ANNEX 29

CCCCOOPP PPeettrroolleeuumm PPoolliiccyy aanndd MMaannaaggeemmeenntt PPrroojjeecctt:: 11sstt WWoorrkksshhoopp oonn tthhee WWeesstteerrnn DDeepprreessssiioonn ooff SSiicchhuuaann BBaassiinn

Program

20 – 25 October 2003

Day1: Monday, October 20, 2003

08:30

Registration

09:00 Opening Ceremony

• Address by CCOP PPM Project Coordinator, Mr. Gunnar V. SØiland

• Address by Permanent Representative of China to CCOP, Mr. Zheng Chuncai

• Address by Vice Manager of the Southwest Company, SINOPEC, Mr. Yang Keming

10:00 Group photo and coffee break

11:00 Introduction of the Case Study Members

11:30 Case Study Plan and main contents for the first workshop

12:00 Lunch

13:00 Brief introduction to the geology, exploration and exploitation in Western Depression of Sichuan Basin, Mr. Chen Zhaoguo

15:00 Coffee break

15:30 The application of GeoX in China

17:00 End of day 1

18:00 Dinner hosted by the Southwest Petroleum Company, SINOPEC. Attire: smart casual

Day2: Tuesday, October 21, 2003

08:30 Procedures and principles of the geological risk analysis of NPD Ms. Inger Pedersen Fjaertoft

10:00 Coffee break

10:15 Continue

12:00 Lunch

13:00 Visit the Panda Center

15:00 Continue

17:00 End of day 2 Day3: Wednesday, October 22, 2003

08:30 Procedures and principles of the geological risk analysis of NPD (Continue) Ms. Inger Pedersen Fjaertoft

10:00 Coffee break

10:30 The CCOP Resource Classification System Mr. Gunnar V. Søiland

11:15 The CCOP Guidelines for Risk Assessment, Mr. Simplicio P. Caluyong

12:00 Lunch

13:00 New features in GeoX 5.2 and insight on the multi-segment tool

17:00 17:00 End of day 3

Day4: Thursday, October 23, 2003

08:00 Excursion

Day5: Friday, October 24, 2003

08:30 Philippines experience in using the GeoX multi-segment tool and exercise on multi-segment prospect assessment Ms. Ma. Corazon Sta.Ana

10:00 Coffee break

10:30 Continue

12:00 Lunch

13:00 Introduction to the X2 play and exercise on X2 play assessment Mr. Yang Dengwei

15:00 Coffee break

15:30 Continue

17:00 End of day 5 Day6: Saturday, October 25, 2003

08:30 Continue the two exercises

10:00 Coffee break

10:30 Continue the two exercises

12:00 Lunch

13:00 Group presentation and discussion of the exercises Mr. Simplicio P. Caluyong

15:00 Coffee break

15:30 Group discussion to the future needs of China case study Mr. Gunnar V. SØiland

16:00 Summation and conclusion

Mr. Gunnar V. SØiland

17:00 End of the 1st workshop

18:30 Farewell dinner hosted by CCOP. Attire: smart casual

LIST OF PARTICIPANTS

TThhee 11sstt WWoorrkksshhoopp ooff PPeettrroolleeuumm PPoolliiccyy aanndd MMaannaaggeemmeenntt ((PPPPMM)) CChhiinnaa CCaassee SSttuuddyy 20 – 25 October 2003, Chengdu, China

Name Position / Address CAMBODIA MR. MEN DEN

Director Petroleum Exploration and Production Division Cambodian National Petroleum Authority (CNPA) 13 – 14 Russian Confederation Blvd., Khan Dangkor, P.O. Box 1442, Phnom Penh, CAMBODIA Tel.: 855 – 16 – 9822299 Fax: 855 – 23 – 890569 E-mail: menden@bigpond.com.kh

MR. HOUY VUTHA

Petroleum Geologist Cambodian National Petroleum Authority (CNPA) 13 – 14 Russian Confederation Blvd., Khan Dangkor, P.O. Box 1442, Phnom Penh, CAMBODIA Tel.: 855 – 12 – 884638 Fax: 855 – 23 – 890569 E-mail: huyvutha@yahoo.com

CHINA MR. YANG KEMING

Vice Manager Southwest Petroleum Company, SINOPEC No. 116, Noth 4 Section, First Ring Rd., Chengdu, Sichuan, 610081 P.R. CHINA Tel. 86 – 28 – 8350 – 5924 Fax. 86 – 28 – 8350 – 5924

MR. YANG DENGWEI

Senior Petroleum Geologist Exploration & Production Research Institute, SINOPEC No. 31, Xueyuan Rd., Haidian District Beijing 100083, P.R.CHINA Tel: (86-10) 8231 2965 Fax: (86-10) 8231 2089 E-mail: yangdw@cj.net.cn

MR. WANG CHUAN

Senior Petroleum Geologist Exploration & Production Research Institute, SINOPEC No. 31, Xueyuan Rd., Haidian District Beijing 100083, People ‘s Republic of CHINA Tel: (86-10) 823 12029 Fax: (86-10) 823 12089 E-mail: wang@pepris.com

MR. WANG CHUAN ZHONG

Geologist Geology Research Institute of Southwest Petroleum Branch Company, SINOPEC 66 Zhixiang Rd., Qinglongchang, Chengdu, Sichuan, 610081, P.R. CHINA Tel. 86 – 28 – 8350 – 3824 Fax. 86 – 28 – 8350 – 5924 E-mail: wcz168@hotmail.com

MS. LI HUAJI

Geologist Geology Research Institute of Southwest Petroleum Branch Company, SINOPEC 66 Zhixiang Rd., Qinglongchang, Chengdu, Sichuan, 610081, P.R. CHINA Tel. 86 – 28 – 8350 – 0940 Fax. 86 – 28 – 8350 – 5924 E-mail: zhengsheng_lhj@163.com

MS. LU WEIYANG

Geologist Geology Research Institute of Southwest Petroleum Branch Company, SINOPEC 66 Zhixiang Rd., Qinglongchang, Chengdu, Sichuan, 610081, P.R. CHINA Tel. 86 – 28 – 8350 – 0940 Fax. 86 – 28 – 8350 – 5924

MR. ZHANGXIAO PENG

Manager Geology Research Institute of Southwest Petroleum Branch Company, SINOPEC 66 Zhixiang Rd., Qinglongchang, Chengdu, Sichuan, 610081, P.R. CHINA Tel. 86 – 28 – 8350 – 0940 Fax. 86 – 28 – 8350 – 5924

MR. CHEN ZHAOGUO

Department Director Southwest Petroleum Company, SINOPEC No. 116, Noth 4 Section, First Ring Rd., Chengdu, Sichuan, 610081 P.R. CHINA Tel. 86 – 28 – 8350 – 5924 Fax. 86 – 28 – 8350 – 5924 E-mail: sckjb@263.net

MR. WANG XIN

Senior Geologist Geology Research Institute of Southwest Petroleum Branch Company, SINOPEC 66 Zhixiang Rd., Qinglongchang, Chengdu, Sichuan, 610081, P.R. CHINA Tel. 86 – 28 – 8353 – 0178 Fax. 86 – 28 – 8350 – 5924 E-mail: wangxin1128@sohu.com

MR. ZHAN GUOWEI

Petroleum Engineer Geology Research Institute of Southwest Petroleum Branch Company, SINOPEC 66 Zhixiang Rd., Qinglongchang, Chengdu, Sichuan, 610081, P.R. CHINA Tel. 86 – 28 – 8962 – 8419 Fax. 86 – 28 – 8350 – 5924 E-mail: zgw_james@sina.com

MISS CHEN LAN (JANE)

Chief Editor Institute of Southwest Petroleum Branch Company, SINOPEC 66 Zhixiang Rd., Qinglongchang, Chengdu, Sichuan, 610081, P.R. CHINA Tel. 86 – 28 – 8962 – 4966 Fax. 86 – 28 – 8350 – 5924 E-mail: deepbasin2002@yahoo.com.cn

MR. DAI JIN YE

Vice Director E&P Research Institute, SINOPEC No.31 Xueyuan Road, Haidian District, Beijing, 100083, P.R. CHINA Tel. 86 – 10 – 8231 – 2962 Fax. 86 – 10 – 8231 – 2089 E-mail:

MR. WANG LIANGGUO

Petroleum Economist Institute of Southwest Petroleum Bureau, (SINOPEC) Qinglongchang, Chengdu, Sichuan, 610081, P.R. CHINA Tel. 86-28-8350 3824 Fax. 86-28-8350 5924 E-mail: liangguo@mail.sc.cninfo.net

MR. ZHANG JILIANG

Vice General Geologist E&P Research Institute, SINOPEC 210 Huigian Road., Wuxi Jiangsu, CHINA Tel. 86 – 51 – 0320 – 2104 Fax. 86 – 51 – 0320 – 2742 E-mail: zhangjl@mall.wuxiso.com

MR. JIANG XINGGE

Geologist E&P Research Institute, SINOPEC 210 Huigian Road., Wuxi Jiangsu, CHINA Tel. 86 – 51 – 0321 – 3585 Fax. 86 – 51 – 0320 – 2742 E-mail: jiangxingge@163.com

MR. JIANG SHIJING

Geologist China Geological Survey (CGS) No. 37 Guanyingyuan Xiqu, Xicheng District, Beijing 100035, CHINA Tel. 86 – 10 – 6612 – 7185 Fax. 86 – 10 – 6612 – 7283 E-mail: jshijin@mail.cgs.gov.cn

MR. MA YONGZHENG

Deputy Permanent Representative of China to CCOP Deputy Division Director, Department of International Cooperation Science and Technology , Ministry of Land and Resources 64 Funci Street, Xicheng District, Beijing, 100812, CHINA Tel. 86 – 10 – 6655 – 8407 Fax. 86 – 10 – 6612 – 7247 E-mail: yzma@mail.mlk.gov.cn , ma_yzh@yahoo.com

DR. LIU SHUGEN Chengdu University of Technology No.1 Dongsand Section, Ersian Bridge Road, Chengdu 610081, CHINA Tel.: 86 – 28 – 8407 – 9488 Fax: 86 – 28 – 8407 – 9077 E-mail: lsg@cdut.edu.cn

INDONESIA MR. AGUS GUNTUR

Staff of Hydrocarbon Resource Assessment Group Research and Development Center for Oil and Gas Technology “LEMIGAS” Jl. Ciledug Raya Kav., 109 Kebayoran Lama, Jakarta Selatan 12230, INDONESIA Tel.: 62 – 21 – 739 4422 ext. 1375 Fax: 62 – 21 – 724 6150 E-mail: guntur@lemigas.esdm.go.id

MR. SILAMBI PALAMBA

Staff of Techno-Economic Group Research and Development Center for Oil and Gas Technology “LEMIGAS” Jl. Ciledug Raya Kav. 109 Kebayoran Lama, Jakarta Selatan 12230, INDONESIA Tel.: 62 – 21 – 739 4422 ext. 1250 Fax: 62 – 21 – 724 6150 E-mail: silambi@lemigas.esdm.go.id

KOREA DR. YOUNG-JOO LEE

Senior Researcher Korea Institute of Geoscience & Mineral Resources (KIGAM) 30 Gajeong – dong, Yoodeong-gu, Daejeon, KOREA Tel.: 82 – 42 – 8683209 Fax: 82 – 42 – 8627275 E-mail: yjl@rock25t.kigam.re.kr

PHILIPPINES MR. REDENTOR D. PASCUAL

Senior Science Research Specialist Department of Energy Merritt Rd., Fort Bonifacio, Taguig City, Manila, PHILIPPINES Tel.: 63 – 2 – 8124016 Fax: 63 – 2 – 8402206 E-mail: rpascual@doe.gov.ph

MR. WINIFREDO DE SAGUN MALABANAN

Senior Science Research Specialist Department of Energy Merritt Rd., Fort Bonifacio, Taguig City, Manila, PHILIPPINES Tel.: 63 – 2 – 8124016 Fax: 63 – 2 – 8402206 E-mail: wmalaban@doe.gov.ph

THAILAND MR. SUNTON SRIGULWONG

Geologist Mineral Fuels Division Department of Mineral Fuels (DMF) 75/10 Rama VI Rd., Bangkok 10400, THAILAND Tel: (66-2) 202 3646-9 Fax: (66-2) 202 3647 E-mail: sunton@dmf.go.th

