Directorate General of Hydrocarbons New Delhi, India V. K. Sibal Director General TAKING UPSTREAM TO NEXT LEVEL
Dec 27, 2015
Directorate General of HydrocarbonsNew Delhi, India
V. K. SibalDirector General
TAKING UPSTREAM TO
NEXT LEVEL
• Exploration History
• Achievement - PSC regime
• Future fossil fuels
• What Next ???
• Way forward
• Exploration History
• Achievement - PSC regime
• Future fossil fuels
• What Next ???
• Way forward
PRESENTATION OUTLINE
EXPLORATION HISTORYEXPLORATION HISTORY
Pre Independenceera
What Next ???
NELP era
Pre NELP era
Nomination era
1886 - 1946 1947 - 1990 1990 - 1996 1997 – till date Future ???
EXPLORATION HISTORY
PSC Regime
HIGHLIGHTS – PSC Regime
PSC Regime : PSC Regime : Pre-NELP Pre-NELP ((1990 – 1996) 1990 – 1996)
• Liberalized economic policy adopted by Govt. of India
• Petroleum sector de-regulated and de-licensed Petroleum sector de-regulated and de-licensed
• Formation of Directorate General of Hydrocarbons in 1993
• Small size producing fields offered to Pvt. Operators / JVs Small size producing fields offered to Pvt. Operators / JVs
• Acreages, both offshore and onshore, offered through competitive bidding
• Poor response, 270 blocks offered but only 35 blocks could be Poor response, 270 blocks offered but only 35 blocks could be contracted to Pvt. Companies contracted to Pvt. Companies
Need for better Fiscal and Contractual termsNeed for better Fiscal and Contractual terms
HIGHLIGHTS – PSC Regime
• PSC Regime : PSC Regime : NELP NELP ((1997 till date)1997 till date)
• Govt. announced New Exploration Licensing Policy (NELP)Govt. announced New Exploration Licensing Policy (NELP) in in
19971997
• Administrative Price Mechanism (APM) abolished
• 100% FDI in E&P sector approved by Govt. 100% FDI in E&P sector approved by Govt.
• Hydrocarbon Vision 2025 revealed in March 2000
• Seven rounds of international bidding completed Seven rounds of international bidding completed
• 162 blocks awarded
• 45 blocks of NELP VII will be awarded soon45 blocks of NELP VII will be awarded soon
ACHIEVEMENTS – PSC ACHIEVEMENTS – PSC REGIMEREGIME
AREA awarded : 2.15 Million Sq Km (68%)
AREA AWARDEDAREA AWARDED
Nomination26%
NELP67%
Pre NELP7%
Total area : 3.15 Million Sq Km
ACCELERATED EXPLORATIONACCELERATED EXPLORATION
AREA UNDER LICENCE
LICENCE STATUSLICENCE STATUS
ONLAND0.99 Million Sq Km
46 %
14%
2.15 Million Sq Km (68%)
SHALLOW WATER0.3 Million Sq Km
DEEP WATER0.86 Million Sq Km
40 %
0.99 Million Sq Km (32%)
YET TO OFFER
DEEP WATER0.49 Million Sq Km
ONLAND0.4 Million Sq Km
SHALLOW WATER0.1 Million Sq Km
10%
40%50%
CHANGING SCENARIO
PEL : 203 ML : 163 PEL : 222 ML : 339
1996 2008
19902 Companies
3 Producing Basins
200012 Companies
7 Producing Basins
200749 Companies
10 Producing Basins
19471 Company
1 Producing Basin
MORE OPERATING COMPANIES
2D Seismic (LKM) 25,728 1,45,067 2,63,692
3D Seismic (SKM) 6,174 1,15,802 1,08,232
Exploratory Wells (No.) 229 178 459
Discoveries (Nos.) 32 66 -
In-place Reserves Accretion (O+OEG) Bbbl
1.18 9.34 -
2000-2008 1993-2008 2008 -2012
E&P DATA GROWTH
SPECULATIVE SEISMIC SURVEYS
