Pre-Conference on Shale Gas(Petrotech-2010)

DIRECTORATE GENERAL OF HYDROCARBONS

(UNDER MINISTRY OF PETROLEUM & NATURAL GAS)

DGH

30 October 20101

Sanjay Chawla

SHALE GAS - Indian scenario

2

Outline

Overview

Indian Scenario

Way Forward

Concluding Remarks

3

Huge Shale Gas Potential

Shale Gas in US – A Huge success

17% of US Natural Gas Production

Huge Potential Worldwide

> 15000 TCF

Projects initiated in Europe, Asia, Africa

4

5

?

Huge Shale Gas Potential

SCHEMATIC OF SHALE GAS

Conventional Non Associated Gas

Conventional Associated Gas

6

Shale Gas Characteristics• Mature Petroleum source rocks

• Rich in Organic Matter• TOC = 2-3%; VRo= 1-1.2%,

• Usually Thermogenic

• Low in Permeability (K= 0.01mD or less-nD).

• High Natural Gas in-place volumes7

What changed the game?

8

SCHEMATIC SHALE GAS COMPLETION

9

HORIZONTAL SHALE GAS COMPLETION

10

Horizontal Vs Vertical - Shale Gas Production

Source: EIA , 2010

16000 SCMD Vs 4000 SCMD

11

Shale Gas Fracturing Job site

In the Marcellus, 3 to 5 million gallons (or 900 truckloads) water for completing a standard 5-10 stage lateral utilizing slick water fracs every 300 ft. 12

13

Water Storage

BASIN GEOLOGICAL AGE

1 CAMBAY TERTIARY

2 GONDWANA PERMIAN

3 ASSAM-ARAKAN TERTIARY

4 KG - ONSHORE CRETACEOUS

5 CAUVERY -ONSHORE CRETACEOUS

6 INDO -GANGATIC

PROTEROZOIC/TERTIARY

Shale Gas Prospect - India

14

1

2

3

4

5

6

Prospective Basins/ Shales

• Cambay Basin– Cambay Shale (TOC ~ 2 -6 %)

• Gondwana (Damodar Valley)– Barren Measures (TOC ~ 3-4 %)

• KG & Cauvery (onland) Basins– KG: Bhuvanagri & Raghavpuram Shales

(TOC up to 1- 2.5%)– Cauvery: Andimadam & Sattapadi Shales

(TOC ~ 2-2.5%) 15

Prospective Basins/ Shales

• Assam Arakan Basin– Kopili (~1- 6%), Disang & Barail Coal Shale (~2-

10%) in Assam – Bokabil & Bhuban Shales in Tripura

• Indo Gangetic plain– Lower Vindhyan shales, particularly, Hinota and

Pulkova shales ( TOC up to 4%)

16

Issues - Shale Gas in India

• Large area under PEL/ML (2/3rd) – Prospective area have PEL/PML– Policy requirement for Fast track exploration– Simultaneous exploitation

• Environmental & Logistic– Water Requirement & Water Disposal– Land for drilling activity– Infrastructure congestion 17

Action taken & Way Forward - Shale Gas in India

• Formation of Multi Organizational Team (MOT)– DGH, ONGC, OIL & GAIL– Identification of prospective areas/Basins– Assimilation of Geo-scientific data

• Co-operationn with USA– Resource Assessment

– Policy formation – Indian delegation attended GSGI Conference

18

Action taken & Way Forward - Shale Gas in India

19

•Formulation of Shale Gas Policy• Under discussion

• First Shale Gas Round• End 2011

20

Shale Gas in India –Timelines

20

Sl. No.

Activity Date

1.

2.

3.

Identification of Shale Gas prospectivearea & Resource Assessment.

Framing of Policy on Shale Gas& Amendment to P&NG Rule

Co-operation with USA

Mid 2011

Mid 2011

End 2010

21

Sl. No.

Activity Date

4.

5.

Results of R&D projects in Damodar Valley by ONGC

Floating of First Round of Shale Gas Blocks

Mid 2011

End 2011

Shale Gas in India –Timelines

To sum up …….• Indian Basins appears prospective

• Identification of prospective areas & Resource Assessment in progress

• Policy formulation incorporating all relevant issues is in progress

• Offering of Blocks 201122

23