Business Partner’s Meet

14th December’ 2014

 Exploration Status
2D Seismic (LKM) 1,078,442
3D Seismic (SKM) 243,321
Exploratory Wells Drilled 5913
Hydrocarbon Bearing Wells 2635
Oil Wells 1956
Gas Wells 679
Success Ratio 45%
Number of Discoveries 529
Inplace HC Established 8140.77
(Mmtoe)
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XIIth PLAN TARGETS (2012-17)
XII Plan (2012-17) Targets and Achievements-(as on 01.10.2014)

XII PLAN (2012-17)

Physical Inputs
Actual
Target
(as on 01.10.14)

2D (LKM) 28170 4564

3D (SKM) 24163 21043
Exploratory
611 256
Wells

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 Opportunities for Collaboration

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 Mitigating
Drilling in frontierExploration Challenges
areas including deep and ultra deep water, in
challenging HP-HT regime and tight reservoirs.
 Seismic surveys in transition zones/ultra-shallow water, hilly
terrains, basalt covered sectors and logistically difficult areas.
 Exploration for unconventional resources such as shale gas/oil,
CBM, UCG and Gas hydrates
 Imaging of thin reservoirs
 De-risking of Deep Water Prospects

 Long Offset Processing & Interpretation

 Basement Exploration

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Risk Mitigation in Exploration & Exploitation

 Risk reduction in prospect maturation

 Reduction in finding cost

 Improved Recovery

 Exploitation from tight reservoirs

 Shale gas exploration and exploitation

 Monetization of Marginal Discoveries

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ONGC Steering Government Initiatives

 Appraisal of Unappraised Basins of India

 Resource Assessment of all the Sedimentary Basins of

India

 National Gas Hydrate Programme Expedition 2

WESTERN OFFSHORE BASIN 8

 Geophysical Services

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 Geophysical Services-Capabilities

Geophysical Services equipped with:

 20 Onland Seismic field crews for carrying out 2D/3D seismic
surveys to meet the exploration needs of different Basins.
 03 VSP crews to carryout Zero & Offset VSP surveys
 06 data Seismic data processing centres spread across India

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 Locations of field crews base

NS 02

ES 05

WS 07

CS 02

SS 04

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 Locations of Seismic data processing centres

GEOPIC,DDN

RCC, JRT

RCC,BRD

SPIC,Panvel
RCC,KOL

RCC,CHN

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 Activities of Geophysical Services

• Seismic surveys in Onland by departmental field parties

• Seismic surveys in Offshore by hiring of Vessels
• Induction of new Technology in Acquisition and Processing
• Procurement of Equipment and Hardware for Geophysical
Services
• Procurement of SPARES from OEM for R&M of equipment
• Procurement of various Software for Data Processing
• AMC of Hardware/Software

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 Workload Onshore

 On an average 500 LK of 2D and 1500 SKM of 3D seismic

in Onshore is targeted in a Financial Year
 ONGC deploys departmental seismic crews in different
Basins to complete the acquisition programme
 Geophysical Services hire service providers for carrying
out Shot hole drilling, Seismic jobs like cable lay out, camp
maintenance and other field operations
 Seismic data acquisition in Onland sectors are also carried
by contractual surveys on requirement basis
 New opportunities for 2D seismic survey in Onshore
sectors with projected volume of about 35000 LKM
during next five years

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 Workload in Offshore

 On an average 4,00,000 LKM of 2D/3D seismic data

acquisition is targeted in offshore in a Financial Year

 ONGC hires 3-4 vessels to complete the acquisition

programme in Offshore

 ONGC provides opportunities for Vendors having best in

industry seismic acquisition technologies

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Recent initiatives -Geophysical Services
 New Technologies in seismic data acquisition like-
Over & Under Technology, Sea Bottom Nodes (SBN),
Q Marine, inducted to improve seismic imaging.
 Field Processing Units (FPU) are deployed for onsite
basic processing and quality check.
 Integrated API Project for assimilating 3D-3C
Technology
 Long offset 2D data for imaging below basalt in
Kerala Konkan and Kutch offshore. This has been done
with limited success
 Broadband 3D survey in Mumbai offshore

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Recent initiatives -Geophysical Services

 Collaborative Business Model with Globally reputed

Service providers in Seismic data processing
 Strategic partnership with Globally reputed service
providers in Offshore Seismic Surveys
 Replacement plan of vintage Seismic data acquisition
systems and Hardware for processing centres

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Strategic Initiatives-Geophysical Services
 Procurement of new seismic survey vessel for reduced turn
around time. Process already underway
 Streamer mode survey in ultra shallow water area (9m and
above) wherever feasible to reduce acquisition time and save
cost.
 Identification of technology gap and acquisition
 Acquire services of Domain experts in critical areas
(Thin reservoirs, Basement exploration)

