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Indian Oil and Gas Scenario

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Introduction to Indian Upstream Oil & Gas Sector Tejas Sharma, Market Advisor Innovation Norway, New Delhi September 2010
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Page 1: Indian Oil and Gas Scenario

Introduction to Indian Upstream Oil & Gas Sector

Tejas Sharma, Market AdvisorInnovation Norway, New DelhiSeptember 2010

Page 2: Indian Oil and Gas Scenario

Index

Part I - Overview of Indian Oil & Gas

Part II - Indian Hydrocarbon Resources

Part III - Sedimentary Basins of India

Part IV - Significant Discoveries & prominent basins

Part V - Drilling Rigs Scenario in India

Part VI - Well Information & Challenges

Part VII - Offshore Vessel Scenario in India

Part VIII - Opportunities – EPC Contracts

Part IX - Case Study Indo-Norway successful co-operation

Part X - INBDP’s

Part XI - CBM Scenario in India

Part XII - Conclusion

Page 3: Indian Oil and Gas Scenario

Part I:Overview of Indian Oil & Gas

Page 4: Indian Oil and Gas Scenario

The Indian Oil and Gas Industry- Prime mover of the Indian economy

• India is the fifth largest energy consumer in the world

• India is the sixth largest crude consumer in the world

• India is the ninth largest crude importer in the world

• Oil and Gas Industry size is estimated at about USD 110 billion.

• Contributes to about 64% of gross revenues of Government (both Central and State together) through taxes and duties

• Contributes to about 45% of India’s primary energy consumption

• Constitutes about 32% of India’s imports.

• Accounts for about 12% of India’s exports.

• India has the world’s sixth largest refining capacity - 2.56 million barrels per day, representing approx. 3% of world capacity

Source: Ministry of Commerce, MoP&NG,

Page 5: Indian Oil and Gas Scenario

Yawning Demand Supply Gap

Crude Oil (MMT)

107 135 172

368

32 35 34 610

100200

300400

2001-02 2006-07 2011-12 2024-25

Year

Oil Demand Production

Natural Gas (MMSCMD)

151231

313391

81 95158 170

0100200300400500

2001-02 2006-07 2011-12 2024-25

Year

Demand Supply

Source: DGH Presentation

Page 6: Indian Oil and Gas Scenario

Exploratory measures initiated by Government

New Exploration Licensing Policy

• 280 blocks awarded in Pre-NELP and New Exploration Licensing Policy (NELP) rounds

• 40+ discoveries with hydrocarbon in-place reserves of over 600 MMT in last five years

• Investment commitment of about USD 5 bn in exploration phases under NELP

• Perception of prospectivity of Indian sedimentary basins broadens with every NELP auction round

ExploratoryMeasures

Coal Bed Methane Policy

• 33 Blocks already awarded with production potential of about 35 MMSCMD under four auction rounds of Coal Bed Methane (CBM) policy

• Significant commercial finds in blocks held by RIL and ONGC

• Present commercial gas production of 0.15 MM SCMD

• 54 Bids received for 10 CBM blocks offered in the fourth round.7 blocks awarded.

• Fifth auction round on cards before end of calender year 2010

Source: DGH / Mo-PNG

Page 7: Indian Oil and Gas Scenario

Major Offshore E&P operators in India

Oil & Natural Gas Corporation (ONGC) Reliance Industries Ltd (RIL) Cairn Energy British Gas Gujarat State Petroleum Corporation (GSPC) Hindustan Oil Exploration Corporation (HOEC) Jubilant Energy limited BHP Billiton Oil India Limited (OIL) Hardy Exploration

