1. Rising to the Deepwater Challenges:
Opportunities & Solutions to Develop Green Fields of Eastern Offshore, India
Bhaskar Konala
Manager (Reservoir)
ONGC

2. Outline Overview of east coast Potential of east coast
Deepwater definition
ONGC’s deepwater portfolio & development opportunities
Case studies
Technological challenges & solutions
Conclusions

3. Outline Overview of east coast Potential of east coast
Deepwater definition
ONGC’s deepwater portfolio & development opportunities
Case studies
Technological challenges & solutions
Conclusions

4. Krishna Godavari Basin
Overview of East Coast
India
Bengal Basin
(Category III)
Mahanadi Basin
(Category II)
Krishna Godavari Basin
(Category-1)
Bay of Bengal
Cauvery Basin
(Category-1)

5. Overview of East Coast India is an emerging deepwater region
1 million sq km sedimentary basin (Beyond 200m WD)
54 deepwater blocks offered by GOI (0.52 million Sq Km)
Aggressive exploration activities
76 exploratory wells drilled
Avg drilling density 0.15 wells/1000 Sq Km
One of the least explored regions in the world
Major discoveries in Krishna-Godavari Basin
Significant unrealized potential

6. Overview of East Coast
NELP Blocks, East Coast
India
India

7. Overview of East Coast Major strikes KG-DWN-98/3 (RIL) KG-D6 & MA-6
Krishna Godavari Basin
Major strikes
KG-DWN-98/3 (RIL)
KG-D6 & MA-6
KG-DWN-98/2 (ONGC)
DWN-D
DWN-E
DWN-A
DWN-N
Annapurna
Padmawati
Kanakadurga
DWN-U
DWN-W
Ultra Deep-1
KG-OSN-2001/3 (GSPC)
Deendayal
GSPC Blk
Andhra Pradesh
-98/3
-98/2

8. Outline Overview of east coast Potential of east coast
Deepwater definition
ONGC’s deepwater portfolio & development opportunities
Case studies
Technological challenges & solutions
Conclusions

9. Production Potential PY-3 Field, Cauvery Offshore
India
Producing from July 1997 (JV)
Water depth ~50-400m
Nannilam formation
Cretaceous age
4 wells
API 50 deg

10. Production Potential Ravva Field, KG Offshore (Shallow)
India
Hyderabad
Ravva
Producing from March 1993 (JV)
Water depth 8-15m
Ravva formation, Miocene age
21 wells
8 platforms
PI : BBl/d/ksc

11. Production Potential
KG-D6 Gas Field (KG-DWN-98/3 Block), KG Deep Offshore
Reliance discovery
Major Gas fields: D1 & D3
60 km from shoreline
Water depth m
Godavari Clay formation
Plio-Pliestocene age
High productivity reservoir
5” & 7” production tubing
18 subsea wells
60 MMm3/d gas
24”X25Km
MEG Line
Control Riser Platform
Umbilical distribution hub
Deepwater PLEM
Manifold
Flow lines
umbilical
Subsea distribution Assembly Unit
Well

12. MA-D6 Oil Field (KG-DWN-98/3 Block), KG Deep Offshore
Production Potential
MA-D6 Oil Field (KG-DWN-98/3 Block), KG Deep Offshore
Reliance discovery
Water depth m
Cretaceous age
Gross thickness : 194m
(GCG 170 m, Oil 24 m)
Good productivity reservoir
6 subsea wells tied to FPSO
35K Bpd oil

13. Outline Overview of east coast Potential of east coast
Deepwater definition
ONGC’s deepwater portfolio & development opportunities
Case studies
Technological challenges & solutions
Conclusions

14. Deepwater, Variable Definition
Different companies… different definitions…
>300m Deepwater
>1500m Ultra deepwater
Definition changing with time & technology
>500m Deepwater
>2000m Ultra deepwater
ONGC
>250m Deepwater

15. Outline Overview of east coast Potential of east coast
Deepwater definition
ONGC’s deepwater portfolio & development opportunities
Case studies
Technological challenges & solutions
Conclusions

