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Vol. VII Issue 5 	                    April - June 2012




                                                                                        Petrotech 2010
                                                                                        Delegates: 3836




Petrotech 2009
Delegates: 3715

       Petrotech 2007
       Delegates: 4032

          Petrotech 2005
           Delegates: 3872

            Petrotech 2003
             Delegates: 3376

                Petrotech 2001
                  Delegates: 2676
                                                              Petrotech 1999
                                                              Delegates: 1875
                    Petrotech 1997
                     Delegates: 1500
                                                          Petrotech 1995
                                                          Delegates: 1591




                                    10TH INTERNATIONAL OIL & GAS CONFERENCE AND EXHIBITION
                         Hydrocarbon and Beyond: Changing Landscape
                               14th -17th October 2012, New Delhi
                                                www.petrotech.in




                                                                                        Panaromic View of HMEL Bhatinda Refinery (Cover Story)
Corporate Members                                                                      CONTENTS
                                                     Foreword	
                                                     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 Speak
                                                     R K Singh, Chairman and MD BPCL 	                                              12
                                                     A K Balyan, CEO & MD Petronet LNG

                                                     Cover Story
                                                     HPCL-Mittal Energy Limited 	                                                   15

                                                     Drilling Technology - Advances
                                                     Laser Drilling Technology – Future of Hydrocarbon Industry	                    18
                                                     Shailendra 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	29
                                                     U K Dhoot	

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

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

                                                     Asset Reliability
                                                     Ultrasonic Energy Measurement	                                                 44
                                                     Mike Johnson and John Ward
                  Editorial Team
                                                     20 Minutes with...	                                                            48
                                                     Karl M Phipps
                     Ashok Anand
                     Director General                STLE Certification	                                                            50
                                                     Dr Robert M Gresham
                    Anand Kumar
                     Director & Editor
                                                     CSR
                                                     ONGC- A company that cares	                                                    52
                        G Sarpal                     CSR - A Lawful conformation today	                                             54
                        Secretary                    Dr U D Choubey

                     Suman Gupta
                                                     Back2School
                                                     Fundamentals of E&P	                                                           57
                        Manager
                                                     Distillation Troubleshooting	                                                  60

The views expressed by the authors are their
                                                     Special Feature: Women in Business
                                                     Women Leaders of Indian Oil Industry	                                          62
own, and do not neccessarily represent that of
                                                     Arpana Anand
the Petrotech.
                                                     TechScsn	                                                                      65
Published by
Petrotech at 601-603, Tolstoy House,
                                                     Industry Kaleidoscope	                                                         69
Tolstoy Marg, Connaught Place, New Delhi - 110 001   Book Scan	                                                                     71

                                                     Petrotech Activities	                                                          72
Foreword


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):

•	 22,000 fewer wells are needed on an annual basis to develop the same amount of oil and gas reserves as were developed in 1985

•	 Had technology remained constant since 1985, it would take two wells to produce the same amount of oil and natural gas as one 1985
   well. However, advances in technology mean that one well today can produce two times as much as a single 1985 well

•	 Drilling wastes have decreased by as much as 148 million barrels due to increased well productivity and fewer wells

•	 The drilling footprint of well pads has decreased by as much as 70 percent due to advanced drilling technology, which is extremely useful
   for drilling in sensitive areas

•	 By using modular drilling rigs and slim-hole drilling, the size and weight of drilling rigs can be reduced by up to 75 percent over traditional
   drilling rigs, reducing their surface impact

•	 Had technology, and thus drilling footprints, remained at 1985 levels, today’s drilling footprints would take up an additional 17,000 acres
   of land

The data captures impact of technological benefit to the E & P industry from 1985 to 1999. Surprisingly, no further study appears to have been
commissioned on how technology in our industry has been a cost saver and efficiency multiplier rolled into one.

We could therefore draw the inference that while our ‘opex’ trends invariably head ‘North’, the steepness of this acclivity would have been
much more pronounced, had technological evolution remained a constant.

