Exploration services for geothermal

Jean-Philippe Gibaud

Business Development Manager - Geothermal Services

Schlumberger at a Glance

2009 Financial Highlights

Revenue : $22.7 Billion (*)

Total R&D: $ 800 Million

Staff 80 000 employees(*) # $35B with Smith and Geoservices (100 000+ empl.)

Key services in Geothermal

SURFACE ELECTROMAGNETICS and

SEISMICS

MODELING AND SIMULATION

DIRECTIONAL DRILLING

MICROSEISMIC EVENT MONITORING

LOGGING AND IMAGING

HIGH TEMPERATURE DOWNHOLE

PUMPS

BOREHOLE SEISMICS

FRACTURING AND MONITORING

CEMENTING AND PERFORATION

INTEGRATED PROJECT MANAGEMENT

Key services in Geothermal

Schlumberger Technologies & Services

Solutions: Integrated Project Management

Finding the Reservoir: Seismic, MT

Reaching the Reservoir:Drilling & Measurements

Optimizing the Reservoir:Well Services

Producing the Reservoir:Well Completions & Production

Modelling & Simulations Evaluation:Wireline

EAF – EUROPE, CASPIAN & AFRICAMark Corrigan

Gary AllenProduction

ECA - EUROPE, CIS & AFRICA AREA

Adil MukhitovGeology &

Geophysics

SLR – SCHLUMBERGER RUSSIAMaurice Dijols

NAL – NORTH AMERICA LANDSteve Fulgham

GeoMarkets July 12th, 2010

DrillingDavid Waterland

ProductionAmerino Gatti

Robert

WhalleyDrilling Services

NSG – North SeaCarel Hooykaas

CAG –CaspianBrian Groody

LIG – LibyaSherif Abadir

CEU –Continental Europe

Glen Sansom

IRG – IranKhaled Hussaini

Najeeb Ali KhanPAK – Pakistan

NAG –Algeria

& TunisiaAbdellah

Merad

NAO – NORTH AMERICA OFFSHORERobert

DrummondAKA – AlaskaLees Rodionov

East Coast

Canada

OperationsDavid Christmas

NGC – North Gulf Coast

Robert Drummond

MEA – MIDDLE EAST & ASIA

ARM – Saudi Arabia,

Bahrain & KuwaitSherif Foda

EEG – Egypt,Syria & Jordan

Yasser El-

Khazindar

MEA – MIDDLE EASTAaron Gatt Floridia

ING – IndonesiaAhmed Yuniarto

APG – Australia, Papua New Guinea

&New ZealandGavin Rennick

MCA – Mexico & Central America

Juan Manuel Delgado

VTT – Venezuela & Trinidad & TobagoArindam Bhattacharya

PCE – Peru, Columbia & EcuadorJaime Ricardo Gomez

ABC – Argentina, Bolivia & Chile

Chester LopezLAM – LATIN AMERICAHatem Soliman

Richard BrownBRZ – BrazilAna Zambelli

QYG – Qatar &Yemen

Don Conkle

EAG – Thailand, Brunei, Myanmar,

Vietnam, Singapore & Malaysia, Gokhan Saygi

OMG – OmanChokri Benamor

EMG – UAEHussein

Fouad

CHG – China, Japan, Taiwan &

KoreaJim Zeng

INM – India & Bangladesh

Rajeev

Sonthalia

ASA – ASIAHinda Gharbi

SUG – SudanSofiane Ben

Tounes

ASE – Angola, Tanzania, Uganda, South Africa &

remotes in Southern & Eastern AfricaAmir Nessim

NGA – Nigeria, Equatorial Guinea, Ghana, Cameroon,

Ivory Coast & remotes in the Gulf of Guinea region

Eke Ugbaga Eke

CWA – Congo, Gabon, Chad &

DemocraticRepublic of the CongoJoel Nana

Kontchou

Schlumberger Geothermal ServicesObjectives

• The privileged connection between the geothermal industry and Schlumberger

• Identify and promote Geothermal R&D needs

• Develop Integrated projects:

