CBM Development An Alternative Energy for Better...

CBM Development CBM Development ––ppAn Alternative Energy An Alternative Energy for Better Futurefor Better Futurefor Better Futurefor Better Future

Yogyakarta, 31th March 2012

Journey towards excellence

IntroductionIntroduction

Energy from Nature. For Nature

CBM Potential Business in Indonesia

Source: DitJen MIGAS

KEMENTERIAN ENERGI DAN SUMBER DAYA MINERAL

PETA WILAYAH KERJA GAS METANA BATUBARA DI INDONESIAPETA WILAYAH KERJA GAS METANA BATUBARA DI INDONESIAStatus : Juni 2011Status : Juni 2011

COALBED METHANE PSCs ACROSS INDONESIASTATUS OF JUNE 2011

© DJ MIGAS 2011

KEMENTERIAN ENERGI DAN SUMBER DAYA MINERAL

ROAD MAP PERKEMBANGAN CBM DI INDONESIAINDONESIA COALBED METHANE DEVELOPMENTROADMAP

1 0 B fDReg: CBM - 1

Rambutan CBM P d E t fCBM Prod Est of 1500 MMSCFD

Ministerial Regulation No. 036/2008, revision to

Ministerial Regulation 1.0 BcfD

1.8 BcfD

Rambutan(APBN) CBM Prod Est of

500 MMSCFD1500 MMSCFD

Gov Reg of CBM to Power

Ministerial Reg

No.1669 CBM Prod Est of 900 MMSCFD

gNo. 033/2006

2008 2009 20102005 2006 20072004 2008 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

to Power

1998 2007

900 MMSCFD

2003 2005 20092008

Ministerial

Signing of more CBM PSCsAvg prod rate assumed = 250 MSCFD/ well

Notes:Min RegNo.033/2006

1st CBM PSC

Projects with Gov. involvement

Start of CBM Contract period

CBM production

Notes:

Feasibility & Economics

© DJ MIGAS 2011

CBM production

PP: Pilot ProjectStudy

KEMENTERIAN ENERGI DAN SUMBER DAYA MINERAL

TYPICAL INDONESIA CBM TYPICAL INDONESIA CBM DEVELOPMENT SCHEMEDEVELOPMENT SCHEME

1. OPEN AREA

BEFORE CONTRACT

30 YEAR CONTRACT PERIOD

EXPLORATION (6+4) YEAR EXPLOITATION 20

YEAR1. OPEN AREA

GENERAL SURVEY (SPEC.SURVEY, RESEARCH)JOINT STUDY

2. OVERLAPPING AREA (O/G ANDMINING)

GENERAL SURVEY (SPEC.SURVEY, RESEARCH FULL FIELD

Firm Commitment1. G&G EVALUATION2 CORE HOLES

1. G&G EVALUATION2. CORE HOLES DRILLING3. MARKET SURVEY

1st 3 (Three) year 2nd 3 (Three) year 3 Th 17 Th

JOINT EVALUATION DEVELOPMENT2. CORE HOLES DRILLING

3. MARKET SURVEY5. PILOT PROJECT 1ST

STAGE(DRILLING & DEWATERING)

3. MARKET SURVEY4. PILOT PROJECT 2ND STAGE

(DRILLING & DEWATERING)

CONTRACT SIGNING POD

© DJ MIGAS 2011

REGIONAL GEOLOGYREGIONAL GEOLOGY

FLOW CHART CBM FLOW CHART CBM RESOURCESRESOURCES

SURFACE GEOLOGICAL SUBSURFACESURFACE GEOLOGICAL DATA

SUBSURFACE GEOLOGICAL DATA

• SURFACE MAPPING• CROSS‐SECTIONS• COAL SAMPLES

• 2D/3D SEISMIC• WELL DATA• GRAVITY• RESISTIVITY

• GEOCHEMISTRY ANALYSIS• COAL PROPERTIES

• RESISTIVITY

• 3D COAL DISTRIBUTION• WELL BASED (CORRELATION)• COAL PROPERTIES

• COAL RANKS• WELL BASED (CORRELATION) 

• SEISMIC ATTRIBUTES 

CBM RESOURCESCBM RESOURCESLAPI ITB, 2012LAPI ITB, 2012

INTRODUCTIONINTRODUCTION

‐ Coal is a source, seal and reservoir rock. Gas is sorbed on thecoal surface. Typically over 90% methane with some ethaned b d dand carbon dioxide.

