CBM field development & Challenges

Prem Sawhney, COO-Clean Coal Business

Oil & Gas conference 'India Drilling & Exploration Conference (IDEC) 2010‘
20th & 21st May 2010
Essar Exploration & Production Ltd.

“Building a Balanced Portfolio of International Exploration & Production Assets”

CBM is a game of patience and perseverance
Outlines Of Presentation

¾ Snap Shot Of Essar Business

¾ CBM – Coalbed Methane 

¾ CBM Blocks in India 

¾ CBM  Field Development – Essar’s RG CBM Block

¾ CBM  Field Development Challenges

¾ Conclusion

CBM is a game of patience and perseverance

 Snapshot of Essar Businesses
Steel Energy Power Communications Shipping Ports Projects
& Logistics

CURRENT CURRENT CURRENT Telecom services Construction

OPERATIONS OPERATIONS Vodafone Essar: Over CURRENT •Engineering
OPERATIONS OPERATIONS
80 million subscribers •Procurement
India Exploration & Hazira, Gujarat, India Yu: GSM service in •Fabrication
•10 MTPA integrated Production 1,015 MW combined Kenya, 600,000 Essar Shipping
steel plant, Hazira cycle plant subscribers Fleet of 25 vessels, •Construction
E&P rights in valuable
•8 MTPA pellet plant, oil & gas blocks Vadinar, Gujarat, India Vadinar Oil Terminal Fully geared to
Visakhapatnam globally 125 MW co-generation Telecom infrastructure Terminal facility of 32 execute turnkey EPC
•8 MTPA beneficiation plant Over 4,500 telecom MTPA – Liquid Cargo, jobs in India and
plant, Bailadila, Refining Visakhapatnam, towers operational; 14 Vadinar overseas
Chattisgarh 12.5 MTPA refinery Andhra Pradesh, percent stake in Indus
•Cold rolling, Bulk Terminal
complex India: 25 MW plant Towers Dry bulk port Asia’s largest
galvanising, colour equipment bank
coating plant, Pune Retail facilities, Hazira
Over 1,200 retail UNDER EXECUTION Telecom retail Essar Oilfields
Indonesia outlets Gujarat, India: The MobileStore: Over A drilling company Offshore Subsea
0.4 MTPA cold rolling 1,300 outlets with 13 rigs Expertise in marine
•1,200 MW, Salaya operational
Complex, Jakarta UNDER EXECUTION Essar Logistics construction
Refinery expansion to •890 MW co-
Canada Telecom enabled Owns and operates
34 MTPA in two generation plant, transshipment assets Heavy Engineering
4.0 MTPA integrated phases Vadinar services
steel plant, Sault Ste Aegis: 37,000 people in Services
Marie, Ontario •Wind energy plant, offices in the UNDER EXECUTION
Bhuj Philippines, Costa Ports & Terminals Project Management
USA •270 MW multifuel Rica, USA, Australia, Vadinar, Gujarat: Consultants
1.4 billion tonne iron South Africa, Kenya Increase capacity to
ore reserves, plant, Hazira 50 MTPA,
Minnesota and India
Mahan, Madhya Hazira:, Gujarat :30
Global network of Pradesh, India: 1,200 MTPA all-weather
Hypermarts & Service MW deep draft port
Centers Tori, Jharkhand, Salaya Gujarat: 20
India: 1,200 MW MTPA integrated
UNDER EXECUTION terminal facility
•8 MTPA pellet plant, Paradip, Orissa, India:
Paradip, Orissa 120 MW coal-based Sea transportation:
•6 MTPA pellet plant, plant 12 new vessels on
Jodha Barbil area,
Orissa Tirunelveli, Tamil order
•6 MTPA pellet plant, Nadu, India: 150 MW
Minnesota Oilfields services
wind farm 2 new jack-up rigs on
order

CBM is a game of patience and perseverance

 CBM – COAL BED METHANE

•Coalbed Methane (CBM)  is natural gas (CH4) and it occurs in coals 
as adsorbed gas. 
•Coalbed  methane  is  a  technology  play  that  requires  reservoir 
understanding  and  appropriate  technology  for  all  phases  of 
prospect evaluation and field development.
•CBM Explorers essentially try getting fix on the following
•Coal thickness and coal seam continuity
•Gas content
•Permeability
•CBM Reservoirs is water saturated & requiring dewatering in initial 
phase& gas takes time to come on to the surface
CBM therefore, is a game of patience and perseverance 

CBM is a game of patience and perseverance

CBM generation

Expelled By-Product
• Water
• Methane
Organic Debris • Carbon Dioxide
Pressure
• Peat

Residual Products
•Coal
•Methane
Heat

Time
Time

CBM is a game of patience and perseverance

 USES OF CBM

• Power Generation : Lower capital investment and higher 
operational efficiency

• Auto Fuel : Compressed Natural Gas (CNG) 

