Beicip Franlab Headquarters 232, avenue Napoléon Bonaparte - BP 213

92502 Rueil Malmaison Cedex - France

Phone: + 33 1 47 08 80 00 - Fax: + 33 1 47 08 41 85

E-mail: info@beicip.com - www.beicip.com

November 2016

Innovation through Integration between G&G disciplines

Why do we need Innovation?

Beicip-Franlab is an E&P Consulting Company

Our Missions ● Help our clients to find new plays, increase their oil and gas reserves and optimize

production and revenues.

● Provide our clients with best-in-class and independent advice and software in Exploration, Production and oil valorization.

● Share knowledge, know-how and technology with our clients through sustainable partnership

Why do we need innovation? ● To address technical challenges of our clients despite data limitation and budgetary

constraints

● To be different from our competitors

● To remain competitive, ie to minimize study time frame without compromising quality of the output and the accuracy of our conclusions

2

Objectives of our Exploration Studies

3

Technical Objectives of Exploration Studies: – Organize/Assist licensing rounds

– Create a play inventory of hydrocarbon resources

– Deliver a yet-to-find analysis for all plays

– Identify new exploration opportunities

– Generate tools for management of exploration portfolio

– Independent audit of operator activities & unitizations

Strategic objectives for our Clients: – To evaluate potential of assets

– To assess & rank exploration and appraisal plays

– To develop geoscience staff with high capabilities in Petroleum System science

– To de-risk prospects and optimize costs

– To Support future exploration activities.

Technical challenges

Integrate a large database

Establish a consistent correlation framework for our Client and its partners.

Capture petroleum prospectivity, beyond existing fields and structures: Off structural entrapments identification

Assessment of probabilistic volumetric (G&G / Fluids)

Assessment of geological risks and uncertainties

Assessment of production potential / forecast

Assessment of economics

Portfolio management

Generate inputs for a dedicated exploration drilling program

G&G Disciplines Involved

5

Activity 1: Data collection, review and data base

Activity 2: Sedimentology / Sequence stratigraphy

Activity 3: Forward stratigraphic model (DionisosFlow™)

Activity 4: Petrophysical Interpretation

Activity 5: Geophysical Analysis

Activity 6: Structural Analysis

Activity 7: Source Rock characterization

Activity 8: Oil-Source correlations – biomarker analysis

Activity 9: Basin modeling (TemisFlow™)

Activity 10: Play identification & ranking

Activity 11: High-level economic evaluation

Activity 12: Portfolio Management

Innovation For Exploration: EM&ME Example

@B

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Beicip-Franlab in Middle East: IFP Middle east Consulting (Bahrein, Dahran, Kuweit City, Abu Dhabi)

Innovation as a Key

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Control Exploration Risks

Exploration Risks are defined by: ● Risk on trap

● Risk on reservoir lithology and properties

● Risk on Seal

● Risk on Charge

Conventional Approach involved the following disciplines sequentially: ● Geophyscis for trap assessment

● Sedimentology and Petrophysics for reservoir and seal

● Basin Modeling for charge

Need for improved interactions between disciplines ● Seismic Characterization provides information on trap and reservoir

● Forward stratigraphic modeling provides accurate inter-well lithology mapping

● Basin Models require consistent description of present day geology

8

Inversion as a tool for boosting data quality

Raw seismic data

Inverted reflectivities (with IBMM)

Bridging Seismic Stratigraphy & SRC

10

Identification of subtle stratigraphic traps 3D Seismic Characterization

Seismic Characterization allowed to populate lithologies, thicknesses as well as lithologies on 3D blocks

C

D

NE SW

Major basinward progradation

Disconnected lowstand Fan overlain by mounded and fan-shaped geometries

HC detection using Rock-Physics

11

BM to BL3 time interval

Pro

bab

ility

0.3

1

A priori samples

Probability of good assignment

IP

IS

IP

IS

Gas sand probability

12

Bridging Seismic Stratigraphy & SRC

13

Lowstand fan in the eastern part of the offshore Kuwait..

