PRE-FEASIBILITY REPORT ASJOL OILFIELD PROJECT

ASJOL OIL FIELD Cambay Basin [North], Gujarat, India

February 2019

Joint Venture Consortium of

Gujarat State Petroleum Corp. Ltd. [GSPC]

Hindustan Oil Exploration Company Ltd. [HOEC] -Operator

Table of Contents 1.0 Executive summary ........................................................................................................................... 3

1.1 Introduction and Background ........................................................................................................... 3

2.0 Existing Project facilities ................................................................................................................... 4

3.0 Proposed Project ............................................................................................................................... 5

3.1 Objectives.......................................................................................................................................... 5

3.2 Surface Locations of Proposed Wells and hook up distances ........................................................... 5

4.0 Conclusion ......................................................................................................................................... 5

1.0 Executive summary

Asjol Block PSC was signed in Feb 1995 between HOEC [50%- Operator], GSPC [50%] and

Government of India. The JV and Government of India have benefited from the Block in terms of

sharing of production of crude oil produced from the Block. Phase-I of Expansion was carried out in

1996 wherein two development wells were drilled.

Operator has studied the sub-surface production data and proposes to implement Expansion project

for increasing oil production from the Asjol oilfield as follows:

The EXPANSION project considers:

Development In-fill Drilling: Drilling of 4 wells

Hook up wells and connect them to EPS through underground flow lines.

Production life has been considered as 10 years.

Capital Expenditure of Rs. 30 crores.

Peak incremental production rate assumed at 38 bopd from each of 4 wells. The gathering facility

has sufficient capacity to cater to this additional production available from EXPANSION PROJECT

besides existing production which is on a decline.

It is assumed that the EAC-MOEF would favorably approve the EXPANSION PROJECT and grant EC at

the earliest.

1.1 Introduction and Background

The Asjol Lease Block covering an area of 15 Sq. Km, is located about 25 Km South-West of Mehsana

town in Gujarat State [Fig.1]. The field is located in the Mehsana – Ahmedabad tectonic block of

Cambay Basin. The block is surrounded by number of producing oil and gas fields [Fig.2]. North Kadi,

a major oil producing field is located immediately south of this Block. In North-East, on the flank of

Mehsana horst, fields like Santhal and Balol are the big producers of oil and gas while on the western

side lies Becharaji field which is also recognized as good oil producer. The hydrocarbons has similarly

migrated and accumulated in structural and stratigraphic traps in the Block.

The initial exploration was carried out by ONGC, acquiring Gravity - Magnetic & Seismic data and

drilling 5 wells in this area; out of which 4 wells are within the lease area. Only one well; Asjol # 5 is

an oil producer while the remaining wells [Asjol-1, 2 and 4] were abandoned after testing pay

equivalent sands and the older Trapwash sections. Asjol # 1 & Asjol # 2 had some indication of oil

within the older trapwash section but results were not encouraging. All these wells are located

towards NW part of the Block where reservoir quality is observed to be poor. Asjol#3 is located

outside the Block boundary [Fig. 3].

In 1994 the consortium of HOEC (Operator) & GSPC was awarded a permit to develop the Asjol field.

Based on re-evaluation of the Block 1995, two wells Asjol-6 and Asjol-7 were drilled in 1996. Both

the wells proved to be oil producers. Asjol-6 was drilled on the down-dip direction of Asjol-5 [Asjol-5

Block] and it had better reservoir characteristics and thickness of pay interval as compared to Asjol-

5. The drilling of Asjol-7, a producer drilled in the intermediate sub-block of Asjol field opened up

totally new area for development. The wells were connected to existing gathering facility at Asjol-5

well-site [EPS].

Out of six existing wells in the Block, three wells [Asjol 5, 6 & 7] are presently on production. The

average total field production rate from these wells is around 50 bopd and is on decline. In order to

augment field production and take advantage of current crude oil price, Joint Venture Partners have

proposed EXPANSION PROJECT.

The Initial oil estimates for all the three fault sub-blocks in the Asjol oil field is about 2.33 MMm3. Till

31st March 2007, the total production from the field was about 0.44 MMm3.

2.0 Existing Project facilities

The crude oil containing liquids from different producing wells flows to the manifold at existing EPS

(Early Production System) at Asjol-5 well site and after due settling and measurements goes to

storage tank for onward dispatch to ONGC NK-GGS-III site through dedicated ONGC pipeline for due

processing by ONGC for onward dispatch to Gujarat Refinery. The complete transfer from wells to

Refinery is through pipelines only. There is no gas in the system. Plant flow diagram is enclosed. [Fig.

4]. The existing facility as shown in the figure is sufficient to cater to EXPANSION PROJECT outcome.

