ISO 9001:2008

CCOP - KIGAM Unconventional Oil and Gas Resources Project: Assessment of Shale Energy resources in Asia (UC Project Phase II)

National Coordinators Meeting & Workshop (UC10)

24-26 April 2018, Bangkok, Thailand

Unconvetional Oil and Gas Exploration Activities in Vietnam

• VPI 2018

ISO 9001:2008

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Content

I. Overview

II. Main geological features of Vietnam and adjacent

III. Unconventional Oil and Gas exploration activities

IV. Conclusion

Unconvetional Oil and Gas Exploration activities in Vietnam

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Overview Geology of Vietnam and adjacent

I Precambrian continental blocks

II Sino-Vietnam fold belt consolidated at Early-Middle Paleozoic

III Viet-Laos fold belt consolidated at Middle-Late Paleozoic

IV

Mesozoic superimposed depression: Triassic; Late Triassic – Jurassic; Late Triassic – Cretaceous;

V

Cenozoic superimposed depression VI

Indochina fold belt at Late Triassic;

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General Stratigraphic column

Overview Geological map of Vietnam

1

2

3

4 5

6

7 1 2 3

4 5 6 7

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Tây Nam Bộ

5 areas were proposed for Oil and Gas exploration (Data base : magnetic, gravity, wells, samples / geological maps of 1:200.000 and larger scale)

Unconventional Oil and Gas Exploration Mesozoic-Paleozoic sediments

1. An Chau

5. Nong Son

3. Ban Đon

4. South-West

2. North-West 6. Hanoi trough

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Unconventional Oil and Gas Exploration North-Western area – Dien Bien Phu

• Organic Matter/TOC poor – medium

• S1 (0,17-68,55) • S2 (1,45-76,77) • HI (9-551), Tmax (430-465oC)

• Asphalt in carbonate rocks (Nui lich mountain)

Source rocks

Reservoirs

Seals

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Sediment with thick shale/coal layer in the Nông Sơn formation (T3n-r ns), thickness about 650m

Unconventional Oil and Gas Exploration Nông Sơn areas – Centre of Vietnam

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Bản Đôn and adjacent areas Unconventional Oil and Gas Exploration

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Phú Quốc area, Offshore, Việt Nam Unconventional Oil and Gas Exploration

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Coal and CBM potential

– Depth of coal seams: 1000-2000m – Component of coal: Vitrinit: 85 ÷ 90%,

Inertinit: 1 ÷ 3%; Liptinit: 7 ÷ 8%; – Estimated coal in place: 210. 000 MM Ton

• 11.000 MM Ton with high confidence • 175.000 MM Ton (defined by some

controlled wells); • 22.000 MM Ton (analogue).

– Potential of Central area: 71.000 MM Ton

• 11.100 MM Ton with high confidence • Remains , defined by controlled wells

– CBM (methan >80%): 5-10m3/Ton

CBM exploration in Hanoi trough Unconventional Oil and Gas Exploration

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Mezozoi - An Chau, Quang ninh Unconventional Oil and Gas Exploration

Collecting old data & sample

New data acquisition: • Magnetic, gravity • Seímics • Sampling (solid & fluid)

from wells, surface survey.

An Chau Basin is a Mesozoic intercontinental rifting basin consists of Triassic, Jurassic and Cretaceous continental clastic and igneous rocks. The total thickness is 2,000-5,000m •First stage: late Permian - early Triassic: forming intercontinental rifting basin •Second stage (main forming phase): Triassic terrestrial sediment filling in basin. In middle Triassic, volcanic actives at both north and east north, southern part. •Third stage: terrestrial sediment filling such as swamp, lake, fluvial deposition. Forming coal thick bedding at the eastern side.

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Mezozoi - An Châu, Quang ninh

Paleozoic, Mesozoic and Cenozoic sediments.

Crystallized basements were highly metamorphosed during Caledonian tectonic phase, quartzite and sericite rocks are dominant…

Paleozoic sediments are Devonian to Permian clastic, Carbon- Permian carbonates are strongly weathered and fractured.

Sediment fills are continental clastic, clastic-carbonate with >5000m thickness.

Unconventional Oil and Gas Exploration

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Stratigraphy column

Lower Triassic (T1):Lang Son formation (T1 ls): exposed in Southwest area of An Chau basin. It overlies conformably upon Permian sediments. Lithology mainly consist of sandstone, siltstone, shale and marl interbedded.

