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CHAPTER I INTRODUCTION
1.1 BACKGROUND
The Sepanjang and Pagerungan areas in NE Java Sea Basin has been one of the most
prolific petroleum provinces in Indonesia, with production starting in 2000. The most famous
is Pagerungan Gas Field with cumulative production is estimated to be about 2 TCF, with a.
However, production has stopped in recent years. In addition, several oil and gas fields are
still producing. There are bout 5 oil fields (Ngimbang Field, North Pagerungan Field, Rancak
Field, Sepanjang Island Field and West Kangean Field) and 3 gas fields have been on
production (Pagerungan Field, West Kangean and Terang and Sirasun Filed), while several
wells made significant oil or gas discoveries.
The Sepanjang Onshore & Pagerungan Utara Offshore (SPUO) Block is located about
300 km to the east of Surabaya, East Java Province. Physiographically, this block lies in the
Central Trough intervene by Northern Basin in the north and Southern Basin in the south.
Central Trough has proven to be prospective in hydrocarbon occurrences. Since, there are
already two small old oil fields inside the block, named North Pagerungan Field and
Sepanjang Island Field, the petroleum system proved to active in the area. North Pagerungan
Field and Sepanjang Island Field were suspended oil fields which was discovered and start
producing in 2000’s. North Pagerungan Field and Sepanjang Island Field was developed by
EMP and Mitsubishi (?) before being suspended in 2020’s, with the main producing
reservoirs derived from the Ngimbang Carboante Formation. To date the block has had about
4 wells penetrations, where 3 wells were drilled on Sepanjang Island Field.
The North Pagerungan Field and Sepanjang Island Field are in the Sepanjang Onshore
& Pagerungan Utara Offshore (SPUO) Block of about 130 Km Sq, and it is suggested that
there are still remaining reseve in North Pagerungan Field and Sepanjang Island Field from
existing structure. Since the block is a new PSC Block awarded in Early 2022, and after
being suspended for several yeras, it need to be evaluated again in terms of remaining reserve
and economic analyses as well as the strategy of Field Development. In doing so, it need to
be done through static and dynamic modelling.
For this purpose, the study is proposed to calculate remaining reserve and economic
analyses, in order to start with field development in those two oil fields. This proposal is
submitted with title INTEGRATED GGRE APPROACH TO IDENTIFY REMAINING
RESERVES AND ECONOMIC ANALYSES FOR FURTHER PLAN
DEVELOPMENT OF THE NORTH PAGERUNGAN FIELD AND SEPANJANG
ISLAND FIELD.

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1.2 STUDY AREA
The Sepanjang Onshore & Pagerungan Utara Offshore (SPUO) Block is located in the
NE Java Basin. Administratively, the block is located in the eastern part of the East Java
Province, Kangean District with total acreage 130 Km Sq. The SPUO Block consists of 2
(two) existing fields called as North Pagerungan Field of about 80 Km sq and Sepanjang
Island Field of about 50 Km sq (Figure 1.2) , that has produced since year 2000’s operated by
EMP Kangean (Figure-1.1). However, due to the fields was idle, then, the fields were
awarded to PT. MGA Utama Energi in the end of 2021. North Pagerungan and Sepanjang
Island Fields were considered as new oil producing area in Northeast Java Basin and is
surrounded by various producing fields and discoverey wells, such as; Ngimbang Field,
North Pagerungan Field, Rancak Field, Sepanjang Island Field and West Kangean Field, and
also by depleted and abandoned Pagerungan Field that has produced of about 2 TCF (Figure
1.2).

Figure 1: Location of the Sepanjang Onshore & Pagerungan Utara Offshore (SPUO) Block
consisting of 2 (two) small oil old fields; North Pagerungan and Sepanjang Island Field, and is
surrounded by oil and gas fields

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Figure 1.2: Location of North Pagerungan and Sepanjang Island Fields, and is surrounded by
oil and gas fields.

1.3 OBJECTIVES
The purpose of this study is to integrate Geological, Geophysical, Reservoir and
Economic Analyses to identify Remaining Reserve and economic analyses for further Field
Development of the North Pagerungan and Sepanjang Island Fields . One of the main target of
the evaluation is to define the productive zone that need special tretament in order to increase
the production, as well as the posibility to put infill drilling and workover in certain area and
layers.
Geological Modelling, advanced petrophysical analyses, static modelling and
dynamic modelling will be done. In addition economic analyses will be carried out on the
basis of field development scenario adjusting with capex and opex expenditures.

