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Jul 2015

8Here is a list of all LNG Liquefaction plants and re-gasification terminals in India as of July 2015
Proposed/Under Study
-- Pipava FSRU,Gujarat
Planned
--
Ennore LNG Terminal
-- Ganga LNG Terminal
--
Manglore LNG Terminal
-- Mundra LNG Teraminal
ON-Stream

-- Dabhol LNG Terminal
-- Dahej LNG Terminal
-- Hazira LNG Terminal
Click here
on our Reports Section for more Details
IOC`s Haldia refinery`s hydrocabon losses have begun mounting as some of its pressure safety valves are not working efficiently enough.
8The refinery does have an elaborate flare network for handling flaring requirements: all the main units in the Refinery have individual flare headers which then join up with the main refinery flare gas header. The problem is that the valves connected to flares are susceptible to leakages, thereby resulting in hydrocarbon loss that have significant monetary impact.
8There is no denying that hydrocarbon loss control measures in refineries are a means of controling  operating cost.
8This is done by optimising consumption of fuel and minimising hydrocarbon losses.
8The PSVs control efficiencies in a range of activities, from hydrogen gas to light liquid hydrocarbons such as Naphtha.
8Regular monitoring of the PSVs by Ultrasound Diagnostic devices is required to detect leakages and action is required to be taken in case the readings are not right.
8The refinery is now planning to tackle the problem by replacing some its PSVs
Click here on tenders for more details. Details
ONGC has drawn up a grand plan of drilling 50 exploratory wells in the Tripura Fold Belt covering nine PML blocks, involving West Tripura PML, Sundulari-Agartala Dome PML, Agartala Dome Extn-II &III PMLs, Kunjaban PML, Tulamura PMLs,  GojaliaPML and Manikyanagar- Sonamura PML, at a cost of Rs. 2500 crore.
8Each well is going to cost Rs 50 crore.
8In all, ONGC has 22 potential hydrocarbon bearing structuresand so so far 12 structure has been probed by drilling and 9 structures have been established as gas bearing, while the remaining 5 structures are yet to be probed.
8This entire belt is seen as one of the most prospective in Eastern India.
8Fast and extensive drilling activities are planned with the idea of providing not only uninterrupted gas supply to its gas based power plant at Palatana but also to other consumers of the state of Tripura.
8To cater the gas supply, a sector wise exploration plan has been chalked out that will add significantly to the reserve base of Tripura basin as a whole.
Click here on our Reports Section for more Details
The following additional locations have also been finalized
Agartala Dome Extension-III PML:
8In this area, NLAD-5, NLAD-6 nad NLAD-7 locations are lined up for drilling. The results will provide further exploration thrust for generating new locations.
8Three wells are planned to be drilled in this area.
Kunjaban PML:
8The Kunjaban block falls north of the prolific gas producing field of Agartala Dome.  The re-processing of the available 3D seismic data has been undertaken for G&G studies for generating new locations -- NLKU-1, NLKU-2, NLKU-3, NLKU-4, NLKU-5, NLKU-6  and NLKU-7 -- in the area.
8A total of 7 wells will be drilled in this area.
Tulamura PML:
8The Tulamura PML falls in the southern part of Tripura Fold Belt and covers the central part of the Tulamura structure. New locations, NLTM-2 and NLTM-3, will be generated based on ongoing G&G studies.
8Two wells will be drilled in this area.

Tulamura PML (Additional):
8The Tulamura PML (Additional) falls in the southern part of Tripura Fold Belt, in southern continuation to the Tulamura PML.In this block NLTM-4 and NLTM-5 locations are available and lined up for drilling.
8New 2D seismic data is planned for acquisition and more new locations will be generated in this block.
8Two wells will be drilled in this area.

Gojalia PML:
8The Gojalia PML block covers the Gojalia structure in the south of Tripura Fold Belt. The southern part is covered by new 2D seismic campaign and the data has been processed.
8New locations NLGO-1, NLGO-2, NLGO- 3, NLGO-4 and NLGO-5 will be generated based on ongoing G&G studies in this area for further exploration.
8Five wells will be drilled in this area.
Manikyanagar-Sonamura Extn-I:
8The PML block covers the central and southern parts of Rokhia Anticline, New locations NLRO-1, NLRO-2 and NLRO- 3 are to be generated in this block for enhancing the reserve base of Tripura.
8A total of 3 wells will be drilled in this area.

Click here on our Reports Section for more.

Details
8Wholesale prices for LPG, petrol and diesel rose by 0.6% in June 2015: The Wholesale Price Index (WPI) for the major group "fuel and power" rose by 0.6 percent to 191.0 (provisional) from 189.8 (provisional) for June 2015, due to higher price of aviation turbine fuel (9%), petrol (2%) and kerosene, lignite, high speed diesel and bitumen (1% each).
 --The group "fuel and power" has a weight of 14.91% in the WPI.
 --The commodities which are covered in the group "fuel and power" are liquefied petroleum gas (LPG), petrol and high speed diesel (HSD).
 --Along with the WPI and the rates of inflation for LPG, petrol and HSD for June 2015, the website also carries similar data for June 2014 and year-on-year data (2015-16 and 2014-15).
 --The trend of rate of inflation for LPG, petrol and HSD during the last six months is also carried.
8
IGL acquires 50% shares of MNGL: Indraprastha Gas Ltd (IGL), in its second and final tranche, has acquired another 25 lakh shares of Maharashtra Natural Gas Limited (MNGL) at a price of Rs 38 per equity share.
 --Before this, the company, vide its letter dated March 30, 2015, had informed about its acquisition of 4.75 crore shares of MNGL, in the first tranche, at the same price of Rs 38 per equity share from certain financial investor shareholders of MNGL.
 --Presently, IGL holds 5 crore shares (constituting 50% of present paid-up capital) of MNGL.
Details
By executing the development drilling project for 406 wells ONGC would produce oil at as follows:
  Year        -      Quantity of Oil Generated 
2015-16     -      5898 meters cube per day
2016-17     -      5754 meters cube per day
2017-18     -      5784 meters cube per day
2018-19     -      5649 meters cube per day
2019-20     -      5677 meters cube per day
2020-21     -      5497 meters cube per day
Click on our Reports section for more Details
The website carries here, for reference purposes, the Quarterly Review Meeting (QRM) schedule for all NELP and pre-NELP blocks, including nominated fields and CBM blocks.
 8The QRMs are conducted by the DGH on a quarterly basis.
 8A total of 133 meetings will be held to cover each block and field.
 8The meetings have been spread over a period of 25 days, started yesterday (July 13, 2015), which will go on upto August 6, 2015.
 8Along with the date, location and time of the meetings, the details are also carried in terms of the name of the block, the operator, the round under which the area was awarded and the type of block (exploratory or discovery).
 8The DGH has requested the operators to confirm the schedule and keep track of any changes.
 Click here for detailed schedule
Details
The oil demand in India is expected to go up from 3.79 million barrels per day (mb/d) in 2014 to 3.92 mb/d in 2015, according to OPEC's Monthly Oil Market Report.
 8
In its previous prediction, OPEC had estimated the oil demand in India at 3.91 mb/d in 2015. In other words, the oil demand is now expected to go up by 10,000 barrels/day during the current year.
 
