Petroleum Geology
Prepared by:
  Dr. Emmanuel V. Tamesis
                 Oil and Gas Exploration
A. Introduction
&   Petroleum exploration is very expensive. It will cost
    around US$ 4 to 10 million onshore to as much as US$
    30 million offshore to test if oil is present in a prospect.
    These costs include pre-drilling expenses for geology
    and geophysical activities
&   A good understanding of the sedimentary basin is
    essential for a drilling decision, and all available
    information must be used to evaluate a drilling prospect
&   Drilling an exploratory (wildcat) well is the testing of a
    hypothesis developed out of gathering, classifying and
    evaluating related scientific data
&   If successful, the efforts and fruit of labor is very
    rewarding -- most of the world’s top corporations are oil
    companies
                 Oil and Gas Exploration
B. Where Do We Start?
  Since petroleum formation, generation and entrapment
  involves the sedimentary sequence, the petroleum
  geologist has to identify where the sediments, the
  source of organic matter and reservoir rocks have been
  deposited -- the sedimentary basin
1. What is a sedimentary basin?
   &   A depression formed by tectonic processes, flanked by
       topographically high areas that shed thin detritus into
       this depression
   &   It is a settling pond, underlain by basement rocks such
       as igneous rocks, metamorphic rocks or even
       sedimentary rocks which are not capable of generating
       oil or gas (sometimes called economic basement)
                 Oil and Gas Exploration
B. Where Do We Start?
          Sedimentary
               Basins
     of the Philippines
                Oil and Gas Exploration
Central Luzon Basin
                  Oil and Gas Exploration
What is a sedimentary basin?
    &   The basin, besides containing detritus and organic
        matter, also contains water entrapped with the clastic
        sediments during the basin-filling stage
    &   The sedimentary fill may consist of sandstones, silts,
        conglomerates, coal and carbonate deposits such as
        limestone and dolomite
2. Objectives of a Sedimentary Basin Analysis
   a. Depositional history
          i. Environment of deposition
          ii. Facies analysis - a study of changing deposits
          within a stratigraphic unit, or, bound by
          contemporaneous time lines
                Oil and Gas Exploration
2. Objectives of a Sedimentary Basin Analysis
   a. Depositional History (cont’n)
        iii. Sedimentary history
        iv. Stratigraphic hiatus - breaks in the rock record
        represented by unconformities, diatoms, etc.
   And from these, determine which stratigraphic units are
    the potential source rocks, reservoir and seal
   b. Structural Evolution
         i. Basin settings
         ii. Basin-forming processes
         iii. Syn-depositional deformational processes
         iv. Post-depositional deformational processes
   And from these, identify structural style and play types
              Oil and Gas Exploration
2. Objectives of a Sedimentary Basin Analysis (cont’n)
   c. Geological Disciplines Employed in Petroleum
     Exploration
             •    Sedimentology
             •    Stratigraphy
             •    Structural Geology
             •    Geochemistry
             •    Petrography
             •    Geophysics
                               Exploration Strategy
                Economic
 Frontier
                Geologic           Basin        Basin      Appraisal    Prospect
Exploration
              Considerations    Delineation   Evaluation    of Plays   Generation
 Strategy
                 Political
                      Appraisal of Plays
            Acquisition
            of Seismic
                        Detailed
                    Satellite Imagery
                       Analysis to
Appraisal          Localize Structural
 of Plays              Anomalies
                                            On-Site
              Construction                Reflectance
            of Geologic Map                 Spectra
                                                             Subsurface
                                         Sedimentologic     Stratigraphic
                                         Outcrop Analysis    Projections
            Geological
            Field Party
                                         Conventional
                                         Stratigraphic
                                           Mapping
              Prospect Generation
                  Semi-Regional
                   Seismic with
                      In-Fill
               Determination of
               Size of Structures
                 and Geologic
                Growth History
 Prospect                             Specific Prospect              Operational
Generation                               Evaluation                  Preparation
               Determination of
                Petrophysical
                Synthesis and                 Pore Water
                  Prognosis                    Salinities           Porosity and
                                                                    Permeability
               General Evaluation                                  Sedimentologic
              of Prospect Location                                   Projections
             with in Play Framework                                Environmental
             Setting as Determined
               by Sedimentologic
                    Synthesis                     Sedimentologic
                                                    Projections
                                                  Environmental
Flow of Upstream Petroleum Activities
                                BASIN EVALUATION
                                                                   EXPLORATION
                                        Í
                             PROSPECT IDENTIFICATION
                                        Í
                            EXPLORATION WELL DRILLING
                                        Í
Petroleum E & P
                    FIELD DELINEATION AND DEVELOPMENT PLANNING
                                        Í
                  DEVELOPMENT WELL DRILLING AND FIELD PRODUCTION
                                        Í
                        REVISIONS TO DEVELOPMENT STRATEGY
                                        Í
                          WORKOVERS AND INFILL DRILLING
                                                                   PRODUCTION
                                        Í
                               ENHANCED RECOVERY
                                        Í
                                  FIELD DECLINE
                      Simplified Exploration Cycle
                           2             1                                                  8                                 9               10
                                     Literature
                                                                                        Exploration                                          Extended
                      Procurement   research or
                                                                                          drilling                        Discovery          Well, Prod.
