"ONGC DETERMINED TO INCREASE PRODUCTION OVER NEXT THREE YEARS WITH SIGNIFICANT UPSWING IN PERFORMANCE": DIRECTOR OFFSHORE, ONGC.
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July 2015
INSIDE:
GAIL (INDIA) STEERS INDIA’S MIDSTREAM AND GAS SUPPLY JUGGERNAUT
RUSSIA’S ROSNEFT SIGNS PRELIMINARY DEAL TO BUY UP TO 49% STAKE INTO ESSAR’S
VADINAR REFINERY
POSSIBLE WAY FORWARD FOR UPSTREAM DRILLING & OTHER E & P OPERATIONS
CAIRN - VEDANTA MERGER USHERED A NEW CHAPTER IN INDIA OIL AND GAS
OIL TAKES STEP TOWARDS SUSTAINABLE ENERGY SOLUTIONS
“ONGC DETERMINED TO INCREASE PRODUCTION OVER
NEXT THREE YEARS WITH SIGNIFICANT UPSWING IN
PERFORMANCE”: DIRECTOR OFFSHORE, ONGC.
The year FY’15 was important for ONGC. The year through its domestic and overseas productions 15 of our major producing field that contributes
has seen reversal of production decline trend af- contributes to around 60% of Country’s total Oil to around 70% of our domestic production is ma-
ter years of sustained production volume: a feat production (22.264 MMT out of 37.460 MMT) and tured and agile having vintage of 30-60 years,
for which ONGC has been striving hard since a 65.5% of total Gas production (22.022 BCM out we were aware that improving production vol-
decade back. ONGC’s story stands remarkable of 33.66 BCM) volumes. So whatever addition- umes from fields of that vintage is not an easy
in the backdrop of the falling global oil prices in al ONGC produces, it augurs well for the Indian task requiring huge investments in technologies.
years gone-by and the commensurate effect it Economy given the fact that India is hugely de- Through 26 IOR/EOR projects with an invest-
has on the activities & resources of E&P business. pendent on imports to meet its energy require- ment of over Rs. 55,000 crore, ONGC has put the
ment and has to fork out significant amount in big bet on brown field management efforts. With
On year to year basis, production of crude oil in- paying import bills. In FY’15, country has to fork close to 35 % of its overall domestic crude pro-
creased marginally from 22.25 MMT in FY’14 to out the net import bill for crude oil to the tune of duction coming from the technology-intensive
22.26 MMT in FY’15. What gave ONGC bigger Rs 6,873.50 billion against the net import volume IOR/EOR schemes and cumulative incremental
relief is that the high hope pinned on capital in- of 146 MMT of total import of crude and petrole- supply of around 95 MMT so far from these pro-
tensive offshore projects has paid them good um products. The similar or rather more import jects, that thrust on those schemes stands vindi-
dividend when offshore production has shown bills were there in the past as well. So it is there- cated.
increase of 14.6% on year to year (from 281 kbpd fore quite natural for the country when they are
in April’14 to 322 kbpd in March’15) basis help- looking to ONGC to save on those precious im- The other important contributing factor for this
ing ONGC in offsetting the decline in production port bills by producing whatever best they can. turnaround was coming on the stream few de-
from matured and agile on-land fields and hence, Talking to Oil Asia, Director Offshore told that velopment projects on the back of application of
in sustaining its overall production. “ A sure sign this reversal of production trend has largely been some in-house innovations and new technologies.
towards better times ahead was the reversal of possible because of the prudent management He narrated few stories for this year’s turnaround.
continuous decline in production of crude oil of brownfield. He said that ONGC’s performance He said, by application of Proppant Hydro-frac-
which was there over last seven years”…told by in brown field management through IOR/EOR turing of Basal Clastic and horizontal subsea
Director Offshore to a correspondent from Oil efforts has been peer-leading on a global scale completion in four wells in the “cavern area” di-
Asia in an Interview in early June this year. having stemmed the natural decline to within a viding Mumbai High North & Mumbai High South
range of 2 to 3 % from the natural decline figure field, ONGC have been able to add a production
The feat is important in the backdrop of ONGC’s of 6-7% every year which fields of such vintage volume of around 4000 barrels of oil per day in
role as anchor of India’s energy security. ONGC has witnessed worldwide. With a portfolio where its kitty. Similarly, by deploying FPSO in Cluster-7
PAGE
2
fields, ONGC have been able to increase produc- in production from the next three years, largely management efforts in a manner that remains
tion to the tune of 17000 bopd from the level due to contributions from its western offshore cost-effective and deliver big on results. Some
6000 bopd which the field was producing in ab- fields”. Elaborating it further, he said that some good volumes will still come from those brown-
sence of FPSO by taking production diversions to big numbers are lined up from offshore fields and field management endeavours.
