RegionalTectonics,Structure,andtheHistoryofPetroleumExplora<onintheUnionof

Myanmarfrom905ADtoPresentRemainingExplora/onPoten/al

Sco$EThornton*SEAPEXHouston23June2016

sethornton@aol.com+1713.876.6433

DBATheBurmahOilCompanyLimited*

2

Tectonic&StructuralFramework

APerMorley,2002

3

SagaingFaulthas330-460kmofRightLateralOffset.330kmmostlikely(WinSwe)

•  LowerIrrawaddy,Minbu(CentralBurma)andChindwinbasins:Ter^arydeforma^onfromcollisionofMyanmarplateswithIndian&AsianplatestoNorth&ShanPlatetoEast

•  AndamanBasin:backarcspreading

•  ArakancoastandArakanmountains:Ter^ary&Cretaceousflysch

•  Rakhineoffshore:accre^onaryprismon-trendwithChi$agongFoldBelt

MyanmarBasins

4 PGSNopec,1994

CrustalThicknessfromGravityInversion

Crustalthicknessfromgravityinversionusingalithospherethermalgravityanomalycorrec^onoverlainontoshadedrelieffree-airgravityanomaly,(A)totalcrustalbasementthickness,(B)residualcon^nentalcrustalthicknessi.e.totalcrustalbasementthicknessminusthicknessofthenewvolcaniccrustproducedduringriPingandbreakup.A=AlcockRise,CB=CentralBasin,S=SewellRise.

Morley&Alvey,2015

TotalCrustalBasementThickness

ResidualCon^nentalCrustalThickness

6

SagaingFaulthas330kmofRightLateralOffsetfromsolidfieldworkevidenceofpiercementpoints,matchinguniqueoutcrops,aswasdoneontheSanAndreasFault(WinSwe,pers.comm.&MyintTheinetal.1991)

7

SWChindwin CentralBurma L.BurmaIrrawaddyOnshore

Racey&Ridd,2015Harun,etal.2014

BasinsoftheCentralBurmaDepression

OilProduc<on

GasProd.

SourceRocks

8

SourceRock:OilTypingbyUnocal,1994

31Miocene-EoceneSeeps,1coal&1Eoceneresin

WidevarianceinAPI,sulfurandDeltaC13

Causedbydifferentamountsofbiodegrada^ononasinglesource.

SourceisdeepPaleogene,adeepresinousEocenecoal/shalesource

OldestEocenereservoirsfillfirst,andyoungestMiocenereservoirsfilllast

Leastmatureoilsareinoldestreservoirs

Surfaceseepageandnear-surfaceoilcouldresultfromsurfacetrapsthatarefilledtospillpoint.

9

CentralBurmaDepressionExplora^onHistory

•  Hand-dugwellsinsince905ACpossiblymadeoriginallybyArakaneseslaves,whohadbeendoingitforyears.Firstexportsin1855byindigenouscompaniesfromYenangyaungtoIndiaforburninginlamps.

•  Firstmodernwellin1887onYenangyaungan^clinebyBurmahOil:surfacean^clinewithmanyhand-dugwells.

•  Subsequentexplora^onbyBurmahOil:surfacemapping.

•  UnocalacquiresallofCentralBurmaBasinoutsideoffields,startsairphotointerpreta^on,sec^onmeasuring,datagathering:UAungDinistraine-----ChiefGeologistofMOGEwhenIwasthere

•  MOGEexplora^on:aeromagne^cs(MannField),surfacemappingandlimitedseismicdata.

•  OnshoreBidRound(1989):compe^^vebiddingbysuper-majors,independentsandAsiancompanies

•  Unocalhadthemostcompe^^veblock,beatoutExxonandIdemitsu•  Essen^allyallleasesheldtoday,mostlybysmallcompanies

10

CentralBurmaBasin:SurfaceAn^clines

APerRacey&Ridd,2015

Mt.Popa

Si$aungFaults

ShanPlate

PaganYoma

Irrawaddy

Gwegyo-TetmaYenangyat-Ayadaw

Yenangyaung

Yedwet

Mann

Htaukshabin

Peppi

Ngalaingdwin

ArakanYoma

TransferFault

Chauk

Si$aungFaults

11

TheAn^clinalTheoryBorninMyanmar

In1855,anAnglo-Irishgeologist,ThomasOldham,workinginBurmaasageologistfortheIndianGeologicalSurvey,pointedoutthattheoilfromtheYenangyaungfield,thenbeingproducedfromwellsdugbyhand,wasconnectedwiththehighestpartofanupfold—oran/cline—intheearth’sstrata.

