Directorate General of HydrocarbonsNew Delhi, India

V. K. SibalDirector General

TAKING UPSTREAM TO

NEXT LEVEL

• Exploration History

• Achievement - PSC regime

• Future fossil fuels

• What Next ???

• Way forward

• Exploration History

• Achievement - PSC regime

• Future fossil fuels

• What Next ???

• Way forward

PRESENTATION OUTLINE

EXPLORATION HISTORYEXPLORATION HISTORY

Pre Independenceera

What Next ???

NELP era

Pre NELP era

Nomination era

1886 - 1946 1947 - 1990 1990 - 1996 1997 – till date Future ???

EXPLORATION HISTORY

PSC Regime

HIGHLIGHTS – PSC Regime

PSC Regime : PSC Regime : Pre-NELP Pre-NELP ((1990 – 1996) 1990 – 1996)

• Liberalized economic policy adopted by Govt. of India

• Petroleum sector de-regulated and de-licensed Petroleum sector de-regulated and de-licensed

• Formation of Directorate General of Hydrocarbons in 1993

• Small size producing fields offered to Pvt. Operators / JVs Small size producing fields offered to Pvt. Operators / JVs

• Acreages, both offshore and onshore, offered through competitive bidding

• Poor response, 270 blocks offered but only 35 blocks could be Poor response, 270 blocks offered but only 35 blocks could be contracted to Pvt. Companies contracted to Pvt. Companies

Need for better Fiscal and Contractual termsNeed for better Fiscal and Contractual terms

HIGHLIGHTS – PSC Regime

• PSC Regime : PSC Regime : NELP NELP ((1997 till date)1997 till date)

• Govt. announced New Exploration Licensing Policy (NELP)Govt. announced New Exploration Licensing Policy (NELP) in in

19971997

• Administrative Price Mechanism (APM) abolished

• 100% FDI in E&P sector approved by Govt. 100% FDI in E&P sector approved by Govt.

• Hydrocarbon Vision 2025 revealed in March 2000

• Seven rounds of international bidding completed Seven rounds of international bidding completed

• 162 blocks awarded

• 45 blocks of NELP VII will be awarded soon45 blocks of NELP VII will be awarded soon

ACHIEVEMENTS – PSC ACHIEVEMENTS – PSC REGIMEREGIME

AREA awarded : 2.15 Million Sq Km (68%)

AREA AWARDEDAREA AWARDED

Nomination26%

NELP67%

Pre NELP7%

Total area : 3.15 Million Sq Km

ACCELERATED EXPLORATIONACCELERATED EXPLORATION

AREA UNDER LICENCE

LICENCE STATUSLICENCE STATUS

ONLAND0.99 Million Sq Km

46 %

14%

2.15 Million Sq Km (68%)

SHALLOW WATER0.3 Million Sq Km

DEEP WATER0.86 Million Sq Km

40 %

0.99 Million Sq Km (32%)

YET TO OFFER

DEEP WATER0.49 Million Sq Km

ONLAND0.4 Million Sq Km

SHALLOW WATER0.1 Million Sq Km

10%

40%50%

CHANGING SCENARIO

PEL : 203 ML : 163 PEL : 222 ML : 339

1996 2008

19902 Companies

3 Producing Basins

200012 Companies

7 Producing Basins

200749 Companies

10 Producing Basins

19471 Company

1 Producing Basin

MORE OPERATING COMPANIES

2D Seismic (LKM) 25,728 1,45,067 2,63,692

3D Seismic (SKM) 6,174 1,15,802 1,08,232

Exploratory Wells (No.) 229 178 459

Discoveries (Nos.) 32 66 -

In-place Reserves Accretion (O+OEG) Bbbl

1.18 9.34 -

2000-2008 1993-2008 2008 -2012

E&P DATA GROWTH

SPECULATIVE SEISMIC SURVEYS

AGENCY COUNTRY TYPE OF SURVEY STATUS

GX Technology USA2 D seismic over East /West Coast

Completed

GGS Spectrum UKReprocessing of old seismic data of West Coast

Completed

EMGS NorwayElectromagnetic survey over East Coast

Completed

PGS Singapore2 D seismic over Andaman offshore

In progress

Mc Phar Canada Airborne GM SurveyIn progress

SPURT OF DISCOVERIES (2000-2008)

