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Geo-Economic Performance Parameters for the Maracaibo and Oriental Basins

Background:

Venezuela has the richest hydrocarbon endowment in Latin America. An estimated four hundred twenty-three Bboe hydrocarbons in place have been discovered in conventional reservoirs outside of the enormous Orinoco Oil Belt. Even though Venezuela ranks as the 6th largest oil producing country in the world, less than eleven percent of the estimated hydrocarbons in place had been produced through 1995. Venezuela is the leading exporter of oil to the United States and estimates it must increase its oil production by almost two million bpd (to five million bopd) by 2005 if it is to retain its share of this important market. To achieve this production growth, Venezuela reopened its petroleum exploration and producing sector to outside investments during 1992. Four Apertura Petrolera licensing rounds have been conducted, three resulting in award of 25 marginal producing field blocks and one resulting in award of eight exploration blocks. Bid commitments, including bonuses and work plan investments, exceed $3.5 billion. Mixed results have been reported. Initial exploratory drilling failed to confirm a new large field. Operators of fields in the first marginal fields round, on the other hand, boosted production from 32,000 to 237,000 bopd before the end of 1995. Total added an estimated 305 million boe in place from deeper pool drilling at the Jusepin field. Lasmo, which bid $453 million for the Dacion block, reports it expects to increase production to 120,000 bopd by 2002 and add 20% to oil in place with very favorable full cycle costs of $4 per bbl.

Objective:

During this period of low oil prices operators must re-evaluate their investment strategies. With its large hydrocarbon endowment and opportunity to supply most of the future growth in U.S. petroleum imports, Venezuela’s potential is unquestioned. Significant farm out opportunities, acquisitions and new Apertura opportunities will emerge during the next few years. Operators must determine what producing trends and reservoirs and what mix of exploration versus development investment will yield maximum return on investment.

Report:

With this objective in mind, ITS Servicios Técnicos (ITS), a leading Caracas based consulting and data management services firm, has prepared a new study, Geo-Economic Performance Parameters for the Maracaibo and Oriental Basins of Venezuela. The study is based on ITS commercial well and reservoir database products, information from Venezuela’s Ministry of Petroleum and published literature. Research, analysis and presentations were conducted by Dr. Rafael Sandrea, President of ITS, and Dr. Joseph Forrest, a Houston based consulting geologist.

Report Contents:

The geologic setting, drilling and production histories and geo-economic parameters are presented for each basin as well as for key trends in each basin. Basin wide tabulations include exploratory drilling charts by year and depth, hydrocarbons discovered per wildcat well for each producing age. Hydrocarbons in place and cumulative production also are summarized for each producing age. Results of the Apertura are summarized and a brief overview of operating and finding costs is included.

Trends:

Maracaibo Basin data are presented for four trends: the Bolivar Coastal Fields, West Maracaibo, Tarra-Rosario and Sur del Lago producing trends. Oriental Basin data are presented for six trends: the Greater Oficina, North Monagas, Greater Temblador, Pedernales, Greater Anaco and Mercedes trends. The geologic setting for each trend is described and illustrated by maps, cross sections and stratigraphic charts. Exploratory drilling statistics, production, hydrocarbons in place and reservoir parameters are summarized in tables and charts by reservoir age and/or formation for each trend.

Reservoir Parameters:

An example of reservoir characteristics table for one trend in the Oriental Basin follows:
This product provides a compilation and synthesis of statistical parameters to assist companies in making realistic risk and economical evaluations of exploration and production opportunities in the Maracaibo and Oriental basins - the two most important petroleum areas in Venezuela. The statistics are based on analysis of field data assembled in the 'Reservoir Database of Oil and Gas Fields' and from a series of reports on specific fields released during 1995, 1996 and 1997. The study divides each basin into producing trends - 4 in Maracaibo and 6 in the Oriental. Each of these trends is then analyzed by exploratory well success rates (percentages & oil discovered), distribution or petroleum by geologic age, engineering characterization of producing reservoirs, trap types and field size distribution. Detailed data is presented for analog fields located in each trend. A summary is provided of all leasing activity in the recent Apertura Petrolera. The report is delivered on CD-ROM (Word & Excel) and is 150 pages long; it contains 62 figures, 51 tables and 42 field analog summaries.

Characteristics of reservoirs by geological age in the XYZ Area, Oriental basin

Reservoir Age	# of Fields in which Age is Productive	Reservoir Depth Range, feet (Average)	Size Range Of Individual Pools, acres (Average)	Net Pay Range, feet (Average)	Porosity (Max-Min) Range, % (Average)	API Gravity (Max-Min) Range, º (Average)	# of Pay Zones per Field (Average)
Pliocene	6	1,000-3,800 (2,842)	260-20,400 (4660)	110-500 (262)	19-40 (27)	10-30 (17)	1-20 (6)
Miocene	7	1600-4500 (3557)	80-17,000 (4426)	55-1020 (228)	15-27 (24)	15-33 (25)	1-24 (7)
Oligocene	14	2800-16,900 (11,403)	50-8900 (2474)	10-850 (373)	3-39 (20)	10-39 (27)	1-8 ( 4)
Eocene	3	4500-15,000 (10,767)	1100-26,000 (9433)	100-250 (10,767)	8-14 (12)	20-38 (28)	1-5 (2)
Paleocene	1	9200	19	30	6	17	2
Cretaceous	6	1700-18,000 (13,217)	600-14,700 (5183)	25-980 (415)	9-31 (13)	18-39 (30)	2-5 ( 3)

Additional and more detailed reservoir parameters are presented in an appendix containing tables for type or analog fields for each trend. Parameters such as original oil formation factor, bubble point pressure, porosity, permeability, initial oil saturation, original reservoir pressure, net pay thickness, hydrocarbons in place, cumulative production and daily producing rate as of January 1995 are presented for the principal producing reservoirs in each field. Representative well tests with daily oil producing rate, API gravity, choke size, flowing pressure, GOR and %S&W also are tabulated. Data for 42 key producing fields are included.

Cumulative Frequency Plots: A key feature is the presentation of hydrocarbons in place for producing fields in each basin and trend in cumulative frequency charts. These charts show the median filed size in each trend. By combining cumulative frequency graphs with wildcat well success, users also can determine probabilities of finding fields of a specific target size in each basin or trend. An example for a trend in the Oriental Basin follows:

 

Field Size Distribution - Cumulative Frequency Plot

Summary: At this critical time of low oil prices, operators and countries must reassess their petroleum investment objectives and strategies. The availability of this featured study, Geo-Economic Performance Parameters for the Maracaibo and Oriental Basins of Venezuela, is especially timely. Venezuela has large hydrocarbon resources and serves a growing market as the largest supplier of crude oil imports to the U.S. Some operators are curtailing operations. Others are shifting strategies. Exploit versus explore. Which trends best meet economic objectives? This study provides important drilling, production and reservoir data – the geo-economic parameters that are required to analyze E&P opportunities – for Venezuela’s key producing trends.

Product Description: The study is available in Microsoft Word files and tables on CD-ROM and generates 106 printed pages. All maps, graphs and data in the report are digital and can be extracted for reprocessing or reproduction in licensee’s proprietary work products. A bibliography of cited references is included.

Investment: This important data compilation and study presents a unique value that can be licensed for an investment of only $9,950 (U.S.).

For more information please contact: Rafael Sandrea (rsmail@its.com.ve);