Going Offshore

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importing oil and gas, say experts, can be reduced if India’s hydrocarbon reserves are harnessed effectively.

That’s where the country’s deep waters become relevant, which, along with its shallow waters, comprise 56% of the total sedimentary basinal area available. The rest constitutes the onshore portion of the sedimentary basinal area available in India. Besides its bright prospects, there are certain other attributes attached to the country’s deep waters. “Competition is less in deep waters,” says D J Pandian, managing director, GSPC, which is looking to explore the deep-water eastern region of its Deendayal (KG-OSN-2001/3) block in the Krishna- Godavari basin.

This is the same block where the company first claimed to have made a huge shallow-water gas discovery in 2005. Offshore blocks, say experts, tend to be large in size, increasing the possibility of finding hydrocarbon reserves. Onshore blocks, in contrast, could be limited by their size, making it difficult for extensive exploration work to be carried out. There are environmental and logistical issues with onshore blocks, which is less with offshore blocks. “If an onshore block passes through a city, it could create problems. Even if it is near a city, it could create problems,” says Pandian.

Interestingly, the shift from onshore to offshore exploration globally has meant that it is not difficult for oil and gas companies in India to seek willing partners for their projects. Says Sharma of ONGC, “No company in India has the capability to undertake deep-water exploration on its own. We need partners.”

ONGC’s partners for deep-water exploration, for instance, have included BG, Cairn Energy, Petrobras and ENI. Reliance, on the other hand, tied up with Niko Resources when exploring and developing the D-6 block in the Krishna-Godavari basin. Niko, incidentally, has been a partner with Reliance in other blocks too. So has been UK-based Hardy Exploration. It is unclear who the companies will align with for blocks offered under the current round of NELP.

Norms have been tightened in this round making it mandatory for domestic players interested in deep-water exploration to tie up with international companies that have the required experience and expertise in that area. “Companies that get into joint ventures with experienced foreign firms will be preferred over those that do not have such tie-ups. Ten marks are assigned for this purpose. So, it becomes crucial,” says V K Sibal, director- general, DGH.