Dew Journal February 2016 Issue

dewjournal.
com
February 2016 DEW JOURNAL 1

February 2016 - Volume 25, No.04 dewjournal.com
dewjournal.com
CONTENTS
ISSN-0971-7242 R.N.I. No. 51048/89 © 2015 Technology Publications
Editorial and Advertising Office
Cover Focus 15/19, Kalidas Road
P.B. No. 271, Dehradun - 248 001
30 Quantifying uncertainty (Uttarakhand) India

info@dewjournal.com
through the Roxar ‘Big Loop’ subscription@dewjournal.com
Tel./Fax : +91 - 135 - 2740559
The calculating of uncertainty within the reservoir’s Chairman Editorial Board and
geological structure is one of the most important factors Chief Editor
for identifying both in-place and recoverable Arun Kumar Singhal
hydrocarbons in Asia today. Yet, while its’ significance Director
is well-known to practitioners, too often such uncertainty Shrey Singhal
is overlooked. Roxar ‘Big Loop’ approach to reservoir
Editorial Advisors
modeling can improve the efficiencies and integration
Satish Kumar Mathur
former General Manager (E&S), ONGC
Special Report Prof (Dr.) Nikolay P. Zapivalov
Chairman of Novosibirsk Centre of
Russian Academy of Natural Sciences
and Professor of Novosibirsk
University, Russia
Dr. Himmat Singh
Head of Department - Petroleum
Engineering, Chandigarh University
former Distinguished Professor,
Hydrocarbon Engineering, UPES,
former Advisor (R&D), Bharat Petroleum
Corp. Limited, former Sr. Dy. Director
22 India Africa to strengthen mutual relations in Hydrocarbon sector (Scientist “G”), Indian Institute of Petroleum
S K Das
Former Executive Director, ONGC
24 MMIE and ONGC Videsh sign MoU for Energy Cooperation Publisher
Arun Kumar Singhal
44 Experts discuss Advertising Manager
Ms. Saroj
new technologies Circulation Manager
Pramil Khanduri
and trends in Design & Graphics
Abhinav Arya
petroleum exploration Finance Manager
Pramod Kumar
Experts deliberate on emerging trends in petroleum exploration at a joint technical Regional Coordinator - New Delhi
Program organized by PETROTECH Society and ONGC at KDMIPE Mukesh Gupta
Regional Coordinator - Mumbai
53 Bright minds from academia bring J. Chakarborty
Regional Coordinator -
South East Asia & China
in new ideas and innovations to Tony Chen W. K.
overcome present oil and gas challenges Annual Subscription Rs. 3000
US $ 150 £ 90 (inclusive of Postage).
Petroleum and Geosciences universities/colleges participated in national level Fest Cover Price US$30 £25 Rs.300
devoted to the oil and gas sector organized by Pandit Deendayal Petroleum For details of how to subscribe to
Drilling & Exploration World journal and
University (PDPU)- Society of Petroleum Engineers (SPE) student chapter rates for individuals countries email :
78 Green Initiatives - Ministry of Petroleum & Natural Gas, India subscription@dewjournal.com

Remit all payments in favour of
TECHNOLOGY PUBLICATIONS For
details of wireline transfer of
Technology/ Technical Papers payment, contact the Publisher.
35 Well Interventions from limited access platforms Prepress processing & Printing at Saraswati Press
Drilling & Exploration World (DEW) published
since 1989 by Technology Publications from
39 New approach to pipeline repair reduces costs Dehradun is an internationally circulated

Energy and Oil & Gas journal. The journal
holds the distinction of being the only
42 Developing codes for cable and pipe laying equipment MONTHLY Energy and Oil & Gas journal
published from India.
All rights reserved in respect of all
57 Solids control and waste management in drilling operations articles, illustrations, photography etc.
published in Drilling & Exploration World
64 ‘Greening’ the oil sands ? Challenging the myths and confronting (DEW). Reproductions or imitations are
expressly forbidden without the permission
of the publisher. The opinions expressed
by contributors (editorial and advertising)
the realities: The dirty unconventional resources of energy are not necessarily those of the publisher/
editor, who can not accept responsibility
72 Management of produced water from Coal Bed Methane (CBM) for any errors or omissions.
While every effort is made to ensure that
the contents published in the journal are
correct and up-to-date, the Publisher, Editors
projects: A water treatment method focused on heating and Advisors do not accept any responsibility
for any error, omissions and factually
82 Clean diesel technology is key to improving quality of life incorrect statements published. This implies
for both editorial and advertising contents.
2 DEW JOURNAL February 2016

dewjournal.com

From the Editor
dewjournal.com Petro-Events Calender
The world is seeing a shift in supply and demand; in particular, we are

seeing a new chapter for China - with the decoupling of energy demand
and economic growth, improved efficiency and a shift in consumption
away from coal. More than ever an energy transition is underway, with
anticipated growth in renewable and nuclear in previously oil and gas
dominated regions such as the Middle East. A consensus shows oil prices
will remain low for a while longer. But it is these economic conditions that
are reshaping supply.
Russia proclaim a fairly stable market which they attribute to a flexible
taxation regime, lower production costs and diversifying into the oil February 24-25, 2016, KL, Malaysia
services industry, growing fast in refining. Specifically, Rosneft are focusing Fire Safety Conference
on Asia markets and concentrating on promoting and developing long www.fleminggulf.com
term contracts. February 25-26, 2016, NEW DELHI, India
While policymakers are stepping up their commitment to reducing Global HSE 2016
www.iconex.in
carbon, as the world expands, energy demand continues to grow.
March 15-17, 2016, LAGOS, Nigeria
Sustainable energy production is therefore the key! From BP’s perspective, Lean Maintenance & Lean Plant/Asset Mgt.
this can be achieved via the development of natural gas, reduced flaring infocusinternational.com/leanmaintenance
and methane, improved efficiency and increased renewable. Energy March 15-17, 2016, JAKARTA, Indonesia
efficiency can often be thought of specifically relating to the demand sector. Gas Indonesia - Summit & Exhibition
However, it is a massive opportunity and there is so much more that can www.gasindosummit.com
be done. It is more than just using less but also making processes in March 22-25, 2016, KL, Malaysia
producing energy more efficient. The OTC Asia 2016
www.2016.otcasia.org
The industry seems to be cautiously optimistic. There’s no doubt that
March 29, 2016, GANDHINAGAR, India
the falling oil prices paint a bleak picture for oil producers. However, The 2 nd International Conference on
combined with the stronger global commitment and political will for Geothermal Energy
emissions reduction, the oil and gas sector is facing up to diversification www.pdpu.ac.in
to remain competitive. May 10-12, 2016, KL, Malaysia
None of these challenges are new and the industry isn’t starting from EPC Contracts for Energy Industry
infocusinternational.com/epcenergy
scratch. The policies are needed to frame development and education is
fundamental. In the longer term, these challenges should be viewed as May 23-24, 2016, KOTA KINABALU, Malaysia
The 5th Sabah Oil and Gas Conference
opportunities to open new ways of thinking, creating innovative business & Exhibition
models and demonstrating responsible leadership. www.sahahoilandgas.com.my
One also sees LNG will drive the globalization of the natural gas June 7-9, 2016, KL, Malaysia
industry. At the moment, LNG represents 10% of global gas consumption The 6 th Annual HSE Forum in Oil, Gas
and Petrochemicals
and 30% of internationally traded gas. In addition the LNG industry is www.fleminggulf.com
about to “press the fast-forward button on its evolution.”
September 22-24, 2016, YANGON, Myanmar
There are two key drivers in this evolution, “First, significant volumes Manufacturing 2016 - 3rd International
of new US LNG exports are about to come on-stream. This will change Manufacturing Machinery, Equipment,
the game, particularly with regard to flexibility and liquidity of supply. Materials and Services Exhibition
www.manufacturingmayanmar.com
Second, one is seeing not just rapid growth, but also a diversification of
demand. More countries are starting to import LNG, and multiple buyers September 28-30, 2016, KL, Malaysia
The 3rd MOGSEC 2016
are emerging in markets that previously lacked energy competition.” www.mogsec.com.my
If the right government policies and regulations are implemented, November 15-17, 2016, SHANGHAI, China
natural gas can play a key role in meeting rising demand for energy while SIPPE 2016
reducing methane and CO2 emissions. Will gas overtake coal and oil? Is www.sippe.org.cn
natural gas the best candidate to meet future energy needs? These are November 16-17, 2016, KL, Malaysia
some big questions answers of which are constantly changing. The 4 th Offshore Engineering Malaysia
www.fleminggulf.com
The Cover focus of this issue is an interesting topic – calculating the
uncertainty within the reservoir’s geological structure which is one of the November 29-December 2, 2016, SINGAPORE
The 21st OSEA 2016
most important factors for identifying both in-place and recoverable www.osea-asia.com
hydrocarbons. July 9-13, 2017, ISTANBUL, Turkey
I hope you will find the topics covered in this issue interesting and The 22nd World Petroleum Congress 2017
value adding. AKS www.22wpc.com

dewjournal.com

dewjournal.com News
World’s first AiP for LNG-fuelled VLCC design

requirements in gas fuel mode.
Using LNG also results in the
complete elimination of particulates
and SOx and a significant benefit to
CO2 emissions. In gas fuel mode
the design achieves a 30 per cent
reduction factor to comply with
Phase 3 of the EEDI regulations.
“In 2010, DNV GL developed
the LNG-fuelled VLCC concept
Triality,” noted Deng Ling, DNV GL
Project Manager and ship type
Tor E. Svensen, Group Executive Vice President at DNV GL, presented the Approval in Principle expert for LNG as fuel. “With DSIC’s
to Guan Yinghua, Deputy Technical Director of DSIC at Marintec China. design and the Approval in
DNV GL has presented Dalian continuously concentrate on the Principle we have now seen the
Shipbuilding Industry Company innovation research of clean energy, next step, a version which can now
Limited (DSIC) with an Approval in ship efficiency and emission be put into the market. We are very
Principle (AiP) certificate for a new reduction, keeping ahead of green proud to have been selected to work
LNG-fuelled very large crude carrier ships development in the future.” with DSIC on this project and look
(VLCC) design at the first day of the The shipping industry is being forward to seeing this eco-friendly
Marintec China trade fair. The new, challenged to reduce its emissions design being welcomed by the
innovative design has been found of SOx, NOx, CO2 and particulates, industry.”
to comply with the Gas Fuelled both by current and incoming Dalian Shipbuilding Industry
notation as given in the DNV GL regulations and society as a whole. Co., Ltd. (DSIC) is operated under
rules for the classification of ships As a result, shipowners and the China Shipbuilding Industry
and the recently adopted IGF Code. operators are increasingly looking Company Limited, with a more than
“This AIP is another step into the use of alternative fuels to 100-year-old history since its
toward the more widespread ensure compliance for their fleet, founding in 1898. At present, DSIC
adoption of LNG as a fuel for now and in the future. is the only domestic shipbuilding
shipping,” says Torgeir Sterri, DNV To meet these challenges enterprise group that boasts the
GL Vice President and Regional DSIC developed this new LNG- ability to provide ship life cycle
Manager in Greater China. “The fuelled VLCC design. It has several services, including product R&D,
emissions and efficiency benefits advantages over traditionally product design, construction, ship
of LNG mean it is almost sure to fuelled vessels. The design uses repair, conversion and ship
become an important part of the type C fuel tanks located on the scrapping. DSIC is able to
fuel mix over the next few years. We open deck which minimizes the undertake the design and
have seen its adoption in many impact on the overall layout and construction of ships from
sectors already and now with this results in cargo capacity being deadweight of 1,000 tons to 300,000
AIP, the world’s first for a VLCC, this unchanged from the conventional tons, from ordinary bulk carriers and
major shipping sector could see its design. The LNG fuel tanks give the oil tankers to 10,000 TEU container
first LNG-fuelled vessel soon.” vessel the capability of performing ships, large-scale LNG carriers and
“At DSIC we adhere to the a round trip from the Middle East to offshore engineering equipment.
principles of innovation, security, the US without refuelling. Acclaimed as the flagship of
environmental protection and The dual fuel design gives China’s shipbuilding industry, DSIC
economic product concepts,” said greater flexibility in bunkering is the first domestic shipbuilding
Guan Yinghua, Deputy Technical options and with duel fuel engines, enterprise to have joined the rank
Director of DSIC. “DSIC will the vessel meets IMO NOx Tier III of the world’s top 5 shipbuilders.

News dewjournal.com
New oil spill recovery record

Norwegian offshore player new record for an active oil recovery collected efficiently and pumped
Egersund Group recently set a new system and has drawn attention back to the ship continuously. The
oil spill recovery record when its from oil companies and oil spill MOS Sweeper system, which is
newly developed MOS Sweeper response networks around the highly suitable for harsh weather
system managed to recover 96.4 globe. conditions, is very cost effective as
percent of oil released in a North “Norway is one of the few only a single vessel – for example
Sea exercise. countries that benefits from full- a fishing vessel, supply or offshore
The record was set when the scale, offshore oil-on-water supply vessel, coast guard vessel
Norwegian Clean Seas exercises organized annually. or stand-by vessel – is required to
Association for Operating These events provide us with a operate it. This ensures rapid
Companies (NOFO) recently unique knowledge base for testing, response in case of an oil spill
carried out a realistic oil on water understanding and improving emergency.
exercise in the North Sea. The products and oil spill The MOS Sweeper system has
purpose was to test and develop preparedness,” says Bjørn Havsø, been part of NOFO`s Oil Spill
preparedness against serious spill managing director of Egersund Response 2010 program.
accidents, and field-prove new Group’s subsidiary Egersund Trål Verification by NOFO is a stamp of
equipment before it is put into an AS. quality that the system can perform
operational oil spill situation. Egersund Group, in as an oil recovery system.
In the final report (Oil on Water collaboration with NOFO, has Egersund Group is a supplier
2015) of the exercise published by developed the Marine Oil Spill to the fishing, aquaculture and
NOFO, it was highlighted that the (MOS) Sweeper system. It is a offshore markets. Established in
MOS Sweeper system had a complete system with 1952 and has over 1300
recovery rate of 96.4% of the oil revolutionary properties in heavy employees. Total group revenue in
released into the sea. This sets a seas and high speed. The oil is 2014 was NOK 1.8 Billion.
The Egersund Group’s oil spill recovery system in action

dewjournal.com News
Crowley partners with Gas Technology Institute

collaborative for LNG training at JaxPort
Crowley Maritime Corporation supplies LNG to Puerto Rico via of extinguishing agents exist and
recently participated as one of barge and will take delivery of two when to use them in varying
several Gas Technology Institute container-Roll-On/Roll-Off (ConRo) situations. Upon completion,
(GTI) funding collaborators to bring ships in 2017, the company was attendees satisfied basic LNG
liquefied natural gas (LNG) proactive in participating in this awareness as defined by the U.S.
awareness training to 150 training endeavor. Coast Guard’s Standards of
stakeholders and first responders “As a company, we take safety Training, Certification, and
in Jacksonville. GTI, in conjunction very seriously,” said Cole Watchkeeping (STCW).
with the Florida State College at Cosgrove, vice president. “As we “The goal of this training is to
Jacksonville Fire Academy of the and other companies in the keep the excellent safety record
South (FAS), developed the first-of- Jacksonville area continue to maintained by the marine transport
its-kind training specifically for Port embrace the LNG market, it’s of of LNG in the past and apply it to
of Jacksonville area stakeholders utmost importance that we work the safe bunkering process as we
including Jacksonville Fire and with our local community to make fuel new LNG fueled vessels into
Rescue Departments, U.S. Coast sure we are all educated in safe the future,” said Mark Marien,
Guard Sector Jacksonville and handling of this new, Crowley’s manager, regulatory
area law enforcement. environmentally beneficial marine training.
The Jacksonville Marine fuel. This training was a first step LNG facts from the Center for
Transportation Exchange (JMTX) – to ensure all stakeholders have a Liquefied Natural Gas (CLNG)
the maritime trade organization unified approach to emergency LNG, or liquefied natural gas, is
that coordinates the safe, secure response and clean-up should we natural gas that is cooled to -260°
and environmentally responsible ever experience an incident.” Fahrenheit until it becomes a liquid
management of the marine Training attendees were and then stored at essentially
transportation system within the introduced to the basic atmospheric pressure. Converting
Port of Jacksonville – worked characteristics and properties of natural gas to LNG, a process that
closely with U.S. Coast Guard LNG, its usefulness as a fuel, its reduces its volume by about 600
Sector Jacksonville to seek out hazards and safety precautions to times allows it to be stored and
potential members of the funding take when working around the transported efficiently. LNG is then
collaborative and garner support product. The group also learned warmed back into its original
from representatives of the local basic and advanced firefighting gaseous state so that it can be
Area Contingency Planning (ACP) techniques including identification used just like existing natural gas
community. Since Crowley currently of ignition sources, and what types supplies. When returned to its
gaseous state, LNG is used across
the residential, commercial and
industrial sectors for purposes as
diverse as heating and cooling
homes, cooking, generating
electricity and manufacturing
paper, metal, glass and other
materials. LNG is not stored under
pressure and it is not explosive.
LNG vapors (methane) mixed with
air are not explosive in an
unconfined environment. When
exposed to the environment, LNG

News dewjournal.com
rapidly evaporates, leaving no firefighting facility, the third of its technology-based solutions for
residue on water or soil. kind in the nation, at its location, consumers, industry, and
FAS provides training and sponsored by members of the LNG government.
educational opportunities to collaborative including Crowley. Crowley Holdings Inc., the
emergency responders in the GTI is the leading research, holding company of 123-year-old
public and private sectors. FAS development, and training Crowley Maritime Corporation,
offers the most progressive training organization serving the natural which provides marine solutions,
for the maritime sector, and their gas and energy industry. For nearly energy and logistics services in
facilities include an aircraft rescue 75 years, GTI has been meeting the domestic and international
and marine firefighting simulator. nation's energy and environmental markets by means of six diverse
In 2016, FAS will construct an LNG challenges by developing operating lines of business.
New standard for reliable position

detection of multi turn valves
In January Netherlocks Safety Systems launched its already ordered their first pieces, largely based on
next generation Valve Position Indicators for manual their positive experiences with previous editions of
multi turn valves: the VPI A-series and S-series. With Netherlocks position indication solutions, giving the
these new models, Netherlocks offers a highly market introduction of the newly released models a
accurate and reliable alternative for existing position head start.
indicators in the market. Since 1993, Netherlocks is a premium
For detecting the open and closed position of manufacturer of industrial valve safety solutions such
manual quarter turn valves, many switch boxes and as valve interlocks, valve position indicators, partial
related products are readily available. However for stroke testing devices and portable valve actuators.
manual hand wheel operated valves, operating The Netherlocks head office and factory are based in
companies still often create their own solutions with The Netherlands. Local service centers are
custom made bracketing and proximity switches. established in India, USA, Germany and the Middle
The Netherlocks Valve Position Indicator (VPI) East.
now offers an accurate and reliable, off the shelf In close cooperation with our customers, our
solution that fits any type of multi-turn valve. A employees create simple, reliable, tailor made
mechanical counting mechanism is protected by a products. Through their dedication to offering
aluminum (A-series) or AISI 316 (S-series) housing. excellent quality and continuous service, Netherlocks
Integrated sensors detect the end positions of the has established itself as the leading valve safety
counter and transfer that specialist. Nowadays
information directly to our products are an
the control room, giving integrated part of the
a real life valve position installations of all Oil
signal to the DCS. and Gas end-users,
VPI is an contributing to the safety
intrinsically safe, Atex of their workforce.
and IECEx-certified Together with a
product approved for global distribution
use in Zone 1 classified network and local
areas. service partners,
In anticipation of the Netherlocks is a truly
formal launch, various global company with the
prominent end-users in ability to offer a high
the Oil & Gas industry level of service locally.

dewjournal.com News
India's nominee, Dr.D.J. Pandian appointed as the

Vice-President, Chief Investment Officer of AIIB
planning and supervision of the policy regime to attract international
Bank’s infrastructure investment by investment to crucial infrastructure
promoting sustainable investment sectors including power, airlines,
throughout Asia that is consistent ports and telecoms.
with the Bank’s vision, goals, and Announcing the appointments
strategies, and by ensuring the to the five positions of Vice-
relevance, effectiveness and President, Asian Infrastructure
efficiency of AIIB operations. Investment Bank’s President Mr. Jin
Dr. D.J. Pandian D r. Pandian has had an Liqun said “I am delighted to
The Asian Infrastructure Investment extensive career spanning 30 announce the appointment of the
Bank (AIIB) announced the years with the Indian Administrative AIIB’s senior leadership team. This
appointment of India's nominee, Dr. Service (IAS), holding key positions is an exceptionally strong and
D.J. Pandian, as the Vice- at the State, National, and committed group who bring wide
President, Chief Investment Officer International levels in the energy and varied experience and a wealth
of the newly formed USD 100 billion (oil and gas, power, renewable), of expertise that will serve the Bank
multilateral development bank. The infrastructure, finance, and industry well as it commences operations.
primary responsibility of the Chief sectors. Dr. Pandian was I look forward to working closely
Investment Officer is leading the instrumental in liberalizing the with them in the years ahead.”
Siemens to supply wind turbines to Finland

Siemens has been awarded its first commercial be used by the Finnish government to demonstrate
offshore wind order from Finland: the company will that offshore wind power is a feasible solution for
supply, install and commission 10 wind turbines, this area," said Michael Hannibal, CEO Offshore of
each with a capacity of 4 megawatts and a rotor the Siemens Wind Power and Renewables Division.
diameter of 130 meters, for the Tahkoluoto offshore "This project is attracting a great deal of attention
wind farm in the Baltic Sea. The customer is Suomen throughout the entire Baltic region, and will open
Hyötytuuli Oy, a wind power producer owned by eight doors for Siemens in the emerging offshore markets
Finnish utilities. Installation of the wind turbines is in this region.”
scheduled to begin in the summer of 2017, with the Tahkoluoto offshore wind farm is located approx.
start of operations expected by autumn 2017. With a 0.5-3 km from shore in water from 8-15 mts deep. The
capacity of 40 megawatts, and an annual net power wind turbines will be mounted on specially designed,
production of over 155 Gigawatt hours, the offshore gravity-based steel foundations in order to withstand
wind power plant will generate enough power to heavy ice loading. The government of Finland is also
supply 8,600 electrically contributing EUR 20 million
heated Finnish single- toward the demonstration
family houses with clean project in icing conditions.
energy. Siemens will also “The conditions for
be responsible for offshore wind power are
servicing the wind turbines. excellent in Finland. We
"This order marks a have a long coastline, windy
significant milestone for conditions, shallow waters,
Siemens. The project is not and a hard seafloor,” says
only the first offshore wind Toni Sulameri, the MD,
farm in Finland, but will also Suomen Hyötytuuli Oy.

