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GEO ExPro V11i6

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0% found this document useful (0 votes)
424 views104 pages

GEO ExPro V11i6

Geo Expro

Uploaded by

Osman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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vol . 11, no.

6 – 2014

GEOSCIENCE & TECHNOLOGY EXPLAINED

geoexpro.com
Technology Explained:
A New Approach to Cores

EXPLORATION
The Great
Australian
Bight

GEOTOURISM
The Kutch Basin, Western India

RESERVOIR MANAGEMENT
Kirkuk: A Silent Oil Field

INDUSTRY ISSUES
Decarbonising Energy

geology g e o p h y s i c s reservoir  management


We see energy.
Everywhere.
We see it throughout the world in North and South America. In Europe,
Africa, Asia, Australia and the Arctic. We see its promise. Its vastness.
We see it clearly, in sharp relief and exquisite detail. Ensconced in rock
and earth 20,000 feet under the sea floor. We measure its magnetism.
Gauge its gravity. View its vibrations. We see energy where few others
even look. We see its untapped potential. Its true nature. Its hidden value.
We see the world of opportunity it creates. We see commerce enabled,
progress encouraged, life enhanced. We see energy. Everywhere.

See the energy at TGS.com

© 2014 TGS-NOPEC Geophysical Company ASA. All rights reserved.


Previous issues: www.geoexpro.com
52

Geoscience Australia
GEOSCIENCE & TECHNOLOGY EXPLAINED

CONTENTS Vol. 11 No. 6 Dynamic


topography is
This edition of GEO ExPro Magazine focuses on shedding light on
Australasia, the Indian Subcontinent and New Technologies uplift in Australia.

columns features
3 Contents 20 Cover Story - Exploration: The Great Australian Bight
5 Editorial 36 Foldout: Global Plate Tectonic Modelling
6 Market Update 42 Technology Explained: A New Approach to Cores
8 Update 46 Exploration: Madagascar – A New East African Oil Play
14 Licensing Opportunities 52 Technology Explained: Dynamic Topography
16 A Minute to Read 58 Foldout: The Australian North West Shelf
26 GEO Profile: Ruth Schmidt –
70 Reservoir Management: Kirkuk – A Silent Giant Oilfield
An Extraordinary, Unknown Career
74 Industry Issues: Decarbonising Energy
30 GEO Tourism: The Kutch Basin, Western India
64 Recent Advances in Technology: 80 Foldout: UtStord and South Viking Graben
Gas Hydrates V – The Resource Potential 86 Industry Issues: Safeguarding Your Petrotechnical
92 GEO Education: Rejuvenating Opportunities Professionals
96 What I Do: The Chief Geophysicist 90 Technology Explained: DAS – Listening In Downhole
98 GEO Cities: Midland, Texas
100 Exploration Update

Shell
92
102 GEO Media: The End of Country
104 Q&A
Rejuvenating thinking by
106 Hot Spot: Paraguay Draws Attention connecting generations
108 Global Resource Management of explorers.

100

26 80
12
16
10

42 14
98 70

96 30 8
16
36
100 18

14

14 58
106 46
101 52
104
20
www.polarcus.com

Are you ready


for new horizons?
We are.

With a wealth of operational experience, an industry


leading seismic fleet, and a passion for geophysical
excellence, we have what it takes to tackle the most
complex projects, wherever they are.

Imaging tomorrow’s energy™


Editorial

Keep on Innovating

©123RF.com/Paul Fleet
GEOSCIENCE & TECHNOLOGY EXPLAINED

Technological progress and innovation are key to www.geoexpro.com


the oil and gas industry. We may have found the
‘easy’ resources – although the geologists who
GeoPublishing Ltd
explored for hydrocarbons with a compass and a 15 Palace Place Mansion
hand-drawn map in the days before sat-nav and Kensington Court
mobile phones may dispute our definition of easy London W8 5BB, UK
– but we need to constantly innovate in order to +44 20 7937 2224

locate and extract the remaining reserves.


Managing Director
Aided in recent years by consistently high oil Tore Karlsson
prices, but also by the realisation of this need,
the industry has been spending considerable Robotic deep sea repair work on a corroded metal pipe. Editor in Chief
Jane Whaley
capital on R&D in a wide range of fields – from automation and robotics to biotechnology,
[email protected]
nanotechnology and data analytics – and in developing techniques like microseismic and
multistage fracking. In addition, significant sums have been spent on technologies to enhance Contributing Editors
production from both new discoveries and more mature fields. Thomas Smith
A recent worldwide survey of senior industry executives undertaken by Lloyds Register* [email protected]

attempts to assess innovation trends and drivers in the sector. While nearly 60% of the respondents Ken White
said their company had increased R&D spend in the last two years, the report found that [email protected]
technologies to extend the life of current assets or improve efficiency get the greatest priority. Halfdan Carstens
Three-quarters of those questioned said that pressure to innovate has intensified, yet only 25% [email protected]
admitted to being ‘early adopters’ of technology; 20% preferred waiting until a technology was Rasoul Sorkhabi
established before adopting it. Unsurprisingly, the survey found that cost was the biggest barrier to [email protected]
innovation, followed by uncertainty over returns, as well as worries about skills shortages.
Paul Wood
The oil and gas industry is often considered conservative and inherently risk averse. This [email protected]
survey was undertaken before the recent plummet in the oil price; it would be interesting to
know whether the 69% of respondents who said they would be increasing their R&D spend Editorial enquiries
GeoPublishing
over the next two years would still say the same? What then do we need to do to continue
Jane Whaley
developing technologically? +44 7812 137161
Collaboration may become an important factor, both between E&P and service companies [email protected]
and also with partners beyond the industry, as several articles in this edition describe. And we www.geoexpro.com
must continue to invest in training and development, encouraging young minds to tackle the
Marketing Director
issues of innovation in the future. No matter how clever a technology is, people are the key to Kirsti Karlsson
its implementation and success. +44 79 0991 5513
* Lloyd’s Register Energy: Oil And Gas Technology Radar [email protected]

Subscription
GeoPublishing Ltd
+44 20 7937 2224
15 Palace Place Mansion
Kensington Court
London W8 5BB, UK
VOL . 11, NO. 6 – 2014
[email protected]
GEOSCIENC
E & TECHNOLOG
Y EXPLAINED

geoexpro.com
GEO EXPro is pub­lished bimonthly
Jane Whaley EXPLOR ATIO
Technology Expla
A New Approach ined: for a base subscrip­tion rate of GBP
N to Cores

Editor in Chief The Great 60 a year (6 issues).


Australian
Bight We encourage readers to alert us
to news for possible publication
and to submit articles for publication.
THE GREAT AUSTRALIAN BIGHT
Dynamic uplift over the last 40 million years has exposed the vast South Cover Photograph:
Australian Nullarbor Plain, which ends abruptly at a 200 km long line The Kutch Bas
GEOTOURISM
Main Image: Neale Winter/South
of cliffs. These look out over the expanse of the Great Australian Bight, in, Western Indi
RESERVOIR MA
a
Australian Tourist Commission
NAGEMENT
where a new wave of exploration looks to produce exciting results from Kirkuk: A Sile
nt Oil Field
Inset: PetroArc International
these pristine waters. INDUSTRY ISSU
Decarbonising ES
Energy

Inset: Digital archiving of core information affords the oil and gas Layout: Bookcraft Ltd.
GEOLOGY
GEOPHYS
ICS
RESERVO
IR MANAGEM

industry an opportunity for rapid core evaluation.


ENT

Print: NXT Oslo Reklamebyrå

© 2014 GeoPublishing Limited. issn 1744-8743


Copyright or similar rights in all material in this publication, including graphics and other media, is owned by GeoPublishing Limited, unless otherwise stated.
You are allowed to print extracts for your personal use only. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any
form or by any means electronic, mechanical, photographic, recorded or otherwise without the prior written permission of GeoPublishing Limited. Requests
to republish material from this publication for distribution should be sent to the Editor in Chief. GeoPublishing Limited does not guarantee the accuracy of the
information contained in this publication nor does it accept responsibility for errors or omissions or their consequences. Opinions expressed by contributors to
this publication are not necessarily those of GeoPublishing Limited.
GEO ExPro December 2014 5
Market Update

From Scarcity
to Abundance
Quaternary

Neogene
2.6
Tertiary

Cenozoic
South Atlantic starts opening
Supply glut and growth worries – a recipe for 23

Paleogene
lower oil prices.
Oil prices dropped sharply over the summer and in October they 66*

Norwegian-Greenland Sea starts opening

Alpine orogeny
really nose-dived. Prospects of surprisingly weak demand have
oil industry people tearing out their hair, companies trembling Cretaceous

Laramide orogeny
at the knees and financial traders selling loads of paper barrels.
Unfortunately, there is little hope of improvement any time soon.
The demand for oil has weakened sharply as a consequence
of poorer outlook for economic growth in large oil-consuming

Pangaea breakup
145
countries such as China, Brazil, the Euro area and Russia. US

Mesozoic
economic growth indicators remain positive, but concern is Jurassic
mounting that weaker global growth will begin to be felt even there.

North Sea rifting


High oil prices earlier this year contributed to strong growth in
shale oil production in the US and Canada – but this is not cheap

Central Atlantic starts opening


201*

*The Big Five Extinction Events


to produce, so how much can oil prices fall before production slows
down? The answer is complex, as production costs vary hugely. Triassic
With today’s technology it is possible to produce more oil per well,
driving costs down, while lower oil prices mean equipment and rigs
are hired on short-term contracts, helping drive down rental prices. 251*

Gulf of Mexico rifting


The shale revolution has reduced the US’s oil import requirement, so Permian

Phanerozoic
countries that previously exported light oil there must now look for
other export markets.
299
Will OPEC Cut Production? Carboniferous

FORMATION OF PANGAEA
Contrary to market expectations, the OPEC countries increased
their production in September, rather than cutting production to
defend their unofficial price target of US$ 100/barrel. There are
many possible explanations for this move. The recent sharp increase 359*
in Libyan production, despite its political instability, was a surprise.
Devonian
Increased competition in the Asian market and a strategy focusing
Paleozoic
on maintaining market share are other possible explanations. The
Saudi government can handle periods of lower oil prices and may
have concluded that those benefiting the most from a production cut
Variscan orogeny

would be the US and Russia. 419


Lower forecasts of demand growth in 2015 and increased Silurian
production by other producers mean that OPEC may have to 443*
reduce its total production and agree new country-specific quotas. Ordovician
Caledonia orogeny

With substantial political tensions inside the cartel and increased


competition, Saudi Arabia may also hope that keeping the oil price
low might encourage all members to abide by the agreed production
volumes. Countries like Venezuela, Iran, Iraq and Nigeria need an 486
oil price much higher than US$ 86/barrel to balance their budgets, Cambrian
so this strategy may work.
A factor contributing to the sharp drop in oil prices is increased
concern in the financial markets about the direction of the world 542
The Great Unconformity
economy. After the 2011 euro crisis fluctuations in oil prices dropped
to around 15% over the past year. But with speculation about growth,
uncertainties and price fluctuations both rose, triggering a sell-off of
Neoproterozoic
Precambrian

more risky assets like oil, further intensifying the drop in oil prices.
These will remain low for a while yet, increasing pressure on oil
companies to trim costs and boost earnings.
Thina Margrethe Saltvedt

6 GEOExPro December 2014


Onshore Croatia
Newly-Enhanced Seismic for 1st Onshore License Round

Block
DR-02

Block
DR-04
Block
DR-03

Block
SA-08
Block
Block
SA-09
SA-10

Legend
Croatia 2014 Onshore reprocessing
(Phase 1 = 4,000 km)
Croatia 2014 Onshore reprocessing
(Phase 2 = 8,000 km)
Croatia 2014 Onshore reprocessing
(Phase 3 = 3,000 km)
Gas fields
Oil Fields

The first onshore licensing round in Croatia officially closes in February


2015. This is the first of three tenders for onshore tranches in the
forthcoming period. The first license round comprises a total of 6
blocks with a total area of 14,600 km2 in the Drava, Sava and Slavonija
Basins, in the prolific southern Pannonian Basin.

Spectrum has recently enhanced 15,000 km of 2D Multi-Client seismic


data over these basins using a modern PSTM sequence. This data
displays considerable uplift on the original and is available now.

+44 1483 730201


[email protected]
www.spectrumasa.com
Update

Bangladesh Offers ABBREVIATIONS

New Exploration Arena Numbers


(US and scientific community)
A ruling by the Permanent Court of Arbitration in The Hague on 7 July 2014 has M: thousand = 1 x 103
delineated the maritime border between India and Bangladesh, with Bangladesh MM: million = 1 x 106
B: billion = 1 x 109
winning 19,467 km2 of the 25,602 km2 of disputed maritime area. This ruling means
T: trillion = 1 x 1012
Bangladesh has finally, after 35 years of inconclusive negotiations, legally established
its maritime boundaries, a separate maritime dispute with Myanmar having been Liquids
settled in 2012. The peaceful settlement of the Bangladesh-India border dispute barrel = bbl = 159 litre
is a positive step forward in the broader context of gradually improving relations boe: barrels of oil equivalent
between the two countries and increasing energy interdependence. bopd: barrels (bbls) of oil per day
bcpd: bbls of condensate per day
New Round Coming Up bwpd: bbls of water per day
Following the ruling, which
Gas
is binding on both parties,
MMscfg: million ft3 gas
the chairman of state-owned MMscmg: million m3 gas
Petrobangla, Hossain Monsur, Tcfg: trillion cubic feet of gas
indicated that Bangladesh will
launch a new round of offshore Ma: Million years ago
oil and gas tenders in the Bay of
Bengal in the near future; ten LNG
blocks are expected to be offered. Liquified Natural Gas (LNG) is natural
However, the removal of uncertainty over maritime sovereignty will not of itself be gas (primarily methane) cooled to a
temperature of approximately -260 oC.
sufficient to attract international investment in exploring the Bay of Bengal, as was
amply demonstrated in Bangladesh’s lacklustre 2012 offshore bidding round.
NGL
Various aspects of the offshore model PSC came to light when ConocoPhillips Natural gas liquids (NGL) include
identified a large deep-sea oil and gas prospect in Block 11, but could not proceed propane, butane, pentane, hexane
towards drilling as it felt that the financial risk was too high. Learning a lesson and heptane, but not methane and
from poor response to the two previous offshore oil and gas bid rounds in 2008 ethane.
and 2012, the government is set to revise its model production sharing contract
with better incentives. In addition, the government will shortly tender for a Reserves and resources
contractor to conduct a seismic survey in early 2015 in the Bay covering 10,000 P1 reserves:
Quantity of hydrocarbons believed
line-kilometres in both deep and shallow waters to stimulate bidders’ interest. At
recoverable with a 90% probability
present, Bangladesh has no data about offshore prospects to attract oil companies,
and the planned survey, estimated to be completed within eight months, would
P2 reserves:
generate data to be available to interested bidders in an offshore bid round
Quantity of hydrocarbons believed
scheduled for 2016. recoverable with a 50% probability
Bangladesh had a single producing field in the Bay of Bengal, the Sangu Field
operated by Cairn Energy (Capricorn Energy), a subsidiary of Santos International, P3 reserves:
but operations were shut down due to lack of production in October 2013. Quantity of hydrocarbons believed
Consequently the offshore remains a vastly underwexplored arena, with only 17 recoverable with a 10% probability
new field wildcats in an area covering 63,000 km². Cairn drilled two multi-Tcf
prospects (Magnama 3.5 Tcf, Hatia 1.0 Tcf) near the Sangu Field in late 2007/ Oilfield glossary:
early 2008, but both were disappointing and require further appraisal. Magnama www.glossary.oilfield.slb.com
1 encountered a number of thin, normally pressured gas bearing sands (20-40m)
which may thicken on the flanks of the structure, while Hatia 1 found non-
commercial volumes of hydrocarbons and was suspended pending possible
re-entry after evaluating the up-dip potential.
Currently there is too little geological data on Bangladesh deepwater blocks to
make a prediction on prospectivity or likely resources. Nevertheless, recent big
gas discoveries off the Arakan coast of Myanmar are just about 100 km south of
St Martin’s Island in Bangladesh and these, along with those on the Indian side,
have raised the interest of gas explorers to venture out into the Bay of Bengal.
Only intensive exploration by companies with high-tech high-cost capabilities can
actually offer a definitive answer.
Ken White

8 GEOExPro December 2014


NEW

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EXTENDING YOUR FRONTIERS

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capable of continuous acquisition at 400°F.
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pressure wells and integrating new high speed
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www.sercel.com ANYWHERE. ANYTIME. EVERYTIME.


Update

The APPEX Effect! MIKE LAKIN, APPEX 2015 Chairman


With the present state of the world’s economy and the outlook for 2015, it’s important
to remember the ‘four Rs’ of the A&D process.
It is that time of year again when most of the upstream world’s an average of over 12 months to complete, so planning and
attention is tuned to the end of the year. As 2014 is rapidly optimising a project marketing campaign for 2015 should
running out, budgets for 2015 are being finalised, what remains have started by now for companies with obligations in 2015,
of any budget for this year is being allocated to existing and and also for those with commitments in 2016.
new opportunities and the majority of the workforce is thinking
about a short break around Christmas and the New Year. Global Meeting
The state of the world’s economy obviously plays a key The annual Global APPEX, now in its 12th year, is just one of
role in the financing of upstream deals and the ability the key platforms where at least three of the Rs are available
of E&P companies to fund their international activities, all under one roof. It will again be held during the first week
which inevitably includes work programme obligations in March at its traditional home in the Business Design
and commitments. With exploration ever more difficult to Centre in Islington, North London, just a stone’s throw from
finance in the present climate, even where organisations have the centre of the city.
enough money to fund their obligations, reducing risk by Year on year, attendance at this specialised international
farmout, strategic di­vest­ment of interest or even just a wish A&D event has grown and, based on the growth of the
to find strategic partners with com­plimentary expertise, leads last few years, we can expect to see over 800 of the world’s
companies to undertake an A&D process. upstream decision-makers in London, either looking for new
To achieve this, it is essential to be mindful of what are opportunities or themselves looking for partners. If you are
sometimes referred to as the ‘four Rs’ when activating a one of these key people and are either looking to buy or sell
divestment or farmout process: E&P interests, then if you have not been before you should
• RIGHT Information consider doing so in 2015, where early registration is advised,
• RIGHT People particularly if your company’s plans involve exhibiting and
• RIGHT Way presenting project opportunities. If you are planning a return
• RIGHT Time visit, please reserve the first week in March 2015 and we look
Essentially, providing the right information, in the right forward to welcoming you back. More often than not, we are
way, to enough of the right people and at the right time! told by attendees that APPEX in London is a must for any
Sounds simple, but many forget how long the process can company involved in global upstream A&D. We look forward to
take and rarely start it early enough. Independent global seeing you there if you are one of those people!
farmout statistics from around 3,000 transactions reviewed (PS: Register before 2 January for the Early Bird rate and
and tracked over 15 years clearly show that a farmout takes save up to 30%!)

APPEX 2014 attracted over 800 delegates.

10 GEOExPro December 2014


WITCH GROUND GRABEN
New technology revitalizes plays in the Central North Sea
GeoStreamer® data reveals intra-reservoir reflectors with unseen clarity enabling
the identification of new prospects and leads in the existing plays.

The Witch Ground Graben consists of 4,588 sq km of GeoStreamer data.

The area contains several high profile fields – most noticeably Athena, Claymore
and Hood field.

Athena Claymore Hood FOR ALL ENQUIRIES PLEASE CONTACT


[email protected]

A Clearer Image MultiClient


Marine Contract
Imaging & Engineering
www.pgs.com Operations
Update

New Geoscience Hub for Scotland


A new research centre has been named after one of the founding fathers of geology.
Sir Charles Lyell (1797–1875) was one of (see GEO ExPro Vol. 11, no. 3), the
of the leading geologists of his day, Lyell Centre looks set to become a focus
author of the seminal work Principles of excellence for the geosciences in the
of Geology, which popularised James oil and gas industry. Heriot-Watt has
Hutton’s theory of uniformitarianism, the funding for fifteen new posts under
and a close friend of Charles Darwin. their Global Platform Appointment for
He was also Scottish and married to the Research Leaders scheme and will be
daughter of geologist Leonard Horner, advertising the positions shortly.
founder of Heriot-Watt University in In addition, BGS experts in marine
Edinburgh. So it is fitting that a new geological studies, Earth observation,
research centre at Heriot-Watt has been carbon capture and storage and shale
named after such an important figure in gas investigation will all be based in
the history of geological study. the new establishment, encouraging
synergies between the various branches
Promoting Synergies of geoscience to enable them to tackle
The Sir Charles Lyell Centre of Earth the major issues of natural resources,
and Marine Science and Technology is environmental impact, government
the result of collaboration between the regulation and energy supply in a
university and the British Geological responsible and sustainable way. This
Survey (BGS), which has long had fusion of pure and applied scientific
a major presence in Edinburgh. By expertise will encourage the use of
creating a new, purpose-built centre, pioneering methods to create real
jointly funded by NERC (the UK’s world solutions in areas as varied but
Natural Environmental Research interconnected as earth processes,
Council), the Scottish Funding Council global change and ecosystems, seafloor-
and Heriot-Watt University, these mapping using advanced robotic
two academic institutions intend to vehicles, earthquake and volcanic risk,
form a world-leading research hub monitoring and energy security.
in subsurface geoscience. Initially,
the BGS was destined to move from Long Connection with Geology
Edinburgh due to funding cuts, but the Heriot-Watt University was founded by
establishment of this centre with an Leonard Horner and Robert Bryson in
investment of £22m has turned a threat 1821 as the Edinburgh School of Arts. It
into an investment. Building work will was the world’s first Mechanics Institute,
commence in January and should be designed to give ordinary people a Sir Charles Lyell (top) and Leonard Horner.
finished by spring 2016. specialist education in science and
The centre will be the biggest applied technology, and it started a worldwide an Elizabethan philanthropist – and was
geoscience institute in the UK and one education movement. Although Horner awarded university status in 1966.
of the largest in Europe, with more than was by profession a linen merchant A distinguished alumna of Heriot-
250 people based in it. A considerable and Bryson a watchmaker, both men Watt was Dame Maria Ogilvie Gordon,
number of these will be post-graduate were very interested in geology and who went on to become the first woman
and doctorate students studying the natural sciences. Horner was one fellow of the Geological Society, the
through the newly formed School of of the very earliest members of the first woman to be awarded a Ph.D by
Energy, Geoscience, Infrastructure and Geological Society of London, joining it Munich University and the first female
Society, which itself illustrates the way in 1808, a year after it was formed, and recipient of the Geological Society’s
in which these disciplines are uniting he was elected its President in 1846 and Lyell Medal. She would surely have been
and co-operating – a sure indication of 1860, while Bryson was a Fellow of the very proud of this new centre.
the future way forward. With a strong Royal Society of Edinburgh, Scotland’s Further details about the Lyell Centre can
petroleum geoscience involvement national academy of science and letters. be obtained from Professor John Underhill,
through the existing programmes in The institution became Heriot Watt Heriot-Watt’s Shell Chair of Exploration
the university, including the new NERC College in 1885 – named after the Geoscience, who is leading their Earth
Centre for Doctoral Training that Heriot- famous Scottish inventor and mechanical Science recruitment campaign (email:
Watt and BGS are both core partners engineer, James Watt, and George Heriot, [email protected])

12 GEOExPro December 2014


Highlighting Hidden Value

Assessing source rock potential is the essential first For more information, contact:
phase of subsurface exploration. You need rapid
Website: www.neftex.com
access to a wealth of readily accessible data to
Email: [email protected]
ensure fast and accurate prospect evaluation.
Tel: +44 (0)1235 442699
Delivering the fundamental information you need Facebook: www.facebook.com/neftex
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the Neftex Earth Model product suite.
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Now Explore
Licensing Opportunities

Prospective Frontier Acreage on Offer


KEN WHITE
Greece
The offshore blocks offered in the country’s Second International from 1,800 km2 to 9,500 km2; they are smaller in the Ionian Sea
Licensing Round 2014 were published in the Official Journal of and larger offshore southern Crete. Water depth ranges from
the European Union on 26 August 2014. The bid deadline is six several hundred metres to 2,500m. New favourable fiscal terms
months after this publication date; the bid evaluation will take are being implemented to encourage potential investors with tax
three months and the lease agreement can be signed within rate cuts. Companies will be subject to a special income tax at a
another three months. The exploration term will be for eight years rate of 20% and a regional tax of 5%.
(3+3+2). The inventory includes a total of 20 blocks, ten of which PGS acquired 12,431 km of 2D seismic data early in 2013; the
are located offshore western Greece, one offshore southern Greece interpretation report and the hydrocarbon potential assessment
and nine offshore southern Crete. The size of the blocks range study is available to interested parties.

Suriname Mozambique
Staatsolie is offering three offshore blocks (58, 59 and 60) in the Hosting a presentation in London on 23 October 2014, the
Suriname-Guyana Basin through a competitive tender process, with INP launched its 5th licensing round comprising 15 on and
two onshore blocks (Commewijne and Nickeris) available by way offshore blocks each of around 5,000 km2, with the total
of direct negotiation to pre-qualified companies. The offer closes area on offer amounting to 76,800 km2. Application deadline
on 30 January 2015. Winning bidders bear sole exploration risk will be 20 January 2015. The inventory comprises, offshore,
for the initial award period of seven years but Staatsolie can elect three blocks in the Rovuma Basin, two in the Angoche area
to participate in development and production operations with a (Zambezi Delta), and six blocks east-north-east of Sasol
maximum stake of 20%. Income tax of 36% is fixed for the term of acreage, also in the Zambezi Delta. Onshore blocks are
the licence and a royalty of 6.25% is payable on gross production. offered in the Pande Temane region of the Mozambique Basin
Suriname is still a virtually unexplored territory, with only 25 offshore and in the Palmeira area, north-east of Maputo.
exploration wells drilled in an area of approximately 150,000 km2, and As the previous legislative framework for the oil and gas
is a frontier exploration play. Offshore exploration has so far failed sector was unsuitable for such rapid developments in the
to lead to commercially recoverable reserves, in part due to a lack of sector (for example, it did not cover LNG processing) and
quality seismic data. Despite this, competitive bidding rounds were did not provide protection to investments relating to the
commenced in 2001, following a study conducted by the United States petroleum sector, the Mozambican Parliament approved
Geological Survey, which concluded that the Suriname-Guyana Basin a new Petroleum Law on 14 August 2014. This expressly
may hold 15 Bbo of potentially recoverable reserves. Tullow Oil’s provides for the security of both national and foreign
discovery of hydrocarbons in neighbouring French Guiana in 2011 direct investment in oil and gas in respect of the protection
was seen as evidence of the extension across the Atlantic of the Jubilee of property rights and undue and unfair expropriation.
play from Ghana. There is therefore a great deal of expectation within Unfortunately, the new law is lacking in detail, and many
the industry that this current round will attract further interest from significant uncertainties remain concerning the rules
international players and that a major discovery is possible (see GEO governing the sector, while a number of its provisions may
ExPro Vol. 10, No. 4). prove difficult for investors to navigate.

