HYDROCARBON SHALE

RESOURCES IN INDONESIA

Siem Reap, Monday 7 March 2016.

CCOP–KIGAMUnconven'onalOilandGasProject:MappingofBlackShaleForma'onsforthePredic'onofShaleresources(UnConorUCProject)

RESEARCH AND DEVELOPMENT CENTER FOR OIL AND GAS TECHNOLOGY “LEMIGAS”

AGENCY OF RESEARCH AND DEVELOPMENT FOR ENERGY AND MINERAL RESOURCES MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA

Outline

•  Introduc'on•  Thedevelopmentofhydrocarbonshale

researchinIndonesia

•  FutureExpecta'ons•  ClosingRemarks

Introduc5on•  Indonesiahasiden'fied128SedimentaryBasins(Geological

Agency,2009).Basinassessmentswillrevealtheconven'onal

andunconven'onalhydrocarbonpoten'al.

•  Indonesiathathasalonghistoryforanoil&gasproducingcountry,ispredictedtohaveabundantofHydrocarbonShale

thatspreadoutinsomematurebasins.

•  Indonesiageologicallyhaslargepoten'alofhydrocarbonshale.GeologicalAgency(2011)proposetotalspecula've

resourcesofshalegasinIndonesiaforabout574.07TCF.

•  Shalegaspilotprojectisconductedinthemostprospec'ng

areasbyLemigasandGeologicalAgencyinordertoprove

theirpoten'alreservesinacommercialbasis.

IndonesiaSedimentaryBasinsand

HydrocarbonShalePoten'al

ThePromisingHydrocarbonShaleResources

insomeSedimentaryBasininIndonesia

•  LemigasPilotProject

•  GeneralOverviewofHydrocarbonShaleBasin•  LatestCondi'onsandOngoingResearchProjects

ThedevelopmentofhydrocarbonshaleresearchinIndonesia

2011 201420132012

RegionalGeologyandGeophysicsStudyofShaleGasPoten5al

DetailGeologyandGeophysicsStudyofShale

Gaspoten5al

Geology,GeophysicsandReservoir(GGR)StudyofShaleGasProspect,andproposewellloca5on

Drilling,FracturingandProduc5onEvalua5onof

ShaleGasProspect

Lemigascoopera'onwithPT.PertaminaEPin:PilotProjectPhase1

ROADMAPPILOTPROJECTOFSHALEGASEXPLORATIONIN

NORTHSUMATRAANDSOUTHKALIMANTAN

RoadmapOftheProject

SOUTH SUMATRA BASIN 1 (SOUTH AND CENTRAL PALEMBANG SUBBASINS) RESOURCE ASSESSMENT

SOUTH SUMATRA BASIN 2 (NORTH PALEMBANG AND JAMBI SUBBASINS) RESOURCE ASSESSMENT

CENTRAL SUMATRA BASIN RESOURCE ASSESSMENT

NORTHWEST JAVA BASIN RESOURCE ASSESSMENT

NORTHEAST JAVA BASIN RESOURCE ASSESSMENT

SALAWATI AND BINTUNI BASINS RESOURCE ASSESSMENT

20142015

20162017

20182019

Lemigasinhouseresearch:PilotProjectPhase2

GeneralOverviewof

HydrocarbonShaleBasin

•  NorthSumateraBasin

•  BaritoBasin•  SouthSumateraBasin

– South&CentralPalembangSubBasin

– NorthPalembang&JambiSubBasin

Methodsofmapping

andresource

calcula'onof

hydrocarbonsshale

thatdoareas

follows:

Workflowofsweetspotiden'fica'on

Methodology

(Kjellgren&Sugiarto,1989)

SHALE GAS PROSPECT

NorthSumatera

BAONG FORMATION SampleNo :BK-25

Amountofsample:42(4well,32sample;

outcrop:10sample)

§  Litology:Shale/FossilliferousShale§  Mineralogy:Quarz(27-42%),

Carbonate(17-44%),Clay(15-33%)

