Journal of Petrotech

Vol. VII Issue 4

January - March 2012

10TH INTERNATIONAL OIL & GAS CONFERENCE AND EXHIBITION

Hydrocarbon and Beyond: Changing Landscape 14th -17th October 2012, New Delhi www.petrotech.in

www.petrotechsociety.org

CONTENTS Foreword Sudhir Vasudeva, Chairman Petrotech, CMD ONGC

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Messages Naresh Kumar, President Petrotech & CMD, Deepwater Drilling Industries Ltd. Ashok Anand, Director General Petrotech

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Editorial Anand Kumar, Director Petrotech

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Petrotech welcomes New Corporate Leaders of Oil and Gas Industry

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CEO’s Speak Sudhir Vasudeva, Dr A K Balyan, Dipak Chakravarty, Sudhir Bhalla, K S Jamestin

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Oil Refining India-An Emerging Global Refining Hub

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Preeti Jain

Alternative Energy Shale Gas Potential in Cambay Basin Gujrat

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Ratindra Nath Pandey

Natural Gas Under Siege

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Paul Ziff

“Shale Gas-Status & Way Forward” Observation and Recommendation of Petrotech Vetrans Forum

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Business Opportunity US India Energy Partnership-Emerging Trends and Business Prospects 34 A M K Sinha

Renewable Energy Solar Energy Induced Water Splitting for Hydrogen Production

Editorial Board

Hydrogen Economy Ashok Anand

Dr Avanish K. Tiwari

Director General

Polymers & Petrochemicals

Anand Kumar Director & Editor

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Prof. Vibha R. Satsangi, Prof. Sahab Dass and Prof. Rohit Shrivastav

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Innovations in Olifin Polymerization Catalysts: Driving Force Behind Growth of Polyolefin 44 Gurmeet Singh, Dr G.S. Kapur and Dr Shashikant

Asset Reliability G Sarpal

Duplex Stainless Steel for storage tanks

Secretary

Yatinder Pal Singh Suri

Suman Gupta Manager

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Sustainable Project Management Greening Project Management Practices for Sustainable Construction

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Lauren Bradley Robichaud and Vittal S. Anantatmula

Back to School The views expressed by the authors are their own, and do not neccessarily represent that of the Petrotech.

Polymers and Plastic Materials

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Effects of Rare Earth Oxides in FCC Catalysts

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Special Feature: Women in Business Women Leaders of Indian Oil Industry

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Nishi Vasudeva, D Lilly, Jatinder Peters, Veena Swarup, Manjusha Bhatnagar, Sukla Mistry, M Bhargava Published by Petrotech at 601-603, Tolstoy House, Tolstoy Marg, Connaught Place, New Delhi - 110 001

Petrotech Activities

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Industry Kaleidoscope

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Foreword Dear fellow professionals, We recently organised the SPE OIGC on the theme “Further, Deeper, Tougher: The Quest Continues ......”.

Allow me to share a few observations I had made at this conference with you.

The harsh reality of operating in an era of exigent hydrocarbon is that it requires a completely different set of technological, managerial, safety and regulatory challenges and not merely extension of the existing frame-work that we have built so assiduously since 1859. Let us call this construct, the ‘Frontier business paradigm’ as it is a completely different ballgame that we are gradually learning through that typical iteration of one step forward two steps back. Yet we are making commendable progress and over time will surely enter an era of ‘business – as – usual’ and settle into a new comfort zone.

Without getting bogged down by numbers; because numbers are open to manipulation as well as interpretation, let me present to you a few trends that fit into this ‘frontier business paradigm’ concept, strictly in the context of exigent hydrocarbons: • Deep and ultra deep waters hold substantial hydrocarbon reserves in which 26 % of gas and 44 % of oil reserves are yet to be found. Also new reserves will be distant from consumption centres with attendant transportation challenges • While oil and other liquids are not going away anytime soon, gas is surely fuel of the future on account of large new finds and environmental pressure on Governments to contain carbon emissions. Unconventional gas will emerge as the next big thing, with shale gas, after its performance in USA emerging a star • Regulatory frame-works on enforcement of environment and safety maintenance will become stringent and compliance with best universal standards will become obligatory for companies that have a global operational footprint. Government - take and localisation requirements will become rigorous and even debilitating and access to new reserves will invariably be through a competitive bidding process. This will not happen because Governments will become ‘unreasonable’ overnight, but due to a blend of increased stakeholder activism, imperatives of ‘populist’ politics, as well as pressures to comply with international governance constructs • Cost – effectiveness & efficiency in operations will be the key to profit-making and smart operators will invest more time above the ground and water than below it. Successful operators will need to develop the competence to manage large and complex vendor and services delivery chains seamlessly and efficiently while concomitantly ensuring compliance with regulatory frameworks on environment maintenance and safety. As cost pressures mount in field development, focus will shift to modularity and development of dual-purpose and re-usable infrastructure • Technology will develop incrementally and will reside primarily with specialist vendors and service providers as challenges of ultra-deep subsea completions, tight and HPHT reservoirs, imaging techniques below presently impenetrable cap rocks and CO2 fracturing amongst others are addressed. Developing trained manpower to deliver this technology in the field is also an associated challenge • Surely, not all reserves will lie in exclusive economic zones or continental shelves of countries; international waters and the arctic will be the new frontier and new ownership laws will need to be promulgated • Ethics, corporate governance issues and diversity of the Board will present new challenges to functional apex managers for securing approvals for new ‘risk – laden’ ventures as supervision and stakeholder assertiveness will increase and appetitive for risk will weaken These trends, and to my mind, a trend is a composite of the past, present and the foreseeable future with both direction and sustenance, will shape the emerging hydrocarbon industry as it seeks to monetise ‘exigent’ hydrocarbon reserves. Please note that I am not even venturing into the realm of product prices, geo-politics, global economic cycles, trading and efficient transportation of hydrocarbons from producing to consuming centres economically and competing fuels that will remain super-ordinate factors.

So, how prepared are we to accept these profound changes. The answer lies in two parts; the first being to acknowledge that these trends indeed exist and have sufficient traction to become autonomous in the not too distant future and the second is to start taking concerted action at the global industry level to ensure that the potential for growth that exists is realised efficiently. It is not an easy task as it means transgressing many rigid boundaries such as those of State owned oil companies connected primarily to the social agenda, Private Sector companies connected primarily to the profit agenda, myriad stakeholder activists connected primarily to the idealism and egalitarian agenda and Governments connected primarily to the populist agenda.

A few solutions come to mind.

