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Offshore Regions) STATE REVIEWS Indian Minerals Yearbook 2013 (Part- I) 52nd Edition STATE REVIEWS (Offshore Regions) (FINAL RELEASE) GOVERNMENT OF INDIA MINISTRY OF MINES INDIAN BUREAU OF MINES Indira Bhavan, Civil Lines, NAGPUR – 440 001 PHONE/FAX NO. (0712) 2565471 PBX : (0712) 2562649, 2560544, 2560648 E-MAIL : [email protected] Website: www.ibm.gov.in September, 2015 11-1 STATE REVIEWS OFFSHORE REGIONS As a sequel, the Controller General, Indian Bureau of Mines has been notified as the ''administering authority'' and ''authorised The Government of India notified the officer'' under Section 4 and Clause (i) of Offshore Areas Minerals (Development & Section 22 of the Act vide S.O.339(E) and Regulation) Act, 2002 (OAMDR Act), No. 17 of 340(E) dated 11.2.2010. The Secretary, Ministry 2003 in the Gazette of India, Extraordinary, of Mines has been notified as ''authorised Part-II, Section-1, No. 17, dated 31.1.2003. The officer'' to hear and decide cases relating to purpose of the Act is to provide for development Clauses (a) and (b) of Section 28(1) vide and regulation of mineral resources in the S.O.341(E) dated 11.2.2010. territorial waters, continental shelf, exclusive As per S.O.134(E) dated 7.6.2010, The economic zone and other maritime zones of Controller General, Indian Bureau of Mines India and to provide for matters connected has notified the mineral bearing offshore therewith or incidental thereto. The Act is blocks available for grant of Exploration applicable to all minerals in offshore areas Licence. As per the attached Schedule to the said including minerals prescribed under Atomic Notification, there are 26 offshore areas available in offshore waters of Bay of Bengal and Energy Act, 1962, but excludes oils and related 36 offshore areas in the offshore waters of hydrocarbons as there is separate legislation Arabian Sea for grant of Exploration Licence. for them in force. The Act came into effect from The Geological Survey of India and National 15.1.2010 vide S.O.338(E), dated 11.2.2010 Institute of Oceanography (NIO) have carried notified by the Central Government. out exploration in these areas. The Act makes it mandatory to undertake The Government of India had announced reconnaissance, exploration or production the New Exploration Licensing Policy (NELP) operation in the offshore areas in accordance in 2000 under which blocks for exploration of with the prescribed terms and conditions oil and gas were on offer for bidding. The NELP provides an international class fiscal and for reconnaissance permit (RP), exploration contract framework for exploration and licence (EL) or production lease (PL) granted production of hydrocarbons. The details of the under the Act and the rules made thereunder. exploration blocks awarded in NELP rounds are The availability of the areas for grant of RP, EL as below: or PL shall be notified within six months from the commencement of the Act, and subsequently Details of exploration block awarded at such times as considered necessary. The Act Round Month, year No. of Awarded Present* empowers the Central Government to make blocks Area Area rules for the purpose of the Act including terms awarded (sq km) (sq km) and conditions under the RP, EL, PL, etc. The NELP-I Apr, 2000 24 230147 47774 Rules, namely, the Offshore Areas Mineral NELP-II July, 2001 23 267883 16154 Concession Rules, 2006 have been framed NELP-III Feb, 2003 23 204588 100674 and notified on 3.11.2006 by G.S.R.691(E) NELP-IV Feb, 2004 20 192810 112487 published in the Gazette of India, Extraordinary, NELP-V Dec, 2005 20 115180 58926 Part II, Section 3 (i), No. 539, dated 4.11.2006. NELP-VI Mar, 2007 52 306389 306227 The Rules have come into effect on the date on NELP-VII Dec, 2008 41 112955 112955 which the Offshore Areas Mineral (Development NELP-VIII Jun, 2010 32 52573 52573 and Regulation) Act, 2002 came into force, NELP-IX Mar, 2012 14 14491 14491 i.e, 15.1.2010. * Status of area as on 01.04.2013. 11-2 STATE REVIEWS In order to explore and produce new oil and natural gas in offshore areas accounted sources of natural gas from coal-bearing areas, for 58% and 77% of total reserves, respectively. the Government had formulated a CBM Policy As on 1.4.2013, proved and indicated reserves in 1997 and implemented in 2000 providing of crude oil and natural gas in offshore areas attractive fiscal and contractual framework have been updated to 426.84 million tonnes and for exploration and production of CBM which 1001.42 billion cu m, respectively. is an environment friendly clean gas fuel similar to conventional natural gas. ONGC The Government of India has awarded ONGC continued its operations for exploration 33 CBM blocks in Jharkhand (7), Madhya