ANNUAL REPORT

FOR THE YEAR

2011-2012

PRODUCTION GAS DEPARTMENT

OIL INDIA LIMITED, DULIAJAN

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1.0 INTRODUCTION:

Year 2011-12 stands as another challenging year for “Team Production Gas” as it
had to meet continuously increasing gas commitments of the Company. Team
Production Gas powered by its conviction and commitment could push boundaries
once again to newer horizons by achieving not only the highest ever production of
2409.92 MMSCM crossing the annual target but also was able to record highest
ever gas sale of 1874.61 MMSCM in the history of OIL.

Another noteworthy achievement is successful commissioning of BOO (Build-

Own-Operate) compression services to monetize flared gas. The initiative has
resulted in utilization of 38.79 MMSCM of gas during the year and helped in
reducing the gas flare.

Production Gas family could march ahead towards its goals due to its commitment
and hard work coupled with zeal and enthusiasm. There were of course, ups and
downs along this remarkable journey towards excellence which were both of
operational and environmental nature. However, they left the members more
enlightened and bestowed with rare wisdom and better confidence to face tougher
challenges in future.

This note presents glimpses of various activities performed by the department

during the year.

2.0 TARGET AND ACHIEVEMENT, (Assam & AP):

Target Achievement
Operational Parameters % of Achievement
(MMSCM) (MMSCM)
Gas Production 2398 2409.92 100.5

Gas Sale 1894 1874.61 98.98

Shortfall in Sale is mainly due to low gas withdrawal by BVFCL & LTPS during April
& May 2011.

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 Gas production and sale for the last 3 years were as under

Production(MMSCM) Sale(MMSCM)
% %
Year
Target Achievement Achievem Target Achievement Achieve
ent ment
2008-09 2204 2065 93.68 1710 1540 90.06
2009-10 2290 2210 96.50 1790 1663 92.8
2010-11 2339 2195 93.84 1839 1656 90.09

3.0 GAS PRODUCTION AND DISPOSAL (Details enclosed as Annexures):

i) PRODUCTION:

Associated Gas : 263,133,728 SCM

Associated Gas-well : 611,064,775 SCM
Non-Associated Gas : 535,716,595 SCM
-----------------------------------------------------------------------------------
Total : 2,409,915,098 SCM
-----------------------------------------------------------------------------------
Condensate production (from gas wells) : 214,639 Kls
Condensate recovered through HCR plant, Moran : 393 Kls.
------------------------------------------------------------------------------------
Total : 215,032 Kls.
-----------------------------------------------------------------------------------
Condensate produced/recovered has been spiked with Crude oil

ii) DISPOSAL:

Utilization
Quantity (SCM) %age

Sale : 1,874,609,205 77.79

Internal Utilization : 337,333,987 14.00
LPG Extraction : 37,065,150 1.54
Sub Total (A) : 2,249,008,342 93.33
Unavoidable losses:

Flare : 143,279,613 5.95

Other Loss : 5,426,133 0.21
Compression shrinkage : 12,201,010 0.51
Sub Total (B) : 160,906,756 6.67
Total (A+B) : 2,409,915,098

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 iii) SALES BREAK UP (Fig in SCM):

BVFCL : 434,097,417
NEEPCO : 505,883,698
IOC (AOD) : 90,956,857
APL : 29,892,251
ASEB (NTPS) : 245,396,428
ASEB (LTPS) : 131,638,732
NRL : 248,728,874
TEA GRIDS & OTHERS : 188,014,948
-----------------------------------------------------------------------------------
Total : 1,874,609,205
-----------------------------------------------------------------------------------
4.0 NON ASSOCIATED GAS PRODUCTION POTENTIAL BUILD UP:

Gas production potential build up was as under:

a. Contribution from new well (1 No.) : 70000 SCMD

b. Contribution from work over efforts (8 Nos.) : 713000 SCMD
c. Contribution from LCP job (11 Nos.) : 127000 SCMD
Total gain : 810000 SCMD

(Details are as per Annexure – I)

5.0 OPERATIONS:

Fields
i) BHP measurement job : 52 Nos.
ii) Hole probing job : 44 Nos.
iii) OFPT job : 01 No.

