POTENTIAL OIL & NATURAL GAS RESOURCES
OF RAJASTHAN-A BOON FOR RAPID ECONOMIC
DEVELOPMENT
*Dr. A.K.Vaish, **P. Agarwal , ***Alok Jain
ABSTRACT
Now, the State has emerged as a repository of wealth ,of crude oil, natural gas and lignite. The
extensive occurrences of petroliferous basins in Western Rajasthan have made it a large potential
region for hydrocarbons. With the untiring efforts of State Government, a total of 400.00 million
tones of crude oil prospectus and 11.79 billion cubic meters of gas have been proved in the State,
which has opened the path of rapid economic development of the State. Commercial production
of crude oil will likely be commenced in early 2006 and it is expected to get revenue of the tune
of Rs. 2000 crore by the end of year 2010-11, besides opening up of fair avenues for employment
in desertic terrain of the State.
BACKGROUND:
Energy is universally recognized as one of the most significant inputs for economic growth and
human development. Oil, Natural Gas and. Coal are the three primary commercial. sources of
energy. The share of commercial sources of energy is almost 70% in the country. The recoverable
reserves of crude oil in the country are to the tune of 740 million tones and that of natural gas are
of the order of 920 billion cubic meters These reserves are expected to last for approximately 20
years..
India is heavily dependent on imports to meet the rapidly growing demand of petroleum products.
Current demand and supply projection indicate that the level of self-sufficiency is likely to
decline to above 30% over the next few years. Substantial efforts are therefore, necessary to boost
the level of exploration activity in the country so that new finds can be made and the level of
crude oil and gas production significantly increases in the years to come. Moreover, continued
economic development and population growth are accelerating energy demand faster than India
can produce.
RAJASTHAN SCEINARIO:
Rajasthan has a vast tract of rock formations spread over to 1,50,000 sq. km in Barmer-Sanchore
Basin, Jaisalmer Basin & Bikaner-Nagaur Basin, which has the potential of hydrocarbon and
lignite deposits. These three petroliferous basins are now recognized as Category-Ion the basis
of their proven commercial productivity. 12 oil fields and one gas field have been established in
Barmer-Sanchore Basin and 7 gas fields in Jaisalmer Basin have also been proved. Additionally,
deposits of heavy oil & bitumen have been proved in Bikaner-Nagaur Basin near Baghewala in
Jaisalmer District. Till date, 400 million tones of crude oil reserves and 11.79 billion cubic
metres of natural gas reserves have been assessed in Rajasthan and it is hoped that the resource
potential is likely to be increased due to sincere efforts of Directorate of Rajasthan, Jaipur
Exploration for Petroleum & Natural Gas was carried out in the State since 1956.Till the year
1996,MI5 Oil & Natural Gas Commission (ONGC), M/s Qi1 India Limited (OIL), M/ s Phoenix
Overseas Limited ,M/s Shell India have worked in the State but no major break through was
made. In the year1997, State Directorate of Petroleum was created to speed up and monitor the
work of oil & natural gas exploration carried out by the different national/ multinational oil
exploring companies with its headquarter at Jaipur. After establishment of this Directorate,
concerted efforts were done and additional multinational companies such as M/ s Cairn Energy,
M/s Reliance Industries Ltd, M/s Essar Oil, M/ s Phoenix Overseas Limited, M/ s ENI etc came
forward in addition to ONGC & OIL for exploration of oil & natural gas. The results are quite
encouraging. Presently, in the State ten Petroleum Exploration Licenses (PELs) are granted and
five Mining Leases (ML) are in force, which is evident from enclosed table-I. The location map
showing PEL Blocks is also enclosed as Map-1.
Brief description of each PEL & ML areas is given below along with details of exploration work
done.
