1. 1.1 Overview- Indian E&P Industry
1.1.1 History
•Oil Struck : Makum in Assam
1887
•First commercial oil discovery : Digboi.
1889
•Assam Oil Company formed.
1899
•India's Domestic Oil Production : 250,000 tonnes per annum.
1947
•ONGC set up.
1955
•Oil India Limited (OIL) set up.
1958
•Discovery of Bombay High Field
1974
•Liberalized exploitation and exploration policy.
1991
•DGH is formed
1993
•4th, 5th, 6th, 7th & 8th rounds of exploration bidding
1994
•New Exploration Licensing Policy (NELP)
1998
•From 1998 held 9 NELP rounds.
2011
1.1.2 India Today
 India remains energy deficit country - imports 77% of total domestic demand of 145
million MMT
 The sedimentary basins of India:
Onland and offshore up to the 200m isobaths: 1.79 million sq.km
Beyond 200m isobaths, deep water: 1.35 million sq-km
Total: 3.14 million sq-km
Sedimentary Basins of India

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3.  Total demand of Crude oil projected: over 4 million bbls/day in 2013 – 14 and 6 million
bbls in 2021-22
 Projected growth rate in production as per 12th 5-Year Plan:
 E&P Players in India:
National Oil Pvt Cos/ JVs
Companies Number : 59
Number : 10 Majors: Cairn Energy,
Majors: ONGC, OIL, Ril, BP, BG,
GAIL & GSPC
Essar and HOEC
TOTAL - 69
E&P PLAYERS
 E&P Companies with Offshore Assets in India
o ONGC: the largest entity employing 40 rigs out of 51 offshore rigs deployed
o RIL / BP: 2nd largest in offshore operations, primarily in DW segment
o Other companies are BG, CAIRN, GSPC, Hardy, HOEC …
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4.  Share of total oil and
SHARE OF TOTAL OIL & OIL EQUIVALENT GAS
oil equivalent gas
(O+OEG) PRODUCTION 2012
(O+OEG) production
in 2012: 60%
40%
55%
20% 37%
0% 8%
ONGC OIL Pvt. Co. / JV
 Total No. of Exploration Pvt. Co. /
OIL ONGC
Wells planned during JV's
the period from 2012 –
2017 is 1310:
174 525 611
 The E&P companies vis-à-vis their operated blocks is represented by the following matrix :
STATUS NAME OF OPERATOR SHALLOW DEEP LOCATION
WATER WATER
ONGC Yes Yes East, West
NOC (PSU)
OIL Yes No East
GSPC (State) Yes No East, West
Coast
BHP Billiton Petroleum International Pty. Ltd Yes Yes MB, KK-East
Hardy Exploration & Production (India) Inc. Yes Yes Cauvery
British Gas Exploration & Production Ind Ltd. Yes Yes Tapti,
Mumbai, KG
Bengal Energy International Inc. Yes No Cauvery- East
Cairn Energy India Pty. Limited Yes Yes East, West
BP Exploration Alpha Limited No Yes KG-East
Reliance Industries Limited Yes Yes East, West
PRIVATE
Focus Energy Limited Yes West
Adani Enterprise No Yes North East
Coast
Essar Oil Limited No Yes North East
Coast
ENI India Limited No Yes Andaman
OAO Gazprom No Yes North East
Coast
Petrogas Limited Yes East
(Mahanadi)
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5. STATUS NAME OF OPERATOR SHALLOW DEEP LOCATION
WATER WATER
Santos No Yes North East
Coast
Hindustan Oil Exploration Company Limited Yes No Cauvery-east
1.1.3 Various Regulatory bodies and their roles in Drilling Sector
A. Institutional Arrangement under MOPNG:
IGL
MGL
B. Directorate General of Hydrocarbons (DGH)
• Monitoring all activities of NELP & Pre-NELP blocks/fields.
• To prepare various data related to rigs and wells.
• Evaluation of work programmes and approval budgets
• Evaluation applications and issue EC related to drilling wells, rigs, OSVS etc.
• Estimation of cost of unfinished drilling work programme of operators.
• Technical scrutiny of all matters related to drilling/work-over activities.
C. Oil Industry Safety Directorate (OISD)
• Framing the Safety Regulations for the Oil and Gas Industry
• Audit oil and installations for safety compliance
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6. C. Directorate General of Mines Safety :
• Regulator of Mines in India, limited role over offshore installations, specifically Drilling
Rigs.
D. Petrofed
• Facilitator for Oil Industries in India in Coordination with Governments, Regulatory
Agencies and other representative bodies in the petroleum industry.
• Promote Safety, Healthy Environment and Energy conservation
• Award the Industry Leaders
• Organise Seminars, Conferences, Training programmes, lectures and publication of
Technical papers & newsletters.
E. Other Government Bodies and their role in connection offshore Drilling:
Agency Short Name Issues related Offshore Drilling
Ministry Of Petroleum And Natural MOPNG For Approvals As Required Under
Gas PSC.
Ministry Of Environment & Forests MOEF Monitors E&P Operators, primarily
on Drilling Fluid
Ministry Of Defence MOD Security Clearance For Vessels In
Indian Waters and Crews
Ministry Of Finance MOF Tax and Customs Duty
Director General Shipping DGS Approval For Hiring Foreign Vessels
Director Of Explosives DOE Importing / Stocking Explosives
Coast Guard CG Security And Hazard Issues For
Offshore Installations
Commissioner Of Customs & Excise CCE Imports / Exports
Commissioner Of Income Tax CIT Income Taxation
Registrar Of Companies ROC Registration Of Company
Statutory Returns
Reserve Bank Of India RBI Payments In Foreign Currency
1.1.4 Other Industry bodies and their roles
IADC: Very active and has strong representation specifically in ONGC and offshore drilling
industry
SPE: Very active, arranges technical conferences; a great place to meet the Asset Owners.