Geothermal expertise + Schlumberger services

From Resource evaluation well field development

• Not Investor / Owner

• Not Electricity Producer / Utility Technology Partner

New Web site in Schlumberger http://www.slb.com/services/additional/geothermal

GeothermEx: Schlumberger Geothermal Consulting Services

•• Specializing exclusively in geothermal Specializing exclusively in geothermal exploration, development, exploration, development, assessment, utilization, optimization and financingassessment, utilization, optimization and financing

•• In business continuously since 1973In business continuously since 1973

•• A commercially oriented group of geoscientists and engineersA commercially oriented group of geoscientists and engineers

•• Worked on nearly every geothermal project developed for electric Worked on nearly every geothermal project developed for electric power around the worldpower around the world

•• Nearly Nearly 7,000 MW 7,000 MW to date to date –– support for US$11 billion in financingsupport for US$11 billion in financing

•• Worldwide client base of geothermal developers, financiers, agencies Worldwide client base of geothermal developers, financiers, agencies of government, and land ownersof government, and land owners

About GeothermEx (2 of 3)About GeothermEx (2 of 3)

GeothermEx Project Locations

>> 1,000 projects in 53 countries>> 1,000 projects in 53 countries

Typical Work Plan – Exploration Stage

Literature searchLiterature search –– geologic setting, thermal features, evaluation of geologic setting, thermal features, evaluation of previous studiesprevious studies

Site visit Site visit –– detailed mapping of thermal features, chemical sampling detailed mapping of thermal features, chemical sampling of thermal and nonof thermal and non--thermal waters and steam, validation of thermal waters and steam, validation of geologic mapping, logistical evaluation for exploration and drillinggeologic mapping, logistical evaluation for exploration and drilling

Integrated evaluation Integrated evaluation –– development of conceptual development of conceptual hydrogeologichydrogeologicIntegrated evaluation Integrated evaluation –– development of conceptual development of conceptual hydrogeologichydrogeologicmodel, preliminary resource estimatemodel, preliminary resource estimate

Additional exploration work Additional exploration work (geophysics, gradient or slim hole (geophysics, gradient or slim hole drilling)drilling)

Selection of sites/targets Selection of sites/targets for first fullfor first full--diameter wellsdiameter wells

PREPRE--FEASIBILITYFEASIBILITY

3

Chemical Geothermometry

Isotope Geochemistry

Fluid Flow / Mixing Model

Exploration technologies

Structural Imaging Seismics Electromagnetics

Magnetotellurics (MT) Controlled Source Electromagnetics (CSEM)

Gravity Simultaneous Joint Inversion

Monitoring Micro-seismic (MEQ)

Well test monitoring Stress field analysis

Time Lapse Microgravity Seismic CSEM

Magnetotellurics in 30 seconds...

⋅

=

y

x

yyyx

xyxx

y

x

B

B

ZZ

ZZ

E

E

Solar activity

external geomagnetic activity: space weather and tropospheric weather (lightening)

internal currents: diffusion into / induction within the Earth

Intercomponent EM-field relation at Earth’s surface function of subsurface conductivity:

( )

⋅=

y

x

yxz B

BTTBImpedance Z Tipper T

Typical Resistivity Pattern over a high-enthalpy Geothermal Resource

From Cumming and Mackie, 2003

MT highlights low resistivity cap with lowest resistivities in Smectite, over higher resistivity reservoir

MT-TDEM survey and 3D inversionGeothermal Resources Development Account (GRDA), California Energy Commission

Profile C

MT - Glass Mountain, CA

105 legacy MT soundings (1975-1988)91 MT soundings acquired in 2005 (GSY) with co-located TDEM

3D MT inverison modeling and integration

MT - Glass Mountain 3D Inversion Model

Mesh on Topographic grid(rotated by 90 degrees)

Lowest resistivity cap and outflowHigher resistivity (blue) below

Geophysics - Resistivity and GravityAkutan City

AGIL

Bali Energy

BM Holding

Cal Energy

Contact Energy

CEC, Calif.

