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AWARENESS & CHALLENGES IN DEVELOPMENT OF

SHALE GAS IN CAMBAY BASIN IN WESTERN PART OF INDIA

JTI

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AWARENESS AND CHALLENGES IN DEVELOPMENT OF SHALE GAS IN CAMBAY BASIN IN WESTERN PART OF INDIA

COVERS

AWARENESS OF SH GAS RESVs AS POTENTIAL SOURCE OF CHEAP GAS BUT WITH HIGH TECHNOLOGY n KNOWLEDGEABLE SKILLED SERVICES. DISCOVERY OF SH GAS n SH OIL IN 2 VERTICAL WELLS OF JTI IN CBY BASIN, ENHANCES PROSPECTS IN CATEGORY – 1 BASINS OF INDIA COVERING 3 46 000 Km2. IDENTIFICATION, EVALUATION, DEVELOPMENT AND OPTIMIZATION OF SH GAS / SH OIL NEEDS, REPRESENTATIVE DATA FOR WHICH PARAMETRIC WELLS ARE REQUIRED OVER BASINS. POLICY ON SH GAS / SH OIL IS BEING FRAMED ALONG WITH IDENTIFICATION OF BLOCKS FOR FARMING OUT, BY END OF DEC 2011. POSSIBLE CHALLENGES IN EXPLOITATION OF SH GAS / SH OIL HAS BEEN IDENTIFIED TO CONVERT IT INTO STRENGTH. PDPU SHOULD MEET LAB n QUALIFIED MANPOWER REQUIREMENT FOR THIS VITAL VENTURE.

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AWARENESS

SH GAS HAS AWAKENED WORLD. IT SEEMS TO BE NOW POTENTIAL SOURCE OF CHEAP n ECO-FRIENDLY NATURAL GAS; HOTTEST INVESTMENT PLAYS IN ENERGY SECTOR n BURNING TOPICS AS IT HAS VAST SH GAS DEPOSITS IN CATEGORY - 1 BASIN : CBY, RJ , ASSAM – ARAKAN, K-G, CAUVERY. AREA – 3 46 000 Km2. TOC: 1 TO 6 %. IN CBY BASIN, DUE TO DEPLETION IN RESV ENERGY, GAS PRODN HAS COME TO < HALF. SH GAS MAY HELP TO MEET ORIGINALLY COMMITTED ENERGY DEMAND. IMPORTANCE OF SH GAS CAN BE JUDGED FROM INVESTMENTS MADE ABROAD BY RIL (USD >3.5 B), BPR & NEGOTIATIONS OF OIL WITH US, POLAND & AUSTRALIA. LIVELY PROGRAMME ON SH GAS IN LEADING TV CHANNELS. PROGRAMME OF DRILLING OF 4 WELLS BY ONGC IN WEST BENGAL. USD 21 MM. PLANNING OF 2 WELLS BY OIL. USD 25 MM.

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WORK SHOP n SUMMIT: “SH GAS: IDENTIFICATION, EVALUATION, DEVELOPMENT n OPTIMISATION” BY GLOBAL ENERGY TALENT. DEC 7 – 9, 2010 AT NEW DELHI “AN ORIENTATION WORK SHOP ON SH GAS” (6TH & 7TH JAN’11) ARRANGED BY PDPU IN COLLABORATION WITH MEWBOURNE SCHOOL OF PETROLEUM n GEOLOGICAL ENGINEERING, THE UNIVERSITY OF OK, NORMAN, OK, USA SEMINARS (12TH JAN’11) BY SWARNIM GJ, SUMMIT ON SH GAS. SHALE GAS ASIA 2011 SUMMIT. 23RD – 24TH FEB’11, NEW DELHI, THROUGH AMERICAN BUSINESS CONFERENCES. LECTURES n PAPERS. ON 16TH SEPT’09, BEFORE LECTURE OF GEORGE WATERS, SCHL OILFIELD SERVICES, USA ON “ COMPLETION OF HC BEARING SH RESERVOIRS” UNDER DISTINGUISHED AUTHORS SERIES UNDER SPE INDIA SECTION IN IRS, ONGC, AHM – DETAILS OF SH GAS DISCOVERY WAS GIVEN FOR BETTER APPRECIATION OF SUBJECT .