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CHAPTER II DATA AVAILABILITY
All information regarding data availability of the area consisting of seismic and well
data is accessed through data base owned by Patra Nusa Data (PND), besides from report as
well. This official data will be used on the main data sets to be interpreted to know condition
of the area.
 2D data of the SPUO Block in SEG-Y format for some Lines (prefer in project
format if available)
 Stacking & migration velocity of this 2D (ASCII)
 3 Wells data; Wireline log for each well to be involved + log header (ASCII, LAS,
LIS, DLIS). This includes conventional log, dipole sonic and imagery log (EMI, FMI
or DAC).
 Check shot / VSP pairs (ASCII).
 Initial pressure measurements (RFT, DST) from offset field.
 Core rock mechanics (bulk & Young modulus, Poisson Ratio, etc.), core permeability
and fluid properties from offset field.
 Production history from offset field (ASCII)
 IVEL Data

2.1 SEISMIC AND WELL DATA

The amount of seismic lines is about 100 lines with total length is approximately
1,000 km. Whereas, there are several well data available. The seismic lines and well data
within the study area will be used to assess the subsurface configuration (Figure 2.1).

Figure 2.1: Seismic and Well Basemap of the Sepanjang Onshore & Pagerungan Utara
Offshore (SPUO) Block consisting of 2 (two) small oil old fields; North Pagerungan and
Sepanjang Island Field, and is surrounded by oil and gas fields.

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CHAPTER III REGIONAL GEOLOGY
3.1 TECTONIC SETTING
The East Java Basinal area is considered as a back-arc basin of the Java Island Arc
system in the active margin of the Sunda continental crust. The back-arc basin of East Java
Basin consists of three parts (Figure 3.1); The Northern Basin, The Central Trough and The
Southern Basin with strong E-W orientation. In the western part of East Java Sea showing the
Sakala Fault in the north and Sepanjang Fault in the south is the two main fault systems
reactivated in Miocene to Pliocene causing transpressional structures and inversion as
probably continuous in the East Java Sea.

3.1.1. Major Tectonic Element

Based on geological and geophysical data, tectonic element of the North Eastern Java
Basinal can be group in to three major tectonic trends (Figure 3.2 and 3.3) they are: NNE -
SSW Fault Trend, E-W and NE-SW trending faults.

3.1.2 NNE – SSW Fault Trend

The NNE-SSW trend is particularly expressed in Java Sea, but it can be recognized on
the onshore Northeast Java Basin. It consists of a set of basement normal faults due to rifting,
resulting into rift basins. Onshore this trend is also recognizable, but tends to swing more
toward WNW - WSW.

3.1.3 E - W fault Trend

E - W Fault trend is dominated by strike-slip faults and confined mainly to the so-
called RMK (Rembang-Madura-Kangean) Fault Zone, which separates the Java Sea shelf
area from the onshore NE Java Basin. This fault zone consists of two main wrench faults and
extends from Rembang area along the coastline into northern Madura and further east into
Kangean Island, where the northern fault is known as the Sakala Fault, and the southern fault
as the Sepanjang Fault. This fault zone caused inversion of the structure, and several uplifted
blocks are recognized within the fault zone, such as the Tuban High and Kangean High. In
Rembang area the E - W trending faults appear to merge with the NE - SW trending faults.
E - W Kendeng Fold-thrust belt trend, well expressed on the onshore NE Java basin,
and separates the NW Java Basin from the Java magmatic arc, the so called Java Geanticline
of van Bemmelen (1949). This fold-belt consists of sedimentary strata different from those in
the NW Java Basin. The Tertiary strata consist of volcaniclastics turbidites and debris-flow

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deposits, which have been folded and thrusted. It can be considered as the back-arc thrusting
of the island arc system.