14 GEOExPro December 2014


Full Service Marine Geophysical Company

For more information visit dolphingeo.com


or email us [email protected]

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A Minute to Read… News from around the world

India Diversifying Supply


Despite having proved reserves of
million barrels per day
5.7 Bbo and 47 Tcfg, Indian O&G
4.5
production has not kept pace with forecast
4.0
rising demand in recent years,
3.5
partly fuelled by highly regulated total oil consumption
3.0
and subsidised consumer fuel
2.5
prices. India was the fourth-largest net imports
2.0
consumer of oil and petroleum
products after the US, China and 1.5
total oil production
Japan in 2013, and also the fourth- 1.0

largest net importer of crude oil 0.5

and petroleum products. There 0.0


2000 2002 2004 2006 2008 2010 2012 2014
remains a severe shortage of energy
Source: U.S. Energy Information Administration, International Energy Statistics and Short-Term Energy Outlook, June 2014
for electricity generation, leading
to blackouts, even though much of Indian petroleum and other liquids production remains relatively flat, while consumption increases.
India’s coal is used in this sector.
Indian companies are searching further offshore into in the west and north-east, which are becoming increasingly
deeper water and purchasing stakes in overseas oil fields to mature. Foreign investment in India has waned in recent
try to bridge this gap and decrease the reliance on imports. years, both because of increased competition from domestic
They are also looking at enhanced oil recovery and marginal Indian companies and India’s complex exploration and
field development projects in the traditional producing basins production laws.

UK 28th Round
In early November the UK government announced that in the technical work which requires measures to encourage more
28th UKCS Licensing Round it had awarded 134 licences investment in the UKCS.”
covering 252 blocks to over 80 companies. This was fewer Other issues facing exploration in this already mature area
than in the previous round, the most successful ever, and the include rising costs and an ageing infrastructure, which will
number of wells committed, five firm and four contingent, require cooperation between producers to ensure that all
was the lowest since the 22nd Round in 2004. UK Oil & Gas, remaining reserves can be efficiently produced. The industry
the representative organisation for the UK offshore industry, is hoping that the government will soon announce fiscal
pointed out that the disappointingly low number of wells incentives aimed at stimulating hydrocarbon exploration and
“highlights the need to stimulate new plays through detailed a simplification of the present complicated tax regime.

RSI Seals Deals


Rock Solid Images (RSI) is an independent geoscience another US$2 million deal, this time with GDF Suez Norge,
consulting firm offering quantitative reservoir to provide quantitative geophysical services over a three-year
characterisation with the goal of reducing exploration drilling period in a prospective
risk and optimising reservoir appraisal and development new area offshore
plans. As an industry leader in the interpretation and Norway.
integration of seismic data with well logs, CSEM and MT data,
the company uses advanced rock physics methods combined
with sophisticated geologic models to deliver robust and
reliable predictions of reservoir geometries and properties
to our customers.
Two recent contract awards demonstrate the
range and value of RSI’s services. In October it
was chosen to provide rock physics-driven
inversion and interpretation services to
a Latin-American NOC in a contract
worth in excess of $2 million; work
will commence immediately and
will be complete in the first half of
2015. And in November RSI agreed
RSI

16 GEOExPro December 2014


Globe: Regions
Getech is pleased to
announce that its flagship
new ventures platform,
Globe, is now available
on a regional basis.

Getech’s New Regional Reports


South Atlantic: 2014
Equatorial Atlantic: 2014
East Africa: 2014
• Structural framework and • New plate tectonic models
crustal architecture based on
• Landscaspe and
Getech’s extensive gravity
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• Petroleum system analysis
• Palaeogeographic
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petroleum prospectivity of these regions.

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[email protected] www.getech.com
A Minute to Read… News from around the world

Strategies for a Changing Landscape


With continuing political uncertainty around the world, it

©Energy Institute
is apt that the theme of the 2015 International Petroleum
(IP) Week is ‘Strategies for the changing oil and gas
landscape’, as the role of oil and gas in sustaining society and
economic growth has been brought closer to the fore and the
need for the industry to meet future challenges is becoming
ever more acute.
IP Week, which is organised by the UK Energy Institute,
is a recognised forum where over 2,000 influential O&G
industry figures and government officials can debate, discuss
and share knowledge about the opportunities and challenges
facing the sector today over three days of conferences,
roundtables and breakout sessions. This year it includes a new
focus on the US and Latin America, while the Middle East,
Russia and the CIS, Africa and the Asia-Pacific regions remain
key areas of interest. The guest of honour at the IP Week Royal Dutch Shell, while Andrew Austin, CEO, IGas Energy
Dinner will be Ben Van Beurden, Chief Executive Officer, will preside over the IP Week Lunch.

Research Consortium for ffA


ffA’s GeoTeric software is based around the Geological The foundation members of the consortium include
Expression approach to seismic interpretation, founded on a Centrica Energy Norway, Lundin Norge, VNG Norge and
data-driven, interpreter-guided approach to using 3D seismic E.ON E&P. Centrica, for example, uses GeoTeric to visualise
data for enhancing our understanding of the subsurface. prospective depositional systems and other geological
Appreciating how geoscientists work and process data to features to a degree that is beyond that obtainable through
gain a deeper understanding of the subsurface is an essential conventional interpretation tools, and it believes that this
component of the software design, so ffA has formed a consortium will be the vehicle to take understanding of
GeoTeric Research and Development Consortium to bring reservoirs to a new level of detail, through the combination
together technology focused E&P companies to guide the of well data, modelling and focused spectral analysis, thus
on-going development of the software. unlocking the potential for improved decision making.

New Philippines Survey

Searcher Seismic
A new review of two basins in the Philippines, using recently
acquired regional seismic data obtained by Searcher
Seismic, suggests significant, previously unrecognised,
hydrocarbon potential. The basins adjacent to the island of
Palawan are the most prolific hydrocarbon producing areas
in the Philippines. To date most of the exploration effort
has been focused on north-west Palawan, but the review
has identified significant depocentres in the East Palawan
Basin, with the necessary ingredients for one or more proven
petroleum systems, suggesting the area could have significant
hydrocarbon potential.
The West Luzon Basin, which has four blocks offered
as part of the PECR5 bid round, is a virtually unexplored
deepwater basin that could have significant petroleum
potential. It appears to have a similar Miocene history to
the Mindoro Basin, where drilling results demonstrate the
presence of a working petroleum system. Available data
indicate the basin contains more than 4,000m of relatively
undeformed sediments that are likely to be Miocene to
Recent in age, and that this section may be underlain by an
even greater thickness of older Tertiary sediments, which
may also have petroleum potential.

18 GEOExPro December 2014


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boundary pushers,
concept architects
and restless
minds.

GeoTeric is on hand with Geological Expression software,


services and support centred around you.
When a seismic interpretation project hits a problem it’s new ideas and insights
that get things back on track. GeoTeric gives you intuitive Geological Expression
workflows that make it easy to explore multiple avenues in depth, and to put forward
the most comprehensive range of scenarios available.
Your thinking is backed by specialist services and technical support whenever
you need it, giving you and your team the greatest confidence throughout the
interpretation workflow. You’ll find GeoTeric is on your side, and at your service.
[email protected]
Cover Story: Exploration

The Great
Australian Bight
An Emerging Global Hotspot
Scale and ambition are accurate words to describe new
oil exploration underway in the Great Australian Bight,
but they do not quite do it justice.
DAVID UPTON
©SATC/Neale Winter

Geoscience Australia

The Bight Basin


is seriously
underexplored.

Well symbol information from either ‘open file’ data from titleholders where this is publicly available as at 1 November 2013, or from other public sources.

20 GEOExPro December 2014


To get a real sense of how this underexplored region is suddenly a
hotspot, consider that six explorers —including half of the world’s
largest producers — are racing ahead with 3D seismic surveys over
more than 40,000 km2, an area the size of Switzerland. And that is
even before the first well is drilled.
The Bight Basin is an almost continent-wide feature on Australia’s
southern margin, spanning 2,000 km from Albany in Western
Australia to Port Lincoln on South Australia’s Eyre Peninsula. This
entire stretch of coastline is almost uninhabited and is best known
as the location of the Nullarbor Plain and the world’s longest stretch
of railway without a single bend.
Unlike West Africa or the Gulf of Mexico, the Australian
coastline today bears no sign of the giant river systems that once
fed the Bight delta. A recent study of zircons in drill core by the
Australian School of Petroleum suggested there might have been
two river systems – an Amazon-like river with a catchment that
spanned most of Australia in the Early Cretaceous, followed by a
system of multiple, fast flowing rivers which coincided with rapid
uplift in the last stages of rifting between Australia and Antarctica
in the Late Cretaceous.
The Ceduna sub-basin, the target of most of the new exploration
activity, is the largest of three major sub-basins and accounts for
the obvious delta feature seen on bathymetry. To the west and
east are the Eyre and Duntroon sub-basins respectively. These are
older parts of the Bight basin that were generally not buried by the
sedimentation in the Ceduna sub-basin. Earlier explorers targeted
the Duntroon sub-basin in the 1980s and early 1990s.

Lack of Exploration
BP leads the new wave of exploration and has been
uncharacteristically bullish in its public statements. Andy Holmes,
President of BP Australasia, told The Australian newspaper in
August that the Bight was most likely one of BP’s top five prospects
worldwide. “That territory could be something like the Niger Delta
or Mississippi Delta, so it’s of interest to the world, not just Australia
and BP. We don’t know yet, but it could be that big.”
The Bight has always looked like a great target for oil explorers,
who have been lured by the hope of discovering Australia’s second
great oil province (after the Bass Strait, which lies between the
State of Victoria and Tasmania). Bathymetry shows a massive delta
covering almost 130,000 km2, while 2D seismic back in the 1970s
and 1980s established more than 15 km of sediment thickness. But
only 12 wells have been drilled since exploration began in the 1970s,
the most recent more than a decade ago, when Woodside Petroleum
drilled Gnarlyknots-1 in 2003. The well failed to reach its target zone
in the deeper lobes of the delta because of fierce weather blowing
straight up from Antarctica.
The remote location of the Bight, its deep water and the risk
of violent storms for at least half of the year are major causes of
the lack of historical exploration. However, the overriding reason
was poor confidence in the presence of petroleum systems, and
particularly source rocks. In 2007, the Australian government’s
agency for promoting offshore exploration, Geoscience Australia,
planned to address the source rock risk with an ambitious seafloor
dredging survey. Using historical 2D seismic and high-resolution
swath bathymetry, the agency identified a number of locations where
submarine canyons on the edge of the continental shelf should
expose inferred source rock horizons.

GEOExPro December 2014 21


Cover Story: Exploration

Geoscience Australia
Cross-section across the Ceduna Sub-basin showing inboard Jurassic half-graben and thick pre-breakup (Blue Whale to Tiger supersequences) and post-
breakup (Hammerhead supersequence) deltaic-marine successions.

Sampling Canyons difference to how explorers perceived survey, the biggest ever conducted in
The practice of dredging the slopes of risk and prospectivity in the basin.” Australian waters. BP subsequently
seafloor canyons had been developed The results of the survey and farmed out a 30% interest in its four
and fine-tuned by Geoscience Australia Geoscience Australia’s analyses were areas to Statoil, laying off some of the
over the previous 20 years. It had already released as part of the Australian risks and the costs of its commitment to
been used successfully to generate a government’s annual acreage release a four-well deepwater drilling campaign
picture of the stratigraphy of the Bremer in June 2009 with the hope of reviving that will begin in 2016, using a purpose-
sub-basin at the western end of the Bight. interest in the Bight, which had built deepwater rig.
The Bight dredging project was led by languished now for two years without a Six months after the award of acreage
Geoscience Australia’s senior geologist, single exploration permit. The response to BP, Bight Petroleum, an unlisted
Jennie Totterdell. After many months of was a dramatic vindication of the pre- junior explorer based in Adelaide,
planning, the difficult task of sampling competitive work, with BP announcing announced it had secured two permits
the walls of submarine canyons at water in January 2011 it had won four permits at the eastern end of the Bight in the
depths in excess of 2,000m was executed with a record-breaking six-year work Duntroon sub-basin. The company had
without problems by a crew aboard programme worth $AUD1.41 billion. been working quietly to acquire permits
the government-owned RV Southern This included an 11,000 km2 3D seismic since well before the 2010 acreage
Surveyor. It was not until preliminary
analysis of the samples was completed Seismic line across Release Area W14-19 in the Eyre Sub-basin. Lacustrine source rocks in the Jurassic-
Early Cretaceous rift section are interpreted to be the source of a palaeo-oil column in Jerboa 1.
six months later that Ms Totterdell knew
they had hit the jackpot.
“In one particular canyon that
had incised to a level where we could
dredge samples of the right age rock,
we obtained a suite of about 11 samples
of mudstone that proved to be an
organic-rich, liquids-prone source rock,”
she explained. “The more analyses
we did, the better it looked. We soon
established that these Cretaceous
source rocks were right on the
Cenomanian-Turonian boundary, which
is one of the great anoxic events and a
Geoscience Australia

major global source rock. We no longer


had to hypothesise about source rocks
because there was one we could actually
put our hands on. That made a big

22 GEOExPro December 2014


release, based on the enthusiasm of a local consultant
geophysicist, Dr Peter Boult.
Fifteen months after the award to BP, the revival of
activity in the Bight had developed into an exploration
rush, supported by new acreage released by the
government. Chevron announced it had secured two areas
by committing to spend at least $AUD486 million over
the next three years, including 21,000 km 2 of 3D seismic
and four exploration wells. In the same round of acreage
approvals, Adelaide-based Santos and US independent
Murphy Oil were granted a permit based on a $AUD50
million seismic programme of 2D and 3D seismic.
hiQbe®
Bight ‘Unique’
Ms Totterdell believes the Bight is unique both in Australia Velocity cubes for
and globally, which is one of the reasons it has created
such a high level of interest. “The age and the depositional depth conversion
environment of the source rocks have no good analogue
anywhere in the world. In Australia, for example, the main
source rocks we have identified in the Bight are marine in First Geo’s hiQbe® are quality controlled
origin and of Albian and Cenomanian-Turonian age. That’s regional velocity cubes made for fast, high quality
unique for Australia. These rocks have no relationship with depth conversion from regional to prospect scale.
those in our most prolific petroleum provinces, the North hiQbe® is the fastest available solution for depth
West Shelf and the giant oil fields in the Bass Strait. At the conversion on today’s market.
eastern end of the southern margin, the offshore Gippsland
Stacking velocities are processed through First Geo
Basin between Victoria and Tasmania has Late Cretaceous to software, balancing the velocities inbetween each
Cenozoic source rocks that are entirely different to the Bight.” survey, and finally check shots for at least one well in
Looking further afield, analogues are still hard to find. each structural element on the NCS isused to calibrate
“We know early Cretaceous marine source rocks account for the cube.
a significant proportion of global oil production, but they are
First Geo is cooperating with TGS NOPEC Geophysical
found in different depositional environments to the Bight.
Company for producing hiQbe®. On the NCS hiQbe®
The analogies with the regions like the Niger Delta are only can now be delivered based on a database that also
useful when you are looking at the structural geology. We include all the new proprietary data owned by TGS
only ever used the Niger Delta and Orange River basin as NOPEC Geophysical Company, including the long
structural analogues. These are like the Bight Basin in that offset NSR, MNR and NBR.
they are large prograding deltas, with big growth faults.
Further outboard in the basin, the extensional movement
of those faults is compensated by thrust faults, which
creates a thrust belt at the edge of the basin. That’s similar
to the architecture on the Niger and many large Cenozoic
delta systems in the world. But we are not talking about a
Cenozoic system in the Bight, it’s Cretaceous — a good 50
to 100 million years older. There was a greenhouse climate
and different organic material contributed to source rocks,
whether they are coal or marine algal material. So you can’t
compare them directly to something like the source rocks
in the Niger Delta or the Gulf of Mexico or the Mackenzie Currently available for:
• Barents Sea, utm zone 34 • Bight Basin, Australia
Delta. The petroleum systems in the Bight are unique.” • Mid-Norway, utm zone 32 • Other areas on request
Ms Totterdell said that another reason for the level of • North Sea, utm zone 31
interest in the Bight was the likelihood of a wide variety of
source rocks. “In the Ceduna sub-basin you have 15 km or
more of sediment that developed over 100 million years. You
have everything from lacustrine source rocks in the Eyre
sub-basin to the marine Albian and Cenomanian-Turonian
source rocks in the Ceduna sub-basin. The big deltas that
prograde out include coaly facies and associated mud rocks,
which have source potential as well. It’s just such a wide [email protected] | +47 51 81 23 50 | www.first-geo.com
variety of potential petroleum systems.”

GEOExPro December 2014 23


Cover Story: Exploration

The paucity of drilling, especially approval for a 3D survey, almost three risky path of a joint venture with one
in the Ceduna sub-basin, means that years after it began consultation. The of the existing players. A new area
while explorers are confident about company is now seeking a joint venture (W14-19) was released in May for work
source rocks, much more information partner to help fund its $AUD67 million programme bidding, covering more
remains to be gathered to understand the work programme, and has no shortage than 30,000 km2 of the Eyre sub-basin.
Bight’s petroleum systems. “There are of interested parties. More than 20 Ms Totterdell said the area is centred
still questions about the distribution of explorers have signed confidentiality on a Jurassic extensional depocentre
reservoir rocks and seals, and the nature agreements to evaluate a farm-in, and is a different play to the other
of the important facies for the petroleum including some of the world’s major permits in the Bight. However, there
systems. Many of these questions will producers who are not already in the is evidence of a working petroleum
not be answered until wells are drilled, central part of the region. system from Jerboa-1, the only well
although the level of knowledge is Bight Petroleum’s largest prospect, drilled in the permit. “Fluid inclusion
growing exponentially with the amount Price, is a four-way dip closure covering studies by the CSIRO and Geoscience
of 3D seismic being acquired. The amount more than 130 km2. Managing director, Australia did show that Jerboa-1 had
of data that is available now compared to Matthew Philipchuk, said Price could drilled a breached accumulation, so we
when we did our study is just stunning. hold more than 5 Bb of recoverable oil. know that petroleum was generated and
And, unlike old campaigns where they “One of the advantages we have compared migrated into a trap that subsequently
were drilling poorly-imaged structures, to where the majors are exploring in the failed. We can also find these Jurassic
today’s 3D seismic is so much more central Bight Basin is we do have shallow depocentres beneath the Ceduna sub-
sophisticated. Explorers can use a range of water targets. We also believe we have basin, but they are more deeply buried
amazing geophysical techniques on that the advantage of an overlying wedge of there and in many cases the source
data to get a handle on the lithologies and Tertiary sediments that is missing in rocks are likely to be overmature. In the
understand the nature of reservoir and the central Bight. We have some great Eyre sub-basin, the chances of success
seal rocks,” Ms Totterdell said. evidence the source kitchen in our for the Jurassic play will be better.”
permits has been turned back on and that In the context of the renewed
Environmental Issues we are exploring a current-day petroleum exploration activity in the Bight Basin,
Exploration in the pristine waters of the system. That means we have fresh the Australian government might
Bight has not been without controversy, hydrocarbon charge and greater potential consider the release of new acreage in
with environmental groups mounting for oil accumulations, as well as sweeter coming years, but the least complex
noisy anti-seismic and anti-drilling oil than in the central Bight.” areas are certainly already taken. For
campaigns. BP was granted its acreage most industry players, it might now be a
in the immediate aftermath of the Opportunities case of wait and see what the first wells
Deepwater Horizon accident in the Gulf For explorers wanting to join the action in 2016 bring. But if BP’s confidence is
of Mexico and had higher-than-normal in the Bight, there are still a number validated, the entry terms are likely to
conditions placed on its permits. Activists of opportunities aside from the least be much more expensive.
were still not satisfied, but
the Australian government Hundreds of kilometres of impenetrable cliffs help to make the Great Australian Bight a remote area for oil explorers.
and its new offshore drilling
regulator, the National
Offshore Petroleum
Safety and Environmental
Management Authority, have
been meticulous in obtaining
all possible safeguards and
clearing a path for the first
wells in 2016.
Ironically, the smallest
player in the region, Bight
Petroleum, has been hardest
hit by environmental
opposition. The company’s
acreage is located about
100 km from inhabited
coastline, including the
©SATC/Neale Winter

foodie and tourist haven


of Kangaroo Island. In
June, the company finally
received environmental

24 GEOExPro December 2014


Version 2015 coming soon...

www.mve.com
GEO Profile

An Extraordinary, Unknown Career


Surviving the Great Alaska Earthquake was a historical achievement for American
geologist Ruth A.M. Schmidt. Other feats were revealed only after her death.
HEATHER SAUCIER
Friends and colleagues have no trouble finding feisty adjectives preliminary maps in a mere three weeks.
to describe the late Ruth A.M. Schmidt, one of the United “No one likes to be told his house and business are on
States’ early female geologists. After all, it was Schmidt’s frank landslide areas, but if they are, how much better is it to know
and no-nonsense attitude that allowed her to step assuredly it?” Schmidt wrote, her resolute intentions permeating every
into a heavily male-dominated field in the 1930s and chart a word. “Geologists have done their part as citizens to see that
historical career, much of which remained unknown until her everyone has been made aware of the hazards of building on
death on 29 March this year at 97 years old. landslides and similar weakened and unstable areas. Let us
At a celebration of life service in her honour last spring, hope they can continue to guide the city and to help see that
many were surprised to learn how much the Brooklyn native disasters do not recur.”
cherished her privacy.
Schmidt was publicly noted for leading an inter-agency team Beneath the Surface
of dozens of geologists and other earth scientists to remap the As revealed after her death, Schmidt’s career proved to be as
city of Anchorage at near record speed after the 1964 Great riveting as the quake itself. As friends and family began packing
Alaska Earthquake, which she survived while working on a up her modest Anchorage home, which doubled as a library and
frozen Portage Lake. To date, it is the most powerful earthquake laboratory for countless slides of ostracods and foraminifera,
to strike North America, with a magnitude of 9.2. information emerged chronicling a career fit for history books.
In an article titled Geology in a Hurry, published in an “I was overwhelmed by what I didn’t know about her,” said
October 1964 issue of the American Geological Institute’s Sally Gibert, a land planner, geographer and longtime friend of
Geotimes, Schmidt described the controversial effort to Schmidt. Gibert served as Schmidt’s power of attorney when in
identify geologic hazards in Anchorage for the purpose of 2005 signs of dementia began setting in. “She didn’t hide things,
mitigating future risks to development and the production of but she didn’t feel the need to talk about her accomplishments.”

Ruth Schmidt was working for the USGS in Alaska when the 1964 earthquake struck. She was instrumental
in helping the city of Anchorage document the extensive damages in an effort to mitigate future risks.
Dolores Roguskza

26 GEOExPro December 2014


Gibert was charged with the

Courtesy of Sally Gibert


responsibility of distributing
donations to more than 20 charities,
mostly Alaska-based, and seeing
that Schmidt’s coveted Alaskan art
collection – including paintings by
renowned geologist Marvin Mangus
– was given to the Anchorage
Museum of History and Art. She
systematically emptied Schmidt’s
home – a process that included using
a professional archivist from the
University of Alaska, Anchorage.
Documents unexpectedly surfaced
that placed Schmidt in the heart of
World War II in 1943. She was one
of few female geologists employed by
the United States Geological Survey
(USGS) to participate in a top secret
Military Geology Unit in Washington,
D.C. Schmidt mapped areas suitable
for digging foxholes and building observation posts and the first time, geologists became an integral part of the war
pillboxes for the U.S. Army Corps of Engineers, in addition to effort, heavily relied upon to churn out maps as if part of an
finding the safest and most protected trails and terrain that assembly line. “Geologic and topographical maps gave up the
could support bridges, and streams shallow enough to be forded. innermost secrets of enemy terrain,” stated the press release.
The job spring-boarded Schmidt’s geological career during The maps “resulted in the saving of thousands of American
a time when many women were openly discouraged from and Allied troops.”
the field, according to Anne Pasch, who taught geology at Schmidt’s employment with the USGS in Washington
Anchorage Community College with Schmidt and was told by continued after the war. She worked for the Palaeontology and
a dean at the University of Wisconsin in 1950s that he would Stratigraphy Branch, the Organized Lexicon Project, the Palaeo­
not sign her diploma if she majored in geology. “Geology tectonic Map Project, and the Mineral Classification Branch.
was one of the last scientific disciplines that was cracked by Her professional strides made an impression on Hank
women,” Pasch said. Schmoll, a former co-worker of Schmidt who recently
A micropalaeontologist by profession with master’s and unearthed a USGS pamphlet circa 1947 that included a section
doctorate degrees in geology from Columbia University, titled ‘Women in Geology’. It outlined their limited need in the
Schmidt approached her work with a calculating, detailed eye. field except during times of war and in laboratories. “All the
Registered as an X-Ray technician during her studies, Schmidt good stuff was for men only,” Schmoll said.
applied her knowledge of radiology to palaeontology – her Included in the brochure was a staged photo of five women
work no doubt catching the eye of the Military Geology Unit. (see photo, above), one looking down a stereoscope, and
others with maps in front of them. To the best of Schmoll’s
Room for a Woman knowledge, only one stayed the course: “That was a young
Taking advantage of the shortage of scientists during the Ruth Schmidt, who was looking over the scene with a slightly
war, Schmidt left behind teaching assistant jobs at Columbia critical expression on her face.”
University and New York University to participate in an
unprecedented effort. History: Part II
“Prior to the establishment of the Unit, geologists the In the midst of her career in Washington, Schmidt
world over were studying rocks, mountains, plains and unwittingly became part of history again – as the tables
streams, without realising their military significance,” stated a unexpectedly turned on her during the dark days of
7 October 1945 press release issued by the U.S. Department of McCarthyism. Having joined the liberal, D.C.-based
the Interior. “It never occurred to them that their discoveries, Washington Cooperative Bookshop, prompted by her interest
important as some were to industry, might in any way be a in racial justice and a discount on books, Schmidt found
primary factor in winning a war.” herself the subject of investigation by the U.S. Department of
One can only imagine the mental whiplash of moving to the Interior’s House Committee on Un-American Activities,
Washington to join a team of draftsmen who were ordered to as the bookshop was deemed a ‘communist front’ by the U.S.
“Don’t Think – Act.” government, and its board members ‘subversive’.
“The Military Geology Unit went into high gear and Not a communist and refusing to relinquish her innocuous,
stayed there,” the press release stated. “They became the lifelong membership for which she paid $5, Schmidt remained
hardest and fastest working scientific group in history.” For a member and even served briefly on the bookshop’s executive

GEOExPro December 2014 27


GEO Profile

board in 1947. She embraced the concepts of freedom and

Courtesy of Sally Gibert


equality, which were promulgated by the bookshop through
its advertisements, literature and guest speakers.
Two separate hearings, which took place in 1950 and 1954,
forced Schmidt to hire attorneys, request 17 affidavits attesting
to her loyalty toward her country from former professors,
colleagues and friends, and subject herself to intense questioning
to keep her job with the USGS. Each word of the hearing was
recorded on carbon paper, which she kept filed in her home.
“She is extremely honest, frank and straightforward; a
person of highest integrity in her dealings with other people,
in her scientific thinking, and in her every-day living,” wrote
a Houston-based friend in 1950 on Schmidt’s behalf. “At no
time has she ever expressed sentiments of disloyalty to the
United States Government.”
In the end, Schmidt was cleared.