8
In Q1, 2015, the demand was at 4 mb/d, but in Q2, 2015, it did well than expected at 3.94 mb/d, against the earlier estimate of 3.91 mb/d. In Q3, it is expected to go down to 3.76 mb/d, finally touching 3.99 mb/d in Q4, 2015.
 
8
OPEC believes that China’s growth will slow to 6.5% from 6.9% in 2015, while India is forecast to grow even faster at 7.7% in 2016, compared to 7.5% in 2015. The growth forecast for 2015 remains unchanged at 7.5%.
 
8
The upside potential to next year’s forecast is mainly coming from OECD economies and, to some extent, India, believes OPEC.
 Click here to access the OPEC's Monthly Oil Market Report
Details
The composite works for laying of the BPCL's LPG transfer pipeline (both onshore and offshore part) from BPCL and HPCL's Mumbai refineries to the Uran bottling plant has finally been completed.
 8The project was expected to be completed by the second half of CY 2014, but missed its target because of delays in getting the approval from the Jawaharlal Nehru Port Trust (JNPT) and signing of the agreement with the Mumbai Port Trust (MbPT). There was also a delay in getting the requisite forest clearance.
 8The composite work has been executed by Punj Lloyd.
 8The project envisages laying of a 28 km pipeline long pipeline from (12 km offshore and 16 km onshore), along with a provision of 3 x 900 MT Mounded Storage Vessels (MSVs) at the company's Uran LPG plant.
 8The pipeline is being laid to transfer LPG from BPCL’s and HPCL's Mumbai refineries to the Uran bottling plant to significantly reduce the road movement of the product being currently undertaken from their refineries.
 8The pipeline portion of the project costing Rs 229.59 crore will be shared equally between BPCL and HPCL.
 8The MSVs are expected to cost around Rs 47.24 crore and will be on BPCL’s account.
Details
The government is preparing a road map to accelerate the use of bio-fuel by creating a synergy between different ministries and other policy organs. As part of this initiative, the petroleum ministry has set up a working group, headed by former Chairman of the Karnataka state Bio Fuel Development Board, Y B Ramakrishna.
 8As a launch pad, a national seminar -- dubbed “Bio Fuel Programme in India - The Way Forward” -- was organized by the petroleum ministry recently. Besides the inaugural session, there were sessions on bio-diesel, bio-ethanol and presentations on new technologies and initiatives in the field.
 8Addressing the seminar, the petroleum minister, Dharmendra Pradhan, stressed upon the need to discover our own model which will take various factors prevalent in Indian society in consideration in implementation of the bio-fuel initiatives.
 8The sessions on bio-diesel and bio-ethanol focused on issues and hurdles being faced by the sector and dwelled on how to overcome these hurdles for effective implementation of the blending program across the country. The session on new technologies and initiatives looked at various resources such as agriculture residues, municipal solid waste and plastic wastes which can be converted into clean fuels. India imports fossil fuel, comprising crude oil, worth $138 billion annually.
 8The seminar also focused on accelerating the blending program in the country and draw up a road map to reduce the consumption of fossils fuels by replacing it with locally produced bio fuels thus reducing the foreign exchange out flow, generate rural employment and protect environment.
Details
The Asian Development Bank (ADB), in September 2014, sold its entire 5.2% stake in Petronet LNG Ltd. (PLL) for Rs 714.5 crore via block deals.
 8The ADB sold 3.9 crore shares of India’s largest liquefied natural gas importer to CitiGroup and HDFC Mutual Fund at Rs 183.20 per share. While Citigroup Global Markets Mauritius Pvt. Ltd. bought 88 lakh shares, HDFC Top 200 Fund took 37.70 lakh shares and HDFC Equity Fund purchased 46.70 lakh shares.
 8The stake sale came after a long dispute between Petronet’s principal promoters and the firm’s management led by its Chairman, who is also the petroleum secretary.
 PLL’s promoters -- IOC, ONGC, GAIL and BPCL -- were originally interested in buying ADB’s 5.2% stake but the company management was opposed to it as it would have led to PSU holding crossing 50% that would turn the LNG importer into a government company.
 8However, the petroleum ministry refused to give the go-ahead to public sector oil companies to acquire the ADB's stake to keep Petronet a private firm, even though the PSUs had a right of first refusal (ROFR). The petroleum ministry was of the view that any aggregate government/PSU participation beyond 50% in PLL would deprive the company the desired flexibility to operate in the dynamic LNG import market. 
 8The board of all the four promoter companies had okayed exercising the ROFR to pick stake in PLL.
 8Notably, PLL is registered as a private company even though public sector oil firms hold 50% stake and the petroleum secretary is its chairman.
 8As of June 30, 2015, GDF International (GDFI), a wholly owned subsidiary of Gaz de France, a French national gas company, held 10% in PLL. The other entities holding stake are: T Rowe Price (3.62%), Franklin Templeton (1.5%), Smallcap World (1.39%), CLSA Global Markets (1.22%) and Government Pension Fund Global (3.19%), among others.
 Click here for more
Details
The website, also carries here, for reference purposes, the shareholding pattern of the following companies (as on June 30, 2015):
 8Oil India Ltd
 8IOC
 8Cairn India
 8Essar Oil
 8Aban offshore
 8Cals Refineries
 8Dolphin Offshore
 8Nagarajuna Oil Refinery
 8OCTL
 8Great Eastern Shipping
 8Asian Oilfield Services
 Click here for more
Details
ONGC has proposed to drill a total of 22 exploratory wells in its three NELP-IX Block (CB-ONN-2010/1, CB-ONN-2010/6 and CB-ONN-2010/9) in Gujarat at a cost of Rs 350 crore.
8ONGC intends to drill the wells to a depth up to 3000 meters which would typically take 30 to 35 days for each well, however drilling period may increase depending on well depth.
8Exploratory drilling will be carried out to test the occurrence of hydrocarbons in the already productive North Cambay Basin and assess its commercial viability.
8As the drilling operations will be conducted round-the-clock, each well will take around 30-35 days to drill. The drilling period, however, might increase depending on the depth of the hydrocarbon bearing formation and the geological conditions.