MR. SUNGKOM BUNBOON

Geologist, Mineral Fuel Division Department of Mineral Fuels (DMF) 75/10 Rama VI Rd., Bangkok 10400, THAILAND Tel.: 66 – 2 – 202 3637 – 9 Fax: 66 – 2 – 202 3637 E-mail: bsungkom@dmf.go.th

VIETNAM MR. TRINH XUAN CUONG

Geoscientist Exploration & Production Division PETROVIETNAM 22 Ngo Quyen Street, Hanoi VIETNAM Tel: (84-4) 825 2526 ext. 476 Fax: (84-4) 826 5942, 824 9126 E-mail:

MRS. TA THI VINH HIEN

Officer Technology-Safety & Environment Division Vietnam Oil and Gas Corporation, PETROVIETNAM 22 Ngo Quyen Street, Hanoi, VIETNAM Tel: (84-4) 825 2526 ext. 412 Fax: (84-4) 826 5942, 824 9126 E-mail: vinhhien@hn.pv.com.vn

RESOURCES PERSON MS. INGER PEDERSEN FJÆRTOFT

Senior Geologist Norwegian Petroleum Directorate (NPD) Professor Olav Hanssens Vei 10, P.O. Box 600, N-4003 Stavanger, NORWAY Tel.: +4751876000 Fax: +4751551571 E-mail: inger.fjartoft@npd.no

MS. MA. CORAZON STA. ANA

Senior Science Research Specialist Energy Resource Development Bureau Department of Energy Energy Center, Merritt Road, 1201 Ft. Bonifacio Taguig, Metro Manila, PHILIPPINES Tel: 63 – 2 - 812 4016 Fax: 63 – 2 - 840 2206 E-mail: cocostaana@yahoo.com

CCOP Technical Secretariat MR. GUNNAR V. SØILAND

PPM Project Coordinator CCOP Technical Secretariat 24th Fl., Suite 244 – 245, Thai CC Tower, 889 Sathorn Tai Road., Sathorn, Bangkok 10120, THAILAND Tel.: 66 – 2 – 6723080 Fax: 66 – 2 – 6723082 E-mail: gunnar@ccop.or.th

MR. SIMPLICIO P. CALUYONG

PPM Regional Project Coordinator CCOP Technical Secretariat 24th Fl., Suite 244 – 245, Thai CC Tower, 889 Sathorn Tai Road., Sathorn, Bangkok 10120, THAILAND Tel.: 66 – 2 – 6723080 Fax: 66 – 2 – 6723082 E-mail: sim@ccop.or.th

Summary

The 1st Workshop of the China case study touched on the general overview of

the geology of the case study basin. The China team presented their resource

assessment activities in the basin and the related challenges in the assessment. The

main resource person Ms Inger Pedersen Fjærtoft, senior geologist of the Norwegian

Petroleum Directorate (NPD) presented and led the discussions on resource

assessment methodologies. She also shared her expertise in the use of the GeoX

software. The Philippines, through Ms Corazon V Sta Ana, presented her experiences

in using the GeoX tool for resource assessment from the recently completed PhilPRA

Project (Philippines Petroleum Resource Assessment). Exercises using the GeoX

software and discussions on resource assessment methodologies based on the

experiences of some of the CCOP Member Countries were the main accomplishments

of the workshop.

ANNEX 30

Petroleum Policy and Management Project (PPM) The 2nd Workshop of China Case Study

May 22-27, 2004, Chengdu PROGRAM Day1: May 22, 2004, Saturday 08:30 Registration 09:00 Opening Ceremony 09:30 Group photo and coffee break 10:30 Review the 1st workshop Case Study Plan and main contents for the 2nd

workshop, and Introduction of the Case Study Members – CCOP, Mr.Gunnar

11:30 Report on the Expert Visit—Sinopec, Mr. Li Shubing 12:00 Lunch 13:30 China Petroleum Resource Classification System – Ministry of Land and

Recourses, China, Mr. Hu Yongdong 15:00 Coffee break 15:30 The application of resource classification principles in presentations of

resource figures, - NPD, Ms. Inger Fjærtoft 16:30 Review of the geology and reservoir parameters of the Sichuan Basin for

volumetric calculation – Sinopec, Mr. Yang Dengwei 17:30 End of day 1 18:00 Welcome Dinner hosted by the Southwest Petroleum Company, SINOPEC. Attire: smart casual Day2: May 23, 2004, Sunday 08:30 Introduction to prospect (&play) analysis (and the experience of prospect (&

play) evaluation) - NPD, Ms. Inger Fjærtoft 10:00 Coffee break 10:30 Using GeoX in prospect and play analysis, and resource modeling of the

Hexingchang prospect – NPD, Ms.Inger Fjærtoft 12:00 Lunch 13:30 Continue using GeoX 15:00 Coffee break 15:30 Introduction to Basic Petroleum Economy- NPD, Ms. Benvenutta Henriksen 17:30 End of day 2 Day3: May 24, 2004, Monday 08:30 Introduction to exploration economy – NPD, Ms. Benvenutta Henriksen 10:00 Coffee break 10:30 Introduction to GeoX fullcycle analysis and economic analysis on gas

prospect from other country (Norway)—NPD, Ms. Benvenutta Henriksen 12:00 Lunch

13:30 Gas Field Development, Cost data and Fiscal regime in China – Sinopec,Mr.Wang Liangguo 14:00 Exercise of Hexingchang prospect in Fullcycle (economic evaluation), - NPD,

Ms. Benvenutta Henriksen and Inger Fjærtoft 15:00 Coffee break 15:30 Introduction to scenario analysis using the GeoX software. Continue

economic analysis, - NPD, Ms. Benvenutta Henriksen and Inger Fjærtoft

17:30 End of day 3 Day4: May 25, 2004, Tuesday 08:30 Introduction to some aspects of fiscal systems and the application of after tax analysis

using the geoX software – NPD, Ms. Benvenutta Henriksen 10:00 Coffee break 10:30 Application of Norwegian (or other fiscal system and costs) system to Sichuan

reserves, and make comparison to China – NPD, Ms. Benvenutta Henriksen

12:00 Lunch 13:30 Introduction to multisegment economic analysis using the GeoX software -

NPD, Ms. Benvenutta Henriksen and Inger Fjærtoft 15:00 Coffee break 15:30 Continue economical analysis 17:30 End of day 4 18:00 Farewell dinner hosted by CCOP. Attire: smart casual Day5: May 26, 2004, Wednesday 08:30 China’s petroleum policy and management and market in the Western

Depression of Sichuan Basin – Sinopec, Mr. Chen Zhaoguo 09:20 Petroleum policy and management– CCOP, Mr. Gunnar 10:00 Coffee break 10:30 Petroleum policy in Norway (or other countries) to compare with China –

NPD, Ms. Inger Fjærtoft 12:00 Lunch 13:30 Discussion on the comparison of the China petroleum policy with other

country – NPD, Ms. Inger Fjærtoft 14:20 Group presentation and discussion the future needs of the China case study in

petroleum policy & management & market & the strategy of exploration - CCOP, Mr. Gunnar & Sim

15:00 Coffee break 15:30 Summation and conclusion – CCOP, Mr. Gunnar & Sim 16:00 End day 5 DAY6: MAY 27, 2004,THURSDAY Field Trip: visit Emei Mountain

LIST OF PARTICIPANTS

The 2nd Workshop of China Petroleum Policy Management (PPM) Case Study

22 – 27 May 2004, Chengdu, China NAME POSITION / ADDRESS

GUESTS MR. PENG QIMING

Director of science & technology and international Coopration China geological survey 24 Huangsi dajie, xicheng district, Beijing, 100011, P.R.China Tel: (86-10) 5163 2899 Fax: (86-10)5163 2907 E-mail: pqiming@cgs.gov.cn

MR. LIU LIQUN

Division director of internation coopration E&D research institute, SINOPEC No.31, xueyuan road, haidian district, Beijing, 100083, P.Rchina Tel: (86-10) 8231 2033 Fax: (86-10) 8231 2089 E-mail: liuliqun@pepris.com

MS.ZHANG LI

Vice president of Southwest Petroleum Branch,SINOPEC Southwest Petroleum Company, SINOPEC No. 116, Noth 4 Section, First Ring Rd., Chengdu, Sichuan, 610081 P.R. CHINA Tel. 86 – 28 – 8333 – 2289 Fax. E-mail:

RESOURCE PERSONS

MR. HU YUNDONG

Senior engineer Petroleum reserves office of the Ministry of Land & Resources. China university of Geoscience, No.20 xueyuan road, Beijing, P.R. China Tel: (86-10) 6209 7426 Fax: (86-10) 6209 7426 E-mail: hyd@petrochina.com.cn

MS. BENVENUTTA ELISE HENRIKSEN

Norwegian Petroleum Directorate (NPD) Professor Olav Hanssens Vei 10, P.O. Box 600, N-4003 Stavanger, NORWAY Tel.: +4751876000 Fax: +4751551571 E-mail: benvenutta.henriksen@npd.no

MS. INGER PEDERSEN FJÆRTOFT

Senior Geologist Norwegian Petroleum Directorate (NPD) Professor Olav Hanssens Vei 10, P.O. Box 600, N-4003 Stavanger, NORWAY Tel.: +4751876000 Fax: +4751551571 E mail: inger.fjartoft@npd.no

CAMBODIA MR. MEN DEN

Director Petroleum Exploration and Production Division Cambodian National Petroleum Authority (CNPA) 13 – 14 Russian Confederation Blvd., Khan Dangkor, P.O. Box 1442, Phnom Penh, CAMBODIA Tel.: 855 – 16 – 9822299, Fax: 855 – 23 – 890569 E-mail: menden@bigpond.com.kh

MR. KIMTY PHALLY

Deputy Chief, Downstream Division, CNPA #13-14, Russian Federation Blvd, Sangkat Kakab, Khan Dangkor, P.O. Box 1442, Phnom Penh, Cambodia. Tel : (855)12 844 424 Fax : (855)23 890 569 E-mail : ppm_cambodia@online.com.kh

CHINA MR. YANG DENGWEI

Senior Petroleum Geologist Exploration & Production Research Institute, SINOPEC No. 31, Xueyuan Rd., Haidian District Beijing 100083, P.R.CHINA Tel: (86-10) 8231 2965 Fax: (86-10) 8231 2089 E-mail: yangdw@cj.net.cn

MR. WANG CHUAN

Senior Petroleum Geologist Exploration & Production Research Institute, SINOPEC No. 31, Xueyuan Rd., Haidian District Beijing 100083, P.R CHINA Tel: (86-10) 8231-2944 Fax: (86-10) 8231-2089 E-mail: wang@pepris.com

MR. CHEN ZHAOGUO

Director of internation cooperation department Southwest Petroleum Company, SINOPEC No. 116, Noth 4 Section, First Ring Rd., Chengdu, Sichuan, 610081 P.R. CHINA Tel. 86 – 28 – 8350 – 5924 Fax. 86 – 28 – 8350 – 5924 E-mail: chenzg1963@vip.sino.com

MS. LU WEIYANG

Geologist Southwest Petroleum Company, SINOPEC No. 116, Noth 4 Section, First Ring Rd., Chengdu, Sichuan, 610081 P.R. CHINA Tel. 86 – 28 – 8333 – 1317 Fax. 86 – 28 – 8333 – 1317 E-mail: luweiyang996@yahoo.com.cn

MR. LI SHUBING

Vice director Institute of Southwest Petroleum Company,SINOPEC Qinglongchang, Chengdu, Sichuan, 610081, P.R. CHINA Tel. 86-28-8350 5022 Fax. 86-28-8350 5924 E-mail: Lisb030@263.net

MR. WANG LIANGGUO

Petroleum Economist Institute of Southwest Petroleum Company,SINOPEC Qinglongchang, Chengdu, Sichuan, 610081, P.R. CHINA Tel. 86-28-8350 3824 Fax. 86-28-8350 5924 E-mail: liangguo01@163.com

MS. LI HUAJI

Geologist Geology Research Institute of Southwest Petroleum Company, SINOPEC 66 Zhixiang Rd., Qinglongchang, Chengdu, Sichuan, 610081, P.R. CHINA Tel. 86 – 28 – 8350 – 3824 Fax. 86 – 28 – 8350 – 5924 E-mail: zhengsheng_lhj@163.com

MS. LUO FENG

Geologist Geology Research Institute of Southwest Petroleum Company, SINOPEC 66 Zhixiang Rd., Qinglongchang, Chengdu, Sichuan, 610081, P.R. CHINA Tel. 86 – 28 – 8350 – 6370 Fax. 86 – 28 – 8350 – 6370 E-mail: yice2000@163.com