CII: Represents Industry bodies to Government in Policy Issues.
FIICCI: Representing Industry bodies to Government in Policy Issues.
Petrotech: Arranges the largest oil and gas conference in India
AOGO: An Association exclusively for E&P Operators;
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7. 1.2 Drilling Outlook – Indian Offshore
1.2.1 Drivers :
 Pressure/targets for domestic production
 Improve recovery from 28% to 40%-Mumbai High Redevelopment /other through IOR/EOR
 Operators keen to monetize discoveries
1.2.2 Exploration Activities:
Driven primarily by NELP commitments (MWP)
During the last 3 NELP rounds:
• 19 DW blocks and 20 SW blocks were awarded;
• Seismic work is in progress/completed.
• Drilling yet to be started
As per 12th 5-Year plan forecast Exploration Wells during 2012 – 2017:
o ONGC: 611
o OIL: 174
o Pvt Co/ JVs: 525
o Total: 1310
RIL to invest USD 1.53 billion for exploration of satellite blocks of KG D6 [water depth 700m
(2,297ft) and 1,700m (5,577ft)]
1.2.3 Activities Outlook: Development & Production- Shallow Water:
Co Requirement Status
ONGC Development/Redevelopment plans being Rolled out plans to invest
launched for Mumbai High/Others in early USD 7.7 Billion for
2000 in order to achieve the recovery factor redevelopment of existing
to 40% till 2030 from the current level of field and exploration of
sub 30% . Expansion Mumbai offshore to satellites
develop 3 more cluster in 3- 4years.
Cairn 6 months, starting mid 2013, mat rig Tender process to start
Addl Development beginning 2014, 2 Rig Budgeted, Subject to
Years Geological Work
BG Two rigs till 2014, Chetna and ENSCO 54 New Tender subject to JV
likely to continue decision
GSPC To drill 15 HPHT wells by 2014 at East Coast Already resourced
– Platform Rig
BP/RIL New Discoveries, Drilling to commence by Under Development
mid-end 2014 Planning
Others Hardy, ENI (DW), AWEL, HOEC, NIKO Details not available
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8. 1.2.4 Deepwater- Snapshot :
 10-15 years firm development drilling is foreseeable with a likely deployment of 4-5
deepwater/ultra deepwater floaters in Offshore India
 RIL & ONGC have substantial numbers of gas discoveries on the East Coast
 Development of RIL’s NEC & KG discoveries may result in long term intensified drilling
activities from 2013 onwards
 Post on-going appraisal, ONGC’s FDP for KG & MN expected to result in incremental drilling
programme (50 wells) commencing 2014/15
 Discoveries like D6, UD-1 essential for continued interest among the operators community
 Govt’s willingness to optimize the gas pricing would help efficient monetization, a rethink on
calculation for FDP approval
 India moving towards increased gas consumption (Power plants, cross country pipelines,
CGD) good domestic market
1.2.5 Looking Ahead :
Shallow Water Deep Water
• Present level OF development activities to * A temporary pause in the development
continue on the foreseeable future activities for various reasons, expected
to pick up substantially in next 2-3 years
• Exploration backlog to last at-least for
another 10 years, some upsurge in mid * DW blocks awarded under NELP 8 & 9 th
water activity in mid term round expected to further maintain the
drilling momentum from 2014 onwards
• ONGC expected to remain dominant
player * Application of new technology on the
west coast (sub Basalt Mapping etc) may
lead to Phase-II entry in MB/KK
exploratory blocks for operators and
which may result in incremental drilling
commitments
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9. 1.2.6 Current Market Analysis for Offshore Drilling Rigs
Market Share- 2012
Transocean
ONGC
8
12 Aban
2 Nabors
3 Jindal
GreatOffshore
3
8 Jagson
4 Greatship
5 6 Others (1 Rig)
Market Share by Rig Type
4 1
Jack up
7 Platform
Drillship
7 Semi
32
Barge
Type of Contracts 3 Years
5 Years
17 4 Years
22
1.5 Years
18 Wells
1
11
9 Well Contracts
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10. 1.2.7 Current Market Analysis for Offshore Jack-up Rigs
Market Share in Jack-up Rigs - 2012
Transocean
1
1 1 ONGC
2 7
Aban
2 Jindal
Jagson
3 Greatship
6 GreatOffshore
Deepwater
4
Focus
5 Foresight
Utilisation of Jack-up Rigs by Type
2 2
300 IC
3
350 IC
17
375 IC
8
250 IC
250 MS
Utilisation of Jack-up Rigs by Design
F&G L 780
4
KFELS B Class
8
LET 116C
4
BMC 300 IC
LET 53C
2 ETA
4
2 Hitachi
2 3 LEV 111C
3 Others (1 Rig)
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11. 1.2.7 Current Market Analysis for Floaters
Market Share of Floaters in Indian Waters
1 Aban Offshore
1 GOL Offshore
5 Jet Drilling
1
Noble
Vantage Drilling
1
ONGC
1 Transocean
2
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