Dr. Manas Chakrabarti

Report
A GLIMPSE OF MARGINAL FIELDS &
THEIR STATUS OF DEVELOPMENT
Dr. M. K. Chakrabarti
Oil & Natural Gas Corporation Ltd.
MUMBAI, May 23, 2013
Presentation overview
1
Introduction
2
Status of Marginal fields
3
Status of In house Development
4
Status of Western Offshore fields
5
Conceptualized new Schemes
6
Status of Eastern Offshore Marginal fields
7
Status of Onshore fields
8
Development through Service Contract
9
Status of next phase of Outsourcing
10
Issues/ Concerns
3
#2 E&P Company in the world
INTRODUCTION
MARGINAL FIELD – Definition
Marginal Field, a field that may not produce enough net income to make
it worth developing at a given time; should technical or economic
conditions change, such a field may become commercial. i.e, Subeconomic at current cost
A field may be categorized as marginal under following considerations:
 Reservoir size (small volume)
 Lack of infrastructure / technology
 Inaccessibility to the area- remoteness
 Fiscal policy
 Market for gas
 Cost of development
4
Most valuable Indian PSU
Status of Marginal Fields
Status of Marginal Fields
Total Marginal Fields
 Western Offshore
 Eastern Offshore
 Onshore
Sl. No
: 165
: 58
: 21
: 86
Category
Number of
fields
%
In-place
Reserves
%
Ultimate
Reserves
1
Fields on production
62
40.09
45.15
2
FR approved/ Under implementation
23
19.51
24.96
3
FR under preparation
2
0.25
0.46
4
Under Service contracts
9
0.30
0.60
5
Under monetization/ Linked to projects
8
0.78
1.40
6
Identified for outsourcing
26
5.93
4.36
7
Under exploration / delineation
21
17.51
4.10
8
Hub Development
13
15.62
18.94
9
Surrendered
1
100.00
100.00
Total
165
6
Most valuable Indian PSU
Category wise distribution of In-place Volume (%)
Fields on production
FR approved/ Under
implementation
15.62
FR under preparation
40.09
Under Service contracts
17.51
Under monetization/ Linked to
projects
Identified for outsourcing
5.93
Under exploration/ delineation
0.78
0.30
0.25
19.51
Hub Development
7
#2 E&P Company in the world
Category wise Distribution of Ultimate Volume (%)
Fields on production
18.94
FR approved/ Under
implementation
4.10
45.15
4.36
FR under preparation
Under Service contracts
Under monetization/ Linked to
projects
0.46
0.60
1.40
24.96
Identified for outsourcing
Under exploration/ delineation
Hub Development
8
#2 E&P Company in the world
DEVELOPMENT STRATEGIES
In house development
Clustering
Utilization of nearby in house facility
Sharing infrastructure of JV
Converting old rigs to MOPU
CAPEX & OPEX Optimization
Hiring of FPSO
Batch drilling
Concurrent exploration
Development through Service Contract


