ONGC-UNSW partnership to tap unconventional oil resources

Joint collaboration seeks solution to depleting oil reserves tapping other unconventional resources

BY USHA \ RAMANUJAM ARVIND

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The UNSW School of Petroleum Engineering (SCOPE) has forged a crucial researd1 agreement w ith the Indian government run Oil and Natural Gas Corporation Ltd. (ONGC) to evaluate the production potential of an "unconventional o il resource".

The partnershi p will explore the " fea sibili c:y of recovering hydrocarbo n fuel from bardco- access offshore geological structures known as basement reservoirs".

ONGC has been particular ly interested in its Heera Fracmred Basin at M umbai Offshore located on the western continental shelf of India.

Working closely with its coU.L1terparts in US, UK, Germany, France and Japan, SCOPE is a recognised leader in the area of geothermal e nergy technology.

The latest memorandtm1 of understanding, valued at $2.05 million over the next two-anda- half years, i s the fourth major project between UNSW and ONGC. It builds further in to the existing five-year partnership, entered first in 2002 and which has since been extended twice "This i s an important partnership fo r UNS\Xl that has g rown with time," stated Professor Val Pinczewski, Head of SCOPE.

"ONGC certainly have a need for the sort of high l evel technological developments we have b een making, and we t h ink they are an excellent partner to work ,v ith," he noted. "At UNSW we have ongo ing programs in geotherm al energy Jed by Professor Sheik R ahman, which basically look at d1aracrerising fracture systems in rock structures and forming strategies to develop these fractu red reservoirs. We also have progran1s in fracturing hard rocks co enhance productio n. Together, these researc h efforts will provide the framewot:k for d1is project".

" T he actual technology you n eed co develop these reservoirs is not m uch different from di e technology used co develop shale gas," he ford1er explained. " This is already ver y big in the US, and has d ie potential co become very b ig in A u stralia. So fo r us there are some really good synergies betwee n what we can do here in d1e local context and what we're doing internationally witb partners like O t GC."

According to Professor Pinczewski, UNSW's experie n ced engineers and geo -scientists will be deve loping a range of mathematical models m predict fracture characteristics of d1is particular basement rock type, simul ace fluid flow through its interconnected fracntre syscem and estimate the hydrocarbon potential.

Lacer on , they will be conducting experiments w ith rock samp les provided b y ONGC and applying their models in the field to test how much o il is recoverable.

"For t he last IO years we bave been cooperating on differ ent areas of hydrocarbon reservoir d evelopmem During this period two projects have been completed, one is in progress and the fourth - die fractured basemenc study is about to st art", Professor Rahman told J11dit111 Link.

"SCOPE has developed specific tools and methodo logy for characterisation and development of fractured basement a nd th.is partnership g ives us an opportunic:y to appl)' di e knowhow char we have deve loped for exp loitation of geothermal resources i n A u stralia," he added

Professor Rahman has made a pioneering contribution i11 the development o f Australian geother mal resources, particularly drilling mediod s and equipment for higWy stressed and abras ive e nvironments. He has advanced the teclmo logy of hydraulic frac tming to stimulate and develop naturally fracmred reservoirs. This technology has alread y been successfully applied in New Somh Wales, Queensland, Sou th Australia and Victoria.

Additionally, the work will feed into the Australian Energy

Research Institute, a sustainable energy d1ink - cank based at UNSW which conneccing engineers, scientists, economists and policy experts, both Pinczewski and Rahman beli eve.

Natutally fow1d in Earth's sub- surface, hydrocarbons are currendy the primary source of energy supply. The extraction of liquid hydrocarbon fuel (otherwise known as petroleum) from sedim entary basin s is integral to modern en ergy development.

It has been estimated diat a large proportion of the world 's proven oil reserves are found in naturally fracmred reservoir rocks.

A subset o f naturall)' fracmred reservoirs, basement reservoirs has been exploited for a while now. Since tbe la ce nineties however, there has been marked increa se in interest largel y due to in Aated o il prices that have forced researchers to delve deeper into alternative methods that were previou sly deemed uneconomical. As well technology for accessing remote oil sources has improved, particularly drilling m ethods, sophisticated down - ho le tools and seismic techniques.

The MoO will benefit ONGC significantly as well.. With its ever- increasing population, India is fadug acme energy shortages. Tapping into existing but hitherto Lmidenti6ed and und er-utilised resources like basement reservo irs could be a welcome addition. Since oil discovery in 1974, ONGC has made substantial investments for additional development works at d1e western she lf. The basin is d1e largest in India and includes Mumbai High, Bassein and Heera and Neelam produ cing fields.

\Xlith ONGC recendy striking new reserves off Mwnbai coast, perhaps d1e biggest ever so far, SCOPE i s alread y looking to closely collaborat e on tbe new development as well.