Page 8: Indian Oil and Gas Scenario

Part II:Indian Hydrocarbon Resources

Page 9: Indian Oil and Gas Scenario

India Hydrocarbon Resource Base

Total Hydrocarbon resource base – 32 billion tons

Established Inplace hydrocarbon – 9,50 billion tons

Established Oil in place : 6,1 billion tons

Established gas in place: 3,4 billion tons

Established Ultimate recoverable reserves – 3,5 billion tons

Established Ultimate Oil reserves : 1,8 billion tons

Established Ultimate Gas reserves : 1,7 billion tons

Balance recoverable reserves – 1,8 billion tons

Balance Oil reserves : 0,7 billion tons

Balance Gas reserves : 1,1 billion tons

Page 10: Indian Oil and Gas Scenario

Hydrocarbon ResourcesTotal Offshore Hydrocarbon Resources~ 18815 MMT

Total Onland Hydrocarbon Resources~ 9270 MMT

Note* - The hydrocarbon resources

in Deepwater Off East Coast is

likely to increase further by about

4000 MMT as per the

interpretation results of surveys

carried out by Directorate General

of Hydrocarbons, the govt.

upstream regulator

Page 11: Indian Oil and Gas Scenario

Basin wise Hydrocarbon Resources

760210550Kutch

380380-Rajasthan

700430270Cauvery

1130575555Krishna-

Godavari

18601860-Upper Assam

20502050-Cambay

31803180-Assam Arakan

9190-9190Mumbai Offshore

Total (MMT )OnlandOffshoreBasin

Page 12: Indian Oil and Gas Scenario

Basin wise Hydrocarbon Resources

7000-7000Deepwater*

14545100Mahanadi

150150-Himalayan Foreland

19016030Bengal

230230-Ganga Valley

280-280Saurashtra

660-660Kerala-Konkan

180-180Andaman-Nicobar

Total (MMT )OnlandOffshoreBasin

Page 13: Indian Oil and Gas Scenario

Part III:Indian Sedimentary Basins

Page 14: Indian Oil and Gas Scenario

Sedimentary Basins

Page 15: Indian Oil and Gas Scenario

Indian Sedimentary basins - Facts

• 26 Sedimentary Basins identified

• 7 basins have commercial production

• Total Sedimentary Area - 3.14 MM square KM including deepwater

areas (~4% of world sedimentary area)

• Approx. 22% area explored excluding deepwater area

• Sedimentary area distribution:

• Onshore (1.39 MM Sq KM)

• Shallow water up to 200 mts water depth (0.40 MM Sq KM)

• Deepwater (1.35 MM Sq KM)

• Almost 1/3 of the sedimentary area remains unexplored/poorly

explored.

• NELP launch have been significant in exploring hydrocarbon potential of

the sedimentary basins in India

Page 16: Indian Oil and Gas Scenario

Categorisation Of Sedimentary Basins (up to 200 Meters Isobath)Category I – Basins with established Commercial Production

60000-60000Assam Arakan

126000-126000Rajasthan

550003000025000Cauvery

520002400028000KG

116000116000-Mumbai Off

56000-56000Assam Shelf

53500250051000Cambay

Total (Sq Km)OffshoreOnlandBasin

Page 17: Indian Oil and Gas Scenario

Categorisation of Sedimentary Basins

Category II – Known accumalation of Hydrocarbons but no

commercial production as yet

47000410006000Andaman

Nicobar

690001400055000Mahanadi -NEC

480001300035000Kutch

Total (Sq Km)OffshoreOnlandBasin

Page 18: Indian Oil and Gas Scenario

Categorisation of Sedimentary Basins

Category III – Indicated Hydrocarbon – considered geologically

prospective

890003200057000Bengal

9400094000-Kerala Konkan

52000-52000Saurashtra

162000-162000Vindhyan

186000-186000Ganga

30000-30000Himalayan Foreland

Total (Sq Km)OffshoreOnlandBasin

Page 19: Indian Oil and Gas Scenario

Categorisation of Sedimentary BasinsCategory IV – Uncertain potential which may be prospective by analogy

with similar basins in the world

32000-32000Chattisgarh

5000-5000Bastar

15000-15000Pranhita-Godavari

39000-39000Cuddapah

8500-8500Bhima Kaladgi

273000-273000Decan Syneclise

17000-17000Narmada

46000-46000Satpura

22000-22000Spiti-Zanskar

3700-3700Karewa

Total (Sq Km)OffshoreOnlandBasin

Page 20: Indian Oil and Gas Scenario

Part IV:Significant Discoveries and prominent basins

Page 21: Indian Oil and Gas Scenario

Significant discoveries from 2000-2009

Page 22: Indian Oil and Gas Scenario

Offshore Field Location & Water Depths

1000m

4000m

2000m

3000m100m

500m

4000m

Eastern Offshore •Small continental shelf•Steep slopes•Two monsoons, Operating window Jan - May•Cyclone & Tsunami affected

