Introduction To

Oil & Gas

Part 1 : Petroleum Exploration
Dr. Deva Ghosh
(drdeva@petronas.com.my)
Professor in Geophysics
Head Center of Excellence in
Seismic Imaging (CSI)
Ext. 7033
26/05/2014

Prof. Dr. Deva Ghosh: Short Bio

Prof. Dr. Deva Ghosh is a Professor with the Geoscience
Department at the Universiti Teknologi Petronas, a position
that he assumed in January, 2011. He is also the Principal
Investigator for Seismic Imaging and Hydrocarbon Prediction
with the University.
After acquiring a Bachelor's and Master's degree in Geophysics
from Banaras University, Dr. Ghosh continued his education,
receiving a PhD in Geophysics in 1971 from Delft University
With more than 35 years of experience as an academic and
Chief Geophysicist, Dr. Ghosh specializes in prospect
evaluation, time lapse, processing and other complex
geophysical related topics
L0 - Welcome

QAB 4093 - Volume Interpretation

World Energy Sources

Malaysia: Primary Energy
Supply in 2011

ra
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Al co
ge
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Ka Bra
za zil
kh
st
No an
Az rw
er ay
ba
dj
an
In
M dia
ala
ys
ia

Sa
ud
iA

Reserves (in Bln bbls)

OIL

Top World Oil Reserves

(2007)

300

250

200

150

100

50

NonConventio
nal Oil

Total World Oil Reserves

OIL

World Petroleum Supply

World Oil Supply and Demand

Million BOPD 2013

Quarter

1st

2nd

3rd

4th

Supply

89.33

90.4

91.01

90.55

Demand 89.25

89.87

91.05

91.34

OIL

Historical Oil Price

Fossil Fuels vs. Renewables

Solar, wind,
Geothermal

80

World Energy Demand

60

Crude Oil

20

1920

1940

1960

1980

2000

2020

2040

2060

2080

2100

after Edwards, AAPG 1997

Natural
gas

40

1900

Nuclear

Coal

Decreasing
Fossil Fuels

Billion BOE/year

100 BILLION

New Technologies

100

Future Prospects of Oil & Gas

Oil
Coal
Gas
Renewable
Nuclear

Proven Global Oil & Gas Reserves

Electricity Usage at Night

Power Map : The colour-coded image of the Earth at

night shows the use of electricity for Lighting is
concentrated in industrialized regions(yellow)
The red parts correspond to oil flares.

PENANG

TRONOH?

IPOH
KL
SINGAPORE

National Oil Companies

CNPC
CNOOC
PETROBRAS
PETRONAS
PEMEX
ONGC
PETRAMINA
NNPC
PETROBANGLA
PVDSA
GAZPROM

Major Oil Companies

1. EXXON MOBIL
2. Royal Dutch Shell
3. TOTAL
4. B.P
5. Chevron
6. Conoco Phillips
7. Stat Oil
8. REPSOL
9. British Gas

PETRONAS a Fortune 500 Company **

Has interest in 30 countries

44% of Malaysias Govt.

revenue contributed by
PETRONAS

The Earth has a molten interior on

which the crust and mantle float

Origin of the Earth

Formed about 4.5 Billion
Years ago by the gradual
condensation and
cooling of hot cosmic
dust to a mass of molten
material
3 Zones of Different
Mechanical Properties :
Core
Mantle
Crust

The Nebular Hypothesis

OIL

Petroleum Consumption:
The Long-Term Oil Supply
Challenge

S.E. ASIA BASIN EVOLUTION EARLY EOCENE (~55 MA) TO Curreny

ma
00ma
10
60
40
30
30
ma
ma
50
20
20
ma

Late
Paleocene
Oligocene
Oligocene
Eocene
Late
Eocene
Early
Eocene
Early
Eocene
Late
Miocene
Late
Miocene
Early
Early Miocene
Miocene
Present
day
Present
day

1) Collision of India plate moving eastward with Asia

plate
2) Further Collision with Australia plate moving
Northward

Modified. from Scotese and PALEOMAP (2005) Courtesy Harry Doust

PETRONAS a Fortune 500 Company **

Has interest in 22 countries
TOP TEN **
@ Profit
@ Return in
Asset &
Revenue

44% of Malaysias Govt.

