Some Facts About Oil, Gas Market in India- The demand for Oil &Gas in India is on the rise due to its economic and population(skilled) growth year on year. Indian Government has made provisions to attract private investment and to increase domestic production through various reforms in the Oil&Gas sector policies. The Government is keen to remove all the obstacles to investment and incentivize oil and gas sector on the lines of ease of doing business and promote the Make­ in-India initiative in Oil&Gas too. Several private companies have emerged as important players in the past decade. It is a transparent and level playing field for Indian private/foreign investors and national oil companies — both enjoy the same fiscal and contract terms. Investment opportunities in India lies in upstream, gas pipeline, CGD network, LNG Terminal, Petrochemical and Refinery. To encourage private players and global oil companies, Income generated from storage and selling of Crude Oil in Strategic crude oil reserves has been exempted from Income Tax Government announced the Discovered Small Fields Policy in March, 2016 for monetization of 67 discoveries thorough international competitive bidding. Government has approved HELP and same has been notified on March 30, 2016. This policy provides a uniform licensing system to explore and produce all hydrocarbons such as oil, gas, coal bed methane, shale oil/gas, etc. under a single licensing framework, option to select the exploration blocks without waiting for formal bid round and also provides many incentives such as reduced royalty rates for offshore blocks, marketing & pricing freedom and easy to administer revenue sharing model.

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4. P.K. Borthakur, on the Oil&Gas growth prospects in INDIA
Mr. P.K. Borthakur
Former Offshore Director,
ONGC
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5. P.K. Borthakur
PHOTO
Taking over as the director (offshore) in the Oil and Natural Gas Corporation
Limited (ONGC) in October 2012. P.K. Borthakur played his part as a
remarkable oilman at a crucial juncture when ONGC set ambitious targets in
augmenting offshore production in the context of the organization's
perspective plan 2030.
A Mechanical Engineer from Guwahati University, Borthakur has been
groomed in IIM Lucknow and ISB Hyd. The rich industry-academia interface
of this thorough gentleman facilitated his conferment with Society of
Petroleum Engineers Distinguished member in 2011.
He has played an integral role in the development of the discovered assets
including cluster development of Marginal fields and in the redevelopment of
brownfields like Mumbai High, Heera and Bassein, which at one time were
contributing over 80% of ONGC’s domestic production.

6. Turmoil in Global Market Vs Performance of Oil &
Gas Sector of India

7. Turmoil in Global Market Vs Performance of Oil & Gas Sector of India..
❖ Global supply disruptions
❖ Peace in Nigeria, Iraq, Syria and Venezuela
❖ Saudi, Iran to boost production and
❖ USA to act as a swing producer
❖ Oil price will remain low in short term
In the long run,we may find oil stabilizing at $70/barrel.(your guess is as good as mine)
Indian oil market has emerged as the silver lining on the cloud of global oil market.
❖ Reports and survey show oil demand growth in India has surpassed that of China,
❖ India’s domestic oil output,backed by new oil fields,will grow marking a positive growth rate.
❖ Consumption and Investments show an upward trend.
❖ The east coast of India is expected to see substantial investments by ONGC, and Reliance.
❖ With OIL further exploring the area, it will also witness vibrant physical activities in coming years.

8. Execution & Experiences in Key Oil & Gas projects in India
[Mumbai high North Complex, Rig Deployment , Drilling, fast tracking of Marginal field Development ]

9. MUMBAI HIGH FIELD
Mumbai High is one of the world’s most difficult fields with multi faced challenges such as :-
● Multi layered fracture carbonate reservoir with very thin layers ,spread over 1200 square Km.
● Large numbers of well platforms with fewer number of wells at each platform
● Depleted reservoir, non uniform sweeps , water production
● Pug marks in platforms unique to rigs
● Limited working period due to monsoon
*India has large number of sand stone reservoirs in onshore.Most of these fields are 40 t0 60 years
old.Brown fields have associated problems and require large investment at regular intervals.

10. In spite of multi faced problems Mumbai high till today continues to produce
at a steady rate ,arresting natural decline ….
Primarily due to
➢ experienced workforce
➢ latest supporting technologies
➢ right dose of investment periodically

11. Marginal Fields
ONGC's experience of operating different field across four corners of country has been very useful to adopt
different techniques and strategies to develop marginal fields both onshore and offshore.
ONGC had few sour marginal fields within western offshore field.
❏ By adopting an innovative way of sweetening the gas at offshore before injecting in the pipeline
helped ONGC to overcome the challenge of producing from those fields using infrastructure of
existing fields (which was for sweet hydrocarbon)
❏ The other offshore field which started as marginal field turned out to be major field where ESP is
extensively used.
❏ Cluster development of few marginal fields using low cost platform and integrating with brawn
field’s infrastructure

12. These fields are successfully producing for many years now….

13. Discovered Marginal Fields on auction
❖ They are small in size and marginal in economics
❖ Presence of hydrocarbon is established through drilling of actual wells
❖ In most of the cases data is available
❖ Adequate data available to aid decision making
❖ Software and support systems can be rented for evaluation.
❖ A small team consisting of geologist, petrophysicist,production engineer and drilling engineer can do
the job .