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Issues with vendors -Geophysical Services

 Limited participation by vendors/Cartel formation for

Shot-hole drilling and Seismic Job Services for
departmental field parties
 Limited participation of Service providers for hiring of
seismic survey vessels in Offshore
 Representations from vendors on trivial/insubstantial
grounds to derail/ delay the tender process

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Issues with vendors -Geophysical Services

 Rates quoted by vendors not commensurate with

market trends in Onland and Offshore tenders
 Representation to modify the Technical Specifications
 Non submission of requisite documents as per the
tender requirements leading to delay in tender process

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Services Outsourced-Geophysical Services
 Seismic Data Acquisition
 3D – Land (need based)
 3D-Marine
 Seismic Data Processing
 Special Processing Techniques – PSTM / PSDM, AVO, Inversion in
priority areas
 AMC for Hardware & Software
 Seismic Data Interpretation
 Special Interpretation projects for prospect evaluation by domain
experts

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Scope of Work: Geophysical Services
 Requirement of Seismic Surveys: 2D & 3D
 Volume based survey – Land and Marine
 Charter hire of vessels for long term for offshore
 OBC & Transition zone surveys (need based)
 Multi Azimuth and wide Azimuth surveys (need based)
 3D-3C & 4D
 Likely opportunities for 2D survey in Onland sectors with projected vol of
about 35000 LKM
 Induction of proven Technologies (need based)
 Seismic : High Density single sensor surveys, Multi-Component, 4C- 4D, 4D,
EM Pulse Seismic Source, Passive Seismic
 Non – seismic methods : CSEM, MTEM, AEM, Airborne GM, FTG and HRM
 Processing of long offset and multi-component data
 Processing of MAZ and WAZ data
 Full corporatization of interpretation S/W

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Issues with Suppliers/Service Providers
 Timely mobilization of seismic vessels
 Delay in supplying proprietary stores and spare items
 Acceptance of ONGC’s standard terms & conditions for service
contracts specifically in the clauses like arbitration, jurisdiction law,
patent indemnity, interpretation liability and other related techno-
commercial and legal
 Monopolistic attitude in PAC & nomination cases
 Limited no. of reputed suppliers of logging equipment and service
providers are available at the international level. This limits the
competition.
 All the reputed logging vendors are not having all the services/
technology. Vendors do not sell full or some of the technologies.

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 Logging Services

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Inhouse Capabilities- Logging Services

 No. of Logging Units

 Onshore Locations: 24
 Offshore Locations: 04
 Logging Mast for rig less jobs are available at most of land
locations
 Log data processing and Interpretation Services are mainly
carried out in-house by ONGC.
 Service providers for life time AMC on departmental
Logging Units/ Tools
 M/s Baker Hughes: Offshore/ Onshore (14 Units)
 M/s Halliburton: Onshore (10 Units)
 M/s Weatherford: Onshore (4 Units)

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Distribution of Hired Services

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Hired Services

 AMC for Software for Work Stations are through Corporate

Licensing
 AMC for Hardware for Work Stations are hired through open
tender.
 High End Processing of image and special logs is sometimes
carried out through contractors.

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Equipment/ Materials Suppliers for Departmental Services

 Logging Units are supplied by M/S Halliburton and M/S Baker

Hughes
 Logging Tools are supplied by M/S Halliburton, M/S Baker Hughes,
M/S Sondex (CH-PL Tools)
 Perforation/ Cutters material is mainly supplied by M/s Owen Oil
Tools-USA, M/s Halliburton Export Inc.-USA and M/s Dyna
Energetics-Germany.
 Logging Cables are mainly supplied by M/s Rochester , & M/s
Camesa.
 Tools like GR-NN-CCL, FPI etc are procured through Open
Global Tender. Prominent suppliers / bidders are M/s Hotwell, M/s
Probe Technologies, M/s Titan & M/s Sondex.
 Spares for maintenance of equipment/ tools are procured from
OEM/OES
Service providers for contractual services
 Wire Line Logging – Perforation Services
• M/s SASL
• M/s HLS Asia
 TCP-DST Services
• M/s SASL
• M/s HLS Asia
 Well Shuttle Service
• M/s Weatherford
 LWD
• M/s SASL
• M/s Baker Hughes
 MLU
• M/s OFI, Mumbai (Onshore & Offshore)
• M/s Jindal, Mumbai (Onshore)
• M/s Cyratron (Onshore)
 AMC
• M/s Baker : Logging Units (Offshore)
• M/s Schlumberger Solutions Pvt Ltd: Geoframe Software
• M/s Prime source, Singapore: Work Station Hardware

