shaping the future ofoil exploration and production inafrica...introduction: the changing petroleum...
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Shaping the future of oil exploration and production in Africa
Kehinde O. LADIPO (FNAPE, FAS)And Adedoyin LIPEDE (FNAPE)
LekoilChurchgate HouseVI, Lagos
THE FRONTIER INLAND BASINS OF NIGERIA: STRATEGIES TO REALIZE THE SIGNIFICANT UNDISCOVERED
POTENTIALS
OUTLINE Introduction: The Changing Petroleum Landscape of Africa and It’s Rift Basin Petroleum Systems
Africa’s Rift Basins: Analogues for Prospectivity and Hydrocarbon Potential for Nigeria’s Frontier Inland Basins
The Petroleum Systems of the WARS and CARS
The Undiscovered Potentials: Challenges and Enablers
Concluding Remarks
Acknowledgement
THE FRONTIER INLAND BASINS OF NIGERIA: STRATEGIES TO REALIZE THE SIGNIFICANT UNDISCOVERED POTENTIALS
The Changing Petroleum Landscape of Africa
LIBYAALGERIA
NIGERIA
EQ
ANGOLA
CONG
O
1987 OIL PRODUCERS
GABON
30YRS
LIBYAALGERIA
NIGER
EGYPT
CHAD
ETHIOPIANIGERIACAR
KENYA
TANZANIA
ZAMBIA
MOZA
BIQU
E
MALAWI
BOTSWANANAMIBIA
SOUTH AFRICA
EQ
GHANATOGO
MAURITANIA
MALI
ANGOLA
DRC
CONG
O
SUDAN
CAME
ROON
2017 OIL PRODUCERS
GABON
LIBERIA
SENEGAL
Africa’s Contributions to Global HC Resources
OIL Resources
GAS Resources
Source: BP (2017)
Rift Basins of Africa
2
1
34
5
6
4
5
6
GoG (Dahomey, Tano, Ivory Coast, Sierra Leone-Liberia: Lower Cretaceous Basin)
Onshore SNGBC Onshore Mesozoic Basin
Offshore Orange and Luderitz Basins Lower Cretaceous Tr
ansf
orm
Mar
gins
Source: Purdy and McGregor 2016
44
2
1
3
West African Rift System
Central African Rift System
East African Rift System Intra
-Cra
toni
cBa
sins
Cretaceous Basins – West Africa Transform Margin (GoG)
Benue Trough: Tectonics and Structure
Source: Benkhellil 1989
Benue Trough: Tectonics and Structure
Source: Benkhellil 1989
Dahomey BasinSource: Lekoil
Benue Trough: Tectonics and Structure
Source: Benkhellil 1989
Source: Olawoki (2018; in press)
Bida Basin
Benue Trough: Tectonics and Structure
Source: Benkhellil 1989
Gubio-Maiduguri Sub-Basin
Source: Adegoke, O.S. et al; 2015: GSEPM Special Publication
Benue Trough: Tectonics and Structure
Source: Benkhellil 1989
Regional Cross Sections Across The Illumedin Basin
Structural Framework of Analogous West and Central Africa Rift Basins
Regional Cross Sections Across The Termit Basin
Regional Cross Sections Across The Illumedin Basin
Structural Framework of Analogous West and Central Africa Rift Basins
Regional Cross Sections Across The Termit Basin
Regional Cross Sections Across The Illumedin Basin
Structural Framework of Analogous West and Central Africa Rift Basins
Cretaceous Basins – Stratigraphic Framework
Source: Edegbai, 2018
West African Transform Margin (GoG ) Petroleum SystemGeneralized Stratigraphic Framework
• Multiple Plays and Play Concepts
• Multiple SRs and charge mechanisms
• Synrift play remains least tested (Seme, Aje, Ogo Fields)
Schematic Diagram of ??Working Petroleum Systems of the GoG
SemeAje
Ogo
Mahoganey
Lacustrine
Shelf
Modified after Kjemperud et.al; 1992
Cretaceous Basins – West Africa Transform Margin (GoG)
Source: Pan African Petroleum
Offshore LiberiaOffshore Ghana (Tano-CTP Basins)
Onshore-Offshore Togo (Dahomey Basin)
Source: Emma Tyrrell et al. 2017: GeoEpro Bull. Vol. 14,.
