Berlian Field Block 1

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A case study of the Berlian Field, Malaysia.

Transcript of Berlian Field Block 1

  • Berlian Field Database Block 1

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    E & P CORE BUSINESS PROCESS

    & ENVIRONMENT

    CASE STUDY

    BERLIAN FIELD DATABASE (Block 1)

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    CONTENTS Page No Block 1 1. INTRODUCTION 2. SUMMARY 3. BACKGROUND INFORMATION 4. FIELD DISCOVERY AND EARLY APPRAISAL 5. PRODUCTION GEOLOGY 6. PETROPHYSICAL DATA

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    1. INTRODUCTION This data set will provide you with the background information on an existing hydrocarbon accumulation which is typical of an oil field development opportunity in Malaysia. By using actual field data you will be able to experience the realities of project development and to apply and test the knowledge gained during lectures. A case study provides the opportunity to see the interactions and relationships of all of the disciplines involved and to understand the sequence of events throughout a field life cycle. In particular, you will see how the contributions of the technical disciplines are linked to the business objectives. At this juncture you are to note well that every single costs expended (known as investments) will impact your project economics, namely, the UDC. Therefore prudent spending should be exercised. Sound technical justifications as well as the Value Creations expected from your field appraisal/development activities must be demonstrated prior to executions. Practices described in this brief reflect methods and technology recently applied in PETRONAS operation. However, we encourage you to challenge the existing practice, to develop alternative options if appropriate, and to investigate how new technologies could improve the economics of your project. Just as in reality, you would be working with limited data. Such limitations would give rise to uncertainties; and the most profound in this case is in the hydrocarbon volumes and their distributions. These uncertainties in turn, would eventually translate into risks to your project economics. You would have the opportunity to strike a balance between remaining acceptable risk levels versus expenditures Additional information may be required before the available data can be meaningfully applied to your project. Therefore, this data base will be supplemented during the course by additional data and you will generate extra information as you progress through the exercises. It is essential that you have a thorough knowledge of the data contained in this document and we recommend that you spend some time familiarizing yourself with the material. General information can be obtained from the participants manual. Additional specific information may be available from the instructors in the form of short lectures, consultancy, videos or written reports. Please make sure that you have discussed within your team the specific information you require and its relevance to your project. Wherever possible, certain critical points relevant to your exercise will be highlighted. In addition to raising the level of your technical and business skills, this course will allow you to test and improve your skills related to planning, communication, presentation and team working. We wish you an enjoyable course and every success in your new business venture.

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    2. SUMMARY The Berlian East structure, offshore the east coast of Peninsular Malaysia is being considered for development. A total of four wells (exploration and appraisal wells included) have been drilled to date. Based on seismic and well information for the Miocene reservoir sequence, options for field appraisal, development and subsequent production management need to be evaluated. The present knowledge of the field indicates that the economics for development are marginal. However, it is considered that the economics can be improved by including the existing regional infrastructure into a development scenario. Field development will have to take into account of the prevailing fiscal framework and Production Sharing Contract (PSC) agreement.

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    3. BACKGROUND INFORMATION 3.1 Location and Infrastructure The Berlian East Field is located some 25km offshore Peninsular Malaysia (Figure 3.1) in a water depth of 76m. Several other nearby fields are being produced under separate production sharing contracts (PSCs) with PETRONAS. The nearest developed field is Berlian, approximately 20 km northwest of Berlian East. This producing field, which has just come on stream, has the following infrastructure: - three 24 slot drilling platforms - one CPP (Central Processing Platform) comprising :

    - production module (60 Mstb/d) - water injection module (120 Mstb/d) - gas compression module (50 MMscf/d) - accommodation module (80-men)

    Table 3.1 shows the forecast production profile for Berlian.

