ril cbm business journey so far. . . .experience & learning i/presentations/ajay... ·...
TRANSCRIPT
Block location
2
SP (W) SP (E)
Current portfolio includes only first CBM round blocks
Relinquished Blocks
BS(1)-CBM-2003/II
BS(2)-CBM-2003/II
SH(North)-CBM-2003/II
Area overview
• Blocks located in tribal notified districts of
Shahdol & Annupur
• ~ 300 sq. kms out of total block area of 995 sq.
kms is occupied by forest
• Total population of Shahdol is 1,064,989 with
~79% people living in rural area
• District has coal mining & few industries
Journey so far. . .!
2005
Exploration Phase 1 completed for SPW & SPE: >1500 core samples studies
2007
Sohagpur blocks 1. Exploration Phase 2 completed: Air drilling for first time in
India. 2. Spent US$ 116MM (~₹ 750 Crores) in the Exploration Period 3. 3.65 TCF of GIIP resources 4. Development Plan submitted & approved
2009
1. Grant of PML for Sohagpur blocks 2. Commencement of development activities
2015
1. LAQ of >300 well sites and ROU acquisition of >150 kms for infield pipelines 2. Drilled ~250 wells 3. 2 GGS & 4 WGS nearing completion 4. ~300 lkms of infield pipelines 5. Invested ~US$ 416MM (~ ₹2700 Crores) in Sohagpur blocks till date 6. 302 kms 16” Shahdol-Phulpur pipeline (SHPPL) nearing completion with investment of US$
183MM (~₹1100 Crores)
2008
1. EC granted for Sohagpur blocks 2. Relinquished 2 blocks (BS1 & BS2)
2003
Awarded 3 blocks (BS1, BS2 & SHN)
Largest surface footprint E&P project in India
2012
Relinquished SHN block
Awarded 2 Sohagpur blocks (SPW; SPE)
2001
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1US$ = ₹65
Experience & Learnings (1/2)
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• Located in tribal districts ~300sq.km forest
• Isolated & marginal fields - lacks even basic infrastructure leave alone gas marketing infrastructure & gas markets
• Shahdol is 30kms from SPW & 70 kms from SPE
• From Shahdol district - Nearest airport Jabalpur (220kms), nearest railway junction Katni (130kms), District hospital Shahdol (22kms)
Infrastructure
• Heterogeneous reservoirs coupled with large number of faults
• Low recoverable resources similar to marginal fields
• 100’s of wells to produce same quantity of gas as in a conventional gas field – RIL CBM needs >1000 wells
• Continued investment - 10-30% additional top-up wells every year
Sub-surface
uncertainty
CBM project holds attributes similar to marginal field development
Experience & Learnings (2/2)
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• Wells at every 800m - large land footprint/ acquisition
• Land ownership disputes - poor revenue records & multiple land owners
• RIL CBM project ~2000 acres across 1000 independent locations
• Long drawn RoU process - >15 months from application to acquisition
• Dealt with >9,000 land owners while only half of the total project requirement of LAQ/ RoU is acquired
LAQ/ROU
• Dealt with 20,000 land owners spread across 50 villages
• Hostile local environment & manhandling of workforce resulting in fear factor
• Persistent vandalism & obstruction to work – local disturbances, agitation, violence & theft etc.
• Multiple CSR initiatives – health, hygiene, education, livelihood support
Community issues
Land acquisition & community management key to CBM success
Major thrust on CSR activities
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Socio economic upliftment of the locals
• Health & Hygiene
o Two mobile medical units deployed in 44 villages benefiting >47,000 people
o Rs 89.60 lakhs donated for 64 toilets to Swachhta Kosh of Zila Shiksha Kendra, Shahdol
o Financial assistance to Government of Madhya Pradesh (GoMP) initiatives like “Lifeline Express
Health Camp” & “Nasha Mukti Abhiyan”.
• Education
o 29 education camps benefiting >2,300 students
o Distributed 50,000 notebooks among 11,000 students across 132 schools
o Established computer labs in 6 high schools benefitting around 550 students
o Conducted career counseling and vocational trainings sessions covering 700 students
• Livelihood & Agriculture support
o Mobile repairing & computer training center
o Distribution of 30 sewing machine among women
o Seed & fertilizer support provided to 500 farmers
Total CSR spend of ~US$ 2MM (~₹ 13 Crores)
Policy support to incentivize CBM (1/2)
• Operational freedom –
o CBM contract is revenue sharing with no cost recovery
o GoI is striving for improving ease of doing business
o Accordingly, certain procedures delaying projects like procurement procedures, budget approvals
and audit requirements should be removed.
o DGH/ GoI in any case is informed through various periodical reports on expenditure, production,
procurement, royalty, PLP, etc.
• Freedom for CBM gas marketing & pricing similar to marginal field policy and as promised in CBM Policy
• Provide relaxations for CBM Contracts similar to NELP and Pre-NELP PSCs policy of November 2014 -
o Grant excusable delays in all phase of the CBM Contract for circumstances beyond reasonable
control of Contractors
o Grant time extensions without setting off from subsequent phase
o Option to the Contractor for adjustment / waiver from MWP on account of excusable delays
• Unfinished MWP policy on dry hole basis, in consultation with stakeholders, to be formulated for CBM
Contracts similar to NELP Blocks
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Policy support to incentivize CBM (2/2)
• Framework for simultaneously coal mining and CBM (E&P) in the overlap areas. Priority should be given to
CBM as any coal mining without extraction of CBM will be a national loss and add to carbon emission.
• With no cost recovery, transfer of assets to GoI or any designated agency should be on commercial basis
• The application for forest diversion should be area wise rather than one application for the entire block
• PMP Act should also contain the provisions for acquiring RoU for laying pipelines for transporting natural
gas, including CBM, shale gas etc., including water and electric cables
• Standardizing format for Mining lease deed. The effective date of the commencement of Development
Phase should be from the date of receipt of Mining Lease from the State Government
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