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© 2014 PETROLIAM NASIONAL BERHAD (PETRONAS) All rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the permission of the copyright owner.

OVERVIEW OF SHALE HC POTENTIAL IN ONSHORE EAST MALAYSIA

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Jamin Jamil Mohd Idris

Senior Manager Basin Assessment & Promotion (BAP) Petroleum Resource Exploration (PREx) Malaysia Petroleum Management (MPM) PETRONAS

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• Objective

• Introduction

• Summary of Tectono-Stratigraphy of Sarawak & Sabah, East

Malaysia

• Shale Source Rock Properties

• Challenges

• Conclusions

Presentation Outline

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Objective

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To share on the potential of shale bed occurrences for HC prospectivity in East Malaysia

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Introduction

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• East Malaysia comprises of Sabah and Sarawak is a vast area totaling almost 200,000 sq km, making up approximately 60% of the Malaysia land mass

• Much of the land is covered by primary and secondary rainforest, with ranges of mountains and high hills forming undulated terrain towards the inland part of East Malaysia

• Generally the onshore East Malaysia is largely unexplored for conventional

hydrocarbons. A few clusters of oil and gas exploration wells have been drilled near the coast (about 40 in total, many pre-1950’s), and a number of outcrop and mapping studies have been carried out through out this area

• East Malaysia has been identified as the potential area for Unconventional Play, however we are still in the early exploration stage with no well yet to test the unconventional play

N

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Sarawak

Sabah

Geological Map Of East Malaysia (Sarawak And Sabah)

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(PETRONAS 2007)

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(Modified after Lim 1985, Balaguru 1997, 2001, 2003, 2006)

**Note : BMU-Base Miocene Unc., DRU-Deep Regional Unc. / MMU-Middle Miocene Unc., SRU-Shallow Regional Unc.

** Presented and Published in PGCE 2006

Summary of Tectono-Stratigraphy of Sarawak & Sabah

Interbedded sandstone, siltstone and shale (shallow marine)

Deep marine shale

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Sarawak

Sabah

Geological Map Of East Malaysia And Outcrop

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Miocene Setap Shale

Moderately deformed Temburong Formation (Oligocene)

SW

a

b

cbe

NE

thick bedded sst with sharp erosive base overlying greyish shale

younging direction

Miocene Setap Shale

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DATUM AT GROUND SURFACE

Miocene Setap Shale Gross thickness up to 500m (1650ft) mainly thick shale interbedded with thin fine sandstone and siltstone.

Sarawak Sabah

Top Oligocene

Top Setap Shale

SCALE 1 : 25000

SW to NE Well to Well Correlation, Sarawak – Sabah Malaysia

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1730m

1490m

1130m

940m

1890m

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TOC value can indicate the shale's capability of generating and producing gas, and historically an average value between 3 to 6 wt% is preferred for HC generating potential

Total Organic Content (TOC)

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TOC value indicate potential generating and producing gas especially for Miocene Shale

Tmax is defined as the pyrolysis temperature at which the maximum amount of hydrocarbon is released by kerogen. Tmax can indicate the level of maturity of the shale and hydrocarbons generating capability

Tmax

Tmax value indicate shale of expelling oil & wet/dry gas

TOC Miocene Oligocene Outcrop Sample 0.43% - 5% 0.29%-3.33%

Well Sample 0.1% - 4.14% 0.11% - 3.55%

Tmax (oC) Miocene Oligocene Outcrop Sample 411 – 505 375 - 588

Well Sample 361 - 490 357 - 494

Stage of Thermal maturity for Oil

Tmax (oC)

Immature < 435

Early 435-445

Peak 445-450

Late 450-470

Post-Mature >470

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• Shale potential is largely uncertain due to the lack of data available

• Undulated and rough terrain in onshore East Malaysia

• Drilling and operation for Shale HC exploration

• PSC Terms for unconventional exploration yet to be ready

Challenges

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• Unconventional play exploration in East Malaysia is still at an early stage with more analysis and mapping need to be conducted

• Existing wells data and outcrops samples suggests potential of HC prospectivity for shale bed in East Malaysia

• Proper mapping and evaluation of the shale bed over this area is crucial in order to assess the storage and HC generating potential

• PSC terms for unconventional exploration need to be studied and proposed in attracting Foreign Direct Investment to explore in this unconventional play

Conclusions

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Thank You

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