8Conventional rotary drilling methods will be used and the drill sites would be demobilized after completion of drilling activities, leaving a limited footprint covering the well head and fence in place, pending future development operations.
8ONGC will use ecologically sensitive water based mud for drilling.
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The block CB-ONN-2010/9 is a recycled block carved out from the relinquished northern part of the NELP-II block CB-ONN-2000/1 awarded to GSPC (Operator with 50% PI) and GAIL (50% PI).
8The block is bounded by NELP block CB-ONN-2009/7 from north, by NELP block CB-ONN- 2000/1 from east and by NELP block CB-ONN-2010/10 from south.
8Three exploratory wells were drilled during earlier exploration plan and hydrocarbon indications were found only in one well.
8However, a part of the block area, which has now been awarded to ONGC, had to be relinquished in line with the PSC provisions.
8The NELP-II block CB-ONN-2000/1 is currently operated by GSPC. The block is estimated to hold 2.11 MMBBLS of original oil in place (OIIP).
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Details
All the three blocks CB-ONN-2010/1, CB-ONN-2010/6 and CB-ONN-2010/9 were awarded in March, 2012 to ONGC with 100% participation interest under NELP-IX bidding round. The block-wise details are:
8CB-ONN-2010/1: The block is located in the Tharad sub block of the northern most Sanchor-Patan Tectonic block of Cambay Basin. The block is bound by the Banas fault in the south and Sanchor fault in the north. Geochemical studies of the wells, Wara-1 and Sampra-2, which were drilled earlier by ONGC, indicated the organic carbon percentage ranging from 1.2 to 2.7 and evaluation of source sediments shows Olpad and Cambay shale formation of Sanchor-1 along with Tarapur shale along with shales of YCS and Kalol formation which have an excellent source potential for hydrocarbons. The area of the block is 782 sq. km.
8CB-ONN-2010/6: The block, measuring 39 sq. km, is divided into two parts. The western part of the block, that is Part-A, lies North of the Rupal ML and east of Paliyad- Kalol-Limbodra ML. The eastern part of the block -- Part-B -- lies north of the NELP block CB-ONN-2005/4 and in the north it is surrounded by the Limbodra Ext-I ML and the Charada- Mansa Ext-I PEL. Five exploratory wells have already been drilled with TD of 2250 m in the block before it was put up for bidding under NELP regime.
8CB-ONN-2010/9: Measuring 120sq.km, this block is located in the southern part of Ahmedabad-Mehsana District. The block is surrounded by many producing oil and gas fields like Kalol, Sanand, Ahmedabad, Nawagam, Dholka, Kanawara, Cambay and North Kathana located in the North East, East and South East of the block. A small producing gas field, the Balol field, is located near the block area to the Southeast.Three exploratory wells were drilled before it was put up for bidding in the NELP round and hydrocarbon indications were found only in one well.
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Details
ONGC has now increased the number of development wells to be drilled from 138 to 406   in Area II and Area IV of the Ahmedabad Asset in Kheda, Gandhinagar and Ahmedabad districts of Gujarat.
8Cost of drilling a vertical well is Rs. 4 crore while that of horizontal well is INR 12 crore, hence 390 vertical wells and 16 horizontal wells that are planned to be drilled will carry a total price tag of  Rs.1752 crore.
8The increase in wells is mainly done after ONGC updated the reservoir data for the Gamij field, which comes under Area IV of Ahmedabad Asset.
8Owing to this updation, ONGC now wants to monetize the Gamij Field's excellent potential.
8So in addition to 52 wells, an additional 268 wells will be drilled in Gamij field.
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Drilling of these development wells which includes horizontal / hi-tech wells in addition to conventional wells will not only arrest the natural decline in field production but in fact is expected to augment production.
8Dispersion modeling has been carried out for electric rig of 1250 KVA for some of these wells.
8Depths of drill wells will be in range of 800 to 2000 meters and water based mud will be used for drilling. This would typically take 15 - 35 days.
8Power requirement for drilling operation will be generated by four DG sets of 1250 KVA (one on stand by), each DG set will consume 290 liters/hours of high speed low sulphur diesel.
8It is expected that 1 barrel per well of used oil will be generated during drilling operations  which will be disposed off through authorized recyclers.
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GAIL intends to install a new Metering SKID of of 0.50 MMSCMD Capacity at Arkay (Rameshwarm) Gas Terminal at Cauvery Basin, Tamilnadu.
8The Arkay Gas Terminal is designed for maximum operation pressure of 12.0 Kg/Cm2.
8The project will comprise of filtration, pressure reduction, metering and flow controlling units with all associated piping, as well as mechanical and electrical, instrumentation along with civil works at the existing Metering Skid of 0.10 MMSCMD.
8The existing metering skid at the terminal will have to be decommissioned, dismantled and removed from the site and transported to the GAIL Dispatch Terminal 
8Dismantling of inlet & outlet connections of the existing Metering Skid and cutting and modification of the inlet and outlet connections in a manner that it is suitable for the installation of the new Metering Skid will be part of the job.
8Click on Tenders section for more. Details
The fertilizer industry is today looking at the public and not the private sector for supply of domestic gas in the future. But will greater availability of gas make any difference to fertilizer companies?
8The RIL-BP combine has put its gas development plan on hold pending a higher price for gas but ONGC is going ahead with a massive Rs 53,000 crore development in the Krishna-Godavari deepwater block KG-DWN-98/2.
8Work is in progress and the company claims that gas will become available in mid-2018. 
8The total output can go up to as much as 30 mmscmd from both fields but output declines rapidly subsequently. 
8The gas will be evacuated from the Odalarevu onshore terminal through the 20-inch, 35.5 km long pipeline for sale to GAIL.
 8Already, gas from ONGC`s offshore fields -- G-1, Vasishta and S-1 -- is currently processed at the Odalarevu terminal and more of its is coming in from the KG-DWN-98/2.
