Journal of Petrotech June 2012

10TH INTERNATIONAL OIL & GAS CONFERENCE AND EXHIBITION

14th -17th October 2012, New Delhi www.petrotech.in

Hydrocarbon and Beyond: Changing Landscape

Vol. VII Issue 5 April - June 2012

Panaromic View of HMEL Bhatinda Refinery (Cover Story)

Petrotech 2010Delegates: 3836









C O N T E N T SForeword Sudhir Vasudeva, Chairman Petrotech, CMD ONGC 3

Messages Naresh Kumar, President Petrotech & CMD, Deepwater Drilling Industries Ltd. 5 Ashok Anand, Director General Petrotech 6

Editorial Anand Kumar, Director Petrotech 7

Petrotech welcomes New Corporate Leaders of Oil and Gas Industry 9

CEOs SpeakR K Singh, Chairman and MD BPCL 12A K Balyan, CEO & MD Petronet LNG

Cover StoryHPCL-Mittal Energy Limited 15

Drilling Technology - AdvancesLaser Drilling Technology – Future of Hydrocarbon Industry 18Shailendra Dutta

Unearthing the potential of digital oilfield technology 24 Source: From Public Publication of Deloitte

Undrained oil production from a 55 years old field 26 Sasanka Sekhar Deb

Project Management Chennai- Bangalore Product Pipeline Project: An Engineering Marvel in Project Implementation 29U K Dhoot

Sustainability Carbon & Water Management for Indian Hydrocarbon Industry 34Rajkumar Ghosh

Alternative Energy Residential Solar Electricity in Delhi-A Case Study 40Chudamani Ratnam

Asset Reliability Ultrasonic Energy Measurement 44Mike Johnson and John Ward

20 Minutes with... 48Karl M Phipps

STLE Certification 50Dr Robert M Gresham

CSR ONGC- A company that cares 52

CSR - A Lawful conformation today 54Dr U D Choubey

Back2School Fundamentals of E&P 57

Distillation Troubleshooting 60

Special Feature: Women in BusinessWomen Leaders of Indian Oil Industry 62Arpana Anand

TechScsn 65

Industry Kaleidoscope 69

Book Scan 71

Petrotech Activities 72

Editorial Team

Ashok Anand

Director General

Anand Kumar

Director & Editor

G Sarpal

Secretary

Suman Gupta

Manager

The views expressed by the authors are their

own, and do not neccessarily represent that of

the Petrotech.

Published by

Petrotech at 601-603, Tolstoy House,

Tolstoy Marg, Connaught Place, New Delhi - 110 001

Corporate Members

JoP, April-June 2012 3

Dear Colleagues,

Technology is a key enabler;Technology is a key differentiator;Technology is a key business driver;Technology is a key strategic resource;Technology is also a key cost saver; please allow me to elaborate.

The general belief is that just as all cost indices move up with time, so do our operating costs. In fact an inter-temporal graphical representation of operating expenditure of most of our companies in the hydrocarbon space will invariably indicate an acclivity.

I too held firm to this belief until a report of the US Department of Energy of 1999 vintage came to my attention. This report entitled “Environmental Benefits of Advanced Oil and Gas Exploration and Production Technology” determines that (reproduced from the said report):

• 22,000fewerwellsareneededonanannualbasistodevelopthesameamountofoilandgasreservesasweredevelopedin1985

• Hadtechnologyremainedconstantsince1985,itwouldtaketwowellstoproducethesameamountofoilandnaturalgasasone1985well.However,advancesintechnologymeanthatonewelltodaycanproducetwotimesasmuchasasingle1985well

• Drillingwasteshavedecreasedbyasmuchas148millionbarrelsduetoincreasedwellproductivityandfewerwells

• Thedrillingfootprintofwellpadshasdecreasedbyasmuchas70percentduetoadvanceddrillingtechnology,whichisextremelyusefulfor drilling in sensitive areas

• Byusingmodulardrillingrigsandslim-holedrilling,thesizeandweightofdrillingrigscanbereducedbyupto75percentovertraditionaldrilling rigs, reducing their surface impact

• Hadtechnology,andthusdrillingfootprints,remainedat1985levels,today’sdrillingfootprintswouldtakeupanadditional17,000acresof land

ThedatacapturesimpactoftechnologicalbenefittotheE&Pindustryfrom1985to1999.Surprisingly,nofurtherstudyappearstohavebeencommissioned on how technology in our industry has been a cost saver and efficiency multiplier rolled into one.