C D

NE SW

Major basinward progradation with Zubair foresets downlapping geometries on to the Top Ratawi

shale formation.

Disconnected Zubair lowstand Fan overlain by mounded and fan-shaped geometries

2D lines – L5521

160000 feet

C

D

A

B

Identification of major prograding fluvio-deltaic foreset

Disconnected fan shaped and mounded seismic facies have also been observed at the forefront of the prograding and dowlapping reflectors

Conceptual model tested in the Basin Model scenarios

Seismic stratigraphy analysis

Sequence seismic stratigraphy & depositional environments

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(5) – PALEOENVIRONMENTS/FACIES

Stratigraphic Modeling using Dionisos

15

Model specifications • Country/Basin scale • Cell size: 4x 4 km- Simulated • Time steps: 500 Kyrs Calibration data: • Cored wells (facies+litho) • Seismic stratigraphy (geometry)

RU-0002 SW-0001

LA-0001 KM-0003

KA-0002 MN-0128

NWUG-0001

MU-0002

SBG-0002 AJ-0003

MG-0048

KH-001 ME-0001

HA-0001

JL-0001

RI-0002

BU-0001

DA-0002 SA-0235 RA-0027

RQ-0115 NWRA-0005 AD-0007

Makhul Fm

Base-Mid Minagish Fm

Top Minagish Fm

Ratawi Lst Fm

Ratawi Shale Fm

ZubairFm

Predicted stratigraphic traps to be checked in seismic

Model

Stratigraphy

Seismic Characterization and Forward Stratigraphic Modeling

Seismic image, characterization and modelling

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Seismic Reservoir

Characterization: sand

probability

Sand proportion

Shale Sand

% Sand

lithological facies

Seismic

interpretation

159.4Ma 144.2Ma 54.8Ma 33.7Ma 23.7Ma 16.4Ma 15.75Ma

12.5Ma 4.6Ma 4.0Ma 3.4Ma 3Ma 2.6Ma 2.3Ma 1.77Ma 0.8Ma 0Ma

Cinematic Restoration as an input to Basin Modeling

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54.8Ma 33.7Ma 23.7Ma 20Ma

15.75Ma 12.5Ma 4.6Ma 4Ma 3.4Ma

3Ma

Darcy HC migration – faults act as conduits with permeable damage zone

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HC Sat %

Basin Modeling for Complex Structural Setting

Geophysics

Basin Modeling TemisFlowTM Geomechanics

Role of faults on Pressure distribution

Regional Pore Pressure Calibration & Model parameters (burial history, thermal gradient, etc.)

An innovative approach to PPP

Multi-disciplinary for Pore Pressure Prediction and drilling risk assessment

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Multi-scenario evaluation for enhanced risk

assessments

Extration of Pressure & Stress Profiles at

prognosis well location

Limestone Proportion

& Fracture

Assessment

PPP - Upper Bound PPP - Best Estimate PPP - Lower Bound

(Psi)

Mud Weight (ppg)

General workflow

Data collecting and Database construction

Petrophysical interpretation

Structural analysis / seismic interpretation & inversion

Petroleum System Modeling

Play concepts & identification Play fairway assessments

Lead Inventory (play and CRS maps)

1

2a 2b

4

5a

5b 6

0

Regional tectono-stratigraphic settings

Exploration strategy

2c

Sedimentology & Sequence stratigraphy

Seismic characterization

3

Forward Stratigraphic Modeling

Geochemical Study Source Rock Potential Oil-Source Correlation

@B

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Beicip-Franlab in North Africa: Algeria and Libya

Conclusions

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Innovation as a key for Development

On a technical point of view:

● Exploration challenges are more and more complex

● Reservoir Studies have to integrate a huge amount of data and address physcially complex fluid flow

Objectives & challenges:

● To improve our workflow to meet our client’s objectives and expectation

● To handle large datasets of various origin and various scales

● To aintain a high level productivity

● To benefit from key technical differentiators

Our ability to partner with Universities and R&D institutions is a key for developing our activities

In this frame, we are particularly proud of our partnership with Cerena