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Overview of indian oil and gas   with current status of offshore drilling
Overview of indian oil and gas   with current status of offshore drilling
Overview of indian oil and gas   with current status of offshore drilling
Overview of indian oil and gas   with current status of offshore drilling
Overview of indian oil and gas   with current status of offshore drilling
Overview of indian oil and gas   with current status of offshore drilling
Overview of indian oil and gas   with current status of offshore drilling
Overview of indian oil and gas   with current status of offshore drilling
Overview of indian oil and gas   with current status of offshore drilling
Overview of indian oil and gas   with current status of offshore drilling
Overview of indian oil and gas   with current status of offshore drilling
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Overview of indian oil and gas with current status of offshore drilling

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  • 1. 1.1 Overview- Indian E&P Industry1.1.1 History •Oil Struck : Makum in Assam 1887 •First commercial oil discovery : Digboi. 1889 •Assam Oil Company formed. 1899 •Indias Domestic Oil Production : 250,000 tonnes per annum. 1947 •ONGC set up. 1955 •Oil India Limited (OIL) set up. 1958 •Discovery of Bombay High Field 1974 •Liberalized exploitation and exploration policy. 1991 •DGH is formed 1993 •4th, 5th, 6th, 7th & 8th rounds of exploration bidding 1994 •New Exploration Licensing Policy (NELP) 1998 •From 1998 held 9 NELP rounds. 20111.1.2 India Today  India remains energy deficit country - imports 77% of total domestic demand of 145 million MMT  The sedimentary basins of India: Onland and offshore up to the 200m isobaths: 1.79 million sq.km Beyond 200m isobaths, deep water: 1.35 million sq-km Total: 3.14 million sq-km Sedimentary Basins of India
  • 2. Page 1
  • 3.  Total demand of Crude oil projected: over 4 million bbls/day in 2013 – 14 and 6 million bbls in 2021-22  Projected growth rate in production as per 12th 5-Year Plan:  E&P Players in India: National Oil Pvt Cos/ JVs Companies Number : 59 Number : 10 Majors: Cairn Energy, Majors: ONGC, OIL, Ril, BP, BG, GAIL & GSPC Essar and HOEC TOTAL - 69 E&P PLAYERS E&P Companies with Offshore Assets in India o ONGC: the largest entity employing 40 rigs out of 51 offshore rigs deployed o RIL / BP: 2nd largest in offshore operations, primarily in DW segment o Other companies are BG, CAIRN, GSPC, Hardy, HOEC … Page 2
  • 4.  Share of total oil and SHARE OF TOTAL OIL & OIL EQUIVALENT GAS oil equivalent gas (O+OEG) PRODUCTION 2012 (O+OEG) production in 2012: 60% 40% 55% 20% 37% 0% 8% ONGC OIL Pvt. Co. / JV  Total No. of Exploration Pvt. Co. / OIL ONGC Wells planned during JVs the period from 2012 – 2017 is 1310: 174 525 611 The E&P companies vis-à-vis their operated blocks is represented by the following matrix : STATUS NAME OF OPERATOR SHALLOW DEEP LOCATION WATER WATER ONGC Yes Yes East, West NOC (PSU) OIL Yes No East GSPC (State) Yes No East, West Coast BHP Billiton Petroleum International Pty. Ltd Yes Yes MB, KK-East Hardy Exploration & Production (India) Inc. Yes Yes Cauvery British Gas Exploration & Production Ind Ltd. Yes Yes Tapti, Mumbai, KG Bengal Energy International Inc. Yes No Cauvery- East Cairn Energy India Pty. Limited Yes Yes East, West BP Exploration Alpha Limited No Yes KG-East Reliance Industries Limited Yes Yes East, West PRIVATE Focus Energy Limited Yes West Adani Enterprise No Yes North East Coast Essar Oil Limited No Yes North East Coast ENI India Limited No Yes Andaman OAO Gazprom No Yes North East Coast Petrogas Limited Yes East (Mahanadi) Page 3
  • 5. STATUS NAME OF OPERATOR SHALLOW DEEP LOCATION WATER WATER Santos No Yes North East Coast Hindustan Oil Exploration Company Limited Yes No Cauvery-east1.1.3 Various Regulatory bodies and their roles in Drilling SectorA. Institutional Arrangement under MOPNG: IGL MGLB. Directorate General of Hydrocarbons (DGH) • Monitoring all activities of NELP & Pre-NELP blocks/fields. • To prepare various data related to rigs and wells. • Evaluation of work programmes and approval budgets • Evaluation applications and issue EC related to drilling wells, rigs, OSVS etc. • Estimation of cost of unfinished drilling work programme of operators. • Technical scrutiny of all matters related to drilling/work-over activities.C. Oil Industry Safety Directorate (OISD) • Framing the Safety Regulations for the Oil and Gas Industry • Audit oil and installations for safety compliance Page 4
