day 1 pm b 1 moge where to find oil
DESCRIPTION
OIL AND GAS SCENARIO OF BURMATRANSCRIPT
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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
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WHERE SHALL WE GO TO FIND OIL AND GAS
DISCOVERY ESPECIALLY IN MYANMAR
ONSHORE BLOCKS?
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Outline
1. Introduction
2. Sedimentary Basins
3. Historical Exploration and Production4. Commercial Discovery
5. Possible Future Bidding Round
6. Prospective Blocks
7. Conclusion
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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.
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2. Sedimentary Basins
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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
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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
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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)
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Current Activities carried-out by MOGE and Foreign Companies in Petroliferous basins
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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
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DailyAverageB
OPD
Crude Oil Production History of Myanmar
"Onshore"
"Offshore"
3. Historical Exploration and Production (Contd)
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DailyAveragemmscf
Natural Gas Production History of Myanmar
"Onshore"
"Offshore"
3. Historical Exploration and Production (Contd)
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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
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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.
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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)
5. Possible Future Bidding Round
(Onshore)
I. MOGE Stand-Alone Operating Blocks
(6 Nos)
RSF-1
IOR-1
MOGE-2(S)
RSF-6 & 8
MOGE-5
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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.
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What are the BlocksReserved for MOGE
till 2014?
5. Possible Future Bidding Round (Contd)
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)
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Onshore Blocks already left remainafter 2nd Bidding Round 2013.
5. Possible Future Bidding Round (Contd)
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)
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5. Possible Future Bidding Round
(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
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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
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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
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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
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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).
6. Prospective Blocks (Contd)I. MOGE Operating Blocks (RSF-1, 6, 8, MOGE-2, 5, & IOR-1) Contd
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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.
6. Prospective Blocks (Contd)I. MOGE Operating Blocks (RSF-1, 6, 8, MOGE-2, 5, & IOR-1) Contd
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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.
6. Prospective Blocks (Contd)I. MOGE Operating Blocks (RSF-1, 6, 8, MOGE-2, 5, & IOR-1) Contd
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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.
6. Prospective Blocks (Contd)
II. MOGE Reserved Blocks (P, Q, MOGE-6 & 7)
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6. Prospective Blocks (Contd)
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.
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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.
6. Prospective Blocks (Contd)
III. Remaining Blocks (PSC-C2, L, M, S, T, U, V, & IOR-3) Contd
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6. Prospective Blocks (Contd)Remaining Offshore Blocks (A-2, M-1, M-10)
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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.
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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.
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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.
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THANK YOU