Chevron / Unocal

Davenport

ElCosa

ENEL

ENAP / GDN / GDP

Energia Andina

Genesis

GSNI (UK)

Hot Rock Ltd.

JGI

ItalyGreece

AzoresCanaries

ChileCosta RicaEl SalvadorGuatemala

HondurasMexico

NicaraguaPanama

USA

IndonesiaPhilippinesLihir, PNG

AustraliaNew Zealand

JGI

Kuth

LaGeo

Lihir Gold

Magma Power

Marathon

Mighty River Power

Montana Expl.

NGP

Pertamina

Petratherm

Polaris

PNOC

Reunion (Conseil)

Sierra Geothermal Power

Sogeo EDA

Star Energy

Supreme Energy

Top Energy

TPAO

Vulcan Power

GreeceTurkey

KenyaReunion

From Geosystem (a Schlumberger company)

Resistivity / temperature mapResistivity / temperature map

Schoonebeek, EM-Seismic Experiment (for Shell, Dec-2005)

Zonge GGT30 transmitter inc. 400Hz generator (trailer)

Grounded electric dipole,60 Ampere (peak-to-peak)

Deployment in Central Europe

Alternative: CSEM (TD/FD) – Active EM Sources

PWS transmitter inc. 60Hz generator

Alternative: CSEM (TD/FD) – Active EM Sources

Deployment in North America

Extended electrodes to reduce contact resistance;NOT required in humid areas.

New high-power transmitter is in development.

Grounded electric dipole,300 Ampere (peak-to-peak)

Frequencies : all odd harmonics between 0.125 Hz and 3.875 Hz.

( high set of harmonics)

CSEM – Amplitude & Phase Example: Central Europe

Good signal/noise ratio despite very high noise level in the survey area.

Increasing frequencies

very high noise level in the survey area.

Inversion Model

33 Ωm3 Ωm

1 Ωm

Start Model

32 Ωm16 Ωm

1 Ωm

20 Ωm

0.125 Hz 0.625 Hz

20°

-50°700m

600m

CSEM (FD) – 1D Modeling Example (Central Europe)

1.125 Hz 1.625 Hz

Deep resistor required by data set

9202

9203

9204

9205

DarajatWest Java (Chevron)

Gravity in Time Lapse - Steam Reservoir Monitoring

799 800 801 802 803 804 805

9199

9200

9201

9202

2500

2300

2100

1900

1700

1500

1300

1100

900

700

meters

Reservoir Pressure Drawdown

0

10

20

30

40

50

60

70

1993 1996 1999 2002 2005

Mt

Production

Injection

55MW

+ 55MW

Pressure drawdown -Mass withdrawalDensity changes

9204

9205

Pressure Drawdown

Monitored with precision gravity 1996-2006

799 800 801 802 803 804 805

9199

9200

9201

9202

9203

9203

9204

9205

0

10

20

30

40

50

60

70

1993 1996 1999 2002 2005

Mt

Production

Injection

Subsidence 1996 – 2006 (mm)

799 800 801 802 803 804 805

9199

9200

9201

9202

10

0

-10

-20

-30

-40

-50

mm

Geographic

Precision Gravity

Water Well

DRJ Slim

DRJ Wells

Free Air Gradient: 10 mm = 3 µGal

Repeatable signal levels: 10 µGal

9203

9204

9205

0

10

20

30

40

50

60

70

1993 1996 1999 2002 2005

Mt

Production

Injection

Gravity Changes 1996 – 2006 (µGal)

799 800 801 802 803 804 805

9199

9200

9201

9202

20

10

0

-10

-20

-30

-40

-50

microGal

Geographic

Precision Gravity

DRJ Slim

DRJ Wells

Gravity changes arecorrected for Elevation changes (Free Air).