First, we have to jettison the extant industry construct of operating in silos and enter into the regime of long-term strategic partnerships across the value chain; a simple case of united we stand v/s divided we fall. Maybe not so dramatic, but reasonably close! Symbiotic relationships exist and

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need to be leveraged toward constituting equitable and seamless partnerships. Even specialist vendors and services providers will find it difficult to continue with the present model of using niche technology as leverage to extract rent for service provided and then walk away without regard to overall success of the enterprise. This means the extant model of doing one’s part well without regard to the overall success of the venture will have to retire. It is doing well collectively that will succeed because if one actor has a resource, others have niche technology, another has the ability to manage vendor chains and support regulatory frameworks, while another has access to the market.

Second, we need to constitute a global think – tank for the industry that could undertake structured analysis and validation of this ‘global partnership’ hypothesis. It would work on establishing common ground on best practices, regulatory frame-works, price stability mechanisms, enabling fiscal and policy regimes and proposing templates for equitable and seamless partnerships. It will also undertake advocacy initiatives on educating and encouraging various actors to get their acts together and constitute an ensemble cast for long-term benefit of the industry.

Third, we need to enter into an era of collective and open innovation, pooled R & D and capacity building in oil field services & equipment, support services, supply bases and disaster containment. Technologies directed toward safety, disaster containment and climate change mitigation affects us all and therefore need to be addressed on priority. As Governments are gradually, but surely goaded toward convergence on global climate maintenance, pressure on the hydrocarbon sector, traditionally seen as one of the large polluters, will intensify and stringent penalties such as carbon tax will be forthcoming.

Fourth, as risk in venturing into unchartered domains increases and appetite for risk-taking decreases in the Board Rooms of companies, financial institutions and risk underwriters, it would become necessary to establish a pan - industry entity that would provide coverage against ‘incremental risk’ emerging from new technology, new areas of operations, new paradigms of management and unstable political regimes and / or regulatory frameworks.

Fifth, the ‘big crew change’ imminent in the global hydrocarbon sector is much talked about, but seldom addressed in any cogent manner. For sure, some countries, notably Brazil have taken steps to cater to its own manpower requirements, but at a global level, no such collaborative venture presently exists that encourages students to engage actively with the hydrocarbon sector. Further, the skill-sets required to monetize exigent hydrocarbon reserves will have to be mapped so that manpower could be trained in an organised and systematic manner. Efforts will also be needed toward cross-culture sensitisation as going forward manpower teams from various countries, cultures and languages will need to work together.

This effort too will call for cross border collaboration.

Will these prescriptions entail dilution of sovereignty by Governments, ceding USP and core competence to the competition, assuming risk where none existed earlier and entail fraternising with the enemy? I do not see it in this light. The industry has adequate bandwidth to constitute a number of ‘networks’ with each network comprising players across the value chain. It is these networks that will then collaborate on some ‘common-cause’ issues and compete on others. From collaboration or competition, we will have to migrate to collaboration and competition. ‘Co-petition’, is a term coined by my colleague Mr. Mehmet Uysal, CEO of TPAO to describe the emerging relationship between NOCs and IOCs. I propose to extend this construct further to this concept of value chain networks.

Please also note that we in the hydrocarbon industry cannot remain oblivious of changes around us in the energy sector. Post Fukushima, Japan and Germany may have abandoned reliance on nuclear energy, but elsewhere, even in India and in the United States, it is making a quite come-back.

Cutting-edge research is being undertaken toward developing an ultra-modern nuclear reactor using the 'traveling wave' technology that uses depleted uranium and does need to be refueled for at least 40-60 years. Closer home, work is progressing on thorium based fast breeder technology in India. The best minds are working on these nuclear frontiers and the issue is not if, but when they achieve commercialization; and when they do our much vaunted prognostications of demand in an assured market for hydrocarbon-based energy to the world well into this century would go for a toss.

So, seven trends and five solutions later, I wonder whether an era of egalitarianism, collectivism and even socialism, contained in these prescriptions, ever emerge given the diversity of actors concerned and their limited attendant agendas. Perhaps not, but someone has to plant a seed, propose an idea, moot a radical concept for the common good of the industry. I am sure this privilege is not mine, others with more emancipated minds may have thought of it earlier. I propose to join this tribe and add to its numbers.

May this tribe increase and flourish!

Sudhir Vasudeva Chairman, Petrotech CMD ONGC

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Message Record level capital expenditure by E&P Companies last year shows the positive outlook despite concerns over global instability. The year 2012 has started with further consolidation of E&P activities and will remain robust as also revealed in various surveys and reports. One of the recently concluded surveys forecasted improved performance and higher levels of capital expenditure this year with impetus on exploration and redevelopment activities. However, increased risk and operating cost are still the top spoiler for the growth of Oil industry; not to everyone’s surprise, the second most acute obstacle for the growth of the industry is looming shortage of skilled human resources.

Being global in nature, Indian oil companies are no exception and the problem is as acute as with their global counter parts despite having one of the largest pool of skilled manpower available within the country. The missing link is the non-inclusion of large portion of that available skilled manpower – women. It could be attributed to the lack of awareness and interest and the existing stereotyping and image of the industry as being a male bastion. Women currently represent a fraction of the oil industry’s workforce and are even scarcer in engineering and other technical fields that are the lifeblood of this business. Being a traditionally male-dominated industry, gender diversity concept only recently have found their way into corporate policies, executive managers’ desks or into Board of Directors meetings. In many cases, the inclusion of women in leadership roles is still far from being a reality in many countries. Indian companies lag behind in the gender ratio in Oil industry as compared to western oil companies, Statoil being far ahead with around 37 percent of its employees as women at various positions. Indian Companies have made efforts in the recent past to gain momentum in increasing the numbers but still the scope is enormous given the huge talent pool available in India. To tap this huge, but still untapped, pool of human resource, innovative recruiting and retention practices can play significant role in increasing the pool of skilled workers with the inclusion of the vital women workforce. In so far more male-oriented cultures, the pace of recruiting woman in India is picking up and is an advantage to industry with their diverse idea and skill set forming a formidable force together.

On this special occasion of International Woman’s Day, I would like to take this opportunity to congratulate all my women colleagues and wish them success in their activities. The existing, but increasingly growing, Women workforce are doing a commendable job defying all odds and stereotypes, thus leaving a strong footprint and contributing towards the growth of the industry . They are the role models for the future generation, and are achieving greater heights with every passing day in this male dominant Oil Industry.

I also extend invitation to all the women seeking dynamic & challenging career ahead and want to be part of truly global Industry. This edition of Journal includes some of our industry women achievers who have distinguished themselves in our industry and are role models for many aspiring young women.