BLOCKS UNDER EXPLORATION IN RA}ASTHAN:
1. Government of India had identified 12 blocks in Rajasthan for oil & gas exploration, out of
which 6 blocks had been awarded to National/ Multinational companies through competitive
bidding. 6 blocks are available to be awarded through New Exploration Licensing Policy
(NELP). Government of India has awarded three blocks of Rajasthan to M/ s ENI, M/ s
Phoenix Overseas Ltd & M/ s Cairn Energy under NELP V. Two blocks of Coal Bed Methane
from Rajasthan have been awarded to M/ s Reliance Industries Ltd in the 2nd round of CBM
bidding. Recently, two new blocks have been proposed by this Directorate to Government of
India.
2. Department of Petroleum has carved out three new blocks namely Block-I (3620 sq. km) in
Jaisalmer Basin & Block-ll (2375 sq. km) in Bikaner-Nagaur Basin and Block-lll in BikanerNagaur Basin for the inclusion in NELP-VI. The meeting for sixth round of NELP will likely
be convened in January 2006.
3. Government of India has awarded three blocks in two basins namely Jaisalmer Basin &
Vindhyan Basin i.e. RJ-ONN-2003/1(1335 sq. km), RJ-ONN-2003/2 (13,195 sq. km) & VNONN-2003/1 (3585 sq. km) under NELP-V. The details are as follows:
S.N
Block
Company / Consortium (PI)
Operator
Area
(sq. km.)
1.
VN-ONN-2003/1
Cairn Energy India Ltd.
CElL
3538
(24%)
Cairn Exploration Ltd (25%)
ONGC (51%)
2.
RJ-ONN-2003/1
EN! India Ltd (34%)
ENI
Ltd.
1335
POL
13,195
ONGC (36%)
Cairn Exploration Ltd (30%)
3.
RJ-ONN-2003/2
Phoenix Overseas Ltd (60%)
Brikbeck Investments Ltd.
(40%)
The Production Sharing Contracts for the above blocks have been signed on 23.09.2005 with
Government of India. Now above companies will apply for PEL to the State Government.
4. WORK DONE AT 10 NUMBER OF SANCTIONED PEL AREAS:
(i) Blocks RJ-ON-90/1 (4969.9+852.20+856.0 Sq.Km+2884 sq. km) - ONGC f Cairn Energy:
Block RJ-ON-90/1 in District Barmer was awarded to Shell India in 1995 under Joint Venture for
which PEL was granted to ONGCL w.e.f. 15.05.1995 to 14.05.2001 and was extended from
15.05.2001 to 14.05.2005. Later Shell India transferred the operatorship to M/ s Cairn Energy of
Scotland.
The company has drilled 91 wells till September, 2005 and has discovered oil/ gas in 12 fields
i.e.Mangla, Aishwarya, Raageshwari, Saraswati, Kameshwari, Shakti, GR-F, Guda, Vandana,
Bhagyam, Vijaya & N-I.
Reserves of about 300 million tones have been assessed in this area. Further exploration/
appraisal work is under progress.
Commercialviability for production of oil from 4 discovered fields such as Saraswati,
Raageshwari, Mangla & Aishwarya has been declared by Government of India. The
development plan for its commercial exploitation is under consideration with Directorate
General of Hydrocarbon, Government of India.
It is expected that commercial production of oil may start by year 2006- 2007 from BarmerSanchore basin.
(ii) Block RJ-ON-90/S (3967 sq. km.) – Essar Oil Limited / Polish Oil & Gas Company:
Blocks RJ-ON-90/4 & 90/5 was awarded to Essar Oil Ltd in 1995 under Joint Venture
Exploration and PEL was granted to Oil India Ltd w.e.f. 01.10.1996 and it was held upto
30.09.2004.
The company has drilled two wells in this area one near Nanuwala, distt-Sri Ganganagar and
other named Binj Bayla-1, but both were not sucessfull.
The Licensee has surrendered area.