16. ONGC’s Deepwater Portfolio
KG-DWN-98/2 Block(NELP)
DWN-D (603m)
ONGC 90% PI
Cairn 10% PI
8 gas discoveries
3 oil discoveries
Water depths m
Marginal fields
Large inter-field distances
Significant oil and gas reserves
Excellent well productivities
Waxy crude ( API 24 deg)
Low GOR
DWN-N (606m)
India
DWN-E (664m)
Padmawati (464m)
DWN-A (706m)
Annapurna (1081m)
Kanakadurga(500m)
G-2 (451m)
DWN-U (1265m)
DWN-W (1283m)
Oil
UD-1(2800m)
Gas

17. ONGC’s Deepwater Portfolio
IG Block (PEL)
India
PEL block wholly owned by ONGC
Adjacent to 98/2 NELP block
Pliocene gas in G-4
Cretaceous oil in G-4-6
Water depths ~ 450m
Marginal size discoveries
Significant reserves
Excellent well productivities
G-4 (430m)
G-4-6 (450m)
98/2 Block
Oil
Gas

18. Development Opportunities
Marginal fields with substantial reserves
Standalone development becomes sub-economical
Cluster development by categorization of fields
Grouping based on water depth, fluid type, pressure, vicinity etc.
Creating common engineering facilities
Hiring the nearby RIL infrastructure
PEL Blk
98/3 Block (RIL)
98/2 Block
Oil
Gas

19. Development Opportunities
Conceptual Development Plan
DWN-N
Oil
Gas
Expected gas and oil prod, 40 MMm3/d & 25K bpd respectively

20. Development Opportunities
Ultra-deep field
Water depth 2850m
ONGC discovery
Large free gas field
Large reserves
Good reservoir productivity
Expected gas production ~30 MMm3/d
India
Conceptual Development Plan
KG-DWN-98/2 UD
2X20X75 km UD
Fields in similar water depths developed in GoM

21. Outline Overview of east coast Potential of east coast
Deepwater definition
ONGC’s deepwater portfolio & development opportunities
Case studies
Technological challenges & solutions
Conclusions

22. Case Studies
Deepwater milestones s

23. Case Studies BC-10 Block (Campos Basin), Brazil Water depth 1600-2000m
Shell 50%, Petrobras 35% & ONGC 15%
3 fields (Ostra, Abalone & Argonauta) tied back to FPSO Espirito Santo
Heavy oil (Api 15-24°), low GOR, thin reservoirs
9 Subsea oil wells & 1 GI
Subsea oil & gas separation, oil pumped to FPSO thro ESPs
Oil production bopd
Reserves 400 Million bbls
(64 MMm3)
FPSO capacity : 100,000 BOPD
50 MMscf/d gas
Heavy oil processing
Espirito Santo
Electrical umblicals
Horizontal wells
Artificial lift

24. Case Studies Independence Hub (GOM), Ultra deep
Ten gas fields in eastern ultra deepwater GOM developed
Water depth m
Operator : Anadarko
Reserves : ~70 BCM
Mississippi Canyon Blk
Independence Hub
Gulf of Mexico Q
(2420m)
(2410m)
(2550m)
(2400m)
(2700m)
(2550m)
(2750m)
(2700m)
(2740m)
(2700m)
Fields tied-back to a deep draft semi-submersible platform (Independence Hub)

25. Case Studies Independence Hub (GOM)
Processing Capacity : 30 MMm3/d gas
Condensate : 700 m3/d
Water : 500 m3/d
Gas production : ~25 MMm3/d
No. of wells : 17
Fixed Junction Platform (West Delta 68)
Tennessee
Independence Trail (24”X 220 km)
Processed gas is transported through 24” pipeline (Independence Trail) of 220 Km

26. Oil export line 130 km & gas export line 170 km (cut & tie)
Case Studies
Perdido Development (GOM), Ultra deep
Water depth m
JV partners (Shell, Chevron & BP)
Operator : Shell (35% PI)
Topside processing : 100,000 bopd, 6MMm/d gas & 80K bwpd
Oil Production : 80,000 Bpd
22 subsea wells
Subsea gas & liquid separation
Subsea pumping to SPAR TX
Gulf of Mexico
Perdido
Perdido, Ultra deepwater SPAR
Silver Tip (2812m)
Tobago (2926m)
Frio
Great White (2438m)
Oil export line 130 km & gas export line 170 km (cut & tie)

27. Outline Overview of east coast Potential of east coast
Deepwater definition
ONGC’s deepwater portfolio & development opportunities
Case studies
Technological challenges & solutions
Conclusions