§  Bri$.Index:0.44–0.78(rata2:0.64)§  TOC:0.53–1.93(average:1.18)§  Tmax:426-464˚C(average:433˚C)§  VR:0.56–0.64(average:0.60)

Kaolinite/microporosity

Fossil

Fracture

OrganicmaYer

FossilSummary:fair-goodshalegasquality

BELUMAI FORMATION

AmountofSample:17(2well,9sample,

outcrop:8sample)

§  Litology:FossilliferousShale§  Mineralogy:Quartz(36-52%),

Carbonate(18-30%),clay(20-32%)

§  Bri$.Index:0.54–0.78(average:0.67)§  TOC:0.69–1.75(average:1.06)§  Tmax:423-472˚C(average:447˚C)

SampleNo :TKH-II4

Fossil

Fracture

Siderite

Illite

Summary:fair-goodshalegasquality

BAMPO FORMATION SampleNo :TKH-11-5

Fracture

AmountofSample:18(1well,3sample,outcrop:15sample)

§  Litology:SiltyShale§  Mineralogiy:Quartz(33-48%),

Carbonate(0–19,Clay(20-60%)

§  BI:0.45–0.76(average:0.56)§  TOC:0.1-0.76(average:0.44)§  Tmax:437-441˚C(average:438˚C)§  VR:0.92–1.09(average:0.95)

Kaolinite

Illite

Summary:fairshalegasquality

NW SE

NW–SESEISMICSECTIONOFNORTHSUMATRABASIN

Besitang-1 Basilam-1

Basement

Blackshale/Bampo

Keutapang

Baong

LowerBaongSand

Belumai

Parapat

NorthSumatra:Ø  Forma'onsprospectcontainingshalegasareBaong,BelumaiandBampo

Ø  BampoForma'onindicatesfairshalegasquality,whereasBelumaiand

BaongForma'onsshowfair-goodshalegasquality

Ø  Resourcesshalegascalcula'onoftheforma'onsreveal114.35TCF

(Satyanaet.al.,1999)

(Ro5nsulu,1993)

SHALEGASPROSPECT

SouthKalimantan(BaritoBasin)

TANJUNGFORMATION

No.samples:20

Ø  Lithology:SiltyShale

Ø  Mineralogy:Quartz,Carbonate,andClay

Ø  BrillenessIndex(average):0.59

Ø  TOC(average):0.53

Ø  Tmax(average):450˚C

Summary:poor-fairshalegasquality

SampleNo :GB-7

Carbonaceousmaterial

PETROGRAPHY

SEM

Foram

Illite

NE–SWSEISMICSECTIONOFBARITOBASINSOUTHKALIMANTAN

NE SW

SouthKalimantan:Ø  Forma'onsprospectcontainingshalegasisTanjung

Ø  TanjungForma'onindicatespoor-fairshalegasquality

Ø  Resourcesshalegascalcula'onoftheforma'onsreveal165.1TCF

AreaJelapang-Rukam

AreaKemang

AreaTepus

AreaSinga

SouthSumateraBasin(SouthandCentralPalembangSubBasin)

TARGETSHALEPLAY

RegionalStra'graphyofSouthSumateraBasin

29.6km

NW SESEISMICSECTIONINBETWEENJELAPANG-1–WAHALO-1

ShalegasPlay

SB-1.1–SB-2

Intervalkontur:25m

N/Gshale~50%

PetaIsopach

SouthSumatra(SouthandCentral

PalembangSubbasins):

•  Forma'ons prospect containing hydrocarbon shale

areLahat,TalangAkarandGumai

•  Lahat Forma'on indicates good shale hydrocarbon

quality

•  Resources hydrocarbon shale calcula'on of theforma'onreveals15.6TCFand1,552.22MMBOE

SouthSumateraBasin(SouthandCentralPalembangSubBasin)

Dependon:Ø  Fieldsurveydata(surfacegeology)