AGENCY COUNTRY TYPE OF SURVEY STATUS
GX Technology USA2 D seismic over East /West Coast
Completed
GGS Spectrum UKReprocessing of old seismic data of West Coast
Completed
EMGS NorwayElectromagnetic survey over East Coast
Completed
PGS Singapore2 D seismic over Andaman offshore
In progress
Mc Phar Canada Airborne GM SurveyIn progress
SPURT OF DISCOVERIES (2000-2008)
AN
DA
MA
N
&
NI
CO
BAYOF
BENGAL
ARABIAN SEA
OilGas Km
0 400200
KANAKDURGA, PADMAVATI, ANNAPURNA,
DHIRUBHAI –1, 2, 3, 4, 5, 6, 7, 8,
16, 18, 19, 22, 23, 26
BHEEMA, NS
LAKSHMI
AMBE
GAURI
Delhi
Mumbai
Chennai
Kolkata
RajasthanBasin
CB-OS/2
RJ-ON-90/1
KG-DWN-98/3
KG-DWN-98/2
CHINNEWALA TIBBA
BANAMALI, LAIPLING GAON & MEKEYPORE
BAGHJAN, MATIMEKHANA,
CHABUA, N. CHANDMARI, N. TINALI, W. ZALONI, SAMDANG, MORAN-N, BAZALONI, BAREKURI
I N D I A
G-4-2-AB
DHIRUBHAI –9, 10, 11, 15, 20, 21
-9,
NMT-2
VASAI EAST & WEST
SONAMURA
CB-ONN-2000/1
CB-ONN-2000/2
PK-2, SANAND EAST(1)
CBX-1
SARASWATI,
RAGESHWARI, GR-F,
KAMESHWARI,
MANGALA, AISHWARIYA,
SHAKTI, BHAGYAM,
VIJAYA, VANDANA, NI-2, NC-WEST-1, GS-V-1, NE-1,
NP-2, MA-6, SGL-1
KD-1-1, GS-49, GS-KW & GS-15-E
KG-OSN-2001/2&3DHIRUBHAI –
24, 25, 28 & KG-8, KG-17
CB-ON/3
ESU-1
CB-ON/2TARAPUR-1
NEC-OSN-97/1&2
SWP-1
DWN-U-1, A-1, W-1
B-9, RV-1
OilGas Km
0 400200OilGas Km
0 400200
Km
0 400200
KANAKDURGA, PADMAVATI, ANNAPURNA,
DHIRUBHAI –1, 2, 3, 4, 5, 6, 7, 8,
16, 18, 19, 22, 23, 26
BHEEMA, NS
LAKSHMI
AMBE
GAURI
Delhi
Mumbai
Chennai
Kolkata
RajasthanBasin
CB-OS/2
RJ-ON-90/1
KG-DWN-98/3
KG-DWN-98/2
CHINNEWALA TIBBA
BANAMALI, LAIPLING GAON & MEKEYPORE
BAGHJAN, MATIMEKHANA,
CHABUA, N. CHANDMARI, N. TINALI, W. ZALONI, SAMDANG, MORAN-N, BAZALONI, BAREKURI
I N D I A
G-4-2-AB
DHIRUBHAI –9, 10, 11, 15, 20, 21
-
NMT-2
VASAI EAST & WEST
SONAMURA
CB-ONN-2000/1
CB-ONN-2000/2
PK-2, SANAND EAST(1)
CBX-1
SARASWATI,
RAGESHWARI, GR-F,
KAMESHWARI,
MANGALA, AISHWARIYA,
SHAKTI, BHAGYAM,
VIJAYA, VANDANA, NI-2, NC-WEST-1, GS-V-1, NE-1,
NP-2, MA-6, SGL-1
KD-1-1, GS-49, GS-KW & GS-15-E
KG-OSN-2001/2&3DHIRUBHAI –
24, 25, 28 & KG-8, KG-17
CB-ON/3
ESU-1
CB-ON/2TARAPUR-1
NEC-OSN-97/1&2
SWP-1
DWN-U-1, A-1, W-1
B-9, RV-1
As on 1/10/2008
Total Discoveries (PSC) - 101Pre NELP –32
NELP – 66Discovered Fields - 3
Total Discoveries (Nom) - 70
ENDUMURUTURPUTALLU
TREND OF DISCOVERIES (PSC)
24
774
4
14
12
16
78
8
17
31
40
75
8182
2
4
6
8
10
12
14
16
18
20
22
24
26
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 0
10
20
30
40
50
60
70
80
90
Discovery
Exploratory Wells
AS ON 01-04-2008
Dis
cove
ry
Exp
lora
tory
Wel
ls
17
EMERGING GAS POTENTIAL - EAST COAST EMERGING GAS POTENTIAL - EAST COAST
Basin Area (Sq.km) : 299,000
Resources (O+OEG) : 48 (Billion bbl)
Resources Gas : 153 TCF (Approx)
GIIP Reserves (TCF) : 16.38
Current Gas Production : 1.9 (MMSCMD)
Anticipated Production: 100 (MMSCMD)
Drilling Density : 0.15 wells/ 1000 Sq. Km
INCREMENTAL PRODUCTION
At the time of handing
over
Present/ Peak production
% Increment
Oil
(BOPD)9,125
92,762 10 times
Gas (MMSCMD)
0.00219.5
1000 times
In place Reserves (O+OEG) MMT
373.6 532.91.5 times
INVESTMENT BY JOINT VENTURESINVESTMENT BY JOINT VENTURES