News dewjournal.com
Prime Minister dedicates Paradip Refinery to the nation

The Prime Minister, Mr. Narendra
Modi, dedicated the state of the art
Paradip Refinery in Odisha, to the
nation on February 7, 2016.
The foundation stone of this
ambitious project was laid by
former Prime Minister, Mr. Atal Bihari
Vajpayee on 24th May, 2000. Set up
at an estimated cost of Rs. 34,555
crore, this grassroots Refinery will
further augment Indian Oil's
refining capacity by 15 MMTPA.
Indian Oil’s 11th Refinery at
Paradip, will help in meeting the
burgeoning energy demands of the
country. For better profitability, the The Prime Minister, Narendra Modi addressing the gathering after dedicating the Paradip Refinery
refinery has been designed to to the nation, in Odisha on February 07, 2016.
process 100% high sulphur,
including 40% heavy crude oil of
low cost to produce various
petroleum products like Petrol,
diesel, kerosene, Aviation Turbine
fuel, Propylene, Sulphur and
Petroleum Coke.
Presently, Paradip Refinery will
produce Motor Spirit and High
Speed Diesel of BS-IV quality and
later will switch to BS-VI quality to
The Prime Minister, Mr. Narendra Modi dedicating the Paradip Refinery to the nation. The Governor
comply with the Auto Fuel Policy of of Odisha, Mr. S.C. Jamir, Chief Minister of Odisha, Mr. Naveen Patnaik, the Minister of State for
the Government of India. The Petroleum and Natural Gas (I/C), Mr. Dharmendra Pradhan and other dignitaries are also seen.
refinery is also designed to
produce Euro-V premium quality
Motor Spirit and other green auto
fuel variants for export to advanced
countries. Paradip Refinery has a
unique INDMAX Unit technology,
which is indigenously been
developed by Indian Oil's R&D
Centre. The INDMAX Unit is
designed to produce 44% LPG, the
highest from such plants.
The Prime Minister Narendra Modi being presented Paradip Refinery memento by the Union
Addressing the l a r g e Minister for Tribal Affairs, Mr. Jual Oram in Odisha on February 07, 2016. The Chief Minister of
gathering on the occasion, the Odisha, Mr. Naveen Patnaik and Mr. Dharmendra Pradhan are also seen.
Prime Minister said Paradip will Earlier the Prime Minister expressed happiness to note that
now become “Vikas Dweep” – the visited the Main Control Room and the INDMAX production capabilities
i s l a n d o f d e v e l o p m e n t f o r t h e the Indmax Unit built with at the plant are an illustration of the
people of Odisha. indigenous technology. He Make in India initiative.

dewjournal.com News
ONGC Videsh and Rosneft

confirms successful cooperation
ONGC Videsh Limited and Rosneft signed an Agreement of stage pre-completion actions in
Confirmation of successful completion of the first stage relation to the creation of a joint
pre-completion actions in relation to the creation of a joint venture in JSC “Vankorneft” This
venture in JSC “Vankorneft”. The document was signed in takes the cooperation between the
the presence of the President of Russia Mr. Vladimir Putin two companies to a whole new
and the Prime Minister of India Mr. Narendra Modi by level and lay strong foundation for
Managing Director of ONGC Videsh Limited, Mr. Narendra enlarging the energy cooperation
K. Verma and Rosneft Chairman of the Management between two nations”.
Board Mr. Igor Sechin on December 24, 2015 ONGC Videsh is a wholly
owned subsidiary of Oil and
ONGC Videsh Limited and Rosneft geologic survey, exploration and Natural Gas Corporation Limited
signed an Agreement of production of hydrocarbons (ONGC), the National Oil Company
Confirmation of successful onshore and on the continental of India. It is India’s largest oil and
completion of the first stage pre- shelf of the Russian Federation. gas exploration and production
completion actions in relation to the The document, signed in company outside India. ONGC
creation of a joint venture in JSC continuation of the Memorandum Videsh owns Participating Interests
“Vankorneft”. The document was of understanding for cooperation in in 36 oil and gas assets in 17
signed in the presence of the exploration, appraisal and countries and contributes to 14.8%
President of Russia Mr. Vladimir hydrocarbon production on the of oil and 12.5 % of oil and natural
Putin and the Prime Minister of continental shelf of the Russian gas production of India
India Mr. Narendra Modi by Federation (signed within SPIEF- respectively. ONGC Videsh
Managing Director of ONGC Videsh 2014), confirms the intention of partnership with Rosneft started
Limited, Mr. Narendra K. Verma and parties to continue cooperation in in 2001 when the former acquired
Rosneft Chairman of the the named areas and expands the 20% stake in the Sakhalin-I oil and
Management Board Mr. Igor Sechin sphere of the potential partnership gas project in the Russian
on 24th December, 2015. to include Russian onshore Federation
The document was signed in hydrocarbon development ONGC is India’s largest
continuation of the agreement of projects. Particularly the government-run corporation and
sale and purchase of a 15% share companies will analyze the produces about 70% of India’s
in Vankorneft and the shareholders possibility of expanding their crude oil and natural gas. The
agreement in regard of the partnership aimed at the corporation is the biggest public
enterprise management (the development of perspective sector commercial organization in
documents were signed in Rosneft projects in East Siberia. India with current market
September, 2015). The parties Commenting on the signed capitalization of about USD 31
intend to complete the transaction documents Mr. Dinesh K.Sarraf, billion. The Indian government
upon obtaining necessary Chairman and Managing Director, holds a 68.94% stake in ONGC.
regulatory and other approvals. ONGC said: “We are happy for the Vankorneft, Rosneft subsidiary,
Moreover Rosneft and ONGC ongoing cooperation between was established in 2004 for
Videsh signed a Memorandum of ONGC Videsh and Rosneft and development of Vankor oil and gas
understanding for cooperation for successful completion of the first condensate field – the largest of
the fields, discovered and put into
Rosneft and ONGC Videsh signed a Memorandum of operation in Russia in the last 25
understanding for cooperation for geologic survey, years. The field is situated in the
exploration and production of hydrocarbons onshore and Turukhansky district of
on the continental shelf of the Russian Federation. Krasnoyarsk Territory, 142 km away

News dewjournal.com
from the city of Igarka. The initial results of 2013 by more than 3%. high well flow rates. The process
recoverable reserves of the Vankor The daily output is more than 60, of oil production is fully automated.
field by the January 1st 2015 are 000 tons. Thanks to implemented Oil transportation is carried out
estimated at 476 mln. tons of oil technological solutions, oil recovery through the 556-km long main oil
and condensate and 173 bln. cubic factor at Vankor is one of the pipeline Vankor-Purpe. The oil
meters of gas. The acreage of the highest in Russia. The field is produced at the field is one of the
field is 447 square km. drilled with the inclined- and main sources for packing the
In 2014 Vankor produced 22 production- injection wells with Eastern Siberia – Pacific Ocean
mln tons of oil which exceeds the horizontal ending which provides pipeline.
Mubadala and PEMEX Sign MoU and Cooperation

Mubadala Petroleum, a wholly-owned subsidiary of Musabbeh Al Kaabi, CEO of Mubadala Petroleum,
Mubadala Development Company (Mubadala),and said, “This MoU is a first step to opening a concerted
Petróleos Mexicanos (PEMEX) have signed an dialogue with PEMEX to look at collaborative
agreement in Dubai on January 19, 2016. The opportunities in Mexico and reflects the
agreement was signed in the presence of H.H. strengthening relationship between the UAE and
Sheikh Mohammed Bin Rashid Al Maktoum, the Vice Mexico. We look forward to working alongside PEMEX
President and Prime Minister of the United Arab to see how we might contribute to Mexico’s initiative
Emirates (UAE), and Ruler of Dubai, and Enrique to revitalize and develop its energy sector.”
Peña Nieto, President of the United Mexican States, Emilio Lozoya Austin CEO of PEMEX, said, "The
and H.H. Sheikh Hamdan bin Mohammed bin Rashid Mexican energy reform allows PEMEX to have
Al Maktoum, Crown Prince of Dubai, and Chairman partners for upstream and midstream projects.
of Dubai Executive Council, to provide the basis for Mubadala is a world class partner to establish a
discussions between the two companies and their solid, long term relationship with. We will look into
affiliates about potential opportunities in Mexico’s some primary projects, as well as to support
energy sector. infrastructure projects for the core business? and
The Memorandum of Understanding (MoU) was decide joint investments that benefit both parties and
signed during a ceremony in Dubai by Musabbeh Al may consider third party if required.”
Kaabi, CEO of Mubadala Petroleum, and Emilio Details of any specific opportunities, and
Lozoya Austin, CEO of PEMEX. technical or commercial discussions will remain
As well as providing a framework for discussions confidential between the two parties.
to identify potential Mubadala
u p s t r e a m Petroleum is an
exploration and international,
p r o d u c t i o n upstream oil and
projects, the MoU gas exploration
identifies a and production
number of broader company. It
areas for potential manage assets
collaboration in and operations
the oil and gas spanning 11
midstream sector, countries with a
and energy and p r i m a r y
p o w e r - r e l a t e d H.H. Sheikh Mohammed Bin Rashid Al Maktoum, the Vice President and Prime Minister of
the United Arab Emirates (UAE), and Ruler of Dubai(back center R), and Enrique Peña
geographic focus
infrastructure that Nieto, President of the United Mexican States (back center L), and H.H. Sheikh Hamdan on the Middle
bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai
may be of interest Executive Council (back end R), witness the signing of a memorandum of understanding East, Africa,
to other Mubadala between Mubadala Petroleum and PEMEX in regards to potential opportunities in Mexico’s and Southeast
energy sector. Seen signing Musabbeh Al Kaabi CEO of Mubadala Petroleum (R) and
businesses. Emilio Lozoya Austin CEO of PEMEX (L) Asia.

dewjournal.com News
Large unexplored area offshore South

Africa mapped for exploration investment
CGG has announced that it will “The oil industry’s funding of
commence a multi-client airborne CGG’s early-phase exploration
gravity and magnetic survey effort offshore South Africa is a
offshore South Africa. The testament to the prospectivity of
Petroleum Agency of South Africa geologic and geophysical data, will the region. PASA expects that the
(PASA) has authorized the program also be undertaken by CGG’s in- geological insights of the West
which will extend across two blocks house interpretation team. Bredasdorp and Eastern Margin
totaling approximately 78,000 line Deliverables will include a full areas gained from the CGG survey
kilometers. The survey areas are geophysical interpretation report, will attract further exploration
located offshore Cape Agulhas including definition of basement investment and help focus
(West Bredasdorp area) and lithology and structure, mapping of explorers’ efforts.”
offshore Durban (Eastern Margin sediment fairways and Greg Paleolog, Senior VP,
area). Data acquisition will depositional-centers and any Multi-Physics, CGG, said: “Our
commence in January 2016 and is intrusives or salt which may be multi-client South Africa project will
anticipated to take four months present in the sedimentary section. be a great addition to our existing
utilizing specialized geophysical The final results will be presented multi-client gravity & magnetic
survey aircraft. The project has in ArcGIS® format for assimilation database that contains over 16
received significant prefunding into the clients’ own seismic, million line kilometers of profile
from the oil industry; survey data geological and well control data. It will result in a unique
and interpretation products will be databases. These survey exploration dataset in an exciting
available for licensing in mid-2016. deliverables will provide significant frontier area about which we have,
The survey will provide partial assistance to exploration and de- as yet, very little information
coverage of the largely risking of prospective areas by oil regarding active petroleum
underexplored Western companies when they become systems.”
Bredasdorp, Durban and Zululand available for licensing in CGG is a fully integrated Geo-
basins and the data will assist with mid-2016. science company providing leading
mapping crystalline basement and PASA Acting Chief Executive geological, geophysical and reser-
magnetic and density anomalies Officer, Mrs Lindiwe Mekwe, said: voir capabilities to its broad base of
within the sedi- customers pri-
mentary sec- marily from the
tion. The air- global oil and
borne survey will gas industry.
allow data col- Through its three
lection through complementary
the “transition businesses of
zone” from the Equipment, Ac-
marine environ- quisition and Ge-
ment to the near- ology, Geophys-
shore. ics & Reservoir,
A compre- CGG brings
h e n s i v e value across all
interpretation, aspects of natu-
combining this ral resource ex-
new data set ploration and ex-
with available ploitation.

News dewjournal.com
Laurels of hardwork !
Mr. K.M. Shukla, Deputy General
Manager, KDMIPE, ONGC has
been awarded a Certificate of Merit
for excellent contribution through
G&G studies to evaluate gas
hydrate reservoirs under NGHP-
R&D Expedition Phase II. The
award was presented during the
A n n u a l Aw a r d C e r e m o n y a t
KDMIPE, ONGC to Mr. Shukla by
Dr. D.N. Singh, Executive Director
and Head, KDMIPE, ONGC. ONGC
in collaboration with multiple
partners across the industry, has Mr. K.M. Shukla recieving the award from Dr. D.N. Singh
led government’s National Gas p a r t o f N G H P ’ s s e c o n d R & D r e c e n t l y b e e n c o m p l e t e d w i t h

Hydrate Programme (NGHP). As Phase, 42 gas hydrate wells have encouraging results.
It is another moment of glory for ONGC Northeast India section which has seen
as Mr. Santanu Hati, Deputy General an increase in activities and also
Manager (Production) of ONGC’s Assam membership. During 2015 the Section
Asset, Nazira has been awarded the was the recipient of SPE Presidents
coveted ‘SPE Regional Service Award – Award for Sectional Excellence and was
2015’ for his contribution to the Society winner in the highest total Membership
of Petroleum Engineers. The prestigious award was Retention percentage in its Category.
conferred by SPE President Mr. Nathan Meehan at For his contribution to membership development,
SPE Oil and Gas India Conference in Mumbai on Mr. Santanu Hati was awarded the Life Membership
November 24, 2015. of Society of Petroleum Engineers (SPE) and joined
The SPE Regional Service Award acknowledges the prestigious Century Club in 2008.
exceptional contributions to the Society of Petroleum A chemical engineering graduate from Calcutta
Engineers at the section or regional level and University, Mr. Hati has been involved in operations of
recognizes singular devotion of time and effort to the one of the largest onshore Assets (Assam) of ONGC.
programs and development of the member's section He is also Life Member of Indian Institute of Chemical
and region that set it apart from the services rendered Engineers.
each year by many members of the
Society.
Mr. Hati was SPE Mumbai
Board member in different
capacities including Secretary for
a number of years. He has played
a key role in student chapter
activities with focus on the
Ambassador Lecture programs
which resulted in Mumbai section
winning the first prize in 2012. He
has represented SPE International
in several committees. Presently he
is the Membership Chair of Mr. Santanu Hati recieving the award from SPE President Mr. Nathan Meehan

dewjournal.com News
LEADING THE WAY IN ENERGY EFFICIENCY: Essar Oil ranked

amongst CDP India’s Climate Disclosure Leaders for 2015
Despite being a refinery major, most energy efficient businesses in
Essar Oil has been recognised as India. The report titled, “Energy
one of the top Climate Disclosure efficiency bears fruits for India Inc”
Leaders for India and is also highlights the key carbon minimising
among India’s most energy providing the only global system for interventions and achievements of
efficient companies. companies and cities to measure, the identified companies and were
Essar Oil has been recognised disclose, manage and share vital presented at the United Nations
as one of the top Climate environmental information. Framework Convention on Climate
Disclosure Leaders for India for the The disclosure score Change organised COP-21 (The
5th year in a row by Carbon assesses the quality and extent of Conference of Parties) slated to
Disclosure Project (CDP) India, a company’s response. A high begin from November 30 - December
according to the company sources. disclosure score signals that a 11, 2015 at Paris, France.
CDP publishes an annual index on company provided comprehensive CDP works with investors,
climate disclosure that ranks information about the measurement companies, governments, and
companies on the basis of their and management of its carbon organizations that share CDP’s work
energy management techniques footprint, its climate change strategy to drive environmental disclosure
and climate change initiatives. and risk management processes and action that will change the
Essar Oil is among the only two and outcomes. global economic system. To
organisations in the energy sector In recognition of Essar Oil’s catalyze collective action toward its
to have made it to the index. CDP is sustained performance all these goals, CDP supports many different
an international, not-for-profit years, the company has also been initiatives and has forged strong
organisation registered in England featured in a CDP report on the 20 alliances around the world.
Repsol sells its piped gas business in Northern

Spain and Extremadura for 136 million Euros
Repsol sold its piped gas business in the north of Extremadura are subject to regulatory approvals.
Spain and the Extremadura region to EDP Group and Active portfolio management is one of the
Gas Extremadura, for a total of 136 million euros. The strategic lines of action of Repsol’s 2016-2020
transactions will generate 76 million euros in capital Strategic Plan, whose focus is on creating value
gains after tax. following the growth achieved in recent years, which
This transaction follows the sale completed by concluded with the acquisition of Talisman Energy.
Repsol in September 2015 of piped gas assets to The flexibility, strength, and adaptability of Repsol's
Gas Natural Distribución and Redexis for 652 million business portfolio will allow the company to make
euros. divestments of 6.2 billion euros in non-strategic
With these transactions completed, Repsol’s assets during the 2016-2020 period.
divestment of this non-strategic business amounts In addition to the partial divestment of the piped
to a total of 788 million euros, yielding accumulated gas business announced in September, Repsol that
capital gains of 431 million euros after tax. month sold its 10% stake in logistics company CLH
Following these two sales, Repsol maintains a for 325 million euros. The company also reached an
portfolio of piped gas assets with the capacity to supply agreement in December to sell 13% of its stake in
42,000 customers in the Community of Madrid, and Eagle Ford (USA) to its partner Statoil. Furthermore,
will continue to serve these customers as it always Repsol divested rights in a project in Alaska, and three
has. The sales agreements with EDP Group and Gas offshore exploration blocks in Canada.

News dewjournal.com
Fugro delivers surface current

data with innovative new system
Fugro and technology partner Areté
Associates have successfully
delivered near real-time, synoptic,
surface current data to
characterise Loop Current and
Loop Current eddy conditions in the
US Gulf of Mexico during a period
of intense current conditions.
The new ROCIS (Remote
Ocean Current Imaging System)
was deployed on its first operational
project, in the US Gulf of Mexico.
Over the course of the five-month
programme, Fugro surveyed
currents over a distance of more
than 125,000 km - the equivalent of
3 times around the world. ROCIS is an airborne system for mapping surface current conditions over a wide area of ocean
ROCIS is the first commercially for current-sensitive offshore operations
available system of its kind and currents over the area while conditions over specific locations
represents a step change in processed data files are available or a broad area. The system can
technology for mapping surface a few hours later. During the also provide support in emergency
current conditions over a wide area programme ROCIS data supported situations such as oil spill and
of ocean for current sensitive day-to-day operational planning search and rescue, as well as in
offshore operations. and enhanced the accuracy of 3D oceanographic research
Optimising recent advances in hydrodynamic current forecast programmes.
remote sensing and aerial survey, modelling. Fugro and Areté Associates are
Fugro and Areté Associates The key technical benefits of working on further development of
developed a system that uses a ROCIS are the near synoptic, wide the ROCIS system and services,
combination of digital camera area, high resolution, high integrity including the use of expendable
technology and highly accurate surface current measurements that probes and the incorporation of
positioning systems, together with allow sub-mesoscale circulation to additional airborne sensors. In
advanced algorithms, to derive be measured and monitored. 2016 Fugro will add a second
surface currents from wave spectra During a four-hour flight the system ROCIS unit to further enhance its
measurements. It can be installed can survey ocean currents at 250- support of offshore operations.
on a suitable survey aircraft, together mt intervals over a track of 900- Fugro creates value by
with an inertial navigation system 1,100 km. To map currents over a acquiring and interpreting earth
augmented by Fugro’s Starfix ® similar distance using traditional and engineering data and providing
satellite positioning system. methods would take a combination associated consulting services to
Current data are reviewed in of four vessels 24 hours. Given support clients with their design
real-time on board the aircraft, sufficient daylight hours, two ROCIS and construction of infrastructure
providing continuous assessment flight missions can be conducted and buildings. Fugro also supports
of data quality and the location of each day. clients with the installation, repair
strong currents. Within an hour of ROCIS services can be and maintenance of their subsea
the aircraft landing the system provided to single or multiple infrastructure. Fugro is an
produces a “quick-look” map of the clients to monitor offshore current independent service provider.

dewjournal.com News
The Barents Sea ice challenge: Loads to learn

There is a sustained high interest loads and load effects from waves
for oil and gas exploration in the and sea ice) DNV GL will join forces
new unlocked areas of the Barents with industry parties as well as
Sea, as announced in the 23rd Tromsø in North Norway, to academia through the Norwegian
licensing round in Norway. In discuss the global crossroad University of Science and
particular southeast Barents Sea between commercial and Technology. The project will provide
areas are so far unexplored, environmental interests of methodologies and numerical
leaving an ocean of opportunities exploration in the Arctic, DNV GL methods for calculating loads and
ahead. However, new challenges presents its latest industry load effects on moored floating
accompany the harsher, darker collaboration project together with structures caused by the interaction
and most of all, colder operational Statoil, to tackle the Barents Sea between structure and sea ice.
conditions, requiring adaption of ice challenge head on. Implementing software for
new technology and all time high “The most severe actions on time-domain simulation of moored
expectations for safe and Arctic offshore structures are often floating structures in broken ice
sustainable operations. caused by ice-structure interaction. conditions will enable operators as
DNV GL promotes joint It is therefore of great importance well as designers and other
industry projects (JIPs) as a tool to for the design of safe and reliable stakeholders to estimate local and
accelerate the technology structures to address ice loads and global ice loads based on state-of-
development needed in meeting ice loads effects properly,” says the-art methods. Phase one of the
the challenges of oil & gas Hege Berg Thurmann, DNV GL’s FOLLOWS JIP will focus on
exploration in northern areas. Arctic Group Leader. implementing software for the
While the industry is gathered at Under the project name calculation of loads in broken ice
The Arctic Frontiers conference in FOLLOWS (floating structures: conditions without waves, while
Data under the Norwegian licence for Open Government Data (NLOD) distributed by DNV GL

News dewjournal.com
“The most severe actions on Arctic offshore structures are

often caused by ice-structure interaction. It is therefore of great
importance for the design of safe and reliable structures to
address ice loads and ice loads effects properly. Calculating
the loads caused by ice-structure interaction is an important
part in the design process of an offshore structure operating
in the Arctic. The outcome of this industry collaboration will
help to ensure that the design of the structure is fit for purpose
and that it will operate safely during its entire lifetime"
- Hege Berg Thurmann

Arctic Group Leader, DNV GL
phase two will develop and collaboration will help to ensure developed and implemented more
implement a methodology for that the design of the structure is fit cost efficiently through
estimating the loads and load for purpose and that it will operate collaboration, where definition of
effects from ice in waves. Further safely during its entire lifetime," best practice also leads to
work may include loads and load says Hege Berg Thurmann. standardization and increased
effects from icebergs. The JIP is in the initial phase efficiency. DNV GL promotes JIPs,
“Calculating the loads caused and DNV GL and Statoil welcome as a means to develop qualified
by ice-structure interaction is an industry players to join the project. solutions, which give reduced
important part in the design DNV GL believes that projects like costs in the development phase
process of an offshore structure the FOLLOWS JIP show that the and increased efficiency/reduced
operating in the Arctic. The required technology for oil and gas cost in implementation and
outcome of this industry operations in the Arctic can be development.
Sea ice

dewjournal.com News
GE Oil & Gas announce five new partnerships,

technology pilots across energy value chain
GE Oil & Gas announced on February 2, 2016 five Working closely with operators throughout the
new initiatives to accelerate cutting-edge technology development and testing process, GE Oil & Gas has
development and testing across the energy value introduced its SFX wellhead system, a standardised,
chain. Developed through customer partnerships, the full-system solution providing up to 16 times fatigue
new technologies and solutions demonstrate the resistance improvement over the company’s existing
effectiveness of GE’s proactive approach to customer systems, for ultra-reliability in fatigue-critical zones.
collaboration to “co-create” tailor-made solutions that The wellhead is designed to meet priority operator
meet specific industry needs. challenges around the need to improve efficiencies,
GE Oil & Gas has launched a Joint Industry Project eliminate non-productive time and reduce costs.
(JIP) with a group of leading international oil Responding to industry needs to optimize products
companies to develop a new and simplified subsea and maximize endurance on severe service
boosting system that has the potential to reduce applications, GE Oil & Gas is introducing a range
lifecycle costs by up to 30% and improve operational extension of its proven LNG Cryogenic Antisurge Valve
flexibility for operators. The initial phase of the JIP product line, developed and manufactured at the Bari
includes Statoil, Total and 2 other operators. The new plant in Italy. These large size valves have been tested
system is named the Modular Contra-rotating Pump to guarantee seat tightness, now extended to class V
(MCP) and draws on technology from the GE Aviation with temperature down to -196 °C. By reducing the
business. The MCP provides the potential to unlock recirculated flow rate when the valve is closed, GE Oil
and enable access to more oil in both new and mature & Gas is setting new standards for this type of valve.
wells in a simpler way by reducing the topside and “Collaboration and technology have always
subsea footprint by up to 50% and eliminating underpinned our commitment to quality and delivery,
equipment such as the barrier fluid system needed in and they continue to do so,” said Lorenzo Simonelli,
conventional subsea boosting systems. GE Oil & Gas President and Chief Executive Officer.
BP realigns senior executive team

BP announced on strategy and long-term planning, accountabilities within our
February 1, 2016 the safety and operational risk, experienced and versatile senior
appointment of Lamar technology, and corporate team. In particular Lamar’s new role
McKay to the new position of Deputy governance – including ethics and will allow us to further concentrate
Group Chief Executive. McKay, compliance. BP America will our attention on BP’s highest
currently chief executive of BP’s continue to report to him. priorities through this challenging
Upstream segment and a 35-year These appointments headline time for our whole industry.
veteran of BP, will be based in a reorganisation of BP’s executive “I welcome Lamar and Bernard
London and take up the role team that includes other to their important new roles and
following a suitable handover adjustments which will follow the look forward to working even more
period. McKay will be succeeded retirement of Katrina Landis, closely with them in future. And I
as Upstream chief executive by executive vice president of corporate would like to thank Katrina for her
Bernard Looney, currently chief business activities, who leaves the leadership and the success she
operating officer, production, in the company on May 1 following a delivered throughout all the senior
Upstream segment. career of 24 years with BP. roles she has held at BP.”
In addition to assuming some Commenting on the changes, Landis will not be replaced on
duties currently borne by BP’s BP’s Group Chief Executive, Bob the executive team and her current
Group Chief Executive, McKay’s Dudley said: “These changes role’s responsibilities will be
responsibilities will include simplify, focus and better align assigned to other members.

