study.pdf - PART II TECHNICAL ASSESSMENT 2.01 As mentioned...

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PART II TECHNICAL ASSESSMENT 2.01 As mentioned earlier, VIL is now one of the leading players in the consumer electronics and home appliance industry. In order to diversify its operations and de-risk the business, the company has now forayed into other sectors like oil & gas exploration, power generation, mobile telecom services, etc. All these are infrastructure / core sector projects, requiring large investments and having long gestation period. VIL's consumer electronics business has largely stabilized and, going ahead, most of its long-term fund requirements would be for meeting its investment commitment in these diversification projects. The present status of these diversification programmes has been discussed below. A. OIL & GAS EXPLORATION & PRODUCTION 2.02 Oil & gas is formed from the remains of tiny plants and animals. After the organism died, they sank into the sand and mud at the bottom of the sea. Over the years, the organism decays in the sedimentary layers. In these layers, there is little or no oxygen present and the micro-organisms get converted into carbon-rich compounds. The organic materials, mixed with the sediments, form fine-grained shale or source rock. As new sedimentary layers are deposited, they exert intense pressure and heat on the source rock. The heat and pressure distills the organic material into crude oil and natural gas. The oil flows from the source rock and accumulates in thicker, more porous limestone or sandstone called reservoir rock. Any fluid (water, gas or oil) will always flow along the path of least resistance. This is because most of the porous spaces interconnect and the fluid can flow from pore to pore up the angle of the rock layer, towards the surface. The movement of gas & oil, through the reservoir rock, is called migration. Because of migration, the gas and /or oil can end up at a considerable distance from where it was originally formed. As gas and oil migrates along the reservoir rock, it can encounter a trap, where it gets stopped and starts accumulating. Because the pores in the reservoir rock are usually filled with water, the gas and oil would normally flow to the highest part
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of the reservoir rock. One of the common types of trap is a natural arch in the reservoir rock called a dome or anticline. In the trap, the fluids separate according to their densities. A diagram, showing the process of formation & migration of oil & gas, is given in Annexure IIA . 2.03 The extraction of oil & gas comprises five phases exploration (surveying & drilling), appraisal, development, production and abandonment. These phases have been briefly explained below. Exploration surveying 2.04 Oil & gas exploration, which involves application of highly sophisticated geo- physical technology, detects the sites with potential for oil. In the first stage of the search for hydrocarbon, geological maps are reviewed in desk studies to identify the major potential structure / sedimentary basins. More detailed information is assembled using a
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