MR. WANG XIN

Senior Geologist Geology Research Institute of Southwest Petroleum Branch Company, SINOPEC 66 Zhixiang Rd., Qinglongchang, Chengdu, Sichuan, 610081, P.R. CHINA Tel. 86 – 28 – 8353 – 0178 Fax. 86 – 28 – 8350 – 5924 E-mail: wangxin1128@sohu.com

MR. ZHAN GUOWEI

Petroleum Engineer Geology Research Institute of Southwest Petroleum Branch Company, SINOPEC 66 Zhixiang Rd., Qinglongchang, Chengdu, Sichuan, 610081, P.R. CHINA Tel. 86 – 28 – 8962 – 8419 Fax. 86 – 28 – 8350 – 5924 E-mail: zgw_james@sina.com

MISS CHEN LAN (JANE)

Chief Editor Institute of Southwest Petroleum Branch Company, SINOPEC 66 Zhixiang Rd., Qinglongchang, Chengdu, Sichuan, 610081, P.R. CHINA Tel. 86 – 28 – 8350 – 4966 Fax. 86 – 28 – 8350 – 5924 E-mail: deepbasin2002@yahoo.com.cn

INDONESIA MR. AGUS GUNTUR

Staff of Hydrocarbon Resource Assessment Group Research and Development Center for Oil and Gas Technology “LEMIGAS” Jl. Ciledug Raya Kav., 109 Kebayoran Lama, Jakarta Selatan 12230, INDONESIA TEL.: 62 – 21 – 739 4422 EXT. 1375 Fax: 62 – 21 – 724 6150 E-mail: guntur@lemigas.esdm.go.id

MR. SILAMBI PALAMBA

Staff of Techno-Economic Group Research and Development Center for Oil and Gas Technology “LEMIGAS” Jl. Ciledug Raya Kav. 109 Kebayoran Lama, Jakarta Selatan 12230, INDONESIA TEL.: 62 – 21 – 739 4422 EXT. 1250 Fax: 62 – 21 – 724 6150 E-mail: silambi@lemigas.esdm.go.id

KOREA DR. YOUNG-JOO LEE

Senior Researcher Korea Institute of Geoscience & Mineral Resources (KIGAM) 30 Gajeong – dong, Yoodeong-gu, Daejeon, KOREA Tel.: 82 – 42 – 8683209, Fax: 82 – 42 – 8627275 E-mail: yjl@rock25t.kigam.re.kr

DR. JIN-DAM SON

Senior Researcher Korea Institute of Geoscience & Mineral Resources (KIGAM) 30 Gajeong – dong, Yoodeong-gu, Daejeon, KOREA Tel.: 82 – 42 – 8683209 Fax: 82 – 42 – 8627275 E-mail: c/o yjl@rock25t.kigam.re.kr

MALAYSIA MR. NORDIN BIN RAMLI

Senior Manager Petroleum Resource Assessment Department, PETRONAS Level 28, Tower 1, Petronas Twin Towers 50088 KLCC, Kuala Lumpur, MALAYSIA Tel.: 603 – 2331 4467 Fax: 603 – 2331 3306 E-mail: nordin_ramli@petronas.com.my

MR. DONNY MAGA

Petroleum Resource Assessment Department, PETRONAS Level 28, Tower 1, Petronas Twin Towers 50088 KLCC, Kuala Lumpur, MALAYSIA Tel.: 603 – 2331 5787 Fax: 603 – 2331 3238 E-mail: c/o donny_ramli@petronas.com.my

PHILIPPINES MR. REDENTOR D. PASCUAL

Senior Science Research Specialist Department of Energy Merritt Rd., Fort Bonifacio, Taguig City, Manila, PHILIPPINES Tel.: 63 – 2 – 8124016 Fax: 63 – 2 – 8402206 E-mail: rpascual@doe.gov.ph

MR. NEIL O. PESA

Senior Science Research Specialist Department of Energy Merritt Rd., Fort Bonifacio, Taguig City, Manila, PHILIPPINES Tel.: 63 – 2 – 8124016 Fax: 63 – 2 – 8402206 E-mail: c/o rpascual@doe.gov.ph

THAILAND MR. SURACHAI SIRIJIRAPATANA

Senior Geologist Mineral Fuels Division Department of Mineral Fuels (DMF) 75/10 Rama VI Rd., Bangkok 10400, THAILAND Tel: (66-2) 202 3648-9, 645 8021 Fax: (66-2) 202 3647 E-mail: sunton@dmf.go.th

MR. KRIANGKRAI POMIN

Senior Geologist Department of Mineral Fuels 75/10 Rama VI Rd., Bangkok 10400, THAILAND Tel.: 66-2-2023646 to 48 Fax: 66-2-2023654, 2023647 E-mail: pominkk@yahoo.com

VIETNAM MR. TRINH XUAN CUONG

Geoscientist Exploration & Production Division PETROVIETNAM 22 Ngo Quyen Street, Hanoi VIETNAM Tel: (84-4) 825 2526 ext. 476 Fax: (84-4) 826 5942, 824 9126 E-mail: txcuong@hn.pv.com.vn

MR. NGUYEN XUAN THANH

Economist PETROVIETNAM 22 Ngo Quyen Street, Hanoi, VIETNAM Tel: (84-4) 825 2526 Fax: (84-4) 826 5942 E-mail: c/o txcuong@hn.pv.com.vn

CCOP TECHNICAL SECRETARIAT MR. GUNNAR V. SØILAND

PPM Project Coordinator CCOP Technical Secretariat 24th Fl., Suite 244 – 245, Thai CC Tower, 889 Sathorn Tai Road., Sathorn, Bangkok 10120, THAILAND Tel.: 66 - 02 - 6723080 to 81 Fax: 66 - 02 - 6723082 E-mail: gunnar@ccop.or.th

MR. SIMPLICIO P. CALUYONG

PPM Regional Project Coordinator CCOP Technical Secretariat 24th Fl., Suite 244 – 245, Thai CC Tower, 889 Sathorn Tai Road., Sathorn, Bangkok 10120, THAILAND Tel.: 66-02-6723080 to 81 Fax: 66-02-6723082 E-mail: sim@ccop.or.th

Summary

The subject of the workshop was mainly on petroleum resource assessment

and petroleum economics. The Norwegian Petroleum Directorate resource persons

Ms. Inger Pedersen Fjærtoft and Ms. Benvenutta Elise Henriksen gave lectures and

guided the practical exercises on the subjects. The GeoX software was utilized during

the prospect/play analysis, segment analysis and the full-cycle economic analysis. The

cost data from the gas fields in the western depression of the Sichuan basin and fiscal

regime of China were used in the exercises.

The China team gave an update of the expert visits including the results and

recommendations from the visits. Also, Mr. Hu Yundong, an expert from the

Petroleum Reserves Office, China Ministry of Land and Resources gave a

presentation on the China Resource Classification System including the definitions of

each resource categories.

The participants, particularly the members of the China case study team, have

now learned more about the petroleum resource assessment and economic full cycle

analysis based on the NPD experiences and experiences from some of the CCOP

Countries.

ANNEX 31

CCOP Petroleum Policy and Management (PPM) Project 3rd Workshop, China Case Study of the Western - Depression Sichuan Basin

20-24 June 2005, Beijing

PROGRAM

Day 1: 20 June 0830 Registration CCOP TS/SINOPEC 0900 Opening Ceremonies

• Opening Remarks by Mr. Simplicio P. Caluyong, PPM Project Coordinator, CCOP TS

• Welcome Remarks by Dr. Zhang Hongtao, China Permanent Representative to CCOP, Deputy Director-General of China Geological Survey

• Welcome Remarks by Dr. Jin Zhijun, President of Sinopec E&P Research Institute

• Group Photo

1000 Coffee/tea Break 1030 Introduction of the participants CCOP TS Review of the past activities of the China case study and the workshop agenda 1100 China Presentation:

• Update on Petroleum activities in the case study basin – Mr. Chen Zhaoguo, SINOPEC

• A brief report on the 3rd expert visit - highlighting on how knowledge learned from the visit are put into actual practice – Mr. Yang Dengwei SINOPEC

1200 Lunch break 1300 Policy Framework development to create investment opportunities by Mr.

Tormod Slatsveen, Norwegian Petroleum Directorate Main focus:

risk-reward elements; alternative models to ensure governmental take considerations included

’economical rent’ considerations; considerations on role of government and role of industry; project economy – corporate profitability versus added value to society; incitement structure; concession versus contract based systems; joint ventures versus

partnerships. a mixture of short lectures and more group exercises

1500 Coffee/tea Break 1530 Petroleum Industry Development in SINOPEC Group--- Mr. Liu Yan,

Deputy Director, Development Planning Department, SINOPEC 1700 Summary of Day 1 1830 Welcome Dinner (hosted by SINOPEC- to be announced) Day 2: 21 June (same time for am/pm and lunch breaks as Day 1) 0830 Continue with Policy Framework development to create investment

opportunities

1630 Summary of Day 2 Day 3: 22 June (same time for am/pm and lunch breaks as Day 1) 0830 Development Technology Options Mr. Cyrus Esphahanian, US

Main Focus: Onshore gas development and production technology solutions in the US

o Technical challenges from tight gas reservoir o Resource plays and how companies are “manufacturing” natural gas o New and future trends in exploration and production o Development of marginal tight gas fields and incentives

Gas market and transportation solutions o business and facilities processes of how the gas is moved o assessing various fees and charges

more group exercises and discussions!!

1630 Summary of Day 3

Day 4: 23 June (same time for am/pm and lunch breaks as Day 1) 830 Continue with Development Technology Options 1000 Petroleum Policy in China – Mr. Gao Bingqi, Ministry of Land and Resources

1030 Presentation on Gas exploration and development policy of selected CCOP

Member Countries: i. Vietnam

ii. Thailand iii. Philippines iv. Indonesia

1300 Workshop Summary Questions/Answers and discussions CCOP TS

1530 PPM Future plans and programs CCOP TS Workshop Evaluation Closing remarks 1900 Farewell Dinner (hosted by CCOP) Day 5: 24 June Field Trip to the Great Wall of China (in Badaling) and the Ming Tombs (Tombs of the Ming Dynasty Emperors) – SINOPEC LIST OF PARTICIPANTS

Petroleum Policy and Management (PPM) Project

3rd China Case Study of the Western - Depression Sichuan Basin Onshore Gas Development Solutions, Market, and Policies for Investment Opportunities

20-24 June 2005, Beijing, China

DISTINGUISHED GUESTS

NAME POSITION / ADDRESS MR. MA YONGZHENG

Deputy Permanent Representative of China to CCOP Deputy Division Director Department of International Cooperation, Science and Technology, Ministry of Land and Resources (MLR) No. 64, Funei Street, Xicheng District Beijing 100812, People’s Republic of China Tel. (86-10) 6655 8407, Fax: (86-10) 6612 7247 E-mail: yzma@mail.mlr.gov.cn ma_yzh@yahoo.com

MR. JIANG SHIJING

Director, International Cooperation Division China Geological Survey (CGS) 24 Guangsi Dajie, Xicheng District, Beijing 100011 People’s Republic of China Tel. (86-10) 5163 2963, Fax. (86-10) 5163 2907 E-mail: jshijin@mail.cgs.gov.cn

MR. JIN ZHIJUN

President, E & P Research Institute, SINOPEC No. 31 Xueyuan Road, Haidian District, Beijing 100083, People’s Republic of China Tel. (86-10) 8231 2912, Fax. (86-10) 8231 2089 E-mail. Jinzhj@ pepris.com

MR. DAI JINYE

Vice President, E & P Research Institute, SINOPEC E & P Research Institute, SINOPEC 31 Xueyuan Road, Beijing, People’s Republic of China Tel.: (86-10) 8231 2033, Fax.: (86-10) 8231 2069 E-mail:

MR. RONG QI

Director, Foreign Affair Division, SINOPEC No. 31 Xueyuan Road, Haidian District, Beijing, People’s Republic of China

RESOURCES PERSONS MR. CYRUS ESPHAHANIAN

Reservoir Engineer 550 Red Rocks Vista Dr. Marrison, Colorado 80465 U.S.A. E-mail: ayrab@aol.com Tel: 1-303-697-9799, Mobile: 1-303-250-2566 Fax.: 1-303-450 6927