500 500

1000 1000

1500 1500

2000 2000

2500 2500

Ele

vatio

n (m

a.s

.l.) 2650

264826462644

Ohm.mKg / m^3

N S

3D Gravity Change - Density Inversion Model

NS Cross Section

0 1 2 3 4

-1000 -1000

-500 -500

0 0

Ele

vatio

n (m

a.s

.l.)

26442642264026382636263426322630

Reservoir Time Lapse Response > 50 µGal / 9 years1996 to 2006 Mass deficit from 3D model: 32 Mt1996 to 2006 Net Mass Produced: 38 Mt

Within the uncertainty, this means there is no net mass recharge

Exploration

Modern Exploration

Typical Work Plan Typical Work Plan –– Initial Drilling of FullInitial Drilling of Full--Diameter WellsDiameter Wells

•• Well design, detailed drilling program and rig specificationWell design, detailed drilling program and rig specification

•• Identification of suitable drillers and evaluation of drilling bids Identification of suitable drillers and evaluation of drilling bids

–– negotiation with drilling contractornegotiation with drilling contractor

•• Finding the “Company Man”Finding the “Company Man”•• Finding the “Company Man”Finding the “Company Man”

•• Technical input at critical points during the drilling process Technical input at critical points during the drilling process

(start(start--up, casing points, when problems occur, completion)up, casing points, when problems occur, completion)

•• Specification of logging programSpecification of logging program

•• Specification, oversight and analysis of well testsSpecification, oversight and analysis of well tests

Typical drill pad layoutTypical drill pad layout

Typical well completion Typical well completion diagramdiagram

Typical trajectory Typical trajectory calculation for deviated wellcalculation for deviated well

Typical cementing Typical cementing calculation for 9calculation for 9--5/85/8--

inch casinginch casinginch casinginch casing

Typical BOP Typical BOP configuration for air configuration for air configuration for air configuration for air

drilling belowdrilling below1313--3/83/8--inch casinginch casing

Typical slot pattern forTypical slot pattern for77--inch slotted linerinch slotted liner77--inch slotted linerinch slotted liner

Typical Work Plan Typical Work Plan –– Feasibility StageFeasibility Stage

•• Plotting and evaluation of Plotting and evaluation of subsurface datasubsurface data

•• IntegratedIntegrated conceptual modeling conceptual modeling using all available resource using all available resource data (drilling, logging, testing, etc.)data (drilling, logging, testing, etc.)

•• Updated evaluation of Updated evaluation of resource capacityresource capacity

•• Field development planning Field development planning (number and locations of (number and locations of •• Field development planning Field development planning (number and locations of (number and locations of production and injection wells)production and injection wells)

•• Specification of Specification of power cyclepower cycle

•• Focused Focused geochemical studies geochemical studies to address nonto address non--condensable condensable gases and scalinggases and scaling

FEASIBILITY REPORTFEASIBILITY REPORT

Conceptual ModelingConceptual Modeling

•• Evaluate all available exploration dataEvaluate all available exploration data

•• Develop new mapsDevelop new maps

•• Prepare Prepare DownholeDownhole Summary PlotsSummary Plots

•• Determine distribution of chemical speciesDetermine distribution of chemical species

•• Understand and describe the elements controlling the Understand and describe the elements controlling the

geothermal systemgeothermal system

•• Estimate resource size and capacityEstimate resource size and capacity

•• Determine additional well locationsDetermine additional well locations

Downhole Downhole Summary Plot Summary Plot

of well dataof well data

GeologyGeology--temperature crosstemperature cross--sectionsection

Geochemical Studies Geochemical Studies -- GasesGases

•• Compile and analyze NCG data to evaluate spatial and Compile and analyze NCG data to evaluate spatial and

temporal trendstemporal trends

•• Evaluate HCOEvaluate HCO33 distribution in liquid phase, providing a basis distribution in liquid phase, providing a basis

for estimating the potential for COfor estimating the potential for CO22 generation generation