dewjournal.com

dewjournal.com Special Report
Petroleum Ministers, Regulators, CEOs of National Oil

Companies and experts from the field of petroleum
from India and African countries have resolved to
strengthen relations between the two continents in all
dimensions and particularly in the Hydrocarbons sector.
The resolution made during the two day bi-lateral meeting
by India in New Delhi will enhance its energy security
while nurturing Africa’s hydrocarbon sector growth
India’s Petroleum Minister (center) with the representatives of the 21 African nations
India Africa to strengthen mutual

relations in Hydrocarbon sector
A report by DEW Correspondent
T he Fourth India Africa Hydrocarbon Conference (IAHC) hosted by India, attended

by 21 African nations has resolved to strengthen the relations between India
and Africa in all its dimensions, particularly in the hydrocarbons sector. The
conference aimed to give a renewed thrust to India’s engagement with African nations
in the hydrocarbon space, and carried forward the vision of a multidimensional,
comprehensive India-Africa partnership spelt out by the Prime Minister Mr. Narendra
Of the 21 participating African nations the delegations of

9 African countries Mauritius, Morocco, Algeria, Sudan,
South Sudan, Tunisia, Senegal, Equatorial Guinea and
Liberia - were headed by the respective Ministers.
Senior officials led the delegations from Nigeria, Ghana,
South Africa, Egypt, Tanzania, Kenya, Mozambique,
Uganda, Libya, Cote d’Ivory, Gabon & Sierra Leone

Special Report dewjournal.com
Modi at the 3rd India-Africa Forum

Summit held in New Delhi in
October 2015.
The conference inaugurated
by Mr. Dharmendra Pradhan,
Minister of State (Independent
Charge) for Petroleum and
Natural Gas, Government of India
was even addressed by the
Minister of External Affairs, Mrs.
Sushma Swaraj. Mrs. Swaraj
called for working together and
moving towards energy justice Minister of State (I/C) for Petroleum and Natural Gas, Mr. Dharmendra Pradhan second from right
from energy poverty. She alluded along with Mr. K.D. Tripathi (right), Seceratary, Ministry of Petroleum & Natural Gas, Government
of India speaking at a session of 4th India Africa Hydrocarbons Conference in New Delhi.
to the century’s old relationship
between India and the African The bilateral meetings emphasized India’s thrust
continent, and gave a call for on diversification of import sources for crude
injecting new dynamism in India-
Africa ties by pursuing win-win
oil and natural gas, and to explore avenues to
opportunities in all areas for the further increase petroleum imports from Africa.
larger common good of the India looks forward to composite delegations
people of both regions.
Addressing the delegates,
during 2016 comprising upstream, downstream
Mr. Pradhan said, India and EPC service providers from both public and
recognizes Africa as a valued private sector to African countries where
partner for the comprehensive
potential for future co-operation exists
development of our peoples. The
Indo-Africa meeting is the
beginning of a new chapter which will witness from Africa at various levels including Ministers of
renewed engagement with African nations in the Petroleum, Petroleum Regulators, CEOs of National
hydrocarbon sphere. India, he pointed out recognizes Oil Companies and experts of the field. The
Africa not merely as an important cog in the wheel in delegations of 9 African countries Mauritius, Morocco,
its quest for energy security but also as a valued Algeria, Sudan, South Sudan, Tunisia, Senegal,
partner for the comprehensive development of the Equatorial Guinea and Liberia - were headed by the
two side, he stressed. respective Ministers. Senior officials led the
Expressing a great degree of satisfaction over delegations from Nigeria, Ghana, South Africa, Egypt,
the timing of the conference, Mr. Pradhan called it a Tanzania, Kenya, Mozambique, Uganda, Libya, Cote
rewarding event. He said, during the calendar year d’Ivory, Gabon & Sierra Leone.
the Ministry plans to mount composite delegations Many of the participating African countries made
comprising upstream, downstream and EPC service presentations highlighting opportunities in their
providers from both public and private sector to hydrocarbon sector. The two-day conference also
countries where potential for future co-operation offered an opportunity for India to showcase its
exists. He also announced additional 250 fully funded accomplishments and techno-commercial
scholarships for African nationals for technical and capabilities spanning across upstream, midstream
professional courses in the Hydrocarbons sector in and downstream sectors as also India’s unique value
Indian institutes. proposition for the rapid development of the African
The Conference organized in New Delhi on hydrocarbon industry. Two panel discussions on
January 21-22, 2016 was attended by 21 African “Emerging challenges and mitigating measures in
countries. The event saw enthusiastic representation hydrocarbon sector and beyond” and “Regulatory and

Fiscal Regime challenges and potential solutions to

stimulate investment in Upstream and Downstream
sectors” were also held.
It may be noted that India’s engagement with
African countries in the petroleum sector has been
on an upswing in the past few years. India imports
nearly 16% crude oil from Africa as of now, with the
MMIE and ONGC Videsh sign
majority coming from Nigeria and Angola. Besides, “India is a valued trade
Indian public and private sector companies have partner of Equatorial
interests in oil and gas fields across Africa, including Guinea. With several
Sudan, South Sudan, Mozambique, Gabon and other projects under
countries. development, we are
On the occasion Mr. Pradhan held bilateral eager to extend multiple
meetings with his counterparts from the African investment opportunities
countries as well as with the delegations from the Mr. Gabriel Mbaga Obiang to Indian enterprises and
Lima, Minister of Mines,
other visiting countries. The Minister referred to India’s Industry and Energy, enhance our energy
thrust for achieving a geographically diversified energy Equatorial Guinea cooperation”
basket and said India will try to increase its oil and
gas sourcing from Africa even further. The African The Government of Equatorial Guinea, represented
countries evinced specific interest in using India’s by the Ministry of Mines, Industry and Energy (MMIE),
expertise and assistance in refining, capacity building has signed a memorandum of understanding (MoU)
and training of their manpower for the petroleum with ONGC Videsh limited for a sweeping cooperation
industry. that could encompass several areas of the oil and
“I am confident that new ground has been broken gas industry. The announcement came ahead of the
in understanding potential collaborations in the India-Africa Hydrocarbons Conference, which took
hydrocarbon space. For me, this conference has been place in New Delhi on January 21-22, 2016. The
particularly rewarding as it has provided an invaluable Government of Equatorial Guinea was represented
opportunity to meet my counterparts from Africa and by Mr. Gabriel Mbaga Obiang Lima, Minister of Mines,
discuss matters of mutual interest”, emphasised Mr. Industry and Energy, and ONGC Videsh by Mr.
Pradhan while talking to DEW. Mr. Pradhan said during
his discussions with individual delegations, he was
pleasantly surprised to see that Indian oil and gas
companies are highly regarded in Africa and there is
India’s Petroleum Minister plans

greater thrust for achieving a
geographically diversified energy Equatorial Guinea
location map
basket. India wants to increase its Republic of Equatorial Guinea is a country located in West Central
Africa, with an area of 28,000 sq.kilometres. Equatorial Guinea consists
oil and gas sourcing from Africa of two parts, an insular and a mainland region. The insular region
consists of the islands of Bioko (formerly Fernando Pó) in the Gulf of
even further. The African countries Guinea and Annobón, a small volcanic island south of the equator.
The country consists of a mainland territory, Río Muni, which is
have specific interest in using bordered by Cameroon to the north and Gabon to the east and south,
and five small islands, Bioko, Corisco, Annobón, Elobey Chico (Small
India’s expertise and assistance Elobey), and Elobey Grande (Great Elobey).
Formerly the colony of Spanish Guinea, its post-independence
in refining, capacity building name evokes its location near both the Equator and the Gulf of Guinea.
Equatorial Guinea is the only sovereign African state in which Spanish
and training of their manpower is an official language. Equatorial Guinea has become one of sub-
Saharan Africa's largest oil producers. With a population of almost
for the petroleum industry three quarters of a million, it is the richest country per capita in Africa.

The hydrocarbons industry accounts for

77% of annual GDP, more than 95% of
exports and nearly 90 percent of
government revenue in Equatorial
Guinea. Over a period of two decades,
MoU for Energy Cooperation since the Zafiro field was discovered,
Equatorial Guinea has developed one of
Narendra K. Verma, Managing Director.
Africa’s largest oil and gas sectors
The MoU provides the basis for a comprehensive
cooperation in multiple areas of the energy sector,
including offshore oil and gas exploration in
Equatorial Guinea plus midstream and downstream
projects. The MoU is considered the foundation for
future discussions that will take place in the coming
weeks between the both parties to reach further
MMIE and ONGC Videsh meeting in progress
agreements.
It is learnt that the agreement is the result of
several weeks of bilateral negotiations following
directives made last October by Equatorial Guinea
President, Teodoro Obiang Nguema Mbasogo, and
India Prime Minister Narendra Modi to enhance
cooperation between both countries.
ONGC Videsh has made investments in Africa a
top priority of its 2016 agenda. The company plans to
double its spending on the continent to $16 billion
over the next few years as it evaluates multiple
Mr. Gabriel Mbaga Obiang Lima, Minister of Mines, Industry and Energy,
exploration opportunities. It is learnt. Equatorial Guinea exchanging MoU documents with Mr. Narendra Kumar
“On behalf of the Ministry of Mines, Industry and Verma, Managing Director, ONGC Videsh Limited in New Delhi
Energy, we are delighted to enter into this agreement,” them,” he stressed.

said Mr. Lima while talking to DEW. “We have received “We look forward to this occasion for boosting
a clear mandate from the President of Equatorial our ties, particularly in the hydrocarbons and energy
Guinea to execute this cooperation on both the sector,” said Mr. Verma. “This will strengthen the
economic and political front. Going forward, we want relationship between our companies and
to share our very ambitious plans with ONGC for governments. Our Government and Prime Minister
developing upstream and downstream sectors. We are very keen on this cooperation, following the
will be happy to cooperate with ONGC to fulfill all of mandate set forth last October,” Mr. Verma added.
Equatorial Guinea and India - Some facts

Trade between Equatorial Guinea enhanced as the Indian government continent in an effort to increase the
and India has grown significantly in increases investments in Africa’s oil amount of oil it sources from Africa.
recent years. Bilateral trade and gas industry. ONGC Videsh, the India gets 16 percent of its $125
increased from less than $5 million foreign investment arm of India’s billion in oil imports from Africa and
in 2006-07 to $276 million in 2009- national oil company, hopes to is looking to boost that figure to 25
10. The bedrock of these growing double the $8 billion investment it percent in the short term.
commercial ties is the energy has made in Africa and is evaluating Equatorial Guinea and India
sector, which accounted for nearly exploration opportunities in have also worked to enhance
all of India’s $300 million imports Equatorial Guinea. The company relations in areas beyond the
from Equatorial Guinea in 2014. has been looking to acquire oil and energy sector, but so far efforts have
That cooperation will likely be gas exploration licenses on the been slow to gain momentum.

an interest to know about our experiences on our Working Groups to pursue our mutual interests in
developmental path. This has prompted us to chalk the field of hydrocarbons”.
out a program of activities for 2016, Mr.Pradhan said. Talking to DEW Mr. Pradhan said, during the
During the calendar year 2016, we will mount Conference and in the bilateral meetings, we
composite delegations comprising upstream, emphasized Indian government’s thrust on
downstream and EPC service providers from both diversification of import sources for crude oil and
public and private sector to countries where we natural gas, and to explore avenues to further
assess potential for future co-operation, he stressed. increase our petroleum imports from Africa.
The minister added, “I agreed with my counterparts Minister Mr. Pradhan added, Indian companies are
to enter into institutional arrangements such as Joint keen to invest in upstream assets in Africa and are
prepared to look at all
opportunities on the table with an
open mind. India will not be found
wanting, whether by way of
technical or managerial capability
or resources. Our companies
expressed interest to partner
African countries in developing City
Gas Distribution projects, gas-
based power and fertilizer plants
as well as in laying cross-country
gas pipelines, he apprised.
Today Indian public and private
Minister of State (I/C) for Petroleum and Natural Gas, Mr. Dharmendra Pradhan fourth from right
speaking at a session during the 4th India Africa Hydrocarbons Conference in New Delhi. sector entities have built up an
impressive track record in setting
The India-Africa Hydrocarbon Meet aimed at
up world-class, integrated
greater cooperation between India and African refineries and other complex
continent towards ‘Development Transmitting projects. We believe we can add
Partnership’ in the field of Hydrocarbons. It is a significant value to upcoming
projects in Africa. During the B to
continuation of the discussion revolving around B meetings this was put across
synergies between India and Africa and aimed to our African friends, Mr. Pradhan
at strengthen the ties between the two. The pointed out.
It may be noted that India and
partnership would enable India to enhance its many countries in Africa have a
energy security while nurturing Africa’s similar demographic and socio-
Hydrocarbon’s sector growth on several fronts economic profile. They share
like capacity building, environmental similar challenges. One such
challenge is of providing universal
sustainability, human resource development access of reliable, affordable,
and employment generation. India and African clean fuel to the vast sections of
nations have always enjoyed strong historical, our population.
As a part of US$ 10 billion
political and cultural ties. India is importing concessional lines of credit
close to 75% of its crude oil requirements while announced during 3rd India-Africa
several African nations are rich in hydrocarbon Forum Summit 2015 by Prime
Minister, both Indian and African
resources. Thus cooperation in the hydrocarbon sides will work to identify projects
energy sector with African nations is important in hydrocarbon sector which can

Minister of State (I/C) for Petroleum and Natural Gas, Mr. Dharmendra Pradhan fourth from
right at a session during the 4th India Africa Hydrocarbons Conference in New Delhi.
Energy security stands as one of the major

focus area of the bilateral ties between India
and Africa. Africa with its huge hydrocarbon
resources and India with its rapidly rising
demand of huge human resource, experience,
technology and ability to invest capital are
natural partners, poised for future growth.
African imports play a significant role in
meeting the demands of India to an extent that
Nigeria stood as the second largest supplier
of oil to India in June, 2015. According to
African leaders owing to rich natural resources
in Africa, there are opportunities at various
levels to partners in growth with India
be implemented under this Lines of Credit, Mr. Pradhan said.
During the last India-Africa Forum Summit, Prime Minister had
announced 50,000 scholarships for African students in the next 5 years
including 250 scholarships in petroleum sector. I am glad to announce
an additional 250 fully funded scholarships for African nationals for
technical and professional courses in the hydrocarbon sector in Indian
institutes, the minister disclosed.
During the bilateral meetings, it was also agreed to provide
facilitating framework, wherever required, for public and private sector
companies of India and the African countries to undertake oil and gas
projects. A number of Indian companies from the petroleum industry -
including leading public and private sector players - held B to B meetings
with their African counterparts on the sidelines of the conference. ONGC
Videsh Limited was quick to sign a MoU with Equatorial Guinea for co-
operation in pursuing E&P activities (see details of the MoU on page
no. 24-25). dewjournal.com

dewjournal.com Technology
CARBO KRYPTOSPHERE LD Technology

maximize hydrocarbon flow for the life of the well
C ARBO Ceramics Inc.
has announced the
successful use of
“Integrating
KRYPTOSPHERE LD
technology into our
KRYPTOSPHERE® LD, its
KRYPTOSPHERE LD significantly completion design is an
ultra-conductive, low-
exceeds the conductivity of existing low- example of how CONSOL
density ceramic proppant
density proppant and reduces costly Energy has achieved the
technology, in the Utica for
wear-and-tear on pressure pumping completion efficiency that
CONSOL Energy, a equipment, ultimately providing higher has allowed us to
leading Appalachian basin production and estimated ultimate showcase three of the top
producer. This is the first recovery (EUR).In addition, the ten dry Utica well results
well to utilize KRYPTOSPHERE LD technology to-date across the
KRYPTOSPHERE LD and provides higher conductivity, improved industry,” remarked Kirby
joins KRYPTOSPHERE proppant transport and increased propped Walker, Director of
HD as another product in fracture volume compared to Regional Operations,
the KRYPTOSPHERE intermediate-density and bauxite ceramics CONSOL Energy.
ultra-conductive proppant “Commercializing
technology platform to maximize hydrocarbon flow innovations like KRYPTOSPHERE LD that lower the
for the life of the well. operator’s cost to produce oil and gas is a necessity
In its first application, KRYPTOSPHERE LD was in today’s challenging environment,” added Don
used at a depth of approximately 13,500 feet. Under Conkle, Vice President of Sales and Marketing,
these stress conditions, this technology was CARBO. “Working with leading operators such as
selected for its better economics, strength, improved CONSOL Energy who make it possible to introduce
proppant transport and increased propped fracture such technologies affirms the investment CARBO is
volume. KRYPTOSPHERE LD eliminated the need making in technologies that improve reservoir
for gel and cross-linked fluids, leading to a reduction recovery and F&D costs.”
in overall completion cost. Initial production from the CARBO focuses on integrating technologies to
first well using KRYPTOSPHERE LD was prolific, produce engineered solutions in its Design, Build,
flowing more than 61.9 MMcfd of natural gas in a 24 and Optimize the Frac® technology businesses,
hour period and making it one of the highest delivering important value to E&P operators by
producing wells in the Utica to date. increasing well production and EUR.
KRYPTOSPHERE LD is engineered to have the CONSOL Energy Inc. is a Pittsburgh-based
same characteristics as KRYPTOSPHERE HD – producer of natural gas and coal. The company is
mono-sized with exceptional strength, durability and one of the largest independent natural gas
smoothness–providing high conductivity across the exploration, development and production companies,
entire range of low to high stress well conditions. It with operations centered in the major shale
significantly exceeds the conductivity of existing low- formations of the Appalachian basin. CONSOL
density proppant and reduces costly wear-and-tear Energy deploys an organic growth strategy focused
on pressure pumping equipment, ultimately on rapidly developing its resource base. As of
providing higher production and estimated ultimate December 31, 2014, CONSOL Energy had 6.8 trillion
recovery (EUR).In addition, the KRYPTOSPHERE LD cubic feet equivalent of proved natural gas reserves.
technology provides higher conductivity, improved The company’s premium coals are sold to electricity
proppant transport and increased propped fracture generators and steel makers, both domestically and
volume compared to intermediate-density and internationally. CONSOL Energy is a member of the
bauxite ceramics. Standard & Poor's 500 Equity Index. dewjournal.com

dewjournal.com

dewjournal.com Reservoir Modeling
Quantifying uncertainty
through the Roxar ‘Big Loop’
This article has described how new technologies can help Asian asset teams achieve
a closer integration throughout the seismic to simulation workflow - between the
classical domains of geophysics, geology and reservoir engineering.
The foundation for this approach is the Roxar ‘Big Loop’ workflow and it’s new
evergreen, ensemble workflows that can be refined, updated and used to test various
assumptions, as modelers and engineers together move through the different decision
gates. The result for Asian operators will be improved information for field development
planning and well placement and better investment returns from reservoirs - crucial at
a time of low oil & gas prices.
that that the structural model is

often ‘locked in’ as soon as the
structure has been defined. This
Eirik Gudmundsen rules out future updates – even
Regional Director Asia Pacific, when fast changing data arrives–
Roxar Software Solutions, and can lead to a higher risk of
Emerson Process Management geological inconsistencies
T he calculating of uncertainty
within the reservoir’s
geological structure is one of the
most important factors for
identifying both in-place and
recoverable hydrocarbons in Asia
today. Yet, while its’ significance is
well-known to practitioners, too
often such uncertainty is
overlooked.
While time and resource
constraints may often be the reason
for this, in many cases the structure
of the reservoir modeling workflow
and its integration between
different domains are reasons as
well.
The sequential focus of many
reservoir modeling workflows and
reservoir simulation’s limitations
(where changing the geometry of
the simulation grid is almost the
same as starting again) means

Reservoir Modeling dewjournal.com
emerging in the simulation Through implementing the ‘Big Loop’

model(s).
approach to reservoir modeling -
Linked to this sequential
approach is the lack of integration customers can improve the efficiencies
between different disciplines and and integration of their different disciplines
domains, where uncertainties are
sustained within each domain which customers can keep their planning decisions in Asia.
rather than being captured and reservoir models up to date; the
propagated throughout the whole ensemble workflow where the Updating the Velocity &
workflow. solution allows risk to be quantified Structural Model
Against the current industry across the portfolio and One key part of the new workflow is
backdrop of low oil prices and a uncertainties propagated from the automated updating of the
need to increase investment where they belong to where they structural and velocity model based
returns, this article will argue that matter; and the collaborative on a Bayesian geostatistical
there is a need for improving the approach where - through approach to depth conversion.
approach to reservoir modeling in implementing the ‘Big Loop’- The updating of reservoir
Asia today - both to improve customers can improve the models can often be costly and
efficiency and to make better efficiencies and integration of their manually intensive, particularly
decisions. different disciplines. when including new well data.
This article focuses on the The result will be a repeatable Traditional approaches where
importance of the Roxar ‘Big Loop’ and automated workflow that is depth surfaces are conditioned to
approach to reservoir modeling and easy to update, where uncertainties new well observations can also
its three main characteristics. can be added at any level, and that lead to unintended errors, such as
These consist of the evergreen generates crucial information for zone pinch out and wells ending
nature of the workflow through future field development and up in the wrong zone.
Velocity modeling and depth
conversion also come with large
uncertainties, mainly because
there is a lack of data to condition
to, particularly for estimating
anisotropy or directional
dependencies of seismic velocity.
Figure 1 illustrates how a new
well has been drilled and where
there is a mismatch between the
depth information of the well and
the existing structure (a and b). In
such cases, the traditional
handling of this problem is to
condition the depth surfaces to the
new well observations (c). This,
however, can lead to unintended
errors (zone pinch out and wells
ending up in the wrong zone) as
already mentioned.
Figure 1d, however, shows an
alternative solution where the new
data is viewed in relation to all the
Fig.1 existing information, and predicts

which changes are necessary to combines all information on time of the whole gridding and property
incorporate the new data in a interpretation, depth observations, modeling workflows, depending on
robust way to ensure consistency. thicknesses, surface correlations, how much impact the new well is
This can, for example, be an update velocity and associated predicted to make. The automated
of the velocity model, a local uncertainties to make process also makes a most likely
adjustment of the surfaces or a geostatistical predictions of the velocity model in sync with
combination of both, depending on velocity model. interpretation in time, depth
the relative uncertainties allowing Figure 2illustrates how information and their associated
for the changes. geostatistical approaches to depth uncertainties.
Recent technology advances conversion under uncertainty
are leading to more efficient model produces: a) a most likely model; The Evergreen, Ensemble
updates of the reservoir structure b) an updated velocity model; and Workflow – Automated
(e.g. Stenerud et al. 2012)with the c) an uncertainty estimate of the Uncertainty Assessment
key outcome being a robust and prediction, given in one standard Too often in the past, there has
integrated update of the velocity and deviation. The prediction error (one been a tendency for domain-
structural model through a reusing standard deviation) gives a specific working practices to take
of the existing workflow (figures 1b quantification of how much the precedence over the common
and d). This conditioning horizons can shift and still be goals of the modeling project.
technique, combined with the consistent with all input data. Moreover, uncertainties tend to be
existing modeling framework, The implemented algorithm sustained within each of the
allows Asian operators to support within the Emerson approach domains, instead of a collective
evergreen workflows consistent ensures tight integration of the understanding of which
with all the latest information. geophysics time/velocity domain parameters and input matters to
With this in mind, Emerson has and depth domain, strengthening achieve the project’s end goals.
developed tools for the automated model updates and uncertainty With an integrated framework,
incorporation of multiple structural workflows. In addition, the however, any discrepancies can be
realizations based on uncertainties algorithm allows for the utilization identified and fixed earlier in the
in both the velocity model and of depth information along process with all domains aware of
seismic interpretation. horizontal wells – for example, the bigger picture and the modeling
The solution is based on a conditioning the horizons to project’s overall goals.
Bayesian geostatistical approach specific zones along the wells. Emerson’s solution to this
to depth conversion ((e.g. The benefits will be adjusted challenge is to introduce the Roxar
Abrahamsen et al. 1991, depth maps and a 3D grid that ‘Big Loop’ workflow that spans the
Abrahamsen, 2005) that adds value matches the new well data. This relevant input data, such as
to existing velocity modeling can be done quickly by adjusting seismic interpretation, right
practices. The Bayesian approach the grid to maps, or through a rerun through to the end-goal of the
Fig.2

Reservoir Modeling dewjournal.com
Calculation of prediction uncertainty from an ensemble within Roxar Tempest
project, such as in-place volumes be added in the domain where they as well as the import of simulation
or production forecasts. belong (for example, static), and results from all common
This is achieved by providing a propagated to where they matter simulators.
direct link between the (for example, production). For each simulation run, for
geomodeling workflow and While Roxar RMS has an example, Tempest ENABLE calls
simulation and developing an extensive workflow manager that Roxar RMS to automatically run the
automated workflow that combines supports automated workflows workflow with specified
the Roxar RMS reservoir modeling with the export to flow simulators a parameters and couples the output
software suite with the Roxar key outcome, Tempest ENABLE to simulation. This automated
Tempest reservoir engineering can control the generation of input setup is the foundation for
software suite and its uncertainty parameters and their distributions, generating ensembles of models
analysis tool, Tempest ENABLE.
Once the workflow has been While Roxar RMS has an extensive workflow
set up, it can be run automatically
to produce as many realizations
manager that supports automated workflows
and simulation runs as needed. with the export to flow simulators a key
The outcomes from these outcome, Tempest ENABLE can control the
processes can then be used to
generation of input parameters and their
understand the sensitivity and
interplay of the many parameters
distributions, as well as the import of
involved. Hence, uncertainties can simulation results from all common simulators

encompassing the many uncertainties in other domains.

uncertainties, including those from
the geophysical, petrophysical or Concluding Thoughts
geological domains. This article has described how new
With such an effective and technologies can help Asian asset
automated ensemble-based teams achieve a closer integration
workflow, more time can then be throughout the seismic to
spent where it really matters, such simulation workflow - between the
as analyzing input data, testing classical domains of geophysics,
assumptions for improved geology and reservoir engineering.
understanding, and optimizing the The foundation for this
field’s development strategy. approach is the Roxar ‘Big Loop’
Another positive by-product of workflow and it’s new evergreen,
the new workflow is that of ensemble workflows that can be
increased collaboration between refined, updated and used to test
asset members and different various assumptions, as modelers
domains. and engineers together move
With the new approach, all through the different decision gates.
asset members will share a The result for Asian operators
common workflow and contribute will be improved information for
in the same time frame. The field development planning and
simulator, for example, can well placement and better
immediately pick up changes in the investment returns from reservoirs
geomodel and its’ impact can be - crucial at a time of low oil & gas
utilized for predictions. In this way, prices.
each specialist can see the direct
influence of his or her domain on References
the bigger picture. Abrahamsen, P. [2005] Combining
In addition, what is carried out Methods for Subsurface
in one domain can be automatically Prediction. In Leuangthong, O.
tested with a shared responsibility and Deutsch, C.V. (Eds.)
for tasks across asset members Geostatistics Banff 2004, Vol.
who must collaborate in choosing 2, Springer, Dordrecht, 601–
the correct parameters. This 610.
allows for uncertainties to be added Stenerud et al, 2012, SPE 159746
in the domain they apply to, quality “Added Value by Fast and
controlled by the domain Robust Conditioning of
specialists, and further propagated Structural Surfaces to Horizontal
throughout the workflow to evaluate Wells for Real-World Reservoir
the sensitivity relative to Models. dewjournal.com
about the author
Based in Kuala Lumpur, Eirik is Regional Director Asia Pacific for Roxar
Software Solutions, part of Emerson Process Management, where he
is responsible for the sales and service of all Roxar software products
throughout the region. Eirik has been at Roxar since the year 2000 with
previous roles including Software Engineering Manager, Marketing
Manager and Principal Software Engineer. Eirik is a graduate of the
University of Oslo.