As on March, 31st 2008 US$ Million
EXPLORATION DEVELOPMENT TOTAL
PRE-NELP EXPL. BLOCKS 1,253 920 2,173
PRE-NELP DISCOVERED FIELDS 284 3,724 4,008
TOTAL PRE-NELP 1,537 4,644 6,181
NEPL-I 2,257 3,413 5,670
NEPL-II 433 9 442
NEPL-III 768 0 768
NEPL-IV 684 0 684
NEPL-V 398 0 398
NEPL-VI 87 0 87
TOTAL NELP 4,628 3,422 8,050
GRAND TOTAL 6,165 8,066 14,231
GOI PROFIT PETROLEUM
WHAT NEXT ???WHAT NEXT ???
(i)(i) Learning from PSCs regimeLearning from PSCs regime
(ii)(ii) Futuristic exploration Futuristic exploration
What Next ???
1886 - 1946 1947 - 1990 1990 - 1996 1997 – till date Future ???
WHAT NEXT ???
(i)SWOT analysis of
PSC regime
(ii) Shift in Exploration
• Established Prospectivity of Indian basinsEstablished Prospectivity of Indian basins
• Creation of “Brand India” for E&P industryCreation of “Brand India” for E&P industry
• Induction of Knowledge & TechnologyInduction of Knowledge & Technology
• India – Growing marketIndia – Growing market
• Outstanding “Model PSC” conceptOutstanding “Model PSC” concept
• Exponential growth of “ E&P ” dataExponential growth of “ E&P ” data
• Vibrant and growing E&P industryVibrant and growing E&P industry
STRENGTHS
Resource crunchResource crunch
• Service sectorService sector
• Infrastructure – Lack of coordination between Policy Infrastructure – Lack of coordination between Policy maker – Academia - Industry maker – Academia - Industry
Technology Gap ( Local vis-à-vis Global) Technology Gap ( Local vis-à-vis Global)
Indifferent attitude of Policy makers / Industry–Indifferent attitude of Policy makers / Industry–Academia Academia
Mismanagement of “Geo-scientific” dataMismanagement of “Geo-scientific” data
WEAKNESSES
OPPORTUNITIES
To develop India as main hub To develop India as main hub
• Service sectorService sector
• Human resourcesHuman resources
• Huge gap in “ Resources prognostication and reserve Huge gap in “ Resources prognostication and reserve establishment”establishment”
India – An under explored destination India – An under explored destination
Conventional resourcesConventional resources
Unconventional resourcesUnconventional resources
Fastest growing market for oil & gas Fastest growing market for oil & gas
Scarcity of resourcesScarcity of resources
• HumanHuman
• ServicesServices
• InfrastructureInfrastructure
Government intervention – after discoveriesGovernment intervention – after discoveries
Increasing cost of explorationIncreasing cost of exploration
Non existence of R&DNon existence of R&D
Total lack of communication between Policy maker –Total lack of communication between Policy maker –Industry - AcademiaIndustry - Academia
THREATS
INDIA’S RESOURCES
Type Resources In place Reserves
Conventional Oil & Gas206
Biliion bbl
67 Billion bbl
(32%)
Unconventional
CBM 50 TCF 6 TCF (12%)
Gas Hydrate
66,900 TCF Nil
Oil Shale Under evaluation
Billion
barr
els
oil e
qu
ivale
nt
yr-
1
Natural Gas
Coal
Alternatives
Oil
Estimates of 21st centuryWorld energy suppliesBillion barrels oil equivalent
19001900 20002000 21002100
(ii)(ii) Futuristic Exploration
WHAT NEXT ???