14. Each oil field will be different..Good thing is same team can do the job on all
fields.

15. policy(for Discovered Oil Fields)GOI(Government of India) has taken a remarkable initiative to monetise discovered marginal fields
through auctions-
❖ These fields were discovered by two national oil companies and are mostly located around their oil
fields.
❖ Due to the degrees of freedom allowed in pricing and allotment, finding consumers is not a
challenge.
❖ Recent study indicates substantial improvement in business environment
❖ 87% investors showed confidence in oil& gas sector of India
❖ 82.3% gave a positive rating on investment scenarios
❖ Ease of doing business has improved
❖ More business friendly decisions by govt in pipeline
❖ Discovered small fields would require small investments,hence revenue sharing regime would suit
them.
❖ The offshore marginal fields ask for existing operator’s infrastructure utilization. Eg: Pipeline
network of existing operator can be used for transmission of gas.
The POLICY for Discovered Oilfields

16. The Policy is quite encouraging for small and new players.
Thus, these fields can be seen as an opportunity for small or new players...

17. Revenue-sharing regime Vs Production sharing contract model
Revenue Sharing Regime
❖ It has several advantages such as limited interference, limited approval & audit.
❖ Operators have more freedom and therefore it leads to efficient processes.
Cost Recovery Regime
❖ When it comes to mega projects with large uncertainty, cost recovery regime is more suitable.
❖ For major investments in deep water and difficult areas, revenue sharing regime is not likely to
attract big investment from outside india.

18. In discovered marginal field investment is low, uncertainty is less and
therefore revenue sharing model is more suitable.

19. DGH National and International Road Show takeaways for National and International Players on
marginal fields
❖ Single licence for exploration and exploitation- conventional & unconventional
❖ Exploration allowed during entire contract period
❖ Only two bidding criteria -Work program ( 20% weightage) and biddable govt revenue share(80%
weightage)
❖ Upto 100% participation by foreign companies/joint venture (allowed)
❖ Technical capability requirement for bidding has been kept low to attract new players
❖ Minimum tax and levies
❖ Freedom of marketing
❖ One time book value of wells and facilities of ONGC and OIL shall be made which has been
identified to be handed over

20. Poll- Which Country is capable and is aggressively investing in deep
water exploration and development, when global market is struggling due
to the current turmoil?
❏ US
❏ China
❏ India
❏ Brazil

21. On Shallow water or Deep water production
❖ Most of our prospects and inventories are in deep and ultra deep waters.
❖ India has some in shallow waters , characterised by high pressure, high temperature and very-tight
reservoir. These are bit risky asking for high investments and high level of technology.
❖ Weather considerations may turn out to be limiting factor in working sessions.
❖ Attracting investments in such deep and ultra deep fields requires going back to to cost recovery
method with major modifications inviting transparency.
❖ Deep water requires deep pockets, deep water technology and experience
❖ Shallow water tight formation having high temperature require
❖ Niche technology
❖ Large fracturing capacity
( to come up for auction separately for bidding round)
Govt of india will separately come for bigger blocks in due course of time with improved terms and conditions

22. What does the future hold for oilfield Services in Oil&Gas
Industry?

23. The Future...
❖ Oil field services will come out as bright spot in India’s future growth results.
❖ Currently, NOCs having their own services( partly).
❖ India has observed a shift in this regard, with companies going for more and more outsourcing
projects.
❖ highest concentration of offshore rig in the world.(from single location)
❖ Most of the services (OSV,MSV,CREW BOAT,HELICOPTER) are outsourced
❖ New licensing policy would attract big players in deep and ultra deep water, thereby increasing
activities in service sector.
❖ The mentioned fields would require latest technologies and state of art equipment specially high
pressure high temperature fracture, deep water gravel pack etc, which can be obtained from
established players in the field.
❖ Ideal place and time to shift manufacturing units to india
❖ Global oil&gas knowledge portals, forums backed up by expert discussions and analysis will play
instrumental role in bringing the big bright change in the sector.

24. For more or detailed information regarding discovered oil fields read the
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