ICP-Heera Trunk line which was affecting optimal ONGC will be able to meet these numbers sup-
production on account of high back-pressure. ported by steady productions from its onshore This beside, some big tickets oil and gas pro-
Likewise, by applying a new stimulation tech- fields. He said that a number of new fields that jects having significant production volumes like
nique in the wells of NBP (D-1) field, production has come on stream and added significant vol- “Re-development of Heera & South Heera Phase-
has been increased from 16000 barrels per day ume this year. Fields like B22, C-24, B193, D-1, II”, “Development of C-26 Cluster Fields” , “De-
to 30,000 barrels per day. ESPs in the wells of SB-14, and Cluster-7 have just started the pro- velopment of WO-16 Cluster Fields”, “Integrated
NBP field were not performing optimally because duction and production from these fields will be Development of B-127 Cluster Fields”, “Develop-
of poor-influx and the stimulation carried out to ramped up further as per their production life. He ment of Western Periphery of MH South Field”,
improve influx was turning quite tedious. So field said that ONGC has been aggressively pursuing “Improved Oil Recovery of B-173A Field” and
engineers decided to stimulate the wells before the monetisation of marginal fields and develop- “Development Plan for lower pays in NBP-14
lowering the ESP and this has helped in improv- ment of new fields. ONGC took up 15 projects for block of NBP field (D-1)” are in advance stages
ing production. development of 39 new/ marginal fields with an of execution and are likely to completed in FY’16
adding to the production volume. Adding to that
big hope for future is the kick-starting of some
new projects like “Additional Development of Va-
sai East Field”, “Redevelopment of Mumbai High
North Phase-III”, “Redevelopment of Mumbai
High South Phase-III”, “Development of Daman”
and “Integrated Development of Mukta, Bassien
and Panna Formations in Bassien Field” that has
been approved last year with a cumulative invest-
ment of around Rs. 25000 crore. On the back of
these projects, ONGC is quite hopeful of seeing
a sustained production profile not only in next
three years but in future as well. Director offshore
also sounded quite optimistic at Eastern Offshore
front and said that the highly anticipated Kr-
ishna-Godavari (KG) basin block would start pro-
ducing from KG-D5 or KG-DWN 98/2 from fiscal
2019, helping to sustain the rise in production”
He stated that beyond immediate future as well,
things are brighter for ONGC. With 22 discoveries
made during FY’15 and sustaining RRR at over 1
for the last 9 years consecutively with the figure
for FY’15 standing at 1.38 is a healthy pointer to
the continued performance of our exploratory ef-
forts. ONGC is quite aggressively pursuing mone-
tising the huge reserves which it has in her kitty. In
FY’15 itself, ONGC has moved ahead successfully
in monetising reserves and started production in
investment of Rs. 386,024 million. Out of these 4 on-land NELP blocks :Vadatal#1, West Patan#3,
Besides this, Director Offshore attributed that 15 projects, 11 projects have already been com- Karannagar#1, and Nadiad #1 in Gujarat. ONGC is
these success could not have been possible pleted. These new/ marginal fields have yielded pursuing many a moves to double its production
without the confidence and can-do-it attitude very positive results and contributed close to 14% by 2030 by resorting to many a production im-
amongst workforce; multi-disciplinary approach; of domestic crude oil and 15% of gas output in provement plans aimed at 4-5% growth per an-
their innovative thinking ways; thinking out of FY’15. Their contribution is expected to go up fur- num against the present growth rate of 2% per
box; comprehensive planning; precise execution ther during the fiscal FY’16, as current production annum. With this big hope, he assured our cor-
and managing better contracting & business re- streams peak and new projects get completed. respondent that ONGC is quite aware of its re-
lationships with contractors & service providers. sponsibility thrust on her shoulder by the nation
Plus with almost a decade and half of experienc- and is pursuing a number of projects, plans and
On a query, whether the momentum will contin- es in exploiting matured fields through IOR/EOR perspectives to deliver some big results synchro-
ue, he said that ONGC is quite hopeful of much schemes and with encouraging results, ONGC has nizing with our Prime Minister’s resolve to reduce
improved production volumes in coming years as gathered significant expertise and technological dependence on energy imports by 10 percent by
well. “Company will continue to see an increase outlook to pursue the next round of brown-field 2022.
PAGE
3
Enterprise risk
Value creation in the Enterprise Risk Management process with Management Information Systems
AUTHOR: Gisle Bråstein, Product Manager for Synergi Life, DNV GL DATE: April 2014
When working in a global business environment used for accommodating enterprise, project, and general improvement proposals. Aligning
there is a great awareness of risk, yet most and process and asset risk assessments (e.g. information from several risk information
companies lack a complete picture of their ERA, PHA, HAZOP, etc.). It should support the sources to create a balanced view of leading
enterprise risk portfolio. Stakeholders demand identification and handling of at least strategic, and lagging indicators.
corporate accountability and transparency, and operational, reporting, compliance and hazard • Support risk aggregation. Provide a holistic
globalization calls for businesses to address risk risks. understanding of the overall risk level on
quickly and demonstrate their risk performance • Allow corporations to define acceptance any cross-section of the company or as an
almost real time. Corporations call for state- criteria, risk performance indicators and overall measure. It should present normalised
of-the-art technology and software support to targets against entities, divisions and business trends and frequencies for internal and
respond to these requirements. units and across locations, processes and sites. external benchmarking of all risk-related key
From a management perspective the amount
of information gathered from the enterprise risk
management process should bring knowledge
to support the short and long-term planning
and decision-making. Reliable and credible
data from the risk sources aggregated to the
levels of decision-making is a key success factor.
When reflecting the holistic risk management
approach in such an MIS a typical dashboard
can easily provide a full overview of the planning
and prevention with tracking and correction. See
figure 1.
A state-of-the-art Management Information
System should support the ERM process with at
least the following elements:
• Allow for a top-down planning and approval
process for risk assessments, audits and
inspections and a bottom up handling and
verification processfor risks, audit findings,
events, incidents and non-conformances.
• Contribute to the removal of information
silos between different disciplines of risk
management, governance and compliance.
Hence it should be module-based to meet the
demands from both reactive indicators and
proactive initiatives. It should include modules
for incident and event management; quality
management; environmental management;
risk management; insurance, claims and fines
management; HSEQ performance tracking;
and audit, inspection and assessment
management. The modules should have the
ability to be used as stand-alone solutions or
in combination to fit each client and individual
user needs. It is the combinations of several
modules that contribute to establish a holistic
information management system for the ERM
process.
