Reliance - Innovation for India award winner

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A quick case study on Reliance's Business innovation.They won an Innovation for India award at the Marico Innovation's Foundations award night.

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Reliance - Innovation for India award winner

  1. 1. Reliance Industries Ltd. Deep Water Oil and gas exploration to production KG-D6<br />
  2. 2. Reliance Industries Ltd.: KG-D6<br /> Innovation: India’s first deep water, oil and gas exploration and production:<br /><ul><li>Biggest discovery of natural gas in 2002, globally.
  3. 3. Completed in 6.5 years time against global average 8 -10 years.
  4. 4. At a depth of 2 km below the seabed. No one had gone below 90 mts. in India.
  5. 5. Discovery and development cost was ~30% lower than global average.
  6. 6. 24.2$ per barrel oil equivalent of gas</li></ul>Context:<br /><ul><li>Demand for gas in India will surge at 9-10% annually.
  7. 7. India pays a premium of ~75 $ per barrel oil equivalent for LNG. NAPHTA is 445 $ per tonne.</li></li></ul><li>Reliance Industries Ltd.: KG-D6<br />KG-D6 Block - Overview<br />Challenges:<br /><ul><li> No deep water oil and gas exploration in India.
  8. 8. Absence of deepwater technology knowhow, vendors, contractors, skilled labour, in India.
  9. 9. 4 months good weather:
  10. 10. hostile ocean conditions – strong winds, swells, currents, cyclones
  11. 11. scorching conditions 50 degrees C in summer
  12. 12. heavy rains: double monsoon cycle.</li></li></ul><li>Reliance Industries Ltd.: KG-D6<br />Project Vision Statement<br />The KG-D6 Project will ‘for sure’ set the benchmark for deepwater field development!<br />Safety, Speed & Success <br />Upgradable <br />Reliable<br />Environmentally Responsible<br />
  13. 13. Conventional: Single Turnkey Provider: Long waitlists<br />Global span of execution, 24 X 7 round the clock: Over 200 best in class consultants & service providers engaged in over 20 locations worldwide<br />Reliance Industries Ltd.: KG-D6<br />
  14. 14. Soil erosion effecting stability of equipment at the sea bed. <br />Corrosion of equipment <br />Current loads impacting equipment at sea bed.<br />Flow assurance of fluids: conversion into crystalline solids called hydrates.<br />Reliance Industries Ltd.: KG-D6<br />
  15. 15. Reliance Industries Ltd.: KG-D6<br />Extreme Engineering<br /><ul><li> 125,000 MT Subsea Equipment
  16. 16. 500 line km of pipelines & Umbilicals
  17. 17. >200 subsea connections
  18. 18. >80 installation Vessels & Barges</li></li></ul><li>Reliance Industries Ltd.: KG-D6<br />The production of about 76 lakh tonnes of urea per year results in savings for the government of about Rs. 4000 crore per annum, an equivalent of 18% cost reduction!<br />Substantial increase in government's revenue as a result of KG-D6 profit, petroleum royalty and tax. The potential savings to the economy of Rs.50,000 crore on energy imports will be about 20% of the current net oil import bill. <br />The estimated 3rd quarter (2009-10) contribution to India’s GDP is almost 0.35%.<br />Natural gas is also a cleaner fuel. Clean gas from KG-D6 can have an overall impact of lowering carbon emissions and building a greener footprint by 35%.<br />Addition of 550,000 barrels of oil equivalent per day, i. e. 40 % of India’s current oil and gas production.<br />Publication: Financial Express, Edition: Mumbai, Reporter: Sanjay Jog, Published.: 12 Jul 2009, <br />
  19. 19. Congratulations Reliance Industries!<br />

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