In1861,asimilarobserva^onswasmadebyanAmericangeologistinWesternVirginia,EbenezerBaldwinAndrews.

LatercalledtheAn<clinalTheoryofPetroleumAccumula<on

SuggestedYenangyatan^clinewasprospec^vein1855,drilledin1891byBurmah

12

Pumpinghand-dugwells

Pumpinghand-dugwellsHand-dugWellsFirstObservedin1755200FamiliesWorking(Yenangyuang)

520Wellsin1797 Corley,1983Longmuir,1998BaKyaw,1982

BurmeseOralHistory:firstproduc^on905AD~1855

13

YenangyaungField:New&Old

LocalOwners(Twinzas)ofHand-dugWellsDeliverCrudetoBurmahOil

Produc^onbyBurmahpeakedin1918@16,000bopd

PeguJars:eachheld20kgofcrude

Corley,1983

14

Oldvs.New:CableTool&HandDug

Corley,1983

CrudeTransport:YenangyaungField

Corley,1983

~1895

Safelyhanddrillingwithahelmet

Diggerwearsahelmet:airpumpeddownmanuallyfromsurfacehelmetmadefromkerosenecan.

1912:PhotobyPascoe

Corley,1983

17

Yenangyaungin1915:over4,000Wells

BurmahOilCompanyphotograph,courtesy

ofBPArchive

APerRacey&Ridd,2015

18

LocallyMadeRotaryWellvs.Hand-dug

TheIrrawaddyTimes,2013

Forseveraldecadeshowever,groupsofpoorfamilieshavecomeheretoexploreforoilandexploitanyfinds.Iftheycancollectoiltheyareobligedtopaylocallandownersaconcessionfee,whichissetatbetweenUS$500to$2,000fortheuseofaroughly20square-meterplot.

19

CentralBurmaBasin:upto27paysands

MostProlificOilBasininMyanmar:Four100MMBOEURfields

APerRacey&Ridd,2015

20

CentralBurmaBasin:SurfaceAn^clines

Mt.Popa

Si$aungFaults

ShanPlate

PaganYoma

Irrawaddy

Gwegyo-Tetma

Yenangyat-Ayadaw

Yenangyaung

Yedwet

Mann

Htaukshabin

Peppi

Ngalaingdwin

ArakanYoma

TransferFault

Chauk

DEM

Pagan

UnocalKandaw1(1991)Oilandgasshows

APerRacey&Ridd,2015

21

YenangyaungAn^cline:WhereItAllBegan

Produc^onPeakedin1918At17,000BOPD

BurmeseexportedFirstcrudetoIndiaIn1855,beforeBurmahOil

EUR=200MMBOCum(1992)=187

APerRacey&Ridd,2015

EarlyHand-dugWellProduc^on

33–38APIandcontainsaround7.5%wax(candlemaking)

22

YenangyatAn^clineFields:surfacemapping

APerRacey&Ridd,2015

•  MostimportantfieldInBurmahOil’sPoruolio•  YenangyathadsomeHand-dugwells,butChauk/Lanywaiden^fiedbysurfacemapping•  EUR(Chaukonly)=143MMBO•  Cum(1992)=~134

IrrawaddyARiverRunsThroughIt

•  Historicseepsinarea,butnosurfaceexpression

•  Discoveredbyaeromagne^csurveybyMOGE

•  Produc^onbeganin1972

•  EoceneorolderNNW–SSEbasementfaultwhichwasreac^vatedasadextralstrike-slipfault.