• Facilitate the four steps and overall process to
Identify, Measure, Monitor and Control risks in
an integrated workflow. Also to secure risks and events to be identified performance indicators (KPI), i.e. risk exposure,
Allow corporations to plan and perform against sites, assets, business units, systems event categories, loss numbers etc.
risk assessments in the context of the and work processes. • Support a uniform assessment and evaluation
corporate strategy, control documents and • Link risks and combine information from several process with standardised models for root
risk management profile. As several risk sources not limited to risk assessments, but cause analysis, risk evaluation and action
identification methods and tools are in use, the including internal audits, events, inspections, management and relevant external compliance
MIS should reflect the ones most commonly non-conformance, claims, risk observations requirements. Contribute to improve efficiency
of the complete risk management process by implementing cross- reached for the individual records. It also triggers experience transfers,
sectoral and multi-functional actions. and verifies that risk levels, classifications and root causes are properly
• Provide an integrated workflow to accommodate and simulate the full identified according to local requirements.
risk “life cycle” from identification, to analysis of causes, analysis of initial • Build on a state-of-the-art technological platform and facilitate ease of
risk levels, identification and management of action plans, measurement integration with other systems such as ERP, etc.
and documentation of residual risk. Include workflow criteria and • Excellent usability of user interface including native language support,
automated, fully configured database instructions connected to various reduced user barriers, local time zones, simplified interfaces for basic
workflow status points. The processing criteria will instruct the database reporting and action management.
tool what to check for, verify and/or execute when new status points are
Using an MIS as a tool for Enterprise Risk Management including identi-
fication, measurements, monitoring and controlling of risk reduces costs,
facilitates verification, enhances transparency and makes internal control
and reporting easier, more accurate and timely.
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PAGE
4
RUSSIA’S ROSNEFT SIGNS said in a statement Wednesday.
Rosneft said that Essar’s fuel retail outlets in India would rise to 5,000 over
PRELIMINARY DEAL TO BUY UP the next two years from 1,600 right now. The statement said that the two
companies have signed a term sheet for the deal which is subject to further
TO 49% STAKE INTO ESSAR’S corporate approvals.
VADINAR REFINERY Commenting on the signing, Rosneft’s head Igor Sechin said: “The reached
agreements are of a strategic nature. The performance of the terms
of the signed documents will have a substantial impact on the scale
of economical cooperation between Russia and India. The goods
turnover between two countries will grow more than 50%. The new
formula of integrated cooperation opens wide perspectives for the
development of dialogue, both in specialised and related areas.”
Rosneft had signed an MoU for a multi-year crude supply deal with Essar
Oil during Russian President Vladimir Putin’s visit to India last December.
This was to secure and diversify supply lines for Essar’s 400,000 barrels per
day (bpd) Vadinar refinery. Rosneft has traditionally been partner to state-
run ONGC in various hydrocarbon projects in Russia. Subsequently, steel-
to-BPO conglomerate Essar pitched a deeper equity alliance to Rosneft,
offering a strategic stake in its oil and gas arm.
Essar Oil buys crude from various sources and the deal with Rosneft will
help it reduce dependence on Iranian supply. To cope with the collapse in
crude prices, Rosneft, like most industry peers, has cut capex plan for this
year by 30% from 2014’s estimated $14-$16 billion. Moreover, conflicts in
Ukraine and international sanctions have resulted in it getting locked out of
global capital markets.
Rosneft, which has more shortterm debt than any other corporate borrower
in Russia, thanks to its $55-billion deal to buy out BP from its fractious joint
Billionaire brothers Shashi and Ravi Ruia have agreed to sell a 49% stake venture TNK-BP in 2013, has had to refinance $14 billion of its debt in recent
in Essar Oil to Russian energy major OAO Rosneft, providing the Indian months as $21 billion of mostly foreign-currency debt matured before April.
company an assured supply of crude while its Russian counterpart obtains
a foothold in Asia’s third largest economy. But the company also has more than $20 billion of available cash as well
as back up credit lines of about $6 billion to help cope with any potential
The companies did not disclose the deal amount but it is expected to value crisis. It generated revenues of more than $146 billion in 2014 and earnings
Essar Oil at $7-$8 billion (Rs 42,000-Rs 48,000 crore). The negotiations before interest, tax, depreciation and amortisation (EBITDA) of more than
between Rosneft and Essar were first reported by ET in its March 25 edition. $28 billion.
Rosneft and Essar also signed a final agreement for supply of 100 million
tonnes of crude oil over a period of 10 years for the Vadinar refinery. An In 2014-15, Essar Oil’s gross revenue stood at Rs 92,983 crore, which was 13%
initial crude supply deal was signed in December 2014. “The perspective lower than the previous year. This was primarily due to the lower price of
Rosneft participation in the refinery’s equity capital will allow Rosneft to crude oil, which fell by about 50% during the year. Profit after tax for 2014-
obtain a share in one of the biggest refineries in India and the Asia-Pacific 15 grew 12 times to Rs 1,521 crore from Rs 126 crore a year ago. Essar Oil
region. The refining capacity of the Vadinar refinery is 20 million tonnes per runs India’s second largest private oil refinery at Vadinar. It has a portfolio
annum. The parties intend to significantly increase the refinery’s capacity, of onshore and offshore oil and gas blocks with about 1.7 billion barrels of
which will bring the capacity level of 45 mtpa by the year 2020,” Rosneft oil equivalent in reserves and resources.
GAIL (INDIA) STEERS INDIA’S MIDSTREAM AND ‘Gas-Processing, Distribution and Marketing’
Sector for the Dun & Bradstreet Corporate
GAS SUPPLY JUGGERNAUT Awards 2014
• Dabhol-Bengaluru Pipeline Project awarded as
Premier Project in large construction category at
Platts Global Energy Awards 2013
• GAIL C&MD, Shri B C Tripathi, conferred the
prestigious ‘Best LNG Executive Global Award’
for 2013 at CWC’s 14th World LNG Summit being
held at Paris
• GAIL receives Oil & Gas Pipeline Transportation
Company of the year, besides Project Management
(Rs 500 crore to Rs 2,000 crore category) of the
year and the Environmental Sustainability of the
year category in the Petrofed Awards 2012
• Platts Global Energy Award, 2011 for ‘World’s
No. 1 Company in Downstream Operations
• Prime Ministers’ Excellence Award for the
year 2009-10 for Best Performing CPSE in the
Petroleum Sector consecutively for second year
• 11th ICSI National Award for Excellence in
Corporate Governance, 2011
• Corporate Governance Award 2012 by Indian
India’s gas supply story is almost synonymous and Polymer Limited (BCPL) which is setting up Chamber of Commerce
with GAIL. At a time when the emphasis is on a 280,000 TPA polymer plant in Assam. Further, • Commendation Certificate from SCOPE for
cleaner energy options and the demand for gas GAIL is a co-promoter with 15.5% equity stake Corporate Governance in 2010-11
is peaking in the country, GAIL (India) continues in ONGC Petro-additions Limited (OPaL) which • Commendation Certificate from PetroFed for
to spearhead its effort in that direction. Also, the is implementing a green field petrochemical being leading transporter of Oil & Gas in 2011
gas transportation pipeline network which is vital complex of 1.1 MMTPA Ethylene capacity at Dahej • AIMA Managing India Awards 2011 for
to the sector owes a lot to GAIL. in the state of Gujarat. GAIL has 32.86% stake Outstanding PSU of the Year.
