Oil and Gas Exploration: Abhishek Rohit Gunjan Isha Shah Anupam Kumari

Oil and Gas Exploration
Abhishek
Rohit Gunjan
Isha Shah
Anupam kumari
OIL & GAS EXPLORATION
Size
Oil & Gas provide 45% of India’s primary energy
requirements.
Crude oil demand is currently about 146 MMT
while the domestic production of crude is only 34
MMT.
India’s crude oil import dependency is likely to
increase to 90% by 2025
Natural gas demand is currently about 179
MMSCMD while the domestic supply is only 80
MMSCMD .
STRUCTURE
 Oil and Natural Gas Commission (ONGC) and Oil
India Limited (OIL), both public sector companies,
are the largest with about 82% share of the total
domestic oil and gas production.
 The Exploration and Production (E&P) sector is
witnessing increasing private sector participation,
both domestic and foreign.
– In the last 2 years, private sector/JV companies have
made 17 significant hydrocarbon discoveries.
– The world’s largest gas discovery in 2002 (about 10
trillion cubic feet) was made by Reliance Industries Ltd.
Quick outlook about oil and gas
 Crude oil demand is likely to increase to about
235 MMT by 2012.
 Gas demand is expected to reach 279
MMSCMD by 2012.
 A CAGR of 12% for the next 5 years.
Potential
 The government is actively promoting the creation of
strategic oil and gas reserves through partnerships with
the private sector.
 22% of the Indian sedimentary area is unexplored –
discovery of oil fields by investors such as Cairn Energy
and “giant” gas fields by Reliance, ONGC, etc. indicate a
large potential for profitable investment in exploration.
 An investment need of US$40 billion is expected in
exploration and production by 2012.
 Reliance alone plans to spend over US$10 billion in oil
& gas exploration and production over the next 3 years.
Oil in India:-History
 India has significant amounts of oil and natural gas, and four of
India's top six revenue-generating companies are in the oil and
natural gas business.
 The Oil and Natural Gas Commission was established in 1954 as
a department of the Geological Survey of India, but a 1959 act of
Parliament made it, in effect, the country's national oil company.
 The Oil and Natural Gas Commission discovered oil in Gujarat in
1959 and opened other fields in the 1960s and 1970s.
 Oil production in India amounted to 200,000 tons in 1950 and
400,000 tons in 1960.
 In FY 1989, oil production peaked at 34 million tons, of which
Bombay High accounted for 22 million tons.
to be continued
India has thirty-five major fields onshore (primarily in Assam and
Gujarat) and four major offshore oil fields (near Bombay, south of
Pondicherry, and in the Palk Strait)
In the mid-1990s, a 1,700-kilometer trans-India pipeline was being
built; the pipeline will link the facilities near Bombay and Kandla to a
series of gas-based fertilizer plants and power stations.
India's need for oil and petroleum-based products--about 40 million
tons per year--far exceeded its domestic production capabilities of 28
million tons per year in the early 1990s.
In February 1994, contracts were awarded for three offshore fields in
the Arabian Sea to an Indian-United States consortium and one in the
Bay of Bengal to an Indian-Australian-Japanese consortium.
In June 1995, an agreement was reached to set a joint-venture
company to construct the first leg of the pipeline, from Iran to
Pakistan. - India oil natural gas 1995 loc data.
Oil and Gas:-
 India has total reserves of 775 million metric tonnes
(MMT) of crude oil and 1074 billion cubic metres (BCM)
of natural gas as on April 1, 2009.
 Petroleum exports during 2008-09 were US$ 26.2 billion.
 In the eighth round of the NELP (NELP-VIII), 1.62 sq km
area will be covered comprising 70 blocks. Out of 70
blocks, 36 have been awarded under NELP-VIII, according
to the Economic Survey 2009-10.
 The ninth round of New Exploration Licensing Policy
(NELP) is likely to be launched in the third quarter of 2010.
 The government is planning its first ever offer of shale gas
exploration in 2012.
Production:- Oil
 By the end of the Eleventh Plan, the refinery capacity is expected
to reach 240.96 million metric tonnes per annum (MMTPA).
 During April-May 2010, crude oil production went up to 5.82
MMT, a 5.5 per cent increase over the corresponding period in
2009
 During April-May 2010, 26.89 MMT of crude oil was refined, an
increase of 8 per cent over the corresponding period in 2009
 During April-May 2010, the actual natural gas production was 9.1
BCM, an increase of 43.5 per cent over the corresponding period
in 2009
Source: Ministry of Petroleum & Natural Gas