Alaska-bound
In 1956, the USGS chose Schmidt to establish an Alaska
district in Anchorage. She accepted the assignment with the
same unshakable self-confidence she had during the hearings
with the federal government.
At an Alaskan Science Conference in 1957, Schmoll
was introduced to Schmidt for the first time. “I have never
forgotten Ruth’s response: ‘Hello. Now here’s what I want you
to do. These are the pages for the program book. They need to One of Ruth Schmidt’s greatest delights was mentoring young geologists.
be stapled. Do it this way; don’t do it that way. And when you
are done bring them to me, and I’ll tell you what to do next,’” 1974. Her years of analysis of foraminifera helped scientists to
Schmoll recalled. “Maybe that was a bit on the brusque side conclude that the Bootlegger Cove Clay, which underlies parts
but… we’ve been friends ever since.” of coastal Anchorage and tends to liquefy during earthquakes –
Once the Alaskan office was operational, Schmidt began is thousands of years younger than once thought.
what many say was her ultimate passion: teaching. As the first
female geology professor and head of the Geology Department A Softer Side
at Anchorage Community College in 1957, Schmidt’s warm Even as dementia took an increasingly strong hold over her
side appeared more regularly. She taught from the heart, mind, the importance of education never left her thoughts.
especially encouraging young women to study the sciences. Forgetting that she had helped fund college for Gibert’s
In her later years, she would establish several endowed two daughters, she often asked about their plans to attend a
scholarships to support those wanting to study science. university and about their career goals.
“She had a very strong interest in teaching and helping “In hindsight, I realise she mentored me as well,” Gibert
students. It was the joy of her life,” Pasch recalled. “Geology said. “Her direct, cut-to-the-chase style was amazingly
has a problem because the general public doesn’t understand effective, and so outside the norm for women – especially
it. She was able to cross that line between professional lingo in decades past. She commanded respect and was always
and the vernacular.” respectful to others. I started out with a ‘meek streak’ and
In an August 1983 letter to the director of the science she showed me you don’t have to play ‘meek’ as a woman to
department, a female student wrote, “I can in all honesty say be accepted. She gave me courage and confidence without my
there is hardly a day that goes by that I do not look at the world ever knowing it was happening.”
differently and with more appreciation and understanding, Schmidt may have had a thick outer shell, but – as any
armed with the knowledge acquired from Dr. Schmidt.” geologist might put it – it was highly porous. Many were drawn
When the community college, which initially shared a to her generous heart, her goodwill and her determination to do
building with a local high school, moved into its own campus in things right and well. Nearly 50 friends and former colleagues
1970, Schmidt took charge of building a laboratory that would from Alaska and the ‘Lower 48’ attended her celebration of life
be used for more than 25 years. She worked as a consulting last May. Representatives from nearly ten charities, serving
geologist and a professor, retiring from the university in 1984, a range of causes including science education, conservation,
but she continued professional consulting until about 2000, the arts and social justice, attended the service to thank her
when she was 84. During this time, she helped Anchorage posthumously for her unexpected and generous bequests.
recover from the ’64 quake so it could rebuild its infrastructure Feisty adjectives aside, Schmidt’s legacy was a love for
with better knowledge about the lay of the land, and she served geology, the Earth and enabling the study of both, most
as an environmental officer on the Trans-Alaska oil pipeline in especially for other women who love a good challenge.

28 GEOExPro December 2014


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GEO Tourism

Kutch
The The state of Gujarat has an area of 196,204 km2 (sixth largest state
in India) and a population of over 60 million. Although not as
popular a tourist destination as Agra and Rajasthan, foreign visitors
will find a great deal of history, culture and nature in Gujarat
to enjoy. Mahatma Gandhi (1869-1948), India’s independence

Basin
movement leader, was from the state.
With a coastline of 1,600 km dotted by 41 ports, Gujarat faces
the Arabian Sea and has enjoyed a long history of marine commerce
and navigation. The Periplus of the Erythraean Sea, written in
the first century by an unknown Greek sailor, mentions Gujarat.
Geographically, Gujarat can be divided into mainland Gujarat

of
in the east, with the Kutch Peninsula to the north-west, and the

Western
Saurashtra or Kathiawar Peninsula to the west. The Gulf of Kutch
lies between the two peninsulas.

The Kutch Peninsula

India
Kutch (often spelt Kachchh) refers to both the Kutch Peninsula
(which occupies about one-fourth of Gujarat State) and the Kutch
District, which, with an area of 45,652 km2, is the largest district in
all India, although only two million people live in it.
The Sanskrit word ‘kachch’ means a land which is intermittently
The fault blocks of the Kutch Basin in wet and dry, referring to the normally dry and hot land of Kutch
western India offer to the visitor a unique being drenched by summer-time monsoon rains. Average annual
precipitation is about 380 mm, all of which comes from the south-
opportunity to observe the Jurassic- west monsoon rains, peaking in July. There are 97 streams and
Cretaceous-Paleogene sediments rarely rivers in Kutch, which eventually flow into the Arabian Sea. Dozens
outcropping anywhere else on the of small and large dams capture the monsoon runoff. The average
Western Indian continental margin. A visit temperature is around 30°C (90s°F) through most of the year except
for the months of December to February when the temperatures are
to Kutch also gives an opportunity to view
in the high 20s°C (80s°F).
and enjoy the rich cultural traditions and Salt, cement, lignite and bauxite are the main mineral industries
handicrafts of western India. in Kutch. The area is famous for its textiles; fabrics, embroideries
and cotton rugs are the major souvenirs that visitors purchase.
RASOUL SORKHABI, Ph.D.
A local farmer in Kutch with his camel (‘man’s best friend in the desert’). Kutch, like most parts of
Gujarat, is an agricultural area despite its low precipitation and hot climate. There are 969 villages in
Kutch. The people speak several languages including Hindi and Urdu,
Rasoul Sorkhabi

the official state languages of Gujarati and Sindhi, as well as


(more importantly) the local Kutchi language,
which is closely related to Sindhi.

30 GEOExPro December 2014


Rasoul Sorkhabi
Geological and structural map of Kutch also showing the onshore and offshore wells drilled for oil
exploration. The Kutch Basin (38,000 km2) is an east-west oriented rift basin that extends offshore
(13,000 km2) to the 200m isobath, where the basin still remains little explored. (Map by Rasoul
Sorkhabi, based on various sources including S.K. Biswas, Current Science, 25 May 2005.)
Inset: The state of Gujarat in western India: the Peninsula of Kutch is highlighted in brown and
green. Gujarat’s capital is Gandhi Nagar although its largest city is Ahmadabad.

Kutch came to political prominence


in the late 13th century as the Jadeja ‘Perhaps the most striking feature of the country is its sterility, naked rocky
Rajputs founded a kingdom that lasted hills and sandy plains presenting in this respect a strong contrast to the more
until India’s independence in 1947, fertile portions of India; and yet parts of it are far from being unpicturesque,
although it was a British protectorate thought its barrenness is heightened by the scarcity of trees and general absence
called the Princely State of Cutch from of anything that can be called jungle.’
1815 to 1947. The city of Bhuj is the A. B. Wynne, Memoirs on the Geology of Kutch (1872)
major municipality in Kutch. Founded
in the early 16th century by a local Peninsula we find a diverse landscape attracted the attention of several British
ruler Rao Hamirji, it has retained its of highlands or hills (uplifted fault geologists during the 19th century
capital position in Kutch to this day. The blocks) and lowlands encompassing as part of their mapping work for the
city has a population of about 150,000 salt flats (Rann) to the north and east, Geological Survey of India based in
people and is home to Krantiguru grasslands (Banni) in the centre, and Calcutta. Among these works, the
Shyamji Krishna Verma Kachchh coastal plains to the south. The mud most comprehensive and seminal
University (founded in 2003 and named and salt flats include the Great Rann of contribution was the 294-page Memoirs
after an Indian liberation activist), Kutch in the north and the Little Rann on the Geology of Kutch written by A.
which has a geology department. The of Kutch to the east of the peninsula, B. Wynne in 1872 (reprinted by the
oldest school in the town is Alfred High which are part of the much larger Geological Survey of India in 2003).
School, founded in 1870 and named Thar Desert of north-west India and The colour geological map compiled by
after Queen Victoria’s second son, south-east Pakistan. These areas were Wynne is still valuable.
Prince Alfred. submerged during marine incursions Kutch represents a fossil rift basin
in the geological past but turned to (aulacogen) perpendicular to the strike
Geology of Kutch desert as the sea transgressed and left of the West Indian margin. The oldest
The Kutch Peninsula is essentially an behind Quaternary clay and evaporate sediments in Kutch are late Triassic
east-west oriented rift basin bounded sediments. (Rhaetian) sands shed onto Precambrian
by the Saurashtra Horst (High) to Geological outcrops found in the basement rocks (these sediments
the south and the Indus Plain to the highlands are usually bounded by were penetrated in the Banni-2 and
north (in Pakistan). Within the Kutch major normal faults. These outcrops Nirona-1 wells). The rifting was part

GEOExPro December 2014 31


GEO Tourism

Rasoul Sorkhabi
The Middle (silty sandstone) and Upper (sandstone) members of the Jhuran Formation are fluvial-deltaic sediments of Late Jurassic age, exposed here on
the bank of Khari Nadi (‘River’) in Kutch, about 5 km north of Bhuj.

of an initial fragmentation within fluvial-deltaic sediments of the Sandhan but also provide reservoir-scale views
Gondwana, a southern supercontinent (Kankawati) Formation as well as of corresponding subsurface rocks
which encompassed the present tectonic the Quaternary alluvial, coastal and currently offshore the Kutch Peninsula.
plates of India, Africa, Antarctica, evaporate sediments cap the Kutch basin. Kutch, therefore, has great potential
Australia and South America. As rifting Kutch is a tectonically active region. for designating national geoparks for
progressed and Kutch became part of the The most recent and tragic earthquake geologists, students and ecotourists.
passive continental margin of western in the region was the Bhuj earthquake This could contribute to Kutch’s tourism
India, shallow marine sediments were (magnitude 7.6) of 26 January 2001 that industry and local economy as well as
deposited during Early-Middle Jurassic killed over 20,000 people. Previous help preserve the precious geological
times, as recorded by the limestone and earthquakes on record include the outcrops which may be easily destroyed
shale sediments of the Early Jurassic ‘Cutch’ earthquake of 16 June 1819 by mining and other human activities.
Jhurio and Middle Jurassic Jumara (magnitude estimated to be 7.8) and This task, however, requires public
Formations. These sediments are Anjar earthquake of 21 July 1956 (with a education, government investment,
overlain by the deltaic sand and mud magnitude of 6.1). better infrastructure, publicity as well
sediments of the Jhuran Formation as safety and security measures (both
(Late Jurassic) and fluvial sand-mud Geotourism and the Oil Industry because of its arid conditions and being
sediments of the Early Cretaceous Bhuji Kutch indeed is a land of unique geologic a border state with Pakistan).
Formation. Mesozoic sediments have a outcrops dating back to 250 million For travellers (whether foreign or
total thickness of over 3 km. years ago. The Jurassic-Cretaceous Indian) intending to see the geological
Toward the end of the Cretaceous, rocks not only contain important features of Kutch, it is necessary to
at 66 Ma, continental flood basalts, the fossils including those of dinosaurs prepare well in advance and hire trusty
Deccan Traps, erupted and covered
The city of Bhuj is situated on Cretaceous sedimentary rocks. The Early Cretaceous Bhuji Formation,
large tracts of central and western India. mainly sandstone with some shale and conglomerate, is a typical sight in the city’s road cuts.
The thickness of these volcanic rocks in Rasoul Sorkhabi

Kutch is not significant although there


are outcrops of igneous intrusions which
were possibly feeders to the Deccan
Traps. The uplift and erosion at the
beginning of the Cenozoic marks a major
event in Kutch. The Paleocene rocks
include laterites, bauxite and tuffaceous
sediments (Madh Series). In the Early-
Middle Eocene, marine transgression
resulted in sedimentation of limestone,
shale and marl (Berwal Series).
After a Late Eocene unconformity,
shallow marine sediments (limestone,
shale and siltstone) of the Bermoti
(Oligocene) and Khari Series (Miocene)
were deposited. Finally, Pliocene

32 GEOExPro December 2014


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Acknowledgement:
Rasoul Sorkhabi

This article is based on a field trip


to Kutch in December 2009. The
author is grateful to Dr S.K. Biswas
for leading the field trip and for
discussions on the geology of Kutch.

Rasoul Sorkhabi
Gujarat is known for its remains of the Indus Valley Civilisation that flourished 3300–1300 BC. Two
such archaeological sites in Gujarat are Lothal in east Saurashtra and Dholavira in north Kutch. The
photo here shows a water reservoir at Dholavira. The site was discovered by Shri Jagatpati Joshi in Dr Sanjib Kumar Biswas has pioneered
1967–68 and has been under excavation since 1989. Named after the nearby village of Dholavira, the geology of the Kutch basin. Born in
the site covers an area of over 250 acres (1 km2). If you visit, take a reputable guided tour – make sure Kolkata (Calcutta), he studied geology at
to see the museum as well. the University of Calcutta from 1949 to
1956 and obtained his Ph.D. in geology in
guides, including a knowledgeable Further Reading: 1979 from the same university. For nearly
geologist who knows the landscape and Biswas, K.S. and Deshpande, S.V. (1970) Geological four decades, Dr Biswas worked as a
and Tectonic Map of Kutch (scale: 1 inch= 4 miles), geologist for ONGC, from 1986 to 1993 as
geology of Kutch. ONGC Bulletin, v. 7, no. 2, pp. 115-123. director of the company’s KDM Institute
Although several onshore and Biswas, K.S. (1982) “Rift basins in western margin of Petroleum Exploration in Dehradun.
offshore wells in Kutch have been of India with special reference to hydrocarbon Biswas has published extensively on
prospects,” AAPG Bulletin, v. 66, pp. 1497-1513. the geology of Kutch since 1965. He has
drilled by India’s Oil and Natural Gas
Biswas, K.S. (2005) “A review of structure and been awarded India’s National Mineral
Corporation (ONGC) in the past, the tectonics of Kutch basin, western India, with Award (Ministry of Mines, 1972), L. Rama
efforts have not been commercially special reference to earthquakes,” Current Science, Rao Award (Geological Society of India,
v. 88, pp. 1592-1600.
successful yet. India’s Directorate 1993) and Life Time Achievement Award
Mehr, S.S. (1995) Geology of Gujarat, Geological (Association of Petroleum Geologists,
General of Hydrocarbons (DGH) has Society of India, Bangalore. India, 2011). He currently serves as a
designated Kutch as a Category II basin, Swarna, K., Biswas, S.K., and Harinarayana, senior advisor for ONGC in Mumbai.
meaning that the basin is known for T. (2013) “Development of geotourism in Kutch
region, Gujarat, India: An innovative approach,”
accumulation of oil or gas but there is Journal of Environmental Protection, v. 4, p. 1360- Additional references available online at
no commercial production yet. 1372 (Open access journal). www.geoexpro.com

Kala Dongar (Black Hill), at 485m above sea level, is the highest point in Kutch and provides a panoramic view of the
mud and salt flats of the Great Rann of Kutch to the north. The author is seen in this photo.

Rasoul Sorkhabi

34 GEOExPro December 2014


Global Plate
Box 1 – The nature of the 85E Ridge and its impact on plate tectonic history
The 85E Ridge offshore eastern India manifests as a gravity low in Getech’s Trident satellite gravity data, although very little is
known for certain about its crustal nature. If it is a continental fragment, which is one hypothesis, then the prospective area for

Tectonic Modelling
hydrocarbons is much expanded. Between the ridge and India, however, there is little evidence in gravity, magnetic or seismic data
of a relict spreading centre, fracture zones are not of an orientation consistent with this movement, and isochron data (Ramana et
al., 2001) show a younging to the south-east over any possible location for a spreading ridge. These isochrons are shown on the
map below: orange is Chron M11 (136.29 Ma), green – Chron M10N, yellow – Chron M10, and red is Chron M8 (133.05 Ma).
A major challenge for the plate model that honours this data and a continental 85E Ridge is to provide enough space for the
Dirk Cuthbertson from Getech shares some insights production of oceanic crust in the southern Bay of Bengal for the period 136–127 Ma whilst keeping other boundary conditions
unchanged. To do this the Indian Plate must move 1,300 km northward relative to Madagascar during this time. Solutions for
from their global plate tectonic model, part of Globe, relatively small scale regional tectonic problems like this must be incorporated into the complete plate tectonic circuit in order to Box 2 – Opening history of the South China Sea
fully assess their impact. Slab-pull or extrusion tectonics? What is the formative mechanism and timing of the opening of
Getech’s flagship new ventures platform. the South China Sea? Extrusion models, such as that of Leloup (1995), predict that in the south-
western corner of the South China Sea, crustal north-east to south-west stretching can be no
less than 250 km (more if the extension required to produce accommodation space in the
Song Hong Basin is included). Getech’s 2D gravity and magnetic modelling in this region (see
profile A-A’, below) shows that extension can be no more than 180 km. If a slab-pull mechanism
(associated with subduction of a proto-South China Sea plate under present-day Borneo) is
modelled, then this limit of stretching is not exceeded. An earlier opening – and thus rifting
– history is implied, however, and this affects our understanding of the petroleum systems of
this region, particularly the maturation history of any source rocks and the relative timing of
changes to hinterland drainage and the impact on reservoir distribution.
A A’
=Observed,
0 =Calculated

Magnetics (nT)
-50

-100

30 =Observed,
20 =Calculated

Gravity (mGal)
10
0
-10
-20
Unstretched crust limit COB
0

10

Depth (km)
20
180 km extension

30
0 300 600 900
VE =8.76 Distance (km)

For line of section see map, Box 2 .

36 GEOExPro December 2014 GEOExPro December 2014 38


Legend
Structures
Active structures
Inactive structures
Offshore: Ocean crustal ages
Browns to yellows – Cenozoic
Greens – Cretaceous
Blues – Jurassic
Onshore: Crustal architecture
Colours differentiate various
categories of continental and
39 GEOExPro December 2014
transitional crust.
Constrained By Data sedimentary basins can reveal new insights into their
Well and seismic data can be very sparse in frontier regions; prospectivity. If your play models rely on, say, a granitic source
however Getech’s extensive global gravity and magnetic database, for reservoir sediments during a particular stratigraphic stage,
the largest commercially available dataset of its kind, covers almost then our plate model can tell you if that is likely.
all the sedimentary basins of the world. It is a superb resource for Secondly, rotating your data from their Present Day locations
mapping the structural framework of the world, which helps us to back in time can help you understand the palaeogeographic
better constrain our global plate tectonic model. context of your exploration acreage. With Globe, Getech’s
Our Trident satellite gravity data, derived from stacking flagship new ventures platform, we take this a little further.
three independent solutions of re-processed altimeter data Our global plate model is the foundation for a series of 59
from the ERS-1 and Geosat satellites, covers all of the ice-free palaeogeographic maps and palaeolandscape models, one for
continental shelves of the world with a minimum wavelength each stratigraphic stage back to the Permian, one of which
resolution of around 10 km. We are currently halfway through is shown below. These are used to generate palaeoclimatic,
a three-year project to incorporate additional altimeter data palaeoceanographic and palaeotidal models for each timeslice,
from the CryoSat-2, Jason-1 and HY-2A satellites, which will each revealing new insights into the distribution, quality and
generate a more accurate, reliable and coherent solution, preservation of the various elements of any petroleum system.
particularly near coastlines.
The continental regions of the world are covered by both Conclusions
gravity and magnetic data from Getech’s many continental- If well constrained by data, a global tectonic plate model can be
scale compilations, supplemented for many countries by built which takes account of small scale tectonic issues whilst
higher resolution data including, for example, Tanzania, ensuring that the integrity of the entire plate circuit is not
Mexico, Mongolia, the onshore US and eastern Europe. These compromised. This plate model then becomes a fundamental
datasets provide both detail at the block scale and insights exploration tool, enabling a better understanding of hydrocarbon
into the regional context. The emergence of international prospectivity by revealing the regional geological context for any
unconventional hydrocarbon plays has also expanded the element of the petroleum systems of a sedimentary basin.
scope for using these data.
Published literature is a great resource for ideas, data and With thanks to:
maps. Comparing published maps against our gravity and Many of my colleagues have contributed to the many years of
magnetic interpretations can often expose complexities and effort which I have briefly summarised. Particular thanks go to
what appear to be relatively small inaccuracies, both of which Simon Campbell, Ben Franklin, Nicky Henshaw, Catherine Hill,
have a big impact on our plate tectonic models. Paul Markwick, Sheona Masterton, Stanislaw Mazur, David
We also incorporate other data to help constrain our Sagi, Matthew Stewart, Peter Webb and Kerri Wilson.
plate modelling, including: published seismic and geological References:
cross-sections, magnetic picks, well and outcrop data, digital
Leloup, P.H., Lacassin, R., Tapponnier, P., Scharer, U., Dalai,
elevation models, Landsat imagery, geological maps and Z., Xiaohan, L., Shaocheng, J., and Trinh, P.T., 1995, The Ailao
apatite fission track data. Shan-Red River shear zone (Yunnan, China),
Tertiary transform boundary of SE China: Tectonophysics, v.
Uses of Plate Models 251, p. 3-84.
How do plate tectonic models help develop an exploration Ramana, M. V., Ramprasad, T., Desa, M. and Subrahmanyam,
programme? V. 2000. Integrated geophysical studies over the 85°E ridge –
Firstly, a better understanding of the relative and temporal evaluation and interpretation. Visakha Science Journal, v. 4,
juxtaposition of hinterland elements to play elements within no. 1, p. 45-56.

40 GEOExPro December 2014


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Technology Explained

Digital archiving of core information


affords the oil and gas industry an
opportunity for rapid evaluation of core.
CHRISTOPHER M. PRINCE PH.D
PetroArc International
The keys to the efficacy and value of cores in the oil and gas
industry are accessibility and facility. Core description has
always been done in lay-out rooms – and those lay-out rooms
have always been travel destinations, no matter if they are
halfway across town or halfway around the world. Once there, a
geologist or two can evaluate the core using the tools they have
always used: a 10x hand lens, a sand card, a ruler, protractor, a
bottle of dilute hydrochloric acid, and a pad of paper. In most
cases they will be the only people to examine the core and the
only ones with the opportunity to do so. This limits the timely
interchange of ideas vital within today’s oil and gas industry.
Standard 300 dpi ‘high-resolution’ imagery (top) compared to the
1,360 dpi resolution available using the TenEx imagery system (bottom).
Advantages of the Digital Archive
A digital archive of core imagery enables everyone to read information, making it available wherever in the world it is
from the same page no matter if they are in Williston, Denver, needed. Using its TenEx imagery system, core is digitised
Luanda or London. When that core is imaged at the resolution at the resolution of a 10x hand lens (or higher). The thin
of a 10x hand lens (or higher) it affords the opportunity for section ‘MicroPics’ can be imaged up to 1,000x magnification,
more scientists from all the interested working groups to the equivalent of a 100x objective lens. The company can
evaluate it simultaneously. As more information arrives in the also provide imagery of core plugs and cuttings, as well as
form of routine core analysis, well logs, thin sections, SCAL biological samples for the medical profession.
or written evaluations, a digital core archive must be able to This is not just simply taking digital photos of cores laid out
accommodate the new information and make that accessible on a bench! First, the cores are sanded and polished to a finish
as well. This allows all of the interested parties to examine the where all saw marks, roughness, dust and other obscuring
core in the context of petrophysical response, and to examine matter are removed, allowing easy viewing of grains, fossils
laboratory results for their repeatability. More importantly, it and porosity with the naked eye. This can take many hours or
permits the corporation or public organisation to centralise even weeks, depending on the composition of the core. Then
the data in order to forestall the inevitable ‘data hunt’ that a PetroArc digital imaging specialist scans the core, creating
accompanies any re-evaluation of the well. high resolution, depth-registered digital images which provide
Finally, there is facility. A digital core archive must enable an easy-to-store visual record of the core that will not degrade
the user to interact with the imagery to extract useful over time and are easily duplicated and shared.
information. Most core is imaged, but the imagery is static; it
is good for looking, but not good for doing. A high-resolution Virtual Microscope
digital archiving system must contain tools for interacting with But this is only half the story. Most imagery is static; one can
the imagery. These include methods for determining grain size, look at it, but that is all. To counter this, PetroArc International
apparent dip, net pay, mineralic composition, colour and optical has developed virtual microscope technology which can
porosity, as well as tools for comparing the core with the logs. interact with the imagery to perform analytical tasks, an
PetroArc International, based in Houston, provides example of which is a virtual petrographic microscope for
high-resolution imagery for the oil and gas business and thin sections. With this, the user can navigate throughout the
believes it has found new ways to refine and centralise digital slide, cross the polarisers, perform grain size, aspect ratio and

42 GEOExPro December 2014


B

A sandstone imaged at 400X (40X


objective lens).
A: The ‘macro view’ of the whole
slide. The red box shows the current
FOV (field of view), which is also
shown under (B) plane-polarised
light; (C) cross-polarised light; and
(D) filtered to determine ‘optical
porosity’.

mineralogy point counts, and review them at any time.


The company has also designed software (CORSystem) which
allows the user to examine the core, logs, lab reports and data,
as well as analytical reports at the same time. At its centre is a
virtual core microscope with tools to examine the core, measure
apparent dip, as well as record the presence of index fossils,
formation boundaries and a variety of other characteristics.
CORSystem also contains innovative new tools for estimating
grain size and cm-scale heterogeneity. All of the information is
available to all the users, no matter where they are in the world.

It is also
possible to
perform
grain size
analysis on
the computer
screen.

GEOExPro December 2014 43


Technology Explained

Department of Geology)
Courtesy of UND

Simultaneously looking at the logs and other core data,


as well as the core itself.

A high resolution digital core archive must be designed


in such a way that the data is easily accessible, even data that
arrives months or years after the core is imaged. It must
also allow the users to perform routine analytical tasks from
their desktops using the tools that are commonly used for
evaluation. Such an archive has the potential to revolutionise
the manner in which core is handled and evaluated, but only
if the information is easily accessible and the access system
has the facility for the users to get their work done.

First University Core Library


The Wilson M. Laird Core Library at the University
of North Dakota is an important resource for both
students and the O&G industry in the state, but to
access it researchers previously had to physically come
to the library to study the cores. Recently, however,
PetroArc International has begun digitising these cores Using the
and associated thin sections, plugs and drill cuttings texture wand,
a tool unique
in order to create the world’s first high-resolution
to PetroArc,
virtual core library. To date it has digitised over 2,000m a grain size
of core and made it available for academic use with estimate can be
CORSystem 2.2, thanks to grants from Continental completed and
logged in a few
Petroleum and the State of North Dakota.
seconds.
With the recent resurgence and rapid expansion of
the oil industry in the western part of North Dakota,
students and researchers, especially those studying in the
Department of Petroleum Engineering at the university,
will be able to use the software to manipulate the images
of the cores and extract a lot more information. Lecturers
can also use the core images as a teaching aid in class, not
just in North Dakota, but throughout the world.