•  1998:86MMBOCumwith174MMBOEUR

•  Suprathrusttrap,subthrustisoverpressured(20lb.mud)

MannField:seismicsketch

23

39API,25pays

WithnearbyHtaukshabin:491MMBOEUR

APerRacey&Ridd,2015

24

ChindwinBasin:MapandStra^graphy

APerRacey&Ridd,2015

IndawYenan

Patalon

Hand-dugwellsS^llproducing28-35APIfromEoceneSandstones

DEM

Schwebo-Monywa

Hukawng

Indo-BurmanRanges

(ArakanYoma)

AssamBasin(India)

SchweUyu(Amoco)

25

DrilledTrapsInChindwinBasin:Compressional

OilandGasinEoceneSandstonesButTight,ShaleHeavingProblems

Drilledin1925

SmallReserves:7MMBCand900BCF

Delinea^onWellByChinese

Drilledin1918

Produced1.2MMBOUn^ldestroyedduringWWII75WellsDrilled,eachproducing10-12BOPD.Smalllocalrefinery.

ProblemswithoverpressureinlaterwellsdrilledbyBurmah,YukongandMOGE.Oneblowout.Mudvolcanoesatsurface.

Early–MiddleMioceneSandstones

Whyhasthislargebasinyieldedsoli$leoil?1.  Chargelimited:structuresunderfilled

2.  Disrup^onoftrapsbytectonics(preserva^on)3.  Tightreservoirs

APerRacey&Ridd,2015

26

MajorTectonicBelts&Ter^aryDepocenter

APerOoal.,2015

27

EocenePaleoenvironments:Chindwin

APerOoal.,2015

SOURCEROCKSFOROIL RESERVOIRROCKSFOROIL

GREATSEQUENCEBOUNDARY

PaleoenvironmentsarealldeltaicandprodeltaicFortheMyanmarbasinseastoftheIndo-Burman

Ranges(ArakanYoma)

28

HukawngBasin:Fron^er(NobelOil-Russia)GeologicalMapwithWells Stra^graphy

Causeoffailureof4wellsbyMOGEinHukawngisproblema^c(Thornton):

•  Sourcerockspresentinarea:~1.6%,lean,althoughcoalyM.Cretaceousrocksnearbyshouldbebe$er.

•  Drilledonvalidtraps?•  Werethereshows?Alongmigra^onpath?•  Reservoirsgoodtoverygood:10-22%

porosityforOligoceneandEocene•  Seals?

Loca^on

CircularBasininAThrusted/StrikeSlipSexng

APerRacey&Ridd,2015

29

Schwebo-MonywaBasin:ChargeLimited?

Broadplainatsurface

Rankfron^er

OnTrendwithPeguYomaFoldBelt

OnlyAungzeyaan^clinehassurfaceexpression

Ter^arytooproximaltoprovenanceforsourcerockdevelopment?

ProvenanceAreaFluvialTransport

ToWest

SagaingFault&HorseTailFaults

Mandalay

Pagan

Sagaing

APerRacey&Ridd,2015

VisitedinthefieldByUnocalin1961&1989

•  Long,narrowan^clinescutbystrike-slipfaults

•  Discoveredbeneathmudvolcanoeswithgasseeps

•  Drillingmostlyin1904-1980

•  Firstwellswithlimestonecontaininghydrocarbonsin

LowerBurma(Pyay)Basin:VerySmallOil&GasFields

APerKidd&Racey,2015

Pyay

Pyaye

OnshoreIrrawaddyBasin

APerKidd&Racey,2015

PeguYoma

Si$aungBasin

ShanPlateau

Indo-BurmaRanges(ArakanYoma)

SagaingFault200-300kmoffset

(UWinSwe,pers.Comm.)

Yangon(Rangoon)

32

OnshoreIrrawaddyBasin

BuriedPopa-LoimyeMagma^cArc

LowerBurmaBasinSmallShellGasTestsin1991

AllGasDiscoveries,exceptIndaing,areabovetheburiedPopo-LoimyeMagma^cArc(Yadana&Aungsinkha,also) APerRacey&Ridd,2015

33

OnshoreIrrawaddyGasDiscoveries

Shell

Basement

18M.-U.MioceneandPliocenegassands

Porosityof20-25%,gross=180m.