                        of block      Farm-in
                                                                                            NX6                                                Test
                                     Proposal
            3                                                                 7
                                                  if packaged by farmor
                                                                                                          9A                                                  11
                                                                 6
                                                                                                      Technical                                             Step-
        Geological                                   Basin                 Prospect
                                                                                                      Problems,                                              out
        activities1                               Evaluation44            Generation5
                                                                                                      Dry, Show                                             well
                                       2-D
                      Pre-seismic
                                     Seismic                                                                              Appraisal              3-D
                      geophysical                                                   5
                                     survey 33                       ABANDON AREA                                           wells              seismic
                        surveys 2
                                                                          7
                                                                                                                    13
                       4            5                                     A
                                                                                                                                                   12
                                                                                                                       DECLARATION
                                                                                                                           OF
                                                                                                                   COMMERCIAL DISCOVERY
                                                                                                                             14
                                                                                                       4 - BASIN EVALUATION                 5 - number of exploration or
1 - GEOLOGIC ACTIVITIES 2 - PRE-SEISMIC GEOPHYSICAL 3 - 2-D SEISMIC SURVEY                             Seismic interpretation                     geologic plays
Field mapping & sampling     Gravity & Magnetics    Reconnaissance                                     Integration of geological and        = number of valid tests
Laboratory analyses                                 Detailed                                                   geophysical data                   before abandonment
Photogeologic interpretation                                                                           Data synthesis
                                                                                                       Structural & stratigraphic studies   6 - number of exploration
                                                                                                       Post-mortem analyses of well                       plays
                                                                                                       results
    Petroleum Exploration
Three main stages involved in searching for petroleum deposits:
   Surface mapping of a sedimentary basin, which includes rock sampling and
   laboratory analysis, and the study of all Geological and structural data.
   Geophysical methods such as magnetic, gravity and seismic surveys are
   employed to gather more information about the subsurface.
   Drilling of an exploratory of ‘wildcat’ well over an identified prospect is the
   final test to confirm the presence of any hydrocarbons.
