Panna-Mukta

Panna-Mukta Oil and Gas Block Profile

Location

The Panna-Mukta oil and gas block is located offshore in the Arabian Sea, northwest of Mumbai, India. The Panna field is approximately 95 kilometres northwest of Mumbai, covering an area of 430 square kilometres, while the Mukta field is about 100 kilometres northwest of Mumbai, spanning 777 square kilometres. The average water depths are 45 metres in the Panna field and 65 metres in the Mukta field.

Ownership and Operation

The Panna-Mukta oil field was initially discovered and operated by the Oil and Natural Gas Corporation (ONGC), an Indian state-owned company. Following a privatization policy, a Reliance-Enron consortium gained a 25-year lease on the oil field in February 1994. The current ownership structure includes:

• ONGC: 40%
• Reliance Industries Limited (RIL): 30%
• BG Exploration & Production India Ltd (now part of Shell after BG Group's acquisition by Shell): 30%.

History and Development

• Discovery and Initial Operation: The fields were discovered by ONGC, which initially operated them.
• 1994: A Reliance-Enron consortium took over the operation under a production sharing arrangement.
• 2002: British Gas (BG) acquired Enron's 30% stake in the Panna-Mukta and Tapti fields for $350 million.
• 1995-1999: The initial phase of development involved installing three wellhead platforms, drilling development wells, and establishing processing and transport facilities.
• 2004-2007: Additional pipelines and two wellhead platforms were installed in the Panna oilfield.

Production

• Current Status: The field is currently operating, with production centered on the PPA (Panna Process Platform) facility.
• Production Volumes:
  • As of 2006, the fields produced 30,000 barrels of oil per day and 90 million cubic feet of gas per day.
  • By 2008, production had increased to 40,000 barrels of oil per day and 190 million cubic feet of gas per day.
  • In 2010, the field was producing about 35,000 barrels of oil per day and 205 million cubic feet of gas per day.
• Processing and Transport: Crude oil is loaded onto tankers via a single buoy mooring (SBM) facility, while gas is transported via a pipeline to the Hazira Gas Processing Plant.

Reserves

• Estimated Reserves: The Panna-Mukta fields are estimated to have original oil in place of approximately one billion barrels and original gas in place of 1.8 trillion cubic feet.
• Recoverable Reserves: As of the latest data, the field has recovered 99.39% of its total recoverable reserves, with peak production in 2007. Production is expected to continue until the field reaches its economic limit in 2027.

Infrastructure

• Platforms and Pipelines: The field includes several wellhead platforms and satellite platforms connected by subsea lines to the PPA facility. There are also infield pipelines and associated risers.
• Contractors: Various contractors have been involved in the development, including Clough, Mustang, SapuraKencana, and Seaway Heavy Lifting for different aspects such as project management, detailed engineering, and installation.

Challenges and Incidents

• Explosion and Leak: In June 2008, an explosion resulted in the death of one worker and a temporary halt to production. In July 2010, production was halted again due to a leak in the sub-sea hose near the Panna single buoy mooring.

Future Development

• Infill Drilling and Water Injection: There have been ongoing efforts to incrementally develop the fields through well intervention, infill drilling, and the installation of new projects. A program to construct nine infill wells to maintain reservoir pressure was planned, with additional platforms and wells being commissioned.

The Panna-Mukta oil and gas block is a significant offshore energy project in India, contributing substantially to the country's oil and gas production. Its complex history of ownership and operation reflects the evolving landscape of India's energy sector.