Comment: ONGC is pumping in money into the block and if the 2018 production schedule seems to be too ambitious, it can at best be put off to 2019 but there is no denying that large quantities of additional gas will be produced. This gas will be available at current domestic prices even though ONGC has made it clear that it will be looking for a premium as was promised by the government for deepwater gas. The government on the other hand has said that the premium is for new gas and not for production from blocks where permissions were already obtained. The BP-RIL combine has refused to go ahead with its D-6 development pending a higher price for gas but ONGC is marching ahead on the fond hope that at some point the gas price will be revised upwards. For the fertilizer industry, the pooling of gas prices has taken the joy out of hearing the news that additional gas production will be available from domestic sources. Since LNG prices are down, and if ONGC is given a higher price for its gas, then the pool price will perhaps remain the same or come down marginally. What is more, gas prices are a pass through, except in a situation where the government is unwilling to pay the subsidy bill in time, when the industry will feel the pinch of being forced to go to the bank for higher working capital limits. Details
ONGC is in the midst of a prgramme to drill a total of 45 development wells in the Krishna-Godawari deepwater block KG-DWN-98/2, at a whopping cost of Rs 53,085 crore, which also includes setting up a Floating, Production, Storage and Offloading (FPSO) system and a fixed offshore platform.
8The E&P major is also installing subsea production systems (SPS) and subsea pipelines connecting to the onshore terminal for custody transfer to GAIL.
8The drilling depth of the wells will be between 2,000 to 3,000 meters from the sea bed. The water depth in the area ranges from 320 m to 3100 m.
8Each well will take around 90-100 days to drill. Drilling is to begin in 2016.
8As this block is located in deep and ultra-deep water, three semis and two drill ships with Dynamic Positioning (DP) and specialized deep water technology tools will be used for drilling activities.
8Then again, because of extreme temperature and pressures at these depths, special drilling muds will have to be used to prevent formation of hydrates at the sea bed level and to combat dual gradients.
8The NELP-I offshore block KG-DWN-98/2 is located 22-45 kms off the coast of Godavari Delta in the east coast of India.
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Details
8Details of product storage capacities are as follows:
-- MS (Motor Spirit) 56620 KL
-- HSD (High Speed Diesel) 60115 KL
-- ETHANOL 200 KL
-- SLOP ( Mixed Products) 100 KL
-- Total 117035 KL
8The proposed terminal will have following tanks:
-- Six above the ground vertical petroleum product tanks
-- Two above the ground horizontal petroleum products tanks
-- Four petroleum underground tanks
-- Two water tanks
Click here on our Report section for more. Details
While the total oil initially in place (OIIP) in the Krishna-Godawari deepwater block KG-DWN-98/2 is estimated at 106 million cubic metres (MMm3), production of only 26.71 MMm3 is envisaged during the 2019-2031, period.
8Then again, the gas initially in place (GIIP) is estimated at 69.57 BCM, of which only 51.33 BCM can be produced during the 2018-34 period.
8The offshore part of the KG Basin categorized as shallow and deep waters, covers the area of Srikakulam coast in the north to off Nellore in the south and is considered as highly prospective for hydrocarbon exploration.
8The discovery area of the block has been split into two: the Northern Discovery Area (NDA) and the Southern Discovery Area (SDA). While the NDA is spread over 3,800 sq km, the SDA covers an area of 3,494 sq km.
8The Northern Discovery Area (NDA) is further divided into two primary production areas: Cluster-1 and Cluster-2. Cluster 1 is a predominantly gas-rich area, located in the north of NDA, which includes fields D, E and G4. The nominated Godavari PML block also falls in this area. Cluster 2 area, located in the south of NDA, has both oil and gas and includes oil fields (Cluster 2A) A2, P1, M3, M1 and G-2-2. The gas fields (in Cluster 2B) are R1, U3, U1, and A1.
8Exploration efforts carried out so far in the block have led to discovery of hydrocarbons in the entire block and established the Northern Discovery Area (NDA) with significant discoveries like Annapurna (R-1), Kanakadurga (G2P1) and Padmavati (M1) and the Southern Discovery Area (SDA) with UD-1 discovery.
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Details
The produced gas at the Krishna-Godawari deepwater block KG-DWN-98/2 (Cluster-1 fields) will be evacuated to the Odalarevu onshore terminal through the 20-inch, 35.5 km long pipeline for sales to GAIL.
8The gas from offshore fields -- G-1, Vasishta and S-1 -- is currently processed at the Odalarevu terminal through the existing 10” & 14” export flow line crossing the shore at the land fall point.
8The 20” & 22” gas export flow lines from the KG-DWN-98/2 fields will also be crossing the shore at the same land fall point, passing in the same corridor parallel to the existing 10” & 14” export flow lines, where in the production from 98/2 field will be processed at the facilities to be created in the existing onshore terminal.
8From here, the well fluid will be transported to the GAIL custody transfer meter point for sales through subsea pipelines (20” pipeline from Fixed Platform and 22” Pipe line from the FPSO) up to the landfall point and then further to the MEG (Methyl Ethylene Glycol) recovery plant located in the existing Vashishta and S1 plant at the Odalarevu Onshore plant.
8The produced oil from the Cluster-2 fields will be taken on to the FPSO through the 18-inch, 21.5 km dual pipeline where it will be separated and the stabilized crude will be transported through sea tankers and dehydrated gas will be evacuated on to the Fixed Platform and then to the Odalarevu terminal for sales to GAIL.
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Details
The break-up of costs are as under:
8Full field development (capex): Rs 31,782 crore
8Full field development (non-capex): Rs 4,986 crore
8Drilling cost (capex): Rs 12,810 crore
8Drilling (non-capex): Rs 3,510 crore
8Total cost of the project: Rs 53,058 crore
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Details
The following details are also carried about the project:
8Geological setting of the deepwater block