The United Nation Theme for 2012 International Woman Day is “CONNECTING GIRLS, INSPIRING FUTURES”. For our industry too, there couldn’t be a better theme to work upon to tackle the skill shortage for the growth of industry. In today's competitive global economy, the empowerment of women and integration into the corporate structure is essential towards building up sustainability.

Naresh Kumar President, Petrotech & CMD, Deepwater Drilling & Industries Ltd

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Message The teens of today who will be the leaders of tomorrow are not the same what we were at their age. We, at their age, never had the access to Facebook, Linkedin and other social net working channels. Today’s generation believes more on networking, social meetings, connectivity and collaboration. The digital world generation which uses computers, media tablets, iPads, smart phones and social network channels is growing fast the world over and will constitute the largest group of consumers worldwide.

The way of working and thinking of this generation is quite different than ours. Therefore, the requirement, working conditions, the needs and the methods of training of this generation will have to be different.

Hence, it is necessary that we should start thinking and analyzing today as to how their way of working will be? What kind of resources, skills and practices we will need to meet the requirement of such working population.

For a working population belonging to past, present or the future, there was and there will be need for upgrading their skills on continuous basis. The point is well summarized when we say “You cannot manage a third generation company with second generation processes being carried out by first generation employees” This in nut shell sums up everything - the importance of an organization, up gradation of processes and training & development of its employees.

All the three factors must progress together for survival of the company otherwise the chances are, company will be wiped out from the market.

There are a number of examples when the companies had the best of the technology but their employees were not trained enough to make use of that technology and hence either these companies went bankrupt or lost their market share considerably. Once we know that a particular technology is likely to come five years down the line, it is imperative that we should start preparing our employees today in that direction.

The world economy has seen many upheavals. During the period of turbulence coupled with recession, the companies struggle to survive and in such situation, it is generally observed that the axe falls on the resources rather than making use of the resourcefulness of these resources.

Therefore, the first and hurried reaction of the management is to cut the cost by reducing the manpower and the expenditure on training. The thinking behind this rationale is that these steps will result in financial stability and will save the company from the crisis stage but actually it is not so because if the same human resources are utilized properly can help bring the company out of this mess. Therefore, cutting the expenditure on the training or reducing manpower is not a solution in itself but the real solution lies in developing these human resources.

In order to keep pace with the changing world, it is essential that businesses need to keep their employee skills updated with the changing realities to remain competitive in the market. If the manpower is well trained, the organisation can have competitive advantages. Such organizations can take care of the changes / trends relating to technology etc. The training imparted with a mission can help achieve Individual, Organizational, Functional and Societal objectives.

People in any organization are its prime movers. It is the people who can make or create an organization of one’s dreams and steer its destiny.

Therefore, management’s confidence in its people is a must if the management wants to realize their full potential.

While we have talked about the current generation vis-à-vis the upcoming generation, there is a gap of about two decades. Side by side, two decades down the line, our country’s oil demand will grow by over 40% and shall continue to grow thereafter as well. This will require more capacity building resulting in expansion in the size of our operations coupled with revolutionary changes in work culture, systems encompassing organizations in addition to the rapid change in technology and higher levels of competition. Therefore, we will need to have a separate set of skills, knowledge and leadership aligned to the global management reality.

Petrotech has an ongoing MoU with the University of Alberta, Canada for developing human resources and providing exposure to the heavy and unconventional oils - the future of oil. The MoU provides for training and collaborative research in the areas of our interest, exchange of professional expertise in the area of petroleum management and create a conduct for a closer academic and business ties between Alberta and India.

Petrotech will now be conducting 5th Industry Educational Tour for the senior executives of oil Industry to Canada. This platform is the only one of its kind for updating our industry experts and leaders with the North American state of art technological developments. This is also a forum to network, exchange and share experiences, identify areas of collaboration and investment etc besides learning about each other’s management practices and to promote closer business and professional ties between India and Canada.

Have a happy reading!

Ashok Anand Director General, Petrotech

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Editorial Notes Dear Patrons of Petrotech, The year 2012, started on a uncertain note, turbulent price of commodities including oil, gas, metals, resulting from European economic upheavals, economic sanctions on Iran, Iranian embargo on supplies of oil to Europe, slowdown in the global economic growth, increased production of US shale gas, pressure of regulatory bodies, environmentalists NGOs etc. Is it an opportunity to grow and excel or wait for a favorable time to return?

Opportunities in Uncertain Times One advantage of uncertain and turbulent times is increased creativity and innovation. We all know the old saying “necessity is mother of invention”, and how true it has proved during last few years. Following over two decades of intense research, large exploitation of Shale Gas in US started, for overcoming high dependence on import and to increase its energy security, and we have seen the result. Canada saw an opportunity to invest more in research innovation for recovering heavy oils trapped deeper. Environmental issues prompted tremendous development in improving efficiency of solar PV cells and reducing its price. The crisis created by the Chinese monopoly on the rare earths brought out new innovations in application of nanotechnology for improving quality of life and reducing depletion of scarce mineral resources, which also has lead to development of catalyst free of rare earth.

The Iranian embargo on supplies of their crude oil to Europe, instead of breeding gloom, has lead Europeans to work on a breakthrough innovation for meeting their increasing demand for diesel fuel. Researchers at Sweden’s Stockholm University, workings with a team from the Polytechnic University of Valencia in Spain, started working on converting their surplus gasoline directly into diesel, using a new zeolite catalyst.

Remember, what Bill gates said long back “Innovate or Perish”. Increasing dieselization of world fuel consumption is engendering a shift toward more and more to diesel at the expense of gasoline. Its is trend in the US and India as well, and both the countries heavily depend on imports of oil. Such innovation, resulting from the Eropean turmoil, is bound to help all of us.

But, how long shall we live on purchased innovations and technologies? We have number of research organization in the oil sector, but how many do serious work on innovation. Very few, which may be counted using only one finger. Under the circumstance, it is happy to note the results of innovation at IndianOil R&D, which has recently own coveted Hart Energy Award for its novel technologies.

India invests less than 1% of our GDP on R&D, which is much lower compared to China and many EU countries. Govt. of India has made plans for increasing investment in innovation and brought out attractive financial incentives for the companies to increase investment into R&D. But, accept for IndianOil, which has its R&D Head on the board, not many companies have seriously invested into R&D. This investment has to be more in attracting and developing right talents and retaining them by creating right environment conducive to research, and freedom to innovate.

Investment in R&D is certainly an investment in securing growth in future, and we cannot postpone appearance of future. We only delay our growth and development by postponing investment into R&D, and loose to competitors, and remain followers, instead of being industry leader.

