OilMin forms panel to codify discovery recognition norms
3 Jan 2014 1:34 AM GMT
Though production sharing contracts (PSC) prescribe the adoption of generally accepted international petroleum practices or standards, there have been disputes between the DGH and operators such as Reliance Industries over tests that should be carried out to confirm discoveries.
Many gas finds have not been recognised and could not be put into production because the DGH insists on a test that companies such as RIL and BP Plc of UK did not conduct because it is considered unsafe globally and no longer practised.
The Oil Ministry issued an order on 27 December forming a 'Standing Committee on Petroleum Industry Practices' under the DGH. The nine-member panel will ‘identify the areas requiring codification of GIPIP (Good International Petroleum Industry Practices),’ the order said.
It will prepare national codes for petroleum operations and review them every two years for updating in line with evolution of international standards, the order added. The committee will also comprise of the ministry's Joint Secretary (Exploration) and Advisor (Finance) as members.
Besides, Adviser (Energy) in the Planning Commission, Joint Secretary in the Ministry of Environment and Forests, nodal officer for exploration in the Ministry of Defence and Oil and Natural Gas Corp Director (Exploration) will be members. Two representatives of the Association of Oil and Gas Operators will also be part of the panel, the order said. The committee may hire consultants to study international best practices and recommend suitable ones for the country.
‘The Standing Committee shall complete the first exercise of codification within a period of three months,’ according to the order, issued with the approval of Oil Minister M Veerappa Moily. The panel's expenses will be borne by the DGH.
Officials said the DGH did not recognise several discoveries in RIL's Krishna Godavari basin KG-D6 block and North-East Coast block NEC-25 off West Bengal because the prescribed Drill-Stem Test was not done to confirm them. KG-D6 discoveries D-29, 30 and 31, estimated to hold 350 billion cubic feet of reserves, can produce 5-7 million standard cubic meters a day.
In the NEC-OSN-97/2 (NEC-25) block, two finds D-32 and 40, holding 663 billion cubic feet of reserves capable of producing over 4 mmscmd, were not entertained by DGH.
ONGC resumes drilling in West Bengal after 8 years
Kolkata: After a gap of eight years, state-owned explorer Oil and Natural Gas Corporation (ONGC) has resumed drilling in West Bengal and the company would take up drilling of 11 exploratory wells.
‘We have resumed drilling in Bengal a few days back at Ladhi near Malda. We have identified another area at Daulatpur in the northern part of the state’, ONGC sources said.
At present, the company has one rig in the state and another rig is expected shortly, sources said, adding that drilling of each well would cost around Rs 40 crore on an average.
Oil India Limited (OIL) would share 25 per cent cost while remaining 75 per cent would be borne by ONGC, they said.
Of the eleven wells, five would be taken up in partnership with Oil India Ltd. The company has planned to complete the drilling of these wells by June 2015, they added.
Asked about the possibility of finding oil or gas in the current round of drilling, the source said, ‘Bengal is a geological puzzle to us. The company has drilled 60 wells in the state in the past 50 years which involved expenditure of about Rs 700 crore but no positive result has been found. ONGC had taken up drilling in the state last time in 2004-05’.
The sources said that based on the findings of the drilling, the company would take a decision regarding further drilling in the state.
‘Oil exploration is a never-ending operation. We will take a re-look at Bengal after June 2015 when the drilling operation of the 11 wells in the state would be over’, the source added.
Many gas finds have not been recognised and could not be put into production because the DGH insists on a test that companies such as RIL and BP Plc of UK did not conduct because it is considered unsafe globally and no longer practised.
The Oil Ministry issued an order on 27 December forming a 'Standing Committee on Petroleum Industry Practices' under the DGH. The nine-member panel will ‘identify the areas requiring codification of GIPIP (Good International Petroleum Industry Practices),’ the order said.
It will prepare national codes for petroleum operations and review them every two years for updating in line with evolution of international standards, the order added. The committee will also comprise of the ministry's Joint Secretary (Exploration) and Advisor (Finance) as members.
Besides, Adviser (Energy) in the Planning Commission, Joint Secretary in the Ministry of Environment and Forests, nodal officer for exploration in the Ministry of Defence and Oil and Natural Gas Corp Director (Exploration) will be members. Two representatives of the Association of Oil and Gas Operators will also be part of the panel, the order said. The committee may hire consultants to study international best practices and recommend suitable ones for the country.
‘The Standing Committee shall complete the first exercise of codification within a period of three months,’ according to the order, issued with the approval of Oil Minister M Veerappa Moily. The panel's expenses will be borne by the DGH.
Officials said the DGH did not recognise several discoveries in RIL's Krishna Godavari basin KG-D6 block and North-East Coast block NEC-25 off West Bengal because the prescribed Drill-Stem Test was not done to confirm them. KG-D6 discoveries D-29, 30 and 31, estimated to hold 350 billion cubic feet of reserves, can produce 5-7 million standard cubic meters a day.
In the NEC-OSN-97/2 (NEC-25) block, two finds D-32 and 40, holding 663 billion cubic feet of reserves capable of producing over 4 mmscmd, were not entertained by DGH.
ONGC resumes drilling in West Bengal after 8 years
Kolkata: After a gap of eight years, state-owned explorer Oil and Natural Gas Corporation (ONGC) has resumed drilling in West Bengal and the company would take up drilling of 11 exploratory wells.
‘We have resumed drilling in Bengal a few days back at Ladhi near Malda. We have identified another area at Daulatpur in the northern part of the state’, ONGC sources said.
At present, the company has one rig in the state and another rig is expected shortly, sources said, adding that drilling of each well would cost around Rs 40 crore on an average.
Oil India Limited (OIL) would share 25 per cent cost while remaining 75 per cent would be borne by ONGC, they said.
Of the eleven wells, five would be taken up in partnership with Oil India Ltd. The company has planned to complete the drilling of these wells by June 2015, they added.
Asked about the possibility of finding oil or gas in the current round of drilling, the source said, ‘Bengal is a geological puzzle to us. The company has drilled 60 wells in the state in the past 50 years which involved expenditure of about Rs 700 crore but no positive result has been found. ONGC had taken up drilling in the state last time in 2004-05’.
The sources said that based on the findings of the drilling, the company would take a decision regarding further drilling in the state.
‘Oil exploration is a never-ending operation. We will take a re-look at Bengal after June 2015 when the drilling operation of the 11 wells in the state would be over’, the source added.
Next Story