3.1.4 Basement Configuration

Pre-Tertiary basement depth slopes gradually toward the south, with steeper
inclination in the onshore NE Java Basin, and presumably plunging at depth below the
Kendeng Trough. Basement configuration in the NE Java Basin area consists of NE - SW
trending fault blocks, separated by narrow grabens with syn-rift deposition. The Pre-Tertiary
basement generally consists of metamophic sediments with granitic intrusions.

Figure 3.1 Plate tectonic setting of SE Asia showing East Java Basin as back-arc basin (Hall,
1996)

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Figure 3.2 The Structural setting of the East Java Sea Basin consisting of Northern Basin,
Central Trough and Southern Basin with strong E-W orientation. In the western part of East
Java Sea showing the Sakala Fault in the north and Sepanjang Fault in the south is the two
main fault systems reactivated in Miocene to Pliocene causing transpressional structures
and inversion. East Java Deep Water is located in the Southern Basin of East Java Sea
Basin

Figure 3.3 Structural settings and tectonic map of the North East Java Basin and showing the
position of SPOU Block in the Central high and Northern Platform.

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3.2 REGIONAL STRATIGRAPHY
3.2.1 General Stratigraphy
The regional stratigraphic setting of the Northeast Java basinal area is related to the
tectonic development of the area. The description below will be given from tectono-
stratigraphic point of view, while some of the sequence stratigraphic analyses will be referred
to the lithostratigraphy of the area. The Pre-Tertiary development of the area is not well
understood, but it is best comprehended using terrain analyses. East Java basinal area is
generally considered as back-arc basin of Java-Sumatra island arc system. However, from
tectono-stratigraphic point of view, the back-arc setting is only a Neogene development.
During Paleogene, East Java basinal area was the scene of rifting, and numerous rift basins
developed with syn-rift sedimentation. The Northeast Java basinal area must be considered as
composite basin, or a polybasin. It consists of at least two stacked basin types: Paleogene Rift
basins and Neogene (Post-rift) back-arc basin.
The stratigraphic acoustic units within the province can be divided into four major
units, they are; Basement unit, Pre-rift sediments, Syn-rift sediments and Post-rift sediments
(Figure 3.4).

3.4.1 Basement unit

The absence of reflections represents acoustic basement and this is the lowest seismic unit.
Correlation with Well L46-1 suggested that this unit can be correlated with the
metamorphosed graywacke. The base is poorly imaged seismically. The top of the unit is
marked by Horizon A on the profile. Contact with the overlying sediments can only be seen
clearly in some locations, being difficult to see and sometimes is obscured by multiples in the
rest of the section and make identification of the contact between acoustic basement and the
overlying sediment more difficult.

3.4.2 Pre-rift sediments

The pre-rift sediment unit, which is regarded as the oldest sedimentary unit at the eastern
margin of Sunda Shelf, can be correlated with the Early Cretaceous sediments from well L46-
1, which consisted dominantly of mudrock with interbedded siltstone and sandstone. The
reflection configurations strongly suggest folding and thrusting, indicating a compressional
regime.
The top of the unit is marked by Horizon B and the contact with the overlying sediments
is an erosional truncation (angular unconformity), showing parallel bedding with moderate

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continuity and medium amplitude. The reflection configuration from SP 3350 to SP 4230
clearly shows folding associated with thrusting. The top of this unit is marked by Horizon B
and the contact with the overlying sediments is along an erosional truncation (angular
unconformity. Its top is characterized by Horizon B and the contact with the overlying
sediments shows an apparent erosional truncation (angular unconformity).

3.4.3 Syn-rift sediment unit

This unit can be correlated with the Early Eocene-Late Eocene sediments from well L46-1.
The unit is characterized by parallel-subparallel reflections with moderate continuity and
medium to high reflection amplitude. Following the criteria of Vail et al. (1977), these
reflection characteristics are interpreted as indicating a shelf depositional environment, whilst
environmental facies interpretation typically indicates deposition in a shallow marine shelf
area. The unit was deposited in a complex system of tilted horsts and grabens. Well L46-1
indicated that the lower part of the sequence was deposited in a deltaic, changing gradually to
bathyal in the upper part, again consistent with rift sedimentation. Basin subsidence can be
recognised by the onlapping of horizontal younger sediments onto the carbonate built-ups
which are interpreted as having been deposited on a relatively stable platform.
Most of the structure observed shows the presence of high angle normal fault forming
horst and graben. Some of the faults might relate to the reactivation of pre-existing structure of
the Cretaceous age.