We all are concerned for the continuity in growth of Indian oil and gas industry, which is reeling under the burden of subsidies. It has lead to cost cutting measures, and the tow areas which are generally axed first are R&D (Research & Development of processes) and T&D (Training & Development of people).

As both are essential for sustaining growth, no visionary company curtails investment in these two areas.

Unconventional Oil & Gas for Energy Security Of the total global oil and gas reserves, only 30% is in form of conventional O&G, and 70 % is unconventional. Exploitation of unconventional oil and gas is faced with great technological, human and environmental challenges. But the future of oil lies there, and oil industry is known for its high risk appetite, and deriving power from possibilities. India, also, has great potential of shale oil and gas and Gas Hydrates, which needs to be exploited, though faced with many environmental issues and challenges, which we have to overcome by collaborative efforts.

In order to draw from the rich experience and expertise of our industry elders, the Petrotech Veterans Forum (PVF) meets at certain intervals. In last one year, it met on two occasions to discuss and deliberate on the power of possibilities of Shale Gas and Gas Hydrates in making India energy self-reliant. Having realized the great potential of Shale gas in India, the PVF further deliberated the issues and challenges associated with exploitation of shale gas in India, and sent their observations and recommendations to the concerned in the Govt. We understand, that the Govt. is working, very seriously, to bring out Indian Shale Gas policy sometime next year. This issue carries an article on the potentials of shale gas in India and also the recommendations of PVF. Industry Educational Tour To Alberta Unconventional oil and gas is the future fuel for mobality. In order to familiarize our senior oil executives, with the challenges of Heavy oil recovery, transportation, processing and its management, Petrotech has entered into a MOU with over 100 years old University of Alberta. Alberta is Mecca of heavy oil, and under this MOU, Petrotech organizes an Educational Tour to Alberta, which provides them a platform to interact with experts of each area related to heavy oil extraction, up-gradation, transportation and processing.

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They also get a opportunity for visiting the plants and research centers and also interact with the officials of Ministry of Energy, learning about their investment policies and opportunities for the Indian Oil Industry. In fact, as a result of such interaction, the Minister of Energy from Alberta, participated with contingent of 28 delegates, for the first in the Petroech-2009, and also put up an exhibition in 1000 sqm area, and they returned to the Petrotech-2010, in greater strength, and plan to be there in the Pterotech-2012, as well.

Our oil executives return extremely enlightened, and highly networked from this tour, which has resulted in development of collaborative R&D, sabbaticals for academia and insdurty,, training and skill development, learning about new technology and about the one under development etc, besides, providing an insight into ways of doing things differently. Besides, educating our executives, it has created tremendous goodwill among between the two countries.

5th Industry Education Tour to University to University of Alberta and industries in Calgary and Fort Mc Murray is slated from 9th - 14th July 2012; an opportunity which the senior executive from upstream and downstream petroleum industry must not miss.

Women in Oil Industry During the period January -March 2012, three important events - Women Day, Fire and Safety Day, and Earth Day, where celebrated. Infact the whole month of March observed as month of womens. This issue of JoP brings out the story struggle and success of the some of the women executives of Indian Petroleum industry.

It very difficult to evaluate the tremendous contribution of women in development, but certainly we can enumerate and appreciate. A recent global survey indicate that the Women Executives are more passionate about their job, more focused on the business issues and challenges, and more ethical compared to their male counterparts.

It’s heartening to see that , in a male dominated oil industry, there are women who moved with grit, courage and conviction, hit the roof, and entered board rooms of some of Indian oil companies. IndianOil had recruited first Woman Chemical Engineer from Jadavpur University, Ms M Choudhuri, who started her career in the production department, which was unthinkable way back in early sixties. She went to become role model for later day women employees in the company. Today, our industry many women executives and workers working in shifts and making their mark in many challenging areas, some of them already on the boards of leading oil companies.

We requested some of the women executives from our industry, to share their story of passion and success with readers of JoP. I am grateful for their prompt response . They penned their experiences, which has been brought out in this issue, which surely inpire the younger generation. I would request all other women employees of our oil industry to share their inspiring stories with younger generation. It shall help, our industry, attract talent, apart from building better image of the oil industry.

Safety and Sustainability Safety and Sustainability are the to faces of the same coin. One can't exist without the other. We cannot overemphasize, need for inculcating deep rooted culture of safety. We have seen the after effects of the oil spills, fires and explosion in the oil installations doing great damage to the triple bottom line for sustainability of our business i.e People, Porfit and Planet. Having good and robust safety systems, equipments and gadgets, in place, is not enough. We, must, continuously evaluate the corporate safety culture, safety awareness, and preparedness of its people and it must be done by independent experts groups hired from external sources, at least once in five years. Recent incidences indicate that in five years, the people at locations change and this is right time to re-evaluate, and take corrective action.

For us, each day is Earth Day, but on 22nd April, every year, we are reminded of the debt of mother Earth, we carry on us, and of our responsibility towards our siblings and next generation, to whom the Earth belongs. We are reminded, on this Day, of the famous saying of Mahatma Gandhi “There is enough on the Earth to meet the need of the people, but not to meet their greed”. It’s time we chaff out our greed from our need ( Asteya and Aparigraha).

Contribution of each individual matters a lot in such matters. Think of the effect of the cumulative contribution of 7.2 billion more people living on earth, and therefore, each one of us is very important contributor, whether, we am at home, on road, in public places or at work place. We have to look for every opportunity to minimize or eliminate waste; improve efficiency and productivity of the self, team, plant and machineries. We need to look at every activity with our third eye, evaluate and improve it continuously.

The new financial year has started, with new MOUs, new plans, new targets, new budget, and, renewed hope and determination to excel, in spite of all odds, issues and challenges. On behalf of the Team Petrotech, I wish you great year of success in all your endeavors and actions for creating wealth for the company and country, attracting talent, developing leaders for leading the industry in future, and building everlasting great places to work and live with.

The Petrotech-2012 is only six months away. Hope, you could send your articles for presentation in the conference. In case, you missed the date, you may send them to us for publication in the next issue of JoP. Until then, please enjoy reading and send us your comments and suggestions.

(Anand Kumar) anand.iocl@gmail.com info@petrotechsociety.org

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Petrotech Welcomes

New Corporate Leaders of Oil and Gas Indutry Krishnamurthi Venkataramanan Chief Executive Officer & Managing Director

Company on May 28, 1999.

