SINGALE 1-24.cdr - ONGC

Insights on performance
Director (Exploration)
D K Pande
The objective of an E&P company is to find oil and gas in commercial quantities and to produce it in such a way so as to
provide maximum return on the capital employed. Though exploration of oil and gas is a risky business where inputs are
deterministic but the output is probabilistic, it is a vital service towards fulfilling the energy needs of our nation. We have
been in the E&P business for more than five decades. Our steady performance in reserve accretion was a result of judicious
planning and use of high end technology that has led to present reserves of 1174.92 MTOE (excluding JV’s and overseas
assets). During these years, we have also brought six of the seven basins on the hydrocarbon map of India.
Intensified exploration in conventional and difficult fields
Exploration has become increasingly challenging with the easier-to-find oil fields already been discovered. We have
embarked upon a three-pronged Exploration Strategy: (i) intensive exploration in the proven areas to achieve field growth,
(ii) extensive exploration to fan out in the thrust areas and unconventional resources, and (iii) knowledge building through
alliance with global majors in the areas where success has been elusive.
During the reporting period, we have made 21 discoveries which include 11 new prospects (1 deep water, 3 shallow water
and 7 onshore) and 10 new pools. In the latest round of bidding under NELP-VIII, we have been awarded 17 (14 as operator)
of the 31 blocks awarded. We participated in all eight NELP rounds and were awarded the highest number - 121 out of 242
of bid blocks (50% of the blocks).
Rising cost of exploration
With most of the easily accessible and low risk areas being explored and discovered, the future exploration has to progress
in logistically difficult and relatively less known terrains including frontier areas, basins and deepwater areas. As
mentioned, we are playing a pioneering role in deepwater oil and gas projects which are some of the most challenging E&P
endeavors.
Technology is the key driver in managing the rising cost of exploration. We have a three-pronged strategy on bringing in the
state-of-the-art technology: (i) pilot testing the new technology before field scale implementation to test its efficacy,
(ii) adoption of globally proven technology, and (iii) collaborating with global majors who have successfully tested the
technology. These technologies are capital intensive but are required to reduce the uncertainties involved in unknown and
logistically difficult terrains. Benefits in terms of reducing exploration risk through better imaging already acquired through
adoption of some of these technologies have been much higher than the expenditure made. We have also ensured
Activities during the early stages in exploration
24