44 GEOExPro December 2014


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Exploration

A New
Oil Play in
East
Africa
Following the
recent discoveries
off Tanzania and
Mozambique, a newly
The offshore basins to the west of reports for 98 exploration wells in the
acquired 2D seismic Madagascar are part of a large Gondwana adjacent shallow offshore and Onshore
break-up rift basin that formed during Morondava Basin.
data set (MAD13) the early Mesozoic. The strike-slip rifting
Rifting Governs Geology
which clearly illustrates propagated southwards and includes
several basins offshore Tanzania, Onshore Madagascar, Tanzania and
the tectonic setting Kenya and Mozambique. These basins
make up a large prospective area that
Kenya host failed Permo-Triassic rift
basins. Permo-Triassic hydrocarbon
and prospectivity already has some significant discoveries, deposits in the Onshore Morondava Basin
notably Sunbird offshore Kenya (oil) have been known since 1842 and contain
of offshore western and Windjammer and Ironclad offshore the Bemolanga and Tsimiroro oil fields.
Mozambique (gas). Due to the recent The Offshore Morondava Basin
Madagascar is set to drilling successes, this trend has regained and Kerimbas Graben to the west of
industry interest.
revive interest in the The deepwater
Satellite gravity map of the offshore Madagascar regions showing
the major structural elements and the location of the MAD13
survey. Note the Davie Ridge that accommodates the right lateral
region. Offshore Morondava
Basin and Kerimbas strike-slip faulting (Satellite gravity backdrop from Scripps
Institute of Oceanography, University of California).
Graben (also known as
M. TYRRELL, TGS; Lacerda Graben), which is
the focus of this article, is
XIE JIELAI, BGP Geoscience
Research Institute; undrilled and has licence
blocks that are mostly
SHI KUITAI, BGP Marine
open, with a planned
P.CONN, TGS; competitive licensing
P.CHANDLER, TGS round anticipated in 2015.
The TGS regional
offshore geophysical data
coverage in the region
Valentina Gabusi, Thinkstock

amounts to some 51,000


km of modern multi-
client offshore 2D data.
In addition the company
have compiled logs and

46 GEOExPro December 2014


Jurassic sandstone surrounds a natural swimming
pool in Isalo National Park, Madagascar.

Madagascar formed in the Jurassic Interesting Structural Features Jurassic to possible Early Cretaceous
as a result of the separation of the The Offshore Morondava Basin: The in age (Rusk & Bertagne, 2003) and
Madagascar-Indian plate from the Permian shale source rock for the are likely to contain lacustrine or
African plate. This break-up is likely onshore Bemolanga Tar Sands may be restricted marine source rocks together
to have followed or reactivated earlier present in the Offshore Morondava with alluvial and fluvial sheetflood
Palaeozoic rift basins, with some Basin, although it must be noted that sandstones, which can have excellent
evidence for these being interpreted there is as yet no direct evidence from reservoir properties. The syn-rift
within the Davie Ridge. Madagascar drilling. sediments are interpreted to be present
drifted south-eastwards away from The original normal faults of the throughout the Offshore Morondava
the African plate throughout the Early Offshore Morondava Basin and other Basin.
Cretaceous along the Davie Fracture rift basins to the north along trend have A thick post-rift Cretaceous and
Zone, resulting in the transtensional and been re-activated by dextral strike- Tertiary section overlies the syn-rift
transpressive reactivation of existing slip faulting. Major faults should have sediments and is interpreted to
fault systems. This rifting and transform large throws with thick sediment piles host reservoir and seal sequences
movement resulted in the two major developed in transtensional basins. comprising sand-rich turbidites,
offshore basins: the Offshore Morondava The syn-rift sediments of this basin are submarine channel and mass-flow
Basin and the Kerimbas Graben, which
are divided by the north-north-west to An example seismic line from the TGS-BGP MAD13 data set showing the two Mesozoic basins
divided by the Davie Ridge. Note that the ages of the Kerimbas Graben stratigraphic surfaces are not
south-south-east oriented Davie Ridge. constrained by any well data in this area.
In addition to the fault reactivation
and deformation due to the right-lateral
TGS/BGP
500 ms TWT

10 km
W E
transform movement along the Davie
Fracture Zone, the separation of the Oligocene
Indian plate from the Madagascan
Mid
plate in Late Cretaceous times led Cretaceous?
Santonian
Albian
to accelerated subsidence as well as
Paleozoic(?) Late Jurassic
compression and local inversion of the Mid Jurassic
Jurassic rift basin. This break-up of
Boundary of
the Madagascan and Indian plate was Davie Ridge Early Jurassic
associated with igneous intrusion and Seismic Basement
volcanism. The volcanics form a regional Transitional
stratigraphic marker of Cenomanian to Crust ? Continental Crust
Kerimbas Graben Davie Ridge Morondava Basin
Santonian age (Maloney et al, 2008).

GEOExPro December 2014 47


Exploration

The modelling indicates that the

TGS/BGP
coaly source rocks expelled oil from
Early to Late Cretaceous after which
they passed into the gas window.
The younger Late Jurassic lacustrine
source rocks started expelling oil in
the early Tertiary and this oil expulsion
continued until the Pliocene. Early
Cretaceous source rocks are likely to be
in the oil expulsion window present day
within the Offshore Morondava Basin.
Numerous fluid conduits can be
Expulsion timing for source rocks at depths A (Type I: lacustrine) and B (Type III: coaly).
seen on the seismic sections emanating
deposits. A Late Cretaceous regional been identified in the coastal wells from the syn-rift sediments in both
volcanic event can provide a good seal and are likely to have been deposited the Kerimbas Graben and Offshore
over much of the area. within open marine, lacustrine, Morondava Basin. These features may
The Davie Ridge: The north-north- restricted shallow marine and lagoonal indicate possible vertical hydrocarbon
west to south-south-east trending environments. They are also expected to migration pathways.
Davie Ridge is bounded by right be present westward and basinward into
lateral strike-slip faults that extend the Offshore Morondava Basin (Rusk, Highlights
from the coast of Kenya to south of Bertagne and Associates, 2003; USGS, Offshore Madagascar has the potential
Madagascar. It is interpreted to have 2012) and may also be present in the for widespread Jurassic to Early
developed on continental crust and its Kerimbas Graben since source rocks of Cretaceous source rocks to be present,
core is thought to contain Gondwana the same age are found in the basins of which are modelled as mature for oil
remnant material, which is likely coastal Mozambique, the Mozambique within the study area. This indicates the
to comprise a mix of sedimentary, Channel and Tanzania (USGS, 2012). presence of a new oil play in East Africa,
metamorphic and volcanic lithologies. Initial Offshore Morondava Basin where the received wisdom is that the
The Davie Ridge is characterised thermal modelling studies of Jurassic area is likely to be another gas-prone
by a prominent asymmetric gravity source rocks were undertaken at province. Within the stacked reservoir
anomaly, with the western part selected pseudo-well sites. Limited sequences of the syn-rift and post-rift,
showing magnetic highs with gravity thermal and maturation data were there exists a variety of structural and
lows, while the eastern Davie Ridge available from the shelfal wells to assist combination trapping mechanisms
shows magnetic lows with gravity in constraining the modelling. Beta which appear favourable for charge
highs. Additional modelling is factors of 2.0 and 2.4 were used for the when the timing of late oil expulsion is
required to explain this feature. Jurassic rifting and the Late Cretaceous modelled.
The Kerimbas Graben: To the west stretching due to the break-up of India With a licence round to be
of the Davie Ridge is the Kerimbas and Madagascar. Shallower depths of announced in 2015, and the area
Graben, which is part of a north- burial eastwards will lead to later oil covered by the MAD13 survey
north-west to south-south-east trend expulsion events and the potential for containing over 40 blocks of open
of prospective grabens. This trend older source rocks to contribute to the acreage, this is an attractive undrilled
extends southward from offshore petroleum system. frontier on which to focus.
southern Somalia through offshore An example seismic line from the Kerimbas Graben showing fluid conduits indicating possible
Kenya and Tanzania (where there is a hydrocarbon migration. Blue polygons indicate brighter reflection features above the conduits.
proven petroleum system) to offshore
TGS/BGP
500 ms TWT

10 km
Mozambique and Madagascar. W E
The Kerimbas Graben may contain
Early to Late Jurassic syn-rift sediments.
If present, as in the Offshore Morondava
Basin, such rocks are likely to be Oligocene
lacustrine or restricted marine source
rocks together with alluvial and fluvial
sheetflood sandstones and mudstones,
which could provide reservoirs and seals
respectively.
Late
Cretacous
The Source Rock Model
Mid
Early to Late Jurassic and Early Cretacous Top Synrift
Cretaceous oil-prone shales have

48 GEOExPro December 2014


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GEOExPro December 2014 49


Exploration

Play Type Examples

TGS/BGP
500 ms TWT
W E

Play Type A: Mid Cretaceous post-rift


play with flat spot – Kerimbas Graben Flat spot
Play Type A is a post-rift sand-prone slope
fan that displays a prominent flat spot. This
is found just above the location of expected
mature rocks in the Late Jurassic. The faulted Mid Cretaceous
syn-rift section below this also shows trapping
potential.
Top Synrift

5 km

Play Type B: Cretaceous early post-rift

TGS/BGP
500 ms TWT
W Late Cretaceous E
play in sand-prone slope fan sandstones Cretaceous post-rift
fan play: upper section
– Kerimbas Graben Mid Cretaceous
Play Type B shows a post-rift slope fan with
structural trap potential (upper section) and
combination stratigraphic pinch-out with Cretaceous post-rift
possible updip fault seal (lower section). This fan play: lower section
play is just above the location of expected
mature source rocks.

Top Synrift
5 km

Play Type C: Sand-prone slope fan

TGS/BGP
500 ms TWT

W E
pinch-out – eastern flank Offshore
Morondava Basin
Play Type C shows three sand-prone slope fans
separated by deep water mud-prone facies. The
sand fans display a hummocky facies character
with generally good seismic continuity. The
interbedded mudstones can act as intra-
formational seals.

Oligocene
5 km

Play Type D: Offshore Morondava Basin

TGS/BGP
500 ms TWT

W E
Slope Fan
sand-prone slope fan pinch-out against
the Davie Ridge Oligocene
Play Type D shows a Paleogene slope fan
overlying a Cretaceous slope fan. The
Paleogene fan pinches out against the Davie
Ridge and shows brightening updip, which is a
possible indication of hydrocarbon charge. Santonian

5 km

References: Acknowledgements:
Rusk, Bertagne & Associates, 2003: Petroleum Geology and Geophysics of the Simon Bowen, TGS-Africa, Mediterranean and
Mozambique Channel. Multi-Client Report 2003. Middle East; Mr Huang Weining, BGP; Ian Deighton,
Mahoney J. J., Saunders A. D., Storey M. and Randriamanantenasoa A., 2008, Erika Tibocha, Gavin Hudson, TGS.
Geochemistry of the Volcan de l’Androy Basalt-Rhyolite Complex, Madagascar With special thanks to Office des Mines Nationales
Cretaceous Igneous Province, Journal of Petrography, V49, No.6 et des Industries Stratégiques (OMNIS) for new data
USGS, 2012: Assessment of Undiscovered Oil and Gas Resources of Four East acquisition.
African Geologic Provinces.

50 GEOExPro December 2014


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Technology Explained

Dynamic
quite dramatic changes in our understanding of the stratigraphic
record and the way that petroleum systems were formed.
“Sequence stratigraphers have struggled to explain

Topography
large unconformities in terms of rapid changes in sea level.
These anomalies have been attributed to icecap melting,
but that can only generate a maximum amplitude of about
120m. The sequence stratigraphic community has always

Sheds New Light had questions about what causes third order stratigraphic
variations, and we think it is something to do with
processes beneath the plate that are leading to dynamic
The new field of dynamic topography is changing topography,” Dr Czarnota explained.
our understanding of the sedimentary record. It has long been expected that above rising, hot and
buoyant material within the mantle a broad topographic
DAVID UPTON swell will develop. Conversely, the presence of sinking, cool
Australia is at the centre of its own tectonic plate and a and dense material within the mantle should lead to a wide
safe distance from the powerful and destructive forces of topographic depression at the Earth’s surface.
subduction in the Pacific Rim of Fire. Plate theory therefore “These broad topographic features are expected to come
says we can expect the Australian landmass, which has been and go as tectonic plates drift across an ever-changing pattern
unaffected by tectonic boundaries for 80 million years, to of convective circulation beneath them,” he continued. “Until
be flat and stable, with little or no vertical crust movement. recently the significance and geological expression of this
But recent studies in the relatively new field of dynamic phenomenon, known as dynamic topography, has eluded
topography show that the Australian plate has been subjected the geoscience community because it has been difficult to
to large vertical movements – up to one kilometre up or down measure its effects.”
– in the very recent geological past.
The new work is led by Geoscience Australia’s Dr Karol Dynamic Uplift and the Nullarbor Plain
Czarnota, who was sponsored by the Australian government The new field of dynamic topography addresses the problem
geoscience agency to complete a doctorate in dynamic by relying on a well-known relationship between the depth
topography at Cambridge University in the UK. His
conclusions challenge the view that in
old and stable regions the
stratigraphic record is a
simple function of changes
in global sea level. “The
geoscience community is
beginning to realise that
many broad topographic
and bathymetric features
in intra-plate settings, such
as Australia, are the surface
expression of convective
circulation within the Earth’s
mantle.”

Implications for
Petroleum Industry
Dr Czarnota and other
dynamic topographers at
Cambridge are turning upside
down many of the previously
accepted ideas developed
from computer modelling
of convection in the Earth’s
Diagram showing
mantle. Their work is also the subsidence of the
relevant for climate change ocean floor as the oceanic
Geoscience Australia

scientists and their models of plate cools and thickens with age.
A broad topographic swell develops
sea level change.
above rising hot mantle material, while
For the petroleum industry, sinking, cool and dense material within the
dynamic topography can mean mantle should result in a wide topographic depression.

52 GEOExPro December 2014


and age of the world’s oceans. On average,
the oceanic floor is 2.6 km deep at mid-

Geoscience Australia
ocean ridges and subsides to 5.7 km as the
plate cools and thickens with age. Dynamic
topography measures the perturbations
from that well-established age-depth trend.
Dr Czarnota said that a correction
is applied to compensate for the actual
thickness of the crust, which is possible from
another well-established understanding of
the change in topography due to thinning
or thickening of the crust. Seismic surveys
provide the data on crust thickness, and are
in abundant supply on many parts of the
Australian continental shelf.
The figure on the right shows the
wide variation in expected bathymetry
around the Australian land mass due to
mantle convection. The most prominent
feature is a large depression in the order
of one kilometre in the Great Australian
Bight. Towards the south-east of this, the
depression gives way rapidly to an upwelling
feature centred on the South Tasman Rise.
Dr Czarnota said the geological record
on the Nullarbor Plain was of progressively
younger shorelines towards the coast,
and indicated the Bight was on its way
up from an even deeper depression. This
uplift was a consequence of the Australian
plate drifting northwards out of the
dynamic depression affecting the Bight and
Southern Ocean. “In southern Australia, we
have had 300m of dynamic uplift over the
last 40 million years, which has exposed
the Nullarbor Plain and formed spectacular
cliffs along its southern edge.” (See photo of
the Nullarbor Plain on page 20.) Oceanic dynamic topography estimates.

North West Shelf Puzzle But sea levels rose instead, and carbonate reefs stacked up
Dynamic topography is shedding new light on the way on top of each other, creating a high load of sediments that
petroleum systems formed in some of Australia’s most pushed the bottom of the stack into the maturation window.
important basins, including the North West Shelf. In the Gippsland Basin, Dr Czarnota’s work has also
Dr Czarnota said the stratigraphic record along the North explained a large unconformity in the sedimentary sequence
West Shelf revealed the onset of dynamic drawdown about in a period of rapid Eocene uplift. “This unconformity has been
10 million years ago. Up to 700m of subsidence had occurred linked to the arrival of mantle upwelling beneath south-eastern
since then, which was seven times the amount that could be Australia and the formation of the Great Escarpment. The
accommodated by global sea-level change. unconformity was infilled by reservoir rocks, a key component
“The rapid sinking of the North West Shelf was always of one of the Gippsland Basin’s petroleum systems.”
puzzling to petroleum geologists because it happened in the Dr Czarnota said dynamic topography created important
Neogene, when evidence from around the world says this was new insights, based on data rather than modelling, but
actually a period of falling sea levels. Now we can understand the best results would come from working across many
the mechanism of this subsidence along the North West Shelf.” disciplines. “We need a very multi-disciplinary approach
He said this was important because the rapid sinking was to get the most useful answers. That means input from
responsible for about 50% of the oil expelled from carbonate modelling, from the data we collect, the geological record,
source rocks in the adjacent Browse Basin. If the Browse Basin the sequence stratigraphers and the basin analysts. Good
had subsided as normal, the carbonate platform along the exploration for hydrocarbons relies on good geology, and you
palaeo shoreline would have built out into the Indian Ocean. make better decisions with the more information you have.”

GEOExPro December 2014 53


Technology Explained

Communicating Naturally
Critical decision making can be speeded up through TRACEY DANCY
Natural Language Generation software, a
technique that originated in the medical world.
On the surface, you might not think that the oil industry would
have much in common with the medical community. The mental
image that most of us have of a rigger, dressed in coveralls and
heavy boots, operating heavy machinery and braving extreme
weather, is far removed from the sterile, white-coated figures who
perform delicate surgery in climate-controlled operating theatres.
Dig a little deeper, however, and the two worlds overlap far
more that you might imagine. Houston, Texas, for example,
has two major industries – oil and gas, and medicine – and, via
regular ‘Pumps and Pipes’ meetings, they have been exploring
together the similarities in the technology they use and the
challenges they face.
Professor Ehud Reiter agrees. He is Chief Scientist at Arria
NLG plc, with 25 years’ experience working on decision-
support technologies across both these industries. His focus,
and that of Arria NLG, is on using analytics to speed up
mission critical decision-making with a technology called
Natural Language Generation (NLG). He notes that both
doctors and engineers “raise remarkably similar issues and
concerns about decision-making, even though they work in
very different contexts”. This shouldn’t come as a surprise,
given that decision-making is fundamentally about the
psychology of human reasoning, regardless of whether the
reasoning concerns sick babies or malfunctioning generators.
Oil & Gas Overview

COMPRESSOR ALERT CASE STUDY

BEFORE: Decision SupportDecision-Making


The Human RecommendationWorkflow
Without NLG:
OVER 5 HOURS
OVER 5 HRS
YOUR HUMAN
INPUT OUTPUT
DIVERSE DATA DECISION SUPPORT
SOURCES NARRATIVES

SENSOR DATA
HISTORIAN HUMAN
REVIEW WRITE DECISIONS AND
ALERT MONITORING ALERTS REPORT ACTIONS
SYSTEM

EQUIPMENT & ALERT


ALERT DRIVEN
METADATA
PRIORITIZE
ENGINEER MAINTENANCE PRIORITISE
RECOMMEN- PERIODIC
HISTORY ALERTS
DATION
OPERATOR
OPERATIONS
LOGS
MAKE
DIAGNOSTIC INVESTIGATE EXAMINE ENGINEERING
BUSINESS RULES RECOMMEN-
ALERTS HISTORIES
DATION
OTHER OTHER

EVENT: 04:58 AM PRIORITIZATION ANALYSIS COMMUNICATION ACTIONS: 10:30 AM

54 GEOExPro December 2014 NATURAL LANGUAGE GENERATION — BRINGING DATA TO LIFE 11


We have it covered, before you even set
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Pre-screening for future seismic placement in frontier areas with high resolution airborne
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Addressing Decision-Making Issues 1. Finding Data: NLG pulls together the key facts from
Both engineers and physicians have a number of key disparate data sources into a single, integrated narrative
complaints when it comes to decision-making: with supporting graphics.
1. It’s too hard to find data: Fundamentally, humans are the 2. Scarcer Expertise: NLG captures and ‘bottles’ domain
same, regardless of what industry they are working in. They knowledge. Once captured, it is always available to
are good at making decisions if the key data is available, but analyse which information is, and is not, important, and
finding the right data in a world where ‘big data’ has become to draw conclusions from it.
a catchphrase can be like finding a needle in a haystack. 3. Forgetfulness: NLG generates a reliable, comprehensive
2. Expertise is a scarce resource: This can make a huge summary of key facts for shift handover.
difference in decision-making confidence. In the oil and gas 4. Acceptance: NLG helps people do a better job by sharing
industry, in particular, we are losing experienced staff to information, not giving orders.
retirement without bringing in new expertise at a basic level,
with the consequent loss of knowledge and experience. Tailored Reports
3. Key information is lost at handover: Handover time can The BabyTalk system, an NLG application built by Professor
be difficult. After a busy shift it is easy to forget details Reiter’s team for the Royal Infirmary in Edinburgh, generates
and omit to record every point. Forgetfulness is amplified summaries of clinical data about babies in neonatal intensive
by fatigue, compounding the issue. care. Data collected from a variety of sources, including the
4. Staff do not like computers telling them what to do: electronic patient record, goes through Arria’s NLG Engine,
People want to be in control. Having their actions producing a variety of reports tailored to the target recipient:
dictated by a machine can be difficult to accept – and the doctor, for whom the reports supply decision-making
there is often a lack of trust in the relevance and accuracy support; the nurse, for whom a detailed handover document is
of the input. produced; and the parents, who receive a daily update on their
Natural Language Generation (NLG) is a technology that child’s condition and progress.
automatically generates textual narratives summarising In the oil and gas industry, Arria is currently providing
complex data, providing a decision-support tool equally at its technology for discrete equipment areas; specifically,
home in both medicine and energy, and indeed in many other an exception-based alert system for rotating equipment on
industries. NLG supports people, and in doing so, addresses platforms in the Gulf of Mexico. When an alert indicates a
the psychological issues outlined above in the following ways: temperature or movement threshold has been breached, the

GEOExPro December 2014 55


Technology Explained
Oil & Gas Overview

COMPRESSOR ALERT CASE STUDY


AFTER: Decision
AFTER: Decision Support
Support With The ArriaWith
Recommendation NLGNLG:
Engine 60 SECONDS
60 SECONDS
YOUR THE ARRIA NLG ENGINE NLG
INPUT OUTPUT
DIVERSE DATA OVERALL DECISION SUPPORT
DATA MESSAGE DOCUMENT MICRO SENTENCE LINGUISTIC
DOCUMENT
SOURCES ANALYTICS POOL PLANNER PLANNER PLANS REALIZER NARRATIVES
PLAN

SENSOR DATA
INSTANT SUPPORT
HISTORIAN
DOMAIN IMPORTANCE AGGREGATION SYNTAX FOR HUMAN
KNOWLEDGE ASSESSMENT RULES RULES DECISIONS AND
ALERT MONITORING ACTIONS
SYSTEM ------------------------------- ------------------------------- ------------------------------- -------------------------------
SUBJECT MATTER RELEVANCE SEMANTIC MORPHOLOGICAL
EQUIPMENT & ALERT EXPERTISE ASSESSMENT RULES RULES
------------------------------- ------------------------------- ------------------------------- ------------------------------- ALERT DRIVEN
METADATA
REASONING GENRE REFERENCE FORMATTING
ENGINEER MAINTENANCE RULES CONVENTIONS CONVENTIONS RULES PERIODIC
HISTORY ------------------------------- ------------------------------- ------------------------------- -------------------------------
INTERPRETATION STORY-TELLING LEXICAL ORTHOGRAPHIC
OPERATOR RULES RULES RULES RULES OPERATIONS
LOGS

DIAGNOSTIC
The atoms of informative A contextually-appropriate Specifications for how ENGINEERING
BUSINESS RULES
content that can be used to plan for the overall structure information should be packaged
OTHER tell a story. of the text. into individual sentences. OTHER

EVENT: 04:58 AM PRIORITIZATION ANALYSIS COMMUNICATION ACTIONS: 04:59 AM

NATURAL LANGUAGE GENERATION — BRINGING DATA TO LIFE


NLG system kicks into action. For any platform, with each type of report being generating a great deal of interest. We15
given alert, there are 77.6 million sensor tailored to a specific audience. are starting with system components,
data points that could be relevant, Arria’s NLG core technology but you can easily imagine how the
which the NLG Engine assesses, includes a sophisticated Data Science information at that level can be
analyses and then feeds into a 500-word Framework. This rationalises the aggregated, making it possible to report
report, describing what’s happening processes involved in analysing on chains of equipment all the way
and why the situation has arisen, all varied and complex data sets to up to the entire platform, correlating
generated in less than 90 seconds. make it quick and easy to configure and integrating that information for
All this processing is performed analytics processing for new scenarios, a complete report of the system –
on a standard desktop computer. The and in particular to make it more ultimately, creating what is really an
NLG Engine knows how to analyse straightforward to embed knowledge articulate oil and gas field.”
the relevant data, including any data captured from domain experts into the
belonging to associated machinery, NLG Engine.
and how to decide what information
is important and reportable. What is The Articulate Oilfield
more, it also knows how to put together “Anywhere there’s a lot of data that
a story to explain the data, emphasising people struggle to deal with, is a place
the most significant factors, and how where this technology could be useful,”
to package information into sentences says Dr Robert Dale, Chief Strategy
of the right size and complexity, using Scientist and Chief Technology Officer
the correct grammar and appropriate at Arria NLG. “At the moment we’re
terminology. looking at electrical submersible pumps
Further applications of the and drilling reports, an area that’s
technology are planned in the Gulf of
Mexico. Ultimately, Arria envisages a Arria’s Chief Scientist Ehud Reiter is also
Professor of Computing Science at the
scenario where the NLG Engine could
University of Aberdeen’s School of Natural
be used not just in discrete areas, and Computing Sciences, and founder of the
but across entire platforms, enabling University’s NLG research group. He also co-
any level of report to be produced authored the book ‘Building Natural Language
Generation Systems’ with Dr Robert Dale,
at the touch of a keyboard, ranging
published in 2000 by Cambridge University
from specific equipment analysis to a Press. Prof Reiter has a PhD from Harvard
performance summary for the entire University.

56 GEOExPro December 2014


WestraliaSPAN : Redefining ™

the Westralian Superbasin.

OZ SEEBASE™ Study 2005, Public Domain Report to Shell Development Australia by FROGTECH

WestraliaSPAN provides continuous coverage across the most prospective basins


of Australia’s North West Shelf. Acquired using ION’s proven deep tow techniques
and imaged by ION’s GX Technology group using proprietary broadband processing,
the survey includes more than 14,000 km of high-quality depth-processed data. The AREAS OF EXPERTISE

superior imaging of the WestraliaSPAN data has allowed for a step change in the Unconventional Reservoirs

understanding of the early tectonic history, in particular the interpretation of early Challenging Environments

rift structures, which originally formed the basins and sub-basins that comprise the Complex Geologies

Westralia Superbasin. To learn more, visit iongeo.com/WestraliaSPAN. > Basin Exploration

Reservoir Exploitation

GEOVENTURES®
The Australian
The North West Shelf of Australia is a diverse petroleum province that has remained enigmatic over Figure 1. Map of
the Australian
a prolonged period of exploration. Offshore drilling started in the late 1960s with shelfal wells in the North West Shelf
showing the
Carnarvon and Bonaparte Basins. More than 2,000 wells have since been drilled, resulting in discoveries location of the

North West Shelf:


of over 3 Bb of liquids and 100 Tcf of gas resources. In 2011, the USGS estimated a remaining undiscovered main basins and
the ION Westralia
potential of 4.6 Bbo and 225 Tcfg for the basins from the North Carnarvon to the Bonaparte. SPAN data. Lines
Bonaparte Basin
from Figures 2–4
Figure 3. North-west to south-east section across the Browse Basin from the Leveque Shelf in the south-east across the Caswell and Barcoo sub-basins, are highlighted. AU1-3700 - Fig. 3

both of which contain thick fluvio-deltaic (Carboniferous) to marine (Permian) sections. Transgression was accompanied by back-stepping and onlap onto

New insights from


AU1-5000 - Fig. 4
the Leveque Shelf in the late Jurassic, continuing through the Early Cretaceous. Carbonate sedimentation commenced from the Turonian, interrupted in
part by a pulse of siliciclastics in the Campanian to Middle Oligocene. The entire package is well imaged on this line. (See Figure 5 for horizon correlations.) Browse Basin ION SPAN Lines
AU1-1050 - Fig. 2 Block Boundaries
Hydrocarbon Fields

Deep Seismic
Gas Fields
Roebuck Basin Oil & Gas Fields
Oil Fields

Figure 2. North-west to south-east line across the North Carnarvon Basin, imaging the full sedimentary section down to 20 km depth. The full
Permo-Triassic Mungaroo delta is imaged with its small-scale extensional faulting, which appears to detach down onto the underlying Permo-
Carboniferous strata. The majority of the section across the Exmouth Plateau is interpreted to be underlain by exhumed mantle. The inboard
transition from continental crust to exhumed mantle is also the focal point for the later development
of the Exmouth sub-basin at the south-east end of the line. The north-west end of the line records Kilometres
the eventual Jurassic break-up event with important volcanic and intrusive features diagnostic of a 0 100 200 400 600
volcanic margin. (See Figure 5 for horizon correlations.)

58 GEOExPro December 2014 GEOExPro December 2014 60


A Developing Province
PAUL BELLINGHAM, KENNETH McDERMOTT, ION Geophysical
With an estimated remaining undiscovered potential of 4.6 Bbo and 225 Tcfg, there is still
much to explore for in the North West Shelf of Australia.
The North West Shelf (NWS) can be divided into four migrated (Figures 2–4). The WestraliaSPAN line layout
major basin areas (Figure 1), each with a number of includes true dip lines orientated so as to accurately
working petroleum plays from Permian to Cretaceous: image the structural grain of the NWS, while regional
• The North Carnarvon Basin with its major gas plays strike lines link the constituent basins of the Westralia
on the Exmouth Plateau and oil plays in the Barrow/ Superbasin, providing regional links between the
Dampier sub-basins. The area is characterised by the provinces of the NWS. This enables construction of
thick Permo-Triassic Mungaroo Delta section, thin regionally consistent models for the geological evolution
or absent crust and Jurassic/Cretaceous deformation of the NWS. Beyond careful planning and acquisition,
(Figure 2). the use of ION’s latest imaging and velocity modelling
• The Roebuck Basin contains a thick Permo- capabilities are the basis for the results. Depth imaging
Carboniferous section, reaching 15 km thickness in enables complex structures to be viewed with true depth
parts of the Rowley sub-basin. The overlying Triassic perspective, and permits the regional links between
and Lower Jurassic systems provide good reservoirs the different provinces to be calibrated. The improved
and have recently been proven as a significant oil play imaging combined with better velocity modelling
with the Phoenix South discovery. These units thicken allows interpreters to see for the first time the full
to the north-west only to be abruptly truncated at the sedimentary section and underlying crustal architecture,
margin. distinguishing between what had previously been
• The Browse Basin deepens rapidly at a crustal necking considered to be continental basement, and sediment.
zone at the edge of the Kimberley Craton (Figure 3)
with the various sub-basins filled with thick fluvio- Implications for Future Prospectivity
deltaic Carboniferous and marine Permian sediments Both the North Carnarvon and Bonaparte Basins
as a record of the Westralia event (Figure 5). Carbonate (Petrel sub-basin) are characterised by thick sediment
dominated sedimentation started in the Turonian and accumulations, up to 20 km and 24 km respectively.
continued through to the Oligocene. Multiple rifting phases have resulted in hyper-extension
• The Bonaparte Basin and Petrel sub-basin (Figure of the crust and possibly extensive mantle exhumation
4) contain over 20 km of fairly continuous in these basins. Sediment supply has generally kept pace
stratigraphy from the
Palaeozoic to the present Figure 4. (a) North-west to south-east section across the Bonaparte Basin with the PSDM velocity
day, largely uninterrupted by model overlain. Demonstrates the high velocities attributed to the deep sediments interpreted at over
20 km depth. (b) Geoseismic interpretation of the same line. (See Figure 5 for horizon correlations.)
significant faulting since the
Carboniferous. The thickening
sediment section coincides
with dramatic thinning of
the crust to potential mantle
exhumation.
The NWS and its constituent
basins and sub-basins have been
subjected to, and modified by,
multiple tectonic events with
different orientations and extents,
each well defined in the ION
WestraliaSPAN data (Figure 5).

The Importance of Quality Data


Key to progressing our
understanding of the NWS has
been the availability of long-
offset (10km), long-record (18s
TWT), regional seismic data
that have been pre-stack depth

GEOExPro December 2014 61


with the creation of accommodation space,
with sediment having been deposited directly
onto exhumed continental lithospheric mantle
(Figures 2 and 3). A striking feature of the
NWS is that it contains an almost complete
record of sedimentation throughout the entire
Phanerozoic (Figure 5). This is due to the
protracted and polyphase nature of stretching
events along the NWS, and the comparatively
limited periods of uplift and erosion.
The thick sediment sections raise a
number of questions and implications for the
prospectivity of the basins. The anomalous
sediment thicknesses are difficult to balance
with traditional crustal extension and
subsidence models. Models of hyper-extension
and/or mantle exhumation are required to
isostatically provide the accommodation space
to allow for such deep basins. These models
have significant uncertainties as the process of
serpentinisation of the underlying lithospheric
mantle is extremely difficult to constrain in
terms of its extent and impact on density and
heat flow. In general, serpentinisation will
decrease density and thus suppress subsidence.
In addition, the process of multiphase
extension with relatively long time periods
between events (see Figure 5) means that the
thermal effects of previous rift events will be
largely dissipated by the time of the next event,
and that both deep sediment and partially
serpentinised lithospheric mantle from
previous events may be acting essentially as
continental crust in later events.
Finally, once the sediment pile reaches
a certain thickness, progressively higher
grade metamorphism will occur. We can see
evidence for this on AU1-5000 (Figure 3) where
reflections that appear to be characteristically
sedimentary have seismic velocities in the
region of 5.5 – >6 kms-1. This increase in
seismic velocity (and implicitly density) will
serve to drive additional subsidence, creating
accommodation space for further sediments.
These competing factors driving the subsidence
of the margin at different times and in
different ways have implications for heat flow
and thermal maturation of source rocks.
Interpretation of the deep seismic data of the
WestraliaSPAN survey provides an image of the
architecture, allowing explorers to constrain
the structural evolution and integrate existing
heat flow and geochemical data to better
understand petroleum system history.
Acknowledgement: The authors would like
to acknowledge the team at Frogtech for their
Figure 5: Tectonostratigraphy of the NWS basins discussed. Adapted from Geoscience
interpretation work on the WestraliaSPAN Australia. Mapped horizons from the seismic sections (Figures 2–4) are shown along
project. with the location of the main oil and gas plays in the basins.

62 GEOExPro December 2014


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Recent Advances in Technology

Gas Hydrates PART V:


The Resource
LASSE AMUNDSEN, THOMAS REICHEL, Statoil
MARTIN LANDRØ, NTNU Trondheim Potential
Seismic feature
Look deep into enhancement
-3.7s +
nature, and then of BSR and two
underlying flat
you will understand spots.
everything better Courtesy Statoil.
– Albert Einstein -

-4.0s

Data provided courtesy of Sonangol


E.P. and Schlumberger Multiclient.
-3.7s Seismic example
of marine gas
hydrates above a
double flat spot.
The contrast
between the
BSR high-velocity
hydrate-bearing
strata and the
Flat spot low-velocity gas-
bearing strata
Flat spot -4.0s beneath results
in the bottom-
simulating
reflector (BSR).
In this example,
the gas hydrates
act as seals
Data provided courtesy of Sonangol

for underlying
E.P. and Schlumberger Multiclient.

hydrocarbon
reservoirs.
Courtesy: Statoil.

64 GEOExPro December 2014


The gas hydrate resource is

Courtesy: Ray Boswell


a function of host geology,
technology, policy, and market
conditions. The commercial
resource and recovery potential
of gas hydrate strongly depends
on the type of gas hydrate
accumulation. We continue
our series on gas hydrates
(GEO ExPro, Vol. 9, No. 3-6) by
discussing the resource potential.
Natural gas hydrate occurs worldwide: in
oceanic sediments of continental slopes;
in deepwater sediments of inland lakes
and seas; and in both continental and
continental shelf polar sediments. In
oceanic sediments, where water depths Gas hydrate resource pyramid: Gas hydrates exist in a variety of forms that pose different
exceed about 300m and bottom water opportunities and challenges for energy resource exploration and production. The left axis
temperatures approach 0°C, gas hydrate displays lithology of the host sediment. The right axis shows associated estimates of natural gas
resources. Gas hydrate-bearing sands are the most feasible initial targets for energy recovery.
is found at the seafloor and down to Other occurrences, such as gas hydrate-filled fractures in clay-dominated reservoirs, may become
sediment depths of about 1,100m. The potential energy production targets in the long-term future.
typical depth range for hydrate stability
lies 100–500m beneath the seafloor. In sediments, while the other 2% are in Tcf, or around 2.8 x 1015 to 8 x 1015
polar continental regions, gas hydrate polar landmasses. m3, indicating that more carbon is
can occur in sediments at depths ranging contained in methane hydrate than in
from 150 to 2,000m. Occurrences of How Much Gas Hydrate Exists? all other organic carbon reservoirs on
hydrates within the gas hydrate stability Gas volumes are often cited in units of earth combined.
zone (GHSZ) are affected by numerous trillion cubic feet (Tcf), and there are These estimates, however, include
additional factors, including availability approximately 35.3 cubic feet in a cubic hydrate in low-grade shale deposits as
of gas, water, and geological controls. metre. It is estimated that resources of well as in high-grade sand deposits. Only
About 98% of the gas hydrates are methane in natural hydrate reservoirs a fraction of the methane sequestered in
believed to be concentrated in oceanic range anywhere from 105 to 2.8 x 106 global gas hydrate deposits is likely to be
both concentrated and accessible enough
Seismic attribute co-blend map (RMS amplitude/coherence) showing sand channels in excess of 150m to ever be considered a potential target
thick. The bright yellow and orange colours highlight zones with high seismic amplitudes characteristic of
sand channels. The displayed interval shows several generations of sand deposits within the gas hydrate
for energy resource exploitation.
stability zone. If charged with gas they could form prospective targets for gas hydrate exploration. The relative amounts of gas hydrate
in the global system can be illustrated
Reichel and Gallagher, 2014

by the hydrate resource pyramid, which


captures the distribution of sequestered
methane among the major types of
global gas hydrate deposits. Only the
hydrates at the top of the pyramid – a
small subset of the hydrate deposits – are
likely to be considered viable as a source
of commercial quantities of natural gas.

Occurrences in Muds and Coarse


Silt: At the top of the pyramid lie high
permeability sediments in permafrost
areas. The amount of gas hydrate in
these settings globally is relatively
small, but permafrost-associated
gas hydrates might be the easiest to
commercialise, particularly in areas
with well-developed infrastructure from

GEOExPro December 2014 65


Recent Advances in Technology

conventional hydrocarbon production,


such as the Alaskan North Slope.
Gas hydrate resources housed in
marine sand reservoirs are also obvious Hydrate Energy International
(HEI) recently released
major targets for any longer-term estimates of the gas
development of gas hydrates as a resource. hydrate resource
Highly permeable marine sands with potential, utilising
moderate to high gas hydrate saturations a petroleum systems
approach.
are considered the best targets for
resource development. Recent logging-
while-drilling in the Gulf of Mexico has
identified geologic units with inferred
hydrate saturations as high as 80%.
Reservoir quality is expected to
increase with increasing grain size.
However, the primary control of

Johnson, 2011
importance may be intrinsic permeability.
Sediments of high intrinsic permeability
may have the capability to host hydrate at
high saturations (50–90% of pore space).
source, migration, reservoir, seal, and hydrate-bearing clays (finely dispersed).
Occurrences in Muds and Fine Silt: timing. To apply this petroleum system Three dominant types of gas hydrate
Below marine sands in the gas hydrate model to a methane hydrate resource accumulations can be defined and
resource pyramid is the category for system, one needs also to incorporate distinguished based on the mode
muds and fine silt. Fractured muds are the parameters that determine methane of fluid migration and gas hydrate
less permeable, usually smaller-grained hydrate stability conditions: formation concentration within the GHSZ (Milkov
sediments that may host gas hydrates in temperature and pressure, pore water and Sassen, 2002). The end-members
fracture-related permeability. Drilling salinity, water availability, gas source, are structural and stratigraphic
on the Indian and Korean margins gas transport, gas concentration, and accumulations, but combination
and in the Gulf of Mexico has found the time over which the system evolves. accumulations controlled both by
gas hydrate filling pervasive fractures Recently, Hydrate Energy structures and stratigraphy may occur.
within low permeability sediments (e.g., International (HEI), as part of the Global
silts and clays). Such sediments may Energy Assessment being conducted by Structural Accumulations: Structural
not have a high average saturation of the International Institute for Applied gas hydrate accumulations occur in
gas hydrate, maybe around 20%, but Systems Analysis (IIASA), released the advective high fluid flux settings, where
targeted production from gas hydrates results of a new evaluation of the gas highly permeable fractured conduits like
within the fractures could theoretically hydrate resource potential, utilising fault systems, mud volcanoes and other
yield significant gas. a petroleum systems approach. Their geological structures facilitate rapid fluid
At the base of the resource pyramid median assessment is around 43,000 Tcf. transport from depth into the GHSZ.
lie gas hydrates in low permeability, The gas hydrate concentration in the
undeformed fine-grained muds. Such Geological Settings of Gas Hydrate sediments is relatively high. Gas hydrate
sediments host most of the global Gas hydrates occur in a wide variety deposits associated with active faults
gas in place in methane hydrates and of geologic settings and modes and craters of deepwater mud volcanoes
are unlikely to become a target for of occurrence. These include gas usually present high gas hydrate
commercial production of gas from hydrate concentration, host lithology, concentrations, with 30–50% of the pore
methane hydrates. The saturation distribution within the sediment space filled by hydrates.
typically is only 5%. matrix, burial depth, water depth, and The shallow seafloor consists
Sea-floor mound deposits are many others. The major controlling typically of non-consolidated silts and
small size and ephemeral. They are factor on where gas hydrate forms is clays. Various types of gas hydrates may
environmentally sensitive due to lithology and availability of methane. occur: layers of hydrates of thicknesses
associated unique biological communities The illustration (next page) from from millimetres to tens of centimetres,
and thus unattractive as a resource target. Boswell (2011) gives a schematic depiction massive hydrate deposits, or hydrate
of the components of various methane outcrops (mounds) on the seafloor.
Potential Worldwide hydrate systems. Examples A and B Bottom-simulating reflectors
In conventional petroleum systems represent massive forms in hydrate-bearing (BSRs) are not common in structural
analysis, the geological components and marine clays. Example C shows a hydrate- accumulations as they do not typically
processes necessary to generate and bearing marine sand. Examples D and E seal much gas below the gas hydrate layer.
store hydrocarbons are well established: represent sea-floor mounds (outcrops) and If present, they are patchy and displaced

66 GEOExPro December 2014


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GEOExPro December 2014 67


Recent Advances in Technology

A schematic depiction of
the components of various
methane hydrate systems.
Typical methane hydrate
Boswell (2011)

reservoir morphologies
include (A) networks of
hydrate-filled veins; (B)
massive hydrate lenses;
(C) grain-filling methane
hydrate in marine sands
(Japan); (D) massive
sea-floor mounds (Gulf
of Mexico, USA); (E)
grain-filling methane
hydrate in marine clays;
(F) grain-filling methane
hydrate in onshore arctic
sands/conglomerates. The
general location of the
most resource-relevant
(blue circles) and most
climate-relevant (green
circles) methane hydrate
occurrences are also
shown. Other parts of the
methane hydrate system
as depicted include the
relationship between
microbial and thermogenic
gas sources and gas
migration controls.

and they do not parallel the seafloor. such as sands, hydrates can become gas hydrate and underlain by sediments
highly saturated. containing free gas. The BSR has negative
Stratigraphic Accumulations: A well-known example is the reflection amplitude caused by the
Stratigraphic gas hydrate accumulations Nankai Trough, where gas hydrate difference in elastic impedance. The base
generally occur in advective low fluid occupies up to 82% of pores in thin of the free-gas zone is rarely evident in the
flux settings within passive margins in but very permeable sand units. The seismic section and the concentration of
relatively coarse-grained sediments, Nankai Trough is located beneath the free gas is thought to decrease gradually
from biogenic methane gas generated Pacific Ocean off the south-east coast downward to water-saturated sediments.
in situ, or gas which is slowly supplied of Japan, and is known as an active In rare cases we may observe a flat spot –
from deeper in the subsurface. subduction and earthquake zone. BSRs in exceptional cases, as in the illustration
In stratigraphic accumulations, gas are commonly observed on the eastern on page 64, even two – beneath the BSR.
hydrate tends to be highly dispersed Nankai margin. This is to date the only References:
through the GHSZ, and low hydrate place where a successful gas hydrate
Boswell R., 2011. Gas Hydrates: Research
concentrations are commonly measured; production test has been performed.
Status and Potential Source of Future
1–12% of the pore space is filled by Energy Supply for the United States: Topical
hydrates. The low hydrate concentration Mapping of Gas Hydrate Paper #1-11: NPC 2011 natural gas report.
can be explained by the low permeability Interpretation of seismic data provides National Petroleum Council, Washington,
and porosity in clay-rich sediments, which the most important means for mapping D.C., 24 pp.
hinder the mobility of both water and gas, and characterising the distribution of Boswell R. and Collett T., 2011, Current
necessary for hydrate formation. Most of gas hydrates and possible underlying perspectives on gas hydrate resources:
the hydrate in clay-dominated sediments free gas. Shallow high-amplitude events Energy and Env. Sci. 4 1206-1215.
is present in a network of tiny fractures. can be generated by features other than Boswell R., 2014. Developments in Marine
However, there are significant gas hydrate – for example, carbonate- Gas Hydrate Exploration: OTC 25192-MS.
exceptions. Both the lithostatic pressure cemented zones, layered clays, the Johnson A., 2012. Global resource potential
(depth) and the sediment type influence bases of mass transport complexes, and of gas hydrate – a new calculation: DOE/
how the gas hydrate will occupy the unconformities. However, the presence NETL Fire in the Ice, 12 (2).
sediment pore space. Deeper in the of seismic bottom-simulating reflectors Milkov A. V. and Sassen R., 2002.
sediment column below the seafloor, the is the most common indicator of the Economic geology of offshore gas hydrate
hydrate cannot overcome the lithostatic presence of gas hydrate. The BSR is often accumulations and provinces: Mar. Petrol.
pressure between the sediment grains a strong, coherent reflector that lies at Geol. 19 1–11.
and must reside in the pore space or in the base of the gas hydrate stability zone Reichel T. and Gallagher J. W., 2014. Global
fractures. For coarse-grained sediments, and is overlain by sediments containing Screening of Gas Hydrates: OTC-25144

68 GEOExPro December 2014


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Reservoir Management

Kirkuk
operators and at the centre of a very
troubled and much fought over region,
has silently suffered a great deal of
reservoir damage.
Kirkuk includes three pay zones. The
first, the Kirkuk Tertiary Reservoir, is the
largest producing reservoir in Kirkuk and
comprises 98% of Kirkuk’s recoverable

A Silent Giant Oilfield reserves. The second and third pays in


the Upper and Middle Cretaceous are
small and non-producing.
The giant Kirkuk field, discovered in 1927, has had a very The original oil in place reserves of
chequered history and requires imaginative reservoir Kirkuk were estimated at 38 Bbo. Since
1934, the field has remained the most
engineering methods to return it to optimum productivity. important producer in northern Iraq,
with over 8.9 Bbo proven remaining oil
MUNIM AL-RAWI, Ph.D., Carta Design Ltd.
reserves in 2007. After eight decades
The Kirkuk oilfield is partly located in (NOC), a state-owned company, replaced in operation, and many reservoir
the Kirkuk Governorate in north-eastern INOC in the operation of the Kirkuk problems, Kirkuk still produces 0.5
Iraq and partly in the Erbil Governorate oilfield (see GEO ExPro Vol. 6 No. 2 MMbopd.
in Kurdistan Iraq. It was discovered for a fuller history of the discovery of In the subsurface, Kirkuk is an
by the Turkish Petroleum Company at the field). On 11 July 2014 Kurdistan anticlinal structure trending north-
Baba Gurgur in 1927 and was brought Regional Government (KRG) forces west to south-east, 100 km long and
into production by the Iraq Petroleum seized control of the field, and it is 4 km wide at the original oil/water
Company (IPC) in 1934, which produced reportedly pumping 120 Mbopd from contact level in the Tertiary Reservoir.
it until full nationalisation in 1972. Kirkuk and the nearby Bai Hassan field Structurally, it is composed of three
From then it was operated by the Iraqi via the KRG export pipeline, which runs domes, referred to, from south-east
National Oil Company (INOC) until to the Turkish port of Ceyhan on the Sea. to north-west, as Baba, Avanah and
1989 when the North Oil Company This giant field, managed by different Khurmala, which are separated by

Eternal fires (burning gas seeps on the Baba Dome at Kirkuk) with Kirkuk production
facilities in the background (photo taken on a field visit by BP in 1988).
Photo courtesy Robin Cleverly/BP

70 GEOExPro December 2014


Iraq’s oil and gas infrastructure.
Platts

Aqrawi et al 2010, reproduced with permission of Scientific Press


these reservoirs have been kept for
pressure observation and were not
commercially produced.

Pushing Production Causes Problems


saddles, namely Amshe and Dibega. 500 psi undersaturated at the original As of January 1989, the original oil in
At the surface, however, it is a simple reservoir pressure of 1,100 psi. Sulphur place reserves of the Kirkuk oilfield
folded structure due to the Miocene salt content is 1.5–4%. The reservoir is were estimated at 38,045 MMbo,
flowage of the Lower Fars Formation. underlain by a field-wide aquifer. proven remaining oil reserves were
The other two reservoirs in 10,238 MMbo, and the cumulative oil
Reservoir Geology the Kirkuk oilfield are the Upper production to end 1988 was 12,017
The Eocene-Oligocene Kirkuk Tertiary Cretaceous Shiranish Formation MMbo. Proven remaining oil reserves
Reservoir is 365m (1,200 ft) thick and the Middle Cretaceous Upper were reported as of January 2007 to
and consists of a series of extensively Qamchuqa Formation. They are be 8,973 MMbo, including estimated
fractured limestones, some porcelaneous fractured carbonates, contain oil and reserves for Khurmala Dome of 2,800
and some dolomitised. These gas, and are likely in communication MMbo in place with 1,000 MMbo
limestones were deposited in a variety with the first pay reservoirs. However, recoverable.
of environments, including back-reef/
Schematic cross-section of Kirkuk Baba Dome; not to scale. Modified after Dunnington, 1958, Figure 17.
lagoonal, fore-reef, and basinal, and have
a wide range of porosity and permeability
properties. The Oligocene Bajawan,
Baba, Tarjil, and Palani Formations,
which belong to the Kirkuk Group, are
producing in Baba Dome, while the
Eocene below, namely the Avanah and
Jaddala Formations, are producing in the
Avanah and Khurmala Domes.
The oil is contained both in an
extensive, extremely permeable but
low-capacity fracture system and in
a low-permeability but high-capacity,
matrix-pore system. The porosity and
permeability of the carbonates of the
Kirkuk Group are usually good; some
wells within the Baba Dome produced
100,000 bopd. The porosity ranges from
15 to 25% (averaging about 22%) and the
average permeability is about 100 mD.
The API gravity of oil ranges from 18° to
36° (average 30°) and was approximately

GEOExPro December 2014 71


Reservoir Management

Production at Kirkuk started in 1934


from the Kirkuk Tertiary Reservoir
in the Baba and Avanah Domes only,
continuing at a low rate for the first
twenty years of production. From 1951,
however, there was a rapid five-fold
increase in production over just three
years. The reservoir is characterised
by a density of fractures in the entire
structure, but particularly in the
structurally higher zones. This quick
increase in production resulted in a rapid
decline in reservoir pressure, and caused
the creation of secondary gas caps in
both Baba and Avanah Domes, since the
water drive force is weak, as well as a
small rise in the oil/water contact.
To maintain reservoir pressure, it
was decided to use water injection,
with, as a temporary measure until the Schematic longitudinal cross-section of Kirkuk field. Modified after Dunnington, 1958, Figure 18.
start of water injection, gas from the
nearby Bai Hassan being injected into in a rapid or instantaneous manner, reservoir, which affects the oil
Kirkuk from 1957 to 1961; 200 Bcfg was and also by imbibition, where water reserves volume and recovery factor
injected in total. replaces oil in small pores, in a slow calculations of the original oil in place
Water injection started in 1961 process that requires time. Assessment in rock matrix and fractures. Current
at Amshe Saddle. Despite the wide of the imbibition process and the rate estimates are that 95% of oil is in the
distribution of injected water in the of oil recovery and remaining oil in the matrix and 5% is in fractures.
Baba and Avanah Domes, it did not flooded areas of the reservoir are the 2. Reservoir water salinity is
reach the south-east part of Baba subject of ongoing reservoir engineering low, dropping to 90,000 ppm.
Dome or the north-west part of Avanah and laboratory studies. Measurements taken before the
Dome in equal amounts, which caused A continuous increase in production start of water injection indicate that
a rise of the oil/water contact in the rates requires the drilling of wells to it has changed in the three domes,
producing regions of Baba and Avanah replace those flooded by water because which makes it difficult to calculate
Domes, which in turn had a domal of the rising oil/water contact. The total the original water saturation. Water
effect on the contact. In 1970 water numbers of wells drilled rose from 162 injection has altered the salinity in
injection commenced in the Tarjil area in 1964 to 230 by 1989. the fracture areas.
(south-east of Baba Dome), followed in 3. Mud loss during well drilling in
1978 by water injection in north-west Unique Reservoir Needs Help the highly fractured areas of the
Avanah Dome. An analysis of this outstanding Kirkuk reservoir makes it difficult to
It is important to note that Tertiary Reservoir reveals a number of measure reservoir resistivity and
production of oil from the Kirkuk factors affecting reservoir behaviour. water saturation.
Tertiary Reservoir is done by the These include: 4. Due to the variation in the reservoir
removal of oil from fractures, vugs and 1. Calculating the actual percentage rock characteristics and fractures, it
large pores through water swapping of fractures and vugs within the is also difficult to precisely simulate
reservoir behaviour.
Estimated reserves and production for the Kirkuk field. 5. There are difficulties in evaluating
Kirkuk Cretaceous the level of water saturation in
Reservoirs Tertiary Shiranish flooded areas, and in estimating how
(MMbo) & Qamchuqa
(MMbo) much oil remains in the reservoir.
Original OIP 37,285 760 6. Declining crude oil qualities and
Recovery Factor % 60 36 increased ‘water cut’ (damaging
intrusions of water into oil
Proven Recoverable 2P Reserves 22,255 275
reservoirs) were probably the result
Cumulative Production, End 1988 12,017 0
of over pumping. Production from
Proven Remaining Reserves, End 1988 10,238 275 Kirkuk reached as high as 680,000
Cumulative Production, End 2006 1,541 0 bpd, well above the field’s estimated
Remaining Reserves, End 2006 8,698 275 optimal production rate of 250,000
Total Kirkuk Remaining Reserves, End 2006 8,973 bpd. Iraq attempted to sell as much

72 GEOExPro December 2014


RTKB
oil as possible in the months leading of intent to help revive this ageing Age DEPTH
Porosity - % Log Permeability - md
FT(M) 30 20 10 0 0 50 100 150
up to the March/April 2003 war. oilfield through a better understanding Top 2,334' (711)
7. In addition, some analysts believe of the state of the Kirkuk reservoir.

Bajawan
that poor reservoir management For BP, the agreement could be a first
practices during the first Gulf war step toward clinching a longer-term 2,500'
between 1981 and 1988, including development contract. Will the current (762)

Baba with Tarjil fingers


the reinjection into the periphery political status in Iraq allow Kirkuk to
of the Baba Dome of excess fuel be productive again?

O LIGOCENE
oil (as much as 1.5 Bbo by one References:
estimate), refinery residue and
Adnan A. M. Aqrawi, Jeremy Goff,
gas-stripped oil, may have seriously, Andrew D. Horbury and Fadhil N.
even permanently, damaged Sadooni (2010), Petroleum Geology of
the Kirkuk Tertiary producing Iraq, 424p, hard covers. ISBN 978 0
reservoir. Among other problems, 901360 36 8. Scientific Press Ltd, PO Box 3,000'

fuel oil reinjection has increased oil 21, Beaconsfield, Bucks, HP9 1NS, UK. (914)

Palani
viscosity at Kirkuk, making it more Dunnington, H.V., 1958. Generation,
migration, accumulation, and dissipation
difficult and expensive to get the oil
of oil in northern Iraq. In: Weeks, L.G.
out of the ground. (ed), Habitat of Oil, American Association
of Petroleum Geologists, 1194-1251.

MIDDLE - UPPER
The unique Kirkuk Tertiary Reservoir Reprinted in GeoArabia, Vol. 10, No. 2,

Jaddala
EOCENE
has suffered a great deal from different 2005, p. 39-84.. Gulf Petrolink, Bahrain.
management practices and will require INOC, 1987. Country Paper, Republic
imaginative reservoir engineering of Iraq, in Arabic, in OAPEC, 1987. 3,500'
Addendum of papers and case studies (1,069)
methods to put it back into good Base 3,551' (1,082)
presented at the seminar on petroleum

EOCENE
productive order. Some reappraisal reservoirs. Kuwait, 11-14 October 1987.

Aaliji
has already been undertaken and will
Platts, 2014. Kurdish forces move to
require full implementation on the protect Iraq’s Kirkuk oil hub. June 12, T.D. 3,718' (1,133)

ground to achieve results. 2014. http://blogs.platts.com/2014/06/12/ Kirkuk Tertiary Reservoir characteristics, Well K-115.
In September 2013, BP signed a letter iraq-oil-gas-map/ Modified after INOC, 1987.

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GEOExPro December 2014 73


Industry Issues

Decarbonising Scientists tells us that any rise


in global temperatures needs
to be limited to less than two

Energy
degrees over pre-industrial times.
Displacing coal is the primary focus. Does gas
provide a useful stepping stone to a decarbonised future?

NIKKI JONES
The level of carbon dioxide in the atmosphere last year low efficiency of most coal-fired plants – a global average of
surged at its fastest rate in 30 years according to the UN 33% – has helped focus the attention of governments.
Meteorological Organisation, possibly indicating that the However, according to the IEA, in 2014 coal was still
world’s oceans and forests are no longer able to store the gas the world’s principal fuel for the generation of electrical
as they have done in the past. Although the world is aiming power, a total of 1,700 gigawatts, 41% of global consumption.
at emission levels of 1 to 1.5 tons per head per year, we are This has been fuelled by low prices as exports from the US
currently close to 40bn tons annually across the globe and on have surged, following the shale boom, and there has been
track for a four degree warming by the end of the century, a increased production from Australia, Indonesia, Colombia
temperature that will change both the human and physical and South Africa. China’s growth has fuelled this ramping
geography of the planet. up: the country now accounts for almost half of global
Governments’ options are varied but unpleasant – coal consumption, a marked increase on its 25% share two
stopping deforestation, discouraging livestock farming (to decades ago.
curb methane production), reducing international travel There has been a fair amount of finger-pointing at China
and trade, cutting consumption generally. Faced with such but, in fact, neither the US nor Europe have managed to wean
unpopular choices governments are looking for substitutes themselves off coal. In Europe coal consumption began rising
to the fossil fuels that are the source of 87% of global human again in 2009, fuelled by the failure of the carbon pricing
carbon dioxide emissions. Power production is the primary mechanism, as well as Germany’s closure of nuclear plants.
focus given the global move towards the electrification of US consumption has been declining, but the Environment
heat and transport. Protection Agency still anticipates coal will produce 30% of
Coal-fired power generation is seen as the primary culprit as, America’s power in 2030. Creeping up on the inside, India
at the power plant, it produces roughly twice the emissions of accounted for 21% of global growth in 2013 and is set to
gas – as well as health damaging, smog-creating pollution. The overtake China as the world’s biggest coal importer.

Tiananmen Square enveloped by heavy fog and haze in January 2013.


Many of China’s cities face serious air pollution and poor air quality.
axz65/123RF.com

74 GEOExPro December 2014


Gas as a Substitute

BP statistical Review of World Energy 2014


1%
The industry is pushing gas as a 7% 1% 0%

substitute, claiming that it is far 4%


Oil
cleaner than coal and can have the 33%
added advantage of relatively speedy Natural Gas
reaction to fluctuations in grid demand. Coal
Instability in grids has been heightened 30%
Nuclear Energy
by the switch towards intermittent
renewables, now generating 22% of the Hydroelectric
world’s electricity. In recent months 24% Wind
Japan has announced that it is closing its Geothermal and Biomass
grid to large-scale renewable generation
Solar
because of this problem.
Backing up the argument for gas,
Global energy consumption 2013.
manufacturers are now show-casing
larger and more efficient turbines,

BP statistical Review of World Energy 2014


4,500
capable of ramping up to full power
4,000
within 30 minutes and with relatively
low turn-down levels (40%). Total World
Million tonnes oil equivalent

3,500
US
However, both the industry and
3,000 EU
governments are asking searching
FSU
questions, not only about the 2,500
South Africa
economics of a shift to gas but also China
2,000
security of supply and the actual claims India
of comparative cleanliness. 1,500

The argument for gas lies in the fact 1,000


that it is twice as clean as coal at the
power plant. However, there is real 500

difficulty in comparing the two fuels 0


when the whole production-fuel cycle 1965 1970 1975 1980 1985 1990 1995 2000 2005 20102013

is factored in, since each coal and gas


Coal consumption in selected countries since 1965.
field has its own production methods,
processing requirements and different distances from Emissions in Gas Production
markets. Emission levels will depend greatly on the CO 2 Emissions associated with conventional production (still
concentration in the raw gas, which can be as high as 14% the major source of gas) have also not been factored in to
mol, and processing and transport add substantially to the the ‘cleanliness’ argument. They depend on the energy used
equation. LNG requires the super-cooling of gas to -162°C, in dehydrating the gas, sending it to a treatment plant,
ocean shipping in cryogenic sea vessels, regasification guaranteeing the energy supply to the facilities and enhancing
and pipeline distribution. There are wide variations in production with water injection, plus the characteristics of the
thermal efficiencies at liquefication and regasification stages gas produced. Analysts Altran Italia calculate that greenhouse
dependent on the type of gas turbine used and the choice gas emissions at this stage are typically between 0.95 and 1.5
of process when reheating, and 85% of current carriers kg/m mBtu, 15% of which are fugitive emissions and 5% flaring.
are fuelled by low efficiency (approximately 27%) heavy Emissions for shale gas, tight gas and coalbed methane are
fuel il and boil-off gas. One estimate is that LNG, usually far higher than conventional gas sources. According to the
transported over distances of 3,000 km or more, consumes, IEA, this is partly because of the need for more wells and more
on average, 25% of the energy transported. hydraulic fracturing in order to maintain output – usually
Gas pipeline transmission has, to an extent, been below the powered by diesel motors – and partly because of more flaring
radar, but a recent European Commission study found that over and venting during well completion. During the early flow-back
long distances (~7,500 km) pipeline greenhouse gas emissions period, when there is more fracking fluid than hydrocarbons,
are equal to those from LNG transport. These emissions are companies do not always separate and process the gas: at this
associated with the energy required to overcome frictional stage it is mostly methane with a small fraction of volatile
losses and also to maintain the pressure in the line. organic compounds. These emission levels are compounded by
Local leakages in distribution networks – almost 100% fugitive emissions plus incidents of ruptured equipment. There
methane – are also a significant factor. In July this year is also a need for local transportation, and there are emissions
the EPA reported that fugitive emissions from distribution associated with water supply and waste water management.
pipelines in 2012 accounted for more than 13 million metric
tons of carbon dioxide equivalent emissions, 10% of the total Is Gas the Answer?
coming from the US natural gas industry. Despite these considerations, governments appear to have been

GEOExPro December 2014 75


in CO2 emissions in non-OECD countries was oīset, but only partly, by a 1.2% reducƟon in
emissions in OECD countries (Figure 1.8).
Industry Issues
Figure 1.8 ‫ ٲ‬CO2 emissions trends in 2012
Left: CO2 emissions trends in 2013.
400 32% Change from
Mt
Below: CO2 emissions per unit of
2011 electricity generation in China.
300 24%
Share of world While China made the largest
200 16% emissions contribution to the global increase
(right axis) in CO2 emissions in 2012, this level of
100 8% growth is one of the smallest in the
past decade, reflecting China’s efforts
0 decarbonisaƟon eīorts in the power0% sector resulted in a indecade
installing low carbon generating
long improvement of its
capacity.
-100 emissions per unit of generaƟon (Figure 1.9). Energy intensity improved by 3.8%, in line
with the 12th Five-zear Plan target, indicaƟng progress in diversifying the economy and in
-200
energy eĸciency.
-300
United European Other India Middle Japan Other China
States Union OECD Figure CO2 emissions per unit of electricity generation in China
East 1.9 ‫ ٲ‬non-OECD

IEA
900 to the global increase, with its emissions rising
thile China made the largest contribuƟon
g CO2/kWh

by 300 Mt, or 3.8%, this level of growth is one of the smallest in the past decade and
less than half of the emissions increase in 2011, reŇecƟng China͛s eīorts in installing low-
850
carbon generaƟng capacity and achieving improvements in energy intensity. Coal demand
grew by 2.4%, most of it to supply industrial demand. thile electricity generaƟon in China
increased 5.2%, coal input to power generaƟon
800 grew by only 1.2%. Most of the addiƟonal
demand was met by hydro, with 18 Gt of capacity addiƟons coming online in 2012,
complemented by a wet year in 2012. Increased wind and solar also played a role. Hydro
capacity at the end of 2012 was 249 Gt,750 on track to meet the 2015 target of 290 Gt. The
© OECD/IEA, 2013

5.ഩ Global emissions include international bunkers, which are not reflected in regional and country figures.
700
2000 2003 2006 2009 2012

IEA
26 World Energy Outlook | Special Report
In the Middle East, energy-related CO2 emissions increased by around 55 Mt CO2, or 3.2%,
swayed towards the environmental benefits on theofback
gas of
– though construction
rising gas consumpƟon and 13generaƟon
in power more have and
filedthe
for persistence
approval, plus
ofthere are
subsidised
they are more hesitant when considering the economics proposals for another 13 plants on the west coast
energy consumpƟon. India͛s emissions grew by some 45 Mt CO2, or 2.5%, mainly driven by of Canada.
and the geo-strategic
013-042 Chapter1_Climate risks. Energy security has risen on the
Excerpt.indd 26 However, the argument of energy
30/05/13security from the US falters
coal. This Įgure was much lower than the previous year due 12:24
to lower GDP growth and
political agenda: in particular, the Ukrainian crisis has focused if the US gas glut is not assured for decades ahead: even before
issues related to domesƟc coal
European minds on the continent’s dependence on Russia, since
producƟon.
the current oil price collapse, many were arguing that simply
approximately 30% of its gas comes from its neighbour.
In OECD countries, the trends increasing
are very the diīerent.
concentration CO2ofemissions
fracking wells was unsustainable
declined in the United
If Europe is to pursue a new dash-for-gas, there are few and that production would stagnate in the early 2020s. Current
States year-on-year in 2012 by 200 Mt, or -3.8%, around half as a result of the ongoing
economic, secure, politically acceptable sources of growth prices have only exacerbated those fears. Nor is US shale gas a
switching from coal to natural gas in power generaƟon (Box 1.2). Other factors contributed
on offer. The most likely are Qatar, which already provides cheap solution when investments into liquefication, transport
10% of Europe’s gas, and the SoutherntoGas theCorridor
decline: through
increased electricity generaƟon
and regasification arefrom
addednon-hydro renewables,
to the equation. In June lower demand
this year the
for transport
Azerbaijan, Georgia and Turkey, which is expected to supply fuels and mildIEA warned that the high capital costs – an expected $735bn byCO2
winter temperatures reduced the demand for heaƟng.
emissions
20% of Europe’s needs by late 2018. Neither offerinsecurity
the United of States have
2035 now
– are declined
likely four ofthe
to constrain the
LNGlastindustry.
Įve years, 2010 being the
supply and the Caspian gas solution still requires
excepƟon another
(Figure 1.10). Their 2012Is local unconventional
level was last seen exploration
in mid-1990s. the answer? Germany
$28bn just to bring gas to the Georgian-Turkish border. has, this year, relaxed its opposition to fracking and the UK
Increased gas from Russia is unlikelyCO 2 emissions
given the current in the European Union inhas
government 2012
come were lower
off the year-on-year
fence and given fullby support
some 50 Mt,
or 1.4%,which
political climate. The South Stream pipeline, but trends
would diīer markedly from China
to the industry. country hastobeencountry.
issuing tith electricity
fracking licencesdemand
for
have brought Russian gas to Europe via Bulgaria,
declining byhas0.3% been put inseveral
in 2012, line with years. But commercial
a contracƟon viability remains
in the economy, unclear
cheap coal and and
carbon
on hold, and sanctions against Russiaprices
have effectively
meant that halted
many largegiven the generally
emiƩers higher
turned partly toenvironmental
coal to power their regulations and Coal
economies.
Russian shale and Arctic production. political objections in Europe, it seems unlikely that shale
demand grew 2.8%, compared with an average 1.3% decline over the past decade. zet data
China, like Europe, is heavily dependent on Russia, gas will make a serious, near-term impact on supply or price.
show a 0.6% decline in power sector emissions that are capped under the EU ETS, and a
though this is less politically troublesome: approximately
40% of China’s gas comes from central larger,
Asia5.8% fall in
and this emissions
year the from
The industry sectors
Opportunity Cost such as cement, glass and steel. Non-
hydro renewables
government finally signed a $400bn deal with Gazprom. generaƟon It appears that there isthanks
increased by 18%, no clear towin
support
for gaspolicies. Emissions in
on the three
© OECD/IEA, 2013

At first glance the US gas glut offersEurope͛s


a solution.biggest economy,
Producers are Germany,
key criteria: increased by 17 of
cost, security Mtsupply
CO2 oror2.2%
even(UBA, 2013).Its
cleanliness. Driven
begging to export as production in thebyMarcellus
low coalbasinand lowaloneCOis2 prices,
utility is as a back-up
consumpƟon for in
of coal thepower
intermittency
generaƟon of renewables
increased by 6%.
up 800% over the last five years, and in September the local spot and some governments in Europe are now pursuing capacity
price plunged to a seemingly unviable low of $1.5686 per mBtu. mechanism strategies, paying producers for potential rather
Three LNG export projects have got the go-ahead to begin than actual output.
Chapter 1 | Climate and energy trends 27

76 GEOExPro December 2014


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GEOExPro December 2014 77


Industry Issues

However, each dollar invested in gas locks the world


further into a future of burning hydrocarbons that scientists
tell us we cannot afford. Each dollar invested in gas is a
dollar that isn’t invested in more and diversified renewables,
or the storage and transmissions research needed to
overcome the intermittency problems. It has been likened
to dieting on fat-free biscuits – i.e. not addressing the
fundamental problem.
Although green investment is on the rise again after a few
years of decline, mainly in China and Japan, the amounts spent
– $56bn from China last year, $48bn in Europe and $36bn in
the US – continue to be dwarfed by the $600bn given to the
fossil fuel industry in subsidies. Now that many renewable
sources appear to have achieved cost competitiveness with
gas-fired power, scientists and environmentalists are arguing delivered a target of 40% cuts to greenhouse gas emissions
this investment needs to be diverted into energy conservation by 2030 (from 1990 levels) but following pressure from east
(which, according to the IEA, has already delivered a 5% European states that are heavily coal dependent, countries
cut in consumption across 18 OECD countries 2001–2011), do not have targets for renewable generation. In the US a
interconnectors and inter-country markets. For Europe, that Clean Power Plan is targeting coal-fired power plants, but
means geothermal from Iceland, solar from north Africa, wind coal is still expected to supply 30% of the country’s needs
from Spain; China and the US have similar opportunities with in 2030. A new wave of hydroelectric stations mean that no
fewer political complications. new coal fired plants will be built in China’s industrialised
east, but the country will remain heavily dependent on coal
The Risks for the foreseeable future. The greatest threat to reducing
Without really clear government direction, the risk is coal consumption is the current glut and low price, not
that coal will continue to win out on cost and security- government decisiveness. It appears that governments are
of-supply concerns. In Europe a late October summit has simply side-stepping the four degree problem.

A coal-fired power plant adding its emissions to the atmosphere. Unfortunately carbon capture and storage is not the hoped-for solution. This year
SaskPower in Canada launched the world’s first large project but the problem of CO2 leakage has not been overcome and the technology doubles capital
outlays and reduces the amount of electricity to sell.
Kodym/Dreamstime.com

78 GEOExPro December 2014


3D Seismic and
In 2013 Dolphin Geophysical’s MV Polar Duchess acquired a multi-client 3D seismic survey in the Location
of Dolphin
UtStord area of the Norwegian North Sea, covering 5,080 km2. Also in 2013, Dolphin Geophysical’s Geophysical’s
UtStord
MV Artemis Atlantic acquired a multi-client 2D SHarp Broadband survey covering 1,050 km in total, 3D seismic

SHarp Broadband 2D
and SHarp
extending across both UK and Norwegian waters over the UtStord and South Viking Graben Broadband
2D lines in
areas. The 3D seismic survey extends over three main structural elements, namely the Utsira relation to
key structural
High, the southern part of the Stord Basin, and the northern part of the Ling Depression. The 2D elements and

UtStord and South Viking Graben


discoveries.
SHarp Broadband seismic lines tie to key wells in the 3D area, extend across the Johan Sverdrup
region, and link with a series of discoveries extending across both the UK and Norwegian sectors
of the North Sea. The east–west regional coverage extends from
3D seismic and SHarp Broadband 2D from the UtStord and South the Brae area fields, which were discovered in the 1970s and started
Viking Graben areas of the UK-Norwegian North Sea show improved production in the 1980s, to the relatively recently discovered fields,
imaging throughout the entire geological section. such as Johan Sverdrup, situated in the Utsira High area.

UtStord

South Viking Graben

Johan Sverdrup

80 GEOExPro December 2014 GEOExPro December 2014 82


Improved Imaging Throughout
NICOLAS HAND and DAVID JACKSON, Dolphin Geophysical
Examples demonstrate the tectonic styles and potential of the UtStord and
South Viking Graben areas.
The Utsira High was initally explored by 1.500 –

ExxonMobil, who were awarded the very –


East of the Balder Field
first exploration licences on the Norwegian –

Continental Shelf in 1965. The first oil from the – Ringhorne East Field

Norwegian Continental Shelf was produced from

well 25/11-1, and the reservoir was of Tertiary

Age. In more recent times the story of the major –
Johan Sverdrup discovery has made all the –
headlines. The oil and gas associated with the –
Johan Sverdrup area is reservoired in strata of Top Chalk – Intra-Palaeocene Isochron
2.000 –
Triassic to Mid-Upper Jurassic age. –

Geological Overview –

To the east of the Utsira High lies the Stord –

Basin, which was formed by multiple phases Figure 1: A sample of Dolphin UtStord 3D at the Top Chalk-Palaeocene level
of extension which began in the Triassic, and
continued with further pulses of extension during the overprinted by later Triassic-Jurassic rifting. The
Middle and Upper Jurassic. The faults are steeply dipping structuring in the area is a result of the interaction of
and planar in the shallower parts of the basin, but exhibit multiple rifting events, salt withdrawal and subsidence.
clear listric geometries at depth. Some of the faults To show the different tectonic styles across the area
have been reactivated in the Early Tertiary, which led to a series of selected seismic lines are displayed and
structural inversion geometries, such as hanging-wall discussed in this article.
folds, following the trends of these reactivated faults. Figure 1 shows a sample of the Dolphin Geophysical
The Ling Depression lies to the south and east of 3D seismic at the Top Chalk-Palaeocene level. The
the Utsira High, and the tectonics in this area indicate isochron of the Top Chalk-Intra-Palaeocene is
that rifting in the Carboniferous(?)-Permian has been highlighted in yellow. The isochron is almost twice

Figure 2: East–west regional line 2D SHarp Broadband.

0.500 –

1.000 –
Johan Sverdrup
Ragnarrock
– Edward Grieg
Extension

1.500 –

– Inverted hanging-wall

2.000 –

2.500 –


Utsira High
3.000 –
Stord Basin

GEOExPro December 2014 83


the thickness where the seismic crosses the –

Ringhorne East discovery, reflecting the –



differential compaction associated with the –

Palaeocene where sand, which forms the reservoir, 1.500 –



is present and where it is absent. The good –
imaging of the Top Chalk and Early Palaeocene – Upper Cretaceous

means that channel geometries can be quickly –



highlighted by combining auto-tracked isochrons –
Lower Cretaceous

and draped amplitudes throughout the whole 3D –


Middle and Upper Jurassic ?

volume. – Triassic

Figure 2 shows a sample of the UtStord 2D 2.000 –
SHarp Broadband, which extends from the Utsira –

High and part way across the Stord Basin. The –



left-hand side of the section crosses through the –

Edward Grieg extension, the Ragnarrock, and the – Palaeozoic


Johan Sverdrup fields. Even at the regional scale –
the data clarity allows detailed fault-mapping at all –

levels within the section. The role of Early Tertiary –


2.500 –
tectonics and associated structural inversion is –
clearly indicated by the inverted hanging-wall –

geometries across the Stord Basin. –

Figure 3 shows an enlarged view of the fault Figure 3: East–West regional line 2D SHarp Broadband : enlarged view of the fault
linkage underlying the Johan Sverdrup field.
linkage underlying the Johan Sverdrup field, and
also seismic geometries (in green) of the perceived Mid to within the main section. In general, the data is coherent,
Upper Jurassic part of the section, which form the main appropriately scaled and clean. Another main objective of
hydrocarbon-bearing strata in the area. the processing is to apply an AVO-friendly receiver side
An east–west crossline from the 3D multi-client deghosting (also known commercially as SHarp deghosting),
seismic is shown in Figure 4, with the Mid-Upper Jurassic run pre-stack. We believe that this has been achieved
intervals highlighted in green. Inset is a section of the Base alongside all benefits of SHarp deghosting, which includes
Cretaceous TWT structure map, which shows fault-bounded greater bandwidth recovery and sharper, deghosted images of
closures (highlighted red) at the Base Cretaceous level. These the final stacked lines.
are significant undrilled structures in the Utsira High area For further information please contact:
updip from the Stord Basin and Ling Depression. Ian T. Edwards, Vice President, Global Multi-Client Surveys
& New Ventures. Email [email protected].
Processing Challenges Mobile: +44 (0)7920 713587
The main processing
Figure 4: 3D seismic line showing deep fault linkage and the M-U Jurassic Interval with inset of TWT structure at Base Cretaceous
challenge with
both the 2D and 3D
data was the quite –

apparent presence of
multiple content. Two 1.000 –
passes of 2D SRME

and Radon Demultiple
generally worked well Base Cretaceous
2.000 –
within these sections, Mid to Upper Jurassic
and there was little –
evidence of residual
water bottom or 3.000 –
surface multiples.
The aim of the –
processing first of all
was to improve on 4.000 –

the fault definition, Base Cretaceous


especially in areas –

of inverted hanging-
5.000 –
walls, and to increase
M-U Jurassic and Triassic
signal to noise ratio
– leads indicated by structural
plus resolution closures at Base Cretaceous ?

84 GEOExPro December 2014


Industry Issues

Safeguarding Your
Petrotechnical
Professionals
Oiling the machine with a new contract between
management and the petrotechnical professional.
HENRY EDMUNDSON, R9 Energy Consultants, and DAVID BAMFORD, Petromall Ltd
The continued search for oil and goals lurk important differences. In requires some unusual strategies.
gas relies in equal measure on companies of any reasonable size, Let’s start with two management
good management and superior managements must ensure that their imperatives, and then examine the details.
petrotechnical expertise. The key, machine to find and extract oil and gas Firstly, in order to keep pace,
though, is ensuring that the two worlds is properly assembled, well lubricated, managers need the brightest and best
mesh smoothly and create a working and working to maximum efficiency. informed technical experts possible. This
environment that motivates both Standards and discipline are important; means ensuring technical employees
parties to succeed. This is more difficult within well-defined limits employees are have the right environment to develop
to achieve than might be thought, for a expected to conform. new knowledge and skills, particularly
number of factors. The petrotechnical expert, however, in emerging technology areas – and not
First is the scarcity of top-quality marches to a different tune, motivated necessarily only junior employees. It also
petrotechnical professionals, covering by quite different criteria. When it means that experts need free and easy
everyone from geologists and comes to creativity and improving exchange of knowledge and experience
geophysicists to drilling and petroleum technical knowledge, petrotechnical both from within and outside the
engineers. This used to be blamed on professionals prefer less rather company firewall.
the famous crew change, resulting from than more management, or even no The second imperative is that
the paucity of recruits during the oil management. The ideal state is being management needs to incentivise
price crash of the 1980s. But things self-directed; satisfaction comes from their technical experts so they are not
have now changed. The last few years solving tough technical problems. tempted to leave for more enticing-
have seen abundant recruiting by both When it comes to their career, peer looking employers. This can be achieved
operators and the service industry, recognition and involvement is as through a smorgasbord of options,
and the crew-change problem has important as management input. In including a total compensation package,
morphed into the different challenge short, and at risk of working an analogy a technical promotion system or
of accelerating the development of beyond breaking point, the square ladder, and satisfying the development
thousands of young professionals to peg that is the technical expert may needs mentioned above. Above all,
fill the still-prevalent mid-career gap. not always fit the round holes of the management must provide strong
The result is an industry obsessed with smoothly running business machine. leadership and ensure a coherent and
accelerating employee development. How to manage this less-than-exact fit attractive company culture.
Second is the market force generated
The crew-change challenge, with a peak population of older petrotechnicals as recently as 2009,
by the continued lack of mid-career
had morphed by 2013 into the challenge of accelerating professional development due to the higher
petrotechnical professionals. These lucky proportion of younger petrotechnicals.
individuals command a price in excess
of their equivalent managers, and so do 2013
even the young aspirants joining their
ranks, as there remains an extraordinary
lack of competent geoscientists, drilling 2009
and petroleum engineers. And they know
it. Never has it been so easy to jump ship, Petrotechnical
hoping for a better future. Professional
Third is the meeting point between Population
management and the petrotechnical
expert. Both obviously aspire to business
success, but beneath broad corporate Petrotechnical Professional Age

86 GEOExPro December 2014


Employee Development What management can insist on, though, is focusing
Employee development is easy to wish for, harder to put into training and development on the job at hand, or at least what
practice. There are several pitfalls. One is the traditional the employee is likely to be doing in the near future. Otherwise,
thinking that development is going on a week-long training training budgets quickly get eaten up providing employees
course once a year. Courses have their with nice-to-know stuff rather than
place, but are only one component need-to-know essentials. The challenge
of a development programme. The Dos is deciding what is truly necessary for
other components include self-study • Focus training on task at hand. the business. The oft-quoted T-model
– formerly done from books but now • Emphasise total package. of training and development is a useful
the internet – on-the-job training, • Partner with petrotechnicals on metaphor. The vertical of the T represents
technical ladder.
just like apprentices used to do, and in-depth, specialist expertise, while the
learning from colleagues. Each training • Devolve large chunks of knowledge horizontal represents broad, contextual
management to petrotechnicals.
mode has its memory retention factor, understanding. How a company trains
and research shows that the class- Don’ts its employees depends very much on the
room setting, although key for getting • Cut training to shore-up bottom line. importance attached to each at various
basics across, does not feature highly, • Let competency-driven training get stages of the technical expert’s career.
compared with self-study and repetitive too big. Companies wishing to realise im­
hands-on practical application. • Assume majority control of the medi­ate earning power from young
Whatever the mix, there are two technical ladder. employ­ees will focus on the vertical,
management temptations that must be • Attempt to manage tacit knowledge allowing the horizontal to develop
discouraged. The first is cutting employee inside the corporation. once the employee matures. Other
training whenever business looks bleak. Guidelines for management in the new contract. companies prefer more contextual
It is the easiest thing to cut since it never develop­ment before forcing the vertical.
impacts the short-term bottom line, but the long-term is of It is a matter of strategy, but it needs to be thought through.
course another matter. The second is believing that the return on There are concomitant choices for managing the
investment of training and development can be measured and employee’s development. The vertical is best managed through
monitored. Training and development, by definition, is a long- curriculum-based programmes, a linear progression of tasks
term commitment, and it is as hard to quantify the benefits as it and learnings to be ticked off. The horizontal is best managed
is to predict the success of R&D. using a competency management approach that maps selected

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Key themes: Conference organised by:

• Standing on the shoulders of giants – what we


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• Finding and developing more oil and gas in Early bird registration opens 1 December 2014
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• The future – what we still do not know and
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GEOExPro December 2014 87


Industry Issues

Broad contextual learning tech­nical knowledge divides into two no such worries. But given the number
main parts. One is explicit know­ledge of failed attempts in our industry, how
gained from company activities that to create a technical ladder that both
The T-model must be validated, catalogued and made management and the petrotechnical
Deep challenge: how to avail­able internally. The other is so-called professionals believe in? Two issues are
specialist strike the balance
tacit knowledge that is in the heads key: the ladder must be jointly owned
learning between in-depth
versus contextual of the tech­nical experts and only gets and managed by both management
development. shared in conversation, either in person and the technical community, and the
or through the intranet. Sharing tacit criteria for a technical promotion must
competencies and proficiencies to the knowledge is primarily a social activity. It address in equal part both business
job at hand. It risks becoming a large works best when there is no interference needs and technical requirements.
sledge hammer to crack the nut, but from manage­ment; they would simply Another basic is the well-known
the idea does offer flexibility and the get in the way. The challenge for most fact that many employees quit because
option to tailor training programmes companies is stretching the culture they can no longer tolerate their boss or
to large numbers of diverse employees. enough so employees can share their some other irritant close by. This is hard
However, competency management tacit knowledge with zero control. When for management to pick up on, but can
comes with a health warning. The it began, this type of activity was called be avoided through careful monitoring
systems quickly get heavy, they require com­munities of practice, but what it has of employee dissatisfaction. In the last
employee assessments, and are difficult become is just a typical social media analysis, the employee is as responsible
to maintain. The trick is to keep things activity like LinkedIn or Facebook, but for his or her career as the employer is.
simple. restricted to inside the company. Both make choices. The challenge is to
Another training imperative is create the best possible dialogue.
coaching, an idea handed us from ancient Incentivisation and Careers
times when young people learned from a Given the continued shortfall in A New Contract
master. It has been unambiguously proven experienced petrotechnical professionals, The oil and gas business continues on its
in recent studies that good coaching both operators and the service technology journey and petrotechnical
provides the most efficient catalyst for industry are fighting for talent. For the professionals provide the know-how.
accelerating employee learning (see page professionals, the money offered can be But they will remain in short supply for
92). However, most companies struggle tempting and occasionally extravagant, at least another decade. In the main,
with the same basic conundrums. The to the point where it is impossible for managers and technical professionals are
coaching role needs careful definition, any given company to compete on an cut from different cloth, so a company’s
otherwise it ends up meaning whatever ongoing basis. What companies can do, prerogative is to ensure that their
the participants decide. It is also expensive however, is to ensure that their employees respective talents compliment rather
because valuable time is required from understand the total remuneration than compromise each other. Contrary
senior technical experts, and in today’s package, comprising salary, bonus, to traditional practice, an awful lot
world there are simply not enough of these housing and travel benefits, pension and can be gained by an emphatic sharing
to go round. Some companies contract so on. The details are rarely understood of responsibility in key areas such as
retired experts to provide the role, but this by the employee or even enumerated by careers, training and development,
risks diluting company culture. Coaching the employer. But the analysis is worth it, knowledge management, and status
is worth every penny, but there are no because it is the only way the employee for the technical professional. For the
cook-book recipes. can make a long-term comparison with younger generation, especially, this is just
offers on hand. plain common sense. For companies that
Knowledge Management The best incentive for petrotechnical have adopted this philosophy, it has paid
Knowledge is essential for any business, professionals, though, is a good career. huge dividends.
not least for satisfying a technical Time and again, studies have shown
Typical reasons
expert’s ability to keep in touch with that employees jump ship because of for petrotechnicals
everything that’s new. Technical career dissatisfaction. This covers Lifestyle jumping ship.
knowledge in the business context can a multitude of sins, but a few
be divided between knowledge accessible basics cannot be argued with.
from public sources and knowledge that One is the need for Package
is retained inside the firewall because it status within the company.
is deemed proprietary or confidential. The company in which the
Accessing the former is a purely management line remains Career
mechanical task, revolutionised in the the only path to the top Satisfaction
last decade by the internet. risks losing its technical
Managing the latter is harder because talent. The company with a
the company itself must create the mech­ secure technical ladder tied to a well-
anisms. This management of internal defined compensation scale will have

88 GEOExPro December 2014


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SeaBird Exploration

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In partnership with Searcher In partnership with In partnership with Polarcus In partnership with Spec
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VAMPIRE 2D DUVALIA 2D ACHERON 2D JDZ, SAO TOME & PRINCIPE


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Technology Explained

DAS:
Distributed acoustic sensing is a breakthrough technology which
can provide real benefits to the hydraulic fracturing process.
Listening in
Downhole
CHRIS SHANNON
Fotech Solutions
The oil and gas industry has fact that engineers have almost no By using a fibre optic cable to
continuously relied heavily on cutting visibility of the fracturing process is detect acoustic vibrations, DAS allows
edge technology in order to maximise one of the main causes for concern. engineers to ‘visualise’ and record what
the efficiency of extracting natural As well as giving rise to safety and is going on downhole at every point
resources from deep underground. As a environmental issues, this lack of of the well in real time. By listening at
result, oil majors and operators always visibility is a major challenge for well every point in the well and monitoring
stand to benefit from new technological operators as it limits their ability to real-time downhole fluid flow during
breakthroughs. For example, in achieve optimal recovery from wells. fracturing operations, the method can
the 1990s, the key technology was provide data and interpretative tools that
distributed temperature sensing (DTS). Listening to the Well have not been possible until now. This
However, the breakthrough technology To date, even with tools such as DTS, gives well engineers greater clarity than
of this decade is distributed acoustic optimising the fracturing process ever before and allows them to focus
sensing (DAS). has only really been possible through time and effort on value-adding activity
Oil and gas exploration and labour-intensive and time-consuming that will ultimately increase recovery.
production continues to gain in trial and error testing. Clearly this is In the initial fracture stimulation
complexity as operators exploit not an ideal situation and has resulted phase DAS can give engineers a far
more unconventional sources and in significant uncertainty around key greater understanding of fracture
deploy more complicated techniques. fracturing completion and production propagation and geometry. This
Downhole procedures such as hydraulic performance indicators such as fracture includes building an understanding
fracturing mean the challenge propagation and geometry, interference of the fracture operation itself,
of gaining high quality real-time and deliverability. including ball seating, guns firing and
intelligence at every stage of the DAS provides a tool to deliver a new perforation, before gaining visibility of
extraction process is increasing. dimension of knowledge that can be the fracturing activity and propagation,
DAS technology can provide real gained from each stage of the fracturing potentially including the sensing of
benefits to the hydraulic fracturing process and which enhances the fluid flow in the active zone. This gives
process, which has been subject to production efficiency and safety of the the engineer a real time log of the
criticism in terms of safety and efficiency. procedure. fracturing operation to an accuracy
The process of drilling
down into the earth before The live DAS interface recording acoustic data from a downhole operation.
a high-pressure mixture of
water, sand and chemicals
is injected into the rock,
Fotech Solutions

allowing the gas to flow out


to the head of the well, has
been well established in
several countries including
the USA and Canada.
However, concerns remain,
with some high profile bans
in countries such as France
and Germany.
It is a method of
extraction that still suffers
from significant limitations
in terms of monitoring
and analysis of the drilling
operation. To this day, the

90 GEOExPro December 2014


of one to two metres, providing an Ultimately, this means that there is less whether the back flow contribution
indication of fracture success in the subsurface disturbance, less fracturing profile changes over time.
exposed formation. fluid being used and ultimately less
chance for issues to arise. A New Visibility
Optimising Hydraulic Fracturing By installing the fibre downhole, DAS In essence, DAS is a cost-effective solution
In a standard operation each potential provides an additional benefit as it can that allows the fracturing engineer to have
production zone in the well is be used not only to monitor the fracture vital information for the next well in the
separately exposed to the fracturing zones, but also the cement casing of same formation or zone and ultimately
fluid, conveyed at high pressure the wellbore itself. As a result, DAS can reduces uncertainty and allows an
through perforations, open sleeves detect possible leaks and ensure that gas optimised fracturing job to be delivered.
or other methods. Based on a lack of and fluid are not escaping from the well. While it is a combination of
information, in a multi-zone hydraulic Post-fracture, DAS monitors these benefits that enables DAS to
fracturing operation the assumption is the flow-back of the fluid from the enhance the efficiency and safety of
made that every section of each zone formation to the well. A comparison the fracturing process, it should not
will take the same volume of fluid of results from these two operations be seen as a replacement for existing
equally, as though the formation was enables a great amount to be deduced monitoring tools. Instead it adds a
homogeneously permeable. In fact, and understood about the fractured powerful new element to the tools at
great variation in relative permeabilities formation. By monitoring this early the disposal of engineers. For example,
can occur even across a single zone, production flow-back, engineers can when correlated with DTS and Surface
affecting future production rates. look at correlations between fracture Microseismic sensors, DAS creates a
DAS allows the engineer to treatment and flow-back quantities and multi-dimensional, real-time dynamic
determine, with documentary evidence, profile of well conditions. Combining
not only which areas are taking the DAS with other existing technologies in
fracture fluid in the first place, but this way can provide a comprehensive
also indicates how and where the monitoring solution, delivering
permeability has been improved over valuable insight into both completion
the period of the fracturing operation. and production issues. This will affect
This information can indicate potential real time decision-making, improve
variations in production and which overall efficiencies, increase safety
areas may underperform, increasing and ultimately reduce assumptions in
confidence in predicted production. fracturing operations.
The technique can also clearly identify
which zones have not successfully Chris Shannon has created a number
fractured, ensuring that engineers do of tech companies and led them to
not fracture the whole well repeatedly. successful acquisition, including the
Telecom division of Queensgate
Instead, repeat fracturing efforts can Instruments, Indigo Photonics and
be effectively targeted at only the Ezurio. He became CEO of Fotech
zones that were not initially successful. Solutions in 2011.

GEOExPro December 2014 91


GEO Education

Rejuvenating Shell is leveraging hundreds


of years of experience to

Opportunities search for new ideas in its


traditional heartlands.

SHELL GLOBAL EXPLORATION COMMUNICATIONS TEAM


“If we don’t invest in our people and the brainpower they limiting factor can be the need for an injection of new ideas
bring to the table, we won’t have a sustainable exploration and creative technical thinking rather than an absence of
business. And one way to invest in the brainpower is to more remaining potential,” Ceri continued.
effectively connect generations of explorers. We leverage “It is clear that technology is key but it needs to be
this connectivity in Shell Exploration by maximising our matched by innovative thinking – creativity, ingenuity and
corporate knowledge, using a concept called Rejuvenate perseverance – and this is obviously about people and their
Opportunity Now workshops or RONs,” said Ceri Powell, EVP geoscience capability.”
of Global Exploration at Shell.
The concept of a RON workshop originated in late 2011 Many Years of Diverse Experience
with the recognition of the importance of Shell’s existing A RON brings together a diverse group of between 20 and 40
‘heartlands’ in exploration delivery. These are countries or exploration-minded people with a mix of experience, from those
basins where the company has invested for many decades, working the basin today, to others from five, 20 and, in one
established a strong and viable business with host governments case, more than 50 years ago. They all leverage their combined
and has a thorough geological knowledge of the sub-surface. experience in diverse petroleum systems to generate new insights
“Our belief in rejuvenating our heartlands is premised into the basin, identify additional opportunities within known
on the fact that the rich petroleum systems associated with or potential new plays and help to develop and prioritise forward
our traditional areas, such as Oman, Malaysia and the North plans to mature the opportunities. Participants comprise
Sea, will continue to deliver new exploration discoveries. The geoscientists with current knowledge of the basin or basins being

500 years of exploration experience gathered together in one room – and not a computer in sight!
Shell

92 GEOExPro December 2014


Shell

Shell

Shell
Mike Foley, with over 30 years of experience in Exploration Manager Mark Harvey is Ceri Powell, EVP of Global Exploration at
the O&G industry, leads the RON initiative. enthusiastic about the usefulness of the RON Shell, is a great advocate of the Rejuvenate
workshops in which he participated. Opportunity Now (RON) workshops.

worked, legacy knowledge holders, functional expertise holders technical assurance to the process. My sense from speaking
and invitees with an external perspective. to many employees in attendance was that it was initially
“So, imagine having up to 500 years of exploration treated with some scepticism. However, the proof was in the
experience gathered together in one room – with no positive outcomes. The event led to Shell applying for and being
computers! Instead, old-school tools – paper logs and awarded licences in the subsequent licensing round, the first
‘mylar’ – bring fresh challenges to dogmas and other biases proactive bidding in the basin by the company in a decade. In
that potentially hold back new thinking on known plays. November, Shell was awarded seven blocks in the Northern
Discussion, agreements and sometimes heated debate, all North Sea; this successful outcome was based on a RON
leaving the asset owners with a rejuvenated portfolio of conducted exactly a year ago.
concepts to turn into drill-worthy prospects,” Powell said. “The second RON that I participated in took place in 2013 in
Muscat, Oman and focused on identifying further explor­ation
The RON Facilitator opportunities in existing play fairways in Petroleum Development
Michael Foley has led the RON initiative since 2012. Oman’s acreage – the portfolio ‘running room’ as we call it – as
“Since the inception of the RON approach to heartland well as completely new innovative play concepts which I typic­
rejuvenation we have benefitted greatly from the revitalisation of ally refer to as ‘blue sky exploration’. The event involved a balance
knowledge within current asset teams. Participants brainstorm between existing Oman-based staff and the wise heads of yester­
new idea around plays and opportunities, with results ranked by years, essentially people who have worked the basin previously
technical attractiveness and ‘doability’, and follow-up plans are from decades past and who returned to an old stomping ground.
developed for further maturation by the team,” says Foley. This proved to be a good challenge,” said Underhill.
“I very much enjoy working with asset teams to understand A key element stressed by Professor Underhill was the cross-
their objectives up front, help to design the workshop to meet border collaboration in the RON, which was a common theme
those objectives and contribute to executing the RON to deliver across all the workshops. He referred to this as ‘geology without
them. My role during the workshop is primarily as a technical borders’, branded by him on his third RON, in Stavanger,
facilitator, but I do spend time working the geology, using my Norway, which brought together the UK and Norwegian North
more than 32 years in the business, with the teams during the Sea teams for a connected view of North Sea geology.
workshop and during the follow-up, when required,” says Foley.
An Exploration Manager’s Perspective
The RON Veteran Exploration Manager in Malaysia, Mark Harvey, who has
Professor John Underhill is the Shell Chair of Exploration participated in RON workshops both in New Zealand and
Geoscience at Heriot-Watt University in Scotland and has Malaysia, is enthusiastic about the real results he sees.
been involved in four RONs so far. “The RON format is good because it makes people feel
“The first event that I took part in was the Central North uncomfortable not knowing where the end may be, by starting
Sea Rejuvenation Opportunity Workshop, which was held in from a bottom-up geological build and with no clear structure,
Aberdeen, UK, in 2011. It involved a review of Shell’s position yet leading to a deliverable at the end of day three. The RON
in the Central North Sea. My role was to provide independent involves geological experts, both past and present, thinking

GEOExPro December 2014 93


GEO Education

broadly to help the business deliver a work


plan focused on the geology with the best
play potential. The workshop therefore
ensured a grounding in geological play-based
exploration work, enabling delivery of high
quality play maps to help define where we
want to be in this basin and why. In Malaysia,
we can see the results helping to provide
focus on where we think the business should
be in Sabah and Sarawak,” says Harvey.

The RON for a Young Explorer


For Shell employee Ma Jing the experience

Shell
of attending a RON was interesting in
many ways, starting from preparing
Dave Steele shows that sometimes a little more space is all you need to find what you are looking for.
and participating and going forward to
further action. She joined Shell two and a half years ago as an recommendations: from conceptual ideas to ones supported by
Exploration Geophysicist. Before that, she had been working for data and observations. I think participating in such a workshop
another IOC on the North China offshore basin for six years. is invaluable, especially for young explorers, as it allows you to
“It was a full three-day workshop aiming to arrive at a learn from the experts and deepen your knowledge in the area.”
technical recommendation. Before that, our team spent
about two months preparing the materials and documents Yielding Results
used for the workshop, a large part of which was focused on To date, eleven Shell Exploration RONs have been held around
de-archiving legacy data, digitising the maps and digesting the world. They continue to yield results, directly contributing
the last two years of published papers, and books and play to improved technical assessments of targeted plays, supporting
summaries,” said Ma Jing. prioritisation and resourcing decisions for opportunities within
“This is the first time I have been involved in such a big a basin and providing a strong technical background that
geology and geophysics event, able to work closely with so underpins decisions to enter, and in a few cases to exit, specific
many experts with the same goal at the same time,” she plays or basins.
continued. “A big take-away for me was the ‘ideas funnel’ “Generations of geoscientists, doing what they love best, and
for further study. Essentially, this is set up during the three directly impacting the future of Shell Exploration. It doesn’t get
days and is a collection of good suggestions and technical much more impactful than that!” summarises Ceri Powell.

Exploration Geophysicist Ma Jing attended her first RON workshop in June 2013 in China. She said: “Everyone shared their knowledge and gave their
opinions freely. I got a great chance to listen to expert experience and be involved in the discussion in my capacity as a local basin knowledge holder.”
She is seen here on the left with Daniel Steffen (middle) and Jeroen Peters (right).
Shell

94 GEOExPro December 2014


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What I Do

The Chief Phil Fontana is the Chief Geophysicist for


seismic company Polarcus. He tells us about the

Geophysicist career path which led to this role and what it


entails – and why geophysics still excites him.

My undergraduate degree, at the be in at the start-up of a new seismic marketing our services before she was
University of Connecticut, was in company was very attractive, so I even launched. I felt I was right there
geology, but I took a geophysics course jumped at it, and have now been Chief in the centre of the fray and it was so
in the final year and really enjoyed it, Geophysicist for the company for six exciting.
so I decided to do my Masters in the years. I am based in Dubai, which is a And after all these years in the
subject. I think what attracted me to fascinating place to live. After all, it is business, geophysics is still not boring,
the discipline is the mix of multiple probably the most modern city on the because there is always so much yet to
sciences involved: physics, geology, planet, so there is always something learn. I continue to get involved with
technology – they are all needed, and it interesting to see or do. the subject, primarily as a result of the
is very satisfying to see how they work very innovative team I have around me
together. Responsibilities in Polarcus, who are constantly coming
In an acquisition company like Polarcus up with new ideas and fresh ways of
Influencing Technology many of the main responsibilities attacking problems and expanding our
I learnt my craft after I left college by of the Chief Geophysicist revolve services and products. And I am also
working as a geophysicist in a small around developing and promoting the strongly involved in mentoring the
geotechnical survey company in the US, technical capabilities of the company. next generation of geophysicists and
where I had to do everything. I set up I need to assess how we use equipment managers so they will be well equipped
the equipment, ran it all, sorted out any both for operational efficiency and to to take over my roles in the future, and
problems and interpreted the results: a ensure optimum geophysical quality. those of my managerial colleagues.
great learning experience! I also market our technical ideas and
I then moved on to the Applied equipment internally to my colleagues What Attributes are Needed?
Marine Technology Group at Western and externally to our customers. What makes a good geophysicist,
Geophysical, a much larger company, Talking and marketing to potential particularly one who aims for higher
where I was working in research, which clients is an important aspect of my management level in a company? I was
was very interesting. The geophysicists job. I need to be able to project the advised early on in my career to be a
at Western actually decided what company’s technical competence generalist and not to specialise too
systems were needed and worked to our client community, much or too soon – very
closely with the engineers in the group to let them know that good advice. You need a
to make and test the prototypes, until not only can we good general grounding
we were happy with them, then they undertake each project in both technology
could be manufactured and supplied successfully, but we can and the sciences,
to the field crews. Back then the do it better and more and you must gain
geophysicists had significant influence innovatively than our an understanding of
on the development of technology, with competitors. the three facets of
manufacturing virtually driven by what It has been a geophysics: acquisition,
the geophysicists suggested. I think that wonderful experience processing and
is less true now, as many of the larger helping to build up a interpretation, and
R&D facilities have been broken up. company like Polarcus the ways in which they
After working in the research team from scratch. I was interact and affect each
I moved into management, with spells there when we built other.
living in London and Houston. When our first ship – in
Western merged with Geco I became fact, I was
the Chief Geophysicist for North and
Polarcus

South America. However, I really prefer


working in smaller companies where I
feel more ‘hands on’, so in 2001 I joined
Veritas, now part of CGG.
Finally, in late 2008 I was asked if
I would like to be part of the newly-
formed Polarcus. The opportunity to

96 GEOExPro December 2014


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GEOExPro December 2014 97


GEO Cities

Midland, Texas:
long list of major discoveries in the 1920s
that included the supergiant Yates Field
in 1926. The Permian was now one of
the world’s great oil-producing basins,

Gateway to the Permian Basin bringing thousands of oil field workers


and investors to Midland.
By 1929, thirty-six oil companies had
Starting out in 1881 as Midway Station, a railroad section house offices in Midland. Street and lighting
halfway between Dallas and El Paso, Midland is now the fastest improvements swept across the city
growing metropolitan area in the US thanks to the ‘Shale Revolution’. and new, impressive structures such
as the 12-storey Hogan Building were
THOMAS SMITH constructed. The county sold its old
If there is any city that deserves the Ohio real estate firm had bought land courthouse for one dollar to move into a
title of ‘Oil City’, it would have to be and promoted the site, attracting 100 new four-storey building. The city now
Midland, sitting as it does atop one of the families to the area. Residents all used boasted 5,484 residents with a new airport
most prolific oil-producing areas of the windmill pumps to obtain water and and luxury hotels. Shortly thereafter,
US. Starting with a trickle (10bopd) in Midland became known as the ‘Windmill the Great Depression brought dramatic
1920 at the Westbrook Field, Midland’s Town’. By 1914, it was a thriving town of changes to the area. The combination
growth and fortunes are inseparably 2,500, the county seat with two banks, a of a decrease in the nation’s demand for
linked to the Permian Basin oil and gas cotton gin, lumber yards, four churches oil and large, new oil discoveries in East
developments. and an opera house. Extended droughts Texas made for a glut of oil on the market,
Known as ‘Midway Station’ from the depressed the local economy and by 1920 depressing oil prices. Many of Midland’s
days of the Texas and Pacific Railway, the the population had dropped to 1,795. oil businesses folded and by 1932, a third
region’s first permanent resident, Herman Then came the first of Midland’s oil of the town’s work force was unemployed.
Garrett, moved here from California in booms. The local citizens showed the town’s spirit
1882, along with his herd of sheep. Other
The 1923 Santa Rita oil discovery generated
ranchers soon followed and a post office Oil and Midland’s Ups and Downs intense interest in the Permian Basin and kicked
was granted on 4 January 1884. In order Three years after oil was discovered in off Midland’s first oil boom.
to establish this, and as other towns in the Permian Basin, the Santa Rita #1 blew

Courtesy Petroleum Museum


Texas were already called Midway, the out hitting oil and gas in dolomitic sands
site was renamed Midland. By 1885, an called the ‘Big Lime’. It was the first of a

Downtown Midland rises out of the mesquite-covered West Texas plain as seen from the rooftop
of the Petroleum Museum, a great place to begin a visit to the area. Some of the Museum’s vast
collection of antique oil drilling equipment (the world’s largest) is pictured in the foreground.
Thomas Smith
Thomas Smith

98 GEOExPro December 2014


by organising the Midland Community had diversified, the primary source of of, if not the world’s
Welfare Association to distribute food prosperity for the area was the petroleum largest oil field, with
and clothing to the needy. industry. With declining Permian Basin companies target­
This economic dip was short-lived, production and low oil prices, several ing at least six shale
as the Texas Railroad Commission large energy companies simply moved intervals across the
began to regulate oil production and the away, leaving their equipment to weather 400 km by 480 km
federal government placed a stiff tariff in the harsh Texas sun. Midland was in Permian Basin. Early estimates are huge,
on foreign oil. Dozens of new Permian for a long downturn. well over 50 Bbo. Midland is resurging
Basin oil fields began producing in and, not unlike the other boom times,
the late 1930s and by 1940 Midland Enter Hydraulic Fracturing the city is feeling the growing pains.
had almost doubled in size, nearing In 2005, companies began drilling a few Housing is at a premium as rents
10,000 residents. The town continued to horizontal test wells and trying different have shot up rapidly; government
prosper and grow during World War II, hydraulic fracturing treatments on and schools are overwhelmed; the
when there was increased demand for some of the Permian Basin’s rich source roads are crowded; and new high-rise
oil and more oil field workers arrived in beds. Most of these early experiments office buildings are proposed for the
the city. The army also established the proved to be uneconomic. After trying downtown. Most residents know that
Midland Army Air Force Base as one of a host of methods that included gels a slowdown will occur and that over-
the largest training bases in the world and CO2 foams, the companies moved building and expensive city projects
at that time. When the base was closed to slickwater completions and refined have come back to haunt them during
in 1946, it was converted to an excellent fracking methods to provide optimal rock slow periods in the past. As the former
regional airport. breakage, thus increasing the surface area mayor, Wes Perry, notes: “We know
As goes the Permian Basin expansion, to be produced… the boom was on. it was there one day and can be gone
so goes Midland. Oil and gas production Midland just may be sitting on one again, so we better be careful.”
from the Permian Basin greatly increased
through the late 1940s. It was the period A common site around Midland – small trailer parks and drilling rigs. The building of new homes
when Midland attracted a huge influx of and apartments is at a frenzied pace to accommodate the city’s rapid growth.
oil investors and workers, including two
future US presidents (see photograph,
below). By 1950, 215 oil companies had
offices in Midland and the population
had nearly doubled to about 22,000; by
1960, the population had nearly tripled
that, to over 63,000. The small country
town had become a city with a skyline
that could be seen for 30 miles.
The next down period lasted over a
decade, from 1960 into the early 1970s,

Thomas Smith
even though Permian Basin production
was increasing to its 1973 peak of
2.085 MMbopd. Competition from
foreign fields had lowered oil prices
and numerous companies left the area
George H. W. Bush first
or trimmed their workforces. The 1973
visited Midland in 1948, like
Arab oil embargo led to increasing
so many others at that historic
oil prices, relaxed federal regulations
boom time, to get into the oil
on the oil companies, and major
business. Midland was then
conservation efforts. Midland boomed
known as the ‘headquarters
for the next nine years. New downtown
for the independent oil man’.
high-rise offices were built; apartments
George started out as a sales
and houses went up by the thousands,
clerk but soon opened up his
yet contractors could not keep up with
Thomas Smith

own independent oil company


the demand. By 1981, there were people
which he actively managed
living in tents, cars and trailers all
until 1966. He brought his
around the city.
family to Midland and bought
Then the sudden drop in oil prices in
this house in 1951. The house is unique in American history as it was the home
1982 ended this boom period, leaving
of two US Presidents; George H. W. Bush, No. 41, and George W. Bush, No. 43,
office buildings vacant and houses
as well as two governors and a first lady.
unsold. Even though Midland’s economy

GEOExPro December 2014 99


Exploration Update
The world’s most significant discoveries brought to you by IHS and GEO ExPro KEN WHITE

Senegal: Cairn Has Substantial

FAR Ltd
Find With First Well
Hailed as the first major find for the company since it started divesting the
proceeds from the sale of its Indian interests, Cairn Energy has made a “very
substantial” discovery with its FAN-1 wildcat in the Sangomar Deep block
offshore Senegal, about 100 km south-south-west of the capital, Dakar. The
well, located in 1,427m of water, reached a total depth of 4,927m targeting
multiple stacked deepwater fans. Preliminary analysis showed distinct oil types
ranging from 28° API up to 41° API. Cairn estimates in-place P50 resources of
950 MMbo, broadly in line with pre-drill estimates. A preliminary analysis
has indicated there is 29m of oil bearing reservoir in Cretaceous sandstones.
No water contact was encountered in a gross oil bearing interval of more than
500m. There are no plans for immediate well testing but the news saw Cairn
shares jump by more than 10%. The FAN-1 well, which was drilled using the
semi-submersible drilling unit Cajun Express, is the company’s first in Senegal.
Chief executive of Cairn Energy, Simon Thomson, said the discovery is
The new discovery could hold nearly 1 Bb oil in place.
an important event for Senegal and the joint venture as they have
“encountered a very substantial oil bearing interval which may have
significant potential as a standalone discovery.” He added that “this
result materially upgrades the prospectivity of the block with a proven
petroleum system and a number of deep fan and shelf prospects
established.” The Cajun Express semi-sub has now moved to complete the
second well, SNE-1, where the top hole has been drilled pending re-entry.
Cairn has a 40% working interest in the block, with
ConocoPhillips holding 35%, FAR Ltd 15% and Petrosen, the national

Jane Whaley
oil company of Senegal, 10%. The group hold two other blocks
offshore Senegal (Sangomar Offshore and Rufisque), for which Cairn
is also operator. The three blocks cover 7,490 km2 and lie in the
productive Mauritania-Senegal-Guinea-Bissau Basin. Fishing boats in Dakar.

Norway: Lundin Considering Loppa High Infrastructure


Lundin Petroleum has described its 7220/11-1 wildcat on the 0 KM 20

Alta prospect, some 20 km north-east of the company’s 2013 Bjørnøya Bassenget

Gohta success in the southern Barents Sea, as a significant Børselv

discovery testing both oil and gas. Drilled using the Island Kramsnø PL609

Innovator semi-sub, the well, located in 388m of water in PL609,


gh y

reached a total depth of 2,221m targeting Permo-Carboniferous


Hi emø

mp a

Johan
Co nn
lex
sl

Neiden
ult yre

Castberg
Ve

and Triassic objectives. It encountered a good quality gross


Fa rnø
Bjø

hydrocarbon column of 57m consisting of 11m of gas and 46m Drivis


Skavl

of oil. Two drill stem tests were carried out in the oil zone
rm d
Pla melan

Iskrystall
orm im
-pl olhe

producing at a maximum rate of 3,260 bo/d and 1.7 MMcfg/d


tfo
r

Loppa High
Bja
P
atf

Rauto
through a 36/64” choke. Lundin’s preliminary estimate of gross
b
Su

PL533 Lakselv PL659


recoverable resources for the Alta structure range from 125 to North
Ring omplex
Fault

400 MMboe, with the oil resource estimated at 85 to 310 MMb.


vassø

Lakselv
C

Formica South
y-Lo

The 7220/11-1 well is the first to be drilled on PL609 and its


Lundin Petroleum

Alta Discovery
ppa

Salina
success has de-risked the remaining prospects in the licence in
Gohta Appraisal PL609B
which both the Børselv and Neiden prospects
Barents Sea
are drill-ready. Alta is seen as another positive PL609 PL492 Gohta Discovery
step towards proving up sufficient resources PL438
Lavvo Rein
Boazo Lundin Petroleum Licences
Barents Sea Area PL767
in the Loppa High area of the Barents Sea Noaide Operated
Komag Skalle Non-operated
to enable the development of oil production Hammerfest Basin
Trål Hydrocarbon fields/discoveries
infrastructure. Lundin has indicated it is likely Oil
to drill three or four appraisal/exploration PL490
Gas
Prospects
wells in the Loppa High area in 2015. Norwegian Sea SNØHVIT

100 GEOExPro December 2014


Reduce
uncertainties
Australia: AWE Opens New in seismic processing
Play in North Perth Basin and interpretation
According to Australian exploration
company AWE, its Senecio-3 well International
in onshore blocks L1/L2, about 360
km north of Perth, has increased the Expertise in
Geological &
development potential of the Senecio gas
field and discovered the new Waitsia gas

Geophysical
field in the underlying section. This has
opened a new play with significant upside
potential in the North Perth Basin.
After initial analysis of data from
the Senecio-3 well and the existing 3D
Services
seismic, AWE estimates that the Lower
Permian Kingia/High Cliff Sandstone in Europe, Africa
intervals in the Waitsia discovery
(formerly Senecio Deep) have gross
and Middle East
contingent resources (2C) of 290 Bcf. The
company is keen to undertake further
appraisal work as the Kingia/High Cliff
Sandstone interval has not been previously
AWE

penetrated in this part of the basin. It


believes it may have discovered what may
Shale gas exploration in the North Perth Basin.
be the largest onshore gas find since the
discovery of the Dongara gas field in the 1960, which has been producing gas for 40
years but is nearing depletion of its reserves. The Senecio-3 appraisal well is located on
agricultural land approximately 15 km east of the town of Dongara and 7 km from the
AWE-operated Dongara
gas plant.
AWE is also evaluating
the gas-bearing
intervals in the Lower
Permian Irwin River
Coal Measures and the
overlying Caryniginia
Shale, which could
provide substantial
additional unconventional
resource potential. The
company estimates that
the Irwin River Coal
Measures has gross
prospective resources
(P50) of 420 Bcfg, but
further evaluation and
appraisal would be
required to establish
whether reservoir
productivity will be
sufficient for commercial
development. Prospective
resources for the
Caryniginia Shale have
not yet been estimated for
this location, but could be
substantial.

www.prospectiuni.com
GEO Media

The
End of Country
Dispatches from the Frack Zone
The End of Country: Dispatches three times from a prepared speech that
from the Frack Zone the shale revolution was in the ‘national
Author: Seamus McGraw interest’, vital to the ‘national security’ of
Hardcover: 2011 the United States – but it had to be done
Paperback: Random House (2012) right. Obama was on side; the applause
was that of relief.
This is a book that all those interested There seemed an unstoppable
in the anti-fracking movement should momentum – and in truth there is.
find rewarding. The shale revolution has drastically
While helpfully descriptive in many increased the world’s economically
areas, it is riddled with assumptions recoverable hydrocarbon resource base.
and technical misconceptions; and it It will take time to spread but in the
is very forgiving of the foibles of the meantime, US production alone will
author’s rural Pennsylvanian associates. bring radically lower oil and gas prices
That said, this is probably how many worldwide. 2011 was a heady time for Pennsylvania, the depressed farming
opponents of the shale revolution think. those who had watched the evolution of area brought to prominence by Gasland.
It came out in 2011, a long time ago in the shale revolution. He is also a man with conflicted
shale terms; but the issues faced are now But there was trouble brewing on the interests, who supports selling drilling
being met all around the world. environmental side; The End of Country rights on the family farm and at the
appeared just after the film Gasland same time has the “what will all this
Unstoppable Momentum came out. As Professor Terry Engelder of mean for us?” concerns of everyman.
I picked up a copy in 2011 in Pittsburgh Penn State demonstrated in his AAPG Upon my re-reading, the book still
airport while returning from a DUG Distinguished Lecturer series (see GEO exudes that same initial feeling of a story
(Developing Unconventionals) East ExPro Vol. 11 no. 4), Gasland is more well told with somewhat forced balance,
conference which had seethed with fiction that fact. Nevertheless, it has imbued with insights that only a local
energy and new ideas. Most importantly, still helped convince a sizeable part of could provide. It describes the first wave
a Washington heavyweight had been the environmental movement to erect of landmen coming to town with their
the lead-off speaker (from the US barriers to the use of shale gas, thus usual sales talk, but fails to evoke more
Environmental Protection Agency, no slowing the wholesale switch from coal to than mild disapproval of their mis-
less) and, exuding the quiet confidence shale gas worldwide – which just happens steps; it talks about misunderstandings
of the truly powerful, intoned two or to be the only way to make needed CO2 turned to principle, then to revenge and
reductions in the short time-frame that acts of expensive nuisance; it speaks
environmentalists, almost to a person, say mostly of local motivations and fears,
is needed. This seems perverse. but it is clear that the preservation of the
‘peace and quiet’ of a very beautiful area
Local Insights conveniently located a mere 150 miles
The End of Country is important because from New York City plays a bigger role.
very little has been written on fracking It will evoke a peculiar mixture of
from the bottom looking up – the place admiration with a nagging feeling that
where public opinion is formed. It helps nothing substantially threatening has
fill this gap by presenting the facts as been described – yet the anxiety and
seen through the eyes of an ‘everyman’. concern are palpable.
McGraw was a reporter of no great The End of Country tracks the
accomplishment or geoscience expertise, transformation of the mundane into a
but he was a keen observer of fracking powerful political force – one capable
operations on the ground – and in the of setting back fracking policy in
minds of his neighbours. He has strong jurisdictions where political leadership
memories of growing up in north-east is weak.
Pennsylvania, an area where naturally So, if you want or need to understand
occurring gas seeps are well known, these forces, read this book.
and lived a few hills over from Dimock, Cabot Martin

102 GEOExPro December 2014


www.geo-india.com

The 3rd South Asian Geosciences


11-14 January 2015 Conference and Exhibition

India Expo Centre and Mart


Greater Noida, New Delhi
Organisers Worldwide Co-ordinators Asia Co-ordinators
Arabian Exhibition Overseas Exhibition International Expo
Management WLL, Bahrain Services Ltd, UK Management, Singapore
T: +65 6233 6777
Oil & T:F:Natural
+973 17 550 033
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+973 17 553 288
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F: +44 (0)20 7840 2119 F: +65 6233 6768
Corporation Limited (ONGC)E: [email protected]
E: [email protected] E: [email protected]
Q&A

Hard Work and Innovation


In just eleven years, DownUnder GeoSolutions (DUG) has grown from a few people working in a shed
in a Perth garden, to a company employing 200 people with seven offices based all around the world.
Dr. Matthew Lamont, who founded DUG in 2003 with Dr. Troy Thompson, explains why he decided to
start his own geosciences company.
What led you to found DownUnder computing continues to evolve it Do you think the big oil and services
GeoSolutions? is essential that we keep our finger companies pay enough attention to
I had always wanted to start my own on that pulse too. For example Australia?
business. Whilst working in Houston we are embedding our processing Yes I do. All of the majors have a
(for BHP Billiton) I had witnessed and imaging system into our presence in Australia. If you ask me, I
companies, similar to what we have now interpretation package, DUG Insight. think we actually have too many service
become, doing very well. After returning Add this together with our new Intel companies!
to Australia I realised that there weren’t Xeon Phi-powered desktops and we’re
really any Australian companies of this now making interactive processing a You recently won the prestigious SEG
type – that is, small service companies reality on each of our geophysicist’s Cecil Green Enterprise Award. What
that approach G&G from a new and individual computers. A testing does this mean to you?
different angle. The time was right to try regime that once took weeks can now Our company will be eleven years
and fill this gap in the market. be achieved in days. Innovation is a old this year and we are proud of
A small number of my past necessity if you want to stay near the all of our achievements. But to be
colleagues believed in what we were front of the pack, I believe. recognised by the SEG is certainly a
trying to create and provided a great honour and it feels pretty good.
modest amount of start-up capital and You are based in Perth, but where There is no doubt that it will also help
DownUnder GeoSolutions was born. does the majority of DUG’s work come our international brand recognition,
Our first office was literally a shed that from? which will keep our business moving
we built in my own backyard! In the very early days a fair amount in the right direction!
of our work came from the Gulf of
DUG has grown very rapidly: to what Mexico. But even then we started
do you attribute your success? getting projects from a variety
I think there are a few things. We have of international locations.
worked very hard to get where we are Expanding our presence in
today. We have been lucky enough to south-east Asia was the obvious
attract some fantastic (and very clever) first step out of Perth, and
people over the years who have helped we opened offices in Kuala
us to grow and innovate. I think that Lumpur and Jakarta in ’07
our focus on research and development and ’08. Today we work in all
from day one has also been important. corners of the globe with seven
Our fleet-footedness, relatively low international offices including
overheads and not being afraid to take London and Houston.
an (educated) risk or two have served us
very well. Our drive to be a successful How do you see the state of the
company has certainly never waned. E&P industry in Australia and
South East Asia?
Is there enough innovation in the Things have flattened out a little
‘geosolutions’ field? at this moment in Australia.
Yes, I believe there is. Every single There is a lot of focus
project has its own unique set of on a few mega-gas
challenges which need to be solved. projects. That said,
I think this field will always strive the recent Phoenix
to do things more effectively and discovery (Canning
efficiently. Innovation is certainly a Basin, offshore Western
big part of what we strive to do every Australia) has been very
day – be it on a technical project or a exciting. Things are
marketing strategy or an IT solution. continuing to go well in
As hardware for high performance the Cooper Basin too.

104 GEOExPro December 2014


Celebrating 25 Years of Excellence
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1989 –2014

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Hot Spot

Paraguay Draws
and development. These include larger
and growing markets for hydrocarbon
products, significantly increased oil

Industry Attention
and gas prices, at least until recently,
improved infrastructure in the Chaco
and a positive change in the political
climate. However, high operating costs
Two recent wildcats in the Paraguayan Chaco Basin lend substance pose a threat and it may prove difficult
to convince the indigenous groups in
to an estimated resource potential of over 27 Bboe for the country.
the Chaco region that there is potential
It is fashionable to identify deepwater gas-rich Bolivia, hydrocarbons- benefit to a well-managed petroleum
regions, unconventional plays and the producing Argentina and Brazil, with its industry. In addition, there are a
Arctic as the ‘hot spots’ in the current vast offshore oilfields. In 2013 the first number of stages to the contractual
global exploration scene. In recent years, significant seismic surveys since 1997 process and it can be time-consuming
violence, tension with governments and were undertaken, including the first and lengthy.
power struggles with state-owned oil ever 3D seismic, which was acquired by A reliance on imports probably
companies have weakened the allure of President Energy and which led to the explains why the country offers one of
less-developed nations in North Africa company’s drilling success. the most benign fiscal regimes in the
and Central Asia, where lax regulations In July 2011 US geoscientists world of hydrocarbons. In April 2013,
and cheap labour costs once promised estimated Paraguay’s undiscovered Horacio Cartes, a businessman first and
hefty profits for oil companies. But with hydrocarbon resource potential to foremost, won Paraguay’s presidential
two wildcats proving the presence of be 27.95 Bboe, of which 27.55 Bboe elections. He has no resource
thick Devonian source rocks which are were estimated for the Palaeozoic and nationalism tendencies, as has been
actively generating liquid hydrocarbons, 400 MMboe for the Mesozoic. These apparent elsewhere in Latin America,
Paraguay has been brought to the estimates include unconventional and the general consensus is that he
industry’s attention. These wells resource potential in their calculations; will govern from a pro-investment
(Jacaranda x-1 in August 2014 and Paraguay has an unconventional shale perspective that will benefit the oil and
Lapacho x-1 in October), which are gas resource potential estimate of 62 Tcf. gas industry. Paraguay holds no bid
operated by President Energy, were the The Chaco Basin is a large rounds and all contracts in the country
first to be drilled in the Pirity sub-basin sedimentary basin located are dealt with by the MOPC (Ministry
of the Paraguayan Chaco for 30 years. predominantly in north-western of Public Works and Communications)
Lapacho x-1 in the Pirity Block, Paraguay and south-eastern Bolivia. and its Direccion de Hidrocarburos,
which borders Argentina where the The Paraguayan part, where recoverable a subdivision of the Vice Ministry of
same petroleum system in the Olmedo potential has been estimated at Mines and Energy, through an open
sub-basin is producing mostly 40-44° more than 4 Bboe, remains one of licensing system. Moves to create a
API crude, encountered significant the world’s least explored onshore dedicated ministry for energy mines
shows of oil in the Devonian Icla hydrocarbon areas. Several factors and hydrocarbons were defeated in 2013
Formation sandstones, with President render the Paraguayan Chaco Basin but are likely to be revived.
Energy identifying 20m of net pay in attractive for oil and gas exploration Ken White
two zones. Although the porosity is
tight at 6%, extensive fracturing has Cleared seismic lines through the Chaco Basin; the results of the seismic survey guided the drilling success.
been identified and the sidewall cores President Energy

were bleeding light oil and condensate.


Pre-drill gross mean unrisked
prospective resource estimates for this
well were over 1 Bboe. The company
is now proceeding to its primary
target, the Lower Devonian Santa Rosa
Formation, and will then conduct cased
hole flow testing, before returning to
the Jacaranda x-1 to drill deeper to test
the Icla and Santa Rosa Formations.

Plenty of Potential
This landlocked country, long a gaping
hole in the hydrocarbons map of South
America, currently has no production,
despite being sandwiched between

106 GEOExPro December 2014


Ireland – South Porcupine Basin
Multi-Client 2D & 3D Data
Polarcus is pleased to announce the availability of a major new multi-client seismic program in the South
Porcupine Basin, offshore south-west Ireland. The South Porcupine Basin is an underexplored rift basin with
multiple exploration plays, and this summer Polarcus and its partners have acquired 4,300 sq. km of 3D data
and 5,000 km of 2D data in this area. The 2D data provides a comprehensive regional database infilling the
new PAD regional dataset and complementing ION’s NE Atlantic SPAN data, whilst the 3D data provides
coverage over the Drombeg exploration prospect and the attractive adjacent open acreage. These new
data provide a better understanding of the basin and allow companies to review the prospective plays and
structures for the forthcoming 2015 Atlantic Margin Oil and Gas Exploration Licensing Round.

These new RightBAND™ data are being processed by GX Technology through a WiBand™ Pre-STM processing
flow and data are available for licensing now to allow companies to evaluate the multiple plays seen in this
under explored basin.

For further information contact:

Tony Pedley
[email protected]
+44 788 44 81747

Zyg Sarnowski
zyg.sarnowski
@geopartnersltd.com
+44 1252 761314

Phill Houghton
[email protected]
+44 1784 497475

www.polarcus.com/mc

SeaBird Exploration
Global Resource Management

Explaining US$85 per Barrel Conversion Factors


The unexpected increase in tight oil production in the US
Crude oil
explains why the oil price has plummeted from around US$110 1 m3 = 6.29 barrels
per barrel in 2013 to roughly US$85 per barrel in recent months. 1 barrel = 0.159 m3
Nobody – absolutely nobody – was able to predict what was about to happen. 1 tonne = 7.49 barrels
In just three years, oil production from tight* reservoirs in the US tripled from
1 MMbopd in 2010 to more than 3 MMbopd in 2013. This year, production has Natural gas
increased to 4 MMbopd. 1 m3 = 35.3 ft3
This dramatic increase from tight formations is all the more interesting when
1 ft3 = 0.028 m3
you take into account the fact that US oil production dropped to an all-time low of
6.8 MMbopd in 2008. By 2013, output was 10.0 MMbopd due to the technological
revolution involving horizontal wells and fracking. The International Energy Agency Energy
(IEA) has made projections that suggest that US domestic crude oil production could 1000 m3 gas = 1 m3 o.e
increase to nearly 13 MMbopd before 2035. Such an optimistic view depends on both 1 tonne NGL = 1.9 m3 o.e.
technical improvements and geological presumptions about oil resources.
Many analysts claim that this increased production from tight oil reservoirs in
Numbers
the US is to blame for the lowered oil price. How the predicted increase will affect
the oil price remains to be seen. Million = 1 x 106
Tight oil is also a viable option in many other countries, like Russia, Canada, Billion = 1 x 109
China, Argentina and Mexico, all of which have unexploited resources. BP has Trillion = 1 x 1012
made projections that production from such reservoirs may contribute up to 9% of
total world oil production by 2030. In its Energy Outlook 2030, it says that “growing Supergiant field
production from unconventional sources of oil – tight oil, oil sands and biofuels – is
Recoverable reserves > 5 billion
expected to provide all of the net growth in global oil supply to 2020, and over 70% of
growth to 2030”. barrels (800 million Sm3) of oil
BP Group Chief Economist Christof Rühl is of the opinion that “vast equivalents
unconventional… delivery has been made possible not only by the resources and
technology, but also by ‘above-ground’ factors such as a strong and competitive Giant field
service sector, land access facilitated by private ownership, liquid markets and Recoverable reserves > 500
favourable regulatory terms”.
­million barrels (80 million Sm3)
“No country outside the US and Canada has yet succeeded in combining these
factors to support production growth,” continues the economist. of oil ­equivalents
North America will therefore still dominate production of tight oil in years to come.
*According to the IEA, “tight oil is an industry convention that generally refers to oil Major field
produced from very low-permeability shale, sandstone, and carbonate formations”. Recoverable reserves > 100
Halfdan Carstens ­million barrels (16 million Sm3)
Drilling for tight oil in the Bakken Formation in the Williston Basin,
North Dakota. Horizontal wells and fracking explain why this of oil equivalents
previously inaccessible resource from low-permeability reservoirs is
now exploited in North America.

Historic oil price

$2011/barrel
100

50
© Statoil

0
1861 1900 1950 2000

108 GEOExPro December 2014


AUSTRALIAN HOTSPOTS
We’ve got them covered with GeoStreamer®
Browse Basin
PGS has acquired over 18,500 sq km of modern GeoStreamer® 3D data across the most prolific
section of the Browse Basin. The new data sets reveal both new exploration potential and will
also serve to de-risk future exploration and development strategies in this geologically complex
area. Recent significant discoveries at Crown-1 and Lasseter-1, both within the survey area,
have stimulated increased Industry interest in this part of the North West Shelf of Australia.

Great Australian Bight


Southern Australia has become a hot spot for exploration activity following recent acreage
awards. The Ramform Sovereign will commence acquisition of the Springboard MC3D
in November 2014. This survey will deliver 8,000 sq km of high quality true broadband
GeoStreamer data over the Ceduna Sub-basin allowing lead identification and mapping of
drillable locations.

To locate and evaluate prospects, head straight for the PGS MultiClient Data Library at
www.pgs.com/multiclient

A Clearer Image MultiClient


Marine Contract
Imaging & Engineering
www.pgs.com Operations
“MAJOR OIL DISCOVERIES
in the Barents Sea”
“SUCCESSFUL PRESALT WELL
Multiclient
“SIGNIFICANT OIL DISCOVERY offshore Angola”
IN MOZAMBIQUE AND TANZANIA”

We make the data, you make the news.


Nobody knows where the next exploration success is going to be, but recent discoveries in the
Barents Sea and the West Africa presalt Kwanza basin all have Schlumberger multiclient data
at the heart of the story.
Decades of experience form the foundation of our multiclient team’s petrotechnical knowledge.
Together with the latest acquisition and processing technologies, our experts collaborate with
you to identify the best opportunities in the most promising areas.

Write your own success story with our multiclient data:


multiclient.slb.com

© 2014 Schlumberger. 14-pt-0116 Data courtesy of Sonangol EP

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