(Hi) Block RJ -ON -6 –Phoenix Overseas:
Block RJ-ON-6 in District Jaisalmer was awarded to to Phoenix Overseas Ltd.In 1996 under
Joint Venture Exploration for which PEL was to ONGC w.e.f. 21.08.1999 for 4 years &
company has applied for the renewal of PEL for 5th year.577.5 LKM 2D seismic data.
acquisition work has been completed which is more than. the work required under Minimum
Work Programme of PSC. Company has spuded the 1st well in Jaisalmer Basin & drilled up to
1973 mt. against the target depth of 2500 m. The 2nd exploratory well was started by the
company and drilled upto the depth level of 4133 mts. The testing will be done with workover
rig, as there are multiple small interesting zones.
The company has also drilled third exploratory well no. PHC-3 (Armaan # 1) in the block upto
the depth of 3108 m.
(iv) South Kharatar, District J aisalmer 395 Sq. Km-ONGCL
ONGCL has carried out following exploration work so far, in the PEL are granted w.e.f.
01.08.1997 to 31.07.2003 & company has applied for extension of PEL for 7th year:
Discovery of good quality & quantity of Gas: ONGC has drilled one well near Chinnewala
Tibba (CT#l) prospect located in the western part of Jaisalmer-Mari high around 12 km NW of
Ghotaru field in Jaisalmer Basin. This well was drilled upto the depth of 2004 mt and good
quality & quantity of gas was discovered in two zones i.e. object I and object 2 of this well.
Object I & 2 on testing flowed gas @ 50,000 to 60,000 cubic meter per day with CH4 content
over 70%and 60% respectively along with little condensate. The objects are presently under
detailed testing. The gas has good calorific value over 7000 K Ca VM3.It is expected to drill 3
to 4 more wells after 2-D seismic survey.
The company has applied for Mining Lease for 114.86. sq. km area out of 395 sq. km.
(v) Miajlar East Block - ONGCL:
In.. the PEL Block of Miajlar East, the planned seismic survey as well as exploratory drilling for
the released location namely, well MJAA could not be taken up because of non-clearance from
Desert National Park authorities.
On. application of regrant of 1591 sq. Km.. area under PEL the State Government has issued the
sanction order for the extension of PEL upto 26~08~2006 so that ONGCL may start drilling
operations in. this area.
(vi) Block RJ-ONN-2000/1- Oil India Limited:
Block RJ-ONN- 2000/1 in Pinoda area of District Jaisalmer was awarded. to OIL in 2001 under
NELP-II and PEL was granted to OIL w.e.f. 17.08.2001 for 6 years including two renewals of
one year each over 2535 sq. kms.
Reprocessing of 350 GLKM of 2-D seismic data has been completed in house at Dulijan along as
the processing of 250 GLKM of newly arived 2D Seismic data.
After Interpretation of 2D seismic data M/ s AGIL has submitted the final report.
Two exploratory locations were proposed for drilling in the block out of which one location with
TD of 1600 mts at Brahamanwala structure has been released by competent authority.
(vii) Siyasar Block RJ-ONN-2001/1 – Oil India Limited & ONGC:
This block in District Jaisalmer has been awarded to OIL & ONGCL in joint venture under
NELP- III measuring 3425 sq. km and PEL for which has been granted w.e.f. 23.07.2003 for 4
years. Interpretation of 250 sq. km. of 3D seismic data is completed. A total of 6 medium to small
sized structural prospects have been identified at various stratigraphic levels within Palaeozoic
and HC resources for these prospects estimated.
(viii) Block RJ-ONN-2002/1 - Oil India Limited & ONGC:
OIL has applied for PEL measuring an area of 9900 sq. km area in district Sriganganagar, which
was awarded to OIL & ONGC by Government of India under NELP-IV. Approval of
Government of India has been received for the same & recently State Government has issued
sanction order vide letter no. F.I 8(6) Mines/Gr.11/2004 dated 22.06.2004 for 7 years from the
date of issue of order.
The contract for API of 150 GLKM of 2D seismic data awarded to M/ s Alpha Geo (India) Ltd,
Hyderabad by extending the existing API contract.