9
Most valuable Indian PSU
Status of In-house
Development
Status of Offshore Marginal Fields
Western Offshore
Total fields
Scheme made
On production
: 58
: 37
: 15
84.01 % of in-place is
accounted for
monetisation
Eastern Offshore
Total fields
: 21
Scheme made : 2
On production : 3
10.84 % of in-place is
accounted for monetisation
11
Most valuable Indian PSU
Categorization of Offshore Marginal Fields
22 23
25
18
20
15
15
13 13
1313
10
5
0
12
11
7
3
4
1
0
0
ONGC a Wealth Creator
101
Western
Eastern
Total
Fields/Clusters Under Monetisation
Field/Cluster
No of
Fields
HC type
Peak
Oil+Cond
Peak gas
∑Oil+Cond
∑Gas
Life
(bopd)
(MMm3/d)
(MMt)
(BCM)
(Years)
Vasai East
1
Oil
11890
1.93
4.66
6.22
15
SB-11
1
Oil
3000
0,07
0.47
0.17
5
B-134
1
Oil + Gas
1600
0.25
0.31
0.24
8
C-Series Phase I
3
Gas
4516
3.19
1.89
10.40
15
G-1 & GS-15
2
Oil
9300
2.62
0.98
5.92
15
B-22 cluster
4
Oil + Gas
14900
4.52
3.59
6.50
10
North Tapti
1
Gas
-
1.98
-
4.12
10
D-1 Additional Dev.
1
Oil
27252
1.37
13.96
0.54
20
B-46 cluster
4
Gas
2887
1.63
1.30
5.27
13
Cluster 7
2
Oil + Gas
24024
1.61
9.73
4.52
16
WO cluster
4
Oil + Gas
18178
2.36
2.83
8.58
12
BHE
1
Oil
2500
0.10
0.45
B-193 Cluster
8
Oil + Gas
30000
1.52
6.32
5.12
15
B-127Cluster
3
Oil + Gas
11700
0.954
1.835
2.049
10
Prospect
Oil + Gas
1205
0.95
0.14
1.64
12
Gas
837
0.95
0.27
2.06
8
48.74
63.35
SB-14
C-Series Phase III
3
Total Fields
39
13
#2 E&P Company in the world
8
Strategy for Remaining Fields (Western Offshore)
Total fields: 20
Status
No. of fields
Fields
Development through
Service Contract
13
SD-4, SD-14, B-51, B-174,
D-12, D-31, D-18, D-33, CD,
CA, B-37, B-80, KD
Will be integrated with
adjacent cluster
3
B-45, SD-1, B-147
Under delineation
3
C-37, NMT, B-9
Small Volume/isolated
1
B-15
14
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Conceptualised new schemes
C-24 additional development
Dahanu Development
Development of GK-28 & 42 new discoveries
15
# 21 Energy Company in the World
Strategy for Eastern Offshore Fields Development
•
ERD wells are planned for monetization of some ultra shallow water MF
•
Being evaluated for cluster development of remaining MF and ND of
shallow Water
Projects under implementation
G-1 & GS-15: GS-15 put on production
G-1 wells are under completion
Projects under appraisal
Vasishtha & S-1 : Appraisal completed in Vasishtha
: Appraisal wells under drilling in S-1
16
KG-DWN-98/2
: 7 structures of DWN-98/2, along with GS-29-5
and G-4 are being planned for hub development.
Under Appraisal presently
MANIK
: GS-29-1 area & G-4-6
# 21 Energy Company in the World
Status of Onshore Fields
Basin-wise status of Onshore Fields
Total fields: 86
A&AA
Western
On land
KG
Cauvery
Total
Under Production
17
12
10
5
44
Under monetisation
3
-
2
3
8
Under Service Contract
-
3
6
-
9
Identified for outsourcing
-
7
6
-
13
Feasibility study in progress
1
1
-
-
2
Under delineation
7
-
2
1
10
Total
28
23
26
9
86
Category
18
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Status of Onshore Marginal Fields
Total fields : 86
Western Onland
Total fields
On production
: 23
: 12
94.03 % of in-place Is
accounted for monetization
Eastern Onland
Total fields
On production
: 63
: 32
90.38 % of in-place is
accounted for monetization
19
Most valuable Indian PSU
Category-wise distribution of In-place Volume (%)
1.03
Fields on production
6.08
1.94
1.64
5.02
FR under preparation
Under Service contracts
Under monetization/ Linked to
projects
Identified for outsourcing
84.29
Under exploration/ delineation
20
# 21 Energy Company in the World
Fields being developed In-house (9 nos)
Field
Strategy
Basin
Sonamura
A&AA
Gas supply @ 0.50 MMSCMD likely to start July 13 to
Monarchak Power Plant of NEEPCO
Gojalia
A&AA
Gas supply @ 0.35 MMSCMD. Creation of GCS and Pipe line.
Tichna
A&AA
Gas supply @ 0.48 MMSCMD by 2017-18
Neyveli
Cauveri
Under e tendering for gas marketing
Vadatheru
Cauveri
Low potential. Gas marketing
Attikadai
Cauveri
Gas allocation order placed. Gas supply will start soon
Turputallu
KG Onland
Gas marketing
Achanta
KG Onland
Gas marketing
Chinnewala Tibba
21
Rajasthan
FR under approval
ONGC a Wealth Creator
Fields Under Delineation (10 nos)
Field
Status
Area
BARSILLA
A&AA
Geological model reviewed.
BIHUBAR
A&AA
Geological model reviewed.
LAXMIJAN
A&AA
Geological model reviewed. Alternate well planned
CHARAIDEO
A&AA
Geological model reviewed. Alternate well planned
PEL Expired on 31.12.11.
HILARA
A&AA
Low volume.
TYNYPHE
A&AA
Nagaland area
TIPHUK
A&AA
Geological model reviewed. Alternate well planned
GOKARNAPURAM
KG
Under delineation to establish upside potential
NARSAPUR
KG
Delineation drilling
KARAIKAL
Cauveri
One alternate location is planned
22
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Development through
Service Contract
Background