KG Basin3000m

2000m

1000m100mWestern

Offshore •Shallow – Large Continental Shelf

•Monsoon – July to October

Page 23: Indian Oil and Gas Scenario

Offshore Basins – West Coast

Kutch - Saurashtra Basin

Mumbai Offshore Basin

Kerala - KonkanBasin

Prominent sedimentary basins on western coast of India are:

Kutch - Saurashtra BasinCategory II basin

Mumbai Offshore BasinCategory I basin

Kerala - Konkan BasinCategory III basin

Mumbai offshore has been the in production for more than 30 years

Deep water prospectivity on West coast is under study

Page 24: Indian Oil and Gas Scenario

Offshore Basins – East Coast

Prominent sedimentary basins on eastern coast of India are:

Mahanadi - NEC BasinCategory II basin

Krishna Godavari BasinCategory I basin

Cauvery BasinCategory I basin

Krishna Godavari is believed to be the GoM for India with gas reserves of ~ 25 tcf

Some Deepwater blocks have started producing since last year

Page 25: Indian Oil and Gas Scenario

Part V:Drilling Rig Scenario in India

Page 26: Indian Oil and Gas Scenario

Offshore rigs operating in Indian watersSr No. Operator Rig Type Number

Cantilever Jack Up 17Cantilever HPHT Jack UP 2Slot Jack Up 1Mat Supported Jack Up 2Mat Supported HPHT Jack Up 1Semi-submersibles 2Drillships 4Drilling Barge 1

30Drillships 6Semi-Submersibles 1

73 British Gas Cantilever Jack Up 1

14 Gujarat State Pet.Corp Semi-Submersibles 1

139

1 Oil & Natural Gas Corporation

2 Reliance Industries Ltd

Subtotal

Subtotal

Subtotal

Subtotal Total

Page 27: Indian Oil and Gas Scenario

Upcoming requirement of Offshore Drilling rigs in India

Sr No. Operator Rig Nos. Rig Type Duration Timeline

6 Nos. Cantilever Jack Up - substitute rigs against de-hiring 3 years Q3 20113 Nos. Cantilever Jack UP 3 years Q2 20112 Nos. Floater 3 years Q2 20111 No. HPHT Mat Type 3 years Q3 2011

2 Cairn Energy 1 No. Cantilever Jack Up 2 years Q4 2012/Q1 2013

3 OIL India 1 No. Cantilever Jack Up 1 year Q1 2013

1 BHP Billiton 1 No Floater 2 years Q1 2015

2 Oil & Natural Gas Corp. Ltd 1 No. Floater 3 years Q4 2011/ Q1 2012

Shallow Water Drilling

Deepwater Drilling

Oil & Natural Gas Corporation Limited

1

Page 28: Indian Oil and Gas Scenario

Part VI:Well Information & Challenges

Page 29: Indian Oil and Gas Scenario

Well Statistics:

252258201242223Meterage

Drilled

( x 1000 mts)

8188667469Number of

Wells

2008-092007-082006-072005-062004-05Financial Year

The above stats are for the following offshore basinal areas

Mumbai OffshoreKrishna GodavariMahanadi

Page 30: Indian Oil and Gas Scenario

Challenges faced by operators in India

Hole Plugging• With ageing fields and depleting reservoirs on the western

coast horizontal/multilateral well drillings is common in practice to maximize production

• Remedial engineering incase of thin layer reservoirs is difficult

• Plugging of holes is a problem incase any of the branches start producing water.

Page 31: Indian Oil and Gas Scenario

Drilling Fluid Loss• Operators in India need assistance of experts in the field

of reservoir characterization• To predict pressure sink areas which accounts for great

amount of drilling fluid loss is difficult• Tools and softwares for encountering low pressures zones

are in demand

Challenges faced by operators in India

Page 32: Indian Oil and Gas Scenario

Slot Utilization• Lack of technology for drilling multiple wells from a single slot

reduces drilling efficiency

Casing Wear• The wells in Mumbai High field on the western coast are approx.