8Map showing the proposed drilling locations
8Drilling process to be adopted
8Deepwater drilling technology to be used
8Deepwater well abandonment process to be followed
8Subsea equipment, pipelines and architecture
8Offshore processing facilities
8Risks in exploratory drilling operations
8Risk mitigation measures
8Response of marine ecosystems to oil spills
8Oil spill contingency plan
8H2S protection in drilling operations
8Coordinates of the proposed locations
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Details
Bharat Petroleum Corporation Limited( BPCL) will set up al storage and distribution facility for petroleum and lube products at Ennore in Tamil Nadu at a cost of Rs. 369 crores.
8The petroleum storage capacity will be 1,17,035 KL, which will be fed from the company's Mumbai and Kochi refineries through ocean tankers.
8The received petroleum products will be dispatched to the entire state of Tamil Nadu and the northern parts of Andhra Pradesh through tank lorries.
8In addition to that, laying of  a 16 inch diameter pipeline for MS and  20 inch diameter pipeline for HSD from the adjacent HPCL installation has also been proposed.
8Project cost includes  Rs. 144 crore for construction and Rs. 225 crore for plant and machinery.
8The proposed new storage and allied facilities are expected to be completed by November, 2016.
Click here on our Report section for more. Details
Now that clearencs are all in place, ONGC has begun work at the North Karanpura Coalbed Methane Block (NK-CBM-2001/I) in Jharkhand.
8A total of 74 wells are proposed, which includes 68 development wells and 6 assessment wells.
8Rotary Drilling will be used for drilling of vertical sections of the wells whereas horizontal portion of horizontal  wells be drilled using under- balanced drilling ( UBD) technology.
8The depth of drilling will be between 1000 meters and 1500 meters.
8There will be 6 Gas Collecting Stations (GCS), gas and water produced from each production well  will be separated within the well, while water and gas would be collected in their respective gathering stations.
8Each GCS will have a gas processing capacity of 0.15 MMSCMD
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Details
8Energy and fuel consumption in the operations of Coal Bead Methane exploration and production will be as follows:
8Drilling
-- Fuel: 36 KL per month during drilling
-- Energy consumption : Approximately 50 MWH per month
8Workover
-- Fuel: 3 KL per month
-- Energy consumption : 430 HP Rig engine +33 KV generator set
8Testing
-- Fuel: 5 KL per month
-- Energy consumption: 100 KV DG set
8Stimulation
-- Three sand pumps of 2250 HP each
-- Fuel consumption: Average 3 KL per job
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There are vast resources of methane available in India, but until commercial production has been demonstrated the reserve potential is largely unknown.
8Reserve estimation of CBM requires significant amounts of drilling of boreholes in coal fields, which is obviously expensive, and makes exploration very capital intensive.
8Till now 26 blocks have been awarded comprising 8 Blocks under CBM-I, 8 Blocks under CBM-II and remaining 10 Blocks under CBM-III.
8CBM potential of all the 26 CBM blocks is estimated at 1464.37 BCM.
8The Central Institute of Mining and Fuel Research (CMRI) has carried out extensive investigation on the determination of methane content of several coal beds.
8Methane content of coalbeds upto a depth of 400m has been found to be generally low (<2m3/t) except in R VIII seam, Ghusick area of Raniganj Coalfields where methane  content was estimated to be 4.27 m3/t at a depth 260 m.
8High concentration of methane has been observed in coalbeds at Chasnala, Amlabad, Sitanala and Parbatpur area, located in the south eastern part of Jharia coalfields in Jharkhand.
8The highest value of 14.93 m3/t of methane content has been measured at XIV-A seam in Parbatpur block at a depth of 795 m from the surface.
8The coal seams at greater depths (>500m) in the East Bokaro and North Karanpura Coalfields also contain substantial reserve of the gas. Methane content of coal seams in the Asnapani block in East Bokaro coalfields (far away from mining area) is about 7.0m3/t at depth of 600m.
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CBM gas, is a clean-burning fuel, considered more environmentally friendly than oil, coal and even conventional natural gas.
8The combustion process of methane produces no particulates and only about half of the carbon dioxide associated with coal combustion.
8It contains few, if any, impurities and therefore requires minimal processing.
8In many cases it can go directly from the well to consumer once trace amounts of water and CO2 are removed.
8CBM consists of pure methane. It may also contain carbon dioxide (CO2) and nitrogen (N2).
Click here on our Reports section for more. Details
As part of Paradip Refinery Project, IOC's Oil Jetty alogn with associated facilites will finally carry a price tag of Rs. 811 crore.
 8A single berth is provided for loading of products and unloading of crude oil.
 8One crude pipeline, eight product pipelines (Motor Spirit, High Speed Diesel, Naphtha, Dual Purpose Kerosene, Propylene and Propylene vapour) and 3 utility pipelines are being laid from the jetty to the pipeline.
 8Two Unloading Arms (for Crude) and eight Loading Arms (for product) are also being installed at the jetty top.
 8Average parcel size for products is 62,000 Dead Weight Tonnage with berth turned down time of 24 hours while for Crude unloading 1,00,000 Dead Weight Tonnage with berth turned down time of 26 hours have been accounted for.
Details
Basic details are as follows:
-- South Jetty is 361 metre in length,
-- Dimensions of utilities at the Service Platform are 55m x 30m
-- Two Berthing Dolphin (40m x 16.5m)
-- Four Mooring Dolphin (16m x 16m)
-- Four High Volume Long Range Monitors (HVLRM)
-- Four Jumbo Curtain System
-- Six Main FW pumps (1,000 cum/hr)
-- Four Jockey pumps (100 cum/hr)
-- Two Hydraulic Gangway Tower
-- The South Oil Jetty will enable Paradip Refinery to import of crude oil and export  products. Details
In the business as usual case, the first gas was expected only by mid-2021 but what the company is now doing is work simultaneously on a large number of project activities to get it to commission in 2018.
 8Even though 2018 may sound like too ambitious a timeline, the fact that it is being attempted is really commendable.
 