                Oil and Gas Exploration
2. Objectives of a Sedimentary Basin Analysis
    d. Four Levels of Petroleum Investigation
                    Oil and Gas Exploration
C. Five Stages in Petroleum Exploration
1. Reconnaissance – field geology, gravity, magnetic and seismic
                      Oil and Gas Exploration
    C. Five Stages in Petroleum Exploration
1. Reconnaissance – field geology, gravity, magnetic and seismic
   a. Field Geology
Road Mapping               Coastal Mapping              Aerial
                                                    Reconnaissance
              Oil and Gas Exploration
C. Five Stages in Petroleum Exploration
1. Reconnaissance – field geology, gravity, magnetic and
  seismic
 a. Field Geology - rock identification and sampling
                   Oil and Gas Exploration
  C. Five Stages in Petroleum Exploration
  1. Reconnaissance (cont’n)
      b. Gravity and Magnetic
                                Ship-borne
                                Survey
                                             Gravimeter:
                                             Measures
                                             minute
                                             differences in
Magnetometer:                                the pull of
measures variations in the                   gravity at the
earth’s magnetic field                       earth’s surface
                Oil and Gas Exploration
C. Five Stages in Petroleum Exploration
1. Reconnaissance (cont’n)
   b. Gravity
                 Oil and Gas Exploration
C. Five Stages in Petroleum Exploration
1. Reconnaissance (cont’n)
   b. Magnetic
                                          Air-borne Survey Aircraft
Land Gravity Meter
                Oil and Gas Exploration
C. Five Stages in Petroleum Exploration
1. Reconnaissance (cont’n)
   c. Seismic
                  Oil and Gas Exploration
C. Five Stages in Petroleum Exploration
1. Reconnaissance (cont’n)
    c. Offshore Seismic
An energy pulse (from an air explosion or an electrical discharge) is sent
to the subsurface layers and reflected waves are picked up by
hydrophones contained in a streamer being towed by the survey vessel.
                      Oil and Gas Exploration
     C. Five Stages in Petroleum Exploration
     1. Reconnaissance (cont’n)
           c. Offshore Seismic
                                                      Streamer Cable
Air-Guns
                                               Seismic Boat
3D Offshore Seismic Survey
           In 3D surveys, a multi-streamer array is
           towed by the seismic ship, acquiring
           overlapping swaths of data over the
           entire survey area, which are then
           merged to form a 3D survey block.
Offshore Data Recording
                       Oil and Gas Exploration
     C. Five Stages in Petroleum Exploration
     1. Reconnaissance (cont’n)
         c. Onshore Seismic
Shot holes are drilled to penetrate the weathering zone.
An explosive charge, usually dynamite, is loaded into the shot holes and
detonated, sending sound waves into the sub-strata which are variably reflected
back to the surface.
                         Oil and Gas Exploration
     C. Five Stages in Petroleum Exploration
   1. Reconnaissance (cont’n)
       c. Onshore Seismic
  In some instances,
    an array of huge
      truck-mounted
 vibrators is used as
  the energy source,
        instead of an
explosive charge, for
  transmitting sound
   waves to the sub-
              surface.
Wave Propagation
(through homogenous medium)
      Energy Source
Wave Propagation
(through layered medium)
          Energy Source
Seismic Interpretation Workstation
               Oil and Gas Exploration
 C. Five Stages in Petroleum Exploration
1. Reconnaissance (cont’n)
   c. Onshore Seismic
                     Sound waves reflected from the sub-surface are
                     picked up by an array of geophones which are laid
                     out on the ground along a seismic line and
                     connected to recording instruments through a
                     seismic cable.
               Oil and Gas Exploration
C. Five Stages in Petroleum Exploration
2. Detailed Seismic
2D vs. 3D Seismic Data
                                 Three-Dimensional (3D)
                                 Seismic
  Two-Dimensional (2D)
  Seismic                                Z
                         X
  Y                          Y
2D Seismic Interpretation
              Pinnacle Reefs
               Oil and Gas Exploration
C. Five Stages in Petroleum Exploration
2. Detailed Seismic
       Un-interpreted Section
          Interpreted Section
               Oil and Gas Exploration
C. Five Stages in Petroleum Exploration
2. Detailed Seismic
  W                                       E
                      MA-1        MA-2
                                              3000
3D Seismic Interpretation
    Seismic Interpretation
Composite 2D / 3D Display
