HPCL E & P Brochure August 09 vr 4 - Hindustan Petroleum ...

EXPLORATION & PRODUCTION

HP-E&P
VISION
HP-E&P is World Class & Technically Proficient, with Global
presence, delivering Superior Returns from a Sustainable
Balanced Portfolio with highest commitment to HSSE and Society.

HPCL
1 history
Hindustan Petroleum Corporation Limited (“HPCL”) is a key public
sector player in India's oil and gas industry with 51.01%
Government ownership. The Company is ranked 311th amongst the
“Fortune-500” group of 2009, The Turnover during 2008-09 was
Rs. 116,428 crores (US $ 24 Billion). It has been in operation for
over a century since the erstwhile Standard Oil Company started
operations in India. HPCL, with a Net Worth of US $ 2.2 billion is
currently categorized as one of the “Navratnas” or nine jewels by
the Government of India.
It is listed on Bombay Stock Exchange and National Stock Exchange
and has a market capitalization of approximately US $ 2.46 billion.
Primarily a refining and marketing company, HPCL – has a 10.3%
share of India's refining capacity. It owns two refineries at Mumbai
and Visakh with a total processing capacity of 13 million metric
Tons per annum (MMTPA). After the ongoing Refinery upgrading
projects get completed at both refineries, total refining capacity
would be enhanced to 18 MMTPA, besides producing Euro-III /
Euro-IV Gasoline and Euro-III Diesel and gaining flexibility to
process higher quantum of heavier and sour crudes. The
Corporation owns and operates India's largest Lube refinery at
Mumbai, with annual capacity of 335,000 tons, which accounts for
40% of the total domestic production.
This project is expected to be completed by end-2010 at a approx.
cost of Rs. 18,000 crores and would cater to its marketing
requirement in North India.
The Corporation has a country-wide marketing network and a
whole range of automotive and industrial petroleum products.
The company has about 18.01% market share equivalent to around
25.4 MMTPA and majority revenue is from its over 8500 Retail
outlets. The Marketing division focuses on Quality and Quantity
assurance to customers.
It is the industry leader in automation of facilities and aggressively
markets Lubricants, Industrial and Consumer products, Aviation
fuel and Bitumen besides penetrating to rural and highway
segments. It operates four cross-country pipelines to enhance
product availability and minimize transportation cost from its
refineries with over 14 MMTPA capacity, including the new
pipeline project of 1048 kms. with approx. 5 MMTPA capacity
from Mundra to Bahadurgarh, near Delhi. .
The Corporation has a skilled and experienced workforce of
around 11,200 employees working all over India at its various
refining and marketing locations for operating the extensive
refining and marketing infrastructural facilities.
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It also has a 16.95% stake in a Joint Venture (JV) refinery at
Mangalore with a capacity of 9 MMTPA. HPCL is promoting 9
MMTPA state-of-the-art grass-root Refinery project at Bhatinda,
Punjab with M/s. Mittal Energy Investments Pte. Ltd. as JV partner.
HPCL has invested in existing business and diversified areas
through its Joint Venture Companies (JVC) for grass-root refinery
projects, upstream E&P business, natural gas distribution, LPG
import and value-added Bitumen and pipelines.

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HPCL FORAY
INTO E&P BUSINESS
HPCL has ventured into new business opportunities to
access additional revenue streams and to emerge as an
integrated energy company.
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The Corporation's foray into the upstream sector would
provide access to equity oil to ensure energy security.
HPCL Plans to invest approx. US $500 Million in the
Upstream Sector during the current XI plan ending
2011 - 2012.
HPCL, in partnership with consortium companies currently
has 19 nos. E&P blocks in India and 4 blocks overseas i.e. one
block each in Oman and Australia and 2 blocks in Egypt,
HPCL is in the process of formulating a short term & long
term strategy for their upstream sector and establish a
corporate structure & business processes for implementing
the same