As we move deeper into brown-field development, ‘reflective seismic technology’ now enables precise location of ‘oil pools’ that were hitherto
‘invisible’ to us, thereby greatly reducing drilling cost as also enabling us to monetise ‘lost’ production; a clear case of efficiency multiplication
in action. In similar vein, ‘through – tube rotary drilling’, ‘slim – hole’ drilling, ‘horizontal production drilling’ facilitated by ‘tight – turn’ drilling
technology, ‘coiled tubing’, ‘measuring while drilling (MWD)’, ‘CO2 – sand fracturing’ are but a few developments that constantly enable us to
enhance production levels as well as to rein – in operating expenditure that would otherwise have increased exponentially.

As in maintenance of existing operations, the challenges of monetising ‘exigent hydrocarbon’, especially deepwater and unconventional resources
are 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-tuning and customising products. The Shale gas revolution and now Shale oil, emerged from developments in ‘hydro-fracking’ and
now as this technology increasingly draws flack for its adverse environmental footprint, propane – based ‘fracking’ has been developed and
implemented 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:

•	 ‘NXT Energy Solutions’ claim to raise the success of first – pass prospecting for trapped hydrocarbon reserves underground by up to 70%
   by deploying their unique “Stress Field Detection Surveys’. Pioneering companies such as Ecopetrol and Pacific Rubiales have already
   adopted it

•	 Coal to liquid is passé; coal to chemicals such as ammonia and methanol is the next big thing. While a few plants are in operation in the



                                                                                                                                 JoP, April-June 2012           3
United States, it is China that is giving this concept the big push with an investment of nearly US$ 140 Billion over five years into this
       technology

    •	 Mantra Ventures, a pioneer in the Carbon Capture and Recycle space (CCR), propose to deploy a process termed ‘Electro-reduction of
       Carbon Dioxide (ERC) that combines ‘captured’ carbon dioxide with water to produce high value materials such as formic acid, formate
       salts, oxalic acid, and methanol. They too have found support from a $12B market cap company, Lafarge (OTC – LFRGY), the largest build-
       ing materials provider in North America and Powertech Labs Inc., a subsidiary of Canadian utility BC Hydro that specializes in the design
       and 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, Happy Reading !!!




    Sudhir Vasudeva
    Chairman, Petrotech
    CMD ONGC




4   JoP, April-June 2012

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Journal of Petrotech June 2012

