OIL looking for partners to boost production from mature assets: Ops head

The company is planning to start drilling in newly acquired OALP blocks during the current financial year.

Oil India (OIL) is on the lookout for expert partners to boost production from its mature oil and gas fields. In an interview with Business Standard, OIL’s Director (Operations), Pankaj Kumar Goswami said that the company hopes that this experienced international or domestic partner will bring in technology optimised for the company’s assets. Goswami said that OIL also plans to begin drilling for hydrocarbons in the newly acquired Open Acreage Licencing Policy (OALP) blocks during the current financial year itself. Edited excerpts:

ONGC has been asked to rope in international partners to ramp up production from ageing fields. Does OIL have something in mind on those lines?

OIL is actively looking to rope in expert partners, national or international, for enhancement of production from its matured and ageing producing fields in India through an effective working model. OIL is looking for globally reputed E&P technology and service providers by inducting state-of-the-art and fit-for-purpose technology for enhancing production from OIL’s matured producing fields.

What is the plan for the newly acquired OALP blocks?

OIL has significantly expanded its domestic acreages by actively participating in various bid rounds under OALP. So far, OIL has been awarded a total of 25 blocks under OALP bidding Rounds. The company is the first operator to commence exploration activities in any OALP block in the country by starting 2D and 3D seismic acquisition. As of now, seismic data acquisition work has been completed in a majority of the OALP blocks. After detailed interpretation of the acquired data, OIL plans to kick start its drilling campaign in the OALP blocks towards the later part of FY22.

How is OIL assessing the Enhanced Oil Recovery (EOR) projects to boost production from existing assets?

The company has successfully executed Cyclic Steam Stimulation (CSS) Technology in its Baghewala oilfield in Rajasthan for the first time in the country. Through the use of this technology, we have been able to achieve more than 5 per cent incremental recovery of unconventional hydrocarbons (heavy oil, primarily used to provide feedstock for plastics, petrochemicals, other fuels and road surfacing), which was otherwise not recoverable by conventional methods.

What are OIL’s plans for future fuels such as hydrogen?

OIL, in order to strengthen its bouquet of clean energy offerings, has already initiated action to build a 100 kw ‘Green Hydrogen’ pilot plant in Jorhat, Assam. The above pilot plant will generate Green Hydrogen using AEM Technology, which is a first of its kind project in the country. This will enable OIL to build the basic foundation for establishing large scale commercial projects of Green Hydrogen in the future. Additionally, some collaborative study has also been taken up by OIL for biomass-based hydrogen production.

Are there any plans of further integrating with NRL?

OIL has already acquired a majority stake in NRL. OIL was exploring opportunities for vertical integration and diversification as a part of its corporate vision and strategy. In the coming days, we are looking for more synergy in our operations.

How has the Baghjan blowout changed OIL's processes? What are the checks and balances in place now?

Some of the improvements implemented post Baghjan include review of all standard operating procedures for more than 1000 activities by incorporating additional relevant clauses and revision of safety audit systems by introducing more stringent audits. Strengthening OIL’s crisis management team with addition of manpower and machinery, and restructuring of work-over operations to ensure single point responsibility has also been implemented. Additionally, number of mock drills conducted in presence of district administration, state disaster management authorities and neighbouring industries have been ramped up.

What are the key focus regions for OIL? Are there plans to expand into offshore production as well?

The key focus regions for OIL broadly include hydrocarbon exploration and production enhancement from existing fields by intensifying drilling activity in the North Eastern Region and for heavy oil in Rajasthan. OIL also focusses on hydrocarbon exploration in category–II and III basins viz. Mahanadi, Andaman and Kerala Konkan Basins. Further, extensive exploration in other OALP and DSF Blocks is another focus area of OIL for enhancing domestic oil and gas production. In offshore, OIL has been awarded three shallow offshore blocks (Two in Andamans and one in Kerala Konkan) in OALP bidding and the company is currently carrying out early exploration stage activities.