ORIENTATION ON INDIA OIL & GAS

INDUSTRY

by A.S.Popli
Directorate General of Hydrocarbons
New Delhi
1

PRESENTATION OUTLINE
Energy Scenario

Resource Base
Exploration Status Market & Infrastructure Opportunities
2

WORLD ENERGY CONSUMPTION (PER CAPITA)

ENERGY CONSUMPTION

ENERGY @ GDP

ENERGY CONSUMPTION
As on 01.04.06
Nuclear 1% NG 8% Hydel 8%

Oil 33%

Coal 54%

SHARE OF ENERGY CONSUMPTION - INDIA

6

VAST RESOURCE BASE

Sedimentary Area Km.

3.14 Million Sq.

(~4% of the worlds sedimentary area)

Sedimentary Basins
15 )

26 ( Exploration initiated in

Prognosticated Resources
(O+OEG)

205 Billion Barrel

(For 15 Basins only; needs up-gradation)

Established reserves

61 Billion Barrel

ACREAGE PORTFOLIO
Onland 1.39 M.Km2

44%

Deep Water 1.35 M.Km2

43% 13%
Shallow Offshore 0.40 M.Km2

Total Sedimentary Area 3.14 Million Sq. Km.

FRONTIER BASINAL AREA

Total sedimentary Area 3,140,000 sq km

Frontier Basins 1,879,500 sq km (60%)

Non Frontier Basins 1,260,500 sq km

On land & Shallow water 529,500 sq km

Deep Water 1,350,000 sq km (72%)

EXPLORATION STATUS
20% of the total 3.14 million sq. km.
has been extensively explored 22% of total prognosticated gas resources established Reserves estimated in only 15 out of 26 basins Very low drilling density
Poorly Explored Initiated

44% 21%

20% 15%

Well Explored

Unexplored

10

EXPLORATION STATUS PSC REGIME

Pre-NELP
(1993 2006)13 Yrs.

NELP- I, II & III, IV,V (2000-06)-6 Yrs.

2D Seismic Survey (LKM) 3D Seismic Survey (SKM) Exploratory Wells (No.)

PSC Blocks

24,091 5,304 167

28 25 781.65

1,09,305 67,773 93
138 40 1451.18

No. of Discoveries (Up to 15-04-2007)

Investment made on Exploration (US$ MM)

11

EXPLORATION STATUS
25 21 20 15 10 5 0 1990 2000 2005
No of E&P Operators Prolific producing Basins

12 7 3 2

10 *

12 * Likely to start commercial production in near futur

HYDROCARBON STATUS
CRUDE OIL PRODUCTION IN MMT
32.4
4.08 3.29

32.0
4.14 3.18

33.1
4.09 2.95

33.4
4.31 3.00

33.6
4.30 3.20

32.2
4.55 3.24

25.07

24.71

26.01

26.06

26.08

24.40

2000-01

2001-02

2002-03
OIL

2003-04
Pvt/JV

2004-05

2005-06
13

ONGC

HYDROCARBON STATUS
NATURAL GAS PRODUCTION IN BCM
29.5
3.60 1.86

29.7 1
4.05 1.62

31.2
5.41 1.74

32.6
6.49 1.89

32.4
6.78 2.01

32.6

7.36 2.27

24.02

24.04

24.04

24.24

23.58

22.97

2000-01

2001-02

2002-03 ONGC

2003-04 OIL

2004-05

2005-06
14

Pvt/JV

OIL PRODUCTION
25
20.14 21.57 22.4 20.76

21.92

20

M M T

MMt

15 10 5 0

11.89

11.47

11.45

11.58

11.43

2001-02

2002-03

2003-04

2004-05

2005-06

Onshore

Offshore
15

GAS PRODUCTION
25

21.86

22.67

22.98

22.8

22.74

M M S C M

20

15

10

7.86

8.72

8.98

8.96

9.46

0 2001-02 2002-03 2003-04 2004-05 Onshore 2005-06 Offshore

16

EXPANDING GAP..
CRUDE OIL (MMT)
400

NATURAL GAS (MMSCMD)

400

Demand
300

376.5

Production

Demand Supply
300 231

391 313

200
140
99.7 114.3

199.6

200

151 158.05 170

100
61.4 33.05 33.98 33.47

100 81.4 94.84

32.03

0
2024-25

2001-02

2002-03

2005-06

2011-12

2001-02

2006-07

2011-12

2024-25

Year

Year

17

TAPPING THE POTENTIAL

Development of new Discoveries Harnessing CBM Resources Gas Hydrate and Oil Shale

18

SIGNIFICANT DISCOVERIES (2000-2007)

CHI NNEWALA TIBBA
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

As on March, 2007 Total Discoveries (PSC) - 65 Pre NELP 26 NELP 39 Total Discoveries (Nom) - 44
Delhi
BAGHJ AN, MATIMEKHANA, CHABUA, N. CHANDMARI, N. TINALI, W. ZALONI, SAMDANG, MORAN -N, BAZALONI, BAREKURI

ESU-1 PK-2, SANAND EAST(1)

TARAPUR-1

Rajasthan Basin
RJ-ON-90/1
CB-ON/3 CB-ONN-2000/1 CB-ON/2 CB-OS/2

BANAMALI, LAIPLING GAON & MEKEYPORE

SONAMURA

BHEEMA, NS NMT-2
A R VASAI EAST & WEST A B SWP-1 I A N B-9, RV-1

I N D I A

Kolkata
NEC-OSN-97/1&2

DHI RUBHAI 9, 10, 11, 15, 20, 21

-9, ENDUMURU TURPUTALLU

CB-ONN-2000/2

Mumbai
BAY KG-OSN-2001/2&3 OF BENGAL
A

G-4-2-AB DHI RUBHAI 24, 25, 28 & KG-8, KG -8, KG-17 DHI RUBHAI 1, 2, 3, 4, 5, 6, 7, 8, 16, 18, 19, 22, 23, 26 KANAKDURGA, PADMAVATI, ANNAPURNA,
&