Pradesh of oil and gas in offshore areas of the country (7), Chhattisgarh (3), Rajasthan (4), West Bengal in Cambay Basin, Gujarat; Krishna-Godavari (4), Andhra Pradesh (2), Odisha (2), Assam (1), (Andhra Pradesh); Cauvery (Tamil Nadu); Gujarat (1), Maharashtra (1) and Tamil Nadu (1) West Bengal and in East Coast and West Coast in different coalfields of India under CBM-I to offshore areas. IV. Out of 33 CBM awarded, total 3 CBM blocks During 2012-13, ONGC acquired a total have already been relinquished in Gujarat, of 140.97 GLKM of 2D and 844.25 SKM of 3D Madhya Pradesh and Maharashtra (one CBM seismic data in the onland area . block in each). In CBM-IV, the Government of India awarded 7 CBM blocks in Assam, During 2012-13, ONGC reported new offshore Chhattisgarh, Madhya Pradesh, Odisha and hydrocarbons discoveries, namely, C-23-9, C-1-6, Tamil Nadu. Exploration activities have GK-28-2 and GK-28-3 in Western Offshore established significant finds in eastern and basin; GS-KV-1,GS-21-3 and GS-29-6 in KG central India. Commercial production of CBM Offshore basin and MDW-10 in MBA basin. has commenced from July 2007. The Ministry of Petroleum & Natural Gas Reliance Industries Ltd (RIL) has announced a Bio-diesel Purchase Policy There are 4 blocks which are under effective from 1.1.2006. Under this scheme, Oil- development and production including KG-D6 in marketing companies would purchase Bio-diesel Krishna Godavari offshore basin, Panna-Mukta for blending with High Speed Diesel to the and Tapti in Mumbai offshore basin and NEC-25 extent of 5% at 20 purchase centres identified in the Mahanadi basin. across the country. As no suppliers have come KG-D6 Block: The KG-D6 fields produced forward to offer Bio-diesel at these designated 336 BCF of natural gas and 3.31 million barrels centres at the declared prices, the blending of (MMBBL) of crude oil and condensate in 2012-13, Bio-diesel with HSD could not be set in motion. reduction of 41% in case of liquid portion and 39% in case of natural gas on a Y-o-Y basis. The Resources average production during the year was at Deposits of hydrocarbon are located in 26 million metric standard cubic meter per the offshore areas in the Mumbai offshore and day (MMSCMD) of natural gas and 9,225 Cambay basin on the west coast and Cauvery and barrels of oil per day (BOPD) of crude oil. The Krishna-Godavari basins on the east coast. fall in production is mainly attributed to The resources of hydrocarbon in offshore areas geological complexity, natural decline in the are furnished in Table-1. The reserves of crude fields and higher than envisaged water ingress. 11-3 STATE REVIEWS To augment production from the current fields initiatives, PMT JV has already completed further (D1-D3 and MA), various Base Management infill wells in Mid Tapti and one in South Tapti. actions have been planned for maximising Together, these are currently producing gas and value from these fields. These include work oil at the rate of 0.80 MMSCMD. PMT JV has also overs, side tracks, compressor, enhancement identified to complete further infill wells along with of water handling capacity and a new well in six wells in Panna-L area in 2013-14. the MA field to be undertaken in 2013-14. The Additionally, Mukta-B development and field development plan for R-Cluster, submitted drilling of exploratory prospects in Greater Mid in January 2013, proposed to maximise Tapti have also been planned for future. Mukta-B infrastructure utilisation of existing D1 and development studies are being undertaken to D3 hub. Similarly, development of all satellite continuously assess and define a potential discoveries is being planned as part of development plan. an integrated concept. Additionally, potential upside through Other Blocks (NEC-25): The Company has resource accretion is being targeted by submitted an Integrated Block Development Plan undertaking exploration drilling in the existing (IBDP) for four discoveries (D-32, D-40, D-9 and production area with the approval of Government D-10) proposing for a phased manner of India. Currently, MJ1 exploratory well in D1-D3 development. During the current year, the key pre- ML area is under drilling. The well is targeting development activity such as conceptual the Mesozoic synrift clastic petroleum system, engineering was completed in order to facilitate similar to the MA oil and gas field. the finalisation of development plan. Further, RIL has submitted a proposal for drill stem testing Panna-Mukta and Tapti (PMT) Block: During (DST) in J discovery to DGH. 2012-13, PMT JV achieved the significant milestone of 500 million barrels of oil equivalent Domestic Exploration Blocks (MMBOE) of oil and gas production.
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