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INDIA HAS NEVER BEEN HERE BEFORE | Facts You Didn't Know About KG-D6

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Deep water exploration for oil and gas is a complex science and a risky business. It involves technology and extreme engineering of the kind that India has not seen before. It requires staggering amounts of risk capital. Exploration success rate is as low as one in ten and reservoir surprises can occur at any stage of development and production.
People without even a fleeting understanding of the sector have touched off a debate over the KG-D6 block to suggest that Reliance Industries is making windfall profits. This compilation is an attempt to inform the debate with facts so that rhetoric and illogic don’t drown out the serious issue of India’s energy security...

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INDIA HAS NEVER BEEN HERE BEFORE | Facts You Didn't Know About KG-D6

  1. 1. FACTS YOU DIDN’T KNOW ABOUT KG-D6 here before India has Never been S E R I E S
  2. 2. FACTS YOU DIDN’T KNOW ABOUT KG-D6 here before India has Never been
  3. 3. Deep water exploration for oil and gas is a complex science and a risky business. It involves technology and extreme engineering of the kind that India has not seen before. It requires staggering amounts of risk capital. Exploration success rate is as low as one in ten and reservoir surprises can occur at any stage of development and production. People without even a fleeting understanding of the sector have touched off a debate over the KG-D6 block to suggest that Reliance Industries is making windfall profits. This compilation is an attempt to inform the debate with facts so that rhetoric and illogic don’t drown out the serious issue of India’s energy security. Introduction
  4. 4. The D1-D3 fields in the KG-D6 block operated by Reliance Industries is amongst the greenfield deep water oil and gas development project from notification of discovery to first production. It was an engineering project of the nature that India has before. The gas reservoir was at least into the high seas, below the surface and below sea the bed. It used of subsea equipment, 60 km of subsea pipelines--the longest ever built in India and 2500 line-km of pipelines and installation vessels. Design and construction innovations were used to redefine internationally accepted for such projects. RIL took just to start production (from the date of discovery) against the average of It put India on the global map of extreme engineering attracting approbation from industry peers, domestic and international. fastest in the world extreme never seen 50 km one km two km 110,000 million tonnes 80 timelines six and a half years world ten years. — Temple of modern India…. engineering marvel S K Srivastava, Director General, DGH, Dec 8, 2012 DHIRUBHAI-1: The Floating Production, Storage & Offloading (FPSO) facility with capability of oil and gas processing, oil and condensate storage, offshore offloading and gas evacuation to the onshore terminal. S E R I E S 3
  5. 5. UpstreamCapitalcostindex(IHS-CERA) 300 250 200 150 100
  6. 6. RIL is India's first, and thus far only, deep water gas producer No other company, public or private, has started production 14 years after first NELP auctions. 2.32trillion cubic feet. Gas produced RIL since2009.by 75% Domestic gas produced by PSUs. RIL's share is only 15percent. `16,000crore. ONGC'srevenue increase gas price hike. RIL only `2,400 crore. FLAME FACTSIt’s easy to throw numbers to hide facts, such as the alleged `54,000 profit per year to RIL. Some real figures. due to
  7. 7. 33$ billion. The foreign reserves savedin import substitution. `54,000crore. The alleged windfall profit for RIL is an absurd miscalculation floated deliberately to distort gas pricing discourse. `1,20,000crore. Lossto the nation if gas production not made viable, increasing import dependence. *$16 Price RIL pays for importing LNG. $4.2MMBtu, price it sells KG-D6gas for! Govt determines the end user of KG-D6 gas. 100% Every cubic feet of the **2.279trillion cubic feet of gas produced under NELP is from RIL. No other producer in 14 years of NELP. $400 billion. Worth of 27 TCF of discovered gas awaiting for development and investments production. Critical for India's energy security. *Price can vary from time to time **Till Dec. 2013
  8. 8. The Illogic Of Cost As Profit!09
  9. 9. S E R I E S The off-loading hose on reel under the heli-deck. This hose is used to transfer oil to cargo ships. It has adequate buoyancy to avoid submergence even if full of oil. 31
  10. 10. Bird’s eye view of the helideck, pipe deck and accommodation from the Derrick.
  11. 11. Pacific North West Sinopec+ | 6.5bcm Kazakhstan PetroChina | 10bcm Turkmenistan PetroChina | 60bcm NWS LNG CNOOC | 4.5bcm A1-A3 PetroChina | 4.1bcm Qatargas ¾ LNG CNOOC/PetroChina | 6.8bcm Yemen LNG CNOOC | 4.9bcm BG Portfolio CNOOC | 6.8bcm Graphic By: Team Reliance
  12. 12. Yamal LNG CNPC | 4.1bcm Russia CNPC | 38bcm Uzbekistan PetroChina | 10bcm QC LNG CNOOC | 4.9bcm AP LNG Sinopec | 10.3bcm Gorgon LNG PetroChina | 5.7bcm MLNG Dua/Tiga CNOOC | 4.1bcm Tangguh LNG CNOOC | 3.5bcm PNG LNG Sinopec | 2.7bcm
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