    Year Oil Production (Mstb/d)

    Gas Production (MMscf/d)

    1 3.5 1.5 2 (current) 48.8 21.4

    3 58.6 26.5 4 58.6 27.3 5 48.1 23.3 6 32.3 16.2 7 25.4 13.1 8 20.7 10.9 9 16.6 9.0

    10 13.6 7.6 11 11.9 6.7 12 9.9 4.7 13 8.5 3.8 14 7.6 3.4 15 6.9 3.0 16 6.0 2.6 17 5.0 2.2 18 4.1 1.8 19 3.1 1.4 20 1.6 0.1

    Table 3.1: Berlian Field Production Forecast

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    A terminal is located onshore near Pekan, approximately 29 km from the Berlian East field. The function of the terminal is to act primarily as a tank farm. There are pipelines from the Berlian development to the terminal. Additional crude storage is available at the terminal but an increase in crude throughput would require the upgrading of the existing process facilities. Gas market is available onshore. Crude is exported from the Pekan terminal in the following ways: - through an onshore pipeline to a refinery - By tanker loading from an SBM system. 3.2 Company History Your project team is part of the technical function in your company which was given the contract to operate the field under the PSC. Your company is as a contractor to PETRONAS. PETRONAS (Petroliam Nasional Berhad) was formed in 1974 to act as the government instrument to take charge of petroleum matters. PETRONAS is guided by the following main objectives: to safeguard the sovereign rights of Malaysia and the legitimate rights and interests

    of Malaysians in the ownership and development of petroleum resources to undertake proper planning for the orderly exploitation and utilization of Malaysia

    petroleum resources so as to satisfy both the present and future needs of the country

    to participate actively in the exploitation of petroleum and in the marketing and

    distribution of petroleum and petroleum products. to ensure that the local market is supplied with petroleum and petrochemical

    products at reasonable prices. to encourage local participation in the manufacturing, assembling and fabricating of

    plant and equipment used in the oil industry and in the provision of ancillary and supporting services.

    to contribute to the development of the agro based sector of the economy by

    making available nitrogenous fertilizers and to ensure that the people of Malaysia as a whole enjoy the fullest benefits from the

    development of the countrys petroleum industry As contractor to PETRONAS, your company is required to observe all these values and ensures that steps are taken to incorporate these objectives in your development plan.

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    Rihau

    C

    Berlian

    Berlian East A B

    Terminal

    0 1 2 30

    Location

    N

    Malaysia

    Kuala Trengganu

    KualaLumpur

    KuantaPeka

    Singapore

    Berlian

    Figure 3.1

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    Before 1976, the concession system gave oil companies the right to explore, produce and market petroleum independently, in return for royalty and tax payments to the government. During 1976 PETRONAS started to replace the original concession system with Production Sharing Contracts (PSCs). Under the new system a fundamental change occurred, such that management and control of petroleum resources rests with PETRONAS, while the oil companies operate as contractors. PSCs stipulate the terms under which to operate, the contract periods, the relinquishment terms, the obligation to utilize Malaysian goods and services wherever possible, and the requirements for training Malaysian personnel. The specific terms of PSC agreement which apply to the licence block containing Berlian East are given in Section 14.

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    4. FIELD DISCOVERY AND EARLY APPRAISAL The field was discovered by well Berlian East-1 drilled in late 1999 in a crestal position in Block 1 (Figure 4.1). The location was based on an anticlinal feature interpreted from a 1 km by 1.5 km 2D seismic grid shot in 1999. The purpose of the well was to evaluate the reservoir quality and hydrocarbon potentials of Block 1. The quality of the seismic available was considered adequate to delineate the overall structure. However, complex crestal faultings, and shallow gas effects over the area have so far hindered a more detailed interpretation.

    Berlian East-1 (BE-1) encountered 29 metres of oil and 7 meters of gas in the M reservoir unit, and 14.2 metres of gas in the L reservoir unit. Berlian East-2 (BE-2) was drilled early in 2000 to test the hydrocarbon potential of Fault Block 3. The well encountered the objective sequence fully water bearing.

    Berlian East Field Outline

    BE-1

    BE-3

    Block I

    Block II Block III

    Block IV

    BE-4

    BE-2

    1 km

    Fig