Offshore Well Intervention dewjournal.com
Photo courtesy: BG E&P India Limited presentation
Well Interventions from limited

access platforms in matured
assets Panna Field, India
*
Sandeep Nayak, Well Service Manager, BG E&P India Limited

(* The presentation was delivered at Offshore Well Intervention (OWI) Workshop APAC 2015)
W ell interventions are helping to deliver increases in production, better well

integrity and cheaper well P&A. In the latest well intervention projects and
initiatives being carried out, BG Group created their own pumping support vessel
with a “fit for purpose” pump package and the operational benefits they had from
employing this novel approach to intervention was noteworthy.
With increasing well intervention requirements in Panna Field and traditional
approach unable to meet growing demand, a novel low cost approach led to pumping
support vessel was devised by BG Group. Due to a lack of services available in the
region and limited deck space offshore, BG Group created their own service vessel.
BG Group used their vessel which doubled the work delivery. They put a lot of “right
people in the right place” to get the work completed.
BG successfully did the design to execution for the conversion, the concept has
proved successful with a record 131 intervention delivered coupled with excellent
HSSE performance according to BG.
Indian Perspective:
• Due to a lack of services available in the region and limited deck space offshore,
BG Group created their own service vessel
• Indian operators are looking for more service companies to move into the region
to assist in upcoming well intervention programmes
• BG Group used their own vessel which doubled the work delivery. They put a lot of
“right people in the right place” to get the work completed

dewjournal.com Offshore Well Intervention
In the latest well intervention

projects and initiatives being
carried out, BG Group created
their own pumping support
vessel with a “fit for purpose”
pump package and the
operational benefits they had
from employing this novel
approach to intervention

Offshore Well Intervention dewjournal.com

dewjournal.com Offshore Well Intervention

Pipeline Technology dewjournal.com
A new and innovative

approach to pipeline
repair has helped to
achieve dramatic cost-
savings on the recent
repair of a live subsea
pipeline in the Java Sea,
Indonesia. The objective
of the repair operation
was to seal a tear on a
weld seam by installing a
permanent solution
The onsite repair operation
New approach to pipeline

repair reduces costs
Wander van Weerden, IRM Systems B.V., The Netherlands
I ndependent Risk Management Systems

B.V. (IRM Systems) the independent
authority on emergency pipeline repairs,
company – and nearly was – but in this
instance, the operator decided to do
something different. It decided that it
announced that as a result of a new and should be executed by a smaller service
innovative approach to pipeline repair, it contractor, drawing upon the services of a
contributed to achieving dramatic cost- constellation of specialist providers,
savings on the recent repair of a live including IRM Systems.
subsea pipeline in the Java Sea,
Indonesia. The objective of the operation New approach reduces costs without
was to seal a tear on a weld seam by lowering margins
installing a permanent repair solution. The “constellation” approach involved
IRM Systems began providing using vessels of opportunity, independent
engineering services for the project in diving and survey contractors, engineering
January 2015. Normally, the operation specialist IRM Systems, the equipment
would have been executed by a major EPIC manufacturer, and the regulator. Despite
By using the new “constellation” approach to pipeline

repair, a live subsea pipeline in the Java Sea,
Indonesia, was repaired on time for much less money

dewjournal.com Pipeline Technology
the organizational "This project is solid To ensure that the

challenges, this project would succeed,
method allowed the
evidence of great the operator brought a
operator to interface innovation, in which certification body on
with one lean, flexible out-of-the-box thinking board to assist with the
primary contractor. engineering and advise
really produced
Because margins were on overall quality.
not compounded by the dramatic cost-savings. Working with IRM
multiple layers of Much of what we are Systems, the primary
contracting that contractor selected the
seeing in response to
traditionally make up manufacturers and
the structure used by an today’s low oil prices fabricators of the repair
EPIC company, the is contractors and clamp, and conducted
operator immediately their subcontractors offshore surveys in
realized the financial cooperation with
benefit. As for those
taking more and more specialist survey
companies executing risk to offer a contractors. The
the project, rates were compounded savings components of the
not squeezed and risk repair solution were
was more equitably
to the client. The tested in Norway and
distributed. approach that was the Netherlands in
used to complete this August, and
Innovative method successfully installed
complex repair project
offers cost-effective on to the live gas
alternative proves that it is a pipeline in October
"This project is solid realistic, completely 2015, well within
evidence of great schedule.
viable alternative"
innovation, in which out- Given the success
of-the-box thinking - Wander van Weerden of this project, the
really produced operator plans to use
dramatic cost-savings,” the approach used for
said Wander van this project as the
Weerden, Project standard template for
Manager for IRM more projects
Systems. “Much of what throughout the region.
we are seeing in Not just repair projects,
response to today’s low but for routine
oil prices is contractors maintenance and
and their inspection tasks.
subcontractors taking
more and more risk to Optimum results for
offer a compounded less money
savings to the client. According to IRM
The approach that was Systems, the operator
used to complete this received the same high
complex repair project quality service and
proves that it is a materials in the same
realistic, completely amount of time, but for
viable alternative." less money. “As for the

Pipeline Technology dewjournal.com
A graphic image of a habitat installed over a pipeline.
Whether the industry rises to the occasion by

challenging the status quo remains to be seen, but the
future is clear: innovation holds the key
service providers, it’s business as usual. navigate through – and beyond - the dark
It’s the way forward for the industry, whether tunnel of low oil prices.”
oil prices are high or low,” said Rutger Globally, low oil prices have boosted
Schouten, General Manager of IRM a jittery world economy. On the other hand,
Systems. oil and gas exploration costs money. In
The key to the success of this project order that the world economy and energy
is twofold. “First, you must have a highly industry thrive, traditional practices must
organized body to coordinate the project. change. And change calls for innovation.
It’s essential that it has a strong grip on For IRM Systems and its partners,
all of the players,” said Rutger Schouten. innovation has resulted in a more cost-
“Secondly, the team must have hands-on effective, professional approach to
experience that duplicates - or exceeds - pipeline repair. Whether the industry rises
that of bigger players. Without that, you to the occasion by challenging the status
will not achieve the same quality targets quo remains to be seen, but the future is
as those completed by bigger players.” clear for IRM Systems: innovation holds
the key.
Light in the darkness IRM Systems is dedicated to helping
When it comes to effective project pipeline operators and owners
management, the industry has longed for understand, mitigate and manage risks
value-added creativity. “This project that could damage or interrupt the
illustrates that costs can be reduced while operation of critical pipeline networks. The
maintaining quality standards and company specializes in developing,
operational excellence. When led by a implementing and operating Emergency
reliable independent source, Pipeline Repair Systems (EPRS) and
collaboration can be very powerful and pipeline integrity services. These services
extremely effective,” said David Obatolu, are provided by an experienced team of
General Manager of IRMS UKWA. “For the risk, marine and pipeline technology
industry, this approach offers a light as we specialists. dewjournal.com

dewjournal.com Industry Standards - Pipeline
Developing codes for cable

and pipe laying equipment
The JIP will develop a set of guidelines

to be incorporated into DNV GL
Deborah McCombie
Head of Marketing & Communications, Aquatic Engineering & Construction Ltd, UK
A quatic Engineering & Construction Ltd, an Acteon

Company, is working with DNV GL and other
organisations in the subsea supply chain, on a Joint
procurement and approval of equipment intended for
use in offshore cable and pipe laying operations. DNV
approached Aquatic because we are the obvious
Industry Project (JIP) to develop a set of guidelines to supply chain choice, due to our market leading
be incorporated into new or existing DNV GL Offshore reputation, our extensive range of products, four
Standards or Recommended Practices. The decades of experience and our close working
guidelines will be, ‘The development of codes for relationships with all of the leading contractors.
offshore equipment for cable and pipe laying-phase 1.’ “The work involves engineering and technical
David Tibbetts, vice president, technology, experts from contractors and equipment
Aquatic, said, “We were eager to get involved with manufacturers like Aquatic, collaborating in order to
this ground breaking project due to the lack of coherent establish joint industry guidelines for our type of
standards for the specification, design, manufacture, equipment, where at present nothing exists. Subject

Industry Standards - Pipeline dewjournal.com
to satisfactory completion of unified approach will ensure standardisation across

the first two phases, a third the supply chain. The JIP will deliver a decision tool
phase undertaken by DNV GL that can be used by all stakeholders during the
will result in the publication of specification, design, manufacture, procurement and
an Offshore Standard or approval of any equipment intended for use in
Recommend Practice for offshore cable/pipe laying and recovery.”
cable/pipe laying equipment.” Phase 1 participants include: Allse as
The Road Map for the Engineering; Amcly de Norson Engineering; Aquatic
project proposed by DNV GL in Engineering & Construction Ltd; IHC Engineering
November 2014 consisted of Business; IHC SAS BV; MAATS Tech Ltd; NLI Offshore
the following phases: &Marine Products AS; Parkburn Precision Handling
• Phase 1: Mapping the Big Systems Ltd; Reel SAS (IMECA); Saipem Group;
Picture. This is intended to Subsea 7 and Technip UK Ltd.
provide a common, system level Aquatic is the market leading independent
understanding of the equipment operator of modular carousels, reel drive systems
required for the successful and tensioner solutions for the global oil and gas,
laying of cables and pipes. telecommunications and energy industries.
• Phase2: Mapping the Acteon provides a range of global subsea
Detail. This is intended to focus services from surveying, installation, asset integrity
on the individual components management through to decommissioning.
of the system to identify their Acteon's aim is to define, shape and lead subsea
inputs, outputs and interaction services through best-in-class expertise offering full
with other system components. market coverage across the whole life of a subsea
field. Acteon’s integrated approach to
Aquatic Engineering is working with DNV GL and subsea services makes it easy for clients
other organisations in the subsea supply chain, on to combine capabilities to meet their
a Joint Industry Project (JIP) to develop a set of specific project needs. Acteon’s subsea
guidelines to be incorporated into new or existing services companies share knowledge and
DNV GL Offshore Standards or Recommended experience across four business segments,
Practices. The guidelines will be, ‘The Development survey, monitoring and data; risers and
of Codes for Offshore Equipment for Cable and Pipe moorings; seabed foundation
Laying – Phase 1.’ The JIP will deliver a decision technologies; and project support services,
tool that can be used by all stakeholders during the to deliver highly efficient solutions tailored
specification, design, manufacture, procurement to a client’s unique challenges, thereby
and approval of any equipment intended for use in reducing overall cost, risk and complexity.
offshore cable/pipe laying and recovery Acteon provides manpower, project
execution strategies, portable machining
• Phase 3: Following the culmination of Phases 1 and cutting equipment and installation and recovery
and 2, which are scheduled to be completed during services to add value and support the delivery of major
2016 and will result in the creation of industry projects by creating effective, tailored solutions for
guidelines and a glossary of common terms for clients. Acteon offers specialist equipment, including
cable and pipe laying equipment, there is potential riser systems, installation workover control systems,
for a third phase, which will lead to the publication mooring systems and innovative packaged solutions
of a DNV GL Standard for Certification or to align with procurement strategies. The company
Recommended Practice. provides access to the world’s largest modular carousel
Dr. Eng Marius Popa, lead naval architect, DNV and modular flexible pipe and universal laying
GL, said, “Consistency and collaboration within the equipment support along with specialist services to
industry is essential. Individual practices create reduce capital expenditure and manpower provision to
unnecessary cost and risk, so the development of a meet project needs worldwide. dewjournal.com

L to R: Mrs. Jatinder Peters, Seceratary, PETROTECH Society, Mr. C.L.Baloni, Executive Director and Head Geophysics, KDMIPE, ONGC and Mr.
A.K. Parekh, General Manager (Geology), KDMIPE, ONGC at the inaugural session of the 11th Program on ‘Latest Trends in Petroleum Exploration’
Experts discuss new technologies and

trends in petroleum exploration
A report by DEW Correspondent
T he 11th Program on ‘Latest Trends in

Petroleum Exploration’
conducted by PETROTECH Society with
was
The eleven technical presentations
during the Program covered various facets
of geosciences (geology, geophysics and
technical support of ONGC at K.D.Malaviya geochemistry), remote sensing, well
Institute of Petroleum Exploration (KDMIPE), ONGC logging and unconventional gas resources were
in Dehradun on February 4-6, 2016. The event focused delivered by senior ONGC experts.
on different aspects of geosciences and one day field With over 60 participants mostly from the
visit to an adjoining area of the Doon valley important petroleum universities the program also had E&P
from the geological point of view. The participants professionals from R&D institutes, ONGC and other
were also taken around KDMIPE’s Geology, oil companies.
Geochemistry and VRC laboratries. In her opening remarks Mrs. Jatinder Peters,
Experts deliberate on emerging trends in petroleum exploration at a joint technical Program

organized by PETROTECH Society and ONGC at K.D.M. Institute of Petroleum Exploration
A section of the audience at the 11th Program on ‘Latest Trends in Petroleum Exploration’ at KDMIPE, ONGC in Dehradun

Secretary, PETROTECH On lines to bolstering

Society highlighted the industry-academia
importance of the subject partnership,
of the Program and Mr.Baloni made a
pointed out that it has mention of ONGC
been designed to provide entering a
participants an in-depth Memorandum of
knowledge of the latest Collaboration with
trend in petroleum Pan-IIT to encourage
exploration and the collaborative
ongoing research. She programme for
added it is an opportunity developing
for the participants to indigenous
interact face to face with technologies to
senior experts of ONGC - enhance exploration
the speakers, who are all and exploitation of
acclaimed with wide and Mr. C.L.Baloni, Executive Director and Head Geophysics, KDMIPE,
hydrocarbons and ONGC delivering the inaugural address at the 11th Program on ‘Latest
diverse experience. On the alternative Trends in Petroleum Exploration’ conducted by PETROTECH Society
objective of the Program, with technical support of ONGC at K.D.Malaviya Institute of Petroleum
sources of energy Exploration (KDMIPE), ONGC in Dehradun on February 4, 2016
Mrs. Peters said
PETROTECH Society has been regularly carrying out
over the years technical programmes for different
disciplines of the oil and gas industry which have
benefitted the oil companies and academia alike. This
Program is on lines to that objective, she said.
Inaugurating the Program Mr. C.L.Baloni, Executive
Director and Head Geophysics, KDMIPE, ONGC
Mrs. Jatinder Peters, Seceratary, PETROTECH Society delivering the
emphasized the importance of emerging trends and welcome address
new technologies in petroleum exploration to excel.
It is essential he said, in the present scenario to
develop cost effective technologies to counter the low
oil prices. This is a testing time for the oil industry as
the oil prices have virtually touched production cost.
It is in this context that the theme of the Program is
very timely and apt, he added.
Mr. Baloni asked the participants to make the best
utilization of the opportunity to make this Program a
learning experience as some of the best brains of
ONGC were to deliberate on various technical topics.
Commenting on the good turn around of
participants from petroleum/geosciences universities
and colleges Mr.Baloni stressed on the need for
greater industry-academia partnerships.
On lines to bolstering industry-academia
partnership, he made a mention of ONGC entering a As a special invitee to the 11th Program on ‘Latest Trends in Petroleum
Memorandum of Collaboration (MoC) with Pan-Indian Exploration’ Mr. Arun Kr. Singhal, Chief Editor, DEW Journal lighted the
lamp along with other dignitaries at the inaugural session. (L to R): Mr.
Institute of Technology (IIT) to encourage collaborative A.K. Parekh, General Manager (Geology), ONGC; Mr. C.L.Baloni,
programme for developing indigenous technologies to Executive Director and Head Geophysics, KDMIPE, ONGC; Mrs.
Jatinder Peters, Seceratary, PETROTECH Society and Mr. Arun Kr.
enhance exploration and exploitation of hydrocarbons Singhal, Chief Editor, DEW Journal.

“The low price era is & Development Directorate (E&D), ONGC

perhaps the right time for touched upon the E&P Business Cycle and
explorer with deep Exploration Life Cycle.
pockets to negotiate the Mentioning few basic tenets of
best deals for exploration exploration, he also talked about Petroleum
projects. This is a time System, Play Prospect etc.
for reserves On national exploration front, Mr.
building in areas Chakrabarty touched the pre and post
where the lead time is independence scenarios of the
more than seven conventional hydrocarbon resources in
to eight years” India. He said, out of the total 28085 MMT
- Mr.Devashish Chakrabarty prognosticated resources, 11235 MMT
General Manager (Geology) (40%) has been converted to In Place
E&D Directorate, ONGC volume of hydrocarbon as on April 01, 2015.
Mr.Devashish Chakrabarty The presentation also covered the
and alternative sources of energy. Pan-IIT is a major shale gas bearing basins besides shale gas
consortium of seven premiers IIT’s namely, IIT- reservoir properties and resources of India.
Kharakpur, IIT-Kanpur, IIT-Madras, IIT-Mumbai, IIT-Delhi, On the global exploration scenario, Mr.
IIT-Guwahati and IIT-Roorkee. With this collaboration, Chakrabarty spoke about the undiscovered
while ONGC will use the intellectual expertise of the conventional oil and gas resources of the world. He
IITs, the actual work will be done at ONGC’s in-house even touched upon proven versus recoverable and
R&D Institutes and oilfields to enable the best talents unconventional world oil reserves and hot-spots.
of the country to supplement each other by applying Mentioning Africa as a region which has turned
their mind on cutting-edge technologies to boost oil from ‘Fragile to Agile’, he said most significant oil
and gas production in the country. and gas discoveries during the year 2014 have all
Mr.Baloni disclosed ONGC in collaboration with been offshore Africa.
multiple partners across the industry, has led He also touched upon South America, Venezuela
government’s National Gas Hydrate Programme and the Arctic oil and gas resources in addition to
(NGHP). As part of NGHP’s second R&D Phase, 42 deepwater exploration global trends. He pointed out
gas hydrate wells have recently been completed with most of the recent success in global exploration has
encouraging results. been driven by deepwater finds. For the bulk of them
In his presentation “Petroleum Exploration: for the past five years or so, 80 per cent of the major
Global and National Scenario” Mr.Devashish discoveries were in deep water. The future deep water
Chakrabarty, General Manager (Geology), Exploration hunt could extend into the Mediterranean, the Atlantic,
the Arctic and other places, he pointed out.
Defining shale gas as the game
changer, Mr.Chakravarty mentioned Beijing
has set a goal of producing 6.5 billion cubic
meters of shale gas annually and has an
ambitious target for 2020 of between 60
billion and 100 billion cubic meters. Foreign
energy companies including Shell,
Chevron, BP, and Total have partnered with
Chinese companies to search for shale gas
in China. PetroChina in joint venture with
Shell has declared a discovery of a major
shale gas field in Sichuan province. During
2015 China has drilled more than 200
exclusive shale gas wells, he apprised.