‐ CBM production requires dewatering the coal formations.When the pressure is reduced, gases are desorbed and flow

h llb l k f f ( l )to the wellbore via a natural network of fractures (cleats).After gas arrives at the wellbore, it is produced utilizingconventional hydrocarbon gas extraction technology

Sl i i i l d i d l i bili ff D

Stage 1,

De-

Stage 2,

Mid

Stage 3,

Decline production

‐ Slow initial desorption and relative permeability effectscreate a “negative gas decline curve.” Unique productioncharacteristics of CBM results in low but inclining initial gasproduction, peaking around 4‐6 years as the coal isd d (d i d)

MCF

D o

r BP

D

Water

Gas

watering

Life

dewatered (depressurized).

‐ There are many benefits of CBM, such as for energy sourcing(gas), power (electricity), industry (methanol, fertilizer). CBM

b d l ll b d (LNG) E CBM ff

Time

8

can be used locally or to be exported (LNG). Even CBM offerbenefits for global climate purposes (CO2 sequestration,Carbon Trading)

Sedimentation and The Formation of CoalSedimentation and The Formation of Coal

From DOE 2004 ALL Consulting (RyderScott Conf CBM 2006)

Cycle of Coal DevelopmentCycle of Coal Development

The Natural Fracture SystemThe Natural Fracture System

RyderScott Conf CBM 2006

The Flow PathThe Flow Path

Ryder Scott Conf CBM 2006

The Flow PathThe Flow Path

Ryder Scott Conf CBM 2006

Regulatory Requirement for CBM Development in Indonesia

Kedalaman Sumur CBM vs. Gas Bumi

CH4

Best >300 -<1,000mCoal SeamCoal Seam

(CBM)(CBM)

Natural Gas

3,000~6,000m

Natural Gas(Gas Reserves)

Oil(Oil Gas Reserves)

Presented to MIGAS, Jakarta 19 July 05_K.Sani

,

(After Lemigas, 2005)

GAS CONTENT CALCULATION

Formula Kim (1977)

G = 32 x (1-a-m) x 0.75 x { ko x (0.096d)no – 0.14 x( 1.8d/100) + 11)} Rf

G = Gas content (sct/ton)( )a = ash content (%)m = moisture content (IM)fc = fixed carbón (%)fc = fixed carbón (%)vm = volatile matter (%)d = depth of coal seam (feet)ko = 0.8 (fc/vm)+5.6no = 0.39 – 0.013 koRf = recovery factor (%) Coal Cutoffy f

range Rf : 50% – 85%Coal Cutoff • 300 – 1500 m (depth)• ≥1.5m (thickness)

Recovery FactorRecovery FactorEstimating the RF

From the sorption isotherm:

(initial gas content – abandonment gas content) / (initial gas content) x 100 = % Recovery Factor

Depending on many factors,the expected range forRecovery factor might be 50% to 85%

Ryder Scott Conf CBM 2006

DRILLING

‐ CBM drilling basically similar to oil and gas conventional, except keeping the drilling cost as low as possiblein order to achieve economics of the project since typical CBM development needs massive number ofwells. In order to do so safe and creative approaches in CBM drilling is strongly recommended.

COMPLETION

CBM wells completion objectives : maximizing contact area of dewatering and minimizing damaging coalseamdewatering and minimizing damaging coalseam.

Surface to In‐Seam Drilling / Completion

Formation Jetting

Diagram showing the production scheme of gas and water for a Diagram showing the production scheme of gas and water for a

typical coaltypical coal--bed methane wellbed methane well

From USGS Fact Sheet FS-123-00 (RyderScott Conf CBM 2006)

SURFACE FACILITIES & VARIOUS ARTIFICIAL LIFTd l f d h

ESP

Production lift damages is the most problem encountered in CBM

PCPSUCKER

ROD PUMP

CBM well site in Marathon

CBM TRANSPORTATION

CBM can be transported and shipped similar to gas conventionalsimilar to gas conventional

LNGCNG

PIPELINES

Medco CBM Portfolios & updates

Energy from Nature. For Nature

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Challenges

Energy from Nature. For Nature

CHALLENGES OF CBM DEVELOPMENT IN INDONESIACHALLENGES OF CBM DEVELOPMENT IN INDONESIA

‐ Footprint ‐ Strategy

‐ Environment ‐ Reporting

‐ Logistics ‐ Administrasi

‐ Perception

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CHALLENGES OF CBM DEVELOPMENT IN INDONESIACHALLENGES OF CBM DEVELOPMENT IN INDONESIA