Compression Services
i) Compressor Running hours
a. Low Pressure Boosters (LPB) : 2,65,969 Hrs
b. Gas Lift Gas Compressors (GL) : 2,55,377 Hrs
ii) Compressor Availability
a. Average LPB Availability : 89 %
b. Average GL Availability : 89.25 %
iii) Compressor Utilization
a. Average LPB Utilization : 67.58 %
b. Average GL Utilization : 69.58 %

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6.0 MAINTENANCE JOB:
Fields
i) Flow line modification job : 16 Nos.
ii) Gas distribution line repairing : 26 Nos.
iii) Gas Line repairing for miscreant activities : 211 Nos.
iv) Replacement of stolen wellhead fittings : 67 Nos.
Compression Services
i) Gas Engine major overhauling : 10 Nos
ii) Gas Engine Top Overhauling : 04 Nos
iii) Compressor Overhauling job : 07 Nos
iv) Air compressor overhauling : 15 Nos
v) Inspection of Gas Engines : 237 Nos
vi) Inspection of Gas Compressors : 37 nos
vii) Reconditioning of Aerial Cooler : 02 Nos
viii) HOT Crane Testing jobs : 23 Nos
ix) HOT Crane Servicing jobs : 25 Nos
x) Aerial Cooler Cleaning job : 57 Nos
xi) Glycol servicing Jobs : 13 Nos

SCADA
i) Antenna & Battery Maintenance : 93 Nos
ii) RTU, Power supply unit & Computer system : 65 Nos
iii) Subscriber Radio & Base Radio maintenance : 106 Nos
iv) Field Instrument under preventive maintenance : 315 Nos
(Twice in a year)

7.0 MAJOR DEVELOPMENTAL JOBS:

i) Replacement of the 100 mm, 3.5 Km long old screwed artery line in GCS 4
area with a welded line.
ii) Capacity augmentation of Deohal FGS from 0.30 MMSCMD to 0.80
MMSCMD by installation of a 0.5 MMSCMD separator and 2 Nos. of indirect
heaters and 2 Nos. of 3 point manifolds.
ii) Commissioning of 2 Nos. of 50 KVA electrical generating sets at NHK 336
and Kusijan FGSs
iii) Construction of a 100 mm, 27 Km long line for evacuation of Baghjan flared
gas through AGCL network.

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 iv) Construction of a 2 km long 100 mm pipeline from Wilton grant to the existing
150 mm line near Hatilai EPS to evacuate 2.1 Kg/cm² flared gas of Tengakhat
OCS through BOO compression services.
iv) Construction 17.5 Km of flow line for gas well production
v) Three nos. of Reflux coil of Glycol Dehydration Units were replaced by
locally fabricated Reflux coil at GCS –6, Jorajan and Kathaloni.

vi) Constructed of new water drenching system for fire fighting as per OISD-189
from at GCSs 2, 6 & 7.

vii) Construction of storm water drainage at GCS-4 to avoid water logging.

viii) Fabrication and replacement of Still Column of 2 Glycol Dehydration Units

ix) Replacement of OEM (Air-X-Changer, USA) make Aerial Coolers of 2 long

shut-down LPB units at Salmari and Nagajani GCSs.

x) Revival of portable 8 Air Compressor units (4 ELGI make & 4 IR-Greaves

make) overhauling the prime mover engines by in-house effort.

xi) Replacement of 3 Nos. of damaged Silencers of Gas Engines at GCS 6

GCS Kathaloni and GCS Kathaloni.

xii) Commissioning of 10 and 3 Nos. of Water Bath Type Indirect Heaters for
gas well production and gas lift gas supply respectively.
xiii) GSM system has been introduced for real time monitoring of gas supply to
different customers from remote stations at Namrup and Lakwa of AGCL.
GSM based gas supply data is now available at SCADA MCS and data can
be retrieved through SMS through mobile phone

8.0 PROJECTS :

8.1 NON ASSOCIATED GAS FIELD DEVOLOPMENT (NAGFD) PROJECTS:

i) Central Gas Gathering Station and offtake point, Madhuban : Construction job
is in progress.

