 0 0 0 0 0
3 1 2 0 0 0 0
3 1 4 0 0
0 0
3 1 6 0 0 0 0
3 1 8 0 0 0 0
3 2 0 0 0 0 0
3 2 2 0 0 0 0
3 2 4 0 0 0 0
3 2 6 0 0 0
0
3 2 8 0 0 0 0
3 3 0 0 0 0 0
3 3 2 0 0 0 0
3 3 4 0 0 0 0
3 3 6 0 0 0 0
3 3 8 0 0 0 0
3 4 0 0 0 0 0
3 4 2 0 0 0 0
3 4 4 0 0 0 0
0 5 0 00 1 0 00 0 1 5 0 00 2 0 00 0 2 5 0 00 3 0 00 0 m
1:420000
0751502253003754505256006757508259009751050112512001275
Thickness
Pakistan
Ghazij Shale
Scale
Contour inc 1:420000
75
GHAZIJ SHALE ISOCHORE MAP
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Talhar Shale
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Ghazij Area
Chichali Area
Talhar Area
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Coal Fields in Pakistan
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Gas Potential in these Reservoirs
Source: Weatherford 2010
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Unconventional GasResource
Tight Gas 40-50 TCF
Ghazig Shale Gas 20-30 TCF
Talhar Shale Gas 100 TCF
Coal Bed Methane 21 TCF
(Recoverable- Cathy Oil Canada)
Samber Shale
(Moin PPL) 60-80 TCF
TOTAL 241-281
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Development Challenges
Evaluation Uncertainties
High Investment
Longer Production Time
Longer Payout Time
High Density of wells
Skilled Manpower
Environmental Issue
Political Stability
Will to Accept Challenges
Resolvable Success
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Availability of Technology In World
Vertical & Horizontal well
Multilateral Wells
Hydraulic Fracturing
Stimulation Techniques
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Multilateral Wells
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DEVELOPMENT PHILOSPHY
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Development Model-Integrated Approach
GOVT
DistributionCompanies
ManufacturingIndustries
PowerProducer
ExplorationCompanies
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Exploration & Production Companies
Should Invest to Explore Tight and Shale gas
Exploration area for Tight and Shale Gas should beawarded to the companies
Price Incentives have been given
Freedom of Marketing of Gas to the Consumer
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Manufacturing & Power Industries
Should have direct access to Energy Producer
Should have option of buying gas from Producer & paying Tariff to the distribution company for usingthe network if required
Reference Price should be according to theconcession area
Distribution Companies should effectively assistfor supply of gas to Industries
Consortium of Industry units to share the cost of energy.
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Cost Effective Buisness Model
Exploration Companies- Consortium Work Program for next 3-4 years
• Drilling of Vertical, horizontal & Multilateral
• Hydraulic Fracturing/Stimulation jobs
Service Providers-Consortium• Bring Relevant Technology
• Efficient Execution of jobs
• Cost effective Solution
Human Resource Development---Serious Consideration
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Need consortium of industry units for sharing of their cost of energy
No Misuse of Freedom
No Monopolization of any company weather it isservice or distribution companies.
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ECONOMIC EVALUATION
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Production Challenge
Reference: Weatherford 2010
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Probable Production Behavior
Brown Field with 8 year development
0
20
40
60
80
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Years of production
G a s M M S C F D
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Economic Model for Tight & Shale Gas(Brown Field )
GIIP: 1 TCF Recoverable Reserves: 240 BCF Number of wells: 25 Failure: 10%
Gas Flow Rate: 5MMSCFD Development Time: 2 year Well Capex $: 478 Million Facilities: 50 Million Opex: 147 Million Field Life: 25 year
GAS Price: $ 4.90/MMBTU IROR: 15 % Pay back: 8.5 year Royalty &Tax Included
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Economic Model for Tight & Shale Gas(Green Field )
GIIP: 1 TCF Recoverable Reserves: 240 BCF Number of wells: 25 Failure: 10 % Gas Flow Rate: 5MMSCFD
Development Time: 5 year Well Capex $: 478 Million Facilities: 124 Million Opex: 147 Million Field Life: 25 year GAS Price: $ 6.21/MMBTU
IROR: 15 % Pay back: 6.5 years
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SUMMARY
Enough unconventional Reservoir existin the country
Unconventional Reservoirs are required to
be evaluated by collection of more data byinitiating Pilot Projects in Shale Gas asearliest as possible.
Exploration blocks may be awarded for
unconventional reservoirs.
Economically, Projects in Shale & TightGas looks viable.
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Human Resource Development to cater the
demand of oil companies operating in Pkistan
Introduction of consortium concept of E & Pcompanies for the planning of their work
Consortium of Service companies for costeffective solution of development of theseReservoirs.
Integrated Approach of all the stack holder isrequired to develop these unconventionalReservoirs
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