INDIGENOUS GAS RESOURCES CHALLENGES TO EXPLORATION AND PRODUCTION 6TH PETRO INDIA 2007, NEW DELHI.

INDIGENOUS GAS RESOURCESCHALLENGES

TO EXPLORATION AND PRODUCTION

6TH PETRO INDIA 2007, NEW DELHI

6th Petro India 2007

PRESENTATION SEQUENCE

WHY is it a preferred fuel option

WHAT is it’s genesis

HOW much is the availability vis-à-vis demand growth

WHERE are the probable Gas provinces

WHAT are the E&P Challenges


EMERGING IMPORTANCE OF NATURAL GAS

It is the cleanest fossil fuel (emits virtually no SO2 and

very low levels of CO and CO2)

Natural Gas has a very high energy efficiency ( 90%

compared with 27% for electricity)

Hence, helps conserve nation’s energy resources

NATURAL GAS


NATURAL GAS HAS TWO

PRIMARY ORIGINS:

(1)methane produced by

bacteria (biogenic gas),

and

(2)hydrocarbon gas

produced by thermal

alteration of sedimentary

organic matter

(thermogenic gas).

NATURAL GAS


Conventional Gas Plays

Unconventional Gas Plays

OCCURRENCES OF NATURAL GAS


WORLD NATURAL GAS DEMAND BY REGION

Source: International Monetary Fund

The most significant growth in demand is seen for Asia which is governed primarily by the demand growth in India and China

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NATURAL GAS DEMAND PROJECTION – INDIA

Natural gas demand in the country is poised to take off exponentially in the coming years


WORLD NATURAL GAS RESOURCES

Source: IHS

WORLD HAS SUFFICIENT RESOURCES TO CATER TO OUR GROWING DEMAND


AGENCY BP STATISTICAL REVIEW

CEDIGAZ OIL & GAS JOURNAL

WORLD OIL

UNIT (TCF) (TCF) (TCF) (TCF)

WORLD 6,359.172 6,380.625 6,182.692 6,226.555

INDIA 38.865 38.882 37.960 27.259

WHEN ESTIMATED

Year-End 2005 January 1, 2006 January 1, 2007 Year-End 2005

PROVED RESERVES OF NATURAL GAS MOST RECENT ESTIMATES

RESOURCES OF NATURAL GASThe Indian Scenario



CONVENTIONAL GAS RESOURCES(15 Basins only) : 400 TCFGIIP Established : 94 TCFPercentage Conversion : 23.5%

UNCONVENTIONAL GAS RESOURCES(CBM Gas Resources only) : 50 TCFGIIP Established : 6 TCFPercentage Conversion : 12%

Source: DGH

Probable Resources :1894 TCM(mainly east coast)

GAS HYDRATE


CONVENTIONAL RESOURCES


LOOKING FOR NATURAL GASThe Indian Scenario

Established Gas provinces with huge future potential

Tripura-Cachar-Mizoram Fold Belt

USGS-Petrobangla

Assessment puts the

undiscovered Natural

Gas potential in the

Bangladesh part of the

Fold belt as 32 TCF

Resources in the Indian Part is in the order of 47 TCF




Tripura-Mizoram Sector has a potential ~ 30 TCF




CACHAR: THE NEXT LARGE GAS PROVINCE?

Endowment

6000 Sq.Km area which

forms part of Assam

Arakan Fold Belt with

envisaged potential of 17

TCF




Sembar-Goru Petroleum system of Cretaceous has major Gas Fields

across the border along the Jaisalmer-Mari high trend.

WEST RAJASTHAN

BARMER

JODHPUR

JAISALMER

NAGAUR

BIKANER

100 km500

SHAHGARH LOW

SANCHOR

POKRAN

NACHNA

AR

CH

AR

AV

AL

LI

RA

NG

E

SCALE

IGNEOUS ROCKS

+ ++ +

+++

++

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++

+

++

++ +

+

+ +

+ + +

+

++

+

++

P A K I S T A N

Known Gas Producing Area

New Oil & Gas Province

Jaisalmer-Mari high

PROGNOSTICATED RESOURCE ~ 5 TCF GAS EQ



Source: DGH

East Coast:

Prognosticated Resources ~ 25 TCF

In Place Reserves ~ 16.5 TCF

Emerging Gas provinces with promising potential

The present trend of success in KG

Basin and Mahanadi Basin calls for

re-assessment of the resources




KG- OFFSHORE (ULTRA DEEP WATER)