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PAPERS: IN SPE OIL & GAS INDIA CONFERENCE & EXHIBITION HELD IN MUMBAI, INDIA ON 20 – 22ND JAN’10, JTI PRESENTED IN POSTER SESSION “ GAS STRIKE IN SH RESV IN DK FIELD IN CBY BASIN” SPE 129082 PP. PAPER IADC / SPE 135664 ON “ SUCCESSFUL HYDRO FRACTURING LEADS TO OPENING OF NEW FRONTIERS IN SH GAS PRODUCTION IN CBY BASIN IN GJ” WAS PRESENTED IN IADC / SPE ASIA PACIFIC DRILLING TECHNOLOGY CONFERENCE & EXHIBITION ON 1 – 3 NOV’10 AT HO CHI MINH CITY, VIETNAM. VIETNAM PAPER IS BEING PUBLISHED BY WORLD OIL MAGAZINE, PUBLISHED BY GULF PUBLISHING CO, HOUSTON IN ENERGY SERIES ON INTERNATIONAL SHALES ON SHALE PLAYS IN DEC’10 ISSUE. INFRALINE ENERGY RESEARCH & INFORMATION SERVICES, NEW DELHI COMING OUT WITH BOOK ON SH GAS IN INDIA. IN PETROTECH – 2010, 31 OCT – 3 NOV’10, PAPER ID 20100552”SHALE GAS PROSPECTIVITY IN CBY SH INTEGRATING BASIN MODELLING & PETROPHYSICS: A CASE STUDY FROM CBY BASIN, INDIA” BY BASU OF RIL WAS PRESENTED.

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FIRST COMMERCIAL PRODN OF HC FROM CONVENTIONAL WAS FROM DEVONIAN SH IN APPALACHIN BASIN IN USA. FOLLOWED BY COMMERCIAL PRODN OF GAS FROM TIGHT BARNETT SH WHICH IS TYPE AREA FOR TIGHT RESV DEV TECHNOLOGIES n BECAME MODEL FOR SH RESV THROUGH OUT WORLD. BAKKEN SH IS COMPLEX RESV, NON-FRACTURED – SOURCE n RESERVOIR FOR GAS n OIL, HIGH PRODUCTIVITY, OVER PRESSURED n SHORT DISTANCE MIGRATION. JTI IS ACTIVELY ASSOCIATED WITH DEV OF BAKKEN SH.

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SH RESV IN USA

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NON-CONVENTIONAL SOURCE OF GAS INCLUDES – CBM, TIGHT GAS SD, SH GAS, UCG n GAS HYDRATES. PRODN FROM CBM HAS BEGUN IN MODEST WAY IN INDIA. 2 SH GAS WELLS, IN DK FIELD OF JTI, IN CBY BASIN ARE ON PRODN AFTER HYDRO FRAC. PRODN RATES THOUGH LOW HAS GREAT SIGNIFICANCE. UGC IS IN ADVANCE STAGE IN SOUTHERN PART OF GJ TIGHT GAS SD, DISCOVERED BY OILEX IN CBY BLOCK.

JTI

NON-CONVENTIONAL SOURCE OF GAS & STATUS IN INDIA

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DG

DO

MP-EXTRA DISCOVERY

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WILD CAT WELL: LUNEJ – 1 ON CAMBAY STRUCTURE BROUGHT GJ ON OIL MAP OF WORLD / PETROLIFEROUS BASINS OF WORLD AS EARLY AS 1958. NUMEROUS PAPERS ARE PUBLISHED ON CBY BASIN n STRATIGRAPHIC SUCCESSION IS WELL KNOWN. CBY BASIN IS 51 000 Km2 WITH TOTAL PROGNOSTICATED HC RESOURCES AROUND 2050 MMT. TILL 1980, IMPORTANCE WAS GIVEN TO OIL n PROSPECTS IN EOCENE SECTION. SUBSEQUENT STUDIES SHOW THAT THERE ARE NO SIGNIFICANT GAS PROSPECTS IN OLIGOCENE n MIOCENE SECTIONS. NOTABLY FREE GAS FIELDS ARE 4. FREE GAS SUB-LAYERS ARE ALSO FEW.