MR. TORMOD SLATSVEEN

Director, International Cooperation Norwegian Petroleum Directorate (NPD) Prof. Olav Hanssensvei 10, P.O. Box 600 N-4003 Stavanger, Norway Email: tormod.slatsveen@npd.no Tel: +4751 876202, Fax: +4751 551571 Mobile. : +47-9220 9421 www.npd.no

MR. GAO BINGQI

Director, Ministry of Land and Resources (MLR) No. 64, Funei Street, Xicheng District Beijing 100812, People’s Republic of China

MR. LIU YAN Vice Director, Development Planning Department, SINOPEC

MR. CHEN ZHAOGUO

Professor, Director of Science, Technology Division SINOPEC Southwestern Petroleum Branch No. 116, North 4 Section, First Ring Rd., Chengdu, Sichuan 610018, People’s Republic of China Tel. (86-28) 8335 8439, Fax. (86-28) 8335 8439 E-mail: chenzg1963@163.com

MR. YANG DENGWEI

Senior Petroleum Geologist Exploration & Production Research Institute, SINOPEC No. 31, Xueyuan Rd., Haidian District Beijing 100083, People’s Republic of China Tel: (86-10) 8231 2965 Fax: (86-10) 8231 2089 E-mail: yangdw@cj.net.cn

LIST OF PARTICIPANTS

NAME POSITION / ADDRESS

CAMBODIA MR. MEN DEN

Director Petroleum Exploration and Production Division Cambodian National Petroleum Authority (CNPA) 13 – 14 Russian Confederation Blvd., Khan Dangkor, P.O. Box 1442, Phnom Penh, Cambodia Tel.: 855 – 16 – 982299, Fax: 855 – 23 – 890569 E-mail: menden@online.com.kh

MR. KIMTY PHALLY

Deputy Chief, Downstream Division, CNPA #13-14, Russian Federation Blvd, Sangkat Kakab, Khan Dangkor, P.O. Box 1442, Phnom Penh, Cambodia. Tel : (855)12 844 424 Fax : (855)23 890 569 E-mail : ppm_cambodia@online.com.kh

CHINA MS. HE HONG Engineer

E & P Research Institute, SINOPEC 31 Xueyuan Road, Beijing, People’s Republic of China Tel.: (86-10) 8231 2946, Mobile: 86-13693520662 E-mail: hehong@pepris.com

MR. BAI ZHENRUI

Senior Geologist, E & P Research Institute, SINOPEC 31 Xueyuan Road, Beijing, People’s Republic of China Tel.: (86-10) 8231 2096, Mobile: 86-13521055371 E-mail: Bzr369@pepris.com

MR. ZHANG FUSHUN

E & P Research Institute, SINOPEC No. 29 Xueyuan Road, Haidian District, Beijing, People’s Republic of China Tel.: (86-10) 8231 2645Mobile: 86-13999887062 E-mail: zhangfs@pepris.com

MS. LIU MING

Officer E & P Research Institute, SINOPEC 31 Xueyuan Road, Beijing, People’s Republic of China Tel.: (86-10) 8231 2094, Fax.: (86-10) 8231 2075 E-mail: liuming@pepris.com

NAME POSITION / ADDRESS MR. CHEN MING

Officer E & P Research Institute, SINOPEC 31 Xueyuan Road, Beijing, People’s Republic of China Tel.: (86-10) 8231 2079, Fax.: (86-10) 8231 2075 E-mail: chenming@pepris.com

MS. XU MEIYAN

E & P Research Institute, SINOPEC 31 Xueyuan Road, Beijing, People’s Republic of China Tel.: (86-10) 8231 2094, Fax.: (86-10) 8231 2075 E-mail: xumy@pepris.com

MS. LI HAIYAN Senior Engineer E & P Research Institute, SINOPEC 31 Xueyuan Road, Beijing, People’s Republic of China

Tel.: (86-10) 8231 2094 Fax.: (86-10) 8231 2089 E-mail: lihywu@pepris.com

MS. CAO YAN

E & P Research Institute, SINOPEC 31 Xueyuan Road, Beijing, People’s Republic of China Tel.: (86-10) 8231 2096, Mobile: (86) 1312679 8373 E-mail: caoyan@pepris.com

MR. WANG LIANGGUO

Petroleum Economist SINOPEC Southwest Petroleum Company Qinglongchang, Chengdu, Sichuan, People’s Republic of China Tel. (86-28) 8350 3824, Fax.: (86-28) 8350 5924 E-mail: liangguo01@163.com

MR. LIN HUI

Vice-Chief Engineer Petroleum Engineering Design & Research Institute of Southwest Petroleum Company, SINOPEC Tel. (86-838) 240 2642, Fax.: (86-838) 240 2359 E-mail: henry2957@qq.com

NAME POSITION / ADDRESS MR. GAO BAOSHEN

E & P Strategy and Planning Division E & P Research Institute, SINOPEC 31 Xueyuan Road, Beijing, People’s Republic of China Tel.: (86-10) 8231 2897, Fax.: (86-10) 8231 2009 E-mail: gbs@pepris.com

MR. ZHOU QINGFAN

Vice Director, E & P Strategy and Planning Division E & P Research Institute, SINOPEC 31 Xueyuan Road, Beijing, People’s Republic of China Tel.: (86-10) 8231 2189, Fax.: (86-10) 8232 2489 E-mail: 21zhouqf@sohu.com

MR. LIU LIQUN Director Division, E & P Research Institute, SINOPEC

31 Xueyuan Road, Beijing, People’s Republic of China Tel.: (86-10) 8231 2033, Fax.: (86-10)82312069 E-mail: liuliqun@pepris.com

MR. ZHANG YINGQIN

Senior Research Staff E & P Research Institute, SINOPEC 31 Xueyuan Road, Beijing, People’s Republic of China Tel.: (86-10) 8231 2033, Fax.: (86-10) 8231 2069 E-mail: zhangyingqin@pepris.com

MRS. MENG MIN

E & P Research Institute, SINOPEC 31 Xueyuan Road, Beijing, People’s Republic of China Tel.: (86-10) 8231 2033, Fax.: (86-10) 8231 2069 E-mail: mengmin@pepris.com

INDONESIA MR. RIDA MULYANA

Chief Operation “LEMIGAS” (R & D Center for Oil & Gas Technology) Jl. Ciledug Raya Kav. 109, Cipulir, Kebayoran Lama, Jakarta , 12230, Jakarta, Indonesia E-mail: rmulyana@lemigas.esdm.go.id Tel. (62-21-739 4178 Fax: (62-21) 739 178

MR. BAMBANG WIDARSONO

Head of Formation Evaluation Group “LEMIGAS” Jl. Ciledug Raya Kav. 109, Cipulir, Kebayoran Lama, Jakarta , 12230, Jakarta, Indonesia E-mail: bwidarsono@lemigas.core.com Tel: (62-21) 7206032 Fax: (62-21) 7246150

MR. EDDY HERMANTO (OWN COST)

Exploration Assessment Manager BP Migas (Executive Agency for Upstream Oil & Gas Business) Patrajasa Bldg., 21st Floor, Jl Gatot Subroto Kav 32-34, Jakarta, Indonesia E-mail: ehermanto@bpmigas.com Tel.: (62-21) 5290 0245 to 8, Fax.: (62-21) 5290 0009

MR. SULISTYA HASTUTI WAHYU (OWN COST)

Geologist BP Migas (Executive Agency for Upstream Oil&Gas Business) Patrajasa, Jl Gatot Subroto Kav 32-34, Jakarta, Indonesia E-mail: sulistya@bpmigas.com Tel.: (62-21) 5290 0245 Fax.: (52-21) 5290 0009

KOREA DR. JEONG-HWAN LEE

Senior Researcher Korea Gas Corporation / R&D Division 973 Dongchun-dong, Yeonsu-gu, Incheon, 406-130, Republic of Korea E-mail: jhwan@kogas.re.kr Tel: (82-32) 8100329, Fax: (82-32) 8100330

PHILIPPINES MR. RANILO P. ABANDO

Director Energy Resource Development Bureau Department of Energy Energy Center, Merritt Road, Fort Bonifacio Taguig, Metro Manila, Philippines E-mail: rabando@doe.gov.ph Tel: (632) 8402068, Fax: (632) 8402068

MR. REDENTOR D. PASCUAL

Senior Geologist Petroleum Resources Development Division Department of Energy Energy Center, Merritt Road, Fort Bonifacio Taguig, Metro Manila, Philippines E-mail: rpascual@doe.gov.ph Tel: (632) 8124016, Fax: (632) 8402206

THAILAND MR. SUNGKOM BUNBOON Senior Geologist

Department of Mineral Fuels Shinnawatra Tower 3, 24 th Floor, Viphavadee-Rangsit Rd., Chatuchak, Bangkok 10900, Thailand E-mail: Sungkom@dmf.go.th

Tel: (662) 791-8300 ext. 5106, Fax: (662) 791-8357

MR. SURACHAI SIRIJIRAPATANA

Senior Geologist Department of Mineral Fuels Shinnawatra Tower 3, 24 th Floor, Viphavadee-Rangsit Rd., Chatuchak, Bangkok 10900, Thailand E-mail: Surachai_siri@hotmail.com Tel: (662) 791-8337, Fax: (662) 791-8340

VIETNAM MR. HOANG VAN HOA

Senior Geologist PETROVIETNAM 22 Ngo Quyen Str. Hanoi City, Vietnam E-mail: hvhoa_tdhi@hn.pv.com.vn Tel: (84-4) 8252526, Fax: (84-4) 8265942

MR. TRINH XUAN CUONG

Senior Geologist Exploration and Production, PETROVIETNAM 22 Ngo Quyen Str. Hanoi City, Vietnam E-mail: txcuong@hn.pv.com.vn Tel: (84-4) 8252526, Fax: (84-4) 8265942

CCOP TECHNICAL SECRETARIAT MR. SIMPLICIO P. CALUYONG

PPM Project Coordinator E-mail: sim@ccop.or.th Mobile: (66-1) 827 0527

MS. PETCHARAT SARAWISUTRA Programme Manager E-mail: fern@ccop.or.th Mobile: (66-1) 823 3729 CCOP Technical Secretariat 24th Fl., Suite 244-245, Thai CC Tower

889, Sathorn Tai Road, Bangkok 10120 Thailand Tel. (66-2) 672 3080 to 81, Fax. (66-2) 672 3082 PPM Website: http://www.ccop.or.th/projects/PPM.html E-mail : ccopts@ccop.or.th Website: http://www.ccop.or.th

Summary:

Mr. Tormod Slatsveen, Director of the Norwegian Petroleum Directorate

covered the topic on policies for investment opportunities that included among others,

the government strategic policies that resulted to the successful development of

Norway’s petroleum resources. The second resource person Mr. Cyrus Esphahanian,

Consultant – petroleum engineer from the USA, handled the topic onshore gas

development solutions that included case studies on (USA) unconventional onshore

gas fields, gas markets, transportations and gas regulations.

China’s presentations focused on the national policy for exploration,

development and production of petroleum resources, update on the status of

exploration and development activities in the case study basin, update on the status of

SINOPEC’s company-wide operations, and a report on how the knowledge learned

from the expert visit on petroleum exploration economics and functionalities of GeoX

v5.4 software were applied in the case study.

In addition, the participants from Vietnam, Thailand, the Philippines, and

Indonesia presented their national gas policy, highlighting the fiscal regimes and

updates on gas supply-demand status, development, and market.

Two group discussions focusing on the identification of the various challenges

in the case study basin and what and how solutions to the challenges can be best

achieved, both on a company and country perspectives. Also adding value was the

presentation on the case studies of gas fields in the US that also showcased how the

sharing of knowledge and best practices of various companies and governmental

institutions led to innovative technological solutions in exploration, development, and

production of unconventional gas fields. It offered a good lesson and motivation to

the all participants when addressing their own country’s challenges.