450BCFBCFEUR(NyiNyiSoe,2014U.N.—100BCFEUR

Currentlyproducing(2015)5.94MMSCD&29BCPD

MainsourceofgasforRangoon.259BLiquids/day&19MMSCD

Basement

PeguYoma:impressivefold-thrustbeltwithexposedMiocene.Noseeps.Very/ghtrocks(Unocalfieldwork,1989).Ques^onablecharge,hammer-ringingsandstones,con^nuedstructuraldeforma^on.2wells:Petrocanada/UnocalandBHPBilliton.Gasshowsinvery^ghtsandstonesinPetrocanada/UnocalwellinnorthernPeguYoma.

SiHaungBasin:deepsedimentaryfill,carbonateplay,2wells,noshows(?).Presumablycarbonateplay.Grosslyunderexplored.

APerRacey&Ridd,2015

34

OffshoreWestExplora^onHistory

•  LocalArakanesehand-dugproduc^onsinceatleast1850s:drillednearseepsandmudvolcanoes.

•  Firstmodernwell1878—11yearsbeforethefirstmodernwellinYenangyaung.OilSprings,Ontario—1858.

•  Severalsmallcompanies,includingtheAustralianOilCompanyhadexplora^oneffortsonshore:smallproduc^onwhichdeclinedrapidly.

•  1975:6wellsbyJapanese,1byTotal1byCi^esService.4blocks(A1-A4,areawhereShwe,ShwePhyuandMyagroupofgasfieldslaterfound).Nosuccess.

•  Daewoo:tremendoussuccess,followedbyastampedeofcompaniesrecently

35

RamreeIsland,RakhineCoast

• Earlyhand-dugwellsalongtheRakhineorArakanCoastwerelocatedatseepsonsurfacean^clines• Firstmechanicalwellsinearly1880sbyBarangahOilandArakanExplora^on,rapidproduc^ondeclines(1000Pwells)• Maximumini^alflowrate:30BOPD

Corley,1983

1862Sketch

36

“Modern”Produc^on:RamreeIsland

VeryLightOil:refinedlocallyandsoldtomotorbikeandcardrivers.S^ll5,000tradi^onalwellsonRamreeIsland

Wellsgoupto500P.

Na^onalGeographic2013

“Thecostofdrillingequipmentishigh,upwardsfrom$400,andissharedbyfivetosevenhouseholds,”

OilMountain,RamreeIsland,Rhakhinecoast

37

RakhineOffshoreStructureandStra^graphy

IHSEnergyinBasuetal.,2010

Shwe

Basuetal.,2010;aPerSanLwinetal.,2004

andNeiremetal.,2003

Reser.Source

38

ShweGasFieldCluster:9.1TCFProvenReserves

Myanmar’sBiggestGasFieldComplexMOGEPresenta^on,2011

Trans-MyanmarPipelineRoute

Shwe1&1A

39

OffshoreSouthExplora^onHistory1

•  Offshoreexplora^onstartedin1969—fundedbyJapanese.

•  Drillingstartedin1972byMyanmarOilCo.(NOC).

•  YadanaFielddiscoveredin1972byabadblowouton3rdwell.TransoceanRigEWThorntonburnedandfellintothecrater.

•  1973:GulfofMartabanservicecontractoffering.4consor^a,19wellsdrilled,onlyonetestedgas.Allforeigncompaniespulledoutby1977.

40

OffshoreSouthExplora^onHistory2

•  1981-1986-:GulfofMartaban—Japanesefundedseismicanddrilling.Yadanadiscoverywell(3DA-XAsuccessfullytested.1explora^onwells,and2appraisals.Severaldiscoveries.

•  Gasdevelopmentplannedin1986—deferredduetothecountry’spoorfinancialposi^on.

•  Unocal(me)evaluatesYadanafordevelopment,es^mated5.3TCFEUR

•  1992:YetagunbyTexaco/Premier.2007--460MMCFPD

•  1992-1993:Yadanadelinea^ondrillingbyTotal/Unocal.

41

OffshoreSouthExplora^onHistory3

•  1996:SeinGasField:Total/Unocal.NearYadana.

•  1997:Zaw^kaGasField,Arco

•  1998:StartupofYadanaproduc^onbyTotal/Unocal/PTTEP/MOGE.Commercialproduc^onin2000.2007–759MMCFPD.YetagunandYadanacombined–12,000bcpd.

•  2013-present:newleasesbyforeignoilcompanies:resultsyettobeseen.