Consumption:- Oil
 The sales/consumption of petroleum products during
during 2007-08 was 128.95 MMT.
 The sales/consumption of petroleum products during
2008-09 is 133.4 MMT(including sales through private
imports)
 The sale of oil products in the country rose 3.8 per cent
in April 2010 to 12.13 million tonne year-on-year.
 Demand for oil and gas is likely to increase from 186.54
million tonnes of oil equivalent (mmtoe) in 2009-10 to
233.58 mmtoe in 2011-12.
Source: Ministry of Petroleum
Gas
 India's natural gas demand is expected to
nearly double to 320 million metric standard
cubic metre per day (mmscmd) by 2015.
 The current demand of 166 mmscmd—made
up of nearly 132 mmscmd supplies from
domestic fields and the rest from imported
liquefied natural gas (LNG)—is likely to rise
to at least a minimum of 230 mmscmd and a
maximum of 320 mmscmd by 2015.
Source: Global consultancy firm, McKinsey at
the VI Asia Gas Partnership Summit.
to be cont.
 According to GAIL gas availability in India is
expected to grow at 23% CAGR to 312 mscmd by
2013-14.
 In the next three years GAIL invested US$ 660.7
million-US$ 770.8 million in its pipeline network and
expanding its transmission capacity from the current
150 mscmd to 300 mscmd.
 GAIL has signed a MoUwith the Karnataka
government will spend US$ 423.6 million this year to
lay the 800-km pipeline to transport gas from the LNG
terminal in Dabhol to Bidadi near Bangalore and
expects the project to be completed by March 2012.
to be cont.
 ONGC has added 83 million tonnes (MT) of oil
and gas reserves in 2009-10, the highest in two
decades.
 ONGC joint ventures with firms like Cairn India
in domestic fields in 2009-10 has been 87.37 MT
of oil and oil equivalent gas against the target of
76.28 million tonnes.
 ONGC on a standalone basis added 82.98 MT of
oil and oil equivalent gas reserves in 2009-10.
Source: ONGC
Investments and Acquisitions
 Mangalore Refinery & Petrochemicals Ltd, (MRPL) has signed
an agreement with State Trading Corporation of Mauritius for
the supply of 1.1 (MMT) of petroleum products per year, with
the total value of the deal estimated at US$ 2 billion at current
prices.
 The three public sector oil companies—Indian Oil Corporation
Ltd (IOCL), Oil India Ltd (OIL), and ONGC Videsh Ltd (OVL)
—along with their consortium partners Spanish major Repsol
and Malaysian Petronas, have signed a US$ 20-billion joint
venture agreement for the development of and production from
the Carabobo-1 Project in Orinoco region of Venezuela. The
licence term is for 25 years with the potential for a 15-year
extension, and the project cost is estimated at US$ 15-20 billion.
to be cont.
 Reliance Industries will invest US$ 1.36 billion in shale assets
of US-based Pioneer Natural Resources, for a 45 per cent stake
in its Eagle Ford shale acreage in south Texas.
 Mahanagar Gas Ltd (MGL) will invest over US$ 3.36 billion in
a span of 5-6 years to lay infrastructure for the supply of both
Compressed Natural Gas (CNG) and Piped Natural Gas (PNG)
 Reliance Industries pay US$ 1.7 billion to form a joint
venture with U.S.-based Atlas Energy.
 Gujarat State Petroleum Corporation (GSPC) has inked an
agreement with the Government of Egypt for oil and gas
exploration in the African nation where the Indian firm has
been allotted blocks.
Company Analysis: ONGC
 ONGC was set up as a commission on August 14, 1956.
 ONGC incorporated on June 23, 1993 is an Indian public
sector petroleum company.
 ONGC contributes 77% of India's crude oil production and
81% of India's natural gas production.
 Indian government holds 74.14% equity stake in this
company.
 ONGC is one of Asia's largest and most active companies
involved in exploration and production of oil.
 It produces about 30% of India's crude oil requirement.
 It owns and operates more than 11,000 kilometers of
pipelines in India.
Global Rankings:
 Occupies 155th rank in “Forbes Global 2000” list 2010 of the
world’s biggest companies for 2010 based on sales, profits,
assets and market capitalisation.
 ONGC was last year placed at the third position in the pure
E&P category, behind Encana of Canada and China's Cnooc.
 ONGC has been ranked 18th in the overall listing of global
energy companies as per Platts “Top 250 Global Energy
Company Ranking 2010”.
 It is ranked 24th among the Global publicly-listed energy
companies as per ‘PFC Energy 50’ list (Jan 2010).
ONGC represents India’s Energy Security
 Cumulatively producing 788.273 Million Metric Tonnes
(MMT) of crude and 463 Billion Cubic Meters (BCM) of
Natural Gas, from 111 fields.
 ONGC has bagged 85 of the 162 Blocks (more than 50%)
awarded in the 6 rounds of bidding, under the New
Exploration Licensing Policy (NELP) of the Indian
Government.
 ONGC’s wholly-owned subsidiary ONGC Videsh Ltd.
(OVL) is the biggest Indian multinational, with 44 Oil &
Gas projects 18 countries.
 ONGC Notified Two More Discoveries –Cauvery Basin-
Onland and KG Basin- Shallow Offshore.
India’s Most Valuable Public Sector Enterprise:
ONGC
ONGC retains its position as the highest

