SHRI NAIK CALLS FOR COST-EFFECTIVE
TECHNOLOGY TO PRODUCE HYDROCARBON FROM DEEPWATERS
The Minister of Petroleum
& Natural Gas, Shri Ram Naik, has emphasised the need for
evolving cost-effective solutions for producing oil and gas from
deep-water areas of the country. Inaugurating a seminar on "Development
of Deepwater Discoveries – Challenges and New Technologies",
here today, Shri Naik said that the exploration for Hydrocarbon
in non-producing and frontier areas like deepwater is a major
thrust area for the Government. Underlining the relevance of the
seminar to the emerging hydrocarbon scenario of the country, Shri
Naik informed that huge gas reserves of around 10 TCF (Trillion
Cubic Feet) has been discovered in the deepwaters in Krishna-Godavari
Basin. These discoveries have been made within 3 years of award
of contracts under the first round of New Exploration Licensing
Policy (NELP-I). The three-day seminar has been organised by Directorate
General of Hydrocarbons (DGH) in association with PETRAD of Norway.
Shri Ram Naik also
informed that as per the work programme, US$ 1.7 billion (Rs.
8,500 crore) is estimated to be invested in the 24 deepwater blocks
awarded under the three rounds of NELP, covering an area of about
0.35 million sq. Kms of deepwater area. He added that some more
from prospective deepwater blocks would be included when the 4th
round of NELP is launched next month. India offers one of the
best contractual and fiscal terms with equal opportunities to
all the investors under the new exploration policy wherein the
maiden offer of blocks was made in 1999 for the first time which
included deepwater blocks. Being high risk capital intensive activity,
NELP provides for concessional royalty at 5 per cent for 7 years
from deepwater blocks as against 10 per cent from shallow offshore
blocks and 12.5 per cent in case of onland blocks. With the changed
perception about the prospectivity, especially in deepwaters,
Shri Naik expected more success in future.
Speaking on the occasion,
Shri Santosh Gangwar, Minister of State for Petroleum & Natural
Gas, said that DHG has recently surveyed deepwater areas of western
off-shore which will help the country in identifying blocks for
offers in coming rounds. He expressed hope for more rewarding
discoveries in deepwaters off West Coast as a result of these
efforts. As part of the efforts to expand activities in yet unexplored
areas, Shri Gangwar envisaged the appraisal of large areas of
country’s sedimentary basins during next 4-5 years. Petroleum
Secretary Shri B.K. Chaturvedi also spoke on the occasion.
Norway and India
hold bright prospects for cooperation in various facets of hydrocarbon
sector. Norway is one of the leaders in Petroleum operations with
skills in harsh environment of North Sea, technical expertise
in building offshore structures including Deep Sea structures,
high degree of concern for safety and environment and improved
recovery performance. The seminar aptly covers many important
aspects like Deepwater Technologies, Integrated Production Umbilicals,
Diverless Connection system for deepwater and optional method
for installing sub-sea structures, Design of Deepwater flow lines
and pipelines, Safety and Environment conditions in deepwater,
material selection for offshore process system and reliability
and availability of offshore oil and gas installations.