On the exploration scenario in falling “A key factor in oil

crude prices, Mr.Chakravarty said world exploration is
over, exploration and production has understanding the
slowed as oil prices have crashed to a geological processes
record low. The oil & gas industry, he added, responsible for deposition
is responding to the low oil price of the sedimentary rocks in
environment with exploration budget cuts a basin. The environment
which will average 30% in 2016, leading to of deposition has a direct
suggestions that exploration activity could bearing on the nature of the
be significantly curtailed. Cutting back on rock acting as either
exploration spend has been a core element source or reservoir rocks”
in the strategic response to low oil prices.
- Dr.K.K.Das
In contrast, some of the majors are General Manager (Geology),
continuing to invest through the cycle, with KDMIPE, ONGC
Dr.K.K.Das
Shell keeping conventional exploration
spend flat year-on-year, he said. interpretation of the probable depositional
Even the service industry has reduced its rates environment involves detailed lithofacies and
in order to stay in business. Rigs are now available microfacies studies of subsurface rock in terms of
at a much cheaper rate and so are the services, he its texture, mineralogy and sedimentary structures
pointed out. and its response on electrologs. Another important
Against all this, Mr.Chakarvarty added, the low aspect is reservoir characteristics of rock in terms of
price era is perhaps the right time for explorer with its type of porosity, permeability and any post
deep pockets to negotiate the best deals for depositional diagenetic changes, he mentioned.
exploration projects. The good news is that In the absence of availability of cores in an area,
companies that have capital to deploy for deep-water the subsurface electrologs are of great help in both
exploration and development still have attractive interpretation of sedimentary environments and
opportunities to do so because it is one of the most evaluation of the reservoir rocks. A typical fluvial
important sources of new production. This is a time channel will exhibit a bell shape on the Gamma ray-
for reserves building in areas where the lead time is Resistivity log whereas a delta front environment will
more than 7-8 years, he said. have a Funnel shape response on the log, Dr. Das
D r.K.K.Das, General Manager (Geology), pointed out.
KDMIPE, ONGC spoke about “Geological studies- Thus an integrated geological study provides
Treasure for oil exploration”. crucial input for hydrocarbon exploration in any
Dr. Das mentioned, a key factor in oil exploration sedimentary basin, he stressed.
is understanding the geological processes
responsible for deposition of the
sedimentary rocks in a basin. The
environment of deposition has a direct
bearing on the nature of the rock acting as
either source rock or reservoir rocks. The
sedimentary environment can therefore be
broadly classified as Terrestrial : Glacial,
Lacustrine, Fluvial and Aeolian
environments; Transitional / coastal :
Estuary, Delta, Chennier plain, Tidal flat,
strandplain and Lagoonal environments;
and marine / Deep marine: Shelf, Slope and
Bathyal environments, he said.
He added, the geological studies for

“In the last 20-30 years, subsurface anomalies.

with the development of The presentation on "Modern Seismic
computers, 3D Practices for Petroleum Exploration" by
seismic investigations Mr.R.K.Thakur, General Manager (GP),
have revolutionized Exploration & Development Directorate,
exploration ONGC covered the evolution of Seismic
methodologies. Today Surveys and recent advances in Acquisition,
almost all oil and gas Processing and Interpretation.
exploratory wells He said seismic method gives the best
are preceded by 3-D subsurface structural and lithological image
seismic surveys” and has hence become the primary tool of
petroleum exploration in both onshore and
- Mr.R.K.Thakur
General Manager (GP) offshore. In the last 20-30 years, with the
E&D Directorate, ONGC development of computers, 3D seismic
Mr.R.K.Thakur investigations have revolutionized
Dr. Das even touched both Non-Seismic methods exploration methodologies. Today almost all oil and
and Seismic method of exploration. He made a gas exploratory wells are preceded by 3-D seismic
special mention of the Non-seismic methods which surveys, he said.
include Gravity-Magnetic and Magneto-Telluric survey Mr.Thakur said among the modern practices in
for mapping basement configuration and also sub- Seismic Data Acqusition, Q-Land Acquisition System,
trappean sediments. The other key method he said Azimuthal Surveys, Multi-component Surveys, Time
are Remote Sensing and Geomatics using Satellite Lapse (4-D) Seismic Surveys hold importance.
imageries and morphotectonic analysis for mapping Similarly in Seismic Data Processing techniques, Pre-
the surface structural traces and projecting it to the stack time migration (PreSTM), Pre-stack depth
migration (PreSDM), Reverse time migration
“Seismic method gives the best subsurface (RTM), Velocity model building, Real-time
structural and lithological image and has hence Model Morphing and Migration (RTM3),
become the primary tool of petroleum exploration in Tomography, Waveform Inversion, AVO/
both onshore and offshore. In the last 20-30 years, Inversion, 4D, Q compensation imaging
with the development of computers, 3D seismic holds importance. The modern practices
investigations have revolutionized exploration followed in Seismic Data Interpretation,
methodologies. Today almost all oil and gas Seismic Stratigraphy needs mention.
exploratory wells are preceded by 3-D seismic surveys” He also covered Amplitude Versus
- Mr.R.K.Thakur Offset (AVO) analysis used to predict
General Manager (GP), E&D Directorate, ONGC hydrocarbon (especially gas) and
lithologies.
The modern seismic practices in
petroleum exploration enhance subsurface
understanding; reduce uncertainties and
risks for economic exploitation hydrocarbon
resources Mr. Thakur stressed.
Mr. J N Prabhakarudu, Deputy General
Manager (GP), KDMIPE, ONGC threw light
on "Non-seismic methods in oil exploration"
in his presentation. He said, India's energy
needs are huge while it is producing only
20% of its petroleum demand, though it has
26 petroliferous sedimentary basins.
He defined Seismic as an excellent

method for imaging. Using potential fields

methods viz. Gravity, Magnetic and Magneto-
telluric vast data can be acquired in short
span of time and surveys can be conducted
over the Land, Water and Air depending on
objective. Moreover, these imaging
techniques are non-invasive, environment
friendly and cost effective, therefore, future
oil exploration mostly depends on
application of non-seismic methods/
techniques, he stressed.
Mr. Prabhakarudu added, Magnetic
method - gives the basement configuration;
Gravity identifies – low density zones; MT
Mrs.P.Neeraja Mr. J N Prabhakarudu
discriminates between water and
hydrocarbon in those low density zones, thus (Stratigraphic correlations, Kinetic Studies Petroleum
integration of all G&G data will certainly minimise E&P System Modelling, Volumetric Estimates);
risk and paves the way for discovery of hydrocarbon Geochemistry in understanding and exploration of
fields. unconventional/ alternate energy resources like Coal
The talk by Mrs.P.Neeraja, General Manager Bed Methane, Shale Gas, Basin Centered Gas, Gas
(Chemistry) and Head-Geochemistry
Division, KDMIPE, ONGC covered “Role of
Geochemistry in Hydrocarbon Exploration".
She spoke about the trinity of Geosciences
(Geology, Geophysics and Geo-Chemistry)
used to reduce risk in hydrocarbon
exploration. A paradigm shift of conventional
approach from “Container First” to
“Hydrocarbon First” is used in evaluation of
petroleum systems, she said.
She highlighted the role of geochemistry
in exploration, development and production.
The major highlight of her presentation
were: Surface prospecting (Chemical and
Microbial); Sub-surface prospecting (Source
rock Evaluation, Characterisation of oil, gas
Oil – Oil, Oil-Source correlations, Biomarker
and isotopic high resolution studies,
Reservoir Geochemistry); Formation Fluid
Characterization (Oil and Gas) and their
correlations; Gaseous hydrocarbons, which
she said are generation of gases that occurs
along with oil during Catagenesis stage of
maturation. Only dry gases are generated
during Metagenetic stage of maturation.
Biogenic Gases are generated during
Diagenesis she added.
The presentation also highlighted oil-
source correlations; Genetic Modeling

“It is imperative to coast) in shallow as well as deep water

explore for new environments. Some of the Frontier areas
hydrocarbon resources which are under active exploration are
particularly in Frontier Vindhyan Basin (particularly Son Valley
Basins including Deep sector), Himalayan Foreland, Ganga Basin,
water areas with the help Mahanadi, Kutch-Saurashtra and deep
of evolving technologies water Andaman Basins. In Son Valley sector
and expertise. Frontier presence of high calorific value thermogenic
Basins have potential to gas has been established in recent past
unlock huge yet to find over a large area from unconventional tight
Oil & Gas reserves” and fractured carbonate and clastic
reservoirs. Efforts are on to upgrade this
- Dr.D.K.Srivastava
General Manager (Geology), basin into a producing basin by establishing
Frontier Basin, ONGC commercial gas flow rates by adoption of
Dr.D.K.Srivastava state-of-art technologies, he disclosed.
Hydrates, Underground Coal Gasification and Kutch- Saurashtra offshore is another promising
Biofuels from micro algae and higher plants. basin where significant hydrocarbon discoveries have
Dr.D.K.Srivastava, General Manager (Geology), been made in recent past, he disclosed.
Frontier Basin, ONGC focused his presentation on Exploration in Frontier Basins, Dr. Srivastava said
“Exploration in Frontier Basin”. is challenging primarily because of complex geology,
Giving an overview of the world energy demand inadequate seismic imaging (particularly below
he said this is projected to grow from the current about basalt), logistic difficulty, inadequate understanding
85 billion barrels of oil equivalent (BBOE) per year to of basin evolution & petroleum prospectivity of these
more than 100 BBOE per year by the year 2050. Oil poorly explored areas, high risk, uncertain reward,
and Gas will therefore continue to be the major high cost & technology intensive, non-commercial
component of global energy basket and are expected discovery, unexploited technology and environment
to cater to rising world energy demand in the coming and safety issues (particularly for deep water areas).
decades, he said. In order to meet the requirement, it On the other hand, these basins have potential to
is imperative to explore for new hydrocarbon unlock huge “Yet to Find” oil & gas reserves, he
resources particularly in Frontier Basins including stressed. Frontier exploration offers company
Deep water areas with the help of evolving transformational potential when commercial terms
technologies and expertise, he stressed. and technological innovations are appropriate to the
Dr. Srivastava said India has several Frontier high initial technical risks / uncertainties. Besides,
Basins both on land and offshore (East and West the unconventional hydrocarbon plays including shale
oil / gas, Coal bed methane (CBM) and gas
hydrates is another potential area for
tapping the yet to find hydrocarbon, for
which a separate exploratory campaign is
going on, Dr. Srivastava pointed out.
The presentation on "Basin and
Petroleum System Modeling" by Mr.
D.K.Phaye, Suptdg. Geophysicists, KDMIPE,
ONGC covered key steps in Basin and
petroleum systems modeling/analysis and
a case study on Mumbai Offshore Basin.
Mr.Phaye stressed, Integration of data
also means integrating the people that have
contributed to the datasets like geologists,
geophysicists, paleontologists and

geochemists…
…because this is how the INTEGRATED
picture of the sedimentary basin will
EMERGE…, he said.
Dr. Ashish Mishra, Senior Geologist,
GEOPIC, ONGC in his presentation titled
"Remote Sensing for Hydrocarbons.
Mapping Lithology & Minerals and Detecting
Hydrocarbon Seepages" covered areas like
Imaging Spectroscopy and Data Selection;
Hydrocarbon Seepage and Surface
Expressions; Pixel- vis-à-vis Object-based;
basic to advanced image analysis and
applied remote sensing for hydrocarbon
Dr. Ashish Misra Mr. Tarun Kumar
exploration: direct & indirect.
In his presentation "Unconventional
Natural Gas Resources" Mr.Tarun Kumar,
Chief Geologist, KDMIPE, ONGC covered
Shale Gas, Coal Bed Methane, Basin
Centered Gas and Gas Hydrates.
On the need of unconventional gas
resources he said, the global reserves-to-
production ratio, based on current
consumption levels, is in the range of 40 to
45 years with fossil fuels currently meeting
80% of global energy demand which in
2035 is projected to rise by 40% – with fossil
fuels still contributing 75%. With the ever
widening gap between the energy demand
Mr. D.K.Phaye Dr.Snehasis Chakrabarty
and supply fossil fuels will continue to
provide the majority of global energy needs for the Mr. Kumar advo-
foreseeable future, but are there sufficient resources cated that natural gas
to meet the demand he questioned. offers environmental
On the future aspects of unconventional gas, Mr. benefits, producing
Kumar said considering the increasing demand and upto 60% fewer
supply gap, exploration of unconventional natural gas green house gas
resources needs acceleration. It has become emissions than coal
increasingly clear that natural gas can play an integral in electricity genera-
role in addressing a host of economic, environmental tion and hence a pre-
and energy security challenges. This means that the ferred fuel.
growth in unconventional natural gas production D r. S n e h a s i s
comes at a time when the international energy market Chakrabarty, Suptdg.
needs it most, he emphasised. Geophysicists,
It’s not merely the geology of the rock below the KDMIPE, ONGC pre-
surface that will determine where global natural gas sented a case study Mr. Deepak Kapoor
development goes next. It also depends on the on “Process response depositional modeling”
environment above ground, namely the economic and “Modern Well Logging Techniques” were
political climate in a given region. Development will discussed by Mr.Deepak Kapoor, Deputy General
favor nations with sound energy policies, he said. Manager (W), KDMIPE, ONGC. dewjournal.com

dewjournal.com

Special Report - Event Review dewjournal.com
Petroleum and Geosciences universities/colleges participated in national level

Fest devoted to the oil and gas sector organized by Pandit Deendayal Petroleum
University (PDPU)- Society of Petroleum Engineers (SPE) student chapter
Bright minds from academia bring

in new ideas and innovations to
overcome present O&G challenges
A report by Shreya Sahajpal, SPE Event Coordinator, PDPU
Dignitaries at the inaugural session of PDPU SPE FEST'15 at PDPU campus, Gandhinagar, Gujarat
P DPU SPE FEST'15 was organised by Pandit Deendayal Petroleum University SPE
Student Chapter at the university campus. This Fest was completely devoted to the
oil and gas sector and was the maiden national level Fest by PDPU SPE Student Chapter.
The Fest saw participation by some of the brightest minds from colleges around the
country with a footfall of more than 300 participants and delegates. The three day event
included technical as well as non-technical competitions. Events were judged by Industry
veterans, experts and college alumni. Apart from competitions, there were technical
sessions, panel discussion and Gala night. The Fest created a learning cum fun filled
atmosphere for the students, enabling them to showcase their talent and competence
thus bringing in new ideas and innovations for overcoming the present challenges in
the oil & gas industry. It also helped in providing a platform for interaction between
students from various universities pursuing degrees in petroleum & geosciences.
Participants from renowned institutes/universities from around the country took part
The 3 day Fest included technical and non-technical competitions enabling

students to showcase their talent and competence thus bringing in new ideas
& innovations for overcoming the present challenges in the oil & gas industry

dewjournal.com

Special Report - Event Review dewjournal.com
A glimpse of the inaugural ceremony Lighting of lamp at the Inaugural Ceremony PDPU SPE Fest 2015
Participants at Showcase – Poster Presentation Competition Participants presenting a paper in front of the judges
A team explaining about the Model of Jack-up-rig prepared by them Participants at Showcase – Paper Presentation Competition
in the 3 day colloquium. Opportunities. The panel discussion was planned to

PDPU SPE FEST'15 with its glorious & excellent create a platform for exchanging ideas between the
percept of 'IMAGINE, BELIEVE, SUCCEED' began by corporate leaders across the oil and gas sector.
welcoming the guests, delegates from renowned oil Professionals from ONGC, GSPC, L&T, Gujarat Gas,
and gas companies, faculties and all the participants. Jubilant, Essar, Reliance, Inox India, participated in
The Inaugural Ceremony was graced by Mr. B T V the panel discussion. The discussion was
Seshavtaram, Director G&G, GNRL Oil & Gas, Mr. R. moderated by Dr. Anirbid Sircar, Director, School of
K. Sharma, ED, Head IRS, ONGC (Head SPE India Petroleum Technology (SPT), PDPU.
Section); Mr. Sanjay Parulkar, Secretary, SPE India PDPU SPE FEST’15 was an amalgamation of
Section, Mr. Yash Malik ED, Ahmedabad Asset, ONGC; powerful eminences of the petroleum industry with
Mr. Subhash Shah, Emeritus Professor at University the ignited, zealous minds of students all over the
of Oklahoma (Distinguished SPE Speaker 2012-13); world. The Fest had a plethora of events namely,
and Dr. Anirbid Sircar, Director, School of Petroleum Showcase - Paper/Poster presentation; Apotheosis -
Technology (SPT), PDPU and Mentor PDPU SPE Model Making; Examen-Case Study Competition; Mud-
FEST’15. O-Gee - Mud Preparation; Bid Your Block - Virtual Block
The inaugural ceremony was followed by a Panel Bidding; Exegesis - Well Log Interpretation; Final
Discussion with the theme of “Local Talent, Global Project Competition; Quid Pro Quo - Spot Trading;

dewjournal.com Special Report - Event Review
Catechize - Quiz; Technical Sessions and other In a bid to encourage students the future torch
informal events. As an attempt to connect industry to bearers of the industry DEW Journal as Knowledge
the academia, the organizing committee invited Partner to PDPU SPE Fest 2015 is publishing the
industry experts as judges for various events, from fifteen best technical papers selected by a panel of
companies such as ONGC, GSPC, Aimil, ONGC eminent judges in the journal. This issue carries
Videsh, Gujrat Gas , Adani Gas GSPC LNG and other three papers (Positioned 1st, 2nd and 3rd) of
companies as well academicians from leading Category one of the five categories. The journal will
universities like Nirma, LD college and Indus were carry the remaining papers in the March and April
also invited as judges. 2016 issues.
DEW Journal was Knowledge Partner to PDPU The following page nos. 57 to 76 carry the first
SPE FEST’15. three technical papers of Category - I of PDPU SPE
In the five categories of the Showcase Paper FEST Showcase Paper Competition.
Presentation, 50 technical presentations by students The eminent Judges of the five categories who
of MIT Pune, PDPU, reviewed the technical
Gandhinagar, AHCET, Pandit Deendayal Petroleum papers were:
Graphic Era University, CATEGORY – I: Mr. Anand
Dehradun, RGIPT,
University was declared the Gupta, IRS ONGC
Raebareilly, UMT, champion university and was Ahmedabad, Ms. Poonam
Uttaranchal University, presented ‘THE CHALLICE’- Mishra, School of
Dehrandun, Aditya and Technology, PDPU, Mr.
DUIET related to oil and
trophy at the Fest Parbat Divraniya, Relaince
gas were presented. The Industries, Mr. Anvesh
papers were divided in Mishra, GSFC and Mr.
five categories and five Ashish Srivastava, ONGC
halls. Each hall had five Ahmedabad.
judges in the panel who CATEGORY – II: Mr. Rajan
selected three winners in Desai from Heat Transfer
each category. Research Inc., Mr. Parin
The winners of the Shah, Dept. of Chemical
paper presentations Engg, Institute of
were: PDPU Students celebrating their victory (L to R): Ms. Shreya Sahajpal, Technology, Nirma
CATEGORY – I: Trisha SPE Event Coordinator, Mr. Sanjay Parulkar, Secretary SPE India University, Mr. Y S Navathe,
Section; Abhishek Juneja and Palash Aggarwal, President and Vice
Mishra, PDPU; Debdeep President-SPE Student Chapter, Dr. Anirbid Sircar, Director-SPT, PDPU, Adani Gas, Mr. Abhinav
Ghosal & Vasu Purohit, Garvit Rawlani; and Mr. Vineet Bagaria with Chalice Trophy. Reddy, GSPC LNG and Mr.
UPES; Ketul Khambhayata & Hitisha Dadlani, PDPU; Prakash Kamble, GSPC.
Anish Singh, Simran Singh & Rehmat Walia, UPES CATEGORY – III: Mr. Lalit Mistry, Gujarat Gas, Ms. Ekta
and Kumar Abhishek Singh, G Sudarsan Sai & Prem Saxena, ONGC Ahmedabad, Mr. A P Vyas, Principle,
Shah, PDPU. Saffrony Institute of Technology, Mr. Prashant Vora,
CATEGORY – II: Anish Agrawal, Arpit Mohapatra & Putta Selan Exploration and Mr. Ajay Kumar, ONGC Videsh.
Ravichandra, MIT; Aadri Vishal & Tonmit Taulkdar, CATEGORY – IV: Dr. Sumer Chopra, Director, Institute
UPES; Latika Sharma & Kashika Khera, UPES; Mudit of Seismological Research, Mr. Hiren Patel,
Vajpayee & Kaustubh Raval, PDPU and Darshan Almansoori Specialized Engineering, Mr. Chanchal
Sharma, PDPU. Dass, Dass Oil Field, Mr. L D Mohapatra, Aimil Ltd.
CATEGORY – III: Shashank Kumar & Udai Jain, UPES; and Ms. Deepali Biswas, IRS, ONGC Ahmedabad.
Mohammed Misbah Uddin, Syed Basharath & CATEGORY – V: Mr.Sanjay Parulkar, IRS ONGC
Mohammed Irshad Ansari, AHCET; Shivanshu Ahmedabad, Mr.J Brahma, School of Technology,
Shrivastava, Uday Hajela & Ayush Vohra, UPES; PDPU, Ms.Annapurna Boruah, GERMI, Mr.P H Rao,
Prakhar Sarkar & Atul Khatri, PDPU and Sangbid GERMI and Ms.Suparna Chaudhary, Institute of
Kundu & Nizamul Haque Bhuyan, DUIET. Reservoir Studies,ONGC Ahmedabad. dewjournal.com

Drilling dewjournal.com
Solids control and waste

management in drilling operations
Solids control and waste management in drilling operations is one of the major challenges
that have been faced by the oil and gas industry. Oil and gas well drilling processes
generate large amount of drill cuttings and spent mud. This generation of waste has
always been a major challenge towards ensuring a clean and safe environment. Also, it
gives rise to various drilling related problems such as reduction in filter cake quality
which increases the possibility of encountering unacceptable levels of torque and drag,
stuck pipe, sloughing, and problems related to increased surge and swab pressures.
Along with this, increase in drilled solids contents significantly reduce rates of penetration,
increasing drilling cost and the risk of wellbore instability which is caused due to prolonged
exposure of open hole intervals. Onshore and offshore operators thus uses variety of
methods to control these drilling wastes for avoiding various issues related to environment
as well as well health. This paper discusses the concepts related to managing the
drilling wastes that are generated and also provides an insight into the pro-active practices
for waste management and solid controls that are already implemented or should be
implemented in the industry for safer and sounder drilling operations.
Keywords: Drilling fluid, mud additives, waste management, minimization, recycle,
and treatment
INTRODUCTION
The drilling process in the oil and
gas industry introduce two primary
types of drilling wastes- the used
drilling fluids and the drill cuttings. Trisha Mishra
Furthermore these drilling fluids are School of Petroleum Technology
classified as Oil Based Muds (OBM) Pandit Deendayal Petroleum University, India
and Water Based Mud (WBM).
Also, it has been proven that introduce potentially toxic waste, behind produced water,
the adverse effects of drilled solids compounds into the fluids, which generated by the E&P industry [2].
upon the drilling operation become must be considered when the API estimated that in 1995 about
more serious as the particle size resulting wastes are managed. 150 million barrels of drilling waste
decreases. Hence, colloids, the The main pollution of spent muds was generated from onshore wells
finest solids, are the most are caused by: biocides, oil, in the United States alone [3]
damaging. And so are the ultrafine completion or stimulation fluid
drill cuttings. components, corrosion inhibitors, IMPACT OF THE DRILLING
Muds consist of a base fluid reservoir fluids (crude oil, brine), WASTES ON THE ENVIROMENT
and various solid and liquid and drilling mud chemical The physical and chemical
additives to allow for good drilling components [1]. Drilling wastes are properties of the drilling wastes
performance. Some of the additives the second largest volume of influence its hazardous

dewjournal.com Drilling
Table-1. Concentration of Various Metals in drilling wastes
Source: Directive: 050 of Alberta Energy Regulator
characteristics and environmental is its toxicity. Table-1 describes the the impact of drilling fluids and
impact ability [4]. The most common metal concentration of the various cuttings on the environment is
measure of the potential drilling wastes that are generated directly related to the amount of
environmental impact of a material during the drilling. The severity of material accumulating on the
substrate, which in turn is related to
the amount and physical
characteristics of the materials
being discharged, and to the
environmental conditions at the time
and site of discharge, such as
current speed and water depth. [5]
In high energy environments, little
mud and cuttings accumulate.
Whereas, in low energy and
depositional environments, more
material accumulates.[6] The toxicity
of these components is minimum
in the drilling fluids and the cuttings.
Hence the effect is generally due to
the chronic exposure (more than 3
months) rather than acute.
WASTE MANAGEMENT METHODS