along with NTPC as equal partner in JV company, • Kaizen Warrior Award for Most Efficient
GAIL, after having started as a natural gas RGPPL at Dabhol which is house to largest gas Navratna PSU, 2011
transmission company during the late eighties, based power generation facility and an LNG • No.1 gas utility company in Asia and No.2 gas
has grown organically by building large network regasification terminal operated by GAIL. In utility company globally, ‘PLATTS Top 250’, 2010.
of Natural Gas Pipelines covering more than 2013, GAIL commissioned 5 MMTPA Dabhol LNG • Petroleum Federation of India (PETROFED)
10900 Km with a capacity of around 200 terminal and will remain its commercial operator Awards 2010 for Oil & Gas Marketing Company
MMSCMD; two LPG Pipelines covering 2040 Km for 25 years. of the Year.
with a capacity of 3.8 MMTPA of LPG; seven gas • ICSI National Award for Excellence in Corporate
processing plants for production of LPG and GAIL, over the years, has won many Governance, 2010
other Liquid Hydrocarbons, with a production prestigious awards and accolades to its • Prime Minister’s “MoU Excellence Award” for
capacity of 1.4 MMTPA; and a gas based integrated name as is evident from the details as under: the year 2008-09
Petrochemical plant of 410,000 TPA polymer • GAIL adjudged ‘Best Performing Company’ • Petroleum Federation of India (PETROFED)
capacity which is further being expanded to a (Maharatna category) at the India Today PSU Awards 2008 for Oil & Gas Marketing Company
capacity of 900,000 TPA. The Company also Awards 2014 of the Year
has 70% equity share in Brahmaputra Cracker • GAIL declared the top Indian company in the
PAGE
5
ESSAR OIL UK AGREES
NEW LONG TERM
WORKING CAPITAL
FUNDING FACILITIES
London, June 23 2015: Essar Oil UK, which owns In addition, a previous invoice discounting partners.
and operates the Stanlow Refinery in Ellesmere receivables financing arrangement has been We can now look ahead with renewed confidence.
Port, today announced it had agreed new long replaced with a new three year £300m ($475m Stanlow is running very successfully and
term working capital facilities, having entered into equiv.) Receivables Securitisation arranged by
arrangements for both Inventory Monetisation Lloyds Bank Plc. competitively as a single train highly optimised
and Receivables Securitisation. refinery, while ongoing projects to further improve
Essar Oil UK Chief Finance Officer, Sampath margins will see us making further significant
The Inventory Monetisation arrangement with J. P, commented: “I’m delighted we have the investment to unlock even greater value.”
Aron & Company covers the supply of crude oil funding in place to plan for the long term
to Stanlow and replaces a similar agreement with growth of our business. The arrangements Ends
Barclays Bank Plc, who are exiting the global give both operational and planning flexibility About Essar Oil UK
commodities business. Essar Oil UK is a subsidiary of Essar Energy Limited,
and will help us continue to deliver an
which owns and operates the Stanlow Refinery
Under the new five year deal, J. Aron will provide excellent level of service to our customers.” located on the south side of the Mersey Estuary
inventory management services in relation to near Liverpool. Stanlow produces approximately
approximately 5.8 million barrels of crude oil and Volker Schultz, Essar Oil UK Chief Executive said: 15% of UK transport fuels, including three billion
petroleum products at Stanlow. Management of “I’d like to thank Barclays and ICICI for their litres of petrol, 3.5 billion litres of diesel and two
customer relationships and of product sales support over the last few years and warmly billion litres of jet fuel per year.
processes remain with Essar Oil UK. welcome J. Aron and Lloyds as our new banking
Head: AFCONS creates record in Indian Oil & Gas structure. The entire operation was completed in Subrahmanian said.
industry 34hrs from preparations to complete installation. The HRD Process Platform installation will inspire
Strap: The leader in a consortium, comprising It was a phenomenal event where a structure of prospective contractors to use the float-over
Technip, India/France & THHE, Malaysia, becomes 8,300 MT got installed in a single attempt. technology in future. Using float-over not only
first Indian EPC contractor to install a process AFCONS could pull it off with the help of saves time, but also cuts down the risk in offshore
platform using float-over technology on time Dockwise team, who were subcontractors and operations and it is environment friendly.
Mumbai: AFCONS Infrastructure Limited owners of the float-over barge. They carried out Elaborating on the advantages of float-over
(AFCONS) achieved a new milestone in January the ballast operation for the complete float-over methodology, AFCONS Oil & Gas director, PK
this year by executing a float-over installation of in addition to jack operation. Johri said: “The advantage of float-over is it
the HRD Process Platform, for ONGC, in the west Notably, this was the second back-to-back reduces offshore hook-up work and mobilisation
coast of India. Process Platform project that AFCONS did for of barges. The HRD topside was sailed out with
Float-over operation is a new concept which is ONGC. Earlier, AFCONS had installed the ICP-R 99.5% onshore fabrication completion. The float-
being recently used in ONGC projects wherein Process Platform in 2012. over helped in a precise and safe installation of the
an offshore vessel carrying the heavy topside Reminiscing the journey, AFCONS Vice Chairman topside, which is a landmark in Indian offshore.”