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HPCL FORAY
INTO E&P BUSINESS contd.
A brief information of E&P blocks acquired by HPCL during
past five years, is as under :-
holds 20% participating interest & balance 80% is with
ONGC as operator.
BLOCKS IN INDIA :
NELP-IV round: Two blocks were awarded during 2004
under NELP-IV in offshore deepwater of Kerala-Konkan
basin (KK-DWN-2002/2 & KK-DWN-2002/3) wherein HPCL
Another NELP-IV block was awarded during 2004 in
Cambay-Gujarat onshore basin (CB-ONN-2002-3) where
HCPL as a consortium partner held 15% participating interest
while M/s GSPC Ltd. as the operator had 55% interest. Other
partners Jubiliant Enpro Pvt. Ltd. and Geo Global Resources
Limited have 20% & 10% interest respectively. Discovery of
oil was reported in 8 exploratory wells.
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NELP-V round: In 2005 HPCL was awarded one onshore
block under NELP-V round in Assam (AA-ONN-2003-3)
where HPCL as a consortium partner holds 15% participating
interest & balance 85% is with M/s Oil India Ltd. as the operator.
NELP-VI round: HPCL participated in NELP-VI round along
with major operators like: ONGC, OIL, GSPC and GAIL. The
Govt. of India awarded 15 nos. blocks in which HPCL's
participation interest ranges from 10% to 20%.
The 15 blocks include 11 nos. deep-water blocks in KG and
Cauvery basins, 2 nos. shallow-water blocks in Mumbai High
and 2 nos. onshore blocks in Rajasthan in which HPCL's
participation interest ranges from 10% to 20%. The 15 blocks
include 11 nos. deep-water blocks in KG and Cauvery basins,
2 nos. shallow-water blocks in Mumbai High and 2 nos.
onshore blocks in Rajasthan.

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OVERSEAS EXPLORATION ASSETS
OF HP-E&P
Oman Block 56
The acquisition of assets overseas was initiated during 2005 and some early success has been registered in terms of discoveries
and award of additional assets during 2008.
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HP-E&P has been actively participating in various competitive bid rounds announced at some select countries in joint
collaboration and consortium with leading NOC of country. During the past few years, the countries of interest for in this
strategic bidding intent have been : Oman, Yemen, Iran, Australia, Indonesia, Angola, Egypt, Algeria and Tunisia. The
resources have been allotted in order to suitably and selectively develop overseas assets portfolio and set up a foot-print in
international arena. A brief on status of the current overseas blocks is as under :-
Oman onshore Block-56
Oman Block-56 was awarded during July 2006 by Ministry for Oil & Gas (MOG), Sultanate of Oman to the consortium
consisting : M/s Oilex, Australia (25%), HPCL (12.5%), BPCL (12.5%), GAIL (25%) and Videocon (25%). The block is located at
the SE flank of Southern Salt Basin, of area: 5809 sq Km and adjacent to PDO Block-6 producing area.
So far, 7 exploratory wells have been drilled, including 1 exploratory-appraisal well, targeting formations of Gharif, Al-Khlata
and Huqf-Haima group. Some ecouraging discoveries have been achieved at 2 wells with Crude API at 16-20. The balance
MWP includes drilling of 4 wells and 3-D Seismic API. Additional well testing plans and forward strategy for block-wide
prospectivity are being taken up.

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OVERSEAS EXPLORATION ASSETS
OF HP-E&P contd.
Australia
Egypt
Western Australia deep-water block WA-388-P
The Dept. of Industry and Resources, Govt. of Western Australia awarded during Aug. 2006, a deep-water Australia block
WA-388-P to a consortium consisting : M/s Oilex (20%), HPCL (20%), BPCL (20%), GSPCL (20%) and Videocon (20%).
The area of the block is 4290 sq. Kms. with a water depth of over 1000 meters and is ~ 250 kms. away from the NW Australian
shore at Carnarvon basin and is in close proximity to major gas condensate production.
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The Seismic acquisition has been completed and data processing is in progress. The Phase-II would commence and drilling of
1 well is scheduled after August 2010. Recently, M/s Sasol International has been assigned 30% PI, with other existing partners
retaining 14% PI. It is planned that M/s Sasol would be the operator after Aug. 2010.
Egypt International 2008 Bid Round-1 by GANOPE
The consortia of M/s GSPC (50%), HPCL (25%) and Oil India Ltd. (25%) were declared winner during Dec. 2008 for two
offshore oil concessions in Egypt at : Block-3 at South Quseir and Block-4 at South Sinai. It is expected that the PSC would be
signed soon for these blocks.

G&G WORKSTATION
4 OF HP-E&P
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In its endeavor to become a well equipped Operator
company, our core group of experts is being developed with
competencies and skills in the entire spectrum of E&P
activities like interpretation, bidding and acquisition
processes. HPCL recently achieved a new milestone by
commissioning its own world class G&G work station.
The Senior Advisors are available to share their valuable
experience, provide guidance to the young team of
Geoscientist and extract the utmost value from G&G
workstation.
Dedicated and Competent Team
The Workstation, which acts as backbone for an E&P
company involves suitable software and hardware for data
interpretation and modeling. Our latest Workstation
equipped with G&G software “Petrel” from M/s GeoQuest
System (Schlumberger) is best suited for correct evaluation
of existing assets and new opportunities.
This software consists the following modules-
· Data import/export
· Seismic Interpretation and Visualization tool
· Well Data Display
· Mapping
· Structural Modeling
· Facies Modeling
· Property Modeling
· Log Analysis And Petrophysics
· Volume Calculation
In today's Competitive scenario HP - E&P is poised to
become a well known competent Global player.
In it's pursuit to become a global E&P Player HP- E&P has
recruited competent manpower from premier institutes of
India. The new young team is getting trained under the
supervision of experienced advisors and trainers at the world
class training Institutes. The Company has adopted modern
management tools such as Balance Score Card &
Competency Mapping for gearing up the team to reach the
new horizons, truly inline with the vision of Exploration &
Production SBU.