KG-DWN-98/3

LAKSHMI AMBE GAURI CBX-1

S E A

Chennai

KG-DWN-98/2
A

N
D

KD-1-1, GS-49, GS-KW & GS-15-E

Oil Gas

200 K Km m

400

DWN-U-1, A-1, W-1

N I C O B

19

FROM DISCOVERY TO DEVELOPMENT

Total Discoveries Discoveries Appraised Commerciality Established Commerciality Under Evaluation Development Plan Approved : 65 : 16 : 12 : 11 :8

Development plan under Evaluation

In-Place Reserves (O+OEG)
(Commercial Discoveries)

:4
: 658 MMT
20

HC POTENTIAL IN EAST COAST

Basin Area (Sq.km)

: 299,000

Prognosticated Resources (Billion bbl) : 11.5 (O+OEG) Prognosticated Resources Gas TCF) : (Approx) Wells Drilled (Nos.) Deep Water Shallow Water : 243 : 56 : 187

25

Proved GIIP Reserves (TCF)

Present Gas Production
(MMSCMD)

: 16.38
: 1.9 : 44 - 84
21

Anticipated Future Production

(MMSCMD)

CBM RESOURCES BASE

Gondwana Coalfield
20

Tertiary Coal / Lignite Fields

Delhi
19 18
5

14 6
7

17 10 11

2 3

13

Kolkata
9

Mumbai
12

COAL BEARING AREA

Chennai

: 35400 sq.km. 44
(IN 12 STATES)

COAL & LIGNITE FIELDS :

16

CBM RESOURCE BASE : 162 TCF (4.6 TCM)

22

CBM : EXPLORATION ACTIVITIES

Blocks Awarded

: 26

Area Opened-up for CBM Exploration : 13600 SQ.KM. CBM Resource in the Awarded Blocks : 50 TCF Production Potential of these Blocks Commercial Production expected : 38 MMSCMD : 2007-08

23

EXPLORATION STATUS OF CBM

Total available coal bearing area : 35400 sq. km.

Exploration Initiated 38%

Un-Explored 62%

Unexplored

Exploration Initiated
24

GAS HYDRATES THE FUEL OF THE FUTURE

Indian offshore contains an estimated 1894 TCM of natural gas in the form of hydrates. Fresh impetus given by MOP&NG to National Gas Hydrate Programme (NGHP) in September 2000 Geo-scientific studies in East & West coasts of India were carried out. Three prospective areas mapped Drilling/coring of gas hydrate was carried out in East Coast, West Coast and KG basin. Scientific studies on the cores is under progress. Gas from gas hydrate is at R&D stage in the world.
25

OIL SHALE WAY FORWARD

Oil Shale resource estimation in progress in Assam. - expected completion by 2008. Tie up with foreign institutions having experience and expertise in oil shale exploration and

exploitation.

26

TOTAL 2D API EXPECTED (LKM)

2005&06 ONLAND SHALLOW WATER DEEP WATER TOTAL 4250 5200 19350 28800

2007&08 3810 1000 15200 20010

2009&10 700 0 0 700

2011&12 100 0 2400 2500

TOTAL 8860 6200 36950 52010

27

3D API EXPECTED (SKM)

2005&06 ONLAND SHALLOW WATER DEEP WATER TOTAL 660 5500 23450 29610 2007&08 3758 2550 15640 21948 2009&10 1210 500 2500 4210 2011&12 1350 0 500 1850 TOTAL 6978 8550 42090 57618

28

ADDITIONAL WORK EXPECTED IN NELP-VI BLOCKS

DEEPWATER SHALLOW WATER ONLAND TOTAL DEEPWATER SHALLOW WATER ONLAND TOTAL DEEPWATER SHALLOW WATER ONLAND TOTAL 22717 1511 4125 28353 72198 4163 8712 85073 30 10 50 90

3D IN SQ.M.

2D IN LKM

WELLS

29

EQUIPMENT / MATERIALS REQUIRED

Drilling Rigs : Onshore rigs, Jack-ups & Floaters, semi submersible

Christmas Trees & Offshore facilities Construction barges pipeline by barges, support services vessels and offshore support vessels etc.

30

BRIDGING THE GAP

Intensification in the Exploration through NELP Fast development of new gas discoveries Import of LNG Transnational gas pipelines
Iran-Pakistan India Myanmar Bangladesh-India

Gas production from CBM Underground Coal gasification Gas from Gas Hydrate
31

INFRASTRUCTURE DEVELOPMENT
A substantial boost in supplies from production or imports will take time and will require additional infrastructure Establishment of a national Gas Transmission system Moving gas from newly emerging supply centres to demand centres Addition of LNG infrastructure

32

PRODUCT PIPELINE

National Gas Grid

EXISTING PROPOSED

REFINERIES

INTERNATIONAL AIRPORT DOMESTIC AIRPORT

Delhi

Kolkata

National Gas Grid GAIL

Mumbai

A 1 BLOCK, MYANMAR

Product Pipelines in India

Refineries in India

Chennai

Major Airports in India

33

INFRASTRUCTURE DEVELOPMENT

34

LIKELY ACREAGE OFFER

IN NELP VII
TOTAL AREA LIKELY TO BE OFFERED : 400,000 SKM No. of blocks ~ 70-80

35

prognosticate hydrocarbons potential

36