An approach paper was put up at 84th Board meeting, in Nov 2001
2nd strategy meet at Sariska in February 2002 deliberated marginal
fields development
3rd strategic meet in July 2002 – following strategic options were
discussed
 In-house development
 Alliance with profit sharing with other E&P companies
 Through service contract
230th meeting held on 17th September 2002, EC decided that the
fields be offered to the private companies in phases
In the Project and Planning committee meeting held on 22nd
October 2002 at New Delhi, it was decided to first offer 19
onshore marginal fields
24
Status of Development through Service Contract
 3 rounds of bidding took place (Offshore 1, Onshore 2)
 Awarded 25 fields
14 are terminated
11 are under Service contract at present
Two fields are on production
Phase
Area
Fields
Offered
Fields
awarded
Year
Onshore
18
6
2004
I
Status
5 terminated
1 monetized
Onshore
2, Nomination
2
2006
2 terminated
I
Offshore
19
3
2006
3 terminated
II
Onshore
18
14
2007
4 terminated
9 under extended
assessment period
1 monetized
25
# 21 Energy Company in the World
Being Developed through Service Contract
Basin/
Asset
Western
Onshore
KG Onshore
26
No. of
Fields
Field Name
Issues
1
Hirapur,
M/s Prize Petroleum
 Current production : 15 m3 / day ( Anticipated potential :125
m3/day from additional development wells
 Ceiling on oil price : 26 USD/ barrel
 M/s PPCL requested for removing the price ceiling for
accelerating development for optimum production
3
Ghotaru,
Bankia,
Kharatar
M/s Deep Industries Ltd
 Assessment period extended up to 09.07.12
 Work over completed in 6 wells (GT#1,#2,#4,#7,#9 & kt-4)
 Potential : 25,000-30,000 m3/d
5
Magatapalli,
Mulkipalli,
Sirikattapalli
Medapadu,,
Chintalapalli,
M/s KEI-RSOS Petroleum Energy Ltd.
 Assessment period extended up tol 27.09.13
 Work Over Job completed in first three fields
 Potential : 80,000 m3/d
 Anticipated potential with additional wells : 2,00,000 m3/d
1
Bantumilli
M/s HRD (BGS,GTV)
 Assessment period extended up to 29.12.12
 Wells under drilling
1
Manepalli
M/s BG Shirke
 Assessment period extended up to 17.09.13
 Done 2D inplace of IPDS & to drill 2 wells
 Potential will be assessed based on drilling results
# 21 Energy Company in the World
Issues for Development through Service Contract
Cap on Crude Price ($ 18-35)
Gas Utilization & Marketing (Power Generation or CNG)
Gas Pricing
PML Grant
Essentiality Certificate
Extension of Assessment Period
27
# 21 Energy Company in the World
Status of Next Phase of
Outsourcing
Background





In the first QPR of ONGC held on 09.08.2007 with DGH for development
of Marginal fields, DGH was asked to suggest a mechanism to ONGC for
outsourcing of marginal fields through bidding process in a more lucrative
way.
In the 6th Business Strategy meet of ONGC held at Agra on 25-26 August
2007 the Ministry desired that marginal fields to be identified by both
ONGC and DGH and based on comprehensive analyses a suitable business
model could be developed for optimum usage.
DGH visited Mumbai from 5-7th September 2008 and data of 18 fields were
examined
DGH presented the brief strategy for development of Marginal Fields to
Additional Secretary, MoP&NG on 20th September 2007 wherein it was
decided that a draft Marginal Field Policy (MFP) covering all aspects of
Marginal Fields of NOCs be proposed.
During 3-5th October DGH team again visited Mumbai and data of another
81 fields were examined jointly.
29
# 21 Energy Company in the World
29
Background (Contd.)