ANNEX 32

The Petroleum Policy and Management (PPM) Project 4th Workshop of the China – Sichuan Basin Case Study

30 May – 3 June 2006, Beijing, China

PROGRAM

“Exploration and Development Strategies for low permeability gas reservoirs and the role of the Government in achieving the strategies”

Day 1: 30 May 0830 Registration 0900 Opening Ceremonies

• Opening remarks CCOP TS • Welcome speech SINOPEC/MLR

Group Photo

0930 Coffee/tea break 1000 Background of the workshop and review of past activities Proj Coordinator 1100 China Presentations:

1. Development Strategy for the natural gas industry in China By: Dr. Qiu Haijun, Strategic Research Center of Oil and Gas Resources, Ministry of Land and Resources (MLR)

2. SINOPEC’S Technology and Challenges for Low-permeability Gas Reservoir Development By: Ms. Zhu Xueqian, Exploration & Production Research Institute, SINOPEC 3. Summary of the PPM China case study

By: Mr. Yang Dengwei, Exploration & Production Research Institute, SINOPEC

1200 Lunch 1300 Continue with China presentations 1400 Exploration and Development strategies for low permeability gas

reservoir – the role of the Government Resource person: MR. GAUTE ERICHSEN, Ministry of Petroleum and Energy, Norway

1. Policy and legal framework 2. Investments and incentives- a need for a coherent and competitive terms

and conditions 3. Identifying the challenges and policy solutions 4. How to communicate the opportunities to the companies effectively? 5. Encouraging R & D for new technologies

Country presentations and group discussions on government strategies for natural gas management

1. Cambodia 2. Indonesia 3. Philippines 4. PNG

1500 Coffee/tea break 1530 Continue with the presentations and discussions 1630 Summary of Day1 Project coordinator and Resource persons 1830 Welcome dinner Day 2: 31 May (am/pm coffee/tea break at 1000-1030 & 1500-1530 and lunch at 1200-1300) 0830 Continue with the presentations and discussions on “the role of the

government”

Exploration and Development strategies for low permeability gas reservoir- the technical challenges and solutions Resource person: PROF. DR. THOMAS BLASINGAME, Texas A & M University

1. low permeability gas resources assessment 2. identification of sweet spots and fracture prediction 3. identifying risks and rewards 4. drilling solutions- fracturing, underbalanced drilling, horizontal well,

etc 5. production technologies and future outlook 6. case studies

Country presentations and group discussions on technical challenges and solutions on natural gas development

1. Malaysia 2. Korea 3. Thailand 4. Vietnam

1430 Summary of Day 2 Project coordinator and Resource

persons Day 3: 1 June (am/pm coffee/tea break at 1000-1030 & 1500-1530 and lunch at 1200-1300) 0830 Continue with the presentations and discussions on “the technical challenges

and solutions” 1630 Summary of Day 3 Project coordinator and Resource

persons

Day 4: 2 June (am/pm coffee/tea break at 1000-1030 & 1500-1530 and lunch at 1200-1300) 0830 Continue with the presentations and discussions on “the technical challenges

and solutions” 1530 Summary of the workshop Project coordinator and Resource

persons Workshop evaluation Project Coordinator Field trip announcement SINOPEC Closing remarks Project Coordinator 1700 End of Day 4 Day 5: 3 June Field trip - Visit the Temple of Heaven then tour the Forbidden City. After lunch, visit the Summer Palace (departure time will be announced in the workshop) List of Participants

The Petroleum Policy and Management (PPM) Project 4th Workshop of the China – Sichuan Basin Case Study

30 May – 3 June 2006, Beijing, China

DISTINGUISHED GUESTS

1) MR. MA YONGZHENG

Deputy Permanent Representative of China to CCOP Deputy Division Director Department of International Cooperation, Science and Technology Ministry of Land and Resources (MLR) No. 64, Funei Street, Xicheng District Beijing 100812, People's Republic of China E-mail:yzma@mail.mlr.gov.cn, ma_yzh@yahoo.com Tel: (86-10) 6655 8407, Fax: (86-10) 6612 7247, 6655 7932

2) PROF. ZHENG HERONG Chief Geologist Petroleum Exploration & Production Research Institute, SINOPEC No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA Tel: (86-10) 82312026, Fax: (86-10) 82312089

3) MR. RONG QI

Vice Director, International Cooperation Division, Foreign Affairs Management Bureau SINOPEC No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA Tel: (86-10) 82312962, Fax: (86-10) 82312089

4) MR. LI XIAOMING

Director, International Cooperation & Training Division, Petroleum Exploration & Production Research Institute, SINOPEC No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA Tel. & Fax: (86-10) 8231 2978 E-mail: li-xming@pepris.com

RESOURCE PERSONS

NAME

POSITION / ADDRESS

1) MR. GAUTE ERICHSEN

Deputy Director General Oil and Gas Department Ministry of Oil and Energy Oslo, Norway E-mail: ge@oed.dep.no

2) DR. THOMAS A. BLASINGAME

Petroleum Engineering Texas A&M University 815 Richardson (for courier) College Station, TX (USA) 77843-3116 E-mail: t-blasingame@tamu.edu t-blasingame@mycingular.blackberry.net Tel: +1 979 845 2292, Fax: +1 979 845 7142 Mobile: +1 979 255 8808 http://pumpjack.tamu.edu/~t-blasingame/

PARTICIPANTS

CAMBODIA

1) DR. MEN DEN

Deputy Permanent Representative of Cambodia to CCOP Director of Petroleum Exploration & Production Division of CNPA E-mail: ppm_cambodia@online.com.kh menden@online.com.kh Tel: (855-16) 982299, Fax: (855-23) 890569, 987528 (H)

2) MR. NOUCH VIREAK

Petroleum Geologist, CNPA E-mail: nouchvireak@yahoo.com Tel: (855-12) 313777, Fax: (855-23) 890569 #13-14, Russian Confederation Blvd, Sangkat Kakab, Khan Dangkor, P.O. Box 1442, Phnom Penh, CAMBODIA

CHINA

3) PROF. DR. YUE LAIQUN

Head, Technology and Market Division Strategic Research Center of Oil & Gas Resources, Ministry of Land and Resources (MLR) No. 88, Funei Street, West District, Beijing 100034, China Tel: (86-10) 6655 8863, Fax: (86-10)66180103 Mobile: (86-0-13701023806 E-mail: yuelq@hotmail.com

4) DR. QIU HAIJUN

Strategic Research Center of Oil & Gas Resources, Ministry of Land and Resources (MLR) No. 88, Funei Street, West District, Beijing 100034, China Tel: (86-10) 6655 8851, Fax: (86-10)66558867 Mobile: (86-0-13693391066 E-mail: qhj149@163.com

5) MR. YANG DENGWEI

Senior Petroleum Geologist Petroleum Exploration & Production Research Institute, SINOPEC No. 31, Xueyuan Rd., Haidian District Beijing 100083, P.R.CHINA Tel: (86-10) 8231 2965 Fax: (86-10) 8231 2089 E-mail: yangdw@cj.net.cn

6) MS. ZHU XUEQIAN

Senior Engineer E & P Research Institute, SINOPEC No. 31 Xueyuan Road, Beijing, China Tel.: (86-10) 8231 2052 E-mail: zhuxq@pepris.com

7) PROF. XU XUHUI

Senior Engineer, Professor E & P Research Institute, SINOPEC No. 31 Xueyuan Road, Beijing, China Tel.: (86-10) 8231 2500 E-mail: Xuxh@pepris.com

NAME

POSITION / ADDRESS

8) MR. ZHOU QINGFAN

PPM Project Coordinator Senior Engineer, Professor E & P Research Institute, SINOPEC No. 31 Xueyuan Road, Beijing, China Tel.: (86-10) 82312989, Fax: (86-10) 82312089 E-mail: 21zhouqf@sohu.com

9) MS. LIU CUIRONG

Senior Geologist E & P Research Institute, SINOPEC No. 31 Xueyuan Road, Beijing, China Tel.: (86-10) 82313643, Fax: (86-10) 82312089 E-mail: LCR@pepris.com

10) MS. ZHAO HONGYU

Economist E & P Research Institute, SINOPEC No. 31 Xueyuan Road, Beijing, China Tel.: (86-10) 8231 2057 E-mail: zhy@pepris.com

11) MS. XIAO YURU

Senior Engineer E & P Research Institute, SINOPEC No. 31 Xueyuan Road, Beijing, China Tel.: (86-10) 8231 2769 E-mail: xiaoyr@pepris.com

12) MS. XIAO XIZHEN

Senior Engineer E & P Research Institute, SINOPEC Beijing, China Tel.: (86-10) 82312057, Fax: (86-10) 82312201 E-mail: zhy@pepris.com

13) MS. CAI LIXUE

Senior Geologist E & P Research Institute, SINOPEC, No. 31 Xueyuan Road, Beijing, China Tel.: (86-10) 82312885, Fax: (86-10) 82312089 E-mail: Cailx@pepris.com

14) MR. ZHANG YINGQIN

Senior Research Staff, International Cooperation & Training Division E & P Research Institute, SINOPEC No. 31 Xueyuan Road, Beijing, China Tel.: (86-10) 8231 2033 E-mail: Zhangyingqin@pepris.com

15) MS. MENG MIN

Engineer International Cooperation & Training Division E & P Research Institute, SINOPEC No. 31 Xueyuan Road, Beijing, China Tel.: (86-10) 8231 2054 E-mail: Mengmin@pepris.com

16) MS. XU MEIYAN

Engineer International Cooperation & Training Division E & P Research Institute, SINOPEC No. 31 Xueyuan Road, Beijing, China Tel.: (86-10) 8231 2054 E-mail: Xumy@pepris.com

17) MR. ZHU QIHUANG

Senior Geologist Geological Data Center, E & P Research Institute, SINOPEC No. 31 Xueyuan Road, Beijing, China Tel.: (86-10) 8231 2029 E-mail: Zhuqh@pepris.com

NAME

POSITION / ADDRESS

18) MR. YE DELIAO

Geologist WuXi Research Institute of Petroleum Geology, SINOPEC P.O. Box 916, Wuxi, Jiangsu 214151, China Tel:(86-510)83203146, Fax: (86-510)83203146 E-mail: ydl@mail.wuxisuo.com

19) MR. YANG SHENGLIANG

SINOPEC East China Branch, 1001 Huanyuang Building, 37# South Rehe Rd. Nanjing, Jiangsu, China Tel: (86-25) 5882 2288 -1001 E-mail: njysl@yahoo.com

20) PROF. LU ZHENGXIANG

Professor Institute of Southwest Petroleum Company, SINOPEC 66th Zhixiang Rd., Qinglongchang, Chengdu, Sichuan, China Tel: (86-28) 83505022, Fax: (86-28) 83505924 E-mail: Lzxw165@163.com

INDONESIA

21) MR. YUSEP KARTIWA CARYANA

Gas Technology Research Coordinator E-mail: yusepkc@lemigas.esdm.go.id Tel: (62-21) 7398276, Fax: (62-21) 7246150

22) MR. TUNGGAL

Head of Exploitation Division Exploitation Technology Research Coordinator E-mail: tunggal@lemigas.esdm.go.id Tel: (62-21) 7222978, Fax: (62-21) 7222978 R&D Center for Oil and Gas Technology “LEMIGAS” Jl. Ciledug Raya Kav. 109 Jakarta Selatan 12230 Indonesia

NAME

POSITION / ADDRESS

23) MR. DJUMLATI (OWN COST)

Exploration Manager of Western Indonesian Region BPMIGAS Patra Office Tower, 22 Fl., Jl. Jend Gatot Subroto, Kav. 32-34, Jakarta 12950, Indonesia Tel: (62-21) 52900245-48, Fax: (62-21) 52900118 E-mail: djumlati@bpmigas.com

KOREA 24) DR. BYEONG-KOOK SON

Principal Researcher Korea Institute of Geoscience and Mineral Resources (KIGAM) 30, Gajeongdong, Yuseonggu, Daejeon, Korea Tel: (82-42) 868-3208, Fax: (82-42) 862-7275 E-mail: sbk@kigam.re.kr

25) MRS. HAN JEONGMIN

Senior Researcher E&P Research Project Team, R&D Division, Korea Gas Corporation 638-1, Il-Dong, Sangrok-Gu, Ansan-City, Gyeonggi-Do, 425-790, Korea Tel: (82-31)400-7545 Fax: (82-31)416-7231 E-mail: jmhan@kogas.or.kr

MALAYSIA 26) DR. NASIR B HAJI DARMAN

Senior Manager PETRONAS Level 28, Tower 1, Petronas Twin Towers, Kuala Lumpur City Center, 50088, Malaysia E-mail: nasir_darman@petronas.com.my Tel: (603) 23315398, Fax: (603) 23313306

27) MR. ABD RAHMAN BIN HARUN

Staff Reservoir Engineer PETRONAS Carigali Sdn Bhd Level 21, Tower 1, Petronas Twin Towers Kuala Lumpur City Center, 50088, Malaysia E-mail: abdrahman@petronas.com.my Tel: (603) 23315250, Fax: (603) 23316014

PHILIPPINES 28) MR. RAMON ALLAN V. OCA

OIC-Director Energy Resource Development Bureau E-mail: ramonallan@yahoo.com rvoca@doe.gov.ph Tel: (632) 840-2068, Fax: (632) 840-2068