Lower Cretaceous: Paleogeographic Reconstruction
Dahomey Basin (OPL310)
Gross GDE of the WARS Syn-Rift infill shows typical deltaic and alluvial fan depositional systems which infill the asymmetrical mini basins
Generic model of lacustrine deposition good predictor of facies, i.e. by mixed fluvial and low relief deltaic and lacustrine mudstone facies
Genetic sequences similar to the “Richmond and Fundy” type lacustrine genetic sequences, depending on latitude position, ca. low to mid latitude
L. Cretaceous Petroleum System: Source Rock Distribution and Maturity
(after Ejedawe 2007)
Lower Cretaceous Petroleum System: Benue Trough MaturityMaturity of Source Rocks Upper Benue-Chad Basin Type I (lacustrine algae), Type III and Type IV
kerogens Mixed lacustrine-terrestrial environment under
suboxic to relatively anoxic conditions. Potential for perhaps Lower Cretaceous petroleum
system Good mature SRs in the Bima (lacustrine) and Fika
Shales encountered in the key discovery wells Vitrinite reflectance (%Ro) and Tmax values of the
lacustrine shales ranges from 1.12 to 2.32 VRo% Gas prone SR facies Wells Ziye-1, Wadi-1 Kinasar-1 proved gas shows in
the Gubio-Maiduguri Subbasin; only within the Sweet Spot’
Fluid Inclusions confirm hydrocarbons within calcite cements from the Lower Benue Trough (Asu River Group, Albian
and Eze Aku Shales, Turonian age) and Middle BenueTrough (Arufu Lst., Albian)
VR data >2.6% in L. Benue Trough and up to 1.4% in Middle Benue indicative of maturity of SR (i.e. with the OGW and higher)
Timing of Expulsion and Trapping remains unresolved
Onshore Dahomey Basin Petroleum System (Tar sand Belt):• Estimated Resources- ca. 45Bbl (Source:
www.Ondostategovernment.com)
• 170BBl. In-place (after Coker pers. Comm)
• Estimated ca.5.8 Bbl of oil of hydrocarbon generated
• Additional and significant undiscovered potential from other highly prospective sub-basins to south and
Anambra Basin: • Marginal Gas and oil reserves proven in
Anambra River
Offshore Dahomey Basin Petroleum System:
Lower Cretaceous Petroleum System: Dahomey Basin
23
Cretaceous Basins – West and Central Africa Rift Systems
1. http://www.unitedhydrocarbon.com/operations/chad-africa/ 2. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=65129613
Data Challenge
Data Management & Sub-Regional Cooperation
Attractiveness of Fiscal Policies
“Qualitative Technical Data is a key enabler to
unlocking the frontier African basins and significant
contributory factor in establishing appropriate
commercial terms to attract investors”
Challenges and Enablers: Exploration in New Play and New Basins
Subsurface data of the Frontier inland basins limited and inadequate
Several basins are typically characterized by:- No seismic or coarse, vintage 2D seismic grid, interspersed with postage stamp size 3D seismic inadequate to delineate hydrocarbon accumulation
o Deep imaging and high-fidelity 3D seismic to fully image the subsurface and capture the detailed stratigraphic geometries of the subsurface
Special technologies are needed to preserve the fragile wildlife, agrarian and tourist industries.
For examples wireless geophones and non-explosives sources deployed for seismic acquisition
National Agencies must acquire data and/or incentivize Data Vendors as well as E&P companies to increase data acquisition spread & density Bid Packages should include mandatory data Purchase Countries need to ensure the Restoration of Sovereign data Rights
Integrated Technical Studies key to locate sweet spots and define the right exploration strategies
Overcoming the Data Challenge: Data Availability and Quality
Sub-Regional Data Integration Country and sub-regional efforts to integrate the different data vintages, particularly geological and geophysical data due to the continuity of the tectonic basins
Maintenance of National Data Repositories A National Data Repository (NDR) is a data bank that seeks to preserve and promote
a country’s natural resources data, particularly data related to the petroleum exploration and production (E&P) sector.
A fundamental reasons for a country to establish an NDR is to preserve data generated inside the country by the E&P industry,
Promote investments in the country by utilizing data to reduce the exploration, production, and transportation business risks.
Sub-Regional G&G Studies – There is need to strengthen cooperation between countries to share data and
basin knowledge to understand the petroleum systems that cut across national boundaries
with regional data integration, the countries academia can leverage knowledge by carrying out regional studies to delineate potential hydrocarbon fairways
Data Management & Sub-Regional Cooperation
Balanced Government Take The larger Government Take is, the less attractive the contract is to the IOCs
Investors are attracted to regions or countries with balanced government take. For example progressive tax system, and production based Royalty, with limited govt. participation
Fiscal system where , when Prices are high Govt. take increases, when low they drop correspond, Such as Sliding Scale factors
System that strike a “Balance” between Prospectivity and Contract terms
Minimizing Front-End Loading A lot of countries need to switch from a heavily front-end loaded fiscal system
Reduce upfront payment of signature Bonuses, finding Bonuses, and production bonuses
Attractiveness of Fiscal Policies
Prospectivity Contract Terms
Field Size Distribution Type of System
Success Probability Signature Bonus
Exploration Drilling Cost Cost Recovery Limits After Daniel Johnston – international Exploration Economics, Risk, and Contract Analysis
Analogous rift basins contiguous to the Benue Trough have proven significant hydrocarbon resources, proven reserves and prospectivity, to drive prospectivity of the Benue Trough
The play concepts and play elements of the hydrocarbon system along the Benue Trough are similar and sometimes represent continuous petroleum systems to the adjacent rift basins, however specific data such as availability of 3D as well as geological and integrated models of the hydrocarbon systems are needed to reduce and manage the key risks
Data availability, data access and quality data and the right fiscal policies that will provide incentive and promote exploration will be key enablers to prove and enable the realization of the significant hydrocarbon potential
Successful exploration and commercial strategies will change the Petroleum landscape of Nigeria and Africa
Concluding Remarks
My Co-Author, Adedoyin Lipede
Lekoil Management Team and The Technical Team
Acknowledgement