               Oil and Gas Exploration
C. Five Stages in Petroleum Exploration
2. Detailed Seismic
               Oil and Gas Exploration
C. Five Stages in Petroleum Exploration
2. Detailed Seismic
3D Display
Oil and Gas Exploration
C. Five Stages in Petroleum Exploration
   3. Wildcat Drilling
Oil and Gas Exploration
C. Five Stages in Petroleum
    Exploration
3. Wildcat Drilling
                 Oil and Gas Exploration
 C. Five Stages in Petroleum Exploration
4. Appraisal Drilling in Case of Discovery
                Oil and Gas Exploration
C. Five Stages in Petroleum Exploration
5. Production
              Oil and Gas Exploration
D. Drilling Rigs
1. Onshore
              Oil and Gas Exploration
D. Drilling Rigs
2. Offshore
              Oil and Gas Exploration
D. Drilling Rigs
2. Offshore Drilling and Production Facilities
                Oil and Gas Exploration
E. Production Facilities
        Nido-Matinloc
              Oil and Gas Exploration
 E. Production Facilities
Galoc
              Oil and Gas Exploration
 E. Production Facilities
Alcorn
               Oil and Gas Exploration
E. Production Facilities
2. Malampaya
              Oil and Gas Exploration
E. Production Facilities
2. Malampaya: Subsea Manifold
   Malampaya Deep-Water Gas to Power
                Project
• Initial Development consists of five
  production wells drilled from a central
  location into the main culmination of
  the Malampaya reservoir
• Subsea wells and a subsea manifold
  were installed at approximately 820
  meters deep and connected to the
  production platform via two 30-km
  flowlines. Umbilical cables remotely
  control the wells and manifold
• Each well is designed to produce 180
  million cu. ft. of gas per day
• Four additional production wells are
  planned for 2009
Malampaya Offshore Facilities
• The Offshore Platform can
  handle 500 million cu. ft. of
  gas and 26,000 barrels of
  condensate per day
• The concrete gravity
  structure has a storage
  capacity of 300,000 barrels;
  stored condensate is
  offloaded by shuttle tankers     113 m
  for shipment to markets
• The export pipeline to
  Luzon has a capacity of 650
  million cu. ft. of gas per day
Malampaya Subsurface Facilities
            MA-9
                   MA-5
                                 Subsea Manifold
           MA-6
                          MA-7
                                  MA-8
Wellhead
               Oil and Gas Exploration
E. Production Facilities
2. Malampaya: Topside, Offshore Platform
              Oil and Gas Exploration
E. Production Facilities
2. Malampaya: Onshore Power Plant
Malampaya Downstream Component
                        SAN LORENZO POWER PLANT /
                        First Gas Corp, 500 MW / Oct 2002
                        STA. RITA POWER PLANT /
                        First Gas Corp. 1,000 MW / Jan 2002
                         ONSHORE GAS PLANT/
                         SC 38 Consortium/Oct 2001
                          ILIJAN POWER PLANT /
                          KEILCO 1200 MW / June 2002
   Petroleum Products
A Barrel of Crude Oil Provides:
                                            Gasoline - 19.5 gallons
One Barrel
= 42 gallons                                Fuel Oil - 9.2 gallons
                                            Jet Fuel - 4.1 gallons
                                            Asphalt - 2.3 gallons
                                            Kerosene - 0.2 gallons
                                            Lubricants - 0.5 gallons
                                            Petrochemicals,
                                            other products - 6.2 gallons
               American Petroleum Institute, 1999
            &
Importance of Petroleum
• Energy Source
   – over 2/3 of the world’s energy sources comes from
     petroleum
   – in the Philippines, 46% of our energy (power, fuel and
     transport) requirements comes from oil
• The Philippines consumes around 350,000 BOPD, of
  which nearly 99% is imported
Petroleum Use in the Philippines
    Form / Use                        %
    • Power                               25.7
    • Diesel                              35.4
    • Premium Gasoline                    14.4
    • Regular Gasoline                    4.6
    • LPG                                 9.9
    • Jet Fuel                             5.4
    • Kerosene                             3.9
    • Others (asphalt, avgas, etc.)        0.7
 Philippine Energy Plan 2004 - 2013
 Primary Energy Mix 2004
                        Coal
                Oil     2.6%     Hydro
               2.1%              5.3%
                                           imported oil
          Gas                                36.6%
          6.7%
    Geothermal
      7.9%
                 Other RE                imported coal
                  30.9%                     7.9%
Indigenous Energy - 152 MMBFOE           Imported Energy - 122 MMBFOE
Self-sufficiency – 55.5%
                 TOTAL : 274 MMBFOE