29) MR. REDENTOR D. PASCUAL

Supervising Science Research Specialist Petroleum Resources Development Division E-mail: rpascual@doe.gov.ph red_pascual@yahoo.com Tel: (63-2) 812-4016, Fax: (63-2) 840-2206 Department of Energy (DOE) Energy Center, Merritt Road, Fort Bonifacio Taguig City, Metro Manila 1201, Philippines

THAILAND 30) MR. SUNTON SRIGULWONG

Senior Geologist, Director of Petroleum Potential Assessment Group E-mail: sunton@dmf.go.th Tel: (66-2) 791 8345, Fax: (66-2) 791 8357 Mobile: (66-9) 968 1172

31) DR. PHUMEE SRISUWON

Senior Geologist E-mail: phumee@dmf.go.th phumee@yahoo.com Tel: (66-2) 7918345 Fax: (66-2) 7918357 Department of Mineral Fuels (DMF) Ministry of Energy, Shinawatra Tower III, 24th Floor, Viphavadi-Rangsit Road, Chatuchak Bangkok 10400, Thailand

VIETNAM 32) MR. HOANG VAN HOA

Senior Geologist PETROVIETNAM 22 Ngo Quyen Street, Hanoi, Vietnam E-mail: hvhoa_tdhi@hn.pv.com.vn Tel: (84-4) 8252526, Fax: (84-4) 8265942

33) MR. NGUYEN HUU NAM

Petroleum Geologist PETROVIETNAM Investment and Development Company (PIDC) 133 Thai-Thinh, Dong Da District, Hanoi, Vietnam E-mail: namnh@pidc.com.vn Tel: (84-4) 8561186, Fax: (84-4) 8561490

CCOP TECHNICAL SECRETARIAT 1) MR. CHEN SHICK PEI

Director CCOP Technical Secretariat E-mail: spchen@ccop.or.th

2)MR. SIMPLICIO P. CALUYONG

PPM Project Coordinator E-mail: sim@ccop.or.th Mobile: +661 827 0527

3) MR. LIU LIQUN

ICB-CCOP1 Project Coordinator E-mail: liu@ccop.or.th Mobile: +661 9855765

4) MS. PETCHARAT SARAWISUTRA

Programme Manager E-mail: fern@ccop.or.th Mobile: +661 8233729 CCOP Technical Secretariat 24th Floor, Room 244-245, Thai CC Tower 889, Sathorn Tai Road, Sathorn, Bangkok, 10120, THAILAND Tel: (66-2) 672 3080 to 81, Fax: (66-2) 672 3082 Website: www.ccop.or.th PPM Website: http://www.ccop.or.th/projects/PPM.html

Summary

The 4th workshop of the China case study was successfully conducted at the

Foreign Experts Building Hotel in Beijing on 30 May – 3 June 2006. The workshop

on Exploration and Development Strategies for low permeability gas reservoirs and

the role of the Government in achieving the strategies was attended by 34 participants

mostly senior technical personnel and management representatives of various

government agencies from 8 CCOP Member Countries.

The workshops program was basically divided into 2 topics, 1) role of

government in the exploration and development of the petroleum resources and 2) the

technological challenges and solutions to develop low permeability gas.

Mr Gaute Erichsen, Deputy Director General of the Oil and Gas Department,

Norwegian Ministry of Oil and Energy and Professor Dr Thomas Blasingame of

Texas A & M University were the main resource persons of the workshop. Mr

Erichsen presented the Norwegian experiences, policies and legal framework related

oil and gas development in the Norwegian Continental Shelf. The role of the various

Norwegian agencies as well as the operating companies was also highlighted in the

presentations. Dr Blasingame covered the technology topic of the workshop that

includes presentations of experiences in the US, applied technologies to recover more

gas resources from the ground, making value of data obtained from actual operations

and researches, and collaboration efforts of Government, academies, and industry to

address the technical challenges.

The CCOP Member Countries, led by the host country- China, presented their

respective experiences on applied technologies for low permeability gas fields as well

as policies to improve petroleum production. Various success stories from projects

and researches addressing low permeability gas were also presented and discussed

during workshop.

The final discussions also looked into the future opportunities for developing

gas resources, including production technologies. The general conclusion is that well

stimulation will remain a critical issue for all low permeability gas systems. Other

issues includes: identification of high water zones, multilayer monitoring, areas for

improvement for metering and pressure reading, mitigation of impact to environment,

etc.

ANNEX 33

The 1st Expert Visits of PPM China Case Study 15-19 March 2004, Chengdu, China

1. Schedule & Activities

In 15th March, the expert, MR. CYRUS ESPHAHANIAN, a Consultant on

Reservoir Management from the USA made an on site investigation on CL562 well in

Luojiang prospect in the Western Depression of Sichuan basin. It is in the north of

and about 80 km from Chengdu City. Mr. ESPHAHANIAN made a detailed

observation on core of the 4th and 2nd member of Xujiahe Formation, low Trassic.

He also compared the relationship of fracture and gas show.

The mud logs are observed in detail and thought the quality is quite good. Later

on, Mr. ESPHAHANIAN visited the gas transportation station of Chuan 134. It is

the biggest gas transportation of Southwest Company, SINOPEC. Finally, he

observed the core of Penglaizhen (upper Jurassic) and Shaximiao Formation (middle

Jurassic) in the core store of Xinchang gas field. After the on-site study, Mr.

ESPHAHANIAN obtained the concrete reorganization on the situation, which benefit

the communication of both him and the SINOPEC experts.

From 16th to 19th March, at first, the Chinese experts introduced the current

activities of gas well stimulation in the Western Depression of Sichuan basin. Mr.

ESPHAHANIAN made introduction and discussions on the resource evaluation, shear

fault study, fracturing (fracturing with prop pant), proppant technique, testing

technique, testing curve analysis, review on development in Wyoming State, USA and

drilling technique.

2. Achievements

2.1 Southwest Petroleum Company, SINOPEC made an introduction on the current

situation of exploration and development on Xujiahe Formation from the following

aspects.

(1) Summary of exploration and development

(2) Geological feature of gas reservoir engineering

(3) Current situation of drilling and completion technology

(4) Current situation of reservoir stimulation

2.2 Mr. ESPHAHANIAN made introduction mainly on the following aspects

(1) resource evaluation on Jonah gas field

(2) Case study on shear fault in Wyoming state.USA

(3) reservoir stimulation in Dfit area

(4) The effect of proppant on the conductivity of proppant supported fractures

(5) evaluation of the fracture from the operation design, restoring testing and

production analysis. (6) The property and distribution of permeability, capillary force and relative

permeability are very important to the evaluation, harm analysis and reservoir stimulation of tight gas reservoir.

(7) Operation curve analysis for multiple tight sands of Mamm Creek gas field in

Piceance basin, Colorado.

(8) the current situation and development trend for tight sand gas reservoir.

(9) Production evaluation after reservoir stimulation in Jonah gas field

2.3 The experts made discussion and communication on the problems of exploration and development in the tight gas reservoir

(1) the current situation of well completion technique in high temperature and high pressure gas wells of China and foreign oil company

(2) development obstacle in gas reservoir with corrosion gas (3) the main concerns of the fracturing design in natural fracture gas reservoir

(4) how to control the fracture height in the condition of weak barrier

(5) how to decrease the pressure during fracturing operation

(6) how to optimize shooting procedure in tight gas reservoir

(7) the main concerns of fracturing operation in gas-bearing horizon

(8) the major problems of reservoir stimulation in horizontal wells.

2.4 Comparison and suggestion on the gas development of foreign countries and West

Sichuan

(1) The lack of development ideas and technical dependence in fracturing of multiple

gas reservoir, lack of equipment, the differences in the aim of technology choice

(foreign oil company mainly aiming at economy , China has other objects). (2) Sometimes, in China, It does not have good method in fracturing operation and insufficient study on how the structure and faults effect the fracturing result. Also, lack of relevant equipments.

(3) The over demand on the safety coefficient in engineering

(4) We lack behind in the equipment and software comparing with the foreign oil

company. We hope to invite more experts to visit China to give more advices for us.

(5) We should take more courage on technique innovation and do not be so

conservative

(6) Some difference ideas are discovered when communicating with the foreign

experts, we should adopt more new ideas.

(7) The purpose of test in fracturing analysis of foreign oil company is more

sufficient than ours, also they have the clear ideas to do it. The purposes and

utilization of test in fracturing get some extension (focus on the evaluation of

reservoir production). More tests in fracturing, optimized shooting procedures, and

less shotting the length of sand (make the fracture extended to far distance).

(8) Strengthen using dynamic data; care about the relation between safety and

production, also the production and benefit. the equipment is the important factor to

control the technology development

(9) The resources evaluation (cell type) has some reference meanings

(10) It should care about the borehole structure (from economy consideration); more

detail on reservoir evaluation (don’t be so subjective)

(11) It need to use the multiple fracturing technology in tight gas reservoir. The

fracturing directly by casing is seldom utilized in China. Some equipment and

technology should be introduced.

(12) The mud logging data is more important than logging data in gas wells (the

drilling is under pressure in U.S.A). The multiple sands production idea and

developing all the reservoirs in one operation should be study. And we also should

adopt good reservoir protection methods.

(13) The drilling requirements should be considered when applying technical casing

and the reservoir stimulation should be concerned when applying oil string.

(14) The biggest achievements we have gotten from the 1st expert visits of China

PPM are lies in: strengthen the confidence to successful in the Western depression of

Sichuan basin. It is similar in reservoir quality of Rock Mountain and the Western

depression of Sichuan basin. They carry out the multiple sands production. We should

choose the right methods to explore and develop the Western depression of Sichuan

basin. (15) Right expert is chosen. Mr. Cyrus is very excellent. He introduces some new ideas and offer wide range of message. List of Participants No Name Name Position e-mail tel company 1 Mr.Cyrus Esphahanian Engineer ayrab@aol.com 303-697-9799 2 杨登维 Mr.Yang Dengwei Professor, Geologist yangdw@cj.net.cn 010-82312965 Sinopec

3 王 川 Dr.Wang chuan Professor, Geologist wang@pepris.com 010-82312029 Sinopec

4 李晓明 Dr.Li Xiaoming Director, Professor Li-xming@pepris.com 010-82312978 Sinopec

5 陈昭国 Chen Zhaoguo Director, Geologist Chenzg1963@163.com 028-83358439 Sinopec

6 吕卫阳 Ms.Lv Weiyang Geologist Luweiyang996@yahoo.com.cn 028-83331317 Sinopec

7 张晓鹏 Mr.Zhang Xiaopeng Director, Geologist 138-08065039 Sinopec

8 李书兵 Mr.Li Shubing Chief Geologist, Geologist Lisb030@263.net 028-83505022 Sinopec

9 王亮国 Mr.Wang Liangguo Geologist liangguo@mail.sc.cninfo.net 028-83503824 Sinopec

10 詹国卫 Mr.Zhan Guowei Engineer zgw-james@sino.com 028-89628419 Sinopec

11 曾 焱 Mr.Zeng Yan Engineer 028-83505925 Sinopec

12 王世泽 Mr.Wang Shize Chief Engineer, Engineer Wangsz63@vip.163.com 0838-2402213 Sinopec 13 林 辉 Mr.Lin Hui Chief Engineer, Engineer 139-80102957 Sinopec

14 江 健 Mr.Jiang Jian Director, Engineer 0838-2409260 Sinopec

15 陈海龙 Mr.Chen Hailong Engineer chenhlism@126.com 0838-2409706 Sinopec

16 刘 林 Mr.Liu Lin Engineer Llin1999@sohu.com 136-48100809 Sinopec

17 林永茂 Mr.Lin yongmao Engineer linyongmao@163.net 0838-2420078 Sinopec

18 王 强 Mr.Wang Qiang Engineer 137-00910164 Sinopec

19 马旭川 Mr.Ma Xuchuan Engineer 137-00910262 Sinopec

20 林立世 Mr.Lin Lishi Engineer Sinopec

21 余瑞青 Ms.Yu Ruiqing Engineer xnyrq@163.com Sinopec

22 余 渝 Ms.Yu Yu Engineer Yy800129@163.com 0838-2420078 Sinopec

23 景泉源 Mr.Jing Quanyuan Engineer jqyyxj@yahoo.com.cn 0838-2402251 Sinopec

24 曾 伟 Mr.Zeng Wei Engineer cat-tail@163.com 131-58681747 Sinopec

25 潭福吉 Mr.Tan Fuji Engineer tfj.0311@163.com 131-58687971 Sinopec Summary

The SINOPEC experts presented the current exploration and development

activities, particularly the gas well stimulation activities in the case study basin. Mr

Esphahanian shared his experiences in resource evaluation, shear fault study,

fracturing, testing technique, etc and fracture analysis case studies on gas

development in Wyoming State.