• Fertilizer Manufacture :  As  feed  stock  for  urea  manufacture 

& Captive power 

• Steel Manufacturing   :  Better  Quality  product  at      lower 

capital   costs

• Fuel for Industries  :  Economical  fuel  for  cement  plants, 

refractory, steel rolling mills etc

• Other uses   : Domestic and industrial supplies 

CBM is a game of patience and perseverance

 CBM Production Well Configuration

Surface 0.0 m 17 1/2” Hole Size

13 3/8” Casing
Cement
50.0 m
Distance From Well (Function of Time,
12 ¼” Hole Size
9 5/8” Casing
Perm, etc)

Cement

From 0 to 600m / 800m

7 7/8” Hole Size BHFP Two‐Phase Flow  Water Saturated 
Regime Flow Regime
5 ½” Production Casing

COAL SEAM - III

Cement
COAL SEAM - II

COAL SEAM - I

From 0 to 1000m / 1200m

CBM is a game of patience and perseverance

Typical Schematic of CBM Production Facility
Field Gathering
Lines
Methane Gas @ 10-20 psi

Separator

Compressor Stations
CBM wells Water 300 psi

Sales Meter

Treating Pond
Dehydrator

Pipeline
Compressor
Station

Pipeline
Compressor
Water for Station
Irrigation/ Disposal Main
Pipeli
ne
CBM is a game of patience and perseverance
CBM Blocks in India‐An Overview

Eastern region
presently
deprived of
natural gas

No. of Area
State Blocks (Sq.Km)
West Bengal 4 1308
Jharkhand 6 1326
Madhya
Pradesh 5 2648
Rajasthan 4 3972
Chhattishgarh 3 1917
Andhra
Pradesh 2 1136
Maharashtra 1 503
Gujarat 1 790
Total estimated CBM potential 70 TCF Total 26 13600*

CBM is a game of patience and perseverance SOURCE :DGH,

*IV th round Biding not included
CBM  Field Development‐
Essar's RG CBM Block
Raniganj CBM Block Progress Line
Beyond 2012
Project scope  :500 wells
2010-2012 • Achieve
plateau
production of
• Laying of ~50 3.5 MMSCMD
km pipeline by Mar’ 2013
• Commence • Supply good
test gas sale quality
2006-2009 produced
by July’ 10
• Approval of water to
• EC obtained development villagers for
2005 • Drilled 17 plan irrigation
core holes • Drilling ~250 • Continue
• Drilled 15 test production drilling
wells and put wells additional 250
2002 • PEL grant : on production wells to
• Build gas
29th March • DGH maintain
processing
• Contract 2005 approved 2.15 plateau
infrastructure
signed : 26th • EC Tcf of OGIP production
• Tie-up
July 2002 application • Reserve • Explore for
customers
• Petroleum • Work certification upside
• Develop
Exploration execution by NSAI potential
evacuation
License (PEL) plan -OGIP: 4.6 Tcf beyond the
infrastructure
application -Rec. :1.0 Tcf fairway area

CBM is a game of patience and perseverance

 Geological Map – Raniganj Coalfield

+
+ +
+
RANIGANJ NORTH BLOCK
+ + +
+ + + (ONGC-CIL)
+ + + +
+ + + + +
+ + + +
+ + +
+ ++ + + +
+ + + +
+ + + + + + + + + + +
+ + + +
+ + + +
+ + + +
+
TO DHANBAD + + + ++ + +
+ +
+ + +
+ +
+
+
+
+ +
+ +
+
+
+
+
+
+
RANIGANJ SOUTH BLOCK +
+
(GEECL) +
+
+
+
-- Alluvium + +
+ + + +
Tertiary + + +
+ + +
+ + ++ + +
Basic and Ultrabasic Barakar Fm. + + Durgapur
Raniganj
Intrusives Talchir Fm. TO
KO
Supra Panchet Fm. ++ Metamorphics LK
AT
Panchet Fm. A
Coal Seam RG(E)-CBM-2001/I
Raniganj Fm.
Fault 0 4 8 km (ESSAR)
Ironstone Shale Fm. Scale
12
CBM is a game of patience and perseverance
PROJECT HIGHLIGHTS

™ Drilled  17  information  wells  &  15  CBM  production 

test well which are  currently  on  production .

™ Important  CBM  parameters  such  as  coal  thickness,  Moment of pride for team
CBM
permeability  and  gas  content  essential  for  CBM 
production measured

• Coal thickness > 30m completable.
Produced CBM water
• Gas content > 6 m3/ton.

• Permeability 5 to 10 mD.