AN

DA

MA

N

&

NI

CO

BAYOF

BENGAL

ARABIAN SEA

OilGas Km

0 400200

KANAKDURGA, PADMAVATI, ANNAPURNA,

DHIRUBHAI –1, 2, 3, 4, 5, 6, 7, 8,

16, 18, 19, 22, 23, 26

BHEEMA, NS

LAKSHMI

AMBE

GAURI

Delhi

Mumbai

Chennai

Kolkata

RajasthanBasin

CB-OS/2

RJ-ON-90/1

KG-DWN-98/3

KG-DWN-98/2

CHINNEWALA TIBBA

BANAMALI, LAIPLING GAON & MEKEYPORE

BAGHJAN, MATIMEKHANA,

CHABUA, N. CHANDMARI, N. TINALI, W. ZALONI, SAMDANG, MORAN-N, BAZALONI, BAREKURI

I N D I A

G-4-2-AB

DHIRUBHAI –9, 10, 11, 15, 20, 21

-9,

NMT-2

VASAI EAST & WEST

SONAMURA

CB-ONN-2000/1

CB-ONN-2000/2

PK-2, SANAND EAST(1)

CBX-1

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

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

KG-OSN-2001/2&3DHIRUBHAI –

24, 25, 28 & KG-8, KG-17

CB-ON/3

ESU-1

CB-ON/2TARAPUR-1

NEC-OSN-97/1&2

SWP-1

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

B-9, RV-1

OilGas Km

0 400200OilGas Km

0 400200

Km

0 400200

KANAKDURGA, PADMAVATI, ANNAPURNA,

DHIRUBHAI –1, 2, 3, 4, 5, 6, 7, 8,

16, 18, 19, 22, 23, 26

BHEEMA, NS

LAKSHMI

AMBE

GAURI

Delhi

Mumbai

Chennai

Kolkata

RajasthanBasin

CB-OS/2

RJ-ON-90/1

KG-DWN-98/3

KG-DWN-98/2

CHINNEWALA TIBBA

BANAMALI, LAIPLING GAON & MEKEYPORE

BAGHJAN, MATIMEKHANA,

CHABUA, N. CHANDMARI, N. TINALI, W. ZALONI, SAMDANG, MORAN-N, BAZALONI, BAREKURI

I N D I A

G-4-2-AB

DHIRUBHAI –9, 10, 11, 15, 20, 21

-

NMT-2

VASAI EAST & WEST

SONAMURA

CB-ONN-2000/1

CB-ONN-2000/2

PK-2, SANAND EAST(1)

CBX-1

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

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

KG-OSN-2001/2&3DHIRUBHAI –

24, 25, 28 & KG-8, KG-17

CB-ON/3

ESU-1

CB-ON/2TARAPUR-1

NEC-OSN-97/1&2

SWP-1

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

B-9, RV-1

As on 1/10/2008

Total Discoveries (PSC) - 101Pre NELP –32

NELP – 66Discovered Fields - 3

Total Discoveries (Nom) - 70

ENDUMURUTURPUTALLU

TREND OF DISCOVERIES (PSC)

24

774

4

14

12

16

78

8

17

31

40

75

8182

2

4

6

8

10

12

14

16

18

20

22

24

26

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 0

10

20

30

40

50

60

70

80

90

Discovery

Exploratory Wells

AS ON 01-04-2008

Dis

cove

ry

Exp

lora

tory

Wel

ls

17

EMERGING GAS POTENTIAL - EAST COAST EMERGING GAS POTENTIAL - EAST COAST

Basin Area (Sq.km) : 299,000

Resources (O+OEG) : 48 (Billion bbl)