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Strategic Initiatives- Logging Services
 Induction of State-of-the-art equipment with departmental
units.
 Judicious mix of departmental and contractual logging units to
cater Basic, hi-tech and proprietary services
 In house data processing with workstation at all logging work
centers for Formation Evaluation.
 Advanced logging Institute CEWELL at Vadodara for R&D and
field specific studies across various Assets and Basins
 Establishment of NMR and Core lab at CEWELL ,Vadodara
 Revisit of old wells for bypassed hydrocarbons
 Production enhancement through Rigless PL/ remedial
measures

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Scope of Work-Logging Services

Hiring of Wire line Logging, perforation and TCP-DST Services

after expiry of on-going contracts:
 Running contracts are valid up to May/June 2016.
 Tender for services beyond May/June 2016 (for 3 years) is
likely to be floated in April 2015.
 Equipment/ Services to be hired for onshore/ offshore:
 68 Wire line Logging units
 18 TCP-DST containers
 2 Well Shuttles
Scope of Work-Logging Services

Replacement / upgradation of Logging Units of 2006 vintage with

AMC:
 Number of Logging Units: 19 (9 Baker Hughes+ 10 Halliburton)
Procurement of Perforation material:
 Tender for procurement of perforation material for the year
2015-16 to be floated shortly.
Procurement of Logging Cables:
 Tender floated for 13 drums of logging cables. Tender sale up to
14.12.2014
 Issues with Suppliers/Service Providers
 Vendors are expected to take Pre-Bid Conferences seriously and
bring out all issues during pre bids.
 Vendors are expected to provide all the required information and
submit fully filled techno-commercial matrix along with
documents/ literature at the time of bid submission to avoid delay
in finalization of the bid.

 Venders should ensure that they satisfy eligibility criterion both

technical and commercial as per ONGC requirement. The
specification and scope of work is to be followed meticulously.

 Vendors are expected to supply the materials including OEM/ OES

items in time.
 The price variation/escalations in bids should be rational, justifiable
and conform to Global trends.
 Institutes

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New Technologies required-GEOPIC
SOFTWARE
 Wide Aperture Seismic Processing (WASP)
 WAVE VISTA a wave equation migration technique
operating in the shot domain
 Cross well seismic for Reservoir modeling and to detect
by-pass Oil
 Auto picking tool for interval velocity model refinement
thru grid tomography
 Acoustic waveform inversion based static solution
 3D Surface Related Multiple Elimination (SRME)
 5D data regularization
 3D Reverse Time Migration (RTM)

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New Technologies required-GEOPIC
HARDWARE
 HPC clusters with FDR infiniband with

 56 Giga bits / sec interconnect

 600 Terabytes usable storage plus 25 Terabytes SSD

 50 Giga bytes / sec thru put

 250 compute nodes with Haswell technology

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New Technologies required-GEOPIC

Technological solutions for

• Image enhancement in thrust fold belt area

• Imaging sub-trappean sediments

• Delineation of the sandstone pay in the imbedded sand-

shale-coal sequences

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Other Services Outsourced/Planned for Outsourcing

 AMC services for H/W and SW (GEOPIC, IRS, KDMIPE,

Basins etc)
 Consultancy and Work Association
 Well log evaluation for Shale Gas
 Shale gas prospectivity in different basins
 Coring for Shale Gas
 Core analysis for shale Gas
 Resource assessment for Hydrocarbons in Sedimentary
Basins of India
 Specialized & focused training
 Soil Coring
 Geo-Mechanical Surveys
 Services for CBM Project
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General Issues with Suppliers/Service Providers

 Long Lead time for PAC/OEM supply

 Equipments are procured on ten years life cycle basis.
ONGC needs commitment of support i.e. supply of spares
and replacement/additional tools from vendors at
reasonable prices. ONGC is facing difficulty in this respect.
 Support for providing stores and spare items
 Rates quoted for proprietary items
 Acceptance of provisions of Integrity Pact
 Assistance in formulation of corporate policy with particular
emphasis on exploration domain activities.
 Transfer of expertise and technical know how developed by
the business partners while providing services to ONGC
and also joint development agreement where ever
applicable.
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General Expectations from Vendors

 Cooperation/ Collaboration for addressing the E&P

opportunities & challenges
 Building effective partnership for the long term mutual
benefits
 Balance of commitment and competition
 Negotiating a win-win agreement
 Coming together for value creation
 Compliance of Quality Parameters/ statutory requirements
 Adherence to timelines
 Conformance to fair play and business ethics

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