  • 1. Vol. VII Issue 5 April - June 2012 Petrotech 2010 Delegates: 3836 Petrotech 2009 Delegates: 3715 Petrotech 2007 Delegates: 4032 Petrotech 2005 Delegates: 3872 Petrotech 2003 Delegates: 3376 Petrotech 2001 Delegates: 2676 Petrotech 1999 Delegates: 1875 Petrotech 1997 Delegates: 1500 Petrotech 1995 Delegates: 1591 10TH INTERNATIONAL OIL & GAS CONFERENCE AND EXHIBITION Hydrocarbon and Beyond: Changing Landscape 14th -17th October 2012, New Delhi www.petrotech.in Panaromic View of HMEL Bhatinda Refinery (Cover Story)
  • 2. Corporate Members CONTENTS Foreword 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 Speak R K Singh, Chairman and MD BPCL 12 A K Balyan, CEO & MD Petronet LNG Cover Story HPCL-Mittal Energy Limited 15 Drilling Technology - Advances Laser Drilling Technology – Future of Hydrocarbon Industry 18 Shailendra 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 29 U K Dhoot Sustainability Carbon & Water Management for Indian Hydrocarbon Industry 34 Rajkumar Ghosh Alternative Energy Residential Solar Electricity in Delhi-A Case Study 40 Chudamani Ratnam Asset Reliability Ultrasonic Energy Measurement 44 Mike Johnson and John Ward Editorial Team 20 Minutes with... 48 Karl M Phipps Ashok Anand Director General STLE Certification 50 Dr Robert M Gresham Anand Kumar Director & Editor CSR ONGC- A company that cares 52 G Sarpal CSR - A Lawful conformation today 54 Secretary Dr U D Choubey Suman Gupta Back2School Fundamentals of E&P 57 Manager Distillation Troubleshooting 60 The views expressed by the authors are their Special Feature: Women in Business Women Leaders of Indian Oil Industry 62 own, and do not neccessarily represent that of Arpana Anand the Petrotech. TechScsn 65 Published by Petrotech at 601-603, Tolstoy House, Industry Kaleidoscope 69 Tolstoy Marg, Connaught Place, New Delhi - 110 001 Book Scan 71 Petrotech Activities 72
  • 3. Foreword 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): • 22,000 fewer wells are needed on an annual basis to develop the same amount of oil and gas reserves as were developed in 1985 • Had technology remained constant since 1985, it would take two wells to produce the same amount of oil and natural gas as one 1985 well. However, advances in technology mean that one well today can produce two times as much as a single 1985 well • Drilling wastes have decreased by as much as 148 million barrels due to increased well productivity and fewer wells • The drilling footprint of well pads has decreased by as much as 70 percent due to advanced drilling technology, which is extremely useful for drilling in sensitive areas • By using modular drilling rigs and slim-hole drilling, the size and weight of drilling rigs can be reduced by up to 75 percent over traditional drilling rigs, reducing their surface impact • Had technology, and thus drilling footprints, remained at 1985 levels, today’s drilling footprints would take up an additional 17,000 acres of land The data captures impact of technological benefit to the E & P industry from 1985 to 1999. Surprisingly, no further study appears to have been commissioned on how technology in our industry has been a cost saver and efficiency multiplier rolled into one. We could therefore draw the inference that while our ‘opex’ trends invariably head ‘North’, the steepness of this acclivity would have been much more pronounced, had technological evolution remained a constant. As we move deeper into brown-field development, ‘reflective seismic technology’ now enables precise location of ‘oil pools’ that were hitherto ‘invisible’ to us, thereby greatly reducing drilling cost as also enabling us to monetise ‘lost’ production; a clear case of efficiency multiplication in action. In similar vein, ‘through – tube rotary drilling’, ‘slim – hole’ drilling, ‘horizontal production drilling’ facilitated by ‘tight – turn’ drilling technology, ‘coiled tubing’, ‘measuring while drilling (MWD)’, ‘CO2 – sand fracturing’ are but a few developments that constantly enable us to enhance production levels as well as to rein – in operating expenditure that would otherwise have increased exponentially. As in maintenance of existing operations, the challenges of monetising ‘exigent hydrocarbon’, especially deepwater and unconventional resources are 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-tuning and customising products. The Shale gas revolution and now Shale oil, emerged from developments in ‘hydro-fracking’ and now as this technology increasingly draws flack for its adverse environmental footprint, propane – based ‘fracking’ has been developed and implemented 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: • ‘NXT Energy Solutions’ claim to raise the success of first – pass prospecting for trapped hydrocarbon reserves underground by up to 70% by deploying their unique “Stress Field Detection Surveys’. Pioneering companies such as Ecopetrol and Pacific Rubiales have already adopted it • Coal to liquid is passé; coal to chemicals such as ammonia and methanol is the next big thing. While a few plants are in operation in the JoP, April-June 2012 3
  • 4. United States, it is China that is giving this concept the big push with an investment of nearly US$ 140 Billion over five years into this technology • Mantra Ventures, a pioneer in the Carbon Capture and Recycle space (CCR), propose to deploy a process termed ‘Electro-reduction of Carbon Dioxide (ERC) that combines ‘captured’ carbon dioxide with water to produce high value materials such as formic acid, formate salts, oxalic acid, and methanol. They too have found support from a $12B market cap company, Lafarge (OTC – LFRGY), the largest build- ing materials provider in North America and Powertech Labs Inc., a subsidiary of Canadian utility BC Hydro that specializes in the design and 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, Happy Reading !!! Sudhir Vasudeva Chairman, Petrotech CMD ONGC 4 JoP, April-June 2012