ANNEX 34

The Report of the 2nd Expert Visit of China PPM Case Study, CCOP

April 19-23, 2004, Chengdu, Sichuan, China

1. Introduction The 2nd expert visit of China PPM Case Study was held in Southwest Petroleum Branch Company,SINOPEC. on April 19-23. The American expert Dr. Ben E. Law was invited to China for this case study. Dr Law graduated from San Diego University, USA. During 1967-1969, he continued his study in the same university and got his Master degree, later he was awarded the reputation Ph.D of the All Russian Petroleum Research Exploration Institute in 1997. Dr Law has more than 25 years of rich experience in research on unconventional gas system, especially in the study of the basin-centered gas system and coal-bed gas. With many years of working experience in USGS and serving as President, Committee or Consultant Expert of magazines or organizations such as RMAG、AAPG、PTTC、CBM, he has won the high reputation in the world. 2、Expert visit

On April 19th, Dr Law and some Chinese experts from SINOPEC visited the outcrop of Upper Triassic T3m, T3t, T3x of ShiFang-Jinhe profile in Longmen Mountain, located in the west edge of Sichuan basin. The experts observed the lithology, sedimentary facies, structure, the geological character, resource-reservoir-seal in the area. Chinese experts introduced the basic geologic features of this district, the current condition of exploration and development in the western depression of Sichuan basin. After the visit, Dr. BEN LAW expressed that he got the actual recognition on the geological features of the western depression of

Sichuan basin, which will benefit the later research and communication on the Western Depression of Sichuan basin. From April 20-22, Mr. Ben Law made detailed communication with the Chinese experts from Southwest Petroleum Branch Company, SINOPEC. At the beginning, Dr. Ben Law made a presentation on the “basin-centered gas system”, then made discussion with Chinese experts on the deep petroleum geological condition of the western depression of Sichuan basin, and sketched out a joint-well profile, based on the data of the western depression of Sichuan basin. Thus we can approximately assure that the deep petroleum in the western depression of Sichuan basin belongs to the basin-centered gas system. 3. Participants 19 participants were present in the meeting, including the American expert Dr. Ben Law, the other 18 participants from SINOPEC. The participants group includes 18 geologists experts, one petroleum engineer. They all have made great achievements and own rich experience in their researching fields. 4. Achievements and Results 4.1 Chinese experts introduced the petroleum geological and current situation of the exploration & development in the western depression of Sichuan basin from the following aspects:

(1) Regional tectonic features; (2) Source rock condition; (3) Lithology, semimetary facies, porosity and permeability character; (4) Seal character; (5) Summary of the exploration and development; (6) Engineering geological features for gas reservoirs.

4.2 The foreign expert mainly introduced on the “basin-centered gas system”

(1) The concept of basin-centered gas system, BCG: the abnormally pressured, lack of obvious downdip water contact, accumulating in the low-permeablility reservoirs (<1.0 md).

(2) The development history and classification of basin-centered gas system

(3) Distribution of the basin-centered gas system: by now the discovered basin-centered gas system only accounts for the small part of the total basin-centered gas resources. The unconventional gas reserves(including the basin-centered gas reserves) are largely greater than conventional gas reserves.

(4) Exploration strategy of basin-centered gas system is divided four steps: reconnaissance phase; recognition phase; delineation phase; sweet-spot identification phase

(5) How to identify the basin-centered gas system: R0-T method can be used to preliminarily identify the abnormally pressure status of gas-bearing horizon and further lay a basis for the sweet-spot identification. Several basin-centered gas systems in America are taken as examples to explain how to identify the abnormally pressure by this method.

(6) the data for research on basin-centered gas system, and exploration & evaluation steps for BCG.

(7) Reservoir classification plan: conventional reservoir (>1.0md), near tight reservoir (1.0-0.1 md), unconventional reservoir (<0.1md)

(8) Distribution of potential basin-centered gas accumulation in U.S.A. see figure 1;

(9) Accumulation model and exploration experience of basin-centered gas system in Piceance, Greater Green River basin in Rocky Mountain;

(10) Field study on basin-centered gas system in Timan-Pechora basin, Russia

(11) Field study on basin-centered gas system in Dnieper-Doneksk basin, Ukraine

(12) Field study on basin-centered gas system in Ahnet basin,Algeria

(13) Field study on basin-centered gas system in Risha basin,Jordan

Figure 1: Distribution of potential basin-centered gas accumulation in U.S.A 4.3 The experts of both sides made discussion and communication on the middle-deep tight gas reservoirs of the western depression of Sichuan basin;

(1) the source rock is highly mature, rich in organic content, and abundant distribution of source rock

(2) By taking into account the fluid production, pressure, temperature, maturity of source rock, porosity and permeability, the middle-deep gas reservoirs of the western depression of Sichuan basin can be classified as basin-centered gas system. Therefore the volumetric method should be used in resource evaluation and its results will be much greater than that if evaluation by trap method.

(3) The exploration and development for basin-centered gas system is different from that of conventional gas system, the crucial point is to find out the gas-water transitional zone. As the the burial depth of the gas-water transitional zone downdip is shallow the preliminary exploration cost, as well as the fracturing cost will be lower and the demand on the fracturing technology will be lower than that of deeper reservoir, therefore the economical benefits will be increased greatly.

(4) Through the on-site study, Dr. Ben Law make an conclusion that the gas-water transitional zone should distribute in the east of the western depression of Sichuan basin district, approximately in the east of Longquan Mountain.

(5) On view of the basin-centered gas system characterS, more deflecting wells and horizontal wells should be drilled to encounter more gas-bearing sand body and release more gas reserves.

5. Conclusion By the CCOP-PPM project, we invited the American expert Dr. Ben Law to come to China for this expert visit. Combining the actual situation of the Western depression of Sichuan basin, experts of both sides (Dr Law and SINOPEC Experts) exchanged their own views on the basin-centered gas system in the deep & tight gas reservoirs of the western

depression of Sichuan basin and agreed that the deep tight gas reservoirs of the western depression of Sichuan basin belongs to the basin-centered gas system. Further validation, however, is needed on this matter, the latter exploration work should be carried out. It can’t solve all the problems only by several days communication. We suggest that the research work on the basin-centered gas system of the western depression of Sichuan basin should be strengthened in the future, therefore more beneficial proposals on the exploration plan would be put forward for Southwest Petroleum Branch Company, SINOPEC. List of Participants No Name Name Position e-mail tel company 1 Mr. Ben E. Law Consulting Geologist belaw@worldnet.att.net 303-989-7252 2 杨登维 Mr.Yang Dengwei Professor, Senior Geologist yangdw@cj.net.cn 86-10-82312965 Sinopec 3 李书兵 Mr.Li Shubing Vice-director&Chief Geologist, Senior Geologist Lisb030@263.net 86-28-83505022 Sinopec 4 王亮国 Mr.Wang Liangguo Geologist Liangguo01@163.com 86-28-83503824 Sinopec 5 陈 兰 Ms.Chen Lan Geologist Janetchen2004@163.com 86-28-83504966 Sinopec

6 陈 敏 Ms.Chen Min Geologist Chenmingde1019@163.com 86-28-83504966 Sinopec 7 黎华继 Ms.Li Huaji Senior Geologist Zhsh-lhj@163.com 86-28-83500729 Sinopec

8 姜金兰 Ms.Jiang Jinlan Geologist Jjl-307@163.com 86-28-83500729 Sinopec

9 罗 锋 Ms.Luo Feng Geologist Lf-2000@163.com 86-28-83506370 Sinopec

10 杨凯歌 Mr.Yang Kaige Geologist 86-28-83500729 Sinopec

11 詹国卫 Mr.Zhan Guowei Engineer zgw-james@sino.com Sinopec

12 王传忠 Mr.Wang Chuanzhong Geologist Wcz168@sina.com 86-28-83503824 Sinopec 13 罗啸泉 Mr.Luo Xiaoquan Senior Geologist Lxq6312@21cn.com 86-28-83503824 Sinopec 14 魏力民 Mr.Wei Limin Senior Geologist wlm@163.com 86-28-83501232 Sinopec

15 吕志洲 Mr.Lu Zhizhou Geologist Youngfour4@163.com 86-28-83501232 Sinopec

16 张贵生 Mr.Zhang Guisheng Senior Geologist Zgsyjy1963@sina.com 86-28-83526812 Sinopec 17 黄 强 Mr.Huang Qiang Geologist Major980@sina.com 86-28-83501232 Sinopec

18 王 信 Mr.Wang Xin Senior Geologist Wxin1128@eyou.com 86-28-83500729 Sinopec 19 唐 进 Mr.Tang Jin Senior Geologist 86-28-83526812 Sinopec

Summary

Dr. Ben Law and the Chinese experts from SINOPEC exchanged their views on the

basin-centered gas system and the deep & tight gas reservoirs of the western

depression of Sichuan basin, and agreed that the deep- tight gas reservoirs of the

western depression of Sichuan basin belongs to the basin-centered gas system. The

visit has also led to a recommendation that further research work on the basin-

centered gas system of the western depression of Sichuan basin should be pursued and

proposals on the exploration plan would be put forward for Southwest Petroleum

Branch Company, SINOPEC.

ANNEX 35 PPM Project CHINA case study 3rd Expert Visit to China, April 20-24, 2005 Modelling of Exploration Projects by use of GeoX 5.4 Expert: Dr. Alfred Kjemperud, The Bridge Group AS

Objectives and Expected outcome When completing this workshop, the delegates will have a basic understanding of exploration strategy and resource assessment and a good understanding of deterministic and probabilistic economic modelling of petroleum exploration projects. The delegates will have performed realistic exercises by use of the software GeoX version 5.4 and should be able to initiate and carry out full scale projects with only limited supervising and assistance

Plan for Execution Day 1: 20 April 2005 Exploration Strategy and Resource Assessment

• Exploration Strategy • General play analysis methodology • Play analysis in GeoX 5.4

Exercise:

Play analysis exercise using GeoX 5.4 Day 2: 21 April 2005 Prospect analysis

• General prospect analysis • Prospect analysis in GeoX 5.4

Exercise:

Prospect analysis exercise using GeoX 5.4 and data from Sichuan basin Day 3: 22 April 2005 Petroleum Economy and Economic Modeling

• Basic petroleum economy • Exploration Economics • Petroleum Economic modelling in general • The full cycle GeoX 5.4 modelling tool. Detailed description of the software

o Deterministic modelling (intermediate input) Exercise: Simple exercise using deterministic modelling in spreadsheet based models and GeoX 5.4

Day 4: 23 April 2005

Probabilistic Economic Modelling by use of GeoX 5.4

• The full cycle GeoX 5.4 modelling tool. Detailed description of the software o Probabilistic modelling

• Generating production profiles in GeoX 5.4

Exercise: Full cycle probabilistic GeoX exercise using data from Sichuan basin

Day 5: 24 April 2005 Fiscal Regimes and Economic Modelling

• General aspects of fiscal regimes • Risk and risk analysis • Analysis of fiscal regimes

Exercise: Full cycle sensitivity modelling on fiscal parameters

List of Participants NAME POSITION / ADDRESS RESOURCE PERSON Dr. Alfred Kjemperud

Senior Partner The Bridge Group AS Billingstadsletta 46, P.O. Box 229, N-1361 Billingstad, NORWAY Tel: 47-66-850835, Fax: 47-66-850877 Mobile: 47-90-898765, E-mail: akj.bridge@online.no

CCOP TECHNICAL SECRETARIAT Mr. Simplicio P. Caluyong

PPM Project Coordinator Mobile Phone: (66-1) 827 0527 E-mail: sim@ccop.or.th CCOP Technical Secretariat 24th Fl., Suite 244 – 245, Thai CC Tower 889 Sathorn Tai Road., Sathorn, Bangkok 10120, Thailand Tel: (66-2) 672 3080-81, Fax: (66-2) 672 3082 E-mail: ccopts@ccop.or.th, Website: www.ccop.or.th

