gas production

8/13/2019 Gas Production

1/12

Chevrons Gas Production Enhancement Plan

Inter-Ministerial Meeting

DOC ID Chevron 2005

,

Steve WilsonPresident, Chevron Bangladesh


2/12

Chevrons Production Capacity Enhancements

Activity sequentially follows rig after Block 7 Kajal-1 well:

3 wells at Moulavi Bazar to confirm new mapping & fill plant capacity

4-6 wells at Bibiyana for Train 5

4 Additional wells at BY for Train 6 (BY IPP)

Back to Moulavi Bazar for 6 more wells & gas plant upgrade

DOC ID Chevron 2005 2

Appraisal & development drilling at Jalalabad with possible plant upgrade

Significant investment over next 3 years to deliver these projects

Investment justification beyond 3 MB wells depends on:

Commitment on an additional evacuation pipelineStatus of BY IPP construction

Delay in new pipeline will likely result in demobilization of the rig and deferral offurther activity, with postponement of further capacity enhancement


3/12

Moulavi Bazar Planned Activity

Phase 1

Construct 3 new drilling pads

Drill 3 wells to prove up seismic interpretation:

Evaluate BB60, BB70 and subthrust (BH10, BH20, BH40)

Fill gas plant to 150 MMSCFD (add 100 MMSCFD)

Phase 2

Evaluate drilling results, validate seismic & mapping

BB70

Chevron 2008

Prepare development plan to upgrade gas plant capacityand drill 6 more wells (from Phase 1 pads).

No further land acquisition necessary

Phase 3

Execute Phase 2 development plan

Add further production (circa 200 MMSCFD)

Requires new evacuation pipeline

3

New BB60

opportunity


4/12

Key Reservoir Performance DataBibiyana has performed better thaninitially expected.

Reserves have increased significantly.

3D seismic was reprocessed, showingsands are under-developed

Bibiyana - BB60Bibiyana Planned Activity


Multiple opportunities to increaseproduction and improve gas recovery.

Forward plans

Drill 8-10 additional well locations.

Add additional 1-2 trains.

Start pad construction in 2011.

Commence drilling in late 2011, after 3Moulavi Bazar wells.


5/12

Bibiyana Gas Plant Capacity Expansion Plan

Enhanced Liquid Recovery

Optimize recovery of liquids

Progressing a technical study toenhance liquid recovery

Increase of plant gas capacitythroughput is a critical input


Need to know future evacuationpipeline capacity & timing

Gas Capacity Expansion (Train 5)

Common shared utilities and systems (e.g. flare & relief system) require that gas capacityincrease and enhanced liquid recovery projects converge

Study underway for overall debottlenecking, including flare & relief system constraints.

Design needs clarity regarding future capacity expansions (e.g. trains 6, IPP etc).

Should add circa 180 MMSCFD of additional capacity


6/12

Jalalabad Planned Activity

Status:JB Seismic ESHIA study progressing3D seismic survey in planning stage

Goals:Identify upside potential & well locations

Prove up and drill additional

resourcesJustification :


Original Development AreaProposed Expansion

Production data suggest the field is largerthan mapped at presentMB and BY seismic are in similar geologicsetting and both show upside potential

Timing:Currently 90 MMSCFD of constrainedproduction, bottleneck at KT.No additional well capacity needed to fillcurrent plant capacity of 230 MMSCFDMay eventually justify plant upgrade &additional wells .Wells would be drilled after MB and BY

Possiblenew

pools

Possiblereservoir

extensions


7/12

Chevron Projected Production Potential

1,250

1,400

1,550

1,700

1,850

2,000

i o n ( M M C F D

)

Chevron Projected Production Potential

Jalalabad


350

500

650

800

950

1,100

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

G a s P r o

d u c t

Bibiyana

Mou avi Bazar

Per communication to Petrobangla on 2 nd May


8/12

Delivering Production Growth

Work to enhance production capacity involves unprecedented activity in land acquisition,environmental clearance permitting & approvals, civil work, drilling engineering & designand plant construction and modification, in multiple sites at all locations.

Will require significant investment dollars and big increase in organizational capability(e.g. drilling department and formation of Major Capital Projects group).

Known opportunities could add around 900 MMSCFD


- MB +100 +200- BY +180 +180- JB +80 +200Petrobanglas plans may add to this capacity

New pipeline essential to deliver augmented production

A discovery at Block 7 if commercially viable would add to this.


9/12

Plans for new Evacuation Pipeline

JB

BY

Govt PipelineOption 1

Govt PipelineFuture JB

DOC ID Chevron 2005

MBGovt PipelineOption 2

In Progress

Option 1 : Cross-country from BY direct to Dhanua about 150Km. Scope for future tie-in from JBOption 2 : Muchai to Monohordi about 105 km pipeline


10/12

Evaluation of Pipeline Capacity Requirement

Additional capacity possible from Chevron circa 900 MMSCFD

Supplied via Muchai Compressor late 2011

Augmented by Ashugonj & Dhanua/Elenga 2012/2013

Supplied directly to Bibiyana IPP


=

Additional capacity required by Petrobanglas projects = X MMSCFD

Total pipeline capacity required = (620+ X) MMSCFD

Ideally would like pipeline installed & commissioned by year end 2012/2013

Physical route is less important than anticipated speed of installation, to address thecountrys medium term energy crisis in as timely a manner as possible


11/12

Summary

New evacuation pipeline essential. Decision and action needed this year.


,clearance & various approvals.

Information on Petrobanglas Plans for timing of projects will help (BY IPP,pipeline, compressor etc).


12/12

DOC ID Chevron 2005

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