  • 6. C. Directorate General of Mines Safety : • Regulator of Mines in India, limited role over offshore installations, specifically Drilling Rigs.D. Petrofed • Facilitator for Oil Industries in India in Coordination with Governments, Regulatory Agencies and other representative bodies in the petroleum industry. • Promote Safety, Healthy Environment and Energy conservation • Award the Industry Leaders • Organise Seminars, Conferences, Training programmes, lectures and publication of Technical papers & newsletters.E. Other Government Bodies and their role in connection offshore Drilling: Agency Short Name Issues related Offshore Drilling Ministry Of Petroleum And Natural MOPNG For Approvals As Required Under Gas PSC. Ministry Of Environment & Forests MOEF Monitors E&P Operators, primarily on Drilling Fluid Ministry Of Defence MOD Security Clearance For Vessels In Indian Waters and Crews Ministry Of Finance MOF Tax and Customs Duty Director General Shipping DGS Approval For Hiring Foreign Vessels Director Of Explosives DOE Importing / Stocking Explosives Coast Guard CG Security And Hazard Issues For Offshore Installations Commissioner Of Customs & Excise CCE Imports / Exports Commissioner Of Income Tax CIT Income Taxation Registrar Of Companies ROC Registration Of Company Statutory Returns Reserve Bank Of India RBI Payments In Foreign Currency1.1.4 Other Industry bodies and their roles IADC: Very active and has strong representation specifically in ONGC and offshore drilling industry SPE: Very active, arranges technical conferences; a great place to meet the Asset Owners. CII: Represents Industry bodies to Government in Policy Issues. FIICCI: Representing Industry bodies to Government in Policy Issues. Petrotech: Arranges the largest oil and gas conference in India AOGO: An Association exclusively for E&P Operators; Page 5
  • 7. 1.2 Drilling Outlook – Indian Offshore1.2.1 Drivers :  Pressure/targets for domestic production  Improve recovery from 28% to 40%-Mumbai High Redevelopment /other through IOR/EOR  Operators keen to monetize discoveries1.2.2 Exploration Activities: Driven primarily by NELP commitments (MWP) During the last 3 NELP rounds: • 19 DW blocks and 20 SW blocks were awarded; • Seismic work is in progress/completed. • Drilling yet to be started As per 12th 5-Year plan forecast Exploration Wells during 2012 – 2017: o ONGC: 611 o OIL: 174 o Pvt Co/ JVs: 525 o Total: 1310 RIL to invest USD 1.53 billion for exploration of satellite blocks of KG D6 [water depth 700m (2,297ft) and 1,700m (5,577ft)]1.2.3 Activities Outlook: Development & Production- Shallow Water: Co Requirement Status ONGC Development/Redevelopment plans being Rolled out plans to invest launched for Mumbai High/Others in early USD 7.7 Billion for 2000 in order to achieve the recovery factor redevelopment of existing to 40% till 2030 from the current level of field and exploration of sub 30% . Expansion Mumbai offshore to satellites develop 3 more cluster in 3- 4years. Cairn 6 months, starting mid 2013, mat rig Tender process to start Addl Development beginning 2014, 2 Rig Budgeted, Subject to Years Geological Work BG Two rigs till 2014, Chetna and ENSCO 54 New Tender subject to JV likely to continue decision GSPC To drill 15 HPHT wells by 2014 at East Coast Already resourced – Platform Rig BP/RIL New Discoveries, Drilling to commence by Under Development mid-end 2014 Planning Others Hardy, ENI (DW), AWEL, HOEC, NIKO Details not available Page 6
  • 8. 1.2.4 Deepwater- Snapshot :  10-15 years firm development drilling is foreseeable with a likely deployment of 4-5 deepwater/ultra deepwater floaters in Offshore India  RIL & ONGC have substantial numbers of gas discoveries on the East Coast  Development of RIL’s NEC & KG discoveries may result in long term intensified drilling activities from 2013 onwards  Post on-going appraisal, ONGC’s FDP for KG & MN expected to result in incremental drilling programme (50 wells) commencing 2014/15  Discoveries like D6, UD-1 essential for continued interest among the operators community  Govt’s willingness to optimize the gas pricing would help efficient monetization, a rethink on calculation for FDP approval  India moving towards increased gas consumption (Power plants, cross country pipelines, CGD) good domestic market1.2.5 Looking Ahead : Shallow Water Deep Water• Present level OF development activities to * A temporary pause in the development continue on the foreseeable future activities for various reasons, expected to pick up substantially in next 2-3 years• Exploration backlog to last at-least for another 10 years, some upsurge in mid * DW blocks awarded under NELP 8 & 9 th water activity in mid term round expected to further maintain the drilling momentum from 2014 onwards• ONGC expected to remain dominant player * Application of new technology on the west coast (sub Basalt Mapping etc) may lead to Phase-II entry in MB/KK exploratory blocks for operators and which may result in incremental drilling commitments Page 7
  • 9. 1.2.6 Current Market Analysis for Offshore Drilling Rigs Market Share- 2012 Transocean ONGC 8 12 Aban 2 Nabors 3 Jindal GreatOffshore 3 8 Jagson 4 Greatship 5 6 Others (1 Rig) Market Share by Rig Type 4 1 Jack up 7 Platform Drillship 7 Semi 32 Barge Type of Contracts 3 Years 5 Years 17 4 Years 22 1.5 Years 18 Wells 1 11 9 Well Contracts Page 8
  • 10. 1.2.7 Current Market Analysis for Offshore Jack-up Rigs Market Share in Jack-up Rigs - 2012 Transocean 1 1 1 ONGC 2 7 Aban 2 Jindal Jagson 3 Greatship 6 GreatOffshore Deepwater 4 Focus 5 Foresight Utilisation of Jack-up Rigs by Type 2 2 300 IC 3 350 IC 17 375 IC 8 250 IC 250 MS Utilisation of Jack-up Rigs by Design F&G L 780 4 KFELS B Class 8 LET 116C 4 BMC 300 IC LET 53C 2 ETA 4 2 Hitachi 2 3 LEV 111C 3 Others (1 Rig) Page 9
  • 11. 1.2.7 Current Market Analysis for Floaters Market Share of Floaters in Indian Waters 1 Aban Offshore 1 GOL Offshore 5 Jet Drilling 1 Noble Vantage Drilling 1 ONGC 1 Transocean 2 Page 10

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