is made to enter into the slot created between & Managing Director, K Subrahmanian, said: “You AFCONS is known for adopting innovative and
jacket legs and stab the complete topside on the don’t enter an offshore process platform in your new technologies. In upstream segment of Oil
jacket. first attempt because that represents almost the & Gas, process platform projects are treated
With this phenomenal achievement, the Shapoorji upper end. But, in our case, by default, it turned as most complex, high-risk and challenging
Pallonji Group Company became the first Indian out to be our starting point. We demonstrated jobs. AFCONS takes pride in entering this high-
EPC contractor to install a process platform using strong project management skills. Our relationship risk segment and successfully completing two
the float-over technology on time. This was only management and selection of good vendors, process platforms back to back.
the second float-over operation to be carried out even as first time entrants into offshore Oil & Box Item
in India. Gas, helped us in delivering the ICP-R Process Challenges in float-over methodology
In offshore Oil & Gas industry worldwide, most Platform. This consequently qualified us to quote Identifying the availability of appropriate float-
topsides are installed by conventional method for the HRD project.” over barge/vessel
of lifting. So far, only 27 topsides have been Even though the AFCONS-led consortium bagged Availability of float-over window both for load out
installed across the world using the float-over the HRD project, there was strong apprehension & sail out from yard and installation at offshore
technique. AFCONS, the leader in a consortium against the float-over technology. Detailed engineering to meet client’s specific
comprising Technip, India/France and THHE, “In India, there is a lot of hesitation to opt for requirement for housing topside packages,
Malaysia, became the first Indian contractor to float-over technology. But we, associated with equipment etc through various HAZOP/HAZID
adopt the technology and successfully execute Technip who had huge experience in float-over analysis, during different phases of engineering
it. The design and installation was handled by operations. With a good procurement network and construction
Technip. and strong project management, we carved out a Finding an experienced fabricator not only
The HRD topside was constructed in Vietnam, story of successful technology transfer between capable of fabrication & load out structure on
with loading out on the planned date. It was an Indian and an international organisation,” selected vessel, but also perform on-site testing
transported on a float-over barge to Heera Field Subrahmanian said. (such as string test for PGC, hydro test, leak test
(situated 70 km south-west of Mumbai city), The float-over window is normally very narrow. If etc) to remove the offshore testing cycle, hook
Indian offshore by sea all the way from Vietnam. the installation is not competed as planned one up & commissioning
Parallelly, during this time, the jacket was would be forced to spend a lot of additional time Transportation of topside in single unit
installed and prepared to receive the topside. On offshore. Installation of topside with continuous monitoring
January 15, the HRD topside was mated with the “It is a very precision operation. But if you & analysis
jacket making the process platform a monolithic plan it well it’s doable, and, we have shown it,”
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PAGE
7
GREEN SHIP RECYCLING IN INDIA
Ship Recycling started in India way November 2008. The strategy paper proposed in dismantling and as such to improve the level of
back in around 1983. These activities the first place to improve enforcement of current information on current practices and solutions at
were happening in other areas of the waste shipment rules, transpose key elements of EU level;
world too but were shifted to other the Ship Recycling Convention and fill some of • Provide a platform for discussion in view of
countries over a period of time. its gaps, as well as encourage voluntary industry the relevant international meetings related to
The Indian Ship recycling has come action. In the longer term it recommended an EU the Convention on the safe and environmentally
a long way since then and recently certification and audit scheme for ship recycling sound recycling of ships.
many more measures have been facilities and the creation of a “ship dismantling
taken to ensure improving the working with fund” by which clean recycling operations in and Indian Ship Recycling Code 2013 has been formed
better environment norms and improve working outside of Europe could be financed through to encompass various regulations and ensure
facilities. Due to the various aligned shipping and port fees or similar taxes on shipping activities. that the Indian Legislation will keep in pace with
steel marketing developing from India it has been Following some more research work and public the Ship Recycling developments in the world
possible for the Indian Ship Recycling industry to consultations on the options for legislation, the and ensure sustainability to Indian Ship recycling
grow hand in hand to allow almost 170 yards and Commission finally came up with a proposal for market in years to come.
giving employment to many qualified and trained a Regulation on ship recycling in March 2012, Ship Recycling Industries Association (SRIA) is
workers for various jobs accompanied by an extensive impact assessment actively involved in ensuring that the Indian Ship
and a draft Council Decision requiring Member Recycling Yards are well represented at the various
Ship Recycling as followed in India ensures almost States to ratify or to accede to the Hong Kong platforms and the giant steps taken by the yards
rebirth to all items that are removed from the Convention. are highlighted to the world. The Gujrat Maritime
vessels. Board has been a great support for this and many
a) Steel generated from the hull plates and other Current situation training and drills conducted to enhance the safety
structures is low cost and almost 100% recycled In 2010 the European Commission adopted a culture in the yards.
b) The wood and board from the vessel is reused Communication on the Assessment of the link The below lists some of the initiatives taken
in various ways between the IMO Hong Kong Convention, the by SRIA:
c) The machinery as a whole and their parts Basel Convention and the EU Waste Shipment a) Regular health checkups for Labour
removed are used by various ships from the market Regulation. b) Mandatory Insurance of all workers as per
of second hand spares from Alang In 2012 the European Commission published a ESIC
d) Safe disposal of hazardous waste materials to Proposal for the Regulation on Ship Recycling c) Emergency Response Center
ensure safety of environment (COM/2012/0118 final). The final EU Ship Recycling d) Improved Labour Housing Colony
e) Various expensive metals like Copper, Brass Regulation (EU-SRR) has entered into force on e) Monitoring of gas emissions, soil nature,
and in some cases Silver and Gold from various Dec. 30th 2013 which is mostly a copy of Hong noise and water as per industry standards
machinery is safely removed for smelting and Kong Convention. f) Ensure the various yard improve worker
reuse Similarities between HKC and EU drinking water and sanitation facilities
• Both of the conventions cover environmentally g) Working closely with various organization
In order to ensure that the various standards sound ship recycling issues such as pollution like GEPIL,GMB, GPCB, RED CROSS, etc, to
are adopted for a regulated and safe prevention and workers’ safety and health improve the safety and quality standards of
ship recycling across the world the Hong • The work force is trained for their respective Alang Ship Recycling yards.