a. EPMC contractor : TESPL, EPC contractor : KPTL

b. Total Progress as on 31/03/2012 : 49.06%

c. Job wise progress :

i) Detail Engineering : 93.22%

ii) Civil Construction : 15.12%
iii) Structural : 01.61%
iv) Piping, Mechanical & Electrical : 20.80%

d. Planned EDC : 31/07/2012

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ii) Field Gas Gathering Station, Chabua: Construction job is in progress.

a. EPMC contractor : TESPL, EPC contractor : KPTL

b. Total Progress as on 31/03/2012 : 49.06%

c. Job wise progress :

i) Detail Engineering : 89.98%

ii) Civil Construction : 14.14%
iii) Structural : 01.40%
iv) Piping, Mechanical & Electrical : 17.41%

d. Planned EDC : 31/07/2012

iii) Field Gas Gathering Station, Baghjan:

a) Land acquisition is in progress. Surface compensation paid.

b) Boundary Wall : Tender to be re-floated for receipt of single tender.

c) EPMC Contract : Global Tender to be floated as the existing contractor

TESPL’s offer was exorbitantly high.

iv) Construction of 3 Nos. 600mm and 2 Nos. 400 mm pipeline from CGGS &
COTP, Madhuban to LPG OTP and Loc NKF, Duliagaon respectively

a. Land acquisition in progress in 2 segments

b. Materials received at site.
c. Construction : LOA issued, Agreement signed.

v) 400mm NB X 40 Km Baghjan - Madhuban pipeline:

a. Land acquisition : Progress -95%.

b. Pipe, Valves and fittings : received at site.
c. Construction : Job is in progress; Stringing -21 Km, Trenching -12 Km.
Note : Progress of construction is slow because of obstruction from local people
and land owners in number of occasions.

vi) 400mm NB X 20 KM Chabua - Madhuban pipeline:

a. Land acquisition : Progress -97%. Obstruction by Madhuban TE and a land

owner near Madhuban.
b. Pipe, Valves and fittings : received at site.
c. Construction : Job is in progress -96.25%
d. Note : Job held up due to obstruction by land owners as stated above.

vii) Reconnaissance survey of pipeline route

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 a. Contractor : SECON

b Job progress 85%. Draft Report submitted for all items except NDT survey.

c. Expected date of completion : 31/12/2012.

viii) Environmental Clearance (EC) for major gas field develpment projects in
Assam and Arunachal Pradesh:

a. EIA study completed by En-Geo Consultancy and research centre, Guwahati.

b. Final Report was submitted on 29/12/11 to MOEF and presentation to EAC
was given on 13/4/2012.
c. Application put up for National Board of Wild Life clearance and was approved
by State Board of Wild Life.

8.2 EXPANSION AND MODERNIZATION OF SCADA

a. EPMC contractor : Tractebel; EPC contractor : ABB

b. Total Progress as on 31/03/2012 : 35.26%

c. Job wise progress :

i) Detail Engineering : 62.30%

ii) Civil Construction : 08.65%
iii) Instrumentation, Mechanical & Electrical : 42.08%

d. Planned EDC : 01/02/2013(As per MOU)

e. Physical Progress

i. Construction of 28 nos of RTU rooms is in progress.

ii. FAT for 55 nos of RTUs and SCADA system completed and materials
received at site.

8.3 OTHER PROJECTS

i) Hiring of Compression Services on Built, Own & Oerate (BOO) Concept:

Services of 3 Nos each of 40 MSCMD and 20 MSCMD LP Gas Boosters were

obtained through BOO concept for monetizing flared gas at Hatiali, Dikom,
Bhogpara, Chabua (HJC), Barekuri, and Makum. Gas monetized during the year
was 38.79 MMSCM.

ii) Purchase and Installation of 10 Nos of Gas Compressor Packages:

10 Nos gas compressor packages (6 LP Gas Boosters & 4 Gas Lift machines)
were supplied by BPCL during the year. Installation job of the above compressors
is in progress now. Foundations of 8 compressor packages are completed.

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 Unitization and assembly of various components of the packages are in progress
now. Expected date of completion is 31/12/2012.