PARTICIPANTS CAMBODIA 1) Mr. Lim Vatha Deputy Director of Upstream Division

Cambodian National Petroleum Authority (CNPA) # 13-14, Russian Federation Blvd., Sangkat Kakab, Khan Dangkor, P.O. Box 1442, Phnom Penh, Cambodia Tel: (855-11) 956 366, Fax: (855-23) 890 569 E-mail: ppm_cambodia@online.com.kh

INDONESIA 2) Mr. Sasongko Hadipandoyo

Senior Staff of Hydrocarbon Resource Assessment Group, Exploration Division PPPTMGB “LEMIGAS” Jalan Ciledug Raya Kav 109, Cipulir, Kebayoran Lama, Jakarta

12230, INDONESIA Tel: (62-21) 739 4422 ext. 1375, Fax: (62-21) 739 4662, 724 6150 E-mail: sasongko@lemigas.esdm.go.id

PHILIPPINES 3) Ms. Editha Abangan

Supervising Science Research Specialist Petroleum Resources Development Division Department of Energy (DOE) Energy Complex, Merritt Road, Fort Bonifacio, Taguig, The Philippines Tel: (63-2) 812 4016, Fax: (63-2) 840 2206 E-mail: eabangan@doe.gov.ph

CHINA 4) Mr. Yang Dengwei

Professor Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: yangdw@cj.net.cnTel: (86-10) 8231 2965, Fax: (86-10) 8231 2089

5) Mr. Zhou Qingfan

Vice Director E&P Strategy and Planning Division Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: 21zhouqf@sohu.com Tel: (86-10) 8231 2299, 82312989, Fax: (86-10) 8231 2089

6) Mr. Guo Baoshen Vice Director E&P Strategy and Planning Division Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: gbs@pepris.comTel: (86-10) 8231 2897, Fax: (86-10) 8231 2089

7) Ms. Liang Haiyun Vice Director Overseas Center Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: lianghy01@pepris.com Tel: (86-10) 8231 2103, Fax: (86-10) 8231 2075

8) Mr. Qin Weijun Professor E&P Strategy and Planning Division Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: Qinwj@pepris.com Tel: (86-10) 8231 2885, Fax: (86-10) 8231 2089

9) Ms. Xu Xianghua Senior Engineer E&P Strategy and Planning Division Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: xuxianghua@pepris.com Tel: (86-10) 8231 2885, Fax: (86-10) 8231 2089

10) Mr. Zhu Youhong

Senior Engineer E&P Strategy and Planning Division Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: zhuyh66@pepris.com Tel: (86-10) 8231 2885, Fax: (86-10) 8231 2089

11) Ms. Xiao Xizhen Senior Engineer

E&P Strategy and Planning Division Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: xiaoxz@pepris.com Tel: (86-10) 8231 2057, Fax: (86-10) 8231 2089

12) Ms. Zhao Hongyu

Economist E&P Strategy and Planning Division Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: zhy@pepris.com Tel: (86-10) 8231 2057, Fax: (86-10) 8231 2089

13) Ms. Miao Li Economist E&P Strategy and Planning Division Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: miaoli@pepris.com Tel: (86-10) 8231 2057, Fax: (86-10) 8231 2089

14) Ms. Luo Ping Engineer E&P Strategy and Planning Devition Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: luoping@pepris.com Tel: (86-10) 8231 2057, Fax: (86-10) 8231 2089

15) Ms. Liu Cuirong Senior Engineer E&P Strategy and Planning Division Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: lcr@pepris.com Tel: (86-10) 8231 2907, Fax: (86-10) 8231 2089

16) Ms. He Hong Engineer Exploration Department Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R CHINA E-mail: hehong@pepris.com Tel: (86-10) 8231 2946, Fax: (86-10) 8231 2089

17) Ms. Wang Xiuzhi Senior Engineer Natural Gas Sector Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: wangxz@pepris.com Tel: (86-10) 8231 2096, Fax: (86-10) 8231 2096

18) Ms. Cao Yan Engineer Nature Gas Sector Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: caoyan@pepris.com Tel: (86-10) 8231 2096, Fax: (86-10) 8231 2096

19) Ms. Li Ting Natural Gas Sector Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: liting@pepris.com Tel: (86-10) 8231 2096, Fax: (86-10) 8231 2096

20) Mr. Ding Jianke Engineer Oversea Research Center

Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: dingjianke@pepris.com Tel: (86-10) 8231 2082, Fax: (86-10) 8231 2075

21) Mr. Wang Rui Engineer Oversea Research Center Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: wangrui@pepris.comTel: (86-10) 8231 2082

22) Ms. Liu Hua Senior Engineer Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: liuhua@pepris.com Tel: (86-10) 8231 2074, Fax: (86-10) 8231 2075

23) Mr. Miao Bin Geologist Oversea Research Center Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: miaobin@pepris.comTel: (86-10) 8231 2099, Fax: (86-10) 8231 2075

24) Ms. Qiu Liwei Geologist Geological information Center Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: qiulw@pepris.comTel: (86-10) 8231 2039, Fax: (86-10) 8231 2089

25) Mr. Bai Zhenrui Senior Geologist Geological information Center Exploration & Production Research Institute, Sinopec, No.31 Xueyuan Road, Haidian District, Beijing, P.R. CHINA E-mail: bzr369@pepris.comTel: (86-10) 8231 2029, Fax:(86-10) 8231 2089

26) Mr. Gan Weixing

Economist Exploration & Production Research Institute, Sinopec. E-mail: ganwx@pepris.com Tel: (86-0991) 3856473

27) Mr. zeng Tao Senior Engineer Exploration & Production Research Institute, Sinopec. 2F,Yintong, South Beijing Road ,Urumchi,PR.CHINA E-mail: ZengTao426@pepris.com Tel: (86-0991) 3662013

28) Mr. Wang Liangguo

Petroleum Economist Institute of Exploration and Development, Southwest Branch Company Sinopec. QingLongChang, ChengDu ,PR.CHINA E-mail: lisb030@163.com Tel: (86-028) 8350 3824, Fax: (86-028) 8350 5924

29) Ms.Li Huaji Geologist Institute of Exploration and Development, Southwest Branch Company Sinopec. QingLongChang, ChengDu ,PR.CHINA Tel: (86-028) 8350 3824, Fax:(86-028) 8350 5924

30) Mr.Li Shubing Vice Dircetor, Chief Geologist

Institute of Exploration and Development, Southwest Branch Company Sinopec. QingLongChang, ChengDu ,PR.CHINA E-mail: lisb030@163.com Tel: (86-028) 8350 5022, Fax: (86-028) 8350 5924

Summary

Dr. Alfred Kjemperud conducted the course that was attended by a total of 30

participants from the various divisions of SINOPEC’s E & P Research Institute and 3

participants from the Philippines, Indonesia and Cambodia.

Although the course was specially requested by China, it was also clear that the other

case study host countries, after consultation with their project coordinators during the

preparation of the expert visit, also needs to be trained on the usage and

functionalities of the GeoX version 5.4. The participants to this course are mostly

advanced GeoX users. The lectures on exploration strategy, resource assessment,

petroleum economy and economic modeling were supported by exercises using data

from the Sichuan basin. The participants have learned more on the new functionalities

of GeoX that will be useful in the case studies.

ANNEX 34

The CCOP Petroleum Policy and Management (PPM) Project 4th Expert Visit to the China – Sichuan Basin Case Study

Engineering Technology Institute of Southwest Branch

Deyang, Sichuan Province 18-19 May 2006

Technology Exchange: Solutions to the development and production challenges in

the low permeability (tight) gas reservoirs Program

Day 1: 18 May 2006 0830 Registration 0900 Opening/welcome remarks

Mr. Li Gang, Director, SINOPEC SW Branch

0915 Group Photo/coffee-tea 0940 Background of the PPM Project and China case study Mr. Simplicio P. Caluyong, PPM Project Coordinator, CCOP Technical

Secretariat 1030 The development and production challenges in the case study basin Mr. Ren Shan, Sr. Engineer, SINOPEC SW Branch 1100 Discussions 1200 Lunch break 1330 The Angsi A Field Fracturing Campaign and the lessons learned

Mr Wukar Hussain B Mazoor Hussain, Sr. Production Engineer, PETRONAS CARIGALI SDN BHD

1430 Discussions 1530 Coffee/tea break 1545 Discussions (continued) 1700 End of day 1 Day 1: 19 May 2006

0900 Presentation of data from modeling and actual field operations Mr. Ren Shan and his team 1000 Discussions 1030 Coffee/tea 1045 Fracturing Technology: sharing of information

Mr Mohd Zaki B Awang, Sr. Production Engineer, PETRONAS CARIGALI SDN BHD

1130 Discussions 1200 lunch break 1330 Discussions – sharing of technical knowledge 1630 Summary and closing statements, end of visit. List of Participants NO NAME TITLE EMAIL ADDRESS

1 Chen Lan Editor deepbasin2002@yahoo.com

2 Ren Shan Senior Engineer renshan163@163.com

3 Liu Lin Engineer llin1999@163.com

4 Huang Yuzhong Engineer hyz0838@163.com

5 Yang Yonghua Engineer yyh3956@126.com

6 Yan Jinchuan Engineer shanchuan72@sina.com

7 Fang Xing Engineer loveyou9mei@yahoo.com

8 Lan Fang Engineer amanda-louiskoo@sohu.com

9 Sun Yong Engineer scswpisy@163.com

10 Wang Xingwen Engineer steven-4321@163.com

11 Yang Yi Engineer yangyi79234@126.com

12 Ma Fei Engineer gcs.jy.jmf@tom.com

13 Lin Lishi Engineer gsylls@163.com

14 Yang Dengwei Senior petroleum

geologist

yangdw@cj.net.cn

15 Jiang Haijun Senior Engineer jianghjun@sina.com

16 Simplicio P.Caluyong Proj. coordinator sim@ccop.or.th

17 Mohd Zaki Awang Staff Prod.

Technologist

zakiaw@petronas.com.my

18 Wukar Hussain Staff Prod.

Technologist

wukarhussain_mazoor

hussain@petronas.com.my

Summary

Mr Wukar Hussain B Mazoor Hussain and Mr Mohd Zaki B Awang both

Senior Production Engineers of PETRONAS Carigali Sdn Bhd visited the

Engineering Technology Institute of SINOPEC Southwest Branch in Deyang, Sichuan

Province on 18-19 May 2006 to share PETRONAS experiences on development and

production from low-k (tight) gas sands.

The objectives of the visit is find technical solutions to the fracturing

challenges in order to obtain economic benefit from the deep tight gas sand reservoir

in the case study basin. The 2-day visit started with the welcoming of the guests by

Mr Li Gang, Director and party Committee Secretary, followed by the brief

presentations on the background of the CCOP PPM Project and the China case study

by the PPM Coordinator. Mr Ren Shan, Senior Petroleum Engineer of the Institute

then presented the development and production challenges and issues faced by his

team in the case study basin. The PETRONAS experts presented the Angsi A Field

fracture campaign - their own challenges and solutions that successfully resulted in

the economic development and production of the low-k sand reservoirs. The

presentations also highlighted in details the documented lessons learned from various

processes in field development and production, the economics of the campaign,

strategies for continuous performance improvement, and baselines.

The open discussions, display of technical data- charts, logs, sections, etc, and

exchange of knowledge/expertise within and outside the meeting room made the

activity achieved its purpose. It is now for the Chinese team to take advantage of the

knowledge learned from this visit and find ways to give value to the knowledge.

ANNEX 37 China Case Study Dissemination Seminar

The Dissemination Seminar of the PPM China case study was conducted at the

Foreign Experts Building Hotel, Beijing on 5 June 2005. The seminar is the final

activity of the China – Sichuan basin case study of the PPM Project wherein the case

study team reported to the China stakeholders the results and recommendations of the

study. The report also highlighted the knowledge learned from the China case study

and in China’s participation in other PPM case studies in Indonesia, the Philippines

and Cambodia, and how these knowledge were given value.

Mr Yang Dengwei of SINOPEC and the most senior geoscientist in the PPM

China team was given the opportunity to report the results and recommendations of

the China case study. The China team members are mostly technical staff from

SINOPEC. The report focused on the following topics.

1. Resource assessment and economic analysis

2. Exploration risks

3. Exploration and Development options

4. Gas market

In attendance during the seminar were senior officials from the Ministry of

Land and Resources and senior management representatives from the 3 National Oil

Companies of China; SINOPEC, CNPC and CNOOC. Representing the CCOP

Technical Secretariat are Director Mr Chen Shick Pei and PPM Coordinator Mr

Simplicio P Caluyong.

A Document summarizing the China case study was distributed during the

Seminar. The executive summary of the Document summarizes the results and

recommendations of the China case study.