Middle Triassic (T2): Included clastic, shallow marine deposition and intrusive, extrusive.

Upper Triassic (T3): continental sediment, coal bedding,

Jurassic: Continental sediment with fluvial deposition. It could be a potential reservoir

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Well location

An Chau Basin boundary Cross section Early Triassic 1 shale exposed area

HaNoi

Shale exposed area

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Thin Coaly shale layers deposited in the lacustrine covered by sandstones in the area Bac Giang (Mau Son T3c ms)

Geochemistry analysis in An Chau area

– Shale stone of Bãi Cháy formation

(P3w bc), about 200m thickness. – Coaly shale and coal of Hòn Gai

formation (T3n-r hg), about 2.100 - 3.400m thickness.

Quảng Ninh area: high potential of CBM and shale gas

Mezozoi - Sông Hiến, An Châu, Quang ninh

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Unconventional Oil and Gas Exploration

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Core samples

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Geochemical and lithology analysis data

No Sample X Y Depth Formation TOC S11 LK02A 21˚24'24.48"N 106˚22'26.71"E 55m T1ls 0.63 0

2 L03 21˚40'7.99"N 106˚42'57.48"E 89m T1ls 0.16 0

3 L05 21˚17'1.22"N 106˚54'40.40"E 79.3m T3n-rvl1 2.63 0.01

4 LK05 21˚17'1.22"N 106˚54'40.40"E 14m T3n-rvl1 3.77 0.01

5 LK08A 21˚15'5.41"N 106˚56'50.99"E 62m T3n-rvl2 1.32 0.01

6 LK09 21˚17'38.35"N 106˚59'51.03"E 69m T3n-rvl1 3.56 0.01

Depth Formation TOC S1 S2 S1+S2 Note55m T1ls 0.63 0 0.01 0.01 Core sample

89m T1ls 0.16 0 0 0 Core sample

79.3m T3n-rvl1 2.63 0.01 0.02 0.03 Core sample

14m T3n-rvl1 3.77 0.01 0 0.01 Core sample

62m T3n-rvl2 1.32 0.01 0.01 0.02 Core sample

69m T3n-rvl1 3.56 0.01 0.01 0.02 Core sample

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Organic-rich shale

Total Organic Carbon (TOC): 0.5-2% Organic type: Organic is poorly, Type III, low S2 value

Three potential Source Rocks within the Lower Devonian, Lower & Upper Triassic sequences:

1) Mia Le Formation (D1 ml) 2) Lang Son Formation (T1 ls) 3) Van Lang Formation (T3 n-r vl)

It show: Good S.R. characteristics, High/Over maturity in mostly of the An Chau Basin An Chau area could be candidate for gas shale,

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Net mature shale volume T3

19

Using cut off Ro>2% for T3 shale maturation, net mature shale volume ~ 9km3

Net mature shale volume

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Free gas in place GRV x N/G x Porosity x (1-Sw) x (1/Bg)

GRV (m3) N/G Porosity Sw Bg9,000,000,000 0.12 0.017 0.3 0.00413

GRV: shale assumed with 1000m of thickness N/G: Assume 20% of shale in T3 formation Porosity, Sw, Bg using temperature and pressure at depth around 2-3km Results: Free gas in place volume: 5.18*109m3 (0.18TCF)

Adsorbed Gas-in-Place GRV x density (g/cm3) x G (m3/ton)

GRV (m3) Density G (m3/ton)1,800,000,000 2.6 2.4

GRV: shale assumed with 1000m of thickness Density and absorbed gas content of shale (G) analogue used Results: Free gas in place volume: 11.2*109m3 (0.4TCF) Total gas in place volume of T3 shale : 0.18+0.4=0.58 TCF

Total gas in place volume T3

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CONCLUSION

• Vietnam geology is vey complicated, 5 areas are considered as high shale gas potential areas. Anchau is the most attractive area and is being explored. Other areas need to be invested more because they are still in early stages of exploration.

• CBM is also considered as an exploration target, primary result show that in the most attractive area of Hanoi trough the CBM potential is not so high as expected, therefore Shale gas, tight sand and CBM should be considered

• In the An Chau basin, Source rocks were found in the be Lower Triassic, upper Triassic section. Source rocks is highly matured, therefore value of TOC, S2 is low. With current data and assumption, gas potential in the An Chau basin seem to be low. Further studies is need such as 2D seismic survey, well drill, 2D-3D modeling

ISO 9001:2008

Thank for your attention!