3.4.4 Post-rift sediments

This unit can be correlated with the Upper Eocene to Lower Pliocene sediments from well
L46-1. The unit consists of several seismic sequences and is characterised by parallel-
subparallel bedding, with low-medium amplitude and fair to good continuity. This unit
presents a lateral change in seismic facies with the reflection configuration becoming wavy-
subparallel, the continuity of the reflectors becoming poor and the reflection amplitudes
becoming low. These reflector characteristics are classified as indicating a shelf to shelf
margin depositional environment and suggest uniform rates of deposition on a uniformly
subsiding or stable basin plain (Vail et al. 1977).
The structure is almost not seen clearly as they are overlapped with younger structure.

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3.4.5 Syn- inversions
This unit can be correlated with the Middle Miocene to Pliocene sediments. This unit
indicate the timing of inversion in the East Java Deep Water. The structure developed mostly
showing low angle thrusting and normal fault as a result of reactivation of existing structure.

Regional stratigraphy
coloumn across the North
east Java Basin. Showing
the HC discovery on the
Eocene interval (L46-1,
Pagerungan-1, West
Kangean-1 and JS 53A-1)

Rift Basin sediment was

identified to be one of the
possible source rock
which is supported by
L46-1 HC discovery on
Ngimbang – PreNgimbang
interval

Figure 3.4 Chronostratigraphy Column of North East Java Basin (Pireno et al., 2005
modified from Mudjiono et al., 2001)

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CHAPTER IV. SCOPE OF SERVICES
Outline of the scope of services are as follows (Figure 4.1):
4.1 Geological and Geophysical Study
4.1.1 Evaluation of Existing Geological and Geophysical Reports
4.1.2 Evaluation of Regional Geology; tectonics, structure and stratigraphy
4.1.3 Evaluation of Petroleum Systems and their effectiveness.
(Reservoir, Source Rock, Maturity/Basin Modeling, Migration and Traps)
4.1.4 Generate Regional Well Correlation, Structure and Stratigraphic Cross-sections
4.1.5 Develop Regional Geology Synopsis
4.1.6 Develop Exploration Play Concepts
4.1.7 Seismic Interpretation and Mapping
(Picking Seismic Horizons/Faults, construct Time / Depth Structures map)
4.1.9 Seismic Attribute analyses on prospect reservoir.
4.1.9 Petrophysical analyses
4.1.10 eological Modelling

4.2 Reservoir Engineering Review

4.2.1 Data Collecting
4.2.2 Reservoir Characteristics
4.2.3 Calculation of Reserve decline

4.3 Production Engineering

4.3.1 Data Collecting
4.3.2 Field production Profile

4.4 Static Modelling

4.4.1 Data Collecting
4.4.2 Structural Modelling
4.4.3 Stratigraphic modelling
4.4.4 Facies Modelling
4.4.5 Petrophysical Modelling
4.4.6 Volumetric calculation

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4.5 Dynamic Modelling
4.5.1 Data Collecting
4.5.2 Reservoir Initalization
4.5.3 History MAtching
4.5.4 Simulation forecast and Field production Profile

4.6 Economic Analyses

4.6.1 Economic Evaluation and field development

4.7 Meeting Arrangement with PT MGA Utama Energi

At least every 2 weeks the meeting will be schedule between Pukesmigas Trisakti and PT
MGA

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Figure 4.1 A: Workflow of Geology and Geophysical works

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Figure 4.1 B: Integrated Workflow of Geology, Geophysical, Petrophysics, Static Model and Dynamic model as well as Economyc Analyses

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CHAPTER V RESOURCE AND TIME TABLE
5.1 RESOURCES
Resources required in performing the job (please review attached CV’s for personnel’s
qualification):
 1 (one) Senior Geoscientist/Team leader : Dr.Ir. Agus Guntoro, M.Si
 1 (one) Senior Geologist : Dr. Alit Ngakan Ascaria
 1 (one) Senior Geophysicist : Suherman, ST M.Si
 1 (0ne) Senior Reservoir Engineering : Dr. Ir. Taufuk Patadin, MSc / Imam
Zulkupli, M.Si
 1 (one) Structural Geologist : I Wayan Ardana Darma, MSc
 1 (one) Petrophysicist : Dr. Suryo Prakoso, M.T
 1 (one) Geomodeler : Fikri Yusuf, ST, MSc
 1 (one) Economic Analyses : Ir. Edi Purwaka, MS
 1 (one) Junior Geologist : Fran Kharisma, ST
 1 (one) Junior Geophysicist : John Papillon Steven G, Bsc, M.Sc
 1 (one) Secretaries/Operator Computer : Irmah, ST

