why nelp[read only]

7/31/2019 Why Nelp[Read Only]

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1

THE SUCCESS

OFNEW EXPLORATION LICENSING POLICY


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PRE-INDEPENDENCE ERA

Drilling of First well at Digboi in the end

of 19th

Century First Commercial Production of Oil and

Gas in country Formation evaluation through electrical

logs only Production of ~0.25 Mmtpa of Oil


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POST INDEPENDENCE & PRE NELP ERA

Discovery of Naharkotiya in NE in 1953

Ankleshwar in Cambay Basin in 1958

Mumbai High in Mumbai Basin in 1972

9Cauvery in 1958 (Karaikal-1)

9Jaiselmer sub-basin in 1958 (Manhertibba-1)

9Assam-Arakan yoma fold belt in 1973 (Baramura-1)

9Krishna-Godavari in 1982 (Narsapur-1)

Above discoveries resulted in attaining a peak self-sufficiency of ~70% in early 80s

Due to no significant discovery and tremendous increase

in demand self sufficiency fell to 30%


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PEL AND ML AREAS

UNDER OPERATIONBY NOCs AND PVT/JVCOMPANIES

(AS ON 01.06.1996)

PEL 203

ML 163

Total 366

PRE-NELP


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WHY NELP ?1. Large sedimentary areas remained unexplored/ under

explored in the country

2. Ever increasing demand-supply gap3. Requirement of vast capital investment

4. Early application of prudent & appropriate technology

5. Need for acceleration in existing leads & commercializationand development of existing discoveries

6. Only 28 PSCs could be awarded under different rounds toPvt/JV companies in 11 years under Pre-NELP rounds

7. Level playing field between NOCs and Pvt./JV E&P

companies Contd...


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WHY NELP ?

New Exploration Licensing Policy (NELP) wasformulated by Government of India in 1997-98

9 To provide level playing field

9 NELP introduced superior fiscal and

contractual terms, one of the best in theworld

9 Till now four NELP rounds of biddingcompleted and 5th round is on the anvil

9 Highly prospective deepwater areas

awarded for the first time


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Demarcation of various blocks done withan objective of upgrading of basins asper Vision 2025 of GOI

Hydrocarbon exploration carried outhorizontally to explore different

geological environments and vertically

to tap targets within different geological

ages

ACREAGE MANAGEMENT


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PEL AND ML AREASUNDER OPERATION BY

ONGC, OIL AND

PVT/JV COMPANIES

Company PEL MLONGC 117 239

OIL 18 22

PVT/JV/NOCs 100 33

Total 235 294

Total PEL & ML Blocks : 529RELINQUISHED BLOCK

( As on 01.08.2004 )

NELP


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9

A

N

D

A

M

A

N

&

BAY

OF

BENGAL

Delhi

Mumbai

Chennai

KolkataI N D I A

PREMIER OIL

CAIRN ENERGY

OAO GAZPROM

CAIRN ENERGY

HARDY

BRITISH GAS

CAIRN ENERGY

NIKO

CANORO

GEOPETROL

HERAMEC

OKLAND

FOREIGN COMPANIES OPERATING IN INDIA

GEO GLOBAL

TULLOW


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CHANGING EXPLORATION SCENARIOTotal Sedimentary Area : 3.14 Million Sq. Km.

0

0.5

1

1.5

2

18%17%15%

50%

1995 - 96

2003 - 04

UnexploredMod. toWell Expl.

Expl. InitiatedPoorly Expl.

18% 19%

33%

30%

Million

Sq.Km.