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Our E&P
strategy
Using a standard and established procedure for screening of countries in terms of attractiveness and accessibility, selected
countries in North & West Africa, South East Asia-Australia, CIS and Latin America have emerged as top priority focus areas
for HPCL for Strategic Investment Plan in near future.
There would be a simultaneous gradual transition to an Operator business model.
HPCL would enter into partnerships to participate in bidding rounds and acquire assets on farm-in offer through consortia to
build a balanced portfolio in India and overseas.
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hpcl
6 E&P blocks
9
Oman- Block-56
Egypt - South Sinai & South Quseir
Australia WA-388

HPCL
6 E&P blocks
HPCL E&P Blocks
Sl.No. Block Name Block Location Operator Area HPCL's Current
Sq. Km share (%) Status
ONLAND BLOCKS :
1 CB-ONN-2002/3 Cambay GSPC 285 15 Exploratory & Appraisal, Drilling,
Discovery at 8 wells
2 AA-ONN-2003/3 Assam OIL 275 15 Seismic studies
3 RJ-ONN-2004/1 Rajasthan GSPC + GAIL 4,613 20 Seismic studies
4 RJ-ONN-2004/3 Rajasthan OIL 1,330 15 Seismic studies
5 Oman Block 56 Oman Oilex 5,809 12.5 Exploratory & Appraisal, Drilling,
Discovery at 2 wells
SHALLOW WATER BLOCKS
6 MB-OSN-2004/1 Mumbai High GSPC 1,520 20 Seismic studies
7 MB-OSN-2004/2 Mumbai High Petrogas 741 20 Seismic studies
8 South Sinai Gulf of Suez, Egypt GSPC 2,600 25 Seismic studies
9 South Quseir Red Sea, Egypt GSPC 8,287 25 Seismic studies
DEEP WATER BLOCKS
10 KK-DWN-2002/2 Kerala Konkan ONGC 22,810 20 Exploratory Drilling
11 KK-DWN-2002/3 Kerala Konkan ONGC 20,910 20 Exploratory Drilling
12 WA 388P Australia, Carnarvon basin Oilex 4,290 14 Seismic Studies
13 CY-DWN-2004/1 Cauvery Basin ONGC 10,302 10 Seismic Studies
14 CY-DWN-2004/2 Cauvery Basin ONGC 12,059 10 Seismic Studies
15 CY-DWN-2004/3 Cauvery Basin ONGC 12,017 10 Seismic Studies
16 CY-DWN-2004/4 Cauvery Basin ONGC 12,025 10 Seismic Studies
17 CY-PR-DWN-2004/1 Cauvery Basin ONGC 13,451 10 Seismic Studies
18 CY-PR-DWN-2004/2 Cauvery Basin ONGC 9,994 10 Seismic Studies
19 KG-DWN-2004/1 KG Basin ONGC 11,951 10 Seismic Studies
20 KG-DWN-2004/2 KG Basin ONGC 11,851 10 Seismic Studies
21 KG-DWN-2004/3 KG Basin ONGC 6,205 10 Seismic Studies
22 KG-DWN-2004/5 KG Basin ONGC 11,922 10 Seismic Studies
23 KG-DWN-2004/6 KG Basin ONGC 10,907 10 Seismic Studies
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Mailing Information:
Contact Information:
* Hindustan Petroleum Corporation Ltd.
UCO Bank Building, 3rd Floor,
Parliament Street,
New Delhi 110 001. India
Phone: 91 11 23736051
E-mail: hp_ep@hpcl.co.in
Corporate Office :
* Mr. K. Murali
Director - Refineries
Phone : 91 22 22025126
Fax : 91 22 22842450
E-mail : muralik@hpcl.co.in
* Mr. S. P. Singh
General Manager - Exploration & Production
Phone : 91 11 23737897
Fax : 91 11 23727898
E-mail : spsingh@hpcl.co.in
Petroleum House, 17, J. Tata Road, Churchgate, Mumbai 400 020. (INDIA).
www.hindustanpetroleum.com
B&F: +91 22 2668 6633