a) Shift In ExplorationShift In Exploration
b) Paradigm shift from conventional
to unconventional fossil fuels
• Deep water Deeper water depth
• Integrated exploration strategy
• More seismic coverage / drilling density
• Old field revitalization
• Increasing recovery factor
SHIFT IN EXPLORATION
• Gas Hydrate
• CBM
• Oil Shale
• Gas Hydrate
• CBM
• Oil Shale
ALTERNATE RESOURCES
PARADIGM SHIFT
Source USGS (2005)Source USGS (2005)
Worldwide Gas Hydrate Distribution
World Oil Shale Resources
2.6 Trillion Barrels worldwide2.6 Trillion Barrels worldwide
1 Ton of rock= 1 Barrel of oil1 Ton of rock= 1 Barrel of oil
Current activity: Brazil, China, Estonia
Current activity: Brazil, China, Estonia
Other deposits in Australia, JordanOther deposits in Australia, Jordan
Source : USDOESource : USDOE
NGHP EXPEDITION
Scientific
Coring-Logging
Kerala-Konkan Basin:
One site
Krishna-Godawari Basin:
Fifteen Sites
Mahanadi Basin:
Four Sites
Andaman Islands:
One Site
-Total 113.5 Days
-Total 21 Sites
• No proven production technology
• Dedicated R&D centre on Gas
Hydrate development
ISSUES – Gas Hydrate
36
OIL SHALE
• Carbonaceous shale occur in Assam &
Arunachal Pradesh.
• The presence of coal and shale has been
recorded in wells drilled for hydrocarbons by
ONGC and OIL.
• These formations outcrop on the surface in a
region called the Belt of Schuppen.
OBJECTIVE - WHAT NEXT ??
What should be the strategies??
• Manage
– Resource gap
– Technology gap
– Knowledge gap
• Futuristic exploration policies
Tec – Knowledge gap
• All mineral exploration under one roof
• Highly focused approach between Policy
makers – Industry - Academia
• Creation of R&D hub for E&P section
• Creating “ Level playing field” for
National and International service industry
STRATEGIES
All mineral exploration under one roof
• National Mineral exploration policy
• All sub surface rights under one Ministry
• Ministry of Mineral Exploration
― Coal
― Petroleum
― Other Minerals
― Geological Survey of India
REDEFINING POLICIES
• Geo scientific institutions to marinate IT with
Geo Sciences
• Futuristic curriculum to be introduced in
universities and college level
• Establishment of National Data repository for
entire mineral industry
• Encouraging policies to share the data
amongst the various stake holders
KNOWLEDGE GAP MANAGEMENT
• Accelerated exploration programme through PSC
• No tinkling of PSCs signed and intervention after
discoveries
• Level playing field between international and
national player in service sector
• Maintaining the sanctity of fiscal stability in PSC
RESOURCE GAP MANAGEMENT
Basic roots are to be strengthen • Advanced curriculum
• Industry oriented research
• Better coordination between Academia – Industry –
Policy makers
• Redefining research institute policies
• Periodical review to meet
industry demand
• Continuous up gradation
RESTRUCTURING ACADAMIA
• Create India as hub for knowledge and
service sector
• Intensive research for unconventional fossil
fuel
• Creating synergy between Policy maker –
Academia and Industry
• Role clarity between technical regulator –
industry and government
WAY FORWARD TO LEVEL NEXTWAY FORWARD TO LEVEL NEXT
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