28. Technological Challenges
Reservoir characterization
Dynamic reservoir modeling
Offshore facilities and flow assurance
Uncertainty and risk analysis
Environmental issues, health & Safety

29. Technological Challenges
Reservoir characterization
G&G model from high quality seismic imaging
Robust fault modeling
Petro-physical characterization
Cores Analysis
Reservoir fluid analysis
Extended well testing
Well - A
Well - A
Sweetness
attribute
Effective porosity
model
Well - A
Well - A
Permeability
model
Net to Gross

30. Technological Challenges
Dynamic Reservoir Modeling
Up scaling of static model by MDT
Retention of reservoir heterogeneity
Reservoir fluid & rock physics modeling
Understanding drive mechanism
Achieving higher production with less wells
Placement & Type of wells (vertical, HW, Multi-lateral, intelligent)
Increased oil recovery & enhanced reserve portfolio -

31. Technological Challenges
Offshore Facilities
Concept selection
Water depth
Field size & Life
Remoteness of field location
Location of infrastructure
Number of wells / drilling centres
Dry Tree or Wet Tree
Drilling or work over capability
Production Capacity
Total Topsides weight
Riser Technologies
Constructability and lead time
Capex & Opex -

32. Technological Challenges
Offshore Facilities…
TLP (148m (Hutton) to 1500m)
FPSO (13m (Armada) up to and beyond 3000m)
Spar (500m up to and beyond 3000m)
Semi-submersible (75m (Argyll) up to and beyond 3000m)
Compliant tower (<600m)
TLP -
FPSO
Spar
Semi-submersible
Subsea to Shore, Ormen Lange
(subsea processing)
Compliant Tower

33. Technological Challenges
Flow Assurance
Prevention and remediation of;
Hydrates
Paraffin
Scales
Asphaltene
Corrosion
Erosion
Production of heavy oil with low GOR
Mechanical treatment;
Pigging
Scrapping
Chemical solvents
Thermal intervention
Sand incursion & control measures
Hydrate -
Paraffin

34. Technological Challenges
Uncertainty & Risk
Limited and uncertain data in deepwater
Key uncertainties…
Seismic & Faults
Geological model
Hydrocarbon in-place
Facies variation & Heterogeneity
Reservoir connectivity & extent
Contacts
Porosity & Permeability
Relative permeability
Drive mechanism & Aquifer strength
Recoverable reserves
Concept selection for offshore facilities
Flow assurance, etc -

35. Technological Challenges
Environment & Safety Issues
Understanding of harsh met-ocean conditions for safe & efficient deepwater development
Adequate conservation & protection of marine ecosystem
Safe disposal practices of drill cuttings, fluids & chemicals (methanol, hydrate inhibitors etc)
Effective emergency response
Compliance to safe operating practices & contingency measures
Avoiding oil spills
Gas hydrates as hazards -
Macondo oil leak
Macondo Blowout (GoM)

36. Solutions
Wide angle azimuth seismic acquisition for high resolution imaging and illumination
Robust reservoir characterization
Use of MWD and LWD while drilling (Real time monitoring) for effective geo-steering
Pore pressure management
Advanced reservoir surveillance
Extended well test
Interference test
Virtual reality
Pore Pr Prediction -
Live feed from rig
Smart gauges

37. Solutions Robust appraisal plan for delineation
Subsea cluster development of marginal fields
Intelligent wells / digital field
Controlled WI for good sweep
Multiple completions
Horizontal completions

38. Solutions
Robust concept selection, FEED and detailed design of production system leads to increased system reliability
Characterizing multiphase fluid and robust design of subsea flow system to mitigate deepwater flow assurance challenges
The uncertainty of the variables that make significant impact on the economic viability of deepwater can be identified & evaluated with experimental design
JV for deepwater expertise and risk mitigation
Effective contracting methods for timely completion of projects
Special dispensation on gas price and incentives by GOI for development of deepwater resources

39. Conclusions India is an emerging deepwater hub
World-class discoveries made in KG Basin
ONGC’s deepwater discoveries in east coast has the potential to significantly contribute to the energy demands of India
Technology is the key enabler to convert resources into economical reserves
Fields in similar water depths are developed elsewhere
Critical areas to be considered in deepwater development; Reservoir characterization, dynamic modeling, flow assurance, uncertainty & risk analysis & environment & safety issues

40. Thanks for your attention