revenue contributed by
PETRONAS

Including Malaysia

S.E. Asia Basin Geometry

Satellite View

Pacific
Deepwater
Mature
CONSON

VARIOUS
BASINS
MALAY

SARAWAK
SUMATRA

SABAH

200 KM

SEG Research Workshop, KL 2008

Malaysia Oil and Gas Fields

MSIA/THAI JOINT
DEVELOPMENT

JOINT DEVELOPMENT
MSIA/VIETNAM

Production Breakdown
Sabah
8%

PM 42%

Area

Discovered

Producing

Area

Discovered

Producing

P.Malaysia

68

28

P.Malaysia

89

Sarawak

44

16

Sarawak

70

11

Sabah

28

Sabah

24

Total

140

53

Total

183

22

Sarawak 50%

Oil and gas fields/discoveries in Malay Basin

Malaysia Oil
and Gas

Production Breakdown
Sabah
8%

Reserves

PM 42%

(billion barrels)

Sarawak 50%

Reserve ( B.O.E )
(billion barrels)
20.18

20.18

20.13

Production

20.56 20.85

19.36

19.91

14.5

14.2

14.66

14.82

14.67

14.66

14.76

14.99

4.84

5.16

5.25

5.36

5.46

5.52

5.8

5.86

19.34

(million barrels)

FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011

Production
(million barrels)

1576

1690.7 1656.1 1611.4

1673.5

1659

1631

980

974

987

679

657

627

FY2009

FY2010

FY2011

Natural Gas

Oil & Condensate

750.2

23rd
(World Ranking)

14th

825.8

FY2004

699.1

661

691.6

955

957

950.4

981.9

FY2005

FY2006

735.7

FY2007

Oil & Condensate

FY2008

Natural Gas

1614

Petroleum
Elements
PetroleumSystem
System Processes

Gas
Cap
Oil

Entrapment

Water

Seal Rock
Reservoir
Rock

Migration
120 F

Generation

350 F
24803

Source: AAPG
Source:
AAPG

Trap Styles

Anticline

Fault
Salt dome

Pinch-out

Unconformity

Example of Gas Field in an Oil Field

Corrective Initiative for Domestic Production Decline

Reservoir & Field Development Perspective
To compensate for Domestic Oil decline by
corrective measures in Field
Development

improve recovery factor

From 0.34 to 0.5
EOR/IOR processes (WAG)
find bypass oil by 4D
Deepwater Contribution
Cluster Development strategy

Improving Recovery Factor

Petroleum Economics
US $

10

15

20

Years

Fate of Organic Matter

Temperature

Graphite
Dead Carbon

Dry
Gas

Thermally
Matured
Organic
Matter

Wet
Gas

Kerogen
oil
Humic
Substances
Organic
Matter

methane

Geological Field Work:

Examining Exposed Rocks
To Understand the Subsurface

1985, P.D.O., Muscat, Oman

Source Rock Maturation & Petroleum

Generation
The earths
temperature
increases with depth
in the earths crust.
As organic matter is
buried, it is heated
and transformed into
kerogen, oil and gas.
Most oil is produced
between
temperatures of 60
and 120 degrees C, at
a depth range known
as the oil window.

Kerogen Maturation Van Krevelen Diagram

LEGEND BARS
CO2, H2O

WET GAS
DRY GAS

Hydrogen Index

OIL

Type I
Type II

Type III

NO HYDROCARBON
POTENTIAL
INCREASING
MATURATION

Type IV

Oxygen Index

Petroleum System

Malay Basin Inversion Structures

Basement Controlled
Faulting results into
grabens & half grabens

COMPRESSIVE H.C. BEARING ANTICLINES

The Role of Geoscientists:

Finding and Monitoring Petroleum Resources

Kikeh Field, Sabah

Angsi Platform, Terengganu

GEOHAZARD IMAGES
MALAYSIAN OFFSHORE

Gas bubbling in water

Magic of Seismic in detecting Gas bubbling in water

MALAYSIAN OFFSHORE HAZARD

(GAS BUBBLING NEAR PLATFORM)

SINKING OF DRILLING RIG

DUE TO GAS HAZARD
1

Gas escape causes Seawater density to drop resulting in the Platform to sink

Blown-out Macondo Well

Deep Water Platform Horizon

Blow-out Preventer

Drilling a Deep Water Well

Recent Gas Discoveries

Since 2010

Malaysia: Gas Demand

LIFE OF FIELD
Exploration
Block
Acquisition

Planning

Frontier
Exploration

Prospect
Evaluation

Drilling

Appraisal
Discovery

Volumes

Appraisal

Reserve &
Economic

Field Development
Reservoir
Static Model

Simulation

PVT
RFT
DST

Production
Forecast

Development
Plan

Secondary Recovery
EOR

FLOODING
INJECTION

SECONDARY
RECOVERY

PRODUCER &
INJECTOR

Infill
Drilling

The Seismic Experiment

Interaction of Geology & Geophysics

Depth
Km

SEISMIC SOURCE

GEOLOGICAL
STRUCTURE

Courtesy GX Technology

Malaysia: Gas Reserves

Future Prospects of Oil & Gas