ONGC

MN-O

SN-200

0/1

ONGC




KG- OFFSHOREULTRA DEP WATERUD-1

~260 Sq. Km

with

~100 m Relief




MAHANADI OFFSHORE

Area-III

MN-DWN-98/3 NEC-DWN-2002/2

MN-OSN-2000/2


ANDAMAN OFFSHORE – ENGULFED BY

PRODUCING BASINS

Irrawady basin with

large gas discoveries

North Sumatra basin

with giant gas and oil

discoveries

Andaman sea region

to be established with

a large hydrocarbon

discovery

Petroliferous province encompassing:



ANDAMAN OFFSHORE

Established Giant gas fields in the north as well as in the south

Future Gas Provinces




INDUS FAN

Cambay Basin

Laxmi Ridge

Indus Fan

Indus Canyo

n

BombayOffshore

100 km

The Lower and Middle Indus basin has many major gas fields in Pakistan


Lr. Indus basin

Kutch basin

Large Tethyan platform with

marine sediments

Part of Lower Indus petroleum

province with proved potential in

Pakistan – several large

discoveries.

Source rocks in Cretaceous, are

observed in Kutch as well as in

Lower Indus Basin.

Goru-Semabar fairway (Modified after Wandrey et.al.)

Mid. Jurassic Plate Reconstruction

Future Gas ProvincesKutch Basin



Source: DGH

FRONTIER ONLAND BASINS:

Prognosticated Resources ~ 346 TCF

In Place Volume ~ 18 TCF

Only 5% of the resources have

been converted so far leaving a

huge potential; calls for

immediate attention




GONDWANA BASINS

Analogous Petroliferous Basins

• Cooper & Gippsland basins, Australia

• Parana & Reconcavo basins, Brazil

• Karoo Basin, S. Africa

SATPURA S.REWA DAMODAR-KOEL

PRANHITA-GODAVARI

AREA (KM2) 14,720 21,120 20,480 21,000

SEDIMENTARY THICKNESS (KM)

Upto 7 5.5 3.5 3 (SE), 4 (NW)

HC SEEPAGES 8 Thermogenic

4 Biogenic

2 Thermogenic

6 Biogenic

GEOTHER. GRAD.(0C) 37 26 34 30.7

PROG. RESOURCES (MMT)

20 65 18 170


Bengal and Purnea Basins are also likely candidates



HIMALAYAN FOOTHILLS

HYDROCARBON SHOWS:

10 SURFACE GAS SEEPAGES IN HP

11 SURFACE GAS SEEPAGES IN J&K

06 GAS SHOWS IN WELLS




VINDHYAN BASIN

VINDHYAN BASIN

JABERA HALF GRABEN

JABERA # 1

~3000 m3/day

1

2


The basin has a close similarity to the Lena – Tunguska petroleum province of eastern Siberia

Most of the discoveries in Lena – Tunguska have been gas and the largest are in Proterozoic reservoirs.


The total HC resources of Vindhyan basin are assessed to be ~1270 MMtOE (KDMIPE, 2004)

Geochemical

Survey Sites In

Chambal Valley

Of Vindhyan

Basin Showing

Oil/Gas

Pointers

VINDHYAN BASIN

Source: DGH


UNCONVENTIONAL RESOURCES


WORLD’S POTENTIAL UNCONVENTIONAL NATURAL GAS RESOURCES

The Unconventional Resources are likely to provide Gas for a longer duration than what the Conventional Resources have so far


Well Developed Cleat Systems (OPEN) in Jharia COAL

CBM Exploration

CBM:

Country’s Resources 1454 BCM over 13600 sq km

ONGC’s Resources 444 BCM over 3214 sq km

ONGC’s Share 24% in acreage, 30% in Resources

By 2011-2012, envisaged production, 1.24 BCM/year


India is the third largest producer of coal and

present estimates of coal reserves are about

248 billion tons with 99% of total reserves in

Gondwana and ~1% in Tertiary



LBM (Lignite Bed Methane)

LBM is natural gas produced as a by-product of the Lignite formation process, stored on the internal surfaces of the organic matter

TOTAL RESERVES OF LIGNITE ~ 34.6 Bt Tamil Nadu and Pondicherry (87.5%), Rajasthan (6.9%), Gujarat (4.95%), J&K (0.37%) and Kerala (0.31%).

Some lignite occurrences reported in Andhra Pradesh, Karnataka, Maharashtra and Orissa.