™ DGH approved  2.15 TCF CBM GIP in the fairway. 
NSAI, USA has certified CBM resource of 4.6 TCF for 
the entire block with recoverable resource of about 1 
Tcf.
Agri-farming

CBM is a game of patience and perseverance

CBM Reservoir Evaluation Approach

Geosciences

Core
Operators need to know: Analysis

• Depth Reservoir Logs &

Simulation Evaluation
• Thickness
Reduce
• Quality / Rank Reservoir
Uncertainty

• Gas-in-place Geo-
Testing
mechanics
• Permeability
• Reserves Geo-
chemistry
• Critical Desorption
Pressure
Integrating datasets with interpretive
• Productivity expertise to enable low risk decisions
CBM is a game of patience and perseverance
CBM Prospect Evaluation / Field Development 
Core Program
Core & Log
Gas Content, Adsorption Isotherm
Injection/ Falloff Permeability Test

Core / Perm Production Test (5-Spot Pilot)

Well Production Test
Completion Effectiveness
Relative Permeability
Reservoir Simulation
Core / Perm Spacing & Pattern
Well Field / Area Production Potential
Field / Area Development Program
Core / Perm Five Spot Commercial Pilot
Well Step out wells
Five Spot Core / Perm Larger Spacing
Well Completion optimization
Core / Perm Core / Perm
Well Well
Core / Perm
Well
Core / Perm
Well
Five Spot
Core / Perm
Well Core / Perm
Well
Core / Perm
Well Core / Perm
Well

Core / Perm
Well
Core / Perm
Well
Early Development Approach
Dual rig deployed  & optimum well spacing

FIGURE 1: MAP SHOWING CLUSTER II

TEST WELLS LOCATION
¾Cluster Approach for
test well Drilling @60‐ 80 

acre spacing  during 

¾Exploration phase I resulted 
in early gas  production

CLUSTER I ¾The cluster test wells are
currently producing gas at

daily increasing rate

¾ Have indicated high 
EDC - 10

EDT - 01
potential For full scale 

development

CBM is a game of patience and perseverance 16

Pictorial progress…Raniganj

PC Pumps running at test

wells
Air Drilling Rig For
CBM

Gas flare Separators installed at test

Plantation at test well site wells

CBM is a game of patience and perseverance 17

DEWATERING OF TEST WELL

¾ CBM Test well currently under  dewatering  
with  a  variable  flow  rate    of  15‐100 
m3/day.
Vegetation Grown through Pit Water
¾ PCPs  installed  to  achieve  optimum 
dewatering  & CBM gas flow rates.

¾ Water from  Raniganj field  is of good 
quality.
Plantation Around Drill Site
¾ Elsewhere CBM Projects are not so lucky as 
water quality is not so good & requires 
treatment prior to disposal . 

¾ Optimum pumping is required to avoid the 
damage to the coal seams & production of 
Coal fines.
CBM is a game of patience and perseverance
CBM  Field Development‐
Challenges
Strategy to reduce land footprints for CBM wells 

Land Acquisition  for drilling large number of vertical well  is a 
challenge. A mix of vertical  & inclined wells to reduce land foot‐prints 
for wells

m
¾One vertical well and six directional wells at 60 Deg phasing. 

00
-6
¾Horizontal reach of the directional wells will be about 300 m to 600 

0
30
m (i.e.  40 – 80 acres spacing). 5 00 m
¾Drilling cost will increase marginally but shall provide following 
benefits

• Land Requirement reduction up to 70% 
• Land cost savings and Civil work savings
• Cost of inter location move of drilling rigs, logging trucks, 
cementing units, HF Units 
• Cost of pipeline, instrumentation and surface facility 
• Security 
• Logistics etc.

CBM is a game of patience and perseverance

CBM WELL DRILLING AT LOW COST‐A CHALLENGE

CBM Project Development requires drilling of large 
12 1/4” hole X 9 5/8” casing
group of wells at a low cost is a challenge. An 
Mud Drilling
innovative combination drilling practice has been 
450 M
adopted by Essar (Approx)
8 ½” hole X 51/2” casing
¾ Drilling up to surface casing by water ‐mud Air Drilling

¾ Air Drilling of coal section  to the target depth 950 M (Approx)

Air as drilling yielded benefits in terms of : Damage
Open Cleats
Zone Around
¾ Minimum formation damage
Around
Wellbore Wellbore

¾ Faster  penetration  rates,  Longer  bit  life  and 

fewer trips   

Air Drilled Well Mud Drilled Well

CBM is a game of patience and perseverance

Multiple Seam Completion ‐ a challenge    

EDT - 02
RL-72.00
0.00 ~~ ~~
Top Soil
18.00
~~ ~~
No. of seams: 11
No. of seams: 19
Tertiary Total Coal : 24 m
Total Coal : 38 m 75.00