Reprocessing of 200 GLKM of existing 2D seismic data is also completed. Presently, the seismic
data processing of 300 GLKM of acquired 2D seismic data is in progress.
(ix & x) Block BS (1)-CBM-2003/1 & BS (II)CBM-2003/11: Reliance Industries Ltd.;
Reliance Industries Ltd has applied for a PEL for Coal Bed Methane measuring an area of 1045
sq. km in districts Barmer & Jalore on dated 23.06.2004. The State Government has issued the
sanction order vide letter no. F.18(13)Mines/ Gr.2/2004 dated 01.04.2005 & F.18(14)Mines/
Gr.2/2004 dated 15.03.2005, respectively.
The work of Environmental studies was awarded to M/ s Kadam Environmental Consultants for
carrying out the following studies:
Rapid Initial Environment Examination (RIEE)
Rapid Environment Impact Assessment (REIA)
Emergency Response Plan and Contigency Plan (ERP .& CP).
All the studies have been completed & report of the same submitted to the Directorate of
Petroleum, Jaipur.
Field geological mapping in BS(I) & BS(2) block was carried out. Cleat mapping and ground
water conditions in and around lignite mines were studied. First two bore holes were located on
the ground. The co-ordinates of the proposed boreholes are given below:
S. No.
Proposed Borehole Nos.
Co-ordinates
Latitude
Longitude
1.
BS-2C#1
24° 53" 51.5'
72° 02" 42'
2.
BS-2C#2
25° 02" 42'
72° 03" 09'
5. GAS BASED POWER PLANT AT RAMGARH, DISTRICT JAISALMER
A unit of 35 MW was installed by RSEB for which OIL & ONGC are supplying gas of about 5
lac cubic meter per day from Tanot-Dandewalal-Bagi Tibba area and Manhera Tibba area
respectively. Installation of second unit of 37.5 MW having gas turbine has been completed and 3
units of 37.5 MW having steam turbine in combined cycle has also been completed. For this, a
total gas of about 9 to 11 lac cubic meter per day shall be required from OIL/ ONGC to meet the
requirement.
Oil India Ltd has discovered good quantity of gas in DND-11 well of Dandewala, which can
produce 60,000 cubic meters per day of gas. OIL is supplying about 7 lac cubic meter of gas to
RSEB.
1. GAS PRODUCTION
: 7.0 lac cubic meter/ day from 11 no. of wells i.e. Tanot
4, Dandewala- 5, Bagitibba-2
2. SUPPLY
: 1st unit of 35 MW Power Plant at Ramgarh.
3. COMMITMENT
: OIL has agreed to supply 7 lac cubic meter of gas per day after
the work over of wells.
Work-over programme of 15 wells have been completed by Oil
India Limited
6 AREA UNDER EXPLOITATION RAJASTHAN
(i) M.L. 250 sq. km. n/v Tanot-Dandewala Baggitibba in District J aisalmer:
Mining Lease was granted to OIL w.e.f. 01.01.1996 for 20 years.
ONGCL had drilled following exploration & development wells in this area to ensure supply of
gas to Ramgarh Power Plant:
(ii) M.L.24 sq. km. Manhera Tibba, Distt. Jaisalmer:
Mining Lease was granted to ONGCL w.e.f. 03.10.1997 for 20 years.
ONGCL has discovered good quality of gas in South Kharatar area, district Jaisalmer. The results
of testing indicate a gas potential of about 50,000 to 60,000 cubic meter per day from two zones.
The exact gas reserves can only be ascertained on drilling of 3 to 4 more wells by ONGC after 2D Seismic Survey. ONGC is supplying about 50,000 cubic meter of gas to RSEB.
No. of No. of gas
No. of gas
Wells bearing wells bearing
connected to
GGCS
through
pipeline
No". of
gas
No. of gas
bearing
wells likely
bearing
wells
to be
wells
using for
Average Specific
Calorific Gravity
(Relative
Value
to
K/Cal
air)
connected
used as
trial
stand by
20
8
2
0
0
4100
0.7855
Supply: 0.5 lac cubic meter per day of gas to 35 MW Unit-1 to Ramgarh Power Plant.