There are various methods which
are used for the drilling waste
management. Fig 1 shows these
Source: Directive: 050 of Alberta Energy Regulator
Fig 1 Various Methods of one time disposal various methods that are most

often used for the waste removal equipment is also a very drilling reduces the volume of waste
management and solid control important aspect. It is necessary drilling fluid and the volume of drill
during drilling. All these methods to maintain the drilling fluid at cuttings. The total cost of a slim hole
described in the figure are onetime desired properties so as to avoid drilling operation is considerably
disposal method which are generation of unnecessary waste low than the conventional drilling as
directed by the Directive: 050 of streams. here not only the amount of drilling
Alberta Energy Regulator. [7] waste to manage is low but also,
WASTE MINIMIZATION the casing sizes required are small.
WASTE MANAGEMENT HIERARCHY One of the most important method
This hierarchy sets out the for the waste minimization is ii) Solids Control
preferred way/ sequence of the minimizing the potentially toxic An effective way to reduce the
waste management. The wastes that are being generated volume of drilling fluid waste is the
components of this hierarchy is a from the various operations. use of solids control [13]. When
shown in the figure 2. The thumb Synthetic based muds, non- used with appropriate chemical
rule of any waste management is aqueous based fluids, flocculants the need of dilution of
to reduce the source of waste development of various Water the fluids reduces. There are
hence, is most preferred option. Based Muds to replace the Oil various methods implemented for
Source reduction is any activity that Based Muds which contains low solid control. If complimented with
reduces or eliminates either the toxicity polymers and glycols.[11] the specific drilling operation. Very
generation of waste at the source effective waste minimization can
or the release of a contaminant WASTE MINIMIZATION VIA occur.
from a process. [8] The recycling of PROCESS MODIFICATION
the waste is the next most Another important method of waste iii) Mud System Monitoring
preferred. It is the reclamation of management is by the modification Diligent and comprehensive
the useful constituents of a waste of the conventional process of the monitoring of drilling fluid properties
for reuse, or the use or reuse of a waste management as well as is effective in reducing the frequency
waste as a substitute for a drilling. These methods are: of water and additive additions to
commercial feedstock or as a i) Slim Holes the system. Monitoring the system
feedstock in an industrial process. Slim hole drilling should be allow the operator to immediately
Hence, the reuse itself reduces the considered when planning a drilling identify unwanted changes in the
waste generated. [9] Disposal and project. The drilling industry has drilling fluid system and make the
treatment are the least preferred improved the technology of “slim necessary corrections. This
options for the waste management. hole” drilling over the past few years technique, in addition to the solids
Reduction and recycling [12]. If feasible and used, slim hole control for the drilling fluid system
together is called waste can significantly reduce
minimization. Hence, the costs of the drilling
waste minimization fluid system and the
along with disposal and volume of drilling waste
treatment is practiced remaining at the end of
in the industry for the drilling operation
effective waste [14].
management. [10]
Effective waste RECYCLING
management is an Recycling helps in
ongoing process that avoiding release of
keeps on upgrading large quantity of wastes
with time. Therefore, into the environment.
correct and upgraded Waste streams that are
use of the waste Fig 2 Waste Management Hierarchy high in hydrocarbons,

such as OBMs, are excellent [16]Annular injection involves sites can also help minimize
candidates for thermal treatment grinding all solid and liquid waste spillage of waste materials.
technologies, such as thermal into a slurry. This slurry is then Precautions should be taken to
desorption. Thermal treatment pumped down the annulus, between prevent disposal of chemicals,
uses high temperatures to reclaim two casing strings, into a refuse, debris, or other materials
or destroy hydrocarbon- subsurface fracture. In addition, the not intended for pit disposal. The
contaminated materials. This operator must have a contingency cuttings are covered in place using
process is an efficient treatment for disposal option in the event that all native soils, the surface is graded
destroying organics and reduces the fluid cannot be injected. If waste to prevent water accumulation, and
the volume and mobility of mud and cuttings are to be hauled the area is revegetated with native
inorganics, such as metals and to shore, the primary concerns will species to reduce the potential for
salts. Also, reconditioned drilling be the volume, storage and erosion and promote full recovery
mud could be reused for other transportation, and the liabilities of the area’s ecosystem.
wells. Waste mud from one well associated with different methods LAND FARMING: The exploration
can be used for plugging or of handling and land disposal. and production (E&P) industry has
spudding other wells. Used drilling used land farming to treat oily
mud can also be used to make Onshore Options petroleum industry wastes for
cement [15]. Used OBMs and SBMs BURIAL: Burial is the placement of years. Land farming is the
can be recycled where possible. waste in man-made or natural controlled and repeated application
excavations, such as pits or of wastes to the soil surface, using
TREATMENT AND DISPOSAL landfills. Burial is the most common microorganisms in the soil to
Treatment and disposal option onshore disposal technique used naturally biodegrade hydrocarbon
largely depends upon the type & for disposing of drilling wastes constituents, dilute and attenuate
quantity of wastes and the (mud and cuttings). Generally, the metals, and transform and
regulations & laws of the solids are buried in the same pit assimilate waste constituents.
government. Treatment is done for (the reserve pit) used for collection Land farming can be a relatively
reduction in amount of waste to be and temporary storage of the waste low-cost drilling waste
disposed and also to reduce the mud and cuttings after the liquid is management approach.
hazards related to the waste allowed to evaporate. Pit burial is a BIO REMEDIATION: Bioremediation
disposal. low-cost, low-tech method that (also known as biological treatment
The process can be offshore does not require wastes to be or bio-treatment) uses
as well as onshore. transported away from the well site, microorganisms (bacteria and
Offshore options and, therefore, is very attractive to fungi) to biologically degrade
Offshore operators have three basic many operators. hydrocarbon-contaminated waste
choices with regard to waste PITS: The use of earthen or lined into nontoxic residues. The
disposal - discharge, haul to shore, pits is integral to drilling waste objective of bio treatment is to
or grind and inject. If the operator management (Fig 3). The strategic accelerate the natural
discharges the waste, then pollution location of small pits near drilling decomposition process by
will play a role in mud system controlling oxygen, temperature,
design. Advances in minimizing the moisture, and nutrient parameters.
potential environmental impact of Bioremediation can create a drier,
drilling fluid discharges often more stable material for land filling,
results in the workers having fewer thereby reducing the potential to
exposures to potentially harmful generate leachate.
materials. If the operator decides to ANNULAR INJECTION: Annular
inject the waste, this must be taken injection has applications in
into account in the very early stages certain discharge environments.
of well planning in terms of tubular While offsite disposal and reserve
Source [4]
design and casing points. Fig 3 Pits for waste disposal pits can be eliminated with the use

of injection technology, concerns well but is time-consuming.[18] then either returnable or potentially
about groundwater contamination ASSOCIATED WASTES: Frequently disposable as non-hazardous. Bulk
have restricted or even prohibited overlooked and particularly packaging is gaining popularity
the use of this technology in some troublesome are some of the because it minimizes pollution by
areas. Again, preplanning is critical wastes associated with drilling fluid reducing the number of containers.
to the success of annular injection. systems. Specifically, these are [19]It also conserves raw materials
STABILIZATION: Stabilization can be residues associated with and can reduce the exposure of
used as an additional onsite equipment/processing and wash personnel to the product.
measure to minimize potential water. This is an area in which SLURRY INJECTION OF DRILLING
environmental impacts. By minimizing the volume of waste WASTES: Underground Injection of
incorporating potentially harmful generated can mitigate high Drilling Wastes Several different
substances like heavy metals into disposal costs and potentially high approaches are used for injecting
a chemically stable matrix, the rate future liability. Wash water should drilling wastes into underground
of toxicant leaching into the be reused where possible. Any formations for permanent disposal
environment is reduced to safe residues from mud cleaning (Fig 4). Salt caverns are described
levels. Improving the quality of equipment that can be placed in the in a separate fact sheet. This fact
materials used to stabilize the reserve pit lawfully should be placed sheet focuses on slurry injection
waste can enhance the there immediately instead of technology, which involves grinding
effectiveness of this technology returning them to the warehouse for or processing solids into small
significantly. This technology is clean-out. Many drums and pails particles, mixing them with water or
most effective in stabilizing heavy can be triple rinsed, with the wash some other liquid to make a slurry,
metals, and can be applied to fluids water going into the mud system. and injecting the slurry into an
containing modest levels of Such cleaned, empty containers are underground formation at
hydrocarbons and/or pressures high enough
salt.[17] to fracture the rock. The
I N C I N E R AT I O N : process referred to here
Incineration destroys as slurry injection has
organic material at been given other
high temperatures. designations by different
However, this produces authors, including slurry
air pollution, high fracture injection (this
temperatures and descriptive term is
pressures, and copyrighted by a
possible mechanical company that provides
failures of the slurry injection services),
incinerator. High energy fracture slurry injection,
consumption also is a drilled cuttings injection,
major concern. cuttings reinjection, and
BACTERIAL DE- grind and inject. [20]
GRADATION: Bacterial
degradation has been WASTE MANAGEMENT
used for many years. STRATEGIES
Recently, producers For successful
have begun using implementation of the
freeze dried bacteria waste management
and nutrient packages strategies requires the
to speed up the proper communication
degradation of oil in and knowledge of the
Source [4]
pits. This method works Fig 4 Various Methods Waste Disposal through Injection specific generation of

Table-2. Different Waste Management Approaches
I. Waste Minimization Approaches II. Recycle or Reuse Approaches III. Disposal Approaches
Synthetic-based and oil-based muds generate Road spreading when roads benefit from Land spreading or land farming
less cuttings than water-based muds application of waste
Coiled tubing drilling Reuse synthetic-based and oil-based muds Road spreading
Directional/horizontal drilling Use cleaned cuttings for fill or cover material Burial in onsite pit or offsite landfill
Use of less toxic components & additives for muds Restoration of wetlands with clean cuttings Discharge to ocean
Air drilling Use cuttings as aggregate for concrete or bricks Salt cavern disposal
Thermal treatment with fluid recovery Underground injection
Thermal treatment
Biotreatment (e.g. composting, verminculture)
Source: [21].
waste and well properties must be constituted of water (70 to 90% as requirements and various
adequately known. These strategies an average) the remaining parts practices to get rid of drilling
has been discussed in Table-2. being bentonite and drilled cuttings, wastes. These practices include
A general analysis had been the most important is to separate onsite burial, land farming,
discussed in recommendations of the liquid and the solid phase. thermal treatment, slurry
the French Society Trenchless injection and bioremediation.
Technology, 2003 and by Pantet et CONCLUSIONS
al. 2000. The following conclusions can be REFERENCES
The waste management drawn: [1] S. Patin, “Environmental
depends on 3 main criteria: 1. That oil and gas well drilling Impact of the Offshore Oil and
Site: Geological and geotechnical activities generate large volume Gas Industry,” Eco Monitor
conditions, and also the of drilling cuttings and spent Publishing East Northport, NY
environmental state of the site as mud. 11731, USA, Pp. 425. 2004.
known or unknown, polluted or non- 2. That environmental impact of oil [2] R. C. Haut, J. D. Rogers, B. W.
polluted site. and gas well drilling can be McDole, D. Burnett, and O.
Project: Geometry and classified into descriptive types Olatubi, “Minimizing Waste
consequently volume of spoil to such as acute, sub-acute, sub- during Drilling Operations,” in
treat, implementation of the site chronic and chronic. Proc.2007 AADE National
(urban, industrial area, countryside) 3. That most concentrations of oil Technical Conference and
Type of drilling fluid used: and gas well drilling wastes Exhibition, Texas, April 10-
Bentonite mud, Bentonite/Polymer encountered during drilling 12,2007.
mud, or pure Polymer mud.[21] activities are relatively low and [3] J. A. Veil, “Drilling Waste
Each project is unique and impacts are generally noticed Management: Past, Present
waste management must be after chronic exposure. and Future” Journal of
analysed according to predefined 4. That the preferred sequence of Petroleum Tech., Nov,
criteria. Methodology or guidelines drilling waste management 2002.pp.50-52.
can be established. In order to limit option should be source [4] H. R. Mosley, “Summary of API
the consumption of mud additives reduction, waste recycling or Onshore Drilling Mud and
and waste volume, it is necessary reuse, waste treatment and Produced Water Environmental
to recycle the drilling mud. The waste disposal Studies,” in Proc. Society of
recycled drilling mud is pumped 5. That waste minimization Petroleum Engineers IADC/
through vibrating screens, techniques via process SPE. Drilling Conference, New
desanding and desilting modification include slim hole Orleans, LA., Feb,1983.Pp.20-23
hydrocyclones before return to the drilling, solids control and mud [5] American Petroleum Institute,
mixing/succion tank. But in all system monitoring. “Summary and Analysis of API
cases, at the end of the project, a 6. That treatment and disposal of Onshore Drilling Mud and
remaining volume of drilling mud oil and gas drilling waste Produced Water Environmental
has to be eliminated from the site. depend largely on waste Studies,” API Bulletin D19,
As drilling muds are essentially characteristics and regulatory Washington DC, Nov.,1983.

[6] H. Bashat, “Managing Waste in Society of Petroleum Engineers

Exploration and Production 19957. Feb.27,1990.
Activities of the Petroleum [15] J. C. Reis, “Environmental
Industry,” Environmental Control in Petroleum
Advisor, SENV,2002. Engineering” Gulf publishing
[7] J. C. Reis, “Environmental company, Houston, Texas,
Control in Petroleum 1996. pp.93
Engineering,” Gulf publishing [16] T. E. Sample, “Drill Cuttings
company, Texas. Pp.73.1996. Disposal System with Good
[8] G. M. Deeley, “Use of MINTEQ Environmental and Ecological
for Predicting Aqueous Phase Properties,” U.S. Patent
Trace Metal Concentrations in 4,208,285, June 17,1980.
Waste Drilling Fluids,” In Proc. [17] K. S. Szymocha and B. E.
U.S. Environmental Protection McIntyre, “Thermal Process for
Agency`s First International Treating Hydrocarbon
Symposium on Oil and Gas Contaminated Drill Cuttings,”
Exploration and Production U.S. Patent 6,695,077,
Waste Management Practices, February 24,2004.
New Orleans, L.A., Sept.,10- [18] J.Reddoch, “Centrifugal Drill
13,1990. pp.1013-1023 Cuttings Drying Apparatus,”
[9] Department of Petroleum U.S. Patent 6,763,605, July
Resources (DPR), 20,2004.
Requirements for Discharge of [19] M. Norman, S. Ross, G.
Drilling Mud and Cuttings: McEwen, and J. Getliff,
2003 DPR report. “Minimizing Environmental
[10] R. Bland, “Water-based Glycol Impacts and Maximizing Hole
Systems Acceptable Substitute Stability – the Significance of
for Oil-based Muds,” Oil and Drilling with Synthetic Fluids in
Gas Journal, June 29, 1992. New Zealand,” in Proc. New
pp.54-59 Zealand Petroleum
[11] N. E. Thurber, “Waste Conference, February 24-
Minimization for Land-based 27,2002.
Drilling Operation”, J. Pet [20] J.Getliff, G.McEwen, S.Ross,
Tech., May, 1992. pp.542-547 R.Richards, and M.Norman,
[12] S.H.Walker, “An Innovative “Drilling Fluid Design and the
Approach to Exploration and Use of Vermiculture for the
Exploration Drilling: The Slim- Remediation of Drilling
Hole High-Speed Drilling Cuttings” in Proc. American
System,” Society of Petroleum Association of Drilling
Engineers-19525.June 18,1990 Engineers 2002 Technology
[13] T.Geehan, “Control of Conference, Houston TX April
Chemical Usage in Drilling 2-3,2002.
Fluid Formulations to Minimize [21] J. A. Veil and M. B. Dusseault ,
Discharge to the Environment,” “Evaluation of Slurry Injection
Society of Petroleum Engineers Technology for Management of
23374. November 10,1991 Drilling Wastes” U.S.
[14] Dearing, H.L., “Material Balance Department of Energy National
Concepts Aid in Solids Control Petroleum Technology, May
and Mud System Evaluation,” 2003. dewjournal.com

dewjournal.com Oil & Gas
‘Greening’ the oil sands ? Challenging

the myths and confronting the realities
The dirty unconventional resources of energy
Oil is the blood for all the modern industries which has all the essential constituents to
power the industrial equipment’s. Oil comes under the category of Conventional energy
resources with other partners like coal and natural gas. But, all these resources are
like a burning candle which will definitely exhaust one day. According to statistics oil will
last for 53.3 years unless some cutting edge discoveries come up. So what’s in the bag
for future generations?
The alternate to it are broadly Renewables and Unconventional energy resources.
Renewables don’t need description but what about unconventional? Unconventional
resources are those extracted using techniques different from conventional methods
that include shale, oil sands, CBM etc. The world’s largest oil sands are in Venezuela
and Canada. The Alberta government estimates around 200 billion barrels of recoverable
oil reserves while Venezuela estimates 267 billion barrels. Although Orinoco oil sands
are easier to produce than Canada’s reserves of bitumen, Venezuela’s oil production
has been declining because of the country’s political and economic problems, while
Canada’s has been increasing.
Instead of beating around the bush, the paper will be focused directly on oil sands.
It will cover basic aspects of oil sands like its constituents, basic definition, method of
extraction, transportation, usage etc. The biggest hurdle in developing oil sands is the
highly polarized views being presented by different stakeholders, environmentalists
etc. about the merits of its development in relation to environmental and other health
impacts. The paper will cover a case study discussing innovative technologies developed
under COSIA to get through this hurdle. As the industry is blooming, a lot of positive
results were seen in various sectors like capital Investments, employment opportunities,
economic development, community development, R&D etc. It would include proven
figures pertaining to all above stated sectors.
“Don’t put all your eggs in one basket”. Be diversified. Innovation is the golden key
to success in developing any unconventional energy resources especially oil sands.
But is innovation the only game changer? What if it’s not economically feasible? Will it
have a significant impact on conventional energy resources? Dig deep to know more.
WHAT IS OIL SAND?

Oil sand is a naturally occurring
mixture of sand, clay or other
minerals, water and bitumen,
which is a heavy and extremely
viscous oil that must be treated
before it can be used by refineries
Anish Agarwal Putta RaviChandra Arpit Mohapatra to produce usable fuels such as
Maharashtra Institute of Technology (MIT), Pune, INDIA gasoline and diesel. Bitumen is so

Oil & Gas dewjournal.com
viscous that at room significantly higher

temperature it acts temperature. Therefore
much like cold they are easier to extract
molasses. New by conventional
technologies are techniques. However
increasing the they are still too heavy
treatment methods to transport by pipelines
available to oil sands or by process in normal
producers as more refineries.
research is completed Unlike Canada,
Historically, oil sand Venezuela has access
was incorrectly referred to capital and
to as tar sand due to technology process; if
the now outdated and Source: oilsandstoday.ca has not been able to
largely ineffective practice of using extra heavy oil are closely related optimise the design and
it for roofing and paving tar (oil sand types of petroleum, differing from construction of bitumen upgrades
will not harden suitably for these each other by which they have been and heavy oil refineries. In
purposes). Though they appear to degraded from the original crude oil addition Venezuelan product has
be visibly similar, tar and oil sands by bacteria and erosion) the high sulphur content and
are different. Venezuelan deposits are less particulate emission making it
• Oil sand is a naturally occurring degraded than the Canadian difficult to meet international
petrochemical that can be deposits and due to their more environmental regulations
upgraded into crude oil and other equatorial location, are at a
petroleum products. Canada
• Tar is synthetically Canada’s oil sands are
produced from coal, found in three deposits
wood, petroleum or the Athabasca, Peace
peat through River and Cold lake
destructive distillation, areas in Alberta and
it is generally used to part of Saskatchewan.
seal against The greatest quantity I
moisture. found in the Athabasca
deposit. Near Fort
Source: oilsandstoday.ca
LOCATION McMurray, the oil sands
Oil sand can be found are closer to the
in several locations surfacethan in other
around the globe, regions.
including Venezuela, Athabasca deposit in
the US and Russia, but Canada is the largest,
the Processes. Canada most developed and
has the third largest oil utilizes the most
reserves in the world; technologically
97% of those reserves advanced production.
are in oil sands. The math: of the 173
billion barrels of
Venezuela Canadian oil that can be
The deposits are not recovered economically
bitumen but extra heavy with today’s technology,
oil (natural bitumen and Source: oilsandstoday.ca 167 billion barrels are

located in the oil sands. (sometimes more than

20) from a single
RECOVERING OIL location, further
Oil sands are reducing surface
recovered using two disturbance. The
main methods: open- majority of in situ
pit mining and in situ operations use steam-
drilling. The method assisted gravity
depends on how deep drainage, or SAGD.
the reserves are This method involves
deposited. In Alberta, pumping steam
97% of the total surface Source: oilsandstoday.ca underground through a
area of the oil sands region could ponds are no longer required, the horizontal well to liquefy the bitumen,
be developed in situ. As of January land will be reclaimed. which is then pumped to the surface
2014, there were 100 over active through a second recovery well. In
oil sands projects in Alberta. In Situ Drilling Alberta, 80 per cent (135 billion
Currently there are only four The majority of the oil sands lie barrels) of the oil sands are buried
operational mining projects and more than 70 metres (200 feet) too deep below the surface for open
one under construction. below the ground, and are too deep pit mining and can only be
to be mined. These reserves can accessed through in-situ methods
Open Pit mining be recovered in situ (in place) by such as Steam Assisted Gravity
Approximately 20% of the oil sands drilling wells. In situ drilling Drainage (SAGD). With the SAGD
lie close enough to the earth’s accounts for 80% of oil sands technique, a pair of horizontal wells,
surface to be mined, which reserves and these reserves are situated 4 to 6 metres above the
impacts 3% of the surface area of located below 97% of the land in other, is drilled from a central well
the oil sands region. the oil sands sector. Drilling pad. In a plant nearby, water is
Open-pit mining is similar to methods disturb a small amount of transformed into steam which then
many coal-mining operations. land and do not require tailings travels through above-ground
Large shovels scoop the oil sands ponds. Advanced technology is pipelines to the wells and enters the
into Trucks, which take it to used to inject steam, combustion ground via a steam injection (top)
crushers, where the large clumps or other sources of heat into the well. The steam heats the heavy oil
of clay are broken down. The oil reservoir. The heat warms the to a temperature at which it can flow
sands is then mixed with water and bitumen so it can be pumped to the by gravity into the producing (bottom)
transported by pipeline to a plant, surface through recovery wells. well. The steam injection and oil
where the bitumen is separated Advances in technology, such as production happen continuously and
from the other components. directional drilling, enable in situ simultaneously. The resulting oil
Tailings ponds are an operating operations to drill multiple wells and condensed steam emulsion is
facility common to all then piped from the
types of surface producing well to the
mining. In the oil sands, plant, where it is
tailings consisting of separated and treated.
water, sand, clay and The water is recycled
residual oil are for generating new
pumped to these steam.
basins – or ponds –
where settling occurs Cyclic steam
and water is recycled stimulation
for reuse in the The use of steam
process. When the Source: oilsandstoday.ca injection to recover

heavy oil has been in eyeglasses, CDs and

use in the oil fields of DVDs, tires, ammonia,
California since the and heart valves are
1950s. The cyclic derived from feed
steam stimulation stocks from crude oil.
(CSS) “huff-and-puff”
method is now widely ENVIRONMENTAL
used in heavy oil EFFECTS AND
production world-wide REGULATIONS
due to its quick early Developing the oil
production rates; sands means
however recovery Source: oilsandstoday.ca balancing energy
factors are relatively low (10-40% it to stay warm, do our work and get demands with economic benefits
of oil in place) compared to SAGD from place to place. Crude oil and environmental impacts. The
(60-70% of OIP). derived from the oil sands is sent pace of investment and
CSS has been in use by to refineries across North America development in the oil sands has
Imperial Oil at Cold Lake since to make gasoline, diesel, aviation increased quickly over the past few
1985 and is also used by Canadian fuel and other consumer products years. As a result, more people than
Natural Resources at Primrose Gasoline:Gasoline is the fuel ever have taken an interest in the oil
and Wolf Lake and by Shell Canada designed for spark-ignition internal sands region and are concerned
at Peace River. In this method, the combustion engines. It is about the environmental impacts of
well is put through cycles of steam commonly used in automobiles. the projects currently operating, and
injection, soak, and oil production. Diesel: Diesel is a fuel designed those planned for the future.
First, steam is injected into a well for engines commonly used in
at a temperature of 300 to 340 trucks, buses, locomotives and Challenge
degrees Celsius for a period of farm and heavy equipment. It The nature of the oil sands makes
weeks to months; then, the well is contains more energy and power them energy-intensive to produce.
allowed to sit for days to weeks to density than gasoline. Energy is needed to transport the
allow heat to soak into the Aviation fuels: Aviation fuels are earth, to break it down into smaller
formation; and, later, the hot oil is specialized petroleum-based fuels pieces and to heat the water used
pumped out of the well for a period used to power various types of to separate the oil from the sand.
of weeks or months. Once the aircraft. Energy is also used in other
production rate falls off, the well is Products: Thousands of everyday processes, such as producing the
put through another cycle of products get their start from crude hydrogen needed to upgrade the
injection, soak and production. This oil. Raw materials used to create heavy crude. All these steps
process is repeated until the cost items including ink, crayons, produce greenhouse gas (GHG)
of injecting steam becomes higher dishwashing liquids, deodorant, emissions such as CO 2 -a
than the money made contributing factor to
from producing oil. climate change.
The challenge is
ENERGY USE to reduce greenhouse
Oil is an important part gas emissions while
of daily life in Canada, the demand for energy-
providing energy and the amount of
for transportation, energy the world is
residential and consuming-is growing.
industrial uses. Global demand for
Canadians consume a energy is expected to
lot of energy. We need Source: oilsandstoday.ca increase 40% by 2035,