Panchet 300.00

300.00

365.58-367.18 1.60
374.54-376.62 2.08
RN-4

365.58-367.18 1.60 397.76-400.00 2.24

374.54-376.62 2.08

397.76-400.00 2.24

432.82-433.54 0.72
432.82-433.54 0.72

Raniganj
468.40-470.62 2.22 468.40-470.62 2.22

488.40-493.00 4.60

504.20-507.20 3.00 488.40-493.00 4.60

2.64
511.30-513.94
504.20-507.20 3.00
RN-3
511.30-513.94 2.64

563.96-567.78 3.82

625.00
563.96-567.78 3.82 RN-1&2

Ironstone
Shale

625.00

TD - 700.00

Cluster-II Cluster-I
CBM is a game of patience and perseverance 22
Hydrofracturing

¾ Use  of  indigenous    Proppant sand  &  chemicals.

Design  to  place  4,000  lbs.  proppant per  foot  of 
gross coal (70% 20‐40 and 30% 16‐30 Frac Sand)

¾ Completed 43 Hydrofrac jobs in 60 days for Phase 
I.3‐4 Seams per well for 15 Test wells 

¾ Indian  record  for  most  no.  of  frac jobs  in  least 
time (without use of coiled tubing).

¾ Logistic  challenges  &  monsoon  onset  to  be 

considered while planning campaign.

¾ 6  to  11  jobs  per  well  planned  for  the  current  

campaign.  Going  forward  to  2‐3  jobs  per  day 
envisage using CTU Technology.

CBM is a game of patience and perseverance

DESIGNING PRODUCTION  FACILITIES 

Once optimum well spacing & completion design 
have  been  selected  production  &  operational 
facilities need to be designed. Individual well site 
setup will consist of the following:
•Prime Mover Source
•Electric Motor for running the down hole pump
•Variable Speed Drive for motor control
•Separators for Gas & Water
•Valves,  pressure  sensors/regulators  & 
instrumentation
•Meters for gas and water measurement
•Safety relief valves and bypass gas line

Schematic of Well site Facility

CBM is a game of patience and perseverance

Field Automation

¾ Depressurization of  wellbore is required by dewatering of coal seams with help of 
compressor.
¾ GGS, Satellite and Main Compressor Stations, Metering System and Power Generation 
through SCADA.

CBM is a game of patience and perseverance

Gas Infrastructure in the Region

Opportunity
to Connect
with GAS
Grid

Project Economics
Considerations
¾ Gas Market  
¾Pipeline infrastructure

CBM is a game of patience and perseverance

27
To Conclude

¾ CBM field development requires a phased & structured evaluation programme right from 
fairway identification stage to full scale developmental stage for maximizing ROI.

¾ Challenges to Indian CBM E&P are availability of current technology of low cost drilling , 
multiseam Hydrofrac , comprehensive reservoir description at every phase through 
reservoir simulation  and production technology to achieve faster dewatering ,earlier & 
higher gas peak rate.   

¾ Reduction of land footprints by adopting a mix of vertical , inclined on in‐seam drilling.
¾ Development of gas infrastructure in the area such as  Damodar Valley coal rich belt 
where there is presently no  local supply of conventional hydrocarbon, CBM is to  provide a  
viable source of energy. 

CBM is a game of patience and perseverance

About the Speakers

Mr. Prem Sawhmey,COO Clean Coal Buisness
Mr. Sawhney  has  been  actively  involved  in  the  CBM  development  efforts  in  India  for 
past  15  years.  He  was  the  operations  Manager  for  the  drilling  of the  first  ever  CBM 
Wells  by  the  ESSAR  Group  in  India  under  the  USAID’s PACER  programme,  which 
provided good leads for the industry. He has specialized in project management, field 
implementation  of  drilling/production  programs,  contract  negotiation  and 
construction work. He is one amongst the first in sighting UCG and CTL opportunities in 
India.  Currently,  he  is  working  with  Essar  Energy,  as  Chief  Operating  Officer  – Clean 
Coal Business.

Dr. Shailendra Kumar Singh, GM, CBM Head

He  has  rich  experience  of  working  in  Oil  &  Gas  and  CBM  exploration  in  India’s  state 
owned  company  Oil  &  Natural  Gas  Corporation  for  22  years.  Was  involved  in 
generating geological models for India’s frontier, Bengal & Assam‐Arakan Basins and in 
evaluation of CBM potential of all the major Gondwana basins. He had been associated 
with  the  pioneering  CBM  gas  discovery  in  Jharia Block.  Currently,  he  is  working  with 
Essar  Energy,  as  General  Manager  – CBM  Projects  and  is  involved  in  planning  & 
execution of  Essar’ CBM  E & P programmes.

Disclaimer : Views expressed herein are of authors and not necessarily of the organization they represent