jobs; Conclusion
Kong International Convention for Safe
• There are no children employed in The recent economic slowdown has caused a
and Environmentally Sound Recycling of shipbreaking activities; concern especially in the real estate sector which
Ships (Hong Kong Convention - HKC) was • Personal Protection Equipment is provided is the biggest market for the Indian Ship Recycling
adopted at a diplomatic conference in Hong and used by the workforce; Industry. The improved quality control on the
Kong in May 2009 which was attended by 63 • Safe-for-entry and safe-for-hot work steel production may lead to lesser demand for
states (with voting rights) and various other conditions are maintained; lower quality steel as it is produced from ship
entities and organizations. 59 states signed • The workforce is provided with adequate steel. However, Green Ship Recycling is poised
the Final Act at the conference but afterwards the sanitary facilities; to an important step towards greener and better
support of the international community for the • Winches, cranes and lifting equipment are tomorrow.
new instrument remained rather lukewarm. During adequate and regularly load tested; a) The yards have shown keen interest to adopt
the years when the HKC was open for signature • There are procedures for preventing and the various requirements of new regulations even
at the IMO headquarters (until 31 August 2010) containing spillages as well as accident though it would mean their extra expenditure in
only five states - France, Italy, the Netherlands, (emergency preparedness and response); the tune of 10% of present cost.
Saint Kitts and Nevis, Turkey - took this step. Two b) 4 yards who are members of SRIA also have
years later, no further states have acceded to the Role of EMSA voluntarily adopted higher standards of HKC
Convention and only three have so far ratified it The Agency has been involved in the process which has not entered into force and others are in
(Norway, France, Republic of Congo). Rumors are since March 2006, following a request line to follow them with the guidance
around that more countries are in the process of from the EC (DG ENV) to provide technical of GSR Services in cooperation with NKCS and
ratification, future will tell. assistance on the issue of ship recycling. ClassNK and Lilly Maritime Pvt. Ltd
The convention shall enter into force 24 months EMSA has participated in international meetings, c) Their a marked improvement of following ISO
after the certain conditions are met: inter alia in IMO meetings (MEPC, ship recycling 9001, 14000 and 18000 standards all through the
It is difficult to predict its entry into force, but it is Working Groups, Hong Kong Diplomatic Alang yards
unlikely that the HKC will enter into force before Conference), Basel Convention meetings, d) Greater representation from SRIA and yard
2020. international conferences on ship recycling, etc. members to spread the initiatives taken by the
Various guidelines have been developed and and coordinates the EC’s submissions to the IMO Indian Ship Recycling Industry
adopted at the IMO to assist the State Parties in Correspondence Group. e) Class NK (Japan) is actively involved in
the implementation of the Convention’s technical The Agency commissioned a study (finalized in dialogue with Indian Government to ratify and
standards: September 2008), which provided a model of implement HKC convention and assist the yards in
an integrated management system (IMS) for the certification for compliance of the same to show
EU Ship Recycling Regulation certification of ship recycling facilities addressing better standards to the shipping world
In 2005-6 by the envisaged dismantling of the safety, health and environmental issues. f) Ship Recycling supervision by ship owners is
French aircraft carrier “Clemenceau” in India and EMSA also organized workshops in its premises in welcomed by various yards to give higher trust
after a Green Paper published in 2007, the European Lisbon, in order to: g) Improved Hazardous Waste Management
Commission presented a Communication on • stimulate an exchange of views among experts Facility
“an EU strategy for better ship dismantling” in on current developments with regard to ship
PAGE 8
PAGE
9
ROYAL DUTCH SHELL hydrocarbon reserves in a fresh round, and is
under pressure to design a policy that will help
is stability in that regime,” she said. “Once you
enter an agreement, it’s a long-term agreement,
MAY ENTER INDIA’S attract investors, especially after companies
signed up production sharing contracts for barely
so you need stability across that, we don’t want
change over that period,” she added.
E&P BUSINESS IF half the blocks offered in the last two rounds. A debate has been raging in India with private
players pleading for the existing cost-recovery
POLICIES ARE TO ITS “Royal Dutch Shell Plc is bullish about India’s gas
market and may re-enter the upstream business
model where explorers get to recover their cost
before sharing profit with the government. The
LIKING in the country if the government offered a stable
policy and an open acreage licence to explorers,”
government is mulling replacing this with a
revenue-sharing model where explorer will have
The buzz is that Royal Dutch Shell Plc, one of the senior company executives revealed to the media to give the government a share from the revenue.
global giants of oil & gas, is all set to re-enter the early June.
upstream business in the India if the government “We would continue to look at upstream “We are currently in discussions to expand that
offered a stable policy and an open acreage opportunities in India,” said Harry Brekelmans, further, that’s subject to the joint venture itself
licence to explorers. India has always tried to woo projects & technology director and a member but we are clearly keen and supportive of these
foreign players to invest in funds and technology of the top executive committee at Shell. “At the plans,” Brekelmans said.
in India’s E&P acreage. However, the NELP rounds moment, we have not been able to see anything “We are very clear that we are interested in gas
failed to attract the kind of response that the that is attractive enough and will continue to look in India. First of all because we are a leading
country would have liked. at how policies develop.” company in gas. Secondly, because we feel
The reality is that India still imports 80% of its “We are quite interested in the new policy which there is significant growth ahead in terms of gas
crude oil requirement rendering many of its power suggests that the open acreage licence OLAP demand,” Brekelmans said. “In the shorter term,
plants idle or underutilised. The government’s (may be offered) and we think that may give us we know that there are a number of impediments
attempts at attracting foreign investors to a different opportunity to look,” said Yasmine still to be overcome. One deals with the regulation
develop its hydrocarbon reserves have met with Hilton, chairman of Shell Companies in India. and price liberalisation, the other one, for
limited success thus far. The government is now Shell has no particular preference for the example, deals with access to infrastructure. And
working on a new oil and gas exploration policy fiscal regime to be followed in exploration and this goes back to the same point, which is certain
that will replace the 16-year-old New Exploration production as the company works across the conditions that we would like to see in place that
Licensing Policy (NELP), which has guided nine globe under different contractual terms, Hilton provide stability, a level playing field,” he said.
