APPRAISAL OF OIL

AND GAS FIELDS

Dr.Ir.Sudjati Rachmat,DEA

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Appraisal of Oil and Gas

Fields

Investors, courts
and the government
all have an interest
in appraising
properties
Appraisal is of two
basic forms:
a. Reserves and
b. Cash Flow
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OIL
FIELD
How much will be produced
(form a.) and how much money
will be made? (form b.)

Appraisal of Oil and Gas

Fields

Reserves

Cash Flow

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Reserves
Quantities of petroleum from known
accumulations available for production
and quantities which are anticipated to
become available within a practical time
frame through additional field
development, technological advances, or
exploration

Source
January 1996 issue of the SPE Journal of Petroleum Technology and in the
June 1996 issue of the WPC (World Petroleum Congresses) Newsletter.

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Reserves
The SPE formulates rules for
estimating reserves
Reserves are volumes that will be
produced under current operating
practices, prices, taxes, costs, etc.
Three categories of reserves:
Proved, Probable and Possible
Proved is most important.

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Proved Reserves
Must be at least 90% likely to be
produced
Must be based on actual production
tests or similar highly reliable
information
May be reported to various agencies,
stockholders and the general public
Are estimated and change with
time

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Probable and Possible

Reserves and Resources
Rarely reported outside company
Useful to keep track of future
opportunities
Measures of exploratory success
Resources are NOT expected to be
produced unless some critical factor
(usually economics) changes in the
future

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Reserves
Facts

Petroleum reserves definitions are not

static and will be revised as additional
geologic or engineering data become
available or as economic conditions
change

Reserves may be attributed to either

natural energy or improved recovery

methods
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Reserves
Amount of Reserves depend upon
Geological complexity
Stage of development
Degree of depletion of the reservoirs
Amount of available data
Regulatory and economic conditions

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Current SPE Definitions1997+

Interpretation of P90,P50 and P10 for reserves
accounting using SPE probability method
100
90
80
Probability

70
60
50
40
30
20
10
0
0

20000

40000
60000
STB Recoverable

80000

100000

Proved

= P90 = 5,000 STB

Probable

= P50 = 30,000 - 5,000 = 25,000 STB

Possible

= P10 = 100,000 - 30,000 = 70,000 STB

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10

Reserves Classification
Probability > 90%

RESERVES

Proved

more uncertain

Unproved

Developed Undeveloped

Probable
Probability > 50%

Possible
Probability > 10%

Producing
Non-producing
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Reserves Information in the

WEB

21

12

Oil: Proved reserves at end 1998

Oil Reserves

Thousand million barrels

Former
Soviet Union

65.4
Europe

20.7

North America

85.1

Middle East

673.7

Asia Pacific

43.1

Africa

75.4

The worlds proved oil reserves continue

to be dominated by the Middle East which
holds 64% of the total.

S. & Cent.
America

89.5

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Natural gas: Proved reserves at end 1998

Trillion cubic metres

Gas Reserves
Former
Soviet Union

56.7
Europe

5.2

North America

8.4

Middle East

49.5

Asia Pacific

10.2

Africa

10.2

S. & Cent.
America
World natural gas reserves increased by
just over 1% in 1998. Most of the increase
took place in the Middle East and the
Asia Pacific region.

6.2

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14

Indonesian Sedimentary Basins (December 2006)

PRODUCING (16 0R 27 %)
DRILLED, WITH DISCOVERIES OR SHOWS (8 OR 13 %)
DRILLED, NO DISCOVERIES (14 OR 23 %)
UNDRILLED (22 OR 37 %)

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15

SEDIMENTARY BASINS IN INDONESIA (60)

UNDRILLED (22)

DRILLED (38)

NOT DISCOVERY YET (15)

DISCOVERY (23)

PRODUCING (15)

NOT PRODUCING YET

(8)
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CADANGAN MINYAK INDONESIA

(Status 1 Januari 2004)

135

Natuna

NAD

408
118

Kalimantan Timur
Maluku

Sumatera Utara

100

920

Papua
Sumetera Tengah

4.535

Sumatera Selatan

109

887
Jawa Barat

738

Jawa Timur

581

81
Sulawesi Selatan

TERBUKTI
CADANGAN MINYAK (MMSTB)

= 4.300,7 MMSTB

POTENSIAL = 4.312,2 MMSTB

TOTAL
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= 8.612,9 MMSTB
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CADANGAN MINYAK INDONESIA

(Status 1 Januari 2006)

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CADANGAN GAS BUMI INDONESIA

(Status 1 JanuarI 2004)

NAD

8.60
Natuna

0.85
54.11
Sumatera Utara
Kalimantan Timur
Sumetera Tengah

8.52

47.39
Papua

4.15
24.13

24.49

Sulawesi Tengah

Sumatera Selatan
Jawa Barat
5.80

Jawa Timur

10.30

CADANGAN GAS (TSCF)

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TERBUKTI

= 97.81 TSCF

POTENSIAL

= 90.53 TSCF

TOTAL

= 188.34 TSCF
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CADANGAN GAS BUMI INDONESIA

(Status 1 JanuarI 2006)

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Also

www.bpamoco.com

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