FootprintpObyektif: Mengurangi seminimal mungkin disputeyang diakibatkan bentrokan kepentingan antary g p gberbagai pemangku kepentingan

o Pembebasan Lahan: Perda, Skema (ganti rugi, sewa,, (g g , ,kontrak lahan), tumpang sari

o Luasan standar per sumur atau fasilitas pendukungo Aturan mengenai densitas / kerapatan sumur CBM

29

CHALLENGES OF CBM DEVELOPMENT IN INDONESIACHALLENGES OF CBM DEVELOPMENT IN INDONESIA

Lingkungang gObyektif: Green industry dengan tanpamengorbankan efisiensi dan efektifitasgpengembangan CBM

o UKL/UPL, AMDAL, Studi Lingkungan, Hydrogeology/ , , g g , y g gyo Aturan pemanfaatan air terproduksi ke lingkungansekitar

o Protokol Kyoto – mengurangi efek rumah kacao Reklamasi lahan / bekas sumur CBM

30

CHALLENGES OF CBM DEVELOPMENT IN INDONESIACHALLENGES OF CBM DEVELOPMENT IN INDONESIA

LogisticsgObyektif: Pengadaan barang dan jasa dalampengembangan CBM yang fleksibel, efisien, danp g g y g , ,efektif, mulai dari perencanaan, persetujuan, daneksekusi operasionalp

o Prosedur AFE, WP&Bo Aturan pengadaan barang dan jasao Kontrakting, Amandemeno Pemanfaatan asset ‐ transfering

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CHALLENGES OF CBM DEVELOPMENT IN INDONESIACHALLENGES OF CBM DEVELOPMENT IN INDONESIA

PerceptionpObyektif: Merubah mind set dalam masyarakatbahwa CBM sangat berbeda dengan oil/gas,g g /g ,terutama dalam hal berikut:

o Keamanan – tekanan dan temperatur rendahpo Kenyamanan – bisa berdiri berdampingan denganindustri lain / masyarakat

o Kemanfaatan langsung ke masyarakat – gas metana,listrik, dan air terproduksi

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CHALLENGES OF CBM DEVELOPMENT IN INDONESIACHALLENGES OF CBM DEVELOPMENT IN INDONESIA

StrategygyObyektif: Skema pengembangan yang sesuaiuntuk CBM

o Sangat fleksibel, disesuaikan keekonomian masing‐masing blok CBM yang bisa sangat berbeda‐beda

o Aturan mengenai POD migas yang bisa tidak sesuaio Komersialisasi retailSk PSC G PSC di t di l ho Skema PSC – Gross PSC dimana cost di manage olehkontraktor

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CHALLENGES OF CBM DEVELOPMENT IN INDONESIACHALLENGES OF CBM DEVELOPMENT IN INDONESIA

Reportingp gObyektif: Format report yang sesuai untuk CBMdan bersifat real time

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CHALLENGES OF CBM DEVELOPMENT IN INDONESIACHALLENGES OF CBM DEVELOPMENT IN INDONESIA

AdministrasiObyektif: Good CBM Engineering Practiceso SHE (Safety, Health, Environment)( y, , )o Metode / Teknis Pelaksanaano Peralatan – rig, sub surface, surface facilitieso Akreditasi – laboratorium pendukung, sertifikasicadangan

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Tipikal Pengembangan GMB & Tantangan

Butuh Lahan Luas untuk mengakomodasi sumur GMB ….

Hutan disekeliling sumur ??????S O/G T t d KSalah satu stasiun O/G Medco Tetangga dengan Kampung

Pengembangan CBM yang bersahabat dengan lingkungan

Analisa Air sumur CBM di blok Sekayuy

Chemical Oxygen Demand

Total Dissolved Solid

FUTURE CBM WATER

MANAGEMENTMANAGEMENT Irrigation

Households

Providing a better life to locals

Livestock

In US, water produced from CBM field t ib t iti l t itcan contribute positively to community

Pengembangan GMB di AS

Sumber: Unlocking Indonesia’s CBM Resources Learning from Global Experiences,

Lilian Fandriana, BP, 3rd IndoCBM, 29th Apr 2010

PADMA Award 2003 & 2007 :

Government of Indonesia Award for Sustainable Community Development Program

PROPER Hijau 2009 :

Minister of Environment Award for consistent environment management

Thank YouPT Medco E&P Indonesia ….. Proud of its achievements!f

PROPER Hijau 2009 :

Minister of Environment Award for consistent environment

Zero Accident 2007 :

Minister of Manpower and Transmigration Award for zero

Social Empowerment Award 2007

National Welfare Coordination

management accident 22.927.321 hours

ISO 14001 (2007 & 2009) :

TUV Nord Indonesia certification for Minister Award for community development program commitment

environmental quality management system