rounds of auction so far. It hopes to auction said. “We can work in any regime as long as there
THE MAN IS THE MESSAGE FOR BP WHICH
RELIES ON INDIVIDUAL CAPABILITY AND
BRILLIANCE TO POLISH ITS BRAND IMAGE
Since ‘BP’ petrol first went on sale in does has to live up to its avowed values. its
Britain in the 1920s, the brand has grown logo - the Helios - symbolises these values.
to become recognised worldwide for Named after the Greek sun god, the Helios
quality gasoline, transport fuels, chemicals represents energy in its many forms.
and alternative sources of energy such as BP, today, ranks as one of the world’s
wind and biofuels. BP remains the main leading international oil and gas companies.
global brand to this day. It is the name that It provides customers with fuel for
appears on production platforms, refineries, transportation, energy for heat and light,
ships and corporate offices as well as on lubricants to keep engines moving, and
wind farms, research facilities and at retail the petrochemicals products used to make
service stations. Of all the forms of energy everyday items as diverse as paints, clothes
that make up BP and its services, perhaps and packaging. It is active in around 80
the most vital is the human energy and that countries worldwide.
is what fuels the brand.
BP’s strategy is all about setting clear
BP has diversified over the years and is priorities, actively managing a quality
today, committed to making a real difference portfolio and leveraging its distinctive
in providing better energy that is needed capabilities to do quality work in global
in the changing world of tomorrow. BP is oil and gas. The company has a threefold
committed to safety, respect, excellence, approach viz. developing and utilising
courage and One Team. Everything BP advanced technology, forging strong
PAGE
10
relationships with the concerned people/ agencies/partners in countries the implementation of the first ever OBE Project in the Hydrocarbon Sector
where it operates and deploying proven expertise that has been the which opened up the avenues of several OBE and Cost + contracts in the
hallmark of its crew. industry with various clients. This mode of Implementation has become
extremely popular as it provides a win-win solution for the Owner, wherein,
BP develops and deploys technologies with a vision to make the greatest it allows EPC benefits to accrue to the Owner at EPCM costs.
impact on its businesses – from enhancing the safety and reliability of For the past 3 years or so, he has been In-charge of the Commercial
operations to creating competitive advantage in energy discovery, recovery, functions of the Company inclusive of Purchase & Contracting, Inspection,
efficiency and products. As regards the second objective, the aim is to Estimation, Strategy Formulation, all Business Development activities along
form enduring partnerships in the countries in which BP operates, building with added responsibilities towards Implementation of Mega Domestic &
strong relationships with governments, customers, partners, suppliers International Projects. During the past 3 years, he has been instrumental in
and communities to create mutual advantage. Co-operation helps unlock securing major overseas Projects for the company including the 25 MMTPA
resources found in challenging locations and transforms them into products Grassroots Integrated Refinery cum Petrochemical Project for the Dangote
for BP’s customers. Group in Nigeria, where EIL has been retained as EPCM contractor. This is the
single largest EPCM contract signed by EIL hitherto. This Project is likely to
Thirdly, but certainly not lastly, it’s the crew of BP that represents the play a significant role in serving the supplies from Indian shores additionally.
company’s high standards wherever they may be deployed. Personnel help Success from OMAN, where EIL is PMC for a mega Petrochemical Complex
BP to drive its business forward. They apply their diverse skills and expertise have also been secured during this period. As part of a Strategic initiatives,
to deliver complex projects across all areas of the company’s business. an engineering office has been opened up for Abu Dhabi on a mega scale
for catering to the Middle East Market. Significant successes from this office
Shri Sanjay Gupta is the Chairman & Managing Director of Engineers India have started pouring in.
(EIL). An Engineering graduate from IIT Roorkee, Gupta has about 34 years
of experience in the company ranging from Planning to Implementation of Is leading several suo-motto studies for optimization, energy improvement,
Mega Grassroots Projects in the Refineries and Petrochemical Sector. He is value addition and laying foot prints of mega grassroots Petrochemical
associated with some landmark initiatives for the company, wherein, he led Complexes to serve the domestic market. Significant amount of this work
is in ‘Sync’with the Make’in India’ ‘do in India’ campaign of the Government.
INDIA COULD USE
HONEYWELL’S EXPERTISE
AND EXPERIENCE TODAY
AS NEVER BEFORE
Honeywell has earned itself its position as a leading global
player in several segments including energy. Honeywell’s
know-how and experience in refining, for example, are
reflected in an industry leading portfolio of technology,
catalysts, adsorbents, equipment and services. Whether
it’s meeting diesel demand in developing economies,
responding to octane needs and diesel sulfur reduction,
upgrading heavy fuel oil, or maximizing profits from
underutilized assets, Honeywell’s subsidiary UOP offers
unique solutions.
UOP LLC, a Honeywell International Inc. company,
announced in June, that its process technology,
catalysts and proprietary equipment will form the
basis for the largest refinery in Africa, reducing With global energy demands expected to solutions help in this dynamic, emerging arena.
Nigeria’s dependence on imported fuels and double by 2030, Honeywell continues to UOP, through its joint venture Envergent
petrochemicals. Dangote Oil Refining Company identify alternative energy resources. Fuels and Technologies, offers a proven method to
selected UOP technology for a world-scale chemicals from renewable sources have the convert biomass into a liquid biofuel that
integrated refinery and petrochemical plant to potential to support growing energy needs while can generate renewable heat and power or
be built in Lekki, near the capital of Lagos in addressing concerns regarding climate change
even be upgraded in the future to produce
southwestern Nigeria. and greenhouse gas emissions. UOP’s innovative
green transport fuels.