Resources Gas : 153 TCF (Approx)

GIIP Reserves (TCF) : 16.38

Current Gas Production : 1.9 (MMSCMD)

Anticipated Production: 100 (MMSCMD)

Drilling Density : 0.15 wells/ 1000 Sq. Km

INCREMENTAL PRODUCTION

At the time of handing

over

Present/ Peak production

% Increment

Oil

(BOPD)9,125

92,762 10 times

Gas (MMSCMD)

0.00219.5

1000 times

In place Reserves (O+OEG) MMT

373.6 532.91.5 times

INVESTMENT BY JOINT VENTURESINVESTMENT BY JOINT VENTURES

As on March, 31st 2008 US$ Million

EXPLORATION DEVELOPMENT TOTAL

PRE-NELP EXPL. BLOCKS 1,253 920 2,173

PRE-NELP DISCOVERED FIELDS 284 3,724 4,008

TOTAL PRE-NELP 1,537 4,644 6,181

NEPL-I 2,257 3,413 5,670

NEPL-II 433 9 442

NEPL-III 768 0 768

NEPL-IV 684 0 684

NEPL-V 398 0 398

NEPL-VI 87 0 87

TOTAL NELP 4,628 3,422 8,050

GRAND TOTAL 6,165 8,066 14,231

GOI PROFIT PETROLEUM

WHAT NEXT ???WHAT NEXT ???

(i)(i) Learning from PSCs regimeLearning from PSCs regime

(ii)(ii) Futuristic exploration Futuristic exploration

What Next ???

1886 - 1946 1947 - 1990 1990 - 1996 1997 – till date Future ???

WHAT NEXT ???

(i)SWOT analysis of

PSC regime

(ii) Shift in Exploration

• Established Prospectivity of Indian basinsEstablished Prospectivity of Indian basins

• Creation of “Brand India” for E&P industryCreation of “Brand India” for E&P industry

• Induction of Knowledge & TechnologyInduction of Knowledge & Technology

• India – Growing marketIndia – Growing market

• Outstanding “Model PSC” conceptOutstanding “Model PSC” concept

• Exponential growth of “ E&P ” dataExponential growth of “ E&P ” data

• Vibrant and growing E&P industryVibrant and growing E&P industry

STRENGTHS

Resource crunchResource crunch

• Service sectorService sector

• Infrastructure – Lack of coordination between Policy Infrastructure – Lack of coordination between Policy maker – Academia - Industry maker – Academia - Industry

Technology Gap ( Local vis-à-vis Global) Technology Gap ( Local vis-à-vis Global)

Indifferent attitude of Policy makers / Industry–Indifferent attitude of Policy makers / Industry–Academia Academia

Mismanagement of “Geo-scientific” dataMismanagement of “Geo-scientific” data

WEAKNESSES

OPPORTUNITIES

To develop India as main hub To develop India as main hub

• Service sectorService sector

• Human resourcesHuman resources

• Huge gap in “ Resources prognostication and reserve Huge gap in “ Resources prognostication and reserve establishment”establishment”

India – An under explored destination India – An under explored destination

Conventional resourcesConventional resources

Unconventional resourcesUnconventional resources

Fastest growing market for oil & gas Fastest growing market for oil & gas

Scarcity of resourcesScarcity of resources

• HumanHuman

• ServicesServices

• InfrastructureInfrastructure

Government intervention – after discoveriesGovernment intervention – after discoveries

Increasing cost of explorationIncreasing cost of exploration

Non existence of R&DNon existence of R&D

Total lack of communication between Policy maker –Total lack of communication between Policy maker –Industry - AcademiaIndustry - Academia

THREATS

INDIA’S RESOURCES

Type Resources In place Reserves

Conventional Oil & Gas206

Biliion bbl

67 Billion bbl

(32%)