8Work is on for pre-FEED, FEED, hiring of drilling rigs, drilling and completion of wells (a well completion agency is in the process of being hired), procurement of SPS items and umbilicals, sub-sea tie-ins and commissioning, flow assurance consultant, hiring of an FPSU, facilities for onshore terminals and others.
 
8The geophysical survey work is to be completed and five rigs are meant to be hired, three of them semis and two DPs
 
8Procurement processes have been activated for bits, casings and conductors.
 
8Drilling is meant to begin from early 2016.
 
8Framework agreements are entered into with SPS vendors for well heads, manifolds, umblicals, sub-sea x-mass tress.
 
8The FDP is currently under submission to the DGH for approval.
 According to ONGC, work is going on at a furious pace.
Details
The UD-1 ultra deepwtaer discovery has massive potential but development has been put on hold because of lack of suitable technology.
 
8
The discovery has been made at a water depth of 2,841 metres in the Southern Development Area of the block and the expected GIIP is about 80 BCM of Non-Associated Natural Gas (NANG).
 
8
Once developed, a peak gas production of about 15 MMSCMD is expected from the southern discoveries in the field.
 
8
Till now ONGC had incurred an expenditure of $429.35 million in the SDA alone.
 
8
Globally, according to ONGC, there is no demonstrable technology implementation analogues available anywhere in the world in water depths of 2,841 metres and beyond. And if at all there is any technological break-through, it is not available commercially.
 
8The E&P major now wants to retain the discovery area until emerging technology is identified to develop the UD-1 gas field.
Details
The Rs 56,000 crore investment that ONGC is pumping into the block is meant to yield a significant quantity of oil and gas.
8In the Cluster-1 field itself, peak gas production is expected by year 3, at an impressive 14.51 mmscmd, but then on the decline is rapid, going down to around 1.4 mmscmd in the 10th year.
8Cluster 2-A is an oil field and the peak production rate in the first four years of production hovers around 4 MMTPA
8Cluster 2-B will provide a mixture of free and associated gas, with a peak production of around 18 mmscmd in the second year itself, going down to around 5 mmscmd by the 10th year.
8Clearly, there is a whole lot of gas -- at around 30 mmscmd -- coming out in the first two to three years of the commissioning date.
8ONGC is working furiously to ensure that first gas comes out in mid-2018 and first-oil by mid 2019.  Details
Based on the maximum off take from the Refinery and the average ship sizes,  212 ships can be loaded from the South Jetty per year.
8Associated facilities for this Oil Jetty includes:
-- One Sub-station
-- Eight Custody Transfer Metering System (8 nos.),
-- Vapour Recovery System,
-- Ten Marine Loading Arms on Jetty with capacity- varying from 3,930 cum/hr to 180 cum/hr,
-- Nine Scrapper Launcher & Receiver
-- Digital Control System.
  Details
 Indian Oil Corporation Ltd ( IOCL) is soon expecting clearance for its proposed  capacity expansion  from 7.5 MMTPA to 8.0 MMTPA at Haldia refinery in West Bengal at a cost of Rs. 3215 crore.
 
8The refinery now has two Crude Distillation Units (CDU) with the processing level of 7.5 MMTPA.
 
8Expansion is done by revamping the existing Crude Distillation Unit( CDU-I) from 3.3 MMTPA  to 3.8 MMTPA and  Vaccum Distillation Column (VDU-I) from 1.5 MMTPA to 1.7 MMTPA.
 
8To produce substantial quantity of Furnace Oil, a distillate yield improvement project is proposed, wherein units such as the Delayed Coker Unit (1.7 MMTPA), the Coker Gas Oil Hydrotreater Unit (1.4 MMTPA) and the Coker LPG treating Unit (70 TMTPA) are to be involved.
 
8In addition to that, refinery proposes to install a Feed Preparation Unit (FPU) for CDWU. The estimated capacity of the proposed UCO Vacuum Fractionation Unit (Feed Preparation Unit, FPU) shall be 650  TMTPA.
 
8Click on our Reports section for more. Details
GAIL plans to meet the September 2017 deadline for hiring freshly built LNG carriers have now come unstuck as it has not been able to award the contracts as yet.
 8It normally takes around 30 to 36 months for these ships to built, and so the timeline is now gone. The bidding date had put off several times on account of poor response.
 8The entire tendering process was required to be concluded latest by April 2015 as the contractual window for LNG offtake was meant to begin from the fourth quarter of 2017.
 8
GAIL has a deal for importing 2.3 MMTPA of LNG from the Dominion Cove Point LNG terminal located at Lusby in Maryland for a period of 20 years.
 