40 years old and so are the casing pipes

• Frequent requirement of patching the casing pipes in the areas

of thining or rupture

Challenges faced by operators in India

Page 33: Indian Oil and Gas Scenario

Part VII:Offshore Vessel Scenario in India

Page 34: Indian Oil and Gas Scenario

Supply Scenario Indian Flagged Vesssels• 195 Indian flag vessels are dedicated for

offshore sector• 158 Offshore Vessels• 37 Specialized Offshore Vessels

• Indian Fleet dominated by AHTS• Gradual acquisition and hiring of PSV, which

started in early 2000• Trend likely to continue

• Indian flagged PSV have young fleet• Fleet acquisition dominated in AHTS, PSV and

MSV segment• AHT has a small and old fleet, and has not been

ordered by Indian companies in last decade• These ships are hired on spot charter for short duration – gap mainly filled by boats from Singapore

• Ships in Crewboat, Utility boat are owned by smaller companies, mostly older fleet

Fleet breakup - Indian FlagAHT6%

AHTS54%PSV

10%

OSV9%

CrewBoat5%

Utility5%

Others11%

Fleet breakup - Indian FlagAHT6%

AHTS54%PSV

10%

OSV9%

CrewBoat5%

Utility5%

Others11%

Note: AHTS – Anchor Handling Tug and SupplyPSV – Platform Supply VesselMSV – Multi Service Vehicle

Source: Mantrana Maritime Advisory

Page 35: Indian Oil and Gas Scenario

Supply Scenario- Foreign Flagged Vessels449 Foreign Flagged Offshore Vessels Licensed in 2008-09

AHT, 44

AHTSV, 18

MSV, 6

OSV, 68

Survey, 34

Other, 45

Offshore Vessels by Number

Source: Compiled by Mantrana215 Vessels 449 Vessels

• Offshore vessels dominate list of foreign flagged ships in Indian coastal waters• Anchor Handlers & OSV dominate the offshore ships deployed in India• Young fleet is chartered for deployment in environmentally harsh conditions• Older fleet have less charter rates, they are preferred in the fair weather season• The period of charter ranged from 1 week to several months

Page 36: Indian Oil and Gas Scenario

36

Offshore Vessels – Delivery Schedule

Garware Offshore 1 MSV ordered at Havyard

Greatship (India) limited has committed a Capital investment of US$ 365 M for ongoing fleet expansion

• New company with young fleet, subsidiary of India’s largest shipping company in private

sector

Tag Offshore is developing its fleet focusing opportunities in India

ONGC ships are managed by Shipping Corporation, would be deployed in India for ONGC project

Shipping Corporation would deploy all its ships in India, may be on ONGC projects

Calendar Years 2010 2011 2012 Total

Garware Offshore MSV 2 2Great Offshore MSV 1 1GreatShip (India) AHTS 2 2

MSV 3 1 4PSV 2 1 3

ONGC AHTS 4 8 12Samson Maritime PSV 1 2 3TAG Offshore AHTS 1 1Shipping Corporation AHTS 1 4 1 6Total 11 14 9 34

Delivery Schedule of Offshore Vessels as on March, 2010

Page 37: Indian Oil and Gas Scenario

37

DP Systems installed on Indian Ships (Major Owners)

• Out of 28 offshore vessels (supply) owned by Great Offshore about 8 have DP

• All the ships belonging to Great Ship has DP 2 (except 1)

• All 7 offshore vessels owned by Tag offshore has DP

• Shipping Corporation owned

Owned DP installed

Under Construction

DP on under construction Vessel

Remarks

Great Offshore 28 8 1 1 Confirmed

Greatship 10 10 7 7 Confirmed

Shipping Corporation 10 10 6 6 Confirmed

ONGC 31 12 Not Available

Tag Offshore 7 7 Confirmed

Varun Shipping 4 4 Estimates

Samson Maritime 10 4 3 3 Estimates

Garware Offshore 11 4 2 2 Estimates

Total 111 47 29 17

• Great Offshore has DP-1 installed on their ships

• All the ships of Greatship (except 1) have DP-2 installed on their ship

• Shipping Corporation did not have DP onboard their ships, However company has got it retrofitted

• ONGC has placed orders for 12 offshore vessels to Pipavav shipyard at close to US$ 120 mn, at this

price it would not be possible to supply offshore vessels with DP systems.