Unconventional

CBM 50 TCF 6 TCF (12%)

Gas Hydrate

66,900 TCF Nil

Oil Shale Under evaluation

Billion

barr

els

oil e

qu

ivale

nt

yr-

1

Natural Gas

Coal

Alternatives

Oil

Estimates of 21st centuryWorld energy suppliesBillion barrels oil equivalent

19001900 20002000 21002100

(ii)(ii) Futuristic Exploration

WHAT NEXT ???

a) Shift In ExplorationShift In Exploration

b) Paradigm shift from conventional

to unconventional fossil fuels

• Deep water Deeper water depth

• Integrated exploration strategy

• More seismic coverage / drilling density

• Old field revitalization

• Increasing recovery factor

SHIFT IN EXPLORATION

• Gas Hydrate

• CBM

• Oil Shale

• Gas Hydrate

• CBM

• Oil Shale

ALTERNATE RESOURCES

PARADIGM SHIFT

Source USGS (2005)Source USGS (2005)

Worldwide Gas Hydrate Distribution

World Oil Shale Resources

2.6 Trillion Barrels worldwide2.6 Trillion Barrels worldwide

1 Ton of rock= 1 Barrel of oil1 Ton of rock= 1 Barrel of oil

Current activity: Brazil, China, Estonia

Current activity: Brazil, China, Estonia

Other deposits in Australia, JordanOther deposits in Australia, Jordan

Source : USDOESource : USDOE

NGHP EXPEDITION

Scientific

Coring-Logging

Kerala-Konkan Basin:

One site

Krishna-Godawari Basin:

Fifteen Sites

Mahanadi Basin:

Four Sites

Andaman Islands:

One Site

-Total 113.5 Days

-Total 21 Sites

• No proven production technology

• Dedicated R&D centre on Gas

Hydrate development

ISSUES – Gas Hydrate

36

OIL SHALE

• Carbonaceous shale occur in Assam &

Arunachal Pradesh. 

• The presence of coal and shale has been

recorded in wells drilled for hydrocarbons by

ONGC and OIL.

• These formations outcrop on the surface in a

region called the Belt of Schuppen.

OBJECTIVE - WHAT NEXT ??

What should be the strategies??

• Manage

– Resource gap

– Technology gap

– Knowledge gap

• Futuristic exploration policies

Tec – Knowledge gap

• All mineral exploration under one roof

• Highly focused approach between Policy

makers – Industry - Academia

• Creation of R&D hub for E&P section

• Creating “ Level playing field” for

National and International service industry

STRATEGIES

All mineral exploration under one roof

• National Mineral exploration policy

• All sub surface rights under one Ministry

• Ministry of Mineral Exploration

― Coal

― Petroleum

― Other Minerals

― Geological Survey of India

REDEFINING POLICIES

• Geo scientific institutions to marinate IT with

Geo Sciences

• Futuristic curriculum to be introduced in

universities and college level

• Establishment of National Data repository for

entire mineral industry

• Encouraging policies to share the data

amongst the various stake holders

KNOWLEDGE GAP MANAGEMENT

• Accelerated exploration programme through PSC

• No tinkling of PSCs signed and intervention after

discoveries

• Level playing field between international and

national player in service sector

• Maintaining the sanctity of fiscal stability in PSC

RESOURCE GAP MANAGEMENT

Basic roots are to be strengthen • Advanced curriculum

• Industry oriented research

• Better coordination between Academia – Industry –

Policy makers

• Redefining research institute policies

• Periodical review to meet

industry demand

• Continuous up gradation

RESTRUCTURING ACADAMIA

• Create India as hub for knowledge and

service sector

• Intensive research for unconventional fossil

fuel

• Creating synergy between Policy maker –

Academia and Industry

• Role clarity between technical regulator –

industry and government

WAY FORWARD TO LEVEL NEXTWAY FORWARD TO LEVEL NEXT

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