Theme Maximizing Asset Value with IOR / EOR India Drilling & Exploration Conference (IDEC) – 2013 23-24 May 2013, Mumbai ONGC a Wealth Creator

Most valuable Indian PSU IOR / EOR ?? IOR …….includes all methods for supplementing natural reservoir forces and energy Pressure Maintenance, Recycling of produced fluids Secondary recovery in its original sense i.e. fluid injection /stimulation/artificial lift within an economic limit. EOR …. defined as oil recovery by the injection of materials normally not present in reservoir. does exclude water-flooding and is intended to exclude all pressure maintenance processes. Source : SPE Petroleum Reservoir Management Catalogue Most valuable Indian PSU 2

# 21 Energy Company in the World IOR / EOR … Views from Literature Dr Farouq Ali, during a Webinar on 17 May 2012 Quote : My definition for EOR is recovery of the oil left after a waterflood for any oil. IOR is good Reservoir Engineering, horizontal wells, infill drilling etc. plus EOR. Unquote # 21 Energy Company in the World 3

IOR / EOR …. experience in ONGC

A FORTUNE Global 500 Company IOR-EOR …. Targeted 15 major fields thru structured IOR/EOR schemes Acreage reduction Water Injection Redistribution A/L Optimization Hi-tech drilling Sustained oil production of ~20 MMt in Majors A FORTUNE Global 500 Company

Most valuable Indian PSU Next Campaign Rolling Dev Campaign in Offshore Majors Integrated development Tapping Bypassed oil Improved Reservoir characterization Ph-III IOR for Major & Medium sized fields of Onshore Revamp/enhancement of surface facilities factored Most valuable Indian PSU

# 21 Energy Company in the World Increasing Asset Value … IOR Examples Offshore Carbonate Reservoir 20 40 60 80 100 120 140 160 180 200 Base IOR (FR) IOR (RFR) IOR Ph- II Np, MMt 5 10 15 25 30 35 45 50 RF, % Cum. Oil Production, MMt Offshore Major 10 20 30 40 50 60 70 80 90 100 Phase- I+II III Field growth Part-I Part-II Redev Np, MMt 5 15 25 35 45 RF, % Cum. Oil Production, MMt # 21 Energy Company in the World

# 21 Energy Company in the World EOR Efforts Commercial Scale Miscible Gas Injection Bold Reservoir Management decision to halt production to achieve MMP ISC Thermal Process Largest ISC implementation in Heavy Oil belt - A game changer Polymer flood Possibility of achieving + 36% RF as against 15% from water flood MEOR (now a Patented Technology) Putting life to stripper wells thru huff-n-puff mode Ready with MEOR in flood mode Proven EOR Pilots WAG in multi-layered reservoir ASP in WON Future Vision of EOR Entry of ISC Process in Light Oil, CSS Field Scale WAG Low salinity / Low IFT water flood Solution search for EOR in Offshore # 21 Energy Company in the World

# 21 Energy Company in the World Increasing Asset Value … EOR Examples Miscible Gas Injection Multi-layered reservoir Depth 2000m Sandstone with heterogeneity Temp ~ 120°C Thermal Process High viscosity (100 – 2000 cp) Multi-layered reservoir Moderate depth ~1200m Sandstone with good K, Phi Water drive # 21 Energy Company in the World

# 21 Energy Company in the World EOR Projects for Tomorrow EOR technology : Some proven processes already in operation, several evolved to trial stage, and many more still in R&D phase LOSAL : Change in rock fluid interaction and multi cation exchange, releasing entrapped oil from rock surface Increased displacement efficiency of 10%. Works better in presence of non swelling clays Viscoelastic surfactants : a new class of chemicals used to loosen grip of oil on rock by reducing interfacial tension Tight formations, high salinities For reservoir temp. upto 100°C An Alkaline Surfactant Foam (ASF) flood with AS pre-flush : designed to recover all the oil present in core after water flooding Needs more studies to optimize the process # 21 Energy Company in the World

# 21 Energy Company in the World EOR Projects for Tomorrow EOR technology : Some proven processes already in operation, several evolved to trial stage, and many more still in R&D phase Improving efficiency of cyclic steam by thermo-reversible gel-forming systems(GFS) Gel blocks high permeable channels and increases conformance of thermal steam treatment Heterogenetic combination flooding system of Preformed Particle Gel (PPG) PPG’s 3D network and polymer chains lead to increased visco-elasticity and sweep volume to improve recovery Colloidal Dispersion Gels (CDGs): CDGs lightly cross-linked polyacrylamide gels formed in-situ; Salinity independent and alternative to high salinity polymer flood projects requiring high polymer concentration Nanoparticles to increase viscosity of injection fluid and reduce mobility contrast Can serve for IFT reduction, foam stabilization, and alteration of wettability # 21 Energy Company in the World

# 21 Energy Company in the World Concluding Thoughts ….. Maximizing Asset Value with IOR/EOR – Is a Moving WIN Post (Continuous Exercise) – Thrust on Major fields to have global impact 40 % 50 % 20 % 30 % No unique solution for every Field/Reservoir Technology and Price Dependent Infrastructure revamping coupled with high tech drilling/ completion will aid in improving Asset Value Role of EOR is of prime importance for mature fields New and emerging EOR technologies hold promise # 21 Energy Company in the World

Water / Gas : Reinjection Recovery Mechanisms Primary Recovery Natural Flow Artificial Lift Pump – Gas Lift etc. Secondary Tertiary Water Flood Pressure Maintenance Water / Gas : Reinjection Thermal Miscible, Solvent Others MEOR, CO2 .. Chemical Conventional Enhanced A FORTUNE Global 500 Company

IOR / EOR … Views from Literature Of the two, the term EOR has clearer definition. EOR refers to Reservoir Processes that recover oil not produced by Secondary Processes. Primary recovery uses natural energy to produce oil/gas Secondary recovery uses injectants to re-pressurize the reservoir and to displace oil to producers (WI, GI) EOR Processes Target what is left Focuses on Rock/Oil/Injection system and interplay of Capillary and Viscous Forces IOR refers to any practice to increase oil recovery that may include EOR processes, as well as practices to increase sweep such as infill drilling, horizontal wells etc. Source : Guest Editorial, JPT 2003 ONGC a Wealth Creator 14