• All Ships of Tag Offshore has DP 1 installed on them

Note: DP System – Dynamic Positioning System

Source: Mantrana Maritime Advisory

Page 38: Indian Oil and Gas Scenario

Part VIII:Opportunities - EPC Contracts

Page 39: Indian Oil and Gas Scenario

Offshore Facilities

Western Offshore:Process Platforms : 36Well Platforms : 161 Clamp On : 76 Submarine Pipeline (Kms) : 5000+

Eastern Offshore:Well Platforms : 4 Submarine Pipeline (Kms) : 50+

Page 40: Indian Oil and Gas Scenario

Opportunities for Norwegian companies in India

The Indian Oil & Gas sector looks upon Norwegian companies as their preferred technology partner in the fields of,

• Exploration in Western & Eastern Offshore

• New & Marginal Fields

• Deep waters in India

• Early exploration & development of NELP (New Exploration Licensing

Policy) Blocks

• Mature fields reservoir complexities

• Drilling Challenges in mature fields

• Completion problems

• Process/Production Challenges

• Offshore Logistics Challenges

Page 41: Indian Oil and Gas Scenario

Areas of Cooperation for Norwegian companies

Domain Activities Remarks

Drilling &

Completion

Well Design/ Drilling/

Completion at Western

Offshore

Well Bore stability in highly

heterogeneous carbonate reservoirs at

plateau stage

Deepwater Training/ Skill development

in Deepwater/ Subsea

Best Practices

Field

Development

EOR/ IOR Activities Consultants for EOR/ IOR activities for

both Offshore & Onshore fields

Process Floating LNG Knowledge & Technology

Reservoir Mgmt. Fracture Delineation Highly heterogeneous multi layer

reservoir with various pressure zones &

unstable shale

Page 42: Indian Oil and Gas Scenario

Areas of Cooperation for Norwegian companies

Domain Activities Remarks

Marine Survey Geo-Hazards at Offshore For deepwater east coast

Logistics Construction of MSVs/ ISVs Competence enhancement in

Mari-time & Offshore

operations

Hiring/ acquisition of SAR

Helicopters

Environment Platform de-commissioning /

Debris removal at Offshore

Talk with M/s Proserv carried

out. To be expedited

Security Offshore Security Technology & Mechanism

Renewable/

Alternates

Wind Mills at Offshore for power To reduce carbon foot print

Gas Hydrates Huge potential in India

Page 43: Indian Oil and Gas Scenario

Offshore projects under tendering

Revamp of existing

facility

Marginal Field

Development

Marginal Field

Development

Marginal Field

Development

Purpose

Q2 2011

Q2 2011

Q2 2011

Q1 2011

Estimated Timeline

of tender award

WIN Revamp

Project

4

B-46 Series

Pipelines

3

B-46 Series Well

Platform

2

B-193 Pipeline

Project

1

Name of ProjectSr.No

Total Investment envisaged with projects under tendering – US$ 780 MMTotal Investment envisaged with projects under tendering – US$ 780 MM

Page 44: Indian Oil and Gas Scenario

Upcoming Offshore projects

Hydrocarbon

exploitation

For O&G

processing

facility of

marginal fields

Hydrocarbon

exploitation

Purpose

Q2 2012

Q3 2011

Q4 2011

Estimated

Timeline

Well platforms

Conversion of

Jack Up rig to

mobile product

unit

Well Platform

Facilities /

Scope of Work

Cluster-7

Development

3

Conversion of

Sagar Samrat

from MODU to

MOPU

2

WO-161

Name of

Project

Sr. No

Total Investment envisaged with upcoming projects – US$ 1866 MMTotal Investment envisaged with upcoming projects – US$ 1866 MM