Wecouldthereforedrawtheinferencethatwhileour‘opex’trendsinvariablyhead‘North’,thesteepnessofthisacclivitywouldhavebeenmuch more pronounced, had technological evolution remained a constant.

Aswemovedeeperintobrown-fielddevelopment,‘reflectiveseismictechnology’nowenablespreciselocationof‘oilpools’thatwerehitherto‘invisible’tous,therebygreatlyreducingdrillingcostasalsoenablingustomonetise‘lost’production;aclearcaseofefficiencymultiplicationinaction.Insimilarvein,‘through–tuberotarydrilling’,‘slim–hole’drilling,‘horizontalproductiondrilling’facilitatedby‘tight–turn’drillingtechnology,‘coiledtubing’,‘measuringwhiledrilling(MWD)’,‘CO2–sandfracturing’arebutafewdevelopmentsthatconstantlyenableustoenhance production levels as well as to rein – in operating expenditure that would otherwise have increased exponentially.

Asinmaintenanceofexistingoperations,thechallengesofmonetising‘exigenthydrocarbon’,especiallydeepwaterandunconventionalresourcesare also being addressed by technological evolution. Deep and Ultra – deep operations are as scientifically complex and challenging as space programmes, perhaps even more so, yet we are there and improving our confidence each day through the inevitable process of iteration in fine-tuningandcustomisingproducts.TheShalegas revolutionandnowShaleoil,emerged fromdevelopments in‘hydro-fracking’andnowasthistechnologyincreasinglydrawsflackforitsadverseenvironmentalfootprint,propane–based‘fracking’hasbeendevelopedandimplemented that completely eliminates use of water, a most precious resource.

Disruptive technology is constantly being developed to radically change the way we presently operate; a few examples for your consideration:

• ‘NXTEnergySolutions’claimtoraisethesuccessoffirst–passprospectingfortrappedhydrocarbonreservesundergroundbyupto70%bydeployingtheirunique“StressFieldDetectionSurveys’.PioneeringcompaniessuchasEcopetrolandPacificRubialeshavealreadyadopted it

• Coaltoliquidispassé;coaltochemicalssuchasammoniaandmethanolisthenextbigthing.Whileafewplantsareinoperationinthe

Foreword

xgui

Highlight

JoP, April-June 20124

UnitedStates,it isChinathatisgivingthisconceptthebigpushwithaninvestmentofnearlyUS$140Billionoverfiveyearsintothistechnology

• MantraVentures,apioneerintheCarbonCaptureandRecyclespace(CCR),proposetodeployaprocesstermed‘Electro-reductionofCarbonDioxide(ERC)thatcombines‘captured’carbondioxidewithwatertoproducehighvaluematerialssuchasformicacid,formatesalts,oxalicacid,andmethanol.Theytoohavefoundsupportfroma$12Bmarketcapcompany,Lafarge(OTC–LFRGY),thelargestbuild-ingmaterialsproviderinNorthAmericaandPowertechLabsInc.,asubsidiaryofCanadianutilityBCHydrothatspecializesinthedesignand testing of clean energy systems

These are a few examples of tech – savvy pioneers placing huge bets hinged on disruptive technology that have found crucial support from established industry players. There would surely be many more such examples and it would be most enlightening for our readers if they were to find space in this journal. I invite you to share your views on these and other related subjects that could be highlighted in the next editions of this journal.

Meanwhile,HappyReading!!!

Sudhir VasudevaChairman, PetrotechCMD ONGC

Journal of Petrotech June 2012

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