•• Evaluate NCG data in steam phaseEvaluate NCG data in steam phase•• Evaluate NCG data in steam phaseEvaluate NCG data in steam phase

•• Use inUse in--house program to evaluate relationships between T, house program to evaluate relationships between T,

P and NCG using average NCG compositions in liquid and P and NCG using average NCG compositions in liquid and

steam phasessteam phases

•• Determine optimum setDetermine optimum set--points for wellspoints for wells

Other HighOther High--Gas ReservoirsGas Reservoirs

GeothermExGeothermEx hashas significantsignificant experienceexperience withwith exploration,exploration,drilling,drilling, testing,testing, evaluationevaluation andand numericalnumerical modelingmodeling ofof highhigh--gasgas geothermalgeothermal reservoirsreservoirs::

•• GermencikGermencik, Turkey , Turkey

•• DiengDieng, Indonesia, Indonesia

•• UenotaiUenotai, Japan, Japan

•• AidlinAidlin Project, The Geysers, USAProject, The Geysers, USA

•• LateraLatera, Italy, Italy

Geochemical Studies Geochemical Studies -- ScalingScaling

•• Evaluate scale composition (only CaCOEvaluate scale composition (only CaCO33?)?)

•• Identify suitable inhibitor chemicalsIdentify suitable inhibitor chemicals

•• Determine rates, composition, concentration, depth and Determine rates, composition, concentration, depth and

delivery of downhole inhibitor(s)delivery of downhole inhibitor(s)delivery of downhole inhibitor(s)delivery of downhole inhibitor(s)

•• Evaluate existing or suggest new equipment for delivering Evaluate existing or suggest new equipment for delivering

inhibitor downholeinhibitor downhole

Well TestsWell Tests

Specify protocols and equipment forSpecify protocols and equipment for::•• ShortShort--term injectivity teststerm injectivity tests

•• ShortShort--term productivity teststerm productivity tests

•• Longer term production and injection testsLonger term production and injection tests

•• Interference testsInterference tests

Tracer testsTracer tests•• Tracer testsTracer tests

Participate in tests of individual wells and/or interference testsParticipate in tests of individual wells and/or interference tests•• Design testsDesign tests

•• Train client personnelTrain client personnel

•• Evaluate resultsEvaluate results

GeothermEx’s Services Typical Services Provided:Typical Services Provided:•• ExplorationExploration

•• DrillingDrilling

•• Well TestingWell Testing

•• Field OperationsField Operations

•• Geology / HydrologyGeology / Hydrology

•• GeochemistryGeochemistry

•• Reservoir EngineeringReservoir Engineering

•• Resource AssessmentResource Assessment•• Resource AssessmentResource Assessment

•• Numerical SimulationNumerical Simulation

•• Production EngineeringProduction Engineering

•• Economic and Risk AnalysisEconomic and Risk Analysis

•• Contract NegotiationContract Negotiation

•• Project FinancingProject Financing

•• Master Planning / Market StudiesMaster Planning / Market Studies

•• Training / Technology TransferTraining / Technology Transfer

Schlumberger + GeothermEx

GeothermEx GeothermEx

•• Unparalleled experience in geothermal resource exploration, Unparalleled experience in geothermal resource exploration, assessment and developmentassessment and development

•• Integrated team with all required expertise Integrated team with all required expertise –– senior staff all senior staff all have 20+ years of geothermalhave 20+ years of geothermal--specific experiencespecific experience

•• Experience with all types of resources (for flash and binary Experience with all types of resources (for flash and binary developments, pumped and selfdevelopments, pumped and self--flowing wells, various water flowing wells, various water developments, pumped and selfdevelopments, pumped and self--flowing wells, various water flowing wells, various water chemistries and gas compositionschemistries and gas compositions

•• A practical group focused on getting more geothermal energy A practical group focused on getting more geothermal energy out of the groundout of the ground

•• Worldwide experienceWorldwide experience

•• Part of Schlumberger: latest technology developmentPart of Schlumberger: latest technology development

Questions?