DGH / ONGC made presentations on 18.10.2007 and 11.12.2007 in meetings chaired
by Additional Secretary, MoP&NG and it was desired that MFP may be evolved with the
following salient features

Production Sharing contract

Freedom to market/ utilize gas
International Crude Price
Gas Price at arm’s length
Royalty- To be borne by contractor or ONGC
Cess – Whether to be exempted
Exemption of Customs Duty- modalities and relative merit






On the basis of deliberations in the meeting held on 21st February, 2008 a draft
Marginal Field Policy was prepared by the committee

The MFP was deliberated in the meeting held on 08.05.2008, chaired by Additional
Secretary, MoP&NG. It was decided that:


Adopt single rate of production sharing

With effect from 01.05.2008 if production does not commence within 5 years for onshore
blocks and 7 years for offshore blocks, they would be considered for offer under MFP
No recovery of past cost incurred by NOCs.
30
# 21 Energy Company in the World
30
Background (Contd.)





In the meeting dated 22.01.2009 chaired by Joint Secretary, MoP&NG, a
committee was formed to prepare a model contract by 15.02.2009 after
which new policy would be put up for approval.
Draft Model Contract was prepared and submitted to MoP&NG
Initially 22 Marginal Fields were identified with the option of offering other
marginal fields as and when they are available. Subsequently it was decided to
develop two fields in-house, while another six fields are included making the
number 26 fields
In response to a letter of ONGCs, Ministry informed on 10th October 2010
that the proposal for development of marginal fields through service
contract with a more realistic cap on crude prices and also the proposal to
increase the cap on crude prices for existing contracts need to be examined
by the Board of ONGC in the context of the existing guidelines/framework
Board has approved outsourcing of marginal fields with improvements/
changes of the existing service contracts in the 224th meeting held on 4th
November 2011
31
# 21 Energy Company in the World
31
Next Phase of Outsourcing: 26 Fields
Basin/
Asset
KG Onshore
No. of
Fields
6
Field Name
Lankapalem, Palakollu, Bhimanapalli,
Mummidivaram, Kaza & Pendurru
Western Onshore
7
Elao, Bhakri-Tibba, Khambel,
West Bechraji, South Patan,
Kamboi & Sadewala
Western Offshore
13
KD, B-51, B-174, D-12, D-31, SD-4,
SD-14, CA, CD, B-80, B-37, D-18, D-33
Total
32
26
# 21 Energy Company in the World
PEL Status (12 fields)
Basin/
Asset
Area
(Km2)
2774
KG Basin
2158
Western
Offshore
Western
Onshore
33
13455
2.357
Name of
PEL
Date of
expiry
Marginal Fields
lying in PEL area
KG-1B
12.01.2013
BHIMANAPALLI
KG-1B
12.01.2013
PALAKOLLU
KG-1B
12.01.2013
LANKAPALEM
KG-1B
12.01.2013
MUMMIDIVARAM
KG-1A
27.12.2012
PENDURU
KG-1A
27.12.2012
KAZA
BOFF-123
13.11.2012
SD-4, SD-14, CA,
CD, B-174
Khambel
26.12.2007
Kamboi
ONGC a Wealth Creator
Remarks
Limited-period
PML granted
Limited-period
PML granted
Applied for ML
ML Status (14 fields)
Basin/ Asset
Name of PML
Area
km2
Mehsana
Ankleshwar
Western
Onshore
Marginal
Fields lying in
PML/PEL area
Bechraji Extn-I
3.06
28-3-2024
West Bechraji
Chandrora
1.39
15-2-2024
Khambel
South Patan
6.99
15-6-2017
South Patan
10.37
29.03.2010
Elao
Ghotaru Ext-1
564.6
09.01.2021
Sadewala
Bakriwala
1.00
09.01.2021
Bhakri Tibba
North of Heera
82
03.12.2025
B-37
D-33
133
08.06.2019
D-33
D-18
194
01.01.2025
D-18
901.1
31.03.2026
B-80
46
31.03.2026
KD
1447.3
31.03.2026
B-51
31.03.2026
D-12
31.03.2026
D-31
Elav
West Bassein
KD
Western
Offshore
Date of
expiry
S & E of Bassein
Mumbai High SW
1064.2
34
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Remarks
Applied for
extension
Issues for marginal fields development
 Fiscal Incentive for marginal field development
 PML Grant for remaining marginal fields
 Environment Clearance for Disangmukh and Tichna
Field of Assam and Tripura respectively
 Freedom to market gas of isolated fields
 Approval of DoC for KG deep-water discoveries
 Approval of DoC for Mahanadi deep-water discoveries
35
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Thank You

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