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CAMBAY BASIN ON OIL MAP OF WORLD

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ALMOST ALL WELLS, DRILLED THROUGH CBY ( L EOCENE) SECTION, GAVE INDICATION OF HC BUT IT WAS NEVER OCCURRED TO CONSIDER IT AS POSSIBLE RESV ROCK n TEST IT. IN DK WELL, INDICATION OF POSSIBILITY OF SH GAS WAS ONLY ON MUD LOG. ACCIDENTAL DISCOVERY. 2 NEW DISCOVERIES, 260 m APART, IN SH GAS, IN DK FIELD ARE NO LESS IMPORTANT THAN WILD CAT LUNEJ– 1 SH GAS IN DG : MAY 2009 n SH OIL IN DO : FEBRUARY, 2010. WELLS DG n DO PRODUCED GAS n OIL RESPECTIVELY AFTER CONVENTIONAL TESTING n HYDRO FRAC. WELLS ON CONTINUOUS PRODN FOR PRES – PRODN DATA. IN VIEW OF PRODN, LOGICAL TO ASSUME POROSITY > 4 PERCENT, GAS SATURATION – HIGH, TOC – 1.5 TO 4 PERCENT n VITRINITE REFLECTANCE 0.6 – 1.0 FOR OIL n 1.4 – 2.0 FOR DRY GAS.

JTI

GAS AND OIL FROM SH RESV IN CBY BASIN

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DG DO

Date of Collection 23.05.2009 23.02.2010 15.02.2010

Date of Analysis 26.05.2009 26.02.2010 16.02.2010

Methane 60.44 69.99 62.78

Ethane 8.33 9.98 9.75

Propane 13.09 6.76 9.63

(i) Butane 4.44 0.74 1.58

n-Butane 5.66 1.21 2.80

i-Pentane 2.29 0.24 0.75

n-Pentane 2.31 0.3 0.92

Hexanes + 2.32 1.19 2.35

CO2 1.02 9.4 9.25

N2 / Air 0.09 0.19 0.19

Sp.Gr. (Air=1) 1.0235 0.8269 0.9374

Net Calorific Value K Cals/m3 13945 96.79 11134

Gross Calorific value K Cals/m3 15259 10.659 12219

Mol.Wt. 29.64 23.95 27.15

DHOLKA FIELD

GAS ANALYSIS ( DG & DO )

DescriptionShale Gas Solution Gas To

Consumers

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GAS COMPOSITION OF WELL DG IS TOTALLY DIFFERENT FROM SOLN GAS BEING SUPPLIED TO CONSUMERS n SOLN GAS OF WELL DO. IN DG, PERCENT OF PROPANE TO n-PENTANE n CALORIFIC VALUES > SOLN GAS. IN DO, OIL GRAVITY – 39 API. PROPANE TO HEXANE + n CALORIFIC VALUES < GAS OF DG n SOLN GAS. IN DO SOLN GAS IS DIFFERENT FROM SOLN GAS FROM FIELD.

JTI

SH GAS COMPOSITION

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DISCOVERY OF SH GAS / SH OIL IN 2 VERTICAL WELLS OF DK HAS OPENED NEW FRONTIER FOR EXPLORATION IN THICK CBY SH IN MATURED CBY BASIN. RE-EXAMINATION OF CAMBAY BASIN, IN LIGHT OF RESULTS OF WELLS DG n DO SHOWS THAT CBY – TARAPUR n AHMEDABAD BLOCK AREA DESERVES PRIORITY FOR EXPLOITATION OF SH GAS. IT IS FELT THAT THERE WILL BE SUBSTANTIAL INCREASE IN GAS RESERVES LIKE US. REQUISITE INFORMATION IS NOT AVAILABLE FOR ESTIMATION OF GAS RESERVES.

JTI

SH GAS AND SH OIL PROSPECTS IN CBY BASIN

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THERE IS NO DOUBT ABOUT PRODN OF GAS n OIL FROM SH RESERVOIRS IN MATURED CBY BASIN. BASIN BEING LARGE n CBY SH RESV THICK, FOR ASSESSMENT OF GAS RESERVES n LOGICAL SCHEME OF DEV, ADDL REPRESENTATIVE INFORMATION IS ESSENTIAL. THIS CALLS FOR DRILLING OF PARAMETRIC WELLS OVER CBY BASIN. - WIDE VARIATIONS A n V; UNIQUE COMPLETION; STMULATION DESIGN.

THIS INVOLVES CORING n SPECIAL CORE ANALYSIS, SPECIAL LOGGING and TIEING OF DATA. DETAILS OF HORIZONTAL WELLS, ALREADY DRILLED IN CBY BASIN WILL BE HELPFUL FOR HEALTHY COMPLETION OF HORWELLS. COMMERCIAL PRODN FROM SH GAS RESV CAN ONLY BE POSSIBLE WITH HORWELL DRILLING TECHNOLOGY, MULTI-STAGE MHF n HIGHER GAS PRICE. FOR MAXIMISATION OF PRODN, NEEDS SOUND RESV MGT n KNOWLEDGEABLE SKILLED HANDS. PDPU BEING IN COVITED POSITION SHOULD ACCEPT CHALLENGES n MAKE AVAILABLE REQUISITE QUALITY SERVICES.