9.0 TECHNOLOGICAL UPGRADATION

i) Pressure Swing Adsorption Process by IIT, Guwahati

Management approval has been obtained for pilot plant for the study
conducted by IIT, Guwahati for removal of condensate and water from Natural
Gas.
ii) Hiring of Consultancy service for achieving “ZERO FLARE” in OIL’s
operational area in Assam & Arunachal Pradesh
Concept for ZERO FLARE is being introduced, Management approval is
sought.
iii) New Electronic panels for compressors:
New Electronic panels (Make-Altronics) has been included for newly
purchased 10 nos. gas compressor packages – under installation and
commissioning.
iv) GSM(Global System for Mobile Communication):
GSM system has been introduced for the first time in OIL for monitoring of Gas
parameters supplied to different Customers from remote stations -Namrup and
Lakua gas plant of Assam Gas Company. GSM based Gas monitoring data is
now available at SCADA MCS and data can be retrieved through SMS from
mobile phone.

10.0 COST SAVING MEASURES:

Activities that resulted in savings of manpower as well as costs are:

SL.
ACTIVITY COST SAVED % COST SAVING
NO.
Repairing of cracked Engine Block
1. 6,10,000 17
of LPB-1, GCS- Langkasi
Repairing of damaged silencers of
2. 1,00,000 14
Gas Engines

11.0 FINANCIAL PERFORMANCES

A. i) REVENUE EARNED FROM GAS SALE: : 958.655 Crore

(Inclusive of royalty & marketing margin)
ii) Sales Tax : 107.925 Crore

B. BUDGETS:
i) Capital Budget Expenditure : 82.118 Crore
ii) Revenue Budget (MAP) Expenditure : 33.280 Crore
iii) Asset capitalized during the year : 13.267 Crore

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 C. AUDITS (INTERNAL/TECHNICAL)
i) Physical verification of assets (Above 1 lakh) : More than 98%
ii) S.Loc verification for Non stock items : Completed
iii) Technical Audits of Installations : 02 Nos (GCS-Kathguri
and FGS-Kathalguri)
iv) Write off of assets (Old Gas Compressors) : 10 Nos.

12.0 ENERGY CONSERVATION:

• Approximately 40000 SCMD of Gas flare reduced at Baghjan EPS by

supplying gas through 100 mm NB line to AGCL network w.e.f. 06.08.2011.
• Approx. 5508 litre of diesel saved by loading oil tankers with gas pressure in
stead of conventional diesel engine driven pump at Deohal FGS.
• Reduction in gas flare by 15 MMSCM over the last year

12.1 ENERGY GENERATED:

Natural gas production (Assam & AP) : 2410 MMSCM

Condensate produced (Gas Wells) : 214,639 Kls
Condensate recovered (from HCR plant, Moran) : 393 Kls
HSD saved by use of gas pressure for tanker loading : 5508 litre

12.2 ENERGY & OTHER CHEMICALS CONSUMED:

Sl No. Items Quantity

1 Lube Oil, MG20W40 4,07,551 Ltrs.
2 Lube Oil, S 121 19,000 Ltrs.
3 High Speed Diesel 43,053 Ltrs.
4 Petrol 72 Ltrs.
5 Natural Gas 374,339,137 SCM
6 Methanol 6,878 Ltrs.
7 Triethylene Glycol (99 %) 55,905 Kg

12.3 VEHICLE KILOMETERAGE:

%
KILOMETERAGE 2010-11 2011-12
Difference
Company Vehicle 28,060 24,551 - 12.51
Hired vehicle 9,68,869 9,18,776 - 5.17

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13 HEALTH, SAFETY & ENVIRONMENT:

13.1 Some noteworthy efforts put in towards maintaining good health, safety and
environment standards are as under;
• PME (Periodic Medical Examination) and Audiometry Check up for all the
unionized employees for the Block 2010-2014 have been carried out.
• External Safety audit was carried out at GCS-Nagajan
• Regular monitoring of pit water samples and fresh water samples from tube
wells located near GCSs, FGSs and Offtakes points.
• Reduction in gas flare from 7.20% to 5.95%
• Ambient Air Quality Monitoring and Stack gas monitoring was carried out at
production installations as per guidelines laid down by Pollution Control
Boards and the emission level was found to be within the desirable limit.
• Tool Box Meetings, Pit Level Meetings and Departmental Safety Meetings
have been held regularly.

13.2 ACCIDENTS:

• Minor :01 No.

