The document discusses Pakistan's unconventional energy resources like tight gas reservoirs, shale gas, and coal bed methane. It notes that these resources could help meet Pakistan's growing energy needs. Unconventional reservoirs are estimated to hold over 200 trillion cubic feet of natural gas. The development of these reservoirs provides challenges but is economically viable given current gas prices. An integrated approach involving exploration companies, service providers, industries, and the government is needed to successfully develop Pakistan's unconventional energy resources.

1. RESERVOIRS IN DEVELOPMENT OF
UNCONVENTIONAL PAKISTAN
By
Nighat Seema
Karachi
July 15, 2013
Gulshan-e-Hadeed

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

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 Source

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
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: 60000-66000 bbl
 Gas: 4.15 BCF
Unconventional Reservoirs
 Poor reservoir properties
have capability of storage
but poor Productivity
 Tight Gas Reservoir
 Shale Gas Reservoir
 Coal Bed Methane
 NOT DEVELOPED YET

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 Reservoirs

23. Shale Sequence in Pakistan
 Ghazij Shale Thickness (meters)
 Vastly Distributed- 100 -1200
 Thalar Shale
 Vastly Distributed – 45 – 184
 Samber Shale
 Vastly Distributed – 500- 600
 Chichali Sahle
 Vastly Distributed – 35 – 130

24. Ghazij Shale Distribution

25. Talhar Shale

26. Ghazij Area
Chichali Area
Talhar Area

27. Coal Fields in Pakistan

28. Gas Potential in these Reservoirs
Source: Weatherford 2010

29. Unconventional Gas
Resource
 Tight Gas 40-50 TCF
 Ghazig Shale Gas 20-30 TCF
 Talhar Shale Gas 100 TCF
 Coal Bed Methane 21 TCF
(Recoverable- Cathy Oil Canada)
 Samber Shale
(Moin PPL) 60-80 TCF
TOTAL 241-281

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

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
Brown Field with 8 year development
0
20
40
60
80
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Years of production
GasMMSCFD

43. Economic Model for Tight & Shale Gas
(Brown Field )
 GIIP: 1 TCF
 Recoverable Reserves: 240 BCF
 Number of wells: 25
 Failure: 10%
 Gas Flow Rate: 5MMSCFD
 Development Time: 2 year
 Well Capex $: 478 Million
 Facilities: 50 Million
 Opex: 147 Million
 Field Life: 25 year
 GAS Price: $ 4.90/MMBTU
 IROR: 15 %
 Pay back: 8.5 year
 Royalty &Tex Included

44. Economic Model for Tight & Shale Gas
(Green Field )
 GIIP: 1 TCF
 Recoverable Reserves: 240 BCF
 Number of wells: 25
 Failure: 10 %
 Gas Flow Rate: 5MMSCFD
 Development Time: 5 year
 Well Capex $: 478 Million
 Facilities: 124 Million
 Opex: 147 Million
 Field Life: 25 year
 GAS Price: $ 6.21/MMBTU
 IROR: 15 %
 Pay back: 6.5 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.  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
Continue----

47. THANKS