(iii) M.L. 564.60 sq. km n/v Ghotaru Extension-1 Distt. Jaisalmer:
ONGCL had applied this ML on 10.01.2001. The State Government had sent proposal to
Government of India for the approval of grant of ML on 23.3.2001. Recently Government of
India has given approval for grant of Mining Lease to ONGCL. The State Government will issue
the sanction order very soon.
(iv) M.L. 1.00 sq. km. Bhakriwala Distt. J aisalmer:
Mining Lease was granted to ONGCL w.e.f 10.1.2001 for 20 years.In-place Gas: 55.30
MMm3. Ultimate Reserves of Gas: 31.0 MMm3. Reserves of Gas: 31.0 MMm3. Testing
results of BT-5 (Well falling in Bakhriwala ML). At present there is no programme of
drilling of any well in this area. The gas finding in this area is of lean quality for which
suitable consumer is being ascertained.
(v) ML 210 sq. km. Baghewala Area, District Jaisalmer:
OIL had applied .ML 210 sq. km in Baghewala area District Jaisalmer and the State
Government has issued the sanction order vide letter no. F.19(4) Mines/Gr.2/2003 dated
30.06.2004 for 20 years from 30.05.2003 after obtaining the approval of Government of
India.
Geological & Reservoir Studies have been conducted by PDVSA, Venezuela for the
establishment of producibility of heavy oil in Bagewala Area. First Pilot Well is scheduled
to be drilled in 2nd week of October, 2005.
(vi) ML 114.86 sq. km. Chinnewala Area, District Jaisalmer:
ONGC has applied a new ML in Chinnewala measuring an area of 114.86 sq. km on dated.
15.10.2003 and proposal for the grant of Mining Lease has been sent to State Government
for the issuance of sanction order.
(vii) ML 1859 sq. km Mangla Area, Districts Barmer & Jalore:
ONGC has applied. a new M.L. in Mangla area measuring an area of 1859 sq. km on dated
11.03.2005, which has been sanctioned by the State Government after obtaining approval from
Government of India w.e.f. 20.06.2005 for a period of 20 years. .
Director General Hydrocarbons has nominated ONGC (Licensee) to lift the pit/ crude oil free of
charge/ cost from Block RJ-ON-90/1 and disposal of such pit oil will rest with licensee and any
statutory levies payable thereon shall be borne by the licensee.
1065.622 metric tonne of crude/pit oil have been evacuated till 31.08.2005 and royalty of Rs.
29,59,530 / - has been deposited in the royalty head of the Directorate of Petroleum, Jaipur.
1528.85 metric tonne of crude/pit oil have been evacuated during September, 2005.
7. ONGOING DEPARTMENTAL PROJECTS
1. COAL BED METHANE (CBM)
Apart from above, the Department has undertaken a project for evaluating CBM Resources in
Rajasthan under R&D Project in Barmer and Bikaner districts. Oil Industry Development Board
New Delhi (under Ministry of Petroleum and Natural Gas) has sanctioned a grant of Rs. 4.27
crores to the Department of Petroleum.
R&D work has been commenced and one borehole near Rawatsar, District Banner has been
drilled up to the depth of 600 mts. Second borehole has also been drilled n/ v Khara, District
Jalore upto the depth of 836.50 mts. Testing of CBM content has been conducted by the Central
Mining Research Institute, Dhanbad from the samples collected from the total thickness of 23.
50 mts of lignite encountered in the borehole.
These data have been incorporated in the data piackage of. 2 blocks recently released by
Government of India in 2nd round of CBM bidding. Rel1ance has submitted bids for both the
blocks.