Mr. K. Venkataramanan, Chief Executive Officer & Managing Director, joined L&T on June 12, 1969 after completing B.Tech. in Chemical engineering from Indian Institute of Technology, Delhi. He was appointed as wholetime Director on the Board of the

Mr. Venkataramanan established the foundations for Project Engineering and Execution in L&T. He was sent for a specialised training to Denmark for product engineering & plant design, and to the USA for process engineering (1973). In 1983, he became the head of Special Fabrication Shops, Production Engineering and Plant Engineering. He conceptualised, designed and planned the water front loadout facility at Hazira for offshore platforms of up to 6,000 tonnes.

He is instrumental in developing L&T's extensive capabilities in the latest 3D CAD design and integrated project management. He set up L&T's Centres of Engineering Excellence for hydrocarbon sector (L&T-Chiyoda) and power sector (L&T-S&L). He also built process design capability through a Front End Engineering Design group (FEED) for direct access to process technology. He helped transform the company from a fabrication driven EPC contractor to a technology led player. He also established IT-enabled Engineering Services Centres to tap global opportunities.

Mr. Venkataramanan implemented Real Time Strategic Change (RTSC) processes in the company for high performance team building. He implemented various business solutions such as Global Sourcing, Skill Building, Risk Management, Benchmarking, Contracts Management, and intense monitoring of value drivers encompassing financial and operational parameters.Â

Mr. Venkataramanan also formed a dedicated International Business Development Cell to give thrust on the international front. Under his leadership, the project team successfully executed / are executing high technology projects in Qatar, Saudi Arabia, Malaysia, Kuwait, Oman, Sri Lanka and Nigeria.

Mr. Venkataramanan has been associated with many industry bodies. These include the Indian Institute of Chemical Engineers, Bombay Chamber of Commerce & Industry, Chemtech Foundation, and the National Executive Council for 'Petroleum & Power' sector.

V S Okhde Director (Pipelines), Indian Oil Corporation Ltd.

Mr. V.S. Okhde has taken over as the Director (Pipelines) of Indian Oil Corporation Ltd., the country’s only Fortune 100 company. Prior to his elevation, he was Executive Director (Exploration & Production).

Mr. Okhde brings with him diverse experience of over three decades in various facets of hydrocarbon pipeline systems such as Operations, Maintenance, Engineering Services and Projects. Additionally, he has held senior management positions in the Business Development function.

He will head IndianOil's cross-country network of crude oil, product and gas pipelines, spanning almost 11,000 km with a capacity of over 75 MMTPA, the largest in the country.

A Mechanical Engineer from Regional Engineering College, Bhopal, Mr. Okhde also holds a degree in Executive Management from Management Development Institute (MDI), Gurgaon.

CEOs Speak Deepwater exploration is the future of ONGC Sudhir Vasudeva, Chairman and Managing Director, ONGC, spoke in an interview in Ahmedabad about plans to enter the city gas distribution centre (CGD) business, deepwater exploration and arresting the decline in output from ageing fields, among other issues. Edited excerpts:

Mr. Sudhir Vasudeva Chairman and Managing Director ONGC

You recently announced a joint venture with ConocoPhillips of the US. What next?

We have signed an MoU (memorandum of understanding) to join us as a partner and share technology for 19 blocks in India. We will also explore the possibility of partnering in the US and other countries.

Whenever there will be a policy of shale gas in place in India, ConocoPhillips would be our preferred partner. Deepwater exploration is the future of ONGC and we would want them as our partner, first time and every time. In the next six months, we will be able to chalk out a road map, including future investment plans. We are aiming to recover 1 billion tonnes of oil and oil equivalent from unconventional hydrocarbon sectors like deepwater and shale gas by 2020.

There has been a decline in production for quite some time now, especially in Bombay High. Are you looking for a strategic partner for Bombay High?

Fifteen big fields that are contributing 80% of our production are about 35-40 years old. Through our efforts in IOR/ EOR (improved oil recovery/enhanced oil recovery) we are able to recover 8.5 million tonnes (mt) and against the global decline of 4.5-5% per annum, we have been able to arrest it to 1.5-2% levels.

For Bombay High, we must accept that the law of diminishing returns does not work here. The board yesterday (Wednesday) cleared the proposal of `600 crore for first part of phase three

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redevelopment plan for Bombay High.

This is expected to yield 1.03 mt of oil and 213 million cubic metres of gas.

We will not be able to take the production from 28% of recoverables to 40% in this phase. Maybe there would be a phase four. As far as a strategic partner is concerned, we are not really looking at one now.

What are your plans for the marginal fields that are not commercially viable?

We will bring together four-five fields that are lying close to each other and build a common platform for them for transporting crude. We will be investing close to `26,000 crore for developing 11 clusters comprising 34 marginal fields and this will help us yield 11 mt of oil and oil equivalent. Thanks to this, we have advanced our target for gas production for 2018 to 2014.

What is the status in the South China Sea where China has opposed a venture between ONGC Videsh Ltd and a Vietnamese oil company for exploration?

It is a very hard bottom and we have removed the rigs as of now. It is for the Vietnamese government to support and protect us. Our investment is a completely commercial one. If there is a political issue, it is for the Indian government to look into it.

ONGC has been battling manpower issues. One out of every three persons at the officer-level and above is going to retire by 2014.

Attrition has been a problem for us. It is also a matter of pride when we see private oil and gas companies flourishing with ex-ONGC employees driving their growth stories. From 46,000 employees at the time of Bombay High’s discovery, our strength is today reduced to 33,000.

To overcome the problem, we are in the process of hiring 7,000 people in the next five-six years. We are thinking of inducting at the middle-level also. We are exploring the option of outsourcing some work at the field-operator level. It is the middle-level people who are going to own this company in future and we have hired McKinsey to work out a strategy.

What is the status of the stake sale offer

by British Gas (BG Group Plc) at Gujarat Gas Co. Ltd, where you had bid jointly with Gujarat State Petroleum Corp.

(GSPC) and Bharat Petroleum Corp. Ltd (BPCL)? Are you going to sweeten the offer?

We have also roped in Oil India as a JV partner in the consortium. While GSPC will hold 50% equity in the JV, ONGC and BPCL will each give 5% of the equity stake to Oil India Ltd. We are the only bidders for this. British Gas feels that the valuation we have offered is low. It is now a matter of negotiation between us. We’ll see if we can sweeten the bid or not.

Why haven’t you been able to achieve financial closure for the ONGC-Petro Additions Ltd (Opal) petrochemical complex at Dahej after six years? What is the current cost of the project?

The cost of the project is currently `21,440 crore, up from `12,440 crore.