8
Exports are meant to start from September 2014.
 
8
Permissions are already available for import of 3.5 MMTPA of LNG from the Sabine Pass terminal in Louisiana, USA, and deliveries are scheduled to start within the window period of March 2018 to August 2018.
 
8GAIL had sounded to alarm bells earlier, claiming that it may end up with a take or pay liability of a whopping $1 billion per year on an FOB price $3.5 /MMBTU if it does not keep the September offtake deadline for LNG out of Dominion Cove.
 8Besides, there would be downstream liabilities pertaining to supply or pay on account of any default by GAIL.
 8Clearly contingency arrangements will have to be done, including hiring ships that are available for the period it waits for the delivery of the new ships.
Details
From mid 2014 till now, the price of crude has dropped from $100 to half that level and many had thought that the shale oil and gas industry in the US would collapse.
 8But this has not happened. Only five firms out of the hundreds in the shale-drilling business have gone bankrupt.
 8American oil production has actually risen slightly, reaching 9.6m barrels per day in June. Output of shale gas, the other component of America’s fracking revolution, is holding up, too.
 8Clearly, Saudi Arabia`s gamble of keeping prices low until the bottom is knocked off the US shale oil and gas business had not paid off yet.
 8Shale oil firms have become more adept at adopting to the new environment by cutting costs. The industry has proved its entrepreneurial spirit and its skill in both geological and financial engineering; and its new investments are likely to earn better returns than past ones.
 8The world can now look forward to low oil and gas prices for some more time to come.
Details
GAIL is trying hard to sweeten the deal for foreign shipbuilders to a build a third of the LNG carriers that it intends to charter hire for transporting 2.3 MMTPA of LNG from its Dominion Cove Point terminal in the US.
 8The sweeteners include a 49% equity in each of the locally made carriers by Indian entities -- of which 36% is to be owned by state owned entities and 13% by local shipyards -- and a five-year timeframe to get the ships out from the date of placement of orders.
 8A reluctant GAIL has been coerced by the government under its "Made in India" slogan to postpone the tender until a deal is hammered together for Indian shipyards.
 8A fresh tender is still to be floated but GAIL claims that it had been able to coax Samsung Shipyard to enter into an understanding with Cochin Shipyard; Hyundai Heavy Industries with L&T Shipbuilding; and Korea`s Daewoo Shipbuilding with Pipavav shipyard.
 8But there is still many a slip between the cup and lip before the deals come through as India lacks both the basic engineering and material base for for building such sophisticated vessels.
Details
No additional power generation facility is envisaged under the proposed projects. Instead, Haldia Refinery has initiated a proposal for importing 40 MW power from state grid (WBSEB) for usage in the refinery in the post-project scenario.
 
8The existing and the proposed scenarios, pertaining to the power requirement are as under:
 
Existing: 60 MW
 FPU: 0.74 MW
 DYIP: 29 MW
 CDU-I/ VDU-I Revamp: 0.6 MW
 TOTAL: 90.34

 
8Total of water requirement of 635 m3/hr. (550 m3/hr. for DYIP and  85 m3/hr. for FPU & capacity expansion), which will be met from the existing water supply system of the refinery.
 
Click on our Reports section for more. Details
Haldia Refinery typically produces a total of around 230-240 TMTPA of LOBS, of which approximately 50-55% is of API Gr-II variety and there is no facility for API Gr-III LOBS production in the refinery.
8The yield of solvent extraction units is also 50% and the vaccum distillate requirement is high, thus lowering refinery distillate yield.
8Currently, the refinery has commenced production of API Gr-II LOBS production through the existing CDWU by processing admixture of bulk UCO and requisite amount of raffinate in order to meet the minimum feed ‘S’ and the kinematic viscosity of final Lube products.
8Though it was instrumental in reduction of black oil pool volume, certain drawbacks were there.
8To extract the complete lube potential from UCO, bulk UCO needs to be vacuum-fractioned into waxy heart-cuts for onward processing inthe  CDW to meet final LOBS products’ specs.
8Processing of neat UCO in CDW is not feasible asthe  function of Hydrotreater reactor catalyst will be lost due to Sulfur leaching from active  metal sulfides. Hence, the CDW shall need minor admixing of raffinate in the heart-cut streams.
8With the implementation of proposed facility, it is envisaged that Haldia Refinery shall be able to produce 100% Gr-III LOBS (of 70N/150N/500N grades).
Click on our Reports section for more. Details
 Haldia Refinery processes about 72% High Sulphur (HS) crude that is needed to produce LOBS. The processing of HS crude results in higher black oil generation.
 
8In absence of any processing facility to upgrade black oil, it is converted to low value products like High Sulphur Furnace Oil (HSFO) and Bitumen, thereby resulting in lower distillate yield.
 
8A Delayed Cocking Unit ( DCU) will be adopted for the Haldia Refinery which would enable black oil upgradation, beside processing increased quantity of High Sulphur crude as well as heavy crude.
 
8Here is a list of projects:
 
Delayed Coking Unit (DCU): 1.7 MMTPA
 Coker Gas Oil Hydrotreater Unit (CGO HDTU): 1.4 MMTPA
 Coker LPG MEROX Unit:: 70 TMTPA
 Sulphur Recovery Unit (SRU): 80 TPD
 Amine Treating Unit (ATU): 260 TPH
 Sour Water Stripper (SWS): 65 TPH

 
8Hence, this project will bring higher profitability due to improvement in yield of valuable distillate products and eliminate HSFO output due to its declining demand, considering stricter environmental norms and future projection of natural gas availability in the country.
 