High Resolution Shallow Seismic Survey (HRSS) has been started in Bikaner area for 100 + 20
% LKM. The task has been entrusted to National Geophysical Research institute (NGRI),
Hyderabad for conducting HRSS under the supervision of the Department of Petroleum. This
survey will decipher the deep-seated lignite zones to the depth ranging from 200 to 1000 mts. The
survey shall be followed by the deep drilling of two boreholes in 2nd phase after obtaining the
grant from Oil Industry Development Board (OIDB), New Delhi. About 116.11 LKM of HRSS
data has been acquired. Processing & Interpretation is under progress.
11. UNDERGROUND COAL GASIFICATION (UCG)
The Directorate of Petroleum has also identified large deposits of lignite at depths ranging from
200 m to 500 m. A team from Australia namely Line Energy visited the potential areas and
showed keen interest to develop Underground Coal Gasification Project in Rajasthan
particularly in Koslu area of Barmer district.
The Department has reserved an area of 1691.70sq. km for UCG in which Blocks of 25 sq. km
shall be carved out.
MOU between State Government & GAlL has been signed on 28.04.2005 to undertake pilot
scale studies for the development of underground coal gasification.
Ill. GAS CO-OPERATION AGREEMENT (GCA) The Department of Petroleum and GAlL
(India) have signed Gas-cooperation Agreement (GCA) on 10.09.2003 and are jointly undertake
a comprehensive gas sector study covering the gas demand and assessment of pipeline
infrastructure and other related facilities to supply gas to cover major end users like Industrial,
Commercial and Transport sectors. Demand - Supply Assessment study has been carried out for
Kota, Chittorgarh, Bhilwara, Pall & Jodhpur district enroute to Kota
Mathania Sector & Neemarana-Bhiwadi Sector. The draft report submitted by GAIL (India) Ltd
has been put up before the Members of JWG for its evaluation and implementation. This report
contains: Anticipated demand of LNG for the year 2005-06 is about 6.88 MMSCMD, which is
projected as 11.33 MMSCMD for the year 2007-08 in various sectors.
Requirement of firm commitment from the State Government in terms of Long Term Perspective
Plan for the use of LNG & LPG in Industrial, Power & City Gas Distribution Sectors.
After the commitment shown by various consumers, GAlL will ensure sourcing of gas from
various sources and laying of pipeline infrastructures.
GAlL has submitted the Draft Report on Potential for Utilization of Natural Gas in the State of
Rajasthan. As per Draft Report on Sectoral Demand for Natural Gas in Rajasthan is:
Realistic Scenario of eas in MMSCMD
Power Sector
Fertilizer Sector
2004 -05
2.65
1.73
2005-06
2.65
3.33
2006-07
3.65
4.08
2007 -08
6.25
4.08
Industrial Sector
0.68
0.74
0.75
0.80
Domestic + Commercia1+A
0.19
0.16
0.18
0.20
Total
5.25
6.88
8.66
11.33
FUTURE PROSPECTS OF DEVELOPMENT OF HYDROCARBON .EXPLORATION
IN STATE:
.
New Blocks of oil &.gas would be allotted in the next rounds of NELP i.e. NELP-V onwards).
More Blocks of CBM .shall he carved out in Barmer-Sanchore Basin & Bikaner..Nagaur Basin
after the completion of R & D by the Directorate of Petroleum. Production of Oil & Gas shall
start by year 2006-07 from BarmerSanchore Basin,
Enhancement of Gas supply to Ramgarh Power Plant from Dandewala area of Oil India Limited
& Chinnewala Tibba area of ONGC.
Resources of Baghewala area District Jaisalmer for generation of power and other uses.
Establishment of gas grid in Rajasthan for supply of gas to different sectors after the completion
of task assigned in Gas Co-operation Agreement Development of Underground Coal Gasification
for generation of power in BarmerSanchore Basin.
Strengthening of Directorate of Petroleum for more effective monitoring of exploration &
exploitation work in the State.
Prospects to create a State Petroleum Corporation for availing more participating interests from
the available reserves in the State & other parts of the Country.