Improved oil recovery project at Geleki

Vol 5, PW 20 (21 Nov 01) Exploration & Production

Oil production is falling at ONGC's Assam fields and Geleki is no exception.

Here ONGC is putting in place a two-part improved oil recovery project to 2011 at a total cost of Rs390.31cr ($84.78m) "to maximise recovery with optimum inputs by tapping undrained oil and acreage reduction." But current plans will go ahead only with part one - up to 2004-05 - at a cost of Rs283.48cr ($60m). What does ONGC propose at Geleki from now till 2011 See below: Drill 25 new infill/sidetrack wells (16 wells will be drilled upto 2004-05).

Average depth of each well: 4,200 metres. On completion each well is expected to produce @ 20 t/d Drill seven water injectors Install six high liquid withdrawal pumps.

Each well is likely to produce @ 20 t/d Expand the capacity of the effluent treatment plant to 2,500 cm/d from present 1,000 cm/d Lay approximately 50 kilometres (32 kms upto 2004-05) flow lines of 4-inch diameter; 50 kilometres (32 kms upto 2004-05) gas injection lines of 2 7/8-inch diameter; 14 kilometres water injection lines of 3.5-inch diameter Drill 24 wells (19 nos upto 2004-05) for zone transfers. On completion each well is expected to produce @ 10 t/d Drill 10 wells for hydro fracturing, of which 4 nos upto 2004-05.

Each well is likely to produce @ 17 t/d We are told that work after 2004-05 will be subject to mid term reviews. On full implementation oil recovery is expected to be 19.01% by 2020 from the present 8.28%.

What is the post-tax financial analysis of the project at various oil prices Read on. Oil price ($/barrel) Total Capex (Completion cost) Total operating expenses Total revenue IRR (%) NPV@16% 16 Rs476.92cr Rs1, 122.82cr Rs2, 484.85 15.41 Rs6.88cr 18 Rs2, 813.17 20.92 Rs58.76cr 20 Rs3, 141.50 26.07 Rs122.70cr