8Click on our Reports section for more. Details
The capacity increase shall be achieved by doing some modifications in the existing units.
8The major ones envisaged as under:
8CDU-I revamp
-- Desalter change
-- Modification in feed preheat network
-- Modifications in furnace
-- Prefractionator column and Main Fractionator column internals change and nozzles’ augmentation
-- Replacement of pumps
8 VDU-I revamp
-- Main Vacuum Fractionator column internals change & nozzles’ augmentation
-- Replacement of pumps
-- Modification in preheat network
Click on our Reports section for more. Details
Why is GAIL willing to provide a five year period to Indian shipyards to deliver LNG carriers?
 8The gas major is only will to provide a 30-month window to the Korean shipbuilders to build the carriers.
 8This is because a survey as shown that none of the Indian shipyards are capable of delivering anywhere before the five year deadline.
 8L&T Shipyard for example have to acquire the necessary licensing for the cargo containment system as insisted by GAIL. It has to put together the gravity and wet containment dock, build new steel fabrication shops, and put together cryogenic shop installations and facilities for gas trials. All of this will take time.
 8What is more, L&T will require at least 22 months for creating such infrastructure and acquiring capabilities and licensing from its foreign collaborato.
 8The five year period is in fact the minimum time required.
 8The Pipavav shipyard, too, will require at least 12 months from the time of decision, for creating such infrastructure and acquiring collaborations and licenses.
 8Given the shoddy track record of Indian shipyards, the five year timeline may get exceeded even if the Koreans are willing to help out.
Details
Clearly heavy pressure is being applied on the Korean shipbuilders to collaborate with their Indian counterparts to build LNG vessels in India.
 8How far will the Koreans go to transfer technology remains a moot point unless a full technology transfer matrix is drawn up beforehand.
 8Will the technology be transferred end to end, or will the ship components be just imported in semi knocked down condition from Korea and assembled in India?
 8Technology transfer comes for a price, and if this shows up in the cost of the vessels, then clearly GAIL will have to foot the higher price so that Indian shipyards can get the opportunity to build these ships.
 8If the technology is transferred only in bits and pieces, Indian shipyards will not gain any advantage as they will then be unable to compete in technology and cost in global tenders for LNG carriers unless of course they are floated by Indian public sector entities with a compulsory domestic content clause.
 8Then of course, the shipping ministry can insist that any LNG carrier carrying LNG to India must have domestic manufacturing content in it, which may again force LNG suppliers to prefer Indian shipyards to build such ships.
 Click on Details to find out what needs to be transferred to build India`s prowess in LNG shipbuilding 
Details
Following two discoveries -- dubbed Nagayalanka 1z  and Nagayalanka-SE -- made in the block KG-ONN-2003/1, ONGC is progressing well with an appraisal programme and a Field Development Plan (FDP) in order to enable commerciality of the discoveries, expecting first oil in 2017.
8While the Nagayalanka 1z discovery has been made in the Raghavapuram reservoir, the Nagayalanka-SE-1 discovery is in the Gollapalli reservoir.
8The discoveries were reported to the DGH through Declaration of Commerciality (DoC) reports submitted in March 2012, and November 2013, respectively for the Raghavapuram and Gollapalli pays.
8As the Raghavapuram and Gollapalli reservoirs fall within a common area, ONGC is developing both the discoveries, jointly through an integrated approach, for cost optimization and better economics.
8The block was awarded to a JV of ONGC (51%) and Cairn (49%) under NELP-V. The block was earlier operated by Cairn but later the operatorship was handed over to ONGC.
8Originally, the block encompassed an area of 1697 sq km. However, at the end of Phase-I activity, an area of 435 sq km was relinquished. On completion of Phase-II activity, another 947 sq km was relinquished.
8The remaining area of 315 sq km (discovery area) has been retained for development drilling and production activities. Details
Taking charge as the operator of the block, ONGC has drawn up a plan to drill a total of 20 deep HP-HT horizontal wells in the block KG-ONN-2003/1.
8The 20 wells will be drilled in two phases. While only two wells will be drilled in the first phase, the remaining 18 wells will be drilled in the second phase.
8An EOI has already been invited by ONGC for hiring of consultancy services for preparation of well engineering, well design, well planning, scope of work (SOW) and estimation and evaluation of materials, services and bids.
8The consultant will also be mandated to supervise drilling, completion, testing, multi-stage hydraulic fracturing and flow back of all the 20 wells.
8The target depth of the prospective wells may vary from 5500 metres to 6000 metres.
8ONGC plans to spud the first well by the beginning of Q1, 2016-17. Details
The details of activities that will be carried out by the consultant in the block KG-ONN-2003/1 (in two phases), are:
8Carry out a peer review of placement of all the 20 cluster wells (in six well pads)
8Peer review of the well design, spudding to completion of wells, multi-stage perforation and hydro-fracturing, along with flow back of the wells.
8Review of the well data supplied by the operator ONGC.
8Review of pore pressure, fracture gradient and mud weight plan
8Assessment of risks associated with drilling work
8Selection of casing points
8Designing the well trajectories and selection of drilling tools
8Selection of well head and x-mass tree
8Finalization of drilling rig specifications
8Develop a step-wise operating plan, with procedures, for the rig contractor
8Completion schedule and project cost (well-wise)
8Identification and bid evaluation for all tangible services required Details
Last year (2014), ONGC had chalked out a plan to drill a total of 31 development wells in the block KG-ONN-2003/1, at a whopping cost of Rs 6,804 crore.
8Along with this, the plan also included establishment of an Early Production System (EPS) in the Nagayalanka area.
8The in-place reserves in the 31 development wells is estimated at 292 MMbbl of oil (OIIP) and 524 BCF of gas (GIIP).
8Of the 31 wells, 30 are horizontal and one is a vertical well.
8As the pays are tight in nature, hydraulic fracturing within the sands is required to bring the wells on production. The wells are planned to be brought under production after being connected to the production installation (EPS).
8It is expected that 15-17 wells will be connected to the EPS, which will have a handling capacity of 800 m3/d of oil and 5,00,000 SCMD of gas.
8While the cost of drilling including rig hiring, daily drilling rates, consumables, well accessories, hydraulic fracturing, land acquisition with respect to drilling of 31 wells is pegged at Rs 6,792.00 crore, the cost for the establishment of the EPS is estimated at Rs 12 crore. Therefore, the total project cost comes to Rs 6804.00 crore. Details
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