Basin Centred Gas Accumulation (BGCA)


Basinal Lows are the locales for exploring BCGA

Huge potential expected in the lows within established petroleum provinces

Pilot study in selected basinal lows initiated by ONGC


Underground Coal Gasification (UCG)

Target Reserves ~ 110 Bt,

Recoverable ~ 11 Bt

Estimated Producible Gas ~ 27 TCM


ONGC in association with

Gujarat Mineral

Development Corporation

Limited (GMDC),

Neyveli Lignite Corporation

Limited (NLC),

Gujarat Industries Power

Company Limited (GIPCL),

Coal India Limited (CIL) and

The Singareni Collieries

Company Limited (SCCL)

has initiated pilot studies for

UCG in India


In shale, Gas is stored as Free gas in natural fractures

Gas adsorbed onto kerogen & clay particle surfaces

Gas dissolved in kerogen & bitumen

Degree of natural fracturing is controlling factor for gas productivity

Total shale-gas resources in the U.S. ~ 500 to 1000 TCF.

~ 35,000 producing shale-gas wells in the U.S., cum. production of about 1.1Tcf/yr (2006).

Shale Gas System




ONGC has taken up Cambay shale in Cambay Basin and Barakar Shale in Damodar Basin for shale gas exploration

Samples being analyzed for source potential values,

maturity, kerogen typing, and gas typingINDIAN PERSPECTIVE- Gondwana Province

Shale Gas System


Location map of the four hydrate sampling areas.

Delineation of one of the richest

marine gas hydrate accumulations yet

discovered - Site 10 - in KG Basin

One of the thickest and deepest gas

hydrate occurrences yet known - site 17

in the Andaman Islands from as deep

as 2,000 ft below the seafloor

Existence of a fully developed gas

hydrate system in the Mahanadi basin

Total Prospective area: 142845 sq km, Highly Prospective

55850 sq km

Total Probable Reserves (mainly east coast): 1894 TCM

Gas volume bound / sq km : 4.9 BCM

GAS HYDRATESGAS HYDRATES



CHALLENGES


CHALLENGES IN EXPLORATION

Frontier Areas

POOR IMAGING DUE TO HIGH VELOCITY LAYER Vindhyan, Satpura, Rajmahal part of Damodar Graben, Nagpur-Wardha, and Kutch Saurashtra Basins and Buried grabens beneath Deccan Syneclise.

IMAGING BELOW THRUST-FOLD BELT Himalayan Thrust Fold Belt Tripura-Cachar Thrust fold belt

IMAGING IN AREAS WITH PROFUSION OF IGNEOUS INTRUSIVES IN GONDWANA BASINS

Satpura, South Rewa Damodar and Pranhita-Godavari


CHALLENGES IN EXPLORATION

Deep Water Areas

High cost and technology intensive

Complex Geology and difficult logistics

Often high-pressure-high-temperature in wells

Global shortage of deep water rigs

Infrastructure for transportation needs simultaneous development


CHALLENGES IN EXPLORATION AND PRODUCTION

Complex geology involving rapid changes in the type and quality of

reservoir

Low porosity, permeability & recovery factors

May be over or under-pressured

Low per well reserves and are thus sensitive to gas price

Fractures often critical for economic recoveries

Require hydraulic and other stimulation technologies

Have adverse environmental impacts such as water disposal,

surface and subsurface disturbances etc

Unconventional Plays


EMERGING SOLUTIONS

EXPLORATION

3D seismic Logging while drilling Tilt fracture mapping Micro-seismic LIDAR (Light detection and

ranging)Reverse Time migration

DRILLING

Horizontal drilling Casing while drilling Air & under-balanced drilling Carbon tip and diamond bits New generation top-drive rigs

COMPLETIONS

Multi-staged fracs Slick water fracs Propants Steam assisted gravity drainage Coiled tubing

SURFACE PROCESSES & TECHNOLOGIES

Multi-well pads “Digital oil field”–field data capture Spacing rules Pipe-in water Operating processes



IMPERATIVES


Major Issues that would impact unconventional Gas exploration and production

Geographical distribution and resource size

Technology available

Environmental impacts and issues

Market aspects

Indicative economics and incentives

Corporate decision

Market Aspects


“The bad news is we didn’t strike

oil.

The good news is we didn’t find

gas.”

This old industry joke would cause raised eyebrows

today


THANK YOU

INDIGENOUS GAS RESOURCES CHALLENGES TO EXPLORATION AND PRODUCTION 6TH PETRO INDIA 2007, NEW DELHI.

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Transcript of INDIGENOUS GAS RESOURCES CHALLENGES TO EXPLORATION AND PRODUCTION 6TH PETRO INDIA 2007, NEW DELHI.