CBMDevelopment p AnAlternativeEnergy forBetterFuture

Yogyakarta,31th March2012
Journey towards excellence

Introduction

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 INDONESIA COALBED METHANE PSCs ACROSS INDONESIA Status : Juni 20112011 STATUS OF JUNE

DJ MIGAS 2011

KEMENTERIAN ENERGI DAN SUMBER DAYA MINERAL

INDONESIA COALBED METHANE DEVELOPMENT ROAD MAP PERKEMBANGAN CBM DI INDONESIA ROADMAP

Reg: CBM - 1 Rambutan (APBN) Ministerial Reg No.1669

Ministerial Regulation No. 036/2008, revision to g Ministerial Regulation No. 033/2006

CBM1.0 Prod d fD E Est t of f 1P 0B BcfD 500 MMSCFD

CBM Prod Est of 1500 MMSCFD

Gov Reg of CBM to Power

CBM Prod Est of 1.8 BcfD 900 MMSCFD

1998

2007 2008 2003 2004 2005 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Signing of more CBM PSCs Avg prod rate assumed = 250 MSCFD/ well
Ministerial Min RegNo.033/2006

Notes:
Projects with Gov. involvement

Feasibility & Economics Study

1st CBM PSC

Start of CBM Contract period CBM production PP: Pilot Project

DJ MIGAS 2011

KEMENTERIAN ENERGI DAN SUMBER DAYA MINERAL

TYPICAL INDONESIA CBM DEVELOPMENT SCHEME

BEFORE CONTRACT

30 YEAR CONTRACT PERIOD EXPLORATION (6+4) YEAR EXPLOITATION 20 YEAR

3 Th 17 Th

1. OPEN AREA GENERAL SURVEY (SPEC. SURVEY, RESEARCH) JOINT STUDY 2. OVERLAPPING AREA (O/G AND MINING) GENERAL SURVEY (SPEC. SURVEY, RESEARCH JOINT EVALUATION

1st 3 (Three) year Firm Commitment

1. G&G EVALUATION 2 CORE HOLES 2. DRILLING 3. MARKET SURVEY 5. PILOT PROJECT 1ST STAGE
(DRILLING & DEWATERING)

2nd 3 (Three) year

1. G&G EVALUATION 2. CORE HOLES DRILLING 3. MARKET SURVEY 4. PILOT PROJECT 2ND STAGE
(DRILLING & DEWATERING)

FULL FIELD DEVELOPMENT

CONTRACT SIGNING

POD

DJ MIGAS 2011

FLOWCHARTCBM RESOURCES

REGIONALGEOLOGY

SURFACEGEOLOGICAL DATA
SURFACEMAPPING CROSSSECTIONS COALSAMPLES

SUBSURFACE GEOLOGICALDATA
2D/3DSEISMIC WELLDATA GRAVITY RESISTIVITY 3DCOALDISTRIBUTION WELLBASED(CORRELATION) SEISMICATTRIBUTES

GEOCHEMISTRYANALYSIS COALPROPERTIES COALRANKS

CBMRESOURCES
LAPI ITB, 2012

INTRODUCTION
Coal is a source, seal and reservoir rock. Gas is sorbed on the coal surface. Typically over 90% methane with some ethane and d carbon b dioxide. d d CBM production requires dewatering the coal formations. When the pressure is reduced, gases are desorbed and flow to the h wellbore llb via a natural l network k of f fractures f ( l (cleats). ) After gas arrives at the wellbore, it is produced utilizing conventional hydrocarbon gas extraction technology Slow Sl i i i l desorption initial d i and d relative l i permeability bili effects ff create a negative gas decline curve. Unique production characteristics of CBM results in low but inclining initial gas production, peaking around 46 years as the coal is d dewatered d (depressurized). (d i d) There are many benefits of CBM, such as for energy sourcing (gas), power (electricity), industry (methanol, fertilizer). CBM can be b used d locally l ll or to be b exported d (LNG). (LNG) Even E CBM offer ff benefits for global climate purposes (CO2 sequestration, Carbon Trading)
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MCFD or BPD D

Stage 1, Dewaterin g Wat er

Stage 2, Mid Life

Stage 3, Decline production Gas

Time

Sedimentation and The Formation of Coal

From DOE 2004 ALL Consulting (RyderScott Conf CBM 2006)

Cycle of Coal Development

The Natural Fracture System

RyderScott Conf CBM 2006

The Flow Path

Ryder Scott Conf CBM 2006

The Flow Path

Ryder Scott Conf CBM 2006

Regulatory Requirement for CBM Development in Indonesia

Kedalaman Sumur CBM vs. Gas Bumi

CH4

Coal Seam (CBM)

Best >300 <1,000m

Natural Gas (Oil Gas Reserves)

Oil

Natural Gas (Gas Reserves)

3,000~ 6,000m ,

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 carbn (%) vm = volatile matter (%) d = depth of coal seam (feet) ko = 0.8 (fc/vm)+5.6 no = 0.39 0.013 ko Rf = recovery yf factor (%)
range Rf : 50% 85%

Coal Cutoff 300 1500 m (depth) 1.5m (thickness)

Recovery Factor
Estimating 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 for Recovery 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 possible in order to achieve economics of the project since typical CBM development needs massive number of wells. In order to do so safe and creative approaches in CBM drilling is strongly recommended.

