Market Development – Global
Alaya Legal presents its fourteenth issue of the Oil and Gas: Ezine to its Readers. Web-links are provided for ready access to certain reference material. The contents are presented with a view to allow comprehensive update in a systematic manner, from the legal perspective.
Reference Material
14th Report of the Standing committee on Petroleum and Natural Gas – Production of Coal Bed and Methane, August 201 may be accessed at http://164.100.47.193/lsscommittee/Petroleum_And_Natural_Gas/16_Petroleum_And_Natural_Gas_14.pdf
Ministry of Petroleum and Natural Gas has discontinued its ‘subsidized imported gas schemes’
Date: April 04, 2017
The Ministry of Petroleum and Natural Gas has discontinued its ‘subsidized imported gas schemes’. Under the said scheme imported gas were offered at subsidised rates to stranded and underutilised gas power projects. Reportedly, Ministry of Petroleum and Natural Gas may recommence this scheme depending upon requirement and necessity of the stakeholders.
Cairn India merges with Vedanta Limited
Date: April 11, 2017
The merger between Cairn India Limited, one of the largest independent oil and gas exploration and production companies in India, and Vedanta Limited was officiated pursuant to the effectiveness of the Scheme of Arrangement. Shares of Vedanta Limited are to be issued to the Shareholders of Cairn India, while no shares will be issued to Vedanta or any of its subsidiaries for their shareholding in Cairn India.
Reliance commences commercial production of coal bed methane in Sohagpur
Date: April 21, 2017
Reliance Industries Limited commenced commercial production from its Coal Bed Methane (CBM) block SP(West)–CBM–2001/1 from 24th March 2017 and is currently supplying CBM for commissioning the Shahdol Phulpur Pipeline (SHPPL). CBM is an environmentally friendly natural gas extracted from coal-bed and has become an important source of unconventional gas in many parts of the world. The production from these CBM fields will make RIL among the largest unconventional natural gas producers in India.
Hydrocarbon discoveries in the Moran Petroleum Mining Lease (PML) in the upper Assam Basin by OIL
Date: May 1, 2017
Oil India Limited through its exploratory efforts has made two Hydrocarbon Discoveries in the Moran Petroleum Mining Lease (PML) in the Upper Assam Basin in the month of April 2017 in the wells Borbhuibil-1 and Lakwagaon-1.
Schlumberger Launches New Fluid Mapping-While-Drilling Service
Date: May 3, 2017
Schlumberger launched the new SpectraSphere fluid mapping-while-drilling service at the 2017 Offshore Technology Conference. This technology is the industry’s first to provide downhole fluid composition during drilling with real-time pressure measurements-while-drilling. Applicable in a variety of environments, from exploration wells to highly deviated development wells, SpectraSphere lowers risks associated with fluid analysis and sampling operations while enhancing well placement, maximizing reservoir contact and ultimately boosting future production.
Adani commissions a 50 MW Solar Power plant in UP
Date: June 13, 2017
Adani Group commissioned a 50 MW solar power plant at Mahoa in Uttar Pradesh, set up under the National Solar Mission Scheme. With the commissioning of this plant, the Adani Group now operates solar power plants of an aggregate up to 838MW, spread across Gujarat, Tamil Nadu, Uttar Pradesh and Punjab.
IOC, BPC and HPC sign joint venture agreement for West Coast Refinery Project
Date: June 14, 2017
Three downstream PSU oil majors of India – Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation – join hands to build one of the world’s largest integrated Refinery-cum-Petrochemicals complexes in Ratnagiri district of Maharashtra. The 60 million metric tonnes per annum (MMTPA) west coast refinery-cum-petrochemicals complex is planned to be a green refinery comprising 50 state-of-the-art units designed to operate at the highest level of efficiency, and will be self-sufficient in power and utilities requirements, and is intended to set a benchmark in environment management.
BP and Reliance are set to expand partnership to develop deep-water gas fields
Date: June 15, 2017
BP and RIL are set to develop already-discovered deep-water gas fields – ‘R-Series’ deep water gas fields in Block KGD6 off the east coast of India, bringing new gas production for India. The R-Series (D34) project is a dry gas development in water-depths of more than 2,000 metres, approximately 70 kilometres offshore. These R-series fields will be developed as subsea tieback to the existing control and riser platform off Block KGD6 and this project is expected to produce up to 12 million cubic metres (425 million cubic feet) of gas a day, estimated to come on stream in 2020.