dividend paying company in India;
dividend of 33 per share (330%) with total
payout of 7,058 Cr. and 1,162 Cr. as
dividend.
Highest ever production of oil and gas
from overseas assets.
Highest ever net profit of 16,768 Cr.
Source: www.ongcindia.com
ONGC : Future Plans
 Crude oil production likely to go up 28 MMT by 2012-13 from current
production of 24.67 MMT (2009-10).
 Natural gas production likely to be 72 mmscmd by 2012-13 and
envisaged to be 100 mmscmd by 2015-16 from present production
level of about 62 mmscmd.
 ONGC has approved setting up a 102 MW Wind Farm in Rajasthan, in
addition to a 51 MW Unit already working successfully in Bhuj,
Gujarat.
 It is also planning to establish a Photo-voltaic Solar Plant.
 Two petrochemical plants being implemented by ONGC Dahej in
Gujarat at the estimated investment of 19,500 crore and ONGC
Mangalore Petrochemicals Limited (OMPL) at Mangalore at the
estimated investment of 5,750 crore, are progressing well and are
expected to become operational in 2013.
Source: www.ongcindia.com
1. Introduction
2. Conceptual Framework: Meanings and
Definitions
3. Detailed Discussion on Topic:
a) Theoritical Analysis
b) Empirical Analysis
4. Conclusion
5. Bibliography
(Note: sources of all information must also be cited

in text. The same may be shown as footnotes or
with concerned information)

Oil and Gas Exploration: Abhishek Rohit Gunjan Isha Shah Anupam Kumari

Uploaded by

Copyright:

Available Formats

Oil and Gas Exploration: Abhishek Rohit Gunjan Isha Shah Anupam Kumari

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Oil and Gas Exploration: Abhishek Rohit Gunjan Isha Shah Anupam Kumari

Uploaded by

Copyright:

Available Formats

Oil and Gas Exploration

Source: Ministry of Petroleum & Natural Gas

ONGC retains its position as the highest

(Note: sources of all information must also be cited

You might also like