Platform required in performing the job:

 Landmark (Geophysics and Geology)
 Geographix
 Petrel
 Eclipse (Geoquest)
 Consumables during work progress & reporting (plotters, printers, ink, papers, CDs,
Floppies, etc.)

5.2 TIME TABLE

This integrated GGRE workflow will be lasting for 4 (Four) consecutive months
commencing on April 2022 until July 2022 (attached). All work will be assumed to be
conducted in PUKESMIGAS USAKTI facility in Jakarta.

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TABLE 5. 1 TIME SCHEDULE INTEGRATED GGRE APPROACH TO IDENTIFY
REMAINING RESERVES AND ECONOMIC ANALYSES FOR FURTHER PLAN
DEVELOPMENT OF THE NORTH PAGERUNGAN FIELD AND SEPANJANG ISLAND
FIELD

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5.3 DELIVERABLES
On workflow completion, client will receive the followings:
 Well Analyses and Correlation and palaeogeographic reconstruction
 Time and depth structure map of major productive reservoirs, potential reservoir and
basement faults. Subject to mapping results, sand / reservoir nomenclature might be
revised as well.
 Time and depth structure map of the basement faults, especially fractured basement
map based on the intensity,density and to create porosity map
 Similarity (semblance) volume, instantaneous attributes (amplitude, frequency,
phase), sweetness (normally used as direct hydrocarbon indicator in siliciclastic
environment. These attributes can be draped over structure configuration.
 Petrophysical model for all well inclusive multi mineral analysis and electro facies.
 Geocellular model for the entire field, inclusive structural grid, facies model,
reservoir characterization / properties and volumetric (hydrocarbon initially in place
estimation.
 Reservoir characterisation
 Single field simulation model depicting production history matches and residual
hydrocarbon saturation.
 Recommendation on candidate for production optimalization / enhancement / infill
candidates.
 Conduct the field development plan based on the remaining estimated field reserves
 Oil and Gas Scenario Production for the field
 Perform the economics (cost) of the proposed field development plan

The Final Report will be delivered as three (3) complete hard copies, with accompanying
CD’s/DVD’s containing the text and figures from the hardcopy report, plus the large format
enclosures.

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5.4 DATA REQUIREMENT
PT MGA UTAMA ENERGI is expected to provide PUKESMIGAS USAKTI with the
followings:
 2D data of the SPUO Block in SEG-Y format + image of its three corners (JPG/GIF
will do) (Preference in Petrel/Kingdom interpretation project format if available)
 Pre-existing horizon interpretation will be helpful but not mandatory (ASCII or P701)
 Stacking & migration velocity of this 2D (ASCII)
 Production wells (including Wireline log for each well to be involved + log header
(ASCII, LAS, LIS, DLIS). This includes conventional log, dipole sonic and imagery
log (EMI, FMI or DAC).
 Check shot / VSP pairs (ASCII).
 Initial pressure measurements (RFT, DST) (if available).
 Production data (Well Completion, Rate, and Test & Production History)
 Pressure data (History Pressure Data and Contact)
 Core rock mechanics (bulk & Young modulus, Poisson Ratio, etc.), core permeability
and fluid properties (RCAL & SCAL Reports).Production history of each producing
wells (ASCII)
 PVT Data

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VI. BUDGET
The amount of budget propose for the INTEGRATED GGRE APPROACH TO IDENTIFY
REMAINING RESERVES AND ECONOMIC ANALYSES FOR FURTHER PLAN
DEVELOPMENT OF THE NORTH PAGERUNGAN FIELD AND SEPANJANG ISLAND
FIELD is proposed with the Total cost of study is US$ (US Dollar). Detailed budget can be
seen in Table 7.1.

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