This is mainly due to the inclusion of many other products. Also, the project was initially conceived in 2006.

Power, which was not considered earlier, has been included in the project.

The project will soon achieve financial closure. Currently, ONGC has a 26% stake while GAIL India Ltd and GSPC hold 19% and 5%, respectively.

We might go for an IPO (initial public offering of shares) in future.

There were talks of ONGC jointly setting up a refinery project with Cairn India Ltd in Rajasthan. The 680 km crude pipeline project by the Cairn-ONGC venture has been stuck for over a year.

There are already so many refineries in Rajasthan, like the one in Mathura or Bina; so it is for the government to decide if it wants more. Once the government decides that it wants more,

the question of who would develop it arises. For the pipeline project, there have been some negotiations recently and we hope to resolve the issue soon.

There has been a lot of controversy regarding the recent stake sale to Life Insurance Corp. (LIC) of India. What are your views on this?

It’s a government decision and I can say nothing on this.

onshore discovery that you made How significant is the KrishnaGodavari recently?

We’ve made a discovery and have drilled one which is producing 75-76 cubic metres per day. However, it is too early to say anything beyond this. We don’t know how big a field it is.

Source: www.livemint.com

LNG prices likely to stabilise near USD10/ mbtu: Petronet High LNG prices worldwide do not reflect the demand supply mechanism, Dr A Balyan, chief executive officer and managing director, Petronet LNG said. Factors beyond the demand supply mechanism are contributing to it, he added.

Dr. A. K. Balyan Chief Executive Officer and MD Petronet LNG

"Pre-Japan crises, Fukushima problem and tsunami the prevailing rates for the Indian west coast supply were to the order of about USD 9.5-10/mbtu. After that they have been rising and had gone up to USD 15-16/mbtu," he told CNBC-TV18. They currently stand at USD14/ mbtu, but the reasonable price should be USD 9.5-USD10/ mbtu, he added. Balyan expects LNG prices to stabilize around USD10/mbtu.

The LNG prices have shown a fairly firm trend, have you seen any flagging of demand at higher levels?

Worldwide, the prevailing LNG prices to our understanding are prevailing at higher prices. They do not reflect the demand supply kind of mechanism.

There are other factors which are contributing to higher prices particularly for the Indian sub-continent.

We have Europe with low growth of just about 1%, prevailing prices are different than the Japan-Korea market very high prices. Many things that go beyond proper demand supply mechanisms are contributing to higher prices.

You are saying that the effective price for the Indian customer is not what we normally get to see in the form of global prices?

If you remember pre-Japan crises; Fukushima problem and tsunami the prevailing rates for the Indian west coast supply were to the order of about USD 9.5-10. After that they have been rising and had gone up to USD 15-16.

Now they are around USD 14, but they have not comeback to the normal scenario of about USD 10 or USD 9.5

which is more reasonable price that should be.

The Dahej terminal wil be up and running soon and there is expectation that because of the demand scenario it will be a 100% operational capacity that it would run at. Give us a sense in terms of the demand supply deficit that we are seeing at this point in time what would be the additional capex that Petronet LNG would plan possibly in the next two years?

The Dahej terminal for us is an important terminal and the most priority according to the expansion plan of Dahej and the plan is to expand from 10 million tonne present capacity to 50 million tonne. We are on way to this project, our detail feasibility report is over and front end engineering is going on now.

The expansion is on a specific model.

We have a firm commitment from two companies for some additional quantities about 2.5-3 million tonne capacity per annum to GAIL and about 1-1.25 million tonne to GSPC. These two companies are giving us some advance, which would perhaps take care of our equity, so it is on a different model.

It is a long-term commitment, volume commitment by us that would mean that our enhanced capacity is also committed for long-term, 20-25 years time. The model is that the two companies would forward some advance to us and we will see what can be funded through internal accruals.

If there is some funding required we will have to raise some loans, but that would perhaps be evaluated in next one-two months time.

Can you give us some timetable of increase in your processing volume?

When does the second jetty come up at Dahej in terms of a timeline and what will that do to your volumes and margins?

When does the Kochi LNG terminal start adding volumes for you?

Dahej has 10 million tonne capacity and we are presently operating about 112-115% kind of a capacity utilisation. There are three components that are required for capacity; marine construction of jetty and other facilities, storage tanks and regasification, vaporisation part.

Our jetty construction is on and by 2013 mid or end of 2013 we will see that becoming operational. That would give us JoP, January-March 2012

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flexibility to bring in more ships perhaps bigger ships. The turnaround time would be much better. We hope that by that time regasification, which is most important component will also be done, we will expedite it and hopefully it would come by that time. If that is done then perhaps by '13 end we may go higher than the present capacity of about 11 to 13-13.5.

When the tanks come in, perhaps we can do to our full capacity of 15.

What can be expect for FY13 in terms of additional imports or any sort of longterm agreements that you are currently in talks with? We understand that you are in talks with a couple of companies in Qatar as well as possibly acquiring further stake in Russia. Give us a sense of where all of this stand at this point in time and when would it fructify?

Presently, our long-term contract amounts to about 7.5 million tonne capacity, so we have a volume available to us 2.5-3 million tonne for long-term contracting. We are in negotiation with Qatar; we have progressed significantly with RasGas on several mechanisms, but little more time is required to arrive at a mutually agreed price formula and the price. We hope in the next two-three months we should be able to move ahead on that.

We are also negotiating with Gazprom, other terms and conditions all have

Kochi LNG terminal under construction

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been more or less agreed, but we are now starting our pricing which is little tricky thing, it will take time. Gazprom for the first time is coming in a big way as an exporter, so their timelines also needs to be firmed up, so the pricing negotiations are now starting.

We are also looking at some other projects like the Australian project also have some volumes, some new finds which are significant for us like in Mozambique or Angola, which is now ready for delivery. All those projects also add on and we are looking at some quantity from other suppliers in a way to diverse our portfolio of supplies. We are confident that by the time our additional capacities come in at Dahej or at Kochi we will surely have firm long term contracts in place to utilize that.

From what we understand from all this power companies cribbing about the want of gas, especially KG basin gas there is actually a lot of demand for gas from the east coast though the gas actually lands up in the west coast are you better placed to transport it now? Are you making more margins on that transporting because there is so much of a need for want of expected KG Basin gas and more importantly does all this speed up your Gangavaram project.

I see that Gangavaram project is very

important. It is going to be playing a very pivotal role in the overall balancing part is also supplying gas from the East Coast. It will be linked up to major pipelines there. Gangavaram is within the Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR), a hub there.

I see a similar situation or maybe a shade better than what Dahej is there.

