During the last fiscal, ONGC made
22 oil and gas discoveries out of which 14 discoveries were made onshore and 8
discoveries were in offshore fields. In these discoveries, 9 were from the NELP
blocks and 13 from the ONGC operated blocks awarded to the company during the
nomination regime. The company has been making a steady progress in discovering
new hydrocarbon resources which has been elicited by its reserve accretion
y-o-y. During 2012-13, reserves accreted by the company from domestic assets
stood at 84.84 million tons of oil equivalent from the nomination fields/blocks
which was supplemented by noticeable accretion in reserves from its share in
PSC fields and blocks which stood at 4.24 million tons of oil equivalent in
comparison to 1.31 MMToe (million metric tonnes of oil equivalent) from JV
fields in fiscal 2011-12.
Discoveries in Bantumilli South-1
which was a Gas discovery and Vanadurru South-1 which found both Oil & Gas
resources have strengthened the prospectivity of the area and have opened up the
entire adjoining tract for hydrocarbon exploration in the Krishna-Godavari
onland acreage of ONGC. Basement oil and gas discoveries in Madanam-3 (the
first hydrocarbon strike in ONGC operated NELP blocks in Cauvery onshore Basin)
and Pandanallur-8 which found both Oil & Gas in Cauvery onshore Basin and
BH-68 (again Oil & Gas discovery) in Mumbai offshore has given huge impetus
to ONGC’s renewed efforts. KG-DWN-98/2-A-2 which found both Oil & Gas
resources in the NELP deep-water block KG-DWN-98/2 has given a definite
positive fillip to ONGC's efforts towards monetizing discoveries in the
Northern Discovery Area (NDA) of this block.
Out of 14 onshore discoveries
made during 2012-13, four discoveries (Anklav-9, Motera-36, Mandapeta West-12
& Phulani-1) have already been put on production and one discovery
(Mansa-36) is under trial production. Efforts are on for bringing the other
discoveries on production at the earliest. One discovery in offshore sector
(D1-D-1) has also been put on production.
Production Performance and Upside
The company’s forecasted
production volumes will see some upside within the short term period through
monetization of its cluster field projects – some of which have already started
producing. The rest of these 13 projects are slated to come onstream within the
next two years.
ONGC’s crude oil production from
its nomination acreages is slated to increase to 24.08 million tons and 24.95
million tons over the next two years backed by the completion of most of its
projects that are aimed at monetizing the small and marginal fields – mostly
seated surrounding the Mumbai High prolific producing region. The company’s
share in joint venture blocks especially the resource rich Barmer block –
operated by Cairn, is also expected to give some upside to its share of crude
oil production from JV fields in the short to medium term.
Natural gas production upside
will be significant from FY15 when almost all of the cluster field projects are
set on production with annual volumes expected to reach levels of 25.1 BCM from
its nomination acreages. However, gas production from JV fields are soon
depleting due to production downslide in Panna, Mukta and Tapti fields.
Cluster Field Projects
Currently, 12 cluster field
projects are under advanced stages of execution. Five projects are expected to
be completed by the end of the current fiscal. Out of these five projects
except the Development of G1 and GS-15 fields in KG Offshore, all other field
development projects are located in the Mumbai Offshore area.
The total investment made by ONGC
on these projects are over Rs. 34,000 crore and is expected to give a
production boost of around 12-13 mmscmd of gas and 4-5 million tons of oil
initially with ultimate peak production volumes of close to 22 mmscmd of gas
and 7-8 million tons of oil.
Towards realizing the benefits of
the cluster field development projects, ONGC has already started producing from
B-146 fields with production of around 0.43 mmscmd of gas. D1 fields are also
producing approximately at the rate of 18,000 barrels of oil per day while
initial production from the North Tapti, C-Series and B-22 fields are 1.35
mmscmd, 1.53 mmscmd and 1.33 mmscmd respectively.
Next in line are B-193 field,
additional production from D1 field, BHE field and WO-16 cluster fields which
will be brought onstream within the next six months. ONGC has also planned to
expedite the development of 6 fields in the Daman offshore area which comprise
of C-22, C-24, C-39-A, C-39-1, B-12-7, C-26, C-23, B-12-1 fields. Phase I
involved the drilling of 15 wells out of total of 22 wells including all three
phases. Phase II and III development has been advanced by 4 years looking at
the production upside through the integrated development of these fields.
The integrated development
strategy adopted by ONGC has the potential to flip several small/marginal
fields which were individually unviable into viable projects for commercial
production. As a result of this approach, ONGC will be able to give a fillip to
its hydrocarbon production from domestic fields in the short-term till the NELP
discoveries further supplement production volumes.
Infraline Energy Oil & Gas Knowledgebase Team
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