Cairn achieves first oil on the Kraken development in the North Sea
Date: June 26, 2017
Kraken development, North Sea is said to contain approximately 128 MMboe of gross 2P reserves, making it one of the largest new oil fields to come onstream in the North Sea. EnQuest PLZ, UK has an interest of 70.5% in Kraken, with its partner in the development Cairn Energy PLC having the balancing 29.5%.
ONGC Videsh to acquire 30% participating interest in Petroleum Exploration License 0037 Offshore Namibia
Date: July 4, 2017
ONGC Videsh enters into definitive binding agreements with Tullow Namibia Limited to acquire 30% participating interest in Namibia Petroleum Exploration License 0037 for Blocks 2112A, 2012B and 2113B. Tullow holds a 65% interest, with Pancontinental Namibia (Pty) Limited and Paragon Oil and Gas (Pty) Limited holding 30% and 5% respectively.
IndianOil signs a Statement of Intent to Construct World’s First Refinery Off Gas-to-Bioethanol Production Facility in India
Date: July 10, 2017
Indian Oil Corporation Limited (IndianOil) and LanzaTech have signed a Statement of Intent to construct the world’s first refinery off gas-to-bioethanol production facility in India. LanzaTech uses a biological catalyst to ferment waste gas emissions, producing 40–50 KMTA of ethanol per refinery while saving ~1 million tonnes of CO2 per annum, equivalent to removing 850,000 cars off the road in India.
Statoil and its partners start production on the Byrding field
Date: July 28, 2017
Statoil acquired Wintershall Norge’s 25% share in Byrding field in 2016, increasing its share from 45% to 70%. Production has started, with recoverable volumes estimated at approximately 11 million barrels of oil.
Feature: Coalbed Methane (CBM)
Coalbed Methane (CBM) is an “unconventional” natural gas present in coal. It is primarily methane with <2% ethane and CO2. Classified as sweet gas due to the absence of hydrogen sulfide.
Formation of CBM
CBM forms during coalification. Thermogenic methane forms at 157–221°C, deeper seams contain higher methane. Coal’s microporous structure allows storage of 6–7 times more gas than equivalent rock volume.
Extraction of CBM
CBM is held by water pressure; water must be pumped out first. Methods include pre-mining drainage (bore wells, hydrofracture, pumps) and post-mining drainage (angled boreholes with methane removal systems).
Environmental Issues
Methane is a potent greenhouse gas (21× CO2). Hydraulic fracturing and water pumping can deplete groundwater and contaminate it.
CBM in India
India has the fifth-largest coal reserves, suitable for CBM development (~2.6 trillion m³). CBM contributes to energy demand and alternative resources.
CBM Law and Policy
Relevant laws include: Oilfields Act 1948, Petroleum & Gas Rules 1959, NELP, HELP, and other government CBM policies.
CBM Policy 1997 & Early Monetization Policy 2017
1997: Blocks offered via competitive bidding for exploration/exploitation.
2017: April onwards, policies streamline CBM marketing, pricing freedom, and arm’s length sales. Reference: CBM Marketing Policy
Next Issue
December 2017
In-house Contributors
- Sakshi Bawa, Oil & Gas Team – Upstream
- Alak Desai, Oil & Gas Team – Downstream
Sources
- Norwegian Petroleum Directorate
- US Energy Information Administration
- International Energy Agency
- OPEC
- Oil and Gas Journal
- Official Oil & Gas Company Websites
- Petroleum and Natural Gas Regulatory Board
- Directorate General of Hydrocarbon
- Ministry of Petroleum and Natural Gas
Disclaimer
The information in this private circulation is not legal advice and should not be treated as such. The information is taken from public domain and is purely for private and non-commercial purposes. We do not represent that the information is correct, accurate, complete, or non-misleading. This disclaimer is governed by Indian law, with exclusive jurisdiction of Indian courts.
Doc ID: 14O&G 17
