1. DEVELOPMENT OF UNCONVENTIONAL RESERVOIRS IN PAKISTAN By Dr. M
DEVELOPMENT OF UNCONVENTIONAL RESERVOIRS IN PAKISTAN By Dr. M. Saeed Khan Jadoon OGDCL, Islamabad APRIL 11, 2011 SERENA HOTEL ISLAMABAD

2. PROVOKING THOUHHTS
With the nuclear industry in crisis and oil prices on the rise, could the solution to our energy problems be in the ground at home? Daniel yergin on the promise of shale gas.
He ," states that the turmoil in the middle east is a "sea change" for the global oil market and that the U.S.A and emerging markets are most economically vulnerable to rising oil prices.

3. Outline of Presentation
Objectives
Energy out Look
Existing Indigenous Resource
International Scenario
Conventional & Unconventional Reservoirs
Potential of Unconventional Resource
Development Model
Economic Consideration
Summary

4. UNCONVENTIONAL ENERGY RESOURCE AVAILABILITY
OBJECTIVES
HOW TO MEET ENERGY REQUIREMENT
OF THE COUNTRY
UNCONVENTIONAL ENERGY RESOURCE AVAILABILITY
DEVELOPMENT PHIL0SPHY

5. Pakistan Energy Out Look

6. Pakistan Gas Out Look

7. Energy Resources Available To Us
Indigenous Resources of Oil & Gas
Hydroelectric
Nuclear
Solar & Wind Energy

8. Primary Energy Supplies By Source

9. Pakistan Indigenous Natural Reserves

10. Sectoral Energy Consumption By Source10

11. INTERNATIONAL SCENARIO
FOR UNCONVENTIONAL
RESERVOIR

12. World Un-Conventional Gas Resource

13. WORLD UN-CONVENTIONAL GAS
40-50 TCF Pakistan

14. European Unconventional Reservoir

15. India Shale Gas & CBM Projects
Started work on CBM 1993
Group of experts was formulated to collect and analyze data.
32 BLOCKS Have been given to different companies
Now India started Production from CBM
Next Few Years, Production will be 38 CM^3/day
ONGC had Recent Discovery of Shale Gas in West Bengal

16. Shale Gas Contribution in USA, 18 % of the Total Production

17. Advance Resources International USA Gas Projected values from different Sources, 2009

18. INDIGNEOUS HYDROCARBON RESOURCES

19. Indigenous Oil & Gas Reservoirs
Unconventional Reservoirs
Poor reservoir properties have capability of storage but poor Productivity
Tight Gas Reservoir
Shale Gas Reservoir
Coal Bed Methane
NOT DEVELOPED YET
Conventional Reservoirs
Sandstone and carbonate Reservoirs.
With good reservoir properties have good capability of storage and Productivity
Reasonable Efforts for Exploration
Explored area is about 275,000 Sq km
550,000 Sq km is unexplored
Current Production
Oil: bbl
Gas: 4.15 BCF

20. Unconventional Reservoir Descriptions
Tight Gas Reservoir
Mostly Sandstone Reservoir
Good storage Capability but poor Producibility.
Distributed over Large Area of Pakistan
Advance Technology Need to Produce
Shale Gas reservoir
Exist in Shale
Source and Reservoir
Good storage Capability but poor Producibility
Distributed over Large Area of Pakistan
Advance Technology need to Produce

21. Unconventional Reservoirs
COAL BED METHAN (CBM)
Gas is generated during Coalification Process
Gas Adsorbed on the Coal
Very poor conductivity
Distributed over Sindh & Punjab Province
Word 10 % Coal Deposits are in Sindh
Total Deposits are 185 billion tone.
Not developed Yet
No Conclusive Work

22. Known Tight Gas Reservoirs22

23. Shale Sequence in Pakistan
Ghazij Shale Thickness (meters)
Vastly Distributed
Thalar Shale
Vastly Distributed – – 184
Samber Shale
Vastly Distributed –
Chichali Sahle
Vastly Distributed – – 130

24. Ghazij Shale Distribution

25. Talhar Shale

26. Chichali Area
Ghazij Area
Talhar Area

27. Coal Fields in Pakistan

28. Gas Potential in these Reservoirs
Source: Weatherford 2010

29. Unconventional Gas Resource
Tight Gas TCF
Ghazig Shale Gas TCF
Talhar Shale Gas TCF
Coal Bed Methane TCF
(Recoverable- Cathy Oil Canada)
Samber Shale
(Moin PPL) TCF
TOTAL

30. Development Challenges
Evaluation Uncertainties
High Investment
Longer Production Time
Longer Payout Time
High Density of wells
Skilled Manpower
Environmental Issue
Political Stability
Will to Accept Challenges
Resolvable
Success

31. Availability of Technology In World
Vertical & Horizontal well
Multilateral Wells
Hydraulic Fracturing
Stimulation Techniques

33. Multilateral Wells

34. DEVELOPMENT PHILOSPHY

35. Development Model-Integrated Approach
GOVT
Distribution
Companies
Manufacturing
Industries
Power
Producer
Exploration Companies

36. Exploration & Production Companies
Should Invest to Explore Tight and Shale gas
Exploration area for Tight and Shale Gas should be awarded to the companies
Price Incentives have been given
Freedom of Marketing of Gas to the Consumer

37. Manufacturing & Power Industries
Should have direct access to Energy Producer
Should have option of buying gas from Producer & paying Tariff to the distribution company for using the network if required
Reference Price should be according to the concession area
Distribution Companies should effectively assist for supply of gas to Industries
Consortium of Industry units to share the cost of energy.

38. Cost Effective Buisness Model
Exploration Companies- Consortium
Work Program for next 3-4 years
Drilling of Vertical, horizontal & Multilateral
Hydraulic Fracturing/Stimulation jobs
Service Providers-Consortium
Bring Relevant Technology
Efficient Execution of jobs
Cost effective Solution
Human Resource Development---Serious Consideration

39. Continue----
Need consortium of industry units for sharing of their cost of energy
No Misuse of Freedom
No Monopolization of any company weather it is service or distribution companies.

40. ECONOMIC EVALUATION

41. Production Challenge
Reference: Weatherford 2010

42. Probable Production Behavior

43. Economic Model for Tight & Shale Gas (Brown Field )
GIIP: 1 TCF
Recoverable Reserves: BCF
Number of wells:
Failure: 10%
Gas Flow Rate: MMSCFD
Development Time: 2 year
Well Capex $: Million
Facilities: Million
Opex: Million
Field Life: 25 year
GAS Price: $ 4.90/MMBTU
IROR: %
Pay back: year
Royalty &Tex Included

44. Economic Model for Tight & Shale Gas (Green Field )
GIIP: 1 TCF
Recoverable Reserves: BCF
Number of wells:
Failure: %
Gas Flow Rate: MMSCFD
Development Time: 5 year
Well Capex $: Million
Facilities: Million
Opex: Million
Field Life: 25 year
GAS Price: $ 6.21/MMBTU
IROR: %
Pay back: years

45. SUMMARY Enough unconventional Reservoir exist in the country
Unconventional Reservoirs are required to be evaluated by collection of more data by initiating Pilot Projects in Shale Gas as earliest as possible.
Exploration blocks may be awarded for unconventional reservoirs.
Economically, Projects in Shale & Tight Gas looks viable.

46. Continue----
Human Resource Development to cater the demand of oil companies operating in Pkistan
Introduction of consortium concept of E & P companies for the planning of their work
Consortium of Service companies for cost effective solution of development of these Reservoirs.
Integrated Approach of all the stack holder is required to develop these unconventional Reservoirs

47. THANKS