There is a big refinery at PCPIR. From growth point of view long term perspective if you see balancing of the gas, flexibility in providing gas from that side, it is going to be a very important thing for us. We are upbeat that we can make a difference on that.

Wanted a quick word with you with regards to the stake of ADB or Asian Development Bank, where have the talks reached in picking up that 5.2% stake?

I can only say that things are processing satisfactorily and maybe in the next couple of months we could look at a good strategic partner coming in place of ADB and that is what the promoters also want.

The government has a similar thinking, so things are moving satisfactorily.

Source: Moneycontrol, March 30 , 2012

Running a refinery in North-East is fraught with challenges

Dipak Chakravarty, Managing Director spoke to Hindustan Times on a range of issues.

Dipak Chakrvarty Managing Director Numaligarh Refinery Limited

Numaligarh Refinery Limited (NRL), was set up at Numaligarh in the district of Golaghat in Assam in accordance with the provisions made in the Assam Accord signed in 1985. It has been conceived as a vehicle for speedy industrial and economic development of the region.

What are the challenges of running a refinery in North-East?

Unlike other parts of the country, running a refinery in North-East is fraught with challenges on diverse fronts. The primary challenge emanates from locational disadvantage, leading to logistical bottlenecks. There is also the challenge arising from lack of ‘industrial inertia’ that tends to impede industrial growth.

How healthy are gross refining margins (GRMs) delivered by NRL? How well do you compare with GRMs achieved by other public sector refineries which rely on crude import?

Fundamentally, GRM represents the “spread” or differential between price realisable from sale of products and purchase cost of crude oil and other raw materials. GRMs are also a measure of operational efficiency. NRL’s GRM in 2010-11 was $15.39 per barrel — among the highest in the industry.

Unlike other refineries which import most of their crude oil, NRL gets all of its crude from the oil fields in the NorthEast. What impact does this have on your overall business?

NRL has so far been processing crude oil from the North Eastern oil fields and its crude procurement prices are linked to the international market.

Therefore, price volatility in international market influences NRL’s crude procurement prices as well. However, being a well-head refinery, NRL is fairly insulated from supply disruptions. The North East refineries, in particular, are sensitive to changes in duty structure of crude and petroleum products. In June 2011, government reduced Customs Duty on crude oil, MS and HSD by 5%. This measure is not expected to have significant impact on profitability of other refineries in the country processing imported crude. However, it has seriously affected profitability of the North East

refineries, including NRL processing only domestic crude.

To what extent do constraints related to crude supply act as a hindrance to NRL’s expansion and growth plans?

NRL’s refinery at 3 MMTPA capacity is sub-economic in size. Even at such suboptimal size, NRL has to operate below its installed capacity due to inadequate availability of domestic crude. On the other hand, importing limited quantities of crude for processing at NRL is cost prohibitive.

In order to achieve economic scale of operations, NRL has mooted a plan for refinery expansion from 3 to 8 MMTPA by processing imported crude oil. To facilitate transportation of around 5 MMTPA, imported crude oil from Dhamra port in Orissa to Numaligarh, a new pipeline is envisaged to be constructed.

Source: Hindustan Times, Chandigarh, February, 2012

Numaligarh Refinery

JoP, January-March 2012

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"CSR helps us create a positive impact through our business practices" The previous edition of Indian Oil News (Jan.2012) carried a cover story on the launch of Indian Oil’s Sachal Swasthya Seva rural mobile healthcare scheme. A major corporate social responsibility (CSR) initiative under the guidance of Mr. Sudhir Bhalla, Director (Human Resource), it is intended to showcase the Corporation’s commitment to partner the Government of India in enriching rural health care, especially in those villages that do not have primary healthcare facilities yet.

Brimming with many more ideas to take the Corporation’s CSR agenda to new heights, Mr. Bhalla interacts with the Indian Oil News team…

Mr. Sudhir Bhalla Director (HR), IndianOil

How does Indian Oil align its CSR agenda with its business goals?

Since inception, CSR has been one of our key social brand indicators, The fact that for more than half a century now Indian Oil has been ensuring uninterrupted supply of petroleum products to every nook & corner of the country without profit considerations demonstrates our social commitment.

I believe this by itself is our enduring commitment to society at large. Besides, over the years, we have actively supported innumerable development projects, mostly for provision of clean drinking water, education, healthcare & sanitation, etc, especially for the under-privileged sections in rural areas. The purpose of CSR is to engage in community development and to create a positive impact through the company’s business practices.

What are the focus areas of Indian Oil’s CSR agenda?

Healthcare, education and drinking water have been the thrust areas of our CSR activities for many years now.

Indian Oil Sachal Swasthya Seva or free primary healthcare through mobile medical units is another earnest endeavor to extend quality healthcare facilities to people in rural areas. We plan to extend this initiative to other states too. We are already running two full-fledged hospitals, one at Mathura and another at Digboi. The assam Oil Division School of Nursing at Digboi has been training aspiring nurses successfully for the past 25 years.

How will sanchal Swasthya Seva impact business at our Kiran Seva Kendra (KSK)?

The CSR initiative being based in and around the KSK, as providers of free,

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JoP, January-March 2012

high- quality health service, in addition to selling fuels. Healthcare is one of the vital needs of the rural populace, thus this project will help strengthen our bond with the villagers in the hinterland.

I have no doubt that in the long run, this initiative will auger very well for IndianOil & KSK branding, leading to a lasting positive impact on our business.

In these difficult times , do you think this programme can be sustained in the long run ?

The IndianOil board has already approved a budget of Rs. 26.91 crore for running this progremme for three years. Meanwhile, within the permissible budget & CSR policy, we shall also consider expansion of such programmed to others parts of the country. A comprehensive policy on CSR is on the anvil with the consent of the board.

What are the new perspectives in DPE’s recent guidelines on CSR? As per the new Department of Public Enterprises (DPE) guidelines, EPSEs must shift from ad-hoc/charity based CSR initiatives to ‘project-based’ initiatives. This means that every CSR project will have four components viz.1) Baseline Survey, i.e., need assessment, 2) Implementation 3) Monitoring and 4) Impact Assessment. The first three activities have to be done through external agencies, whereas monitoring can be done by in –house officials/committees. The agency involved in impact assessment has to be different from the one involved in implementation. We are in discussion with TISS, the national CSR hub designated by DPE, for signing an MoU for baseline survey in the villages in the vicinity of 40 locations across all

Division. TISS will also conduct impact assessment of project underta at these villages as well as our ongoing CSR schemes. Only 5% of the annual CSR budges can now be allocated for non-project based initiatives. And only project-based CSR initiatives will be included in MoU evaluation.

