3rd Programme on Realizing Hydrocarbon Vision 2030 for North East India


3rd Programme on Realizing Hydrocarbon Vision 2030 for North East India

The 3rd one and half day workshop on “Realizing Hydrocarbon Vision 2030 for North East India was held at the Hotel Lemon Tree, Gangtok on March 6-7, 2020. The workshop was participated by Oil & Gas Companies like ONGC, IOC, OIL, Cairn-Vedanta, IGGL, TNGCL, HOEC, Schlumberger etc operating in North East States.

In his Opening Address, Dr. R. K. Malhotra, Director General, FIPI reiterated the key objectives of North East Vision document i.e. leveraging hydrocarbon sector for the development of the Region. He also mentioned that two such programs (in 2017 at Kaziranga and 2018 at Shillong) were organized by FIPI to review the progress and capture the challenges and constrains in the Region. He stated that the region has witnessed various development in hydrocarbon exploration & production activities in recent years and under HELP policy new contracts were signed for 20 blocks under OALP-1, five blocks under OALP III and 9 small field contracts were signed under DSF round I & II. Apart from that Oil & Gas companies are investing more than Rs. 10,000 Crore in next five years for exploration & production activities in the region.

There were three more eminent speakers in the Opening Session representing the major oil & gas companies operating in the North East Region.

1. Dr. P. Chandrasekaran, Director (Exploration & Development ), Oil India Limited (OIL)

2. Dr. Deben Buragohain, CEO, Indradhanush Gas Grid Limited (IGGL)

3. Shri Manoj Sharma, Executive Director (Operations), Indian Oil Corporation Limited (IOCL)

Some of the key points of the session are- 

• Intent of the vision document which is to develop common and shared structure for benefiting people of the North East region. Lot of collaboration and partnership required amongst the E&P companies to understand the challenges in the region and provide solutions to each other .

• It was mentioned that the Assam and Assam Arakan basins are the two super basins of India producing for a long time . It is still having enough potential to contribute to the production of Oil & Gas in the country. It was also mentioned that 45% of Natural Gas production from Onshore are being produced by NE region states

• Lot of new reforms have been introduced by GoI in last few Years and aggressive exploration including survey,exploratory drilling ,testing etc have already been started by ONGC,OIL,Cairn etc.

• The requirement of Gas in North East is around 23 MMSCMD and the current supply is around 11 MMSSCMD . It was mentioned that all out efforts are being done to enhance the gas production.

Members requested FIPI to facilitate these wish-lists for an effective implementation of government aspiration for enhancing oil & gas production in NE Region.

At the end of Inaugural Session, Shri T.K. Sengupta, Director (Exploration & Production), FIPI proposed a vote of thanks to the eminent speakers for presenting good progress in North East region. He mentioned that after policy reform in upstream sector huge work has been initiated in NE region both in Award of blocks to Surveys and drilling exploratory well.

The summit was split into three Technical Sessions covering Exploration, Development & Production; Midstream, Natural Gas & Marketing and Technology & Downstream, Operations & Pipelines. The session were chaired by eminent experts namely Dr. P. Chandrasekaran, Director (E&D), OIL; Shri T.K. Sengupta, Director (E&P), FIPI & Shri N.K. Bansal, Director (Oil Refining & Marketing), FIPI.

Technical Sessions

1. Session on Exploration, Development & Production

Some of the key takeaways from the session are -

• Nagaland could be the potential new frontier for exploration activities. Discovered resources in the region is 2046 MMTOE while the undiscovered potential is 5588 MMTOE. Despite the presence of huge potential, the region faces geological complication impacting the field development activity. Major hindrance in acquiring reasonably good quality seismic data in these areas are the presence of high dipping beds (max. up to 60-70 degree) and surface and sub-surface thick boulder beds which affects energy penetration resulting in poor signal to noise ratio.

• The region has multiple hydrocarbon bearing pays with good to moderate permeability. The current recovery is 15% of In-place reserves and there is a scope for improving water injection for improved recovery rate. The technology improvement like radial drilling, produced water re-injection, ESP/SRP, Gravel pack completion, extended reach drilling, Acidisation, chemical water shut off and carbon dioxide flooding are implemented to improve the recovery.

• Using state of Art technology, companies can look to maximize potential of exploration blocks, reduce time to production and optimize the source and maximize value of information. /p>

2. Session on Midstream, Natural Gas & Marketing and Technology

The share of natural gas in India (6.2%) is significantly lower than that of the global average (23.9%). With a population of 1.3 billion people would require energy solutions that are - Reliable, Convenient, Low Carbon intensive, sustainable and affordable.

• Natural gas has 4 key value propositions i.e. Abundance, Availability, Affordability and Acceptability as it has a cleaner footprint makes it an ideal fuel to propel India’s sustainable economic development. Indradhanush Gas Grid will connect the NE region with Barauni - Guwahati pipeline, which is a part of Jagdishpur – Haldia & Bokaro – Dhamra Natural Gas Pipeline Project, popularly known as ‘Pradhan Mantri Urja Ganga’.

• This will boost the consumption of Natural Gas in the region. Considering the long term environmental and societal benefits of switching to a cleaner fuel, transforming India to a gas-based economy can become the backbone of India’s sustainable economic development.

• CGD companies called for faster gas allocation process and the need for single window clearance to obtain the required clearances and approval from governments and other bodies.

• North East region must be given participation in the policy making considering the role on the region in the India Oil & Gas industry.

3. Session on ‘Downstream’ segment witnessed four presentations on various actions in NE for:

Following are points of focus and fast track actions to achieve the timeline targets:

• Current refining capacity of four NE refineries is about 7.0 million MT per annum (MMTPA) whereas crude supply from indigenous sources is around 4.2 MMTPA. With current expansion projects, the combined refining capacity of these refineries will be about 16 MMTPA by 2024-25.

• POL demand - supply outlook up to 2030 indicate surplus position. As such backward evacuation of POL outside NE is expected to continue Economic viability through State Governments incentive may have to continue till regional demand pick-up in the long run.

• Export of POL (HSD) to Bangladesh and Myanmar has to be tied up with infrastructure projects completion in time to ensure product supplies in line with Govt. policies. This will also help in product evacuation from NE.

• LPG demand - supply outlook indicate continuation of deficit status with wider gap by 2030. LPG pipelines projects; one from Numaligarh to Imphal and other from Chittagong (Bangladesh) to Agartala with extension up to Silchar and Aizwal need to be firmed up fast.

• PESO approval to receive bulk LPG through road carriers of Bangladesh to be followed up.

• Environmental clearance on proposal of Guwahati Refinery to use low pet coke as fuel for boiler from State Pollution Control to be expedited.

• Pipelines for pumping multiple products pose special technical and operational challenges due to undulation in the geography and steep slopes. Shutdown of pipelines due to low demand may cause larger interface mixing and product down gradation. This may pose extra challenge in the size of marketing tankages.

• Implementation of Guwahati- Silchar-Imphal product pipeline project depends on Utility Corridor of NHAI which will come with 4 lane widening of highway NH 37. HHAI is yet to firm up plans. This project also seeks VGF up to 40 % of cost for which Govt. approval is awaited.

While NE companies in Downstream (refineries, Pipelines and Marketing) and Midstream have started actions and are progressing to upgrade technologies and infrastructure, a coordinated and integrated approach is essential to synchronised timings and matching capacities in all domains.

The vote of thanks was given by Shri N.K. Bansal Director (Refinery & Marketing) FIPI. The program was a grand success.

Detailed Report