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SALIENT ACHIEVEMENTS OF NELP

1911No. of Discoveries

US$ 796.79 million*

5740,407 SKM

78,650 LKM

US$ 897.06 million *Investment made onExploration

66Exploratory Wells4,399 SKM3D Seismic Survey

22,502 LKM2D Seismic Survey

NELP- I, II, III & IV(2000-04)

4 Years

Pre-NELP(1993 2004)

11 years

Exploration Activities Completed : Pre-NELP Vs. NELP

* Upto March, 2004As on 01.07.2004


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0

50

100

150

200

250

300

350

400

450

1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04

Year

US$Million

0

100

200

300

400

MMT

Pre-NELP(Inv.

in US $

million)

NELP(Inv.in US $million)

In-placeReserve

Accretion

(MMT)

O+OEG

Production (MMT)

PRE-NELP & NELP PERFORMANCE

Pre-NELP NELP


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OMPARISON BETWEEN PRE-NELP & NELP

1913No. of Discoveries

2 (Mahanadi shallowwaters & KGdeepwaters)

90

4

4

1(Barmer ofRajsthan)

Discoveries in NewFrontiers

28PSCs Signed

8Rounds

11Years

NELP- I, II, III & IVPre-NELP


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NEW SIGNIFICANT DISCOVERIES (2000-2004)

Mahanadi-NEC Basin is Upgraded to Cat. II from Cat. III

A

N

D

A

M

A

N

&

BAY

OF

BENGAL

OilGas Km

0 400200

KANAKDURGA

PADMAVATI

ANNAPURNA

DHIRUBHAI 1, 2, 3, 4, 5, 6, 7, 8, 16

BHEEMA,NS

SARASWATI

RAAGESHWARI

GR-F

KAMESHWARI

MANGALA

N-A, N-C & N-V-1

LAKSHMI

AMBE

GAURI

PARVATI

Delhi

Mumbai

Chennai

Kolkata

D-5

D-6

RajasthanBasin

CB-OS/2

RJ-ON-90/1

KG-DWN-98/3

KG-DWN-98/2

CHINNEWALATIBBA

BANAMALI &LAIPLING GAON

BAGHJAN,

MATIMEKHANA,

CHABUA &

N. CHANDMARI

GS-49 & GS-KW

BAYOF

BENGAL

DISCOVERIES - 57

ANNAPURNA

LAKSHMI

VASAI EAST

PRE-NELP 13

NELP 19

NOCs 25

I N D I A

G4-2-AB

DHIRUBHAI 9, 10, 11 & 15

ENDUMURU-9

NMT-2

VASAI EAST& WEST

SONAMURA

CB-ONN-2000/1

CB-ONN-2000/2

PK-2

CBX-1


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z Spurt in E&P activity

z New hydrocarbon discoveries in challenging areas

totally changed earlier notion about prospectivity ofthese areas

z Exponential growth of knowledge base in different

domains of hydrocarbon exploration concepts andtechnology

9Wider coverage of Basins under exploration

9Upgradation of Basin category

Mahanadi

Deep Water East Coast

FURTHER BENEFITS OF NELP


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Out of 90 blocks under exploration only a fewof the blocks are explored through drilling

Hydrocarbon potential of many blocks yet to be

assessed by drilling

Last four years of NELP opened up new areas

for hydrocarbon occurrence

Confidence build-up in discovering more &

more oil and gas in new areas

FUTURE OF HYDROCARBON EXPLORATIONIN INDIA

Contd...


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Hydrocarbon Resources estimated only in 15sedimentary basins and deepwaters against

26 basins

In-place geological reserves established only

in 7 basins, which works out ~25% of theprognosticated resources

Very high chances of discovering much morehydrocarbons in country

FUTURE OF HYDROCARBON EXPLORATIONIN INDIA


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NELP is astounding success

India is highly under /unexplored

Possibility of striking of rich oil and gas reserves in hithertopoorly explored /unexplored older sediments quite high

Recent discoveries in virgin areas are not a chance factor,

but they are due to : Envisaging of sound geological models

Choosing of right exploration strategies

Utilization of appropriate technology for better imagingand delineation of subsurface configuration

Using right type of drilling/ testing technology for

reaching the targets and their evaluation

SUMMARY

Contd...


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Ultimate recoverable reserves of oil & gas arefinite where as the demand for energy is

bound to increaseBest efforts are made by GOI to find more oil

and gas, but it is pertinent to developalternate sources of energy within next 25 to30 years

Initiations in this regard are need of the timein order to find suitable alternative to oil and

gas

CONCERNS

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