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DEVELOPMENT OF UNCONVENTIONAL RESERVOIRS IN PAKISTAN By Dr. M. Saeed Khan Jadoon OGDCL, Islamabad APRIL 11, 2011 SERENA HOTEL ISLAMABAD. PROVOKING THOUHHTS.
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DEVELOPMENT OF UNCONVENTIONAL RESERVOIRS IN PAKISTANByDr. M. Saeed Khan JadoonOGDCL, IslamabadAPRIL 11, 2011SERENA HOTEL ISLAMABAD
PROVOKING THOUHHTS • With the nuclear industry in crisis and oil prices on the rise, could the solution to our energy problems be in the ground at home? Daniel yergin on the promise of shale gas. • He ," states that the turmoil in the middle east is a "sea change" for the global oil market and that the U.S.A and emerging markets are most economically vulnerable to rising oil prices.
Outline of Presentation • Objectives • Energy out Look • Existing Indigenous Resource • International Scenario • Conventional & Unconventional Reservoirs • Potential of Unconventional Resource • Development Model • Economic Consideration • Summary
OBJECTIVES • HOW TO MEET ENERGY REQUIREMENT OF THE COUNTRY • UNCONVENTIONAL ENERGY RESOURCE AVAILABILITY • DEVELOPMENT PHIL0SPHY
Energy Resources Available To Us • Indigenous Resources of Oil & Gas • Hydroelectric • Nuclear • Solar & Wind Energy
INTERNATIONAL SCENARIO FOR UNCONVENTIONAL RESERVOIR
40-50 TCF Pakistan WORLDUN-CONVENTIONAL GAS
India Shale Gas & CBM Projects • Started work on CBM 1993 • Group of experts was formulated to collect and analyze data. • 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
Advance Resources International USA Gas Projected values from different Sources, 2009
Conventional Reservoirs Sandstone and carbonate Reservoirs. With good reservoir properties have good capability of storage and Productivity Reasonable Efforts for Exploration Explored area is about 275,000 Sq km 550,000 Sq km is unexplored Current Production Oil: 60000-66000 bbl Gas: 4.15 BCF Unconventional Reservoirs Poor reservoir properties have capability of storage but poor Productivity Tight Gas Reservoir Shale Gas Reservoir Coal Bed Methane NOT DEVELOPED YET Indigenous Oil & Gas Reservoirs
Tight Gas Reservoir Mostly Sandstone Reservoir Good storage Capability but poor Producibility. Distributed over Large Area of Pakistan Advance Technology Need to Produce Shale Gas reservoir Exist in Shale Source and Reservoir Good storage Capability but poor Producibility Distributed over Large Area of Pakistan Advance Technology need to Produce Unconventional Reservoir Descriptions
COAL BED METHAN (CBM) Gas is generated during Coalification Process Gas Adsorbed on the Coal Very poor conductivity Distributed over Sindh & Punjab Province Word 10 % Coal Deposits are in Sindh Total Deposits are 185 billion tone. Not developed Yet No Conclusive Work Unconventional Reservoirs
Shale Sequence in Pakistan • Ghazij ShaleThickness (meters) • Vastly Distributed- 100 -1200 • Thalar Shale • Vastly Distributed – 45 – 184 • Samber Shale • Vastly Distributed – 500- 600 • Chichali Sahle • Vastly Distributed – 35 – 130
Chichali Area Ghazij Area Talhar Area
Gas Potential in these Reservoirs Source: Weatherford 2010
Unconventional Gas Resource • 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
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
Availability of Technology In World • Vertical & Horizontal well • Multilateral Wells • Hydraulic Fracturing • Stimulation Techniques
Exploration & Production Companies • Should Invest to Explore Tight and Shale gas • Exploration area for Tight and Shale Gas should be awarded to the companies • Price Incentives have been given • Freedom of Marketing of Gas to the Consumer
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 using the network if required • Reference Price should be according to the concession area • Distribution Companies should effectively assist for supply of gas to Industries • Consortium of Industry units to share the cost of energy.
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
Continue---- • Need consortium of industry units for sharing of their cost of energy • No Misuse of Freedom • No Monopolization of any company weather it is service or distribution companies.
Production Challenge Reference: Weatherford 2010
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 &Tex Included
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
SUMMARY • Enough unconventional Reservoir exist in the country • Unconventional Reservoirs are required to be evaluated by collection of more data by initiating Pilot Projects in Shale Gas as earliest as possible. • Exploration blocks may be awarded for unconventional reservoirs. • Economically, Projects in Shale & Tight Gas looks viable.
Continue---- • Human Resource Development to cater the demand of oil companies operating in Pkistan • Introduction of consortium concept of E & P companies for the planning of their work • Consortium of Service companies for cost effective solution of development of these Reservoirs. • Integrated Approach of all the stack holder is required to develop these unconventional Reservoirs