according to the International the land to a sustainable landscape 3% of lowest weekly winter flow in
Energy Agency. (reclamation). A plan to reclaim the 2012 The government of Alberta
land must be developed and regulates the use of water. Large
Air approved by government as part of water users must apply to divert
GHG emissions are important in a any project’s approval process. fresh water from its original
global context. Other air emissions Alberta law requires all lands s o u r c e . The amount of water
associated with oil sands disturbed by oil sands operations allocated is based on sustain
development are important at the be reclaimed. Reclamation is an Alberta’s ground water and surface
local level. These emissions ongoing process during the life of a water. Canada’s oil sands industry
include nitrogen dioxide (NO 2 ), project. Companies apply for recycles water and continues to
sulphur dioxide (SO 2 ) and fine government reclamation look for ways to reduce fresh water
particulate matter (PM), which are certification when vegetation is use. Oil sands producers recycle
primarily created through fuel mature, the landscape is self- 80-95% of water used.
combustion in facilities and sustaining and the land can be
vehicles. The Government of Alberta returned to the Crown for public use. Tailing Ponds
implemented GHG regulations in After oil sands have been mined
2007 requiring a mandatory 12% Water oil is separated from sand and sent
reduction in GHG emissions T h e O i l s a n d i n d u s t r y r e q u i r e for further processing. “Tailings”
intensity for all large industrial techniques like Open pit mining are the leftover liquid mixtures of
sectors including existing oil sands and in situ drilling which are not mostly sand some water and clay
facilities, or a payment in lieu. possible to execute without use of and residual bitumen. Settling or
The Wood Buffalo water. Open pit mining require an tailings ponds are large engineered
Environmental Association (WBEA) average 3.1 barrels of fresh water dam and dyke system design to
monitors the air in the oil sands f o r e v e r y b a r r e l o f b i t u m e n contain and settled the water ,sand
region in and around Fort McMurray produce. Drilling in situ production ,fine clays, silts, residual bitumen
24 hours a day, 365 days a year. require an average 0.4 barrels of and other residual hydro
WBEA’s air quality monitoring fresh water for every barrel of carbons.Dyke water comes from
network is one of the most bitumen produce. The Athabasca dyke construction and surface water
extensive in North America. Data River is the main source of water run-off. For example ditches around
collected over the past 10 years at for oil sands mining project.70% tailings facilities capture the water
monitoring stations across Alberta of the fresh water used for oil that is pumped in to the tailings
indicate air quality is improving in sands mining was from Athabasca ponds. The Government of Alberta
some areas and remaining River (117 million m 3 ).this is 0.6% requires all oil sands operators to
consistent in others. of average annual river flow and have plans in place to convert fine
tailings to reclaimable
Land landscapes. Alberta
Oil sands operations, Environment and
especially open-pit Sustainable Resource
mines, disturb a large Development prohibits
area of land. Canada’s the release of any water
oil sands industry is that does not meet
committed to reducing water quality
its footprint, reclaiming requirements
all land affected by Source: oilsandstoday.ca
operations and WILD LIFE
maintaining biodiversity. Wildlife and biodiversity
The challenge and a are protected by
g o v e r n m e n t numerous laws and
requirement is to return Source: oilsandstoday.ca regulations and are

included in Transportation
environmental impact Bitumen and crude oil
assessments. Oil are transported three
sands development ways; pipeline, marine
plans must include transport and rail car.
steps to minimize the
effects of operations on Pipeline
wildlife and other Today Canada has
biodiversity. The limited pipeline
Government of Alberta infrastructure to move
monitors and verifies crude oil from Western
the effectiveness of Canada to Eastern
these plans. Canada, and the U.S.
A key source of Source: oilsandstoday.ca As a result of strong
data is the Alberta Biodiversity focused on accelerating the pace growth in U.S. and Canadian oil
Monitoring Institute (ABMI), a non- of improvement in environmental production, crude oil pipeline
profit organization comprising performance in Canada’s oil capacity is expected to become
government and industry, academic sands through collaborative action constrained in the next few years,
and environmental groups. To help and innovation. Through COSIA, requiring new pipelines and
achieve responsible environmental participating companies capture, pipeline expansions to provide
management in the oil sands develop and share the most access to new markets. A number
region, the ABMI collects data and innovative approaches and best of pipeline projects are being
reports on thousands of species, thinking to improve environmental proposed to connect the growing
habitats and human footprint performance in the oil sands, supply with growing markets in
activities at 1,656 sites across focusing on four Environmental India, China and Eastern Canada.
Alberta. Priority Areas (EPAs) — tailings,
Bitumen can be found on the water, land and greenhouse gases. Marine Transport
surface of most tailings ponds. This To date, COSIA member Large single-hulled crude oil
can pose a threat to waterfowl that companies have shared 560 tankers were prohibited in 2010 and
land on the pond. Several distinct technologies and can no longer operate in Canadian
mechanisms are in place to deter innovations that cost over $900 waters. Double hulled means the
birds from landing, including million to develop. Through this bottom and sides of a vessel have
cannons and radar/laser deterrent sharing of innovation and two complete layers of watertight
systems, like those used at airport. application of new technologies, hull surface. Oil tankers have been
Current evidence on water members can accelerate the pace moving safely and regularly along
quality impacts on the Athabasca of environmental performance Canada’s West coast since the
River system suggest that oil improvements. 1930s. Each year, approximately
sands development 580 million barrels of oil
activities are not a are safely transported
current threat to aquatic along Canada’s East
ecosystem viability. and West coasts via
tanker. At present, fewer
COSIA: (CANADA’S OIL than 500 oil tankers
SANDS INNOVATION transit along Canada’s
ALLIANCE) West coast each year.
Canada’s Oil Sands While most West coast
Innovation Alliance oil tankers are U.S.-
(COSIA) is an alliance bound, about 200 call
of oil sands producers Source: oilsandstoday.ca on Port Metro

Vancouver. There hasn’t been a receives about 94% of the economic stimulated by oil sands
tanker issue in the Port of Vancouver benefits from oil sands, the development through job creation
for 50 years. All oil tankers using economic impact across the rest of and economic activity.
Port Metro Vancouver are subject to Canada is significant. In 2013, over
the same international agreements, 2000 companies from across CASE STUDY
rules and strict national and port Canada had direct business (goods Aim: To ensure large number of
authority standards. and/or services) with the oil sands. species and vegetation for land
reclamation
Rail transport Local Benefits Challenge: Oil sands operations,
Today, rail moves about 280,000 Most of the oil sands are located in especially open-pit mines, disturb
barrels/day, almost 8% of Western the Athabasca area. Fort McMurray a large area of land.As bitumen
Canada’s oil production a is the largest community in the area extraction increases, including the
significant increase over past which also includes smaller and resulting expansion of support
years. Rail loading capacity in Aboriginal communities. The industries, natural areas for seed
Western Canada is forecast to be Regional Municipality of Wood harvest are diminishing.The
about 965,000 barrels/day by year Buffalo (including Fort McMurray) is challenge – and a government
end. Canadian crude oil producers one of the fastest growing requirement – is to return the land
support rail safety measures and communities in North America with to a sustainable landscape
will continue to work with service average annual population growth (reclamation). A plan to reclaim the
providers and Transport Canada to of approx. 7.1% from 2000-2012. land must be developed and
ensure the safe delivery of product. approved by government as part of
Aboriginal Communities any project’s approval process.
Economy: How Do Oil Sands Alberta’s Aboriginal population is How: The Alberta government has
contribute? young, growing and several been collecting and storing seeds
Canada’s oil sands industry communities are located close to for decades, as have agencies
provides economic benefits to oil sands developments in remote around the world. Most seed banks
Canada and across North America. regions of the province. focus on commercially important
New oil sands development is Solid relationships with species such as trees, or
expected to contribute over $3.8 Aboriginal communities have agriculture crops. The OSVC has
trillion dollars to the Canadian created mutually beneficial collected significant quantities of
economy over the next 25 years employment and business seed since 2009, representing over
about $155 billion per year. The oil opportunities. In 2011 and 2012, oil 30 boreal species, many of which
sands industry will pay an sands companies contributed more would not normally be considered
estimated $1.5 trillion in provincial than $20 million to aboriginal commercial but are important for
($302 billion) and federal ($574 communities in the Wood Buffalo ecological diversity. Under COSIA,
billion) taxes and provincial royalties and Lac La Biche regions for school this project is expected to expand
($590 billion) over the next 25 years. and youth programs, celebrations, regionally to include the Southern
In addition to paying significant cultural events, literacy projects and Athabasca Oil Sands and Cold
royalties and taxes, the oil sands other community programs. Over the Lake areas. COSIA companies work
industry is a major employer and past 14 years, Aboriginal with the Alberta Tree Improvement
creates jobs throughout North companies have earned over $8 and Seed Centre in Smoky Lake,
America. Direct employment in billion in revenue through working which provides seed storage at a
Canada as a result of new oil sands relationships with the oil sands stable -18 C in an underground
investments is expected to grow industry. bunker. All seeds are harvested,
from 149,000 jobs in 2014 to The oil sands has significant extracted, registered and then
225,000 jobs in 2038. When economic impact outside Alberta — banked in a coordinated effort
including indirect jobs, employment in the rest of Canada, the U.S. and using the Forest Genetic Resource
numbers more than double across around the world. Almost every Management Standard.
Canada in both years. While Alberta region in Canada has been Result: This way genetic variety

from the entire region can names will probably disappear. And
contribute to intraspecific genetic we may see some new nameplates
variation. The greater the numbers in town.” “If you are going to choose
of species and variations within where you are going to have
these species, the greater the responsible development of oil,
resiliency of the planted vegetation. this is one of the places you go to.”
PRESENT REFERENCES
Production growth from the oil Oil Sands Today - Oil Sands Today.
sands is expected to continue, 2015. Oil Sands Today - Oil
albeit at a slower pace, for the next Sands Today. [ONLINE]
four years, or until the end of the Available at: http://
decade. We can see at least that www.oilsandstoday.ca/Pages/
far ahead. “Overall, we expect that default.aspx. [Accessed 22
production will grow from 2.1 October 2015].
million barrels a day today, to 2.75 The oil price crash and the oil
million barrels a day by 2020,” the sands - Macleans.ca.
firm predicted. It was supposed to 2015. The oil price crash and
be 3.3 million barrels a day by 2020. the oil sands - Macleans.ca.
The forecast before oil prices [ONLINE] Available at:http://
crashed a year ago. And it’s a long www.macleans.ca/economy/
way away from a longer-term target economicanalysis/the-oil-
of five or six million barrels a day price-crash-and-the-oil-sands/
industry was aiming to produce. . [Accessed 22 October 2015],
Oil sands at a crossroads: How the
CONCLUSION next chapter of Alberta’s oil
The world’s third-largest future — and Canada’s
accumulation of oil and for the past workhorse — is a big unknown
decade the stalwart of the energy | Financial Post. 2015. Oil
sector and of Canada’s economy. sands at a crossroads: How
And what it means for a province the next chapter of Alberta’s oil
that was once promised it had a fut.re — and Canada’s
future of virtually unlimited wealth workhorse — is a big unknown
and security just waiting to be dug | Financial Post. [ONLINE]
and steamed out of the northern Available at: http://
earth. business.financialpost.com/
The consensus today is that news/energy/oilsands-at-a-
the industry is suddenly at an crossroad-how-the-next-
unexpected crossroads, that its chapter-of-albertas-oil-future-
meltdown over the past 10 months and-canadas-workhorse-is-a-
is leading to long-term changes, big-unknown. [Accessed 22
and that the next chapter of Alberta‘s October 2015].
oil future is a big unknown. Canada’s Oil Sands Innovation
“A crossroad doesn’t mean a Alliance - COSIA.
dead end. It means you have to 2015. Canada’s Oil Sands
choose which way to turn. Different Innovation Alliance - COSIA.
companies will choose different [ONLINE] Available at: http://
paths. Some companies will www.cosia.ca/. [Accessed 22
emerge stronger. Some familiar October 2015]. dewjournal.com

dewjournal.com Unconventional Energy
Management of produced water from Coal

Bed Methane (CBM) projects: A water
treatment method focused on heating
The idea aims at bridging the gap between Exploration companies and the production
of Coal Bed Methane by providing a solution that is simple, highly cost effective and that
can be set up in the country with minimal efforts; for the treatment of produced water
during the extraction of Coal Bed Methane. The economics of the method, and the
method itself, has been compared to the current solutions of water treatment.
In this paper, we speak about the purification of water by heating it in different
stages using panels of Fresnel Lenses. The purified steam collected is utilized in
various industries.
A brief comparison between the Fresnel Lens water-treatment model and the
common methods employed for disposal or treatment of the produced water is given.
One field case study of water treatment in the Powder River Basin being major CBM
Water-Producing fields in the world, is presented. Significant outcomes emphasize on
the use of water in different industrial processes and giving it a final commercial value,
rather than re-injecting it back into the formation or its untreated discharge into water
bodies. Treatment of the water is important, as re-injection or untreated disposal causes
contamination of surface and sub-surface water bodies.
The novelty of the model is, the added commercial value to the produced water
and he ability to treat it using easily available and cost effective equipment and setups.
Keywords: CBM, water disposal, water treatment, Fresnel lens, commercial value.
produced water and flow back

water, in part because this sector
had great potential for business
growth. Treatment performance
has increased and costs have
become more competitive.
The presented method
Udai Jain Shashank Kumar focuses on water, prior to utilization,
Department of Petroleum and Earth Sciences being purified by its conversion into
University of Petroleum and Energy Studies (UPES), India steam. At various heating stages,
the water is stored in different
I n most Coal Bed Methane (CBM)

projects, the produced water is
by far the largest byproduct stream
components of produced water to
allow discharge, injection, or
beneficial reuse.
tanks. The dynamics of the water,
according to the desired end
process, at each stage is
and has given rise to numerous Many companies have controlled by raising the
technologies that treat different developed technologies to treat temperature of the water using

Unconventional Energy dewjournal.com
Fig.1 Powder River Basin, Growth of CBM Fig.2 Powder River Basin, Growth in CBM Water
panels of Fresnel Lenses. feet a day (MMcfd) up from 111 • Water production per CBM well
Provided in the paper is a detailed MMcfd just three years (at the end of 2001) is 177
phase-wise layout acknowledging earlier”.(Artus, 2014; Onda, et al., barrels per day down from 396
the transfer of water, change in 2013) (Figure 1) barrels per day two years ago
energy at different stages and end Along with the growth in CBM (Figure 4).
processes; such as electricity production has been the growth in For the most part, produced
generation, obtaining drinking produced water, as part of CBM water waters are either
water, water for irrigation and dewatering and depressing the surface discharged or placed into
production of hydrogen gas and coal formations thus enabling the impoundments providing
oxygen. coals to release their absorbed beneficial use for agriculture, stock
methane. As of the end of 2001, watering and grasslands. Should
Water Production and its Current water production was at 1,444,000 beneficial use of produced CBM
Treatment in Powder River Basin barrels per day up from 229,000 water be a constraint, other (more
“The Powder River Basin of barrels per day at the end of 1998 costly) option would need to be
Wyoming and Montana is the site (Figure 2). considered impacting the
of fastest growing domestic natural Progressive CBM development economics and natural gas
gas play – the development of Coal and dewatering, while increasing resource developer in the basin.
Bed Methane (CBM) from the total water production, is leading These options include:
Wyodak and Big George fairways. to lower water to gas ratios and • Shallow re-injection: To conserve
According to figures of 2001: lower average water production per the water for future use.
• Nearly 12,000 CBM wells have well: • Pre-treatment of water with
been drilled with 8,177 wells • The water to gas production ratio chemicals and reverse osmosis,
producing. (at end of 2001) is 1.75 barrels with deep disposal of residual
• Coal Bed Methane (CBM) per Mcf, down from 2.88 barrels concentrate.
production is at 823 million cubic per Mcf two years ago (Figure 3). • Deep re-injection into non-
Fig.3 CBM Water/Gas Production Ratio Fig.4 CBM Water Production Per Well

Table-1. Summary of Impacts from Using Current Water Disposal Methods Fresnel lens, while physically
narrow in profile, is capable of
focusing light similar to a
conventional optical lens but has
several advantages over its thicker
counterpart.
The most important application
of using a Fresnel lens in this
project is that high temperatures
(nearly 3800°F) can be obtained
portable water disposal aquifers. replaces the curved surface of a using this lens. The largest Fresnel
Table 1 provides a summary of conventional optical lens with a lens concentrating solar power
the potential losses that would series of concentric grooves. plant was opened in 2012. The 30
occur when the above mentioned These contours act as individual MW plant near Alamosa, Colorado
methods are in practice. refracting surfaces, bending uses 504 tracking panels, each with
Demerits encountered while parallel light ray to a common focal a 60 kW capacity (Rickman, M. J.,
proceeding with current water length (Figure 5). As a result, a Erik., 2000).
disposal methods: The Fresnel lenses
• Contamination of concentrate solar energy
nearby surface and about 500 times onto
sub-surface aquifers multi-junction solar cells.
• Process are costly and From this we get an idea
time consuming about the heating
• Requires a large potential of a Fresnel
amount of energy Lens.
The presented
Fresnel Lens method alongside
Fresnel Lenses consist of focuses on water, prior to
a series of concentric utilization, being purified
grooved etched into by its conversion into
plastic. Their thin, light steam. At various heating
weight construction, stages, the water is stored
availability in small as well in different tanks. The
as large sizes, and dynamics of the water,
excellent light gathering according to the desired
ability make them useful end process, at each
in a variety of applications. stage is controlled by the
Fresnel lenses are raising temperature of the
most often used in light water using panels of
gathering applications, Fresnel Lenses. Provided
such as condenser in the paper is a detailed
systems or emitter/ phase-wise layout
detector setups. They can acknowledging the
also be used as transfer of water, change
magnifiers or projection in energy at different
lenses in illumination stages and end
systems, and image processes; such as
formulation. electricity generation,
A Fresnel lens Fig.5 Schematic Diagram of Fresnel Lens obtaining drinking water,

Unconventional Energy dewjournal.com
water for irrigation and production • The temperature is raised upto an electrolysis chamber via
of hydrogen gas and oxygen. 150°C inside the primary heating high quality alloy pipes.
The setup comprises of four chamber, which results in the - The high temperature steam
heating chambers, each chamber formation of steam, leaving at the will then be electrolyzed to
deferring from the other in terms of bottom of the tank the dissolved produce Hydrogen and
temperature and holding capacity. impurities. Oxygen. Hydrogen is a clean
The water path is as follows: • Further, using steel pipes the and high calorific value fuel.
• Water from the producing wells steam flow from the primary Oxygen is very valuable in the
is initially stored at room heating chamber is divided into medical industry.
temperature in a tank. two parts, namely: Pipe 1 & Pipe PIPE 2:
• After being stored, water is two, each of which carries the - This pipe carries a part of the
transferred to a primary heating steam for a particular end steam (at 150°C) to another
chamber made of stainless process. secondary heating chamber.
steel. PIPE 1: Here it experiences a further
• Once the water is stored in the - This pipe carries the steam to raise in temperature upto
primary heating chamber, panels a secondary heating chamber 300°C.
of Fresnel Lens are adjusted in where the temperature is • The steam from this point forth
accordance with the solar rays further raised to 1500°C using is divided into two streams. One
falling on it, such that they are Fresnel lenses. The highly is transferred to a condenser (via
focused on the tank. purified steam is transferred to Pipe 3) and the other to a pipe,
Planned Water Treatment Setup
Suggested Water Treatment Setup

containing a pressure valve that Hence, the technology

opens as soon as the pressure suggested for management and
reaches 20 atm, which rotates a utilization of water produced in
turbine and thus generating CBM operations will not only have
electricity. a better TDS range flexibility but will
• Steam transferred to the also prove out to be cheaper and
condenser is condensed into more environment friendly than the
water. existing techniques.
- The water is sent to The suggested method will
agricultural field for irrigation also overcome most of the
purposes limitations of other water
- Water is further transported to management methods as
a mineral water plant where mentioned in the paper.
natural minerals are added to Management by this method proves
the water to make it drinkable. to be socially beneficial.
Conclusion Acknowledgements
A commercial value has been The authors would firstly like to
attained from the by product extend a word of thanks to “SPE
(produced water) at every stage of Student Chapter Pandit Deendayal
purification. They are as follows: Petroleum Universty” for giving us
• Production of hydrogen and the opportunity to present our
oxygen gas, two products which paper.
can be commercialized by its In addition, we would want to
distribution to various industries. thank “University of Petroleum and
• Generation of electricity (upto 20 Energy Studies”, our professors
MW) by the running of turbines and peers for their constant
using the steam (at 300°C). support and guidance.
• As per the local requirements of
farmers for irrigation water, References
steam can be treated accordingly 1. U.S Department of Energy,
by various ongoing methods of Office of Fossil Energy and
purification (as discussed National Energy Technology
previously) and hence help the Laboratory, Strategic Center for
local community gain some Natural Gas: “Powder River
benefit of the water. This would Basin Coalbed Methane
not only be a good gesture on Development and Produced
behalf of the oil and gas Water Management Study”
producing company, but would D O E / N E T L - 2 0 0 3 / 11 8 4 ,
also help the company earn a November, 2002.
good reputation amongst society. 2. Rickman, M. J., Erik: “Coal Bed
And in other words, the company Methane Production: Water
gains a positive publicity in the Management”, 2000.
society. 3. Artus,2014; Onda, et al.,2013:
• Finally, the water, being purified, “Environment Hazards
is sold to mineral water Associated with Coal Bed
companies who finally Methane (CBM) Production”,
mineralize and sell it. October 2014. dewjournal.com
Remaining papers of Category 2-5 will be published in the March and April 2016 issues.

dewjournal.com

Green
“As per Auto
Fuel Vision and
Initiatives
Policy 2025 BS-
IV auto fuel will
A report by DEW
be extended in
Correspondent entire country by
April 1, 2017
in phases”
The Minister of State for Petroleum and Natural Gas (I/C), Mr. Dharmendra Pradhan
I n a bid to set an ambitious and

comprehensive strategy to
combat climate change the Ministry
of Petroleum & Natural Gas,
Government of India has launched
many Green Initiatives in the recent
past, besides India unveiling
global solar alliance of 120
countries at the recently concluded
COP21 in Paris.
The green initiatives have
primarily been in the direction of
implementing BS-IV auto fuel from
the present 50 cities to all across
the country in a phased manner.
The Minister of State for Petroleum and Natural Gas (Independent Charge), Mr. Dharmendra
Bio fuel policy is high on the Pradhan delivering the inaugural address at the National Seminar on “Bio Fuel Programme in
government agenda along with India-The Way Forward”, in New Delhi
developing city gas distribution and

piped natural gas network.
Harnessing hydrocarbon
resources tapped in shale layers
has also been identified as a
priority.
Increasing use of natural gas,
“Government has
placed CNG
(transport) along
with PNG (Domestic)
on top priority
in domestic gas The Minister of State for Petroleum and Natural Gas (Independent Charge), Mr. Dharmendra
Pradhan launching the “Bio Fuel Blended Diesel” (B-V Diesel), on the occasion of the “World Bio
allocation” Fuel Day”, in New Delhi.

a 40% less CO2 pollutant is (Mumbai, Thane and Pune

hence encouraged. Districts) will be covered.
Needless to say the process Part of Gujarat (Surat,
of solarisation i.e. powering Valsad, Dangs and Tapi
by solar energy is actively districts) will also be
being pursued. A look at the covered. From April 1, 2017
many programs of the rest of the cities will
Ministry of Petroleum & be covered, petroleum
Natural Gas assures that ministry sources mentioned.
concrete steps are being
taken towards the green Bio- Fuel Policy
initiatives for a cleaner The Minister of State
tomorrow. (Independent Charge) for
Petroleum and Natural Gas,
Auto Fuel Policy Mr. Dharmendra Pradhan
BS-IV auto fuel was has expressed the
introduced in 13 cities on Government’s commitment
April 1, 2010 and is now for time bound execution of
extended to 50 more cities, initiatives to introduce
with emphasize on most Ethanol blended Petrol and
polluted cities, subject to Bio diesel in the country. He
availability of fuel and
“As a result of various said that Oil Marketing
logistics constraints. It has corrective measures, gas companies have already
also been decided that this flaring has considerably come invited bids for 120 crore litre
will be extended in entire of Ethanol for blending in
country by April 1, 2017 in
down minimizing its wastage” petrol for the year 2015-16
phases, according to the which would be 5% (approx)
Ministry of Petroleum & of the country’s total petrol
Natural Gas, Government of consumption.
India. Listing out the benefits
As per Auto Fuel Vision of using Ethanol blended
and Policy 2025 with effect petrol, Mr. Pradhan said that
from 1st April, 2015, the it will not only help in value
whole of Northern India addition for the farmer’s
covering Jammu & Kashmir, produce but will also reduce
(except Leh/Kargil), Punjab, foreign exchange
Haryana, Himachal expenditure. He said that
Pradesh, Uttrakhand, Delhi added benefits of blended
and the bordering districts petrol would be in the form
and parts of Rajasthan and of employment generation,
Western UP have been entrepreneurship promotion
covered. From April 1, 2016, and environment protection.
all of Goa, Kerala, He said that Ethanol blended
Karnataka, Telengana, petrol was introduced in
Odisha and the UTs of 2003 but the process got
Daman & Diu, Dadra Nagar impetus only in 2014-15
Haveli and Andaman & when new government took
Nocobar will be covered. policy decisions to
Research laboratory for bio fuel research at Indian Institute of
Part of Maharashtra Petroleum, Dehradun incentivize petrol blending.

