Vision & Objective

10 Years Vision of Petroleum Sector in Rajasthan

  1. 1. Hydrocarbon Production Strategy in Rajasthan.
  2. 2. Development of Heavy Oil Resource in Rajasthan.
  3. 3. Exploitation of Natural Gas Resources of Jaisalmer Basin & Barmer-Sanchore Basin for Power Generation & other commercial use.
  4. 4. City Gas Distribution Projects in various cities of Rajasthan.
  5. 5. Value addition of Petroleum Resources through Refinery cum Petrochemical Complex
  6. 6. Strategic pool for conservation of crude oil
  7. 7. Revenue from Petroleum Sector

Hydrocarbon Production Strategy in Rajasthan

4.2 billion barrels of crude oil i.e 500 MMT (Million Metric Tonnes) in-place reserves have been assessed in 38 discovered fields of Barmer-Sanchore Basin. As per the latest estimates of Cairn India, Barmer-Sanchore Basin has resource potential of 7.8 billion barrels (i.e. about 900-1000 MMT) of oil equivalent. Commercial Production of crude oil has been commenced from Mangla Field on 29th August, 2009 and at present about 1,60,000 - 1,65,000 barrels of oil per day is being produced from 14 Oil/Gas Fields namely Mangla, Bhagyam, Aishwariya, Saraswati, Raageshwari oil, Shakti, ABH, Guda, NE, NI, Raag Deep Gas, KW2, Guda S-7 & Vandana.

Development of Heavy Oil Resource in Rajasthan

Pursuant to the agreement with PDVSA Company of Venezuela, 25.00 MMT of Heavy Oil & 53.00 MMT of Bitumen in-place reserves have been assessed in Bikaner-Nagaur Basin by Oil India Ltd (OIL) for exploitation. Trial production of heavy oil has conducted and about 470 barrels have been evacuated. Commercial production shall commence after successful completion of pilot test. Oil India Limited has planned to drill 3 more pilot wells to establish reproducibility under Poonam discovery field as well as in Baghewala ML area.

Exploitation of Natural Gas Resources of Jaisalmer Basin & Barmer-Sanchore Basin for Power Generation/ Commercial use

A total of about 30 billion cubic meter of lean & rich gas reserves in-place have been proved by OIL, ONGC, Cairn India & Focus Energy in Jaisalmer Basin & Barmer-Sanchore Basin. About 0.73 mmscmd Natural Gas is being produced by OIL & ONGC from Tanot - Dandewala & Manhera Tibba areas of Jaisalmer Basin for the supply to 110 MW unit of Ramgarh Power Plant. Focus Energy has entered into an agreement with GAIL (India) Ltd and Rajasthan Rajya Vidhyut Utpadan Nigam (RRVUN) for supply of Natural Gas to 110 MW unit as well as additional 160 MW unit of Ramgarh power plant. Presently, 0.8 mmscmd natural gas is being produced from SGL Field (Shahgarh area) for existing units (110+160 MW) of Ramgarh Power Plant. Production of Natural gas has also been commenced from Raageshwari Deep Gas Field of Barmer Basin, and about. 1.6 mmscmd is being utilized for internal petroleum production operations and about 0.8 mmscmd is being supplied to GNFC & KRIBHCO.

City Gas Distribution Projects in various cities of Rajasthan.

City Gas Distribution Sector includes Piped Natural Gas (PNG) supply to Domestic Consumer and Commercial Consumers like Hotel, Restaurants, Hospitals etc. Provision is also there for supply of piped gas to potential industrial consumers provided proper assessment of requirement of Industrial fuel is made.

PNGRB has authorized GAIL (India) for establishment of city gas distribution network in Kota city. GAIL has commissioned CGD Stations in Kota city for supply PNG to domestic and commercial consumers. Presently, 3000 domestic, 24 industrial and 09 commercial consumers are connected with PNG.

Recently, PNGRB has included 6 Geographical Area (GA) of Rajasthan for development of CGD Network in 9th round of City Gas Global Bidding. These Geographical Areas (GA) are spread over in 12 districts viz. Barmer, Jaisalmer, Jodhpur, Alwar (other than Bhiwadi), Kota (except area already authorized), Baran, Chhitorgarh (only Rawatbhata Taluka), Bhilwara, Bundi, Chhitorgarh (other than Rawatbhata), Udaipur, Dholpur.

Value addition of Petroleum Resources (Refinery Cum Petrochemical Complex and Ancillary Units based on petro & petrochem products)

MoU entered between GoR and HPCL on 18.04.2017 for setting up of 9 MMTPA Refinery cum Petrochemical Complex in Joint Venture.