Page 45: Indian Oil and Gas Scenario

Upcoming Offshore projects

Hydrocarbon

exploitation

on east coast

Hydrocarbon

exploitation

on east coast

Purpose

Q4

2011/Q1

2012

Q4

2011/Q1

2012

Timeline

Subsea manifold

installation, laying

of umbilical,hook-

up testing and pre-

commissioning

Installation of

risers,hook-

ups,pipelines

testing,modification

at GS-15-4

Facilities / Scope of

Work

DW works of G-

1/GS-15 field

development

5

SW work of G-

1/GS-15 field

development

4

Name of ProjectSr.No

Page 46: Indian Oil and Gas Scenario

Upcoming Offshore Revamp projects

Revamp of

existing

platforms

Revamp of

existing

platforms

Revamp of

existing

platforms

Purpose

Q3 2011

Q4 2011

Q3 2011/ Q4

2011

Estimated

Timeline

Revamp of 13

well platform in

Mumbai Offshore

Revamp of 13 well

platforms in Neelam

field

7

Revamp of

Platform

Water Injection

South Revamp

Project

8

Revamp of well

platforms in

Mumbai offshore

Facilities / Scope

of Work

Revamp of 39 well

platforms in Mumbai

High and Heera field

6

Name of ProjectSr.No

Page 47: Indian Oil and Gas Scenario

Upcoming Offshore Deepwater Project

FEED awarded to

Pegasus-L&T in

July 2010

Q4 2011S1 Vashistha

field

development

Tender is on for

consultant hiring

until Sept

26,2010

Q3 2012 Hiring FPSO for

Cluster 7

marginal field on

west coast

DPS,UK has been

hired as

consultant

Q2 2012Hiring FPSO for

D1 marginal filed

on west coast

Oil & Natural Gas

Corporation

RemarkEstimated

Timeline

Project DetailOperator

Page 48: Indian Oil and Gas Scenario

Upcoming Offshore Deepwater projects

Re-tenderingQ3 2011Process Platform

for Deendayal

development

Gujarat State

Petroleum

Corporation

Mustang-Bechtel

awarded the FEED

in August 2010

Q4 2011KG-D6 Phase II

development

Reliance

Industries Limited

RemarkEstimated

Timeline

Project DetailOperator

Total Investment envisaged with upcoming deepwater projects – US$ 2 billion ++ Total Investment envisaged with upcoming deepwater projects – US$ 2 billion ++

Page 49: Indian Oil and Gas Scenario

Part IX:Case Study – Indo Norway Successful Co-operation

Page 50: Indian Oil and Gas Scenario

Successful cooperation India-Norway

Project: Development of Dhirubhai-6 offshore deepwater field in the

Krishna- Godavari basin on the Eastern coast of India

Field Operator: Reliance Industries Limited, India

Subsea Contractor: Aker Solutions, Norway

Project Highlites:

• An upstream project with record discovery to development time of 7

years as against the world average of 9 - 10 years.

• First of its kind deepwater development project in India.

• The output from D6 field has doubled the national gas production levels

from 80mmscmd to 160mmscmd, drastically changing the natural gas

market in India.

Page 51: Indian Oil and Gas Scenario

Successful cooperation India-Norway

• The KG-D6 project is one of the world’s largest subsea engineering contract

valued at USD 400M

• The D6 field’s oil and gas producing ship Dhirubhai-1 is India’s first FPSO.

• Dhirubhai-1 has been constructed by Aker Floating Production and is one of

the most advanced FPSO’s operating in any of the world’s oil and gas fields

today

• Aker Borgestad Operations has been awarded the operation and maintenance

contract for Dhirubhai-1 FPSO for 10 years

• According to Aker Solutions, a so complex deepwater project has never

before been delivered quicker from a supplier standpoint.

