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Hydrocarbon Vision 2030 (ஹைட்ரோகார்பன் தொலைநோக்கு ஆவணம் 2030)

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5.1.4 Action areas for upstream sector<br />

The key action areas to improve production of oil and gas in NER have been described below.<br />

Increasing production from mature fields<br />

Production enhancement contract (PEC)<br />

Use of new technology<br />

Enhancing exploration activities<br />

Conversion of 2P to 1P reserves<br />

Development of yet to find areas (YTF)<br />

Resolution of disputes<br />

Offering premium on gas production in high operational cost areas<br />

Policy level recommendations<br />

Re-allotment of relinquished blocks/areas to NOCs on nomination basis<br />

Concept of zero phase of exploration<br />

5.1.4.1 Increasing production from mature fields<br />

Current production in NER is mainly from mature fields and advanced techniques are required to<br />

arrest the decline in production from them. The following methods can be adopted to increase<br />

production from the mature fields.<br />

Production enhancement contract<br />

Use of new technology<br />

(i)<br />

Production enhancement contract<br />

PECs are contracts that are signed between oil field services (OFS) companies and NOCs for mature<br />

fields, wherein, a NOC asks an OFS to provide its services for increasing production from a mature<br />

field. The service company uses integration of new technologies, work practices and enhanced oil<br />

recovery techniques to increase production.<br />

The general terms of such a contract are as follows:<br />

Contracts are generally for a period of 15/20 years<br />

Control of all assets, reserves and production remains with the asset owner<br />

A joint management committee guides and directs the operations from the block<br />

All new capital expenditure is made by the service company<br />

Figure 20: Production enhancement model<br />

Source: Petrofrac<br />

59

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