Operating Process:

The Process System for Asjol-EPS has been designed keeping in view the maximum utilization of the

vessels and equipment and flexibility of operations to cater to EXPANSION PROJECT.

Oil Storage and dispatch.

Three nos. of storage tanks have been built, each having a capacity of 45 m3, to handle field

production. The cargo from tanks A, B and C is offloaded by means of two Crude Offloading Pumps;

the crude oil gets dispatched to Gujarat Refinery through ONGC’s facility at NK-GGS-III. through 4”

ONGC pipeline from Asjol to NK-GGS-III. Custody transfer procedures set by a legal document

between HOEC-GSPC-IOC. No processing operations are taking place at Existing plant and no

processing operations shall be carried out after completion of EXPANSION PROJECT.

Gas metering / dispatch / flaring Facilities.

No gas is produced from the wells.

As a result of expansion project there will be no requirement of additional processing facilities.

3.0 Proposed Project

3.1 Objectives

1. Early monetization of existing hydrocarbon resources 2. Adequate development of sub-surface reservoir 3. Improve oil recovery 4. Take maximum benefit of prevailing crude oil price. A total of four additional infill-development wells and hook-up to the existing gathering facility

located at Asjol-5 well site [Fig. 5] have been proposed for immediate drilling in Asjol field in order to

exploit and monetize the hydrocarbon resources quickly along with adequate drainage and

development of reservoir. The target depth for all the four wells proposed in Asjol oilfield is 1100 m.

The wells shall be hooked upto the nearest existing well-site manifold for transferring the produced

oil to the Asjol EPS as per distance given below in section 3.2.

3.2 Surface Locations of Proposed Wells and hook up distances The surface locations of the four proposed wells are as follows:

Projected Coordinate System : WGS – 1984 – UTM – Zone – 43N

Geographic Coordinate System : GCS-WGS-1984

4.0 Conclusion While Asjol-5, Asjol-6 and Asjol-7 are currently under production, these wells have produced very

little of their in-place reserves and now are on decline. Additional wells are required in order to

exploit the field fully. It is important to take advantage current oil price and implement EXPANSION

PROJECT at the earliest. The early implementation of EXPANSION PROJECT and revenue realized is

most beneficial to the Joint Venture and Government of India.

Locations In-fill Development Drilling locations Distances Latitude Longitude

A 23 27’ 27.33” 72 13’30.27” Lay a 4” buried pipeline to 327m to existing Asjol-6 well site manifold

B 23 27’ 10.57” 72 13’ 16.43” Lay a 4” buried pipeline to 795m to existing Asjol-7 well site manifold

C 23 27’ 17.74” 72 13’ 0.03” Lay a 4” buried pipeline to 338m to existing Asjol-7 well site manifold

D 23 27’ 27.36” 72 12’ 43.56” Lay a 4” buried pipeline to 347m to existing Asjol-7 well site manifold

Fig. 1 Geographical Location of the Asjol Block near Mehsana – North Gujarat

Fig. 2 Location of the Asjol Block: Structural Elements and oil and gas fields in North Cambay Basin

Fig. 3 Regional degrees sheet of the area around the Asjol Block

Fig.4 Location of the Asjol gathering facilities [EPS] handed over to HOEC from ONGC

Fig.5 Asjol Oilfield-Existing Project and Expansion Project

Sr. No Parameters Units Soil sample Locations

S1 S2 S3 S4 S5

1 pH pH scale 7.26 7.58 7.7 7.4 7.62

2 Permeability 10-6 cm /sec

1.71 1.64 1.61 1.26 1.45

3 Porosity % 0.35 0.37 0.36 0.32 0.31

4 Cation exchange capacity

Meq/

100 ml

44 62 58 41 53

5 Particle size distribution

Gravel (>2mm)

% 0 0 0 0 0

Sand % 25.16 23.67 51.25 51.5 60

Silt + Clay % 74.84 76.33 48.75 48.5 40

6 Electrical conductivity

µ mhos /cm

286 321 308 217 446

7 SAR mg/gm 0.39 0.95 0.63 1.66 3.13

8 Texture - Silty Clay Loam

Silty Clay Loam

Sandy clay Sandy Clay Sandy Clay

* 5% lechate solution of soil is prepared for pH analysis

S1 Agricultural soil, Katosan Village

S2 Agricultural soil, Dhanpura Village

S3 Agricultural soil, Kanpura Village

S4 Agricultural soil, Lakshmipura Village

S5 Agricultural soil, Martoli Village

Fig.6 Asjol Oilfield-Results of Soil Analysis and study area

Fig.7 Asjol Oilfield-Tentative Rig Layout