Loca'onoffieldobserva'ons

LMD

9m

2m

2.5m

7m

2m

4m

2m

1.9m

3m

>2m

>3.7m

>2.5m

KolomStra'grafiDe'l

LintasansurveiareaLMD

Characteris5csofShaleHydrocarbonplays,

SHALEOUTCROPPHOTO

COMPOSITESEISMICLINEPASTTHROUGHDEEPAREA(MERANGDEEP,EASTKETALINGDANKETALING)

StructuralElementMapof

SouthSumateraBasin

Stra'graphyColumn

SouthSumateraBasin

MerangDeep

EastKetalingDeep

TempinoDeep

BajubangDeep

BerembangDeep

StructuralMapofBasement

KetalingDeep

DeepAreaastargetSourceRockReservoir(SRR)

SouthSumatra(NorthPalembangand

JambiSubbasins):

•  Forma'ons prospect containing shale hydrocarbon

areLahat/Lemat,TalangAkarandGumai

•  Lahat Forma'on indicates good shale hydrocarbon

quality

•  Resources shale hydrocarbon calcula'on of theforma'onreveals54.77TCFand165.55MMBOE

LatestCondi'onsandOngoing

ResearchProjects

•  Thegovernmentaccommodatesmappingand

calcula'onofpoten'alhydrocarbonShale

conductedbyLEMIGAS

•  Infiscalyear2016mappingwascon'nuedandasthe

roadmapthathasbeenmadethenthisyear'sevent

isinCentralSumatraBasin

•  Un'lnow,theac'vi'escarriedoutares'lllimited

explora'on(preliminaryexplora'on)

FutureExpecta5ons•  GovernmentPolicy

–  NonConven'onalcontractrevisionstoincreaseexplora'on

–  Toaccelerateexplora'onHydrocarbon,thegovernmentformedana'onalExplora'on

commileeonJune11,2015.Oneofitstasksisnon-conven'onaloilandgasresearch

onTer'arybasins,thegovernmentencouragedcompaniestodrillshalehydrocarbons

•  Businessac'vi'es–  Un'lnowthereare5blocksWKMNKoperatedbyna'onalprivateandonlyatthe

explora'onstagewithloca'onsinNorthSumatraBasin,centralSumatraandSouth

Sumatra

–  CurrentlybeingofferedbythegovernmentthreeblockslocatedinSouth

KalimantanandCentralJava

Block Year Basin StatusMNKSUMBAGUT 17MAY2013 NorthSumatera ExplorasiMNKKISARAN 22MAY2015 NorthSumatera ExplorasiMNKSAKAKEMANG 22MAY2015 SouthSumatera ExplorasiMNKSELATPANJANG 22MAY2015 CentralSumatera ExplorasiMNKPALMERAH 22MAY2015 SouthSumatera Explorasi

ClosingRemarks•  Resultsofmappingandresourcecalcula'onShalegasiswasdonein

SumatraandKalimantanshowingresultsquitepromising.

•  Un'lnowtherehasbeennodirecttechnicalevidenceaboutwhether

shalebasinsinIndonesiacanbefracturingtoproduceoilorgas,drilling

shouldbedoneimmediately.

•  Pertaminaasthegovernmentcompanyplanstodrillin2017.

•  Isveryimportantintermsofpsychologicalandinvestmentassoonas

possibletoprovewhethershaleIndonesiaistechnicallyabletoproduce

hydrocarbons.

•  WiththeexistenceofCCOP-KIGAMUnconven'onalOilandGasProject:

expectedtoencourageanincreaseinscienceandknowledgeinthe

explora'onofshaleHydrocarbon.

www.lemigas.esdm.go.id

Ø  HighGammaRay

Ø  HighResis'vityØ  Highorganiccontent(>3%)Ø  Highmaturity(lateoilwindoworhigher)

Ø  Brilleness(>40%Qz.,carbonatecontent)Ø  Thickness(>100q)Ø  Porosity(>4%)Ø  Depositedinmarineenvironments

Ø  TypeIIkerogenØ  Presenceoffracturebarriers(usuallycarbonates)

Characteris'csofgasshalesreservoir:

(Lewisetal.,2004)

METHODOLOGY