COMPLETION

CBMwellscompletionobjectives:maximizing contactareaof dewateringandminimizingdamagingcoalseam. coalseam

SurfacetoInSeam Drilling/Completion

FormationJetting

Diagram showing the production scheme of gas and water for a typical coalcoal-bed methane well

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

SURFACE FACILITIES & VARIOUS ARTIFICIAL LIFT

Production d lift l f damages d isthe h most problemencounteredinCBM
ESP PCP SUCKER ROD PUMP

CBMwellsiteinMarathon

CBM TRANSPORTATION

CBMcanbetransportedandshipped similartogasconventional
LNG CNG

PIPELINES

Medco CBM Portfolios & updates

Energy from Nature. For Nature

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Challenges

Energy from Nature. For Nature

CHALLENGESOFCBMDEVELOPMENTININDONESIA

Footprint Environment Logistics Perception

Strategy Reporting Administrasi

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CHALLENGESOFCBMDEVELOPMENTININDONESIA

Footprint p
Obyektif: Mengurangi seminimal mungkin dispute yang y g diakibatkan bentrokan kepentingan p g antar berbagai pemangku kepentingan , Skema (g (ganti rugi, g , sewa, , o Pembebasan Lahan: Perda,
kontrak lahan), tumpang sari o Luasan standar per sumur atau fasilitas pendukung o Aturan mengenai densitas / kerapatan sumur CBM

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CHALLENGESOFCBMDEVELOPMENTININDONESIA

Lingkungan g g
Obyektif: Green industry dengan tanpa g efisiensi dan efektifitas mengorbankan pengembangan CBM / , AMDAL, , Studi Lingkungan, g g , Hydrogeology y g gy o UKL/UPL,
o Aturan pemanfaatan air terproduksi ke lingkungan sekitar o Protokol Kyoto mengurangi efek rumah kaca o Reklamasi lahan / bekas sumur CBM

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CHALLENGESOFCBMDEVELOPMENTININDONESIA

Logistics g
Obyektif: Pengadaan barang dan jasa dalam pengembangan p g g CBM y yang g fleksibel, , efisien, , dan efektif, mulai dari perencanaan, persetujuan, dan p eksekusi operasional o Prosedur AFE, WP&B
o Aturan pengadaan barang dan jasa o Kontrakting, Amandemen o Pemanfaatan asset transfering

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CHALLENGESOFCBMDEVELOPMENTININDONESIA

Perception p
Obyektif: Merubah mind set dalam masyarakat g berbeda dengan g oil/gas, /g , bahwa CBM sangat terutama dalam hal berikut: p rendah o Keamanan tekanan dan temperatur
o Kenyamanan bisa berdiri berdampingan dengan industri lain / masyarakat o Kemanfaatan langsung ke masyarakat gas metana, listrik, dan air terproduksi

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CHALLENGESOFCBMDEVELOPMENTININDONESIA

Strategy gy
Obyektif: Skema pengembangan yang sesuai untuk CBM o Sangat fleksibel, disesuaikan keekonomian masing
masing blok CBM yang bisa sangat berbedabeda o Aturan mengenai POD migas yang bisa tidak sesuai o Komersialisasi retail o Skema Sk PSC Gross G PSC dimana di cost t di manage oleh l h kontraktor

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CHALLENGESOFCBMDEVELOPMENTININDONESIA

Reporting p g
Obyektif: Format report yang sesuai untuk CBM dan bersifat real time

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CHALLENGESOFCBMDEVELOPMENTININDONESIA

Administrasi
Obyektif: Good CBM Engineering Practices (Safety, y, Health, , Environment) ) o SHE (
o Metode / Teknis Pelaksanaan o Peralatan rig, sub surface, surface facilities o Akreditasi laboratorium pendukung, sertifikasi cadangan

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Tipikal Pengembangan GMB & Tantangan

Butuh Lahan Luas untuk mengakomodasi sumur GMB .

Hutan disekeliling sumur

???

S Salah satu stasiun O/G Medco

T t Tetangga dengan d Kampung K

Pengembangan CBM yang bersahabat dengan lingkungan

Analisa Air sumur CBM di blok y Sekayu

Chemical Oxygen Demand

Total Dissolved Solid

FUTURE CBM WATER MANAGEMENT

Irrigation Households

Providing a better life to locals

Livestock

InUS,waterproducedfromCBMfield cancontribute t ib t positively iti l t tocommunity it

Pengembangan GMB di AS

Sumber: Unlocking Indonesias 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 You
PT Medco E&P Indonesia .. Proud of f its achievements!
PROPER Hijau 2009 : Minister of Environment Award for consistent environment management Zero Accident 2007 : Minister of Manpower and Transmigration Award for zero accident 22.927.321 hours

Social Empowerment Award 2007 National Welfare Coordination Minister Award for community development program commitment

ISO 14001 (2007 & 2009) : TUV Nord Indonesia certification for environmental quality management system