Exploration and Production

Essar Energy has a diverse portfolio of 15 blocks and fields in the various stages of exploration and production of oil and gas in India, Indonesia, Madagascar, Nigeria and Vietnam.

Essar Energy has a diverse portfolio of 15 blocks and fields in the various fields of exploration and production of oil and gas in India, Indonesia, Madagascar, Nigeria and Vietnam. Total reserves and resources across these blocks is 2,034 mmboe.  Essar Energy has net 2P (proven and probable reserves)  and 2C (contingent resources) of 209 mmboe, best estimate prospective resources of 929 mmboe and an un-risked in-place resource base of 895 mmboe. 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.

During 2010, the company was awarded four exploration blocks under the Government of India's CBM-IV bid round. These blocks, together with the existing CBM block at Raniganj, West Bengal, gives Essar Energy the largest CBM acreage in India and over 10 trillion cubic feet (tcf) of reserves and resources. The Company has signed the CBM contracts for these blocks and is in the process of obtaining appropriate licenses, including the Petroleum Exploration License. The Company is also planning the initial work program for these blocks.

 

DEVELOPMENT AND PRODUCTION ASSETS

Mehsana Oil Block, Cambay, India - 70% interest

The Mehsana Oil Block is located on the eastern flank of the onshore Cambay basin in Mehsana, Gujarat, India. Essar Oil has a 70% participating interest (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 refineries. In addition, two more discoveries in the block have been notified and are being assessed for commercial viability. Cumulative oil production for 2011 in Mehsana is 4053 barrels.

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.

Raniganj has current test production of around 22,000 scm/d of gas. 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

OPL 226 Block, Nigeria - 63% interest

The OPL 226 offshore block in Nigeria is situated in the central offshore Niger delta in water depths of between 40 and 180 meters. Wells drilled by earlier operators within the block area have shown the presence of good quantities of oil and gas, as interpreted from log and well data. The PSC for the block was signed on March 10, 2010. We are currently finalising our work program for this asset.

Rajmahal Block, Jharkhand, India - 100% interest

Essar Oil has been awarded the Rajmahal CSG Block in the CBM IV round of bidding conducted by the Government of India. This block is approximately 100km from our existing Raniganj CSG 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.

Block 114, Vietnam - 50% interest

Block 114 is located in shallow waters off the coast of Vietnam and is in the vicinity of a gas discovery in Block 112. We farmed out 50% of this block to ENI on 1 February 2013.

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.

Mumbai Offshore Block, Mumbai, India - 50% interest

The Mumbai Offshore Block is located in the Mumbai basin, west of the Bombay High field. We and Noble Energy International Limited each hold a 50% participating interest. We have recently commenced exploration activities and are currently reprocessing the existing seismic data, including 1,000 line kilometers of 2D seismic survey data.

Madagascar Blocks, Madagascar - 100% interest

We currently own 2 blocks in Madagascar. These onshore blocks are located in the Morondava basin in the western part of Madagascar. We hold a 100% participating interest in these blocks and are the operator. The PSCs for our Madagascar Blocks were entered into with the Madagascar Office of National Mines and Strategic Industries in October 2006. The initial exploration period under the PSCs is eight years, divided into three phases, with the first phase being four years and the second and third phases being two years each.

South East Tungkal Block, Indonesia - 49.5% interest

We have 49.5% participating interest in the South East Tungkal Block in the south Sumatra basin of Indonesia, with the remaining 50.5% interest being held by the GSPC. The exploration activities in this block are currently at a preliminary stage. GSPC is operator of the Indonesia Block.