National Gas Hydrate Programme - 02

National Gas Hydrate Programme (NGHP) is of national importance considering India’s phenomenal growing
energy demand. The programme was initiated in 1997 with a Steering Committee and a Technical Committee of
NGHP for implementing the programme. Based on the review of seismic data by the Technical Committee, two
areas in Indian waters, one along East Coast and other on West Coast have been identified as “Model Laboratory
Areas” for further R&D work. DGH is the coordinator of the programme. Review of various projects under this
programme is done by a Steering Committee set up by the Ministry of Petroleum & Natural Gas. OIDB has so far
given grant to the tune of Rs.142 crore approximately against a sanctioned amount of Rs.208 crore
approximately for various activities under NGHP up to 31.03.2016.

Based on Geo-physical, Geological and Geo-chemical data, NGHP identified four offshore areas for gas hydrate
coring/drilling operations. Dedicated operations were carried out in these areas during April, 2006 to August,
2006 through a consortium consisting of Overseas Drilling Limited, Fugro, McClelland Marine Geosciences,
GeoTeK Limited, Lamont, Doherthy, Earth Observatory and scientists from numerous universities and national
laboratories.

The NGHP efforts in Indian Offshore has led to the following:

 Conducted comprehensive analyses of gas-hydrate-bearing marine sediments in both passive continental

margin and marine accretionary wedge settings;

 Discovered gas hydrate in numerous complex geologic settings and collected an unprecedented number of
gas hydrate cores (more than 2800 m from 21 sites and 39 holes);

 Delineated and sampled one of the richest marine gas hydrate accumulations yet discovered in the world
(Krishna-Godavari Basin) ;

 Discovered one of the thickest and deepest gas hydrate occurrences yet known which revealed gas-hydrate-
bearing volcanic ash layers as deep as 600 meters below the seafloor;

 Established the existence of a fully developed gas hydrate system in the Mahanadi basin of the Bay of Bengal;
M/s GAIL, OIL and ONGC & IOCL have contributed Rs.18 crore (approximately) each towards the project.

In addition to above, the Steering Committee of NGHP approved the execution of NGHP Expedition-02 in the 15th
meeting held on the 7th October, 2013 at MoP&NG. As per the directives of the 15th Steering Committee Meeting
of NGHP, ONGC, vide letter dated 01.07.2014, have submitted the cost estimates for the NGHP Expediton-02. The
estimated cost for drilling/coring/LWD/MWD/WL Logging for 40 wells at 20 sites has been worked out based
on the budgetary quotations from two agencies i.e. SIEM Offshore for JOIDES Resolution and Japan Drilling
Company for D/V CHIKYU followed by the tendering procedure of ONGC for hiring of drill ship and services for
executing the NGHP Expedition-02.
The budgetary quotes from SIEM Offshore (for D/V JOIDES Resolution & Services) is US $ 79,411,396/- (Rs. 492
Crores). Estimated cost based on the budgetary quotes from JDC (Japan Drilling Company for D/V CHIKYU) is US
$ 96,639,712 (Rs. 619 Crores). However, the final cost of Tendering of Drill Ship and services based on the
tendering procedure of ONGC works out to be Rs 616.95 Crore and the same has been approved by the NGHP
Steering Committee in its 17th meeting held on 06th Jan 2015.

2. The Steering Committee has approved the following cost sharing in view of the enhanced cost of Rs.616.95
crore for execution of NGHP R&D Expedition-02:-

Organisation Proportionate Share Cost

(Rs. in crore)

OIDB 50% 308.475

ONGC 20% 123.390

GAIL 10% 61.695

OIL 10% 61.695

IOCL 10% 61.695

3. The Steering Committee of NGHP in its 17th meeting held on 6.1.2015, enhanced the cost of NGHP Expedition-
02 to Rs.616.95 crores and accordingly OIDB’s share was also increased to Rs.308.475 crore.
4. DGH vide letter no. DGH/NGHP/Budget/2015-16/4 dated 12/5/2016 has informed that Government
approval for charter hiring of DP Vessel Chikyu with integrated services for the execution of NGHP
Expedition-02 at the project cost of US$101.12 Million or equivalent in INR is received at DGH vide letter
No.I-12011/7/2013-IC-I/ONGC-I dated 6/5/2016 and ONGC vide letter dated 9th May,2016 has requested
OIDB to reimburse an amount of Rs.320,97,27,490/- to ONGC i.e. 50% of the total amount spent US$100.04
Million on NGHP Expedition-02.
5. Accordingly, OIDB has released its share of expenditure of Rs.308.475 crore to ONGC in June,2016 after
obtaining the approval of Chairman, OIDB. As regards release of balance amount of Rs.12, 49, 77,490/- to
ONGC towards OIDB’s share of expenditure, the approval of OID Board is being taken separately.