• Major : NIL

13.3 SAFETY AWARDS

Installation Prize category Installation Manager

GCS – Nagajan 1st prize Mr Dilip Kalita, SEPG
nd
GCS – Kathaloni 2 prize Mr L Khanikar, SrEPG
rd
GCS – Jorajan 3 prize Mr Ankur Baruah, SrEPG
rd
GCS - Digboi 3 prize Mr J. Deori, SrEPG
FGS – Kushijan 1st prize Mr Dilip Nath, SEPG
Kathalguri Offtake Point 2nd prize Mr P.J. Kalita, SrEPG

13.4 OISD RECOMMENDATIONS:

• Total outstanding recommendations as on 31/03/2011 :23 Nos.

• Total recommendations implemented during the year :05 Nos.
• Total additional recommendations during 2011 -2012 :05 Nos.
• Total remaining recommendations as on 31/03/2012 :18 Nos.

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14.0 HUMAN RESOURCE:

14.1 MANPOWER STRENGTH:

• The manpower strength of the department is as under:

Existing strength as on
Category Sanctioned
31/03/2012
Executive 43 41
414 (Including 08 SR
Workmen 440
Executives)

14.2 INDUCTION:

• 04 (Four) executive trainees have joined the Department

14.3 SUPERANNUATION:

The employees superannuated during the year are as follows;

• Executives : 01 Person
• Work person : 11 Persons
We will remain grateful to all of them for their contribution to the department in
particular and the company in general.

14.4 TRAINING:

• WORKPERSONS:

Existing Strength In House Training In-Country training

414 122 33

• EXECUTIVES:

In House/in-country Overseas Training /

Existing Strength
Training / Seminars: Seminars
41 72 09

14.5 DISCIPLINE

The department had to show cause four (04) employees during the year of which
all four (04) were served with various punishments after due enquiry.

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14.6 CARE FOR SC / ST EMPLOEES

20 SC and ST employees were imparted training during the year.

14.7 DEPARTMENTAL NOTE:

A departmental note on “Hiring of Gas Compression Service on Build, Own and

Operate basis – A Success Story” was prepared by Shri Amarish Kamalapuri,
SEPG.

15.0 ACKNOWLEDGEMENT:

15.1 The undersigned takes this opportunity to express his sincere appreciation to
every member of `Team Production Gas’ for their dedicated and sincere services,
without which the results achieved, would not have been possible. The
department also acknowledges the valuable services rendered by various
departments and guidance received from all quarters towards fulfilling the
objectives of the department. The department gratefully acknowledges the
guidance and support received from CMD, D(E&D), D(F), D(HR&BD), D(O), RCE,
ED(E&D), GGM(P) and all GMs along with other members of OIL Management
during the year.

(K.J. Baruah)
Head – Production Gas

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 Annexure – I

GAS WELLS BROUGHT TO PRODUCTION:

Present Production
Well Date of Producing Potential
Remarks
No. Commission Installation Gas Oil Water
(scmd) (Klpd) (Klpd)
NHK 218 26.05.2011 OCS-3 23000 0 0 Workover well
NHK 496 07.07.2011 OCS-4 110000 6 20 Workover well
NHK 590 23.07.2011 OCS-4 55000 11 24 Workover well
Workover well, Closed
10.10.2011 for Water
NHK 513 01.09.2011 OCS-4 45000 0 0 loading problem, After
Workover Again opened on
26.03.2012
Makum Workover well,
MKM 33 18.10.2011 0 0 0
OCS Well closed on 12.11.2011
Deohal
NHK 594 29.11.2011 70000 0 10 Drilled well, LOC-CM
FGGS
Deohal
NHK 552 11.12.2011 160000 0 14 Workover well
FGGS
Handed over to production
DKM 29 12.01.2012 Dikom OCS 0 0 0
oil on 13.02.2012
NHK 169 18.02.2012 OCS-6 100000 1 3 Workover Well
Katahlguri
NHK 356 26.02.2012 26000 0 4 Workover Well
OTP

Chabua
CBA-16 19.03.2012 60000 2 19 Workover Well
EPS
NHK 597 ---------- -------- 0 0 0 LOC HUM, awaiting testing

Total production potential builds up of Natural Gas from w/o & drilling well In 2011-2012 is
0 .783 MMSCMD

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