Edited Excerpts:
Q. With your major net zero investment plans, when do you see yourself as purely energy company?
A. We are already an energy company. Having acquired NRL now, we have our presence all across the value chain of hydrocarbon. So, today, we have an upstream portfolio, we have a production, and we are also there in downstream by virtue of NRL Refinery acquisition. And we have not stopped there. If I look at further downstream. We have recently approved a 360 ktpa of polypropylene unit as an integrated refinery-cum-petrochemical complex. This apart, NRL is also executing at 2G ethanol bamboo based plant which is going for mechanical completion by December 2023 or March 2024. So, we are already an integrated energy company and we also have portfolios in solar and wind. Now, having said this, we have aligned to the priorities of government of India and are commitments in COP 26, we have already committed that Oil India limited along with NRL will achieve its net zero commitment by 2040. And we have already earmarked a budget provision of about ₹25,000 crore towards this initiative.
And this includes, out efforts in terms of bioethanol, that is 2G ethanol. Our efforts to reduce gas flaring by creating infrastructure for evacuation of natural gas. And feeding it to the northeast gas grid and the national gas grid. This also includes displacing the diesel component in our operational area by natural gas.
This also includes the renewable energy parcel along with the government of Assam with a number called 640 MW of solar. The first stage is 25 MW. And we are also discussing with Himachal Pradesh government for about 150 megawatt of solar. We are also having some discussion with Odisha government on solar.
Q. In all these projects is the state government putting some equity?
A. In terms of Assam, there is a local joint venture with a state government entity. In Himachal Pradesh, that’s the model. We will strongly believe that a local entity collaboration, helps us to get the traction in the state and the power purchase agreement becomes easier. So we would do anything always in collaboration.
Q. Will you look at inorganic growth in green energy space?
A. We are primarily an E&P company. Our focus is domestic exploration and production. The renewable for Oil India Limited will be a vertical. It will be an alternative energy vertical. And our interest in renewable is to use that for the purpose of our net zero upsetting and for the purpose of wheeling the electricity for green hydrogen. So with this construct, if government of Assam has created a narrative for 25 MW now, to 620 MW, Himachal Pradesh government is giving us an access to put up 150 MW. I think this is for the time being, we are looking at it. So because in the never say never you don’t know right but as of now this is the portfolio.
Q. What are your plans for green hydrogen?
A. NRL has already placed an letter of award, or work order is already placed for about 2.4 ktpa (kilo tonne per annum) of green hydrogen. As Oil India limited, we are supposed to have a target of about 20 ktpa of green hydrogen…maybe in next, five years horizon and out of that the effort would be to see a 50-50 mix of electrolyzer or other technologies. It is not a final number. But the idea is that 50% could be from an electrolyzer route because you need water. Electrolyzer is access to water. That is where Himachal Pradesh government is coming handy because we will have access to water. So Himachal Pradesh government gives us access to water and in Assam we will have access to water.
We are also participating in the hydrogen valley concept. So hydrogen valley government has planned for about seven hydrogen valleys. So we have collaborated or agreed to partner with IIT, Guwahati for a possible hydrogen valley concept in northeast, and we have also partnered with IIT Bhubaneswar for a possible hydrogen valley, which not yet has taken shape.
For hydrogen valley, we have submitted our application for north east. For Odisha, I think we have spoken to IIT Bhubaneshwar because as part of the hydrogen valley, the concept is a research organization will front-end it and they need collaborations for industry partner. We have evinced our interest for collaboration as industry partner.
Q. What is your capex for the current fiscal?
A. This year we are going to do about ₹7,500 crore in terms of our upstream capex and another around ₹7,000 crores or ₹7500 crore as part of our downstream capex.
Q. Coming back to your E&P business, as of today how much are you producing?
A. Last year we did about 3.2 million metric time. That goes to not just NRL because what Oil India does, it runs the oldest pipeline in the country and we kind of the consolidate the ONGC field crude and out crude and that goes to Digboi, that goes to NRL, that goes to Guwahati. Depending on situations it also goes to Bongaigau. This 3.2 million metric tonne gets consumed in the north east.
Q. How many active work programmes are underway right now?
A. As part of our upstream campaign, we have 29 OALP blocks right now and we have about 60,000 square kilometer of area available with us for the purpose of exploration. All are active. We have about 5,000 square kilometer of mining lease which is primarily in northeastern part of the country and in Rajasthan, Jaisalmer basin plus we have this Open Acreage Licensing Policy areas.
The OALP or the NELP blocks that we have today they would have a sequence of operation. First, we’ll have to do 2D or 3D seismic, acquisition, processing, and interpretation. Basis API seismic you would identify prospective locations which is primarily drilling locations. In the year, FY22, we drilled about 38 wells. In the year FY23, we drilled about 45 minutes. The current year and then the year after we plan to drill about 70 to 75 wells (each year). 70-75 wells this year and 70-75 wells next year.
Oil India is now planning or has already drilled deep wells. Because earlier we were looking at 3000 meter-4000 meter depth. Now we are looking at 6500 meter depth. Any standard in this part of the globe, 6500 metre is a big number. So we have already attempted and we could go up to 5900 meters. This is not the only one. We have an array of drilling wells waiting to be drilled with extended reach drilling below the area, like, you would drill here from a single pad, and then you reach out like this, right, in a extended reach radial pattern.
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Updated: 07 Oct 2023, 01:18 AM IST