42

RegionalStructureandFields:OffshoreSouth

Schema^cSec^on

APerRaceyandRidd,2015

43

Moa$ama&TanitharyiRegions:Fields&Plays

LowerMioceneCarbonatePlay

U.Miocene–PlioceneClas^cPlay

LateOligo.–E.Mioc.shallowmarine

andriPclas^cPlay

Yadana:Inmid-2014thefieldwasproducing.700MMscfdwitharecoverableresourceof6.41TCF

Yetagun:4.2TCF?(MOGE,2011)

RegionalTopSealYadanaField Zaw^kaField YetagunField

Magma/cArc

BackArcBasin

APerRaceyandRidd,2015

44

YadanaandSatelliteFields

Yadana&SeinNilarbelievedtoBedeeperwater

M.Mioc.limestone

NotethattheearlystructuraldevelopmentoftheYadanastructurecomprisedtwoseparateUpperOligoceneLowerBurmanLimestonebuild-upsonthevolcanicbasementhigh.Thesewerethencoveredandthereliefbetweenthemin-filledwithclas^csedimentspriortothedevelopmentofthemorelaterallycon^nuous,LowerMioceneUpperBurmanLimestonereservoir.

Badamyar

RegionalTopSeal

APerRaceyandRidd,2015

45

SeinandYadanaGasFields

TotalinMOGEPresenta^on,2011

SeinFieldFaulted3WayinUpperBurmanLimestone,LowerMiocene

TopSeal:LowerPlioceneMarineShales(MFS)

YadanaField4WayinUpperBurmanLimestone,LowerMioceneTopSeal:LowerPlioceneMarineShales(MFS)

46

CarbonatePlayDistribu^on

Distribu^onofinferredUpperOligocene–LowerMiocenecarbonateplay(s^ppledpa$ern)andtheareallymorelimitedLowerMioceneUpperBurmanlimestoneplay(brokenline)intheYadanaHigh/M8Higharea.

CarbonatesS^ppled

APerRaceyandRidd,2015

47

YadanaandM-8Highs

APerRaceyandRidd,2015

NoteRightLateralStrikeSlipFaul^ngT=towards,A=away

T

T

A

A

YadanaFault

YadanaFault(YF)AlsoHasDipSlip

48

Zaw^ka-1GasDiscovery(Arco)

MOGEPresenta^on,2011

7GasReservoirs1.44TCFRec,SoeMyint,2012

49

YetagunGasFields:4.16TCF

MOGEPresenta^on,2011

50

ExamplesofProspectsinSouth(M16-18)

ChintheProspect(M-17) HintharProspect(M-18)

GaloneProspect(M-16)NagarProspect(M-16)

16

17

18

Indonesia

AllProspectsinLessThan500mWaterDepthAllTer^aryPlays

MOGEPresenta^on,2011

Reliance

Reliance

51

Today:PeakofExplora^onforCountry1988-1989:MyInvolvement

BlockF

3CA(Yadana)

Courtesyof Courtesyof

52

Wrapup1

•  Oilandgasarefoundinfore-arc,backarcandback-arcspreadingstructural/tectonicregimes.

•  Besidescompression,strikeslip-faul^ngisprevalentonallstructuraltrendsinMyanmar.

•  Environmentsofdeposi^onofreservoirsarediverse.

•  Sourcerocksareabundantand“mul^storied:

53

Wrapup2andExplora^onMaturity

•  Injec^tesinturbiditelobes(RhakhineOffshore):muchpoten^alremains.Emerging.

•  Deltaicsandstoneswitheasternprovenance(CentralBurmaDepression).Onlydevelopment.Explora/on:senile??

•  Carbonatebuildupsonmagma^carchighs—giantgasfieldsinoffshoreIrrawaddyBasin.Morepoten/alremains.

•  DeltaicandturbiditesandstoneseastofAndamanSeaBackArcspreadingarea.Morepoten^alremains.

RaceyandRidd,2015:amustbuyifyouareworkingon

Myanmar:PetroleumGeologyofMyanmar,

Geol.Soc.,London,Mem.45

ThankstoEcopetrolforSupportinGivingThisPaperandPayingMyWaytotheAAPG

ICE,Melbourne,AUS

RoominSchwadegonPagoda,Rangoon