Specific measures are Mr. Pradhan said that there is authorized by Ministry of Petroleum
a demand for Ethanol for blending & Natural Gas.
being taken by with petrol but there are
refineries to mitigate technological and financial CNG
pollution and minimize challenges which needs to be With the establisment of Petroleum
overcome. The Petroleum Minister & Natural Gas Regulatory Board
impact on the called upon various departments (PNGRB) under the PNGRB Act
surrounding of Government, State Governments, 2006 by Government of India
environment such as Academic and Research PNGRB grants the authorization to
Institutions to work together to find the entities for developing City Gas
Waste Water Control, solution to these challenges. Mr. Distribution network in a specified
Water Conservation, Pradhan said that molasses to Geographical Areas (GA) of the
Gaseous Emission Ethanol conversion is already country. CGD network supplies gas
going on and the Government has to four distinct segments viz
Control, Solid Waste
taken up second generation of Compressed Natural Gas (CNG)
Management, Control lignocelluloses to Ethanol predominantly used as auto-fuel
of noise pollution etc production to utilize agricultural and Piped Natural Gas (PNG) used
residues/wastes, and achieve the in domestic, commercial and
are noteworthy
target of 10% Ethanol blending. Industrial segments. At present, only
In order to improve the authorized CGD entities under the
availability of ethanol, the PNGRB Act, 2006 can set up CNG
Government has decided to fix the stations in their respective
delivered price of ethanol in the Geographical Areas. PNGRB has,
range of Rs.48.50/litre to 49.50/ so far, held 5 rounds of bidding for
litre, depending upon the distance awarding authorization to develop
of distillery from the depot/ CGD networks. With these bidding
installation of OMCs. rounds, there are now 58 GAs which
Similarly in order to promote have been covered under CGD
Bio Diesel, OMCs have been network in 15 States and UTs of the
directed to purchase bio diesel, country, according to Ministry of
meeting the prescribed BIS Petroleum & Natural Gas,
standard, at a uniform price, as may Government of India. PNGRB has
be decided by the OMCs from time planned to commence the 6th round
to time, for blending with High Speed of CGD bidding, with this almost all
Diesel to the extent of 5%, at gas in the country having existing
identified 20 purchase centres natural gas pipeline connectivity
across the country. According to would be covered. Today India has
Ministry of Petroleum & Natural Gas, 1009 CNG stations catering to
Government of India, OMCs have approximately 23 lakh vehicles.
reviewed the procurement price of Government has placed CNG
bio-diesel at various purchase (transport) along with PNG
centres and with effect from 7th (Domestic) on top priority in
November 2014, the declared price domestic gas allocation. Presently
of bio-diesel is Rs.41/litre. the entire requirement of CGD
Moreover, it has been decided to entities for PNG (domestic) and
allow the direct sale of bio-diesel CNG (transport) is being met
(B100) to all consumers by private through domestic gas at uniform
manufacturers, their authorized base price based on preceding six
dealers and Joint Ventures of OMCs months consumption data. Further,

Ministry of Petroleum & Natural Gas

has allowed GAIL India Limited to
supply 10% additional domestic gas
in order to meet the daily fluctuation
of PNG and CNG demand.
Petrol & Diesel Pricing

The price of petrol has been
market-determined since June
2010 and prices of diesel also have
been market determined since
October 2014.
Shale Oil & Gas

In order to harness hydrocarbon
“Solarisation of retail outlets has been taken
resources trapped in shale layers,
policy guidelines for exploration up by oil marketing companies for lighting
and exploitation of shale gas and their retail outlets: So far, 2140 retail outlets
oil by NOCs under nomination
have been powered by solar energy. The
regime was announced in October
2013. ONGC and Oil India Ltd. (OIL) target is to increase the number to 7200
have already identified and retail outlets by March 31, 2017”
permission granted for 50 and 5
blocks respectively under their flaring has considerably come down Gas, Government of India.
Petroleum Exploratory Lease to 872 million cubic meters of gas All the refineries are certified for
(PEL)/ Mining Lease (ML) acreages per annum flared during 2014-15, Environmental Management System
in the phase-I, spanning over 3 as against around 5130 million conforming to ISO-14001 standard
years. ONGC has in the meantime cubic meters flared during 1990-91. and are audited periodically for
drilled 14 wells for shale gas For minimizing wastage in gas compliance. Specific measures
exploration in its acreages. The transmission networks, operational taken by refineries to mitigate
result obtained are being analyzed. parameters of gas network for major pollution and minimize impact on
OIL has under taken detailed G&G global natural gas companies have the surrounding environment such
studies in 5 blocks identified by been studied and benchmarking as Waste Water Control, Water
them in their PEL/ML acreages. has been done accordingly. At Conservation, Gaseous Emission
present the margin of wastage Control, Solid Waste Management,
Measures taken by upstream targeted is in the range of +/-0.3%, Control of noise pollution etc are
companies and strict monitoring is being done. noteworthy.
Natural gas generates 40% less
CO2 as compared to coal, and about Measures taken by downstream Measures taken by Petroleum
30% less to heavy oil. In the companies Conservation Research
upstream sector, wastage of gas Solarisation of retail outlets has Association (PCRA)
takes place primarily due to (a) gas been taken up by oil marketing PCRA is involved with conservation
flared during the production testing companies for lighting their retail of petroleum products in the major
in a well; and (b) technical flaring of outlets: So far, 2140 retail outlets s e c t o r s o f e c o n o m y. P C R A
gas done in oil and gas processing have been powered by solar energy. activities include conservation of
plants. There has been steady The target is to increase the various energy sources,
decline in natural gas flaring since number to 7200 retail outlets by evaluation and commercialization
base year 1990-91. As a result of March 31, 2017, according to of efficient equipment, training of
various corrective measures, gas Ministry of Petroleum & Natural drivers. dewjournal.com

dewjournal.com Fuels & Lubricants
Clean diesel technology is

key to improving quality of life
Key to the successful implementation of the US clean diesel programme has been a
cooperative and rigorous technical effort between engine and vehicle manufacturers
and regulatory bodies to ensure achievable standards and timeframes. Clean diesel
technology is key to the future economic vitality, environmental improvement, meeting
global climate commitments and improving the quality of life in India. The journey must
begin promptly with cleaner diesel fuel and new technology diesel engines. Users
must also be willing to accept higher costs for both fuel and vehicles, but the clean air
benefits and fuel savings will rapidly follow.
driving on certain high pollution

days, while painful, are the most
proven immediate solution to
cutting emissions. Recent actions
Alan Schaeffer to ban larger diesel-powered SUVs
Executive Director are a reactionary step with
Diesel Technology Forum, United States questionable impacts on
emissions, but real impacts on
T he images from Delhi are as

iconic as they
disconcerting; bumper to bumper
are
technology, but rather toward the
solution to move rapidly from old
higher emitting technology and dirty
individual owners and businesses,
and disruptive to certainty required
for business planning, execution
traffic jams, and the haze of air and adulterated fuels to new and results. Likewise, policies
pollution in a bustling growing technology and cleaner fuels that declaring a switch from diesel to
region that is now facing down the also provide more fuel efficiency natural gas in some buses and
complex issues arising from reliability and safety benefits. other vehicles have been proven to
industrialisation and Diesel engines are clearly both part be unsuccessful as well. Banning
modernisation of its economy. of the problem, but also must be diesel engines in Delhi or other
There is no debate about whether part of the solution. cities is not the answer to reducing
air quality in Delhi must improve; it First, the published emissions air pollution.
must. inventory for Delhi indicates that The Indian government can
But are the recent policies between 60 to 70 % of fine particles best address the challenges of
aimed at transportation sector to come from waste burning, power transportation emissions by a rapid
reduce emissions the right ones? generation, brick kilns and other move to higher quality
sources. Addressing these transportation fuels across the
Where are the solutions? sources and modernising the board – both gas and diesel – and
The frustration on air pollution in electrical grid should be a incentives to invest in newer
Delhi is misplaced and should not foundational and priority step. technology for cars and trucks.
be directed against any one fuel or Policies that restrict vehicle As has been the case in the

Fuels & Lubricants dewjournal.com
“The Indian government can best address the challenges of

transportation emissions by a rapid move to higher quality
transportation fuels across the board – both gas and diesel – and
incentives to invest in newer technology for cars and trucks”
A graphic that shows the new clean diesel system – cleaner fuels + advanced engines + improved emission controls
A graphic that shows how new diesel emission control systems operate

US and other parts of the world, fare in the US, and can be found
improvements to air quality can across the board on passenger
begin rapidly by introducing cars and commercial trucks, to the
cleaner diesel fuels. Ultra-low largest off-road construction, farm
sulphur diesel fuel (less than 15 and industrial diesel engines,
ppm sulphur) can have an including electrical power
immediate effect, reducing vehicle generators. The newest diesel
particulate emissions by about 10% engines are not only near zero
from all diesel vehicles that use it; emissions but are also more fuel-
both old and new. Far greater clean efficient, a major advantage for
air benefits – 98% reductions in diesel operators. That's why today
particulate emissions and similar more than one-third of the 1.3 mn
reductions in nitrogen oxide commercial trucks on the road in
emissions will come from new the US are 2007 and newer
clean diesel engines that are vehicles, which use the most
optimised around this clean fuel advanced near-zero emissions
and have the latest emissions particulate control technology. Over
controls; catalysts and filters that 15% are 2010 and newer-which
virtually eliminate emissions of also are near-zero emissions for
concern. These emissions control nitrogen oxides-a contributor to
systems are highly effective with smog.
cleaner fuel, but they are quite Recently we have had the
sensitive to contamination with opportunity to participate in the
dirtier fuel, so a fuel quality India California Air Pollution
programme is absolutely Mitigation Program, a joint initiative
essential. of the University of California and
The Energy Resources Institute
The USA example (TERI), India. California has been
Diesel engines are the workhorse at the forefront of driving clean air
of the global economy providing the policy and technology in the US, and
most fuel-efficient, economical and experts from India are reviewing
reliable power to move both goods these policies and accomplishments
and people and power construction as models for India.
and agricultural equipment around A major theme of the
the globe. And as a result there is a discussions was the significant
vast amount of experience and progress made in reducing
advanced technology solutions at emissions of black carbon in
hand. California, which decreased by 70%
Over the last decade in the US, between 1990 and 2010 in direct
the diesel industry has undergone proportion to declining diesel
a fundamental transformation of particulate emissions. Levels of
both diesel fuels and engine particle pollution in California are
technology. This combination has now two to 10 times lower than
resulted in a 98% reduction in Delhi, Mumbai or Ahmedabad.
nitrogen oxides and particulate California has a goal of
matter from both on-road and off- reducing diesel particulate matter
road vehicles and equipment. by 85% by 2020. This is being
The near-zero emission clean achieved with new emission
diesel technology is now standard standards, cleaner fuels, retrofits of

existing engines, and enforcement 100% renewable diesel fuels in all improving the quality of life in India.
programmes. CARB and the US EPA of its existing diesel vehicles, The journey must begin promptly
have adopted new vehicle delivering immediate reductions in with cleaner diesel fuel and new
standards that reduce emissions by carbon and other emissions technology diesel engines. Users
90% beginning in 2007. CARB will virtually overnight, without changes must also be willing to accept
require after treatment on every to infrastructure or other fuels. higher costs for both fuel and
diesel source, where it is technically vehicles, but the clean air benefits
feasible. Low-sulphur fuel is Conclusion and fuel savings will rapidly follow.
required, as well as cleaner fuels Key to the successful The Diesel Technology Forum
like CNG and measures to reduce implementation of the US clean is a non-profit organization
or eliminate idling. Enforcement diesel programme has been a dedicated to raising awareness
programmes are used to minimise cooperative and rigorous technical about the importance of diesel
the effects of tampering and wear. effort between engine and vehicle engines, fuel and technology. Forum
California government leaders manufacturers and regulatory members are leaders in clean
recognised the role of diesel in the bodies to ensure achievable diesel technology and represent the
economy – that it was vital and that standards and timeframes. Clean three key elements of the modern
there were no suitable diesel technology is key to the future clean-diesel system: advanced
replacements for most economic vitality, environmental engines, vehicles and equipment,
applications. In San Francisco, the improvement, meeting global cleaner diesel fuel and emissions-
city has immediately begun using climate commitments and control systems. dewjournal.com
Clariant and CB&I to design world’s largest

single-train dehydrogenation unit in China
Clariant, a world leader in specialty of propane and isobutene for a high yield
chemicals has announced that it has of propylene and isobutylene, and
been awarded a contract by Hengli Petrochemical correspondingly low investment and operating costs.
(Dalian) Refinery Co. Ltd to develop an extensive These performance advantages are now further
propane and butane dehydrogenation unit in enhanced through the inclusion of HGM in the Catofin
cooperation with CB&I. The project includes the process.
license and engineering design of the co- HGM is an innovative metal-oxide material which
processing unit, which is to be built in Dalian, is designed to significantly increase selectivity and
Liaoning Province, China. yield of Catofin units. The material is loaded into the
The design will be based on CB&I’s Catofin® catalyst bed with the catalyst where it undergoes
catalytic dehydrogenation technology using oxidation and reduction during the operating cycle,
Clariant’s tailor-made Catofin catalyst and Heat producing heat and driving the dehydrogenation
Generating Material (HGM) to process feedstock reaction. This not only boosts yields and saves
containing 300,000 metric tons of propane and energy, but also reduces emissions. In recognition
600,000 metric tons of isobutane annually for the of its significant step-change contribution to
joint production of propylene and isobutylene. When feedstock utilization efficiency, HGM was awarded a
completed, it will be the largest single-train co- special mention by the ICIS Innovation Awards 2014.
processing dehydrogenation unit in the world, and HGM demonstrated excellent performance at the
will play a key role in Hengli’s expansion plans. propane dehydrogenation plant of Ningbo Haiyue
The Catofin process is recognized as a highly New Material Co. Limited in Ningbo City, China.
reliable and efficient technology for producing Hengli will be the second co-processing plant to
propylene from propane, and isobutylene from utilize HGM, following the successful unit designed
isobutane. The process operates at optimum reactor for Shandong Sincier Petrochemical Co., Ltd. in
pressure and temperature to maximize conversion Dongying, Shandong Province, China.

ExxonMobil shares its perspective on how

can play an important role in ‘Advancing
E xxonMobil Lubricants Private Limited recently
showcased its expertly formulated
comprehensive range of greases available in India.
greases with advanced technology that are designed
to offer customers extended re-greasing intervals,
longer equipment life, and greater productivity. This
The company elaborated on how leveraging includes synthetics for extreme conditions, poly urea
comprehensive lubricant technologies and service thickener based greases for long life and use in high
solutions can help users enhance safety, achieve temperatures, food-grade solutions, and grease for
environmental care-related goals, and maximize environmentally sensitive applications. The level of
productivity. grease’s performance depends on the formulation
Advancement in machine and equipment approach. Greases that are developed through a
designs have affected operating parameters and balanced formulation approach often offer significant
thus the requirement for lubricating greases. As performance benefits and advantages. Mobil’s
operating parameters like speed, load, temperature, advanced formulation greases are designed to
etc., vary significantly based upon the equipment, it provide all-round balanced performance for severe
is practically impossible for a single grease to handle conditions experienced by today’s industrial and
all the diversified applications. Mobil has a balanced mobile equipment.
portfolio of state-of-the-art, well proved, high- The mining industry is one of the most
performance lubricants and greases that can cater fundamental components of the industrial landscape,
to the needs of many industrial sectors all backed by and also one of the most challenging from a
ExxonMobil's technology leadership and unmatched lubrication standpoint. By combining the use of high
industry expertise. quality lubricants and an effective technical services
“In modern machinery design and construction, program, mining operators can achieve a competitive
machines function under severe operating advantage in their operations, by enhancing
conditions with the expectation of increased productivity and reducing their lubrication
productivity and less downtime. This has made it consumption which will potentially increase the
difficult for conventional lithium greases to productivity and reduce downtime of their mining
satisfactorily fulfill these requirements. In light of machinery and equipment. In addition, health and
this fact, high performance greases like lithium- safety benefits may also be realized.
complex and calcium-sulfonate are the best “Operators in the mining sector have to balance
candidates for the said applications. While lithium- multiple concerns, as they try to enhance operational
complex greases have excellent compatibility with safety and keep their machinery running at peak
the most widely used lithium greases, calcium- performance, even when it is subjected to extreme
sulfonate greases are also moderately compatible. temperatures and heavy loads. To help address these
Lithium-complex greases generally possess good issues, it is essential to work closely with mining
stability, high-temperature characteristics and customers to develop a solutions-focused approach
water-resistance properties which meet the needs to help protect and maintain equipment across their
of a wide variety of heavy-duty applications and entire operation. This can be done by leveraging
operating conditions. They provide balanced load- comprehensive lubricant technologies and service
carrying capability across a spectrum of loads, solutions, helping companies enhance safety,
speeds and temperatures,” said Mr. Imtiaz Ahmed, achieve environmental care-related goals, and
Asia Pacific Mobil SHC Brand Manager, ExxonMobil maximize productivity. Lubricant programs and
Lubricants Private Limited. services – when delivered from a solutions-oriented
To fulfill the unique needs of a wide range of approach – can play an important role in advancing
industries, Mobil offers a comprehensive line of productivity in mining operations,” said Mr Shankar

solutions-oriented lubrication program

Productivity’ in the mining operations
Karnik, General Manager
Industrial, ExxonMobil Lubricants
Private Limited.
While the primary function of
a lubricant is to protect
equipment, reduce unscheduled
downtime and extend oil drain
intervals, advancements in
lubricant technology now mean
mining companies can select oils
and greases which provide
outstanding levels of protection
as well as other potential benefits “Comprehensive “ExxonMobil’s
“Lithium-
such as improved fuel economy. lubricant
complex comprehensive
Heavy-duty diesel engine oils, technologies and
greases portfolio of oils
hydraulic oils and greases work service solutions
generally and greases
hand-in-hand to enable mobile maximize
possess good along with
machinery on mining sites to productivity.
stability, high- robust
operate effectively.
temperature Lubricant services,
“ExxonMobil’s comprehen-
characteristics programs and combine to
sive portfolio of oils and greases
and water- services – when offer holistic
along with robust services,
resistance delivered from a solutions for
combine to offer holistic
properties solutions- mining
solutions for mining operators.
which meet the oriented operators. The
The benefits offered have been
needs of a wide approach – can benefits offered
widely acknowledged by
variety of play an important have been
successful mining operators
heavy-duty role in advancing widely
located all across the world. The
applications productivity in acknowledged
technology leadership embodied
and operating mining all across the
in our greases, along with the
conditions” operations” world”
application expertise of our
engineers, can help mines: - Imtiaz Ahmed - Shankar Karnik - Umut Urkun
address safety exposure, Asia Pacific Mobil General Manager Global Grease
SHC Brand Manager, Industrial Marketing Advisor,
mitigate environmental touch ExxonMobil ExxonMobil ExxonMobil Fuels &
and support their desire to be Lubricants Pvt. Ltd Lubricants Pvt. Ltd Lubricants
more productive,” said Umut
Urkun, Global Grease Marketing Advisor, ExxonMobil temperatures; water contamination; heavy or shock
Fuels & Lubricants. loads; or variable speeds. Mobil’s grease portfolio
Backed by more than 100 years of industry in India includes Mobil SHC Polyrex, MobilithSHC,
expertise, Mobil’s range of greases are expertly Mobilgrease XHP series and Mobil Centaur XHP. The
formulated to meet a wide variety of operating Mobilgrease XHP series includes Mobilgrease
conditions in both industrial and mobile equipment, XHP™ 461/462, Mobilgrease XHP 222 and
including extreme applications such as high and low Mobilgrease XHP 222 Special. dewjournal.com

dewjournal.com Preview
22nd WPC 2017 - Istanbul, Turkey
WPC President along with the Director General and other executives of the WPC and the Turkish Organising
Committee, 22nd WPC
T he WPC Turkish National Committee hosted the Turkey launch of 22nd World
Petroleum Congress. The Congress, under the sponsorship of Turkish
Petroleum, will be held from 09 June to 13 June 2017 at CNR EXPO with 20.000
participants, 5.000 decision-makers, and 50 ministers from over 100 countries.
It is the first time that the triennial World Petroleum Congress, the oil and gas
industry’s largest international event, will be held in Turkey. Under the theme of “Bridges
to Our Energy Future”, the Congress will also stress Turkey’s unique place in global
energy policies and the importance of Turkey’s energy corridor and terminal role.
Mr. Besim Sisman, the President of the Turkish National Committee and CEO
of Turkish Petroleum, presented the plans for WPC 2017. He explained that “Hosted
by Turkish Petroleum, the 22nd WPC is going to be an important platform for
discussion of issues concerning long-term global energy policies. Working together
paves the way for sustainable growth in a world where the need for global energy is
continuously increasing. The decisions that will be made in Istanbul will be a turning
point for our global energy future.”
“The Congress will not only address the technical aspects of oil and gas, but
also economic and political implications. We must take action now to secure cleaner,
reliable and affordable energy for the next generations and to make energy available
for all in an uncertain world. This is clearly reflected in the theme for the congress,
‘Bridges to Our Energy Future’. I believe that the contribution to global energy
cooperation, the debate with all key stakeholders and the networking with industry
leaders and global leaders will make 22nd WPC unforgettable.” said Mr. Sisman.
The President of World Petroleum Council (WPC), Dr. Jozsef Toth, said that “I
am delighted that the Congress has received an excellent, national champion in
Turkish Petroleum. WPC members represent over 95% of the world’s oil and gas
consumption and production and cover all five continents.”
The President announced that a highly relevant programme has been created
for the Congress and that the international committee has already selected nearly
100 leading global experts to chair and moderate the event.
“The Call for papers for 22nd World Petroleum Congress is open,” said President
Toth and added, “We invite all to contribute their knowledge and expertise at this
important platform.” dewjournal.com
DEW Journal has been nominated Media Partner by the World Petroleum Council.
DEW is a proud Media Partner to the World Petroleum Congress since the year 2002.

Dew Journal February 2016 Issue

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Dew Journal February 2016 Issue

Uploaded by

Copyright:

Available Formats

dewjournal.

February 2016 DEW JOURNAL 1

30 Quantifying uncertainty (Uttarakhand) India

78 Green Initiatives - Ministry of Petroleum & Natural Gas, India subscription@dewjournal.com

39 New approach to pipeline repair reduces costs Dehradun is an internationally circulated

2 DEW JOURNAL February 2016

February 2016 DEW JOURNAL 3

The world is seeing a shift in supply and demand; in particular, we are

4 DEW JOURNAL February 2016

February 2016 DEW JOURNAL 5

World’s first AiP for LNG-fuelled VLCC design

6 DEW JOURNAL February 2016

New oil spill recovery record

The Egersund Group’s oil spill recovery system in action

February 2016 DEW JOURNAL 7

Crowley partners with Gas Technology Institute

8 DEW JOURNAL February 2016

New standard for reliable position

February 2016 DEW JOURNAL 9

India's nominee, Dr.D.J. Pandian appointed as the

Siemens to supply wind turbines to Finland

10 DEW JOURNAL February 2016

Prime Minister dedicates Paradip Refinery to the nation

February 2016 DEW JOURNAL 11

ONGC Videsh and Rosneft

12 DEW JOURNAL February 2016

Mubadala and PEMEX Sign MoU and Cooperation

February 2016 DEW JOURNAL 13

Large unexplored area offshore South

14 DEW JOURNAL February 2016

led government’s National Gas p a r t o f N G H P ’ s s e c o n d R & D r e c e n t l y b e e n c o m p l e t e d w i t h

February 2016 DEW JOURNAL 15

LEADING THE WAY IN ENERGY EFFICIENCY: Essar Oil ranked

Repsol sells its piped gas business in Northern

16 DEW JOURNAL February 2016

Fugro delivers surface current

February 2016 DEW JOURNAL 17

The Barents Sea ice challenge: Loads to learn

18 DEW JOURNAL February 2016

“The most severe actions on Arctic offshore structures are

- Hege Berg Thurmann

February 2016 DEW JOURNAL 19

GE Oil & Gas announce five new partnerships,

BP realigns senior executive team

20 DEW JOURNAL February 2016

February 2016 DEW JOURNAL 21

Petroleum Ministers, Regulators, CEOs of National Oil

India Africa to strengthen mutual

T he Fourth India Africa Hydrocarbon Conference (IAHC) hosted by India, attended

Of the 21 participating African nations the delegations of

22 DEW JOURNAL February 2016

Modi at the 3rd India-Africa Forum

February 2016 DEW JOURNAL 23

Fiscal Regime challenges and potential solutions to

India’s Petroleum Minister plans

24 DEW JOURNAL February 2016

The hydrocarbons industry accounts for

Energy, we are delighted to enter into this agreement,” them,” he stressed.

Equatorial Guinea and India - Some facts

February 2016 DEW JOURNAL 25

26 DEW JOURNAL February 2016

Energy security stands as one of the major

February 2016 DEW JOURNAL 27