IRCLASS RULES FOR INDIAN NAVAL COMBATANT SHIPS RELEASED BY
CHIEF OF THE NAVAL STAFF ADMIRAL R K DHOWAN
and Mr Ravi Sachdeva, Chief Surveyor and Senior Vice President.
Traditionally, Naval ships have been designed and built as per the Navy’s
own design standards. However, over the past two decades, advances in
the commercial field have occurred, such as lightweight, high speed ships,
with modern highly responsive propulsion plants etc., which have led to
classification societies becoming capable of dealing with technology
being deployed in naval ships. Some leading classification societies, in
collaboration with their national navies have developed special Rules for
naval ships which incorporate the best of commercial and naval practises
and the usage of such Rules has grown with time. Perceiving the substantial
advantages to be gained in adopting specially developed Naval Rules, for
building of Naval ships, the Indian Navy and IRS joined hands to develop
Naval Rules in 2006. A conservative approach was followed, and in the first
instance, Rules were drawn up for “non-combatant” vessels and not for
major warships. These Rules were first published in 2007 and were revised
in 2010, in the light of experience gained in their usage. Following the
release of Rules for non-combatant vessels, the development of IRS Naval
Rules for “combatant” vessels was taken up. These Rules have greater focus
on the military aspects of ship design.
This development marks a significant milestone in IRS’ history and is yet
another contribution to make the nation, and more specifically so, the
The “Rules and Regulations for Construction and Classification of Indian Defence manufacturing sector, self-reliant. The Make-in-India initiative
Naval Combatant Ships”, developed by Indian Register of Shipping were has been the raison d’etre of IRS’ existence which was established
formally released by the Chief of the Naval Staff, Admiral RK Dhowan, PVSM, in 1975 with the active support of Ministry of Shipping to promote
AVSM, YSM, ADC on 09 June 2015. The release took place in South Block,
national maritime interests and serve as a nucleus for R&D in the
New Delhi, in the presence of Vice Admiral P Murugesan AVSM, VSM, Vice
Chief of Naval Staff, Vice Admiral AV Subhedar AVSM, VSM, Chief of Materiel,
shipbuilding and allied sectors.
Vice Admiral GS Pabby AVSM, VSM, Controller of Warship Production and
A presentation on the salient features of the Rules and on the process
Acquisition and other senior officers of the Indian Navy. The Indian Register
of development preceded the release. The release of rules marked the
of Shipping was represented by Mr Arun Sharma, Chairman and Managing
culmination of about 4 years of effort and Indian Navy has steadfastly stood
Director, Vice Admiral B.S. Randhawa, PVSM, AVSM, VSM (Retd.), Principal
by IRS in this endeavour, said Mr. Arun Sharma speaking on the occasion.
Naval Advisor, Mr US Kalghatgi, Chief Surveyor and Senior Vice President,
He further spoke on the advantages inherent in having Naval Rules, whichPAGE
11
P. K. Sundaram
embody the best features of commercial and naval ship design features Joint Secretary
and production processes, leading to cost – effectiveness. He stated that MOPNG
IRS was looking forward to the Rules being put into application in the near
future and, in the process undergo further refinement and improvement. “This is my first time in IORS and I find it is excellently organised and
He also conveyed thanks to the Naval Officers in the Indian Naval Rule the conference had subjects that are very useful from the industry
Committee, who, along with their subordinates, worked alongside IRS and perspective. Certainly IORS is doing a very good job to bring
provided invaluable guidance during the development process. The Chief together the various segments of this industry which is very useful to
of the Naval Staff congratulated IRS on the successful development of the promote business in this sector. I would suggest that instead of one
Rules and stated that it was necessary that the Rules be implemented and event in a year, you should do two events in a year so as to connect
continually reviewed and updated so as to remain abreast of contemporary global brands in the oil and gas sector to connect to more industry
technology. professionals, so that you can contribute more to the industry.”
About Indian Register of Shipping
Indian Register of Shipping (IRClass) is an independent ship classification
society providing ship classification and certification as well as technical
inspection services. IRClass is a full Member of the International Association
of Classification Societies (IACS).
Covering a wide range of shipping, offshore and industrial projects, their
team of dedicated professionals has brought international standardisation
and assurance to your doorstep.
T. K. Sengupta
For more information on IRClass, please visit the Director Offshore
website: http://www.irclass.org ONGC
“It’s great actually we have been associated with IORS since a very
long time. I think IORS is doing a great job for almost a decade
bringing professionals not only from India but from across the globe
and it is important to bring the key issues on the table that IORS is
doing, that will help all the stakeholders in the industry. I will look
forward to be the part of the next edition of IORS to support the
cause.”
Jagdesh
Donepudi
Country
Manager
KBC
“IORS has started on a very positive note with keynote speakers Laurent Stephane
from Oil and Gas Fraternity.IORS has provided KBC with aplatform
Head of International
to share its vast experience in Oil and Gas Industry with leaders
from the upstream and downstream.With its rich DNA of robust Recruitment
Thermodynamics,Models,Black Oil Characterisation coupled with TOTAL S.A.
Production Optimisation Softwares such as Multiflash TM,Flow “It’s not only my first time in IORS but also it’s my fist time to India.
WaxTM,Maximus TM and Petro-SIMTM Production etc,KBC We got some very good contacts and have created a database of
contributes towards improved optimization of upstream assets for professionals whom we can incorporate to hire for the company
increased profitability” seeing the opportunities available and I’m glad to be at IORS.”
Manish Gandhi
Sudhir Vasudeva Director
Former CMD OIL ASIA PUBLICATIONS
ONGC “In a time where Oil and Gas is a necessity , the complete O & G value
“I have had the rare distinction of attending all 21 editions of chain needs to come together so that we can advance rapidly together
IORS,which has been the first platform which was established before in transforming our Energy sector with technological advancements
even petrotech.IORS is an absolutely amazing initiative and i also & innovations.Events like IORS are essential to progress towards this
have a few ideas which i look forward to put across in the due course common goal and we look forward to advancing the Indian O & G
of time.I wish them all the best for all initiatives in future.” sector at IORS 2015 at a global scale.”You can also read