Page 52: Indian Oil and Gas Scenario

Cooperation between IN New Delhi and INTSOK

• INTSOK has entered into an agreement with IN New Delhi to hire

regional assistance for its partner companies in India free of cost for

five days annually

• The scope of the agreement in addition to the local assistance to

INTSOK partner companies includes updates on the upcoming

opportunities as regards projects and tenders in the Indian market

• INTSOK and IN New Delhi are in process of hosting a Business

delegation to India in end October 2010 to facilitate a platform

wherein Norwegian companies can promote their niche technologies

to the Indian clients thereby establishing business relations

• The Business delegation will include the O&G sector

Page 53: Indian Oil and Gas Scenario

Part X:INBDP

Page 54: Indian Oil and Gas Scenario

Info on INBDP’s:

2 Nos. INBDP projects under process.The reporst shall be submitted by

end December 2010.

1. EOR activities in Indian upstream sector: (Report by Dec 2010)

2. Pipeline Projects: (Report by Dec 2010)

1 No. INBDP project proposed for next year.The report shall be

submitted by end Deember 2011

1. Overview of LNG market in India

Page 55: Indian Oil and Gas Scenario

Part XI:Coal Bed Methane Scenario in India

Page 56: Indian Oil and Gas Scenario

Coal Bed Methane Scenario in India

India’s proven coal resources - 495 billion tons

Prognosticated CBM resources - 50 trillion cubic feet

Established resources – 8.4 trillion cubic feet

33 Blocks awarded in 4 auction rounds

26.000 Sq Kms - Total Sedimentary area for CBM exploration

17.327 Sq Kms of area awarded

300 CBM Wells drilled so far (Core Hole/Test Well/Pilot Well)

3 Producing blocks namely Raniganj (S), WB & Sohagpur (E) ,

Sohagpur (W) in MP

Present gas production from above 3 blocks is 0,15 MMSCMD

Expected gas production by 2013 is 7,5 MMSCMD

Approved gas sale price is 6,79 $/MMBTU

Page 57: Indian Oil and Gas Scenario

Major Operators in CBM space

Oil & Natural Gas Corporation Limited Great Eastern Energy Corporation Limited Arrow Energy Reliance Industries Limited Essar Oil Limited Tata Power Company Limited Gas Authority of India Limited Indian Oil Corporation Gujarat State Petroleum Corporation limited Reliance Natural Resources Limited

Page 58: Indian Oil and Gas Scenario

Investments expected in CBM space

Essar Oil, Arrow Energy and Great Eastern have committed investments worth US$ 158 MM for development of 7 CBM blocks awarded in latest auction round from MoPNG – (August 2010)

Essar Oil has declared investment of US$ 800MM to develop its 3 CBM blocks awarded in first 3 CBM rounds having recoverable gas reserves of 7 tcf. - (June 2010)

Great Eastern Energy to invest US$ 500MM for development of its CBM assets in Eastern India during next 3 yrs – (September 2009)

Page 59: Indian Oil and Gas Scenario

Part XII:Conclusion

Page 60: Indian Oil and Gas Scenario

To Conclude..• Immense possibilities are available for the Norwegian oil and gas companies in the Indian oil

and gas sector

• Field Development - 23 Exploratory wells in 2011 by ONGC

11 Developmental wells in 2011 by GSPC

• Rig Hire – 16 Nos. (14 Shallow & 2 Nos Deepwater )

• Rig Purchase – 3 to 4 Offshore rigs ( Capex US$ 850 MM)

• US$ 780 MM worth projects under tendering

• US$ 1866 MM worth shallow water projects in near future

• US$ 2 billion ++ worth deepwater projects in coming 3-4 years

• With deepwater development projects taking place especially on the Eastern coast of India,

Norwegian companies, being the technology master, can play a key role. Remember Aker

Solutions.

• Bureaucracy, Corruption, Voluminous documentation requirements, etc. may pose as obstacles

to Norwegian companies desiring to make their mark in India

• Innovation Norway, New Delhi is just a mail/call away for answer to your queries to prosper in

this growing oil and gas market.

Page 61: Indian Oil and Gas Scenario

Thank you for your attention

Name: Tejas Sharma, Market Adviser

Address: Innovation Norway; New Delhi

Royal Norwegian Embassy

50-C Shantipath, Chanakyapuri,

New Delhi – 110021

Contacts: +91-11-41779254

E-mail: [email protected]

Web: www.innovasjonnorge.no


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