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GENERATION OF BASIC DATA

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Multi-stage treatments using isolating packers

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POLICY ON SG GAS

TO EXPEDITE DEV OF SH GAS, DGH HAS BEEN ASKED TO FRAME POLICY ON SHALE GAS n IDENTIFY BLOCKS FOR DEV BY END OF 2011. A MULTI-ORGANISATIONAL TEAM (MOT) CONSISTING OF DGH, ONGC, GAIL, OIL n KDMIPE HAS BEEN FORMED. AS PER MOU SIGNED ON 8TH NOV’ 10, US WILL ALSO HELP IN KNOWLEDGE SHARING, IDENTIFICATION OF SH GAS RESOURCES, FRAMING POLICY ON SH GAS n TECHNOLOGY FOR DEV OF SH GAS. ADVANTAGE WILL HAVE TO BE TAKEN OF US EXPRTISE TO REDUCE DEV TIME TO 5-6 YRS AS AGAINST 12 YRS TAKEN FROM VERTCAL TO COMMERTIAL GAS FROM HORWELL n MULTI - STAGE FRAC . MoP&NG POSSIBLY ACCORDING MAJOR & ACTIVE ROLE TO STATE GOVT. – ACQUISITION O LAND, LAND RENTS, GPCB CLEARANCES BESIDES PROFIT PETROLEUM OVER n ABOVE ROYALTY ON GAS.

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JTI CHALLENGES IN EXPL AND EXPLOITATION

IN FRAMING POLICY ON SH GAS, IT SEEMS MORE THAN ONE OPERATOR WILL BE WORKING, IN SAME BLOCK. THIS OPTION IS BOUND TO POSE SERIOUS CHALLENGES: MULTI-LAYERED HC RESERVOIRS WITHIN CBY SH. VERTICAL n LATERAL COMMUNICATION RESULTING FROM FRAC JOBS LAND AROUND WELL-PAD. QUANTITY n QUALITY OF WATER . WELL DESIGNS n CEMENT BOND IN OLD WELLS ; INHERENT ROCK PROPERTIES FOR STABLE HORIZONTAL WELL SECTION. SOPHISTICATED EQUIPMENT WITH KNOWLEDGEABLE SKILLED PERSONNEL, TIMELY.

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MAJOR OPERATORS ONGC, GSPCL n RIL ARE HAVING MAX PEL n ML AREA IN ONLAND n OFFSHORE AREAS n PRODUCING GAS. POSSIBILITY OF AGGRESSIVE BIDDING IN ON LAND CATEGORY – 1 BASIN n CLAIM FOR EXPERIENCE ABROAD EXISTS POSSIBLY TO CONTROL GAS PRICE OF OFFSHORE AREAS WHICH MAY BE HIGHER.

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JTI

CONCLUSIONS POLICY ON SH GAS BEING ANNOUNCED BY MoP&NG SHOULD HELP TO DISCOVER, EXPLORE n INCREASE PRODN OF HC, ECONOMICALLY FROM SH GAS RESERVOIRS IN CATEGORY BASIN – 1. PRESENCE OF HC IN SH RESV AT SHALLOW DEPTHS IN 2 DK WELLS IN CBY BASIN HAS BEEN PROVED n NEED PRIORITY FOR DEV. FOR EVALUATION n DEV OF SH GAS / SH OIL, NEEDS PARAMETRIC WELLS OVER CBY BASIN. SOPHISTICATED EQUIPMENT AND KNOWLEDGEABLE n SKILLED SERVICES ARE ESSENTIAL FOR MF & HEALTHY HORWELLS. NOT AVAILABLE IN INDIA. CARE MAY HAVE TO BE TAKEN TO ENSURE THAT TECHNOLOGY ADVANCEMENT n GAS PRICE WAR SHOULD NOT COME IN WAY OF EXPEDITIOUS DEV OF SH GAS DUE TO DRASTIC REDUCTION IN GAS PRICE LIKE IN US. DIRE NEED : LAB FACILITIES N RESV. MGT. TEAM