This project is integrated with Refinery & Petrochemical Complex, which is first of its kind in India.

Project Details


• Project Cost – Rs 43,129 cr

• Debt Equity Ratio – 2:1

• Equity Share – HPCL 74% & GoR 26%

• VGF – Rs 1123 cr interest free loan by GoR for 15 years and repayment by HRRL from 16th year onwards

• Products – Fuels & Petrochemicals

• Project Location – Pachpadra, Barmer

• 28 MGD Water from IGNP allotted by GoR

• A total of 4914.41 acre government land allotted by GoR viz. 4567.32 acre for project and township; 250 acre for marketing terminal and 97.09 acre for reservoir & pumping station

Benefits to the State

• 2.5 MMTPA Rajasthan crude shall be utilized till the project life. In case of non-availability of Rajasthan crude, it would be substituted by imported Arab Mix crude for the project life of the refinery without any cost enhancement.

• Dividend from 26% Equity share of GoR in the project.

• Additional Revenue to the State Government by way of VAT on indigenous crude petro-products and petro chem products.

Socio-Economic Impact of the Refinery-cum-Petrochemical Complex:

• The proposed Refinery has the potential to become an anchor industry for developing downstream and other service sector industries in and around the region.

• Due to its very nature, petrochemicals is an ‘enabler’ industry playing a vital role in the functioning of virtually all key sectors in the economy including packaging, agriculture, infrastructure, healthcare, textiles, automobile and consumer goods. Petrochemicals provide inputs which enable almost all other sectors to grow.

• With RRP, there shall be a Direct, Indirect and Induced economic impact on the economy of Rajasthan, which shall result in substantial increase in Output, Employment and Tax earnings in the State.

• This would provide opportunity of employment directly to the 1000 persons in refinery operation and would impact indirect employment to the thousands of people. Priority would be given to the local people.

• State will make the effort for the development of Green Zone and new industrial area in vicinity of Complex.

Strategic pool for conservation of crude oil

Bikaner region of Rajasthan has been selected for strategic Crude Oil Storage geographically and geologically to provide energy security to the country in strategic time with other 4 locations in India viz Mangalore (Karnataka) Vishakahpatnam (Andhara Pradesh) Padur (near Udipi, Karnataka) and Chandikhole(District Jajpur, Odisha).

Revenue from Petroleum Sector

Petroleum Sector has now become the important source of Revenue in the State since commercial production of crude oil & natural gas from Barmer-Sanchore Basin has commenced from 29.08.2009 & 23.03.2013 respectively and production of natural gas from Jaisalmer basin has been enhanced substantially on commencement of production of natural gas from Shahgarh sub- basin from 08.07.2010 in addition to the Tanot-Dandewala, Manhera-Tibba of ONGC and OIL. Revenue is accrued in terms of royalty on production of crude oil & natural gas, PEL fees, dead rent etc.

Revenue accrued during 2008-09 was Rs 8.20 Crore which has been enhanced significantly from 2009-10 onwards after production of Crude Oil. Hence, revenue accrual during 2010-11 and 2011-12 was Rs 1630 crores and Rs 3435.61 crores respectively. However, the Revenue was enhanced during 2012-13 to Rs 5069.88 crores as per production profile of 175,000 barrels per day and Rs 5953.11 crores were accrued against the target of Rs 5500 crores during 2013-14. Subsequently, revenue was downed to Rs. 4848.70 against the target of Rs 5300 crores during 2014-15 due to rapid fall in crude oil prices and dollar exchange rate. Revenue of Rs 2341.43 crores accrued during 2015-16 due to continued price fall and accrual restricted to Rs 2331.73 crore during 2016-17and slightly enhanced to Rs 2579 crore during 2017-18.

Now, on improvement of International crude price, revenue target for 2018-19 has been fixed to Rs. 3500 crores.

Objective

A separate Petroleum Directorate is functioning for Hydrocarbon administration by monitoring of upstream E&P Sector and to gear up other midstream and downstream petroleum activities for planned development of the sector in the state.

Carving of new blocks for the inclusion in various rounds of NELP, CBM, DSF/ OALP (HELP) Global Bidding by MoPNG, Govt. of India.

To deal the regulatory issues related with Petroleum Exploration Licenses (PELs) & Petroleum Mining Leases (PMLs) and to collect the revenues on production of Crude Oil & Natural Gas.

Scope of new projects viz: Establishment of Gas Grid, City Gas Distribution Network, Underground Coal/Lignite Gasification (UCG), Coal to Liquid (CTL), Shale Oil/Gas, Petrochemicals, Refinery etc for value addition.

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