Exploration & Production

Exploration & ProductionEssar Oil’s E&P business currently has ~1.75 billion barrels of oil equivalent of reserves and resources. This is spread across nine oil and gas blocks.  It holds one of the largest acreages of Coal Bed Methane (CBM) blocks in India. Gas resources across the five CBM blocks are to the tune of 10 trillion cubic feet.

The company's development and production assets include the Raniganj Block in West Bengal, Ratna / R-Series Fields in offshore Mumbai and the Mehsana Block in Gujarat. The Raniganj Block has certified recoverable resource of 558 billion cubic feet (bcf) and is the first Coal Bed Methane (CBM) block under development.

Essar Oil is India’s largest producer of CBM gas. 

DEVELOPMENT AND PRODUCTION ASSETS

Mehsana Oil Block, Cambay, India - 100% interest*

The Mehsana Oil Block is located on the eastern flank of the onshore Cambay basin in Mehsana, Gujarat, India. Essar Oil has a 100% participating interest in all fields except ESU in which it has 70% (post 30% back in rights exercised by ONGC after discovery). It has executed a 25-year production sharing contract (PSC) with the Government of India and ONGC in July 1998. We are currently producing crude oil from one of its fields, which is being sold to one of the government-owned refinery. Cumulative oil production for 2012 in Mehsana was ~7,300 barrels.

* 70% in ESU field

Raniganj Block, Raniganj, West Bengal, India - 100% interest

The Raniganj Block is located in the Damodar Valley coal field in the Raniganj region of West Bengal. Essar Oil entered into a 35-year contract with the Government of India for the exploration and production of CBM in the Raniganj Block in July 2002.

We have achieved production of 0.65 million scm/d (standard cubic meters per day), with an open flow potential of 0.75 million scm/d, making us India’s largest CBM gas producer. The total proven and probable reserves (2P) at Raniganj, evaluated as at 1 September 2011, are 113 billion cubic feet (bcf) gross, or 18.8 million barrels of oil equivalent (mmboe), while best estimate contingent resources (2C) are 445 bcf gross, or 74.1mmboe.

The latest evaluation also shows that there also remains 297bcf gross, or 49mmboe, of best estimate prospective resources.

Ratna and R-Series, Offshore Mumbai, India - 50% interest

The Ratna & R-Series consist of a number of offshore oil and gas accumulations located approximately 130km southwest of Mumbai. Essar Oil holds a 50% interest in these fields in a consortium together with ONGC (40%) and Premier Oil (10%). ONGC had previously drilled 35 exploration and nine development wells in the Ratna Fields. There are certain existing facilities, including an R-12 platform and a single-buoy mooring terminal, that may be used after refurbishment alongside additional development infrastructure and facilities to be put in place for the fields' development. The development of the field remains subject to signing the Production Sharing Contract with the Government of India.

EXPLORATION ASSETS

Exploration assetsRajmahal Block, Jharkhand, India - 100% interest

Essar Oil has been awarded the Rajmahal CBM Block in the CBM IV round of bidding conducted by the Government of India. This block is approximately 100km from our existing Raniganj CBM Block and covers an area of 1,128sq. km. The initial exploration period for this block is for a period of two years from the effective date. We will be required to complete 30 core holes and two test wells during this exploration phase.

Talchir Block, Orissa, India - 100% interest

Essar Oil has been awarded the Talchir Block in the CBM IV round of bidding conducted by the Government of India and covers an area of 557sq. km. The initial exploration period for this block is for a period of two years from the effective date. We will be required to complete 30 core holes and two test wells during this exploration phase.

IB Valley Block, Orissa, India - 100% interest

Essar Oil has been awarded the IB Valley Block in the CBM IV round of bidding conducted by the Government of India and covers an area of 209sq. km. The initial exploration period for this block is for a period of two years from the effective date. We will be required to complete 25 core holes and two test wells during this exploration phase.

Sohagpur (NE) Block, Madhya Pradesh, India - 100% interest

Essar Oil has been awarded the Sohagpur (NE) Block in the CBM IV round of bidding conducted by the Government of India and covers an area of 339sq. km. The initial exploration period for this block is for a period of two years from the effective date. We will be required to complete 25 core holes and two test wells during this exploration phase.

Assam Blocks, Assam, India - 100% interest

The Assam Blocks are located in the prolific Assam-Arakan frontier basin in the north-eastern part of India. We currently own two blocks in Assam and have completed 2D seismic analysis of both the blocks. EOL hold 10% stake in the blocks, with the rest held by the parent company.

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