CSR & sustainability are considered to be two parts of the same coin. How do you see this unfolding in the near future?

I believe that, just like our western counterparts, CSR and sustainability will go hand in hand in India too. In the western world, CSR is gradually evolving into a broader framework of ‘sustainability’, where ‘enterprise responsibility’ is driving a gamut of sustainability0-related initiatives. For instance, we have already made huge investments in the rollout of lowsulphur green fuels to meet the latest Euro norms and expanded our energy portfolio to include many renewable energy options. Though such responsible enterprise initiatives are vital for a better world tomorrow, we must simultaneously recognize that there is a huge gap between the quality of life of the ‘haves’ and have-nots’ in India, a lot has to be done in terms of ‘social intervention for development’ That’s where CSR comes in – to bridges the gap in some essential services delivery, thus supplementing and contributing to the Government’s objective of inclusive growth.

CSR and Sustainability are, after all, people movement. They are mainly about change of mindset to do more for society and to judiciously use energy, for the benefit of our future generatios.

Source: IndianOil News

Real time PR with real time accountability

K S Jamestin is Director, Human Resources and Chief of Corporate Communications, ONGC Ltd. He wrote this piece on the occasion of National PR Day K S Jamestin Director(HR), ONGC

BEFORE any quick adoption of new platforms, we still need to know which communication channels best serve the purpose of ONGC optimally.

The validity and veracity of communication is sacrosanct, and needs to be verified before being broadcast. es, these new changes have definitely brought in more speed in information dissemination and placed more responsibility and accountability on PR professionals.

APPRECIATE that what you do impacts the organisational image profoundly, which calls for responsibility and honesty in work... you can only communicate what you know, and hence the need to be informed accurately, not only of the information you share, but also of the content and relevance to the overall function of the organization, and the sector and the country at large Corporate communications has significantly evolved from its origins wherein it was largely relied upon and essentially called in to transmit important messages of strategic interest, mostly on an intermittent basis. Today, it effectively plays the role of the organisation’s face or external interface on almost a day- to- day basis. This is not to forget the extremely important and increasingly critical role that internal communications has come to play for employee engagement in the current times. To my mind, the key challenges that any sound communication strategy must necessarily look to address are: • Clarity and consistency of the message across all engaged media -- ensures uniformity of interpretation • Verifiability and authenticity of the information and its relevance – ensures accountability and efficiency, which is more relevant in times of crisis or

change management • Proper targeting of the communication – enhances effectiveness and assimilation • Timeliness and comprehensiveness of communication Given ONGC’s integral role in the Indian economy and its stature among the PSUs with many active and varied stakeholders ( Government, shareholders, other PSUs, investors, statutory and regulatory bodies, private players, employees etc), congruence of all the aspects would help to create and manage a favourable image of the organisation across all media and stakeholders.

Of course, being a Maharatna which affirms ONGC’s preeminent status in the industry has its advantages. ONGC enjoys an extremely high credibility quotient. We have a wider reach and engagement with the influencers, the opinion makers and in the media.

The ONGC management actively engages with the media for significant and strategic issues voluntarily. Even on a regular basis, it is ensured that ONGC’s Corporate Communications team maintains a healthy and professional relationship with the agencies, so that premium mentions of the company are found in both national and regional media platforms.

However, given the plethora of communication channels today, we also have to ascertain the relevance and effectiveness of each channel vis- à- vis ONGC’s interests. We at ONGC believe that only a right mix of media can ensure delivery of quality and timely information to our stakeholders.

Our overall experience and interaction with the media has been quite cordial and good. We routinely collaborate with the media during press conferences, personal interviews of top executives, placement of advertisements, press releases, tender roll- outs and corporate video shoots, among others.

et, we must constantly grapple with a rapidly evolving media and communication landscape, with the proliferation of tools and delivery mechanisms available today. This is largely an era of instant communication, with new digital media at the forefront of change. It becomes imperative to stay at the cutting edge of such technological changes but the core tenets of our communication strategy at ONGC largely remain intact, although the delivery media might have changed.

In essence, the messenger has changed, the message has not. But the message has to be adapted to new media.

Before any quick adoption of new platforms, we still need to know which communication channels best serve the purpose of ONGC optimally. The validity and veracity of communication is sacrosanct, and needs to be verified before being broadcast. es, these new changes have definitely brought in more speed in information dissemination and placed more responsibility and accountability on PR professionals.

Digital media, social sites like Facebook, Twitter, Linkedin are the new buzz words and emerging tools which are the real challenges for the PR profession. Follow a group on twitter on the sector you are in, and you know what is happening in real time. Information dissemination has undergone a paradigm shift shrinking the world into the metaphoric village, where information travels very fast.

A smart PR professional has to be technology savvy, honest in his communications and approach and should be able to leverage these tools besides his innate talents to achieve visible impact on the stakeholders. In fact, this is helping in making this field more professional and assiduous, a place where competition rules the roost.

My message to PR professionals, JoP, January-March 2012

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those aspiring and those practising would be simple: • Be receptive to the environment around you. Keep pace with technology. Constantly hone your communication skills – be crisp and to the point. Finally appreciate that what you do impacts the organisational image profoundly, which calls for responsibility and honesty in work • Be nimble footed, mentally agile to changes around, leveraging technology for best and effective results

• Have a visionary approach understanding challenges of your organisation and keep continually honing up your skill sets, knowledge about the sector to be an outstanding PR professional • You can only communicate what you know, and hence the need to be informed accurately, not only of the information you share, but also of the content and relevance to the overall function of the organization, and the sector and the country at large.

Source : Free Press Journal

India A Refiner to the world India should build on its early bird advantage of having emerged as a major petroproducts exporter, and become an even bigger refining hub.

That oil is India's No. 1 import item by value is a well-known fact. That it is also today the country's largest export item is, however, something not as well-known. In the fiscal year just gone by, petroleum product exports fetched India over $58 billion, helping to offset a portion of its hefty crude oil import bill of $141 billion for the year. This has become possible as a result of many developments.

The first is, of course, the sheer growth in domestic crude refining capacities – from hardly one million tonnes (mt) at the time of Independence to nearly 215 mt now. Two, much of these capacities have come up after the 1990s. Indian refineries are, hence, modern and can process even the most inferior quality, high-sulphur, ‘sour' crude.

The ability to convert relatively cheaper oils into high-value products also translates into higher gross refining margins. That, in turn, makes it possible, especially for coastal refineries, to import discounted heavy crude all the way from Venezuela, turn it into petrol or diesel, