Exploration &

Production of
Hydrocarbon
(ENCH800040)

• Prof. Ir. Sutrasno Kartohardjono, M.Sc., Ph.D.,

• Dr. Ir. Ardian Nengkoda, MEng.
Universitas Indonesia

Feb 14, 2025

Exploration & Production of
Hydrocarbon Course

To equip you with basic knowledge of oil & gas

business cycle relevant to engineering, equipment,
facilities and operation. The learning experiences will
be provided by knowledge sharing, mini project,
virtual field trip brings online and real-life experience
to the application and understanding of oil and gas
E&P.
 Explorasi hidrokabron:
Introduction to Oil and Gas Sedimentary basin, geologi,
Prospek, geologi, geofisik,
Business Life Cycle dan sistem hidrokarbon
dan teknik pengeboran

Pengembangan reservoir:
Field Appraisal: Peran field
Pengenalan sifat – sifat Pengumpulan data dan
appraisal, ketidakpastian,
fluida dari hidrokarbon dan interpretasi, manajemen
alat, keuntungan biaya dan reservoir, dan simulasi
reservoir
aspek praktikal reservoir

What will Pengembangan pengeboran:

Arah pengeboran, komplesi,
Produksi hidrokarbon: Inflow
Performance dan System
Surface facilities, metering,
dan transportasi: Jenis dan
fungsi fasiltas permukaan,

you learn
produktifitas sumur, dan metering, trasnportasi dan
Performance
intervensi penyimpanan

Keekonomian hidrokarbon,
Aspek keselamatan dan
K3L dalam Industri Migas masalah kontrak, dan
lingkungan
pemasaran

Pengenalan hidrokarbon
non-konvensional (Coal Bed
Data Science in Oil and Gas
Methane, Shale Gas, Natural
Gas Hydrate)
 Let’s think!

So, what is the proper wording?

Transition or Adding?

Source : 2022, Energy Institue

Your exposure &
milestone
Mini Project/ League
Technical/ scientific paper participation
Personal network and soft skill development
Project Show Case
Interact with Expert/ high level Managers
International Seminar
 Maps

Pictures

Video

Materials & Open library sources

Sources
Book references

Other online media

Technical paper writing (journal & conference, patent)

Oil and Gas E&P Life Cycle
Dr. Ardian Nengkoda
Don’t forget
to stay
healthy
Objective
To understand the basic knowledge of upstream
Oil & Gas E&P life cycle and get update on latest
Indonesia issues
 ✔Country income and economic driven
Why oil & ✔Strategic resources and energy sources
✔Oil is one of the most important raw materials we have.
gas? Everyday we use hundreds of things that are made from oil
or gas.
✔Oil and gas are also important for the number of jobs they
provide.
 Let us think!
Oil & Gas is still important for our lives
What is
Energy?
Global
Energy
Consumption
Product
Consumption
(US, 2020)
Energy
Consumption
(US, 2020)
World Map
Oil & Gas
Production
Indicator
 Pre COVID-19

Cycles

Shale oil
 Pre COVID-19

COVID-19 pandemic and

crisis
Oil Price
Post COVID019: Economic
Crash and social effect
Timeline
Oil price collapse

Production Reduction,
Disruption & Innovation
Oil Production = Oil Revenues
Global
Primary Energy
Forecast
(IHS Markit, July 2020)
Oil Demand 2019-2045 (OPEC, Oct 2020)
Oil Product Demand (OPEC, Oct 2020)
Oil and Gas Transition
Highlights:
✔Renewables are taking a role of increasing importance in
the energy industry.
✔A full quantitative assessment groups oil majors into
renewable leaders or laggards. Five of the oil majors
pursue strategies to transition from oil to energy
companies.
✔Oil reserves seem to be a major determinant of the
chosen renewable strategy.
✔Natural gas will play an important sources in energy
transition
Oil and Gas Companies that rebrand
as Energy Companies :
Linkage of Renewable Energy with Oil
Reserve
Motivation

⮚ Limiting global warming to 1.5°C

⮚ Satisfying reputation, share/ stake
holder, global demand (ESG)
⮚ Increasing societal and government
pressure on environmental,
sustainability decarbonization
⮚ Diversified potfolio & Reducing cost
(CAPEX and OPEX)

(Siemens Energy, 2020)

But we must consider:

availability, accessibility, affordability, and
acceptability
General Renewable
Energy Challenges
✔Availability of Power (Intensity)
✔Power Quality Issues
✔Resource Location
✔Infrastructure
✔Information Barrier and
Awareness
✔Cost Issue and Pricing/
Incentive
✔Market
Global Forecast (2022)
 Upstream &
Downstream Business
Oil price
mechanism
Factors:
• Market • $ Currency
• Supply-demand • Spare capacity
• OPEC, Non-OPEC • New investment
• Geopolitics • New technology
• Inventory • Weather
• Reserve • Pandemic
 Global
challenges
,
this time is
different
(COVID-19
Pandemic)
Negative Crude Oil Price
 The ◈ Energy security (oil & gas, coal, renewables,
nuclear) remains a cornerstone of global
Implications economies especially during turbulent times

of pandemic ◈ Energy will become the center of economic

recovery
for energy ◈ Pandemic push Oil & Gas Industry to have new

systems skills set (ICT/ IR 4.0) to better improve business

process and sustainability
(Key Words):
 Indonesia Oil & Gas
Issue
• How to minimize gaps
import VS country
produciton
• Oil and Gas Governance
(Fiscal, Investment,
Bureaucracy)
• Low oil price = low income
• Refinery investment
• Renewable energy (Energy
mix)
• Energy efficiency
• Pandemic (COVID-19)
Indonesia Oil &
Gas Facts
 The new norm?
◈ Radical strategy in managing portfolio, E&P, JV
investment and spending (financial discipline)
◈ Integrated Upstream, Midstream, Downstream or
strategic energy mix portfolio
◈ Automation and digitalization will be on demand
◈ Low cost CAPEX and OPEX management
◈ Innovation based on knowledge management will be
on demand
◈ Focus on decarbonization and environmentally
friendly technology
◈ Managing mature asset, HSE and Sustainability
◈ Organization efficiency and slim work force (new skill
set)
◈ Logistic, storage and inventory management
Upstream E&P Life Cycle
Exploration & Evaluation
• Field discovery
• oil and gas are trapped in reservoir rocks buried
underground (onshore/ offshore),
• to locate hydrocarbon accumulation, geoscientists
analyze images of the earth’s subsurface produced
by seismic echography. They build a model of
geological layering of the subsurface, and then
identify potential reservoirs called «prospects»,
• exploration wells need to be drilled to check if the
identified prospect does indeed contain
hydrocarbons. These wells are typically several
kilometers deep.
 Field Evaluation
• Once discovery has been confirmed, 3D numerical reservoir
simulation models are built:

to estimate the initial volume of oil and gas in the

reservoir,

to simulate the reservoir fluid flow behavior and optimize

the field development scenario

• (number, type and location of wells, level of field production,

etc…).

• Appraisal wells are drilled to improve the field description

through further data acquisition.

• An economic assessment is performed taking into account

revenue

according to production forecasts and the estimated development

costs. If the required economic criteria are met, the field is
developed and thenproduced.
Field Development
A field development plan establishes the following:
• the number of wells to be drilled to reach
production objectives,
• the recovery techniques to be used to extract the
fluids within the reservoir,
• the type and cost of installations, such as
platforms, depending on the marine environment
(tides, storms, waves, winds, corrosion, …),
• the separation systems for gas and fluids,
• the treatment systems needed to preserve the
environment.
Field production
• The time period over which hydrocarbons
may be extracted varies between 15 to 30
years and may be extended up to 50 years
or more for «giant fields».
• The lifetime of a reservoir is composed of
different successive phases:
• a period of production increase,
• a stabilization phase or «plateau»,
• injection phases (water, gas or
chemical products) to «assist» the
hydrocarbon recovery and thus
maintain a satisfactory volume of
produced resources,
• the depletion period when
hydrocarbon production declines
progressively.
Field abandonment

• When the hydrocarbon production

rate becomes non economical, the
reservoir is abandoned.
• Before abandoning the field, the oil
companies:
> dismantle facilities such as
platforms,
> put the well in a safe state,
> preserve the field’s residual
hydrocarbon reserves of the field,
> clean, depollute and rehabilitate the
site.
Let us see
the video
https://www.youtube.com/watch?v=DmOZEt9DwRE
https://www.youtube.com/watch?v=O-qiUD9TEtQ
https://www.youtube.com/watch?v=4J2BJtt6yiw
Oil and Gas Industry Overview [Training Basics Series]

▶ SUBSCRIBE to the email: https://bit.ly/3olTVA8

▶ SCHEDULE training: https://bit.ly/32WFc71
=====================

- PODCAST: https://bit.ly/3opVNYu
- FACEBOOK: https://bit.ly/3glO619
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- PRODUCT TECHNICAL SUPPORT: [email protected] or 1-405-525-4264
- CAREERS @ KIMRAY: https://bit.ly/32Ynz6R
=============================

0:00 Introduction
0:43 History of Oil Gas
1:26 Sectors of Oil Gas Industry
3:20 Upstream Reservoirs
4:05 Wells Pay Zones
6:20 Well Fluid Properties
7:22 Conclusion Other Video Recommendations
=============================

In this Oil and Gas Industry Overview, we discuss the history of oil and gas production, three sectors of the industry—upstream, midstream, and downstream, geologic formations, types of oil and gas wells, and the makeup of a well stream.
=============================

TRAINING SERIES Level 1:

▶ Intro to Oil Gas: https://youtu.be/O-qiUD9TEtQ
▶ Tank Batteries: https://youtu.be/Ddc9P5FTw4k
▶ Separators: https://youtu.be/J_9b69F-Seg
▶ Heater Treater: https://youtu.be/84wSRdEZVhQ
▶ Compressors: https://youtu.be/3SpiUnpvc6c
▶ Free Water Knockout: https://youtu.be/joONjr_aWH4
▶ Gas Production Units: https://youtu.be/p0jjapGLMZQ
▶ Dehydration Systems: https://youtu.be/kTtiqTeTZ0I
▶ Filter Separators: https://youtu.be/mUQG5ur2ZWY
▶ Wellsite Safety: https://youtu.be/igUcgoNoCwE
▶ Burner Management Systems: https://youtu.be/0ul_3DG0oV0
=============================

Music by hooksounds.com
https://www.cnbcindonesia.com/news/20230119134923-4-
406800/tanda-tanda-target-1-juta-barel-minyak-ri-cuma-jadi-
angan

What is
your
opinion?
 • Work in a team
• Write max. 2 pages essay.
• Please select and Propose your New idea to improve the situation
below:
1. Impact of Trumph to oil and gas industry?
Student 2. Do you agree with the target of Indonesia oil and gas (1 Million
BOPD oil and 12 BSCFD gas? Explain your argument?
Team Mini 3. What is the solutions to achieve the target of Indonesia oil and

Project gas (1 Million BOPD oil and 12 BSCFD gas?

4. How to balance Environmental and Sustainability requirement

(Oil and Gas while increasing oil and gas production?

5. The strategy of oil and gas industry to support net zero
Business Cycle ) emission
Writing structure:
• Title of your writing
• Problem statement
• Objective
• Your proposed solution/ opinion
• References
• Submit your Essay in PDF doc to Dr. Ardian Nengkoda, email:
[email protected] not later than one week
Journal reading and references:

• https://link.springer.com/article/10.1
007/s13202-022-01543-9
• https://www.sciencedirect.com/scien
ce/article/pii/S2214785321014292
• https://www.sciencedirect.com/scien
ce/article/pii/S2665972721000465
• https://www.researchgate.net/public
ation/239399446_Sustainable_Develo
pment_in_the_Oil_and_Gas_Industry_
August_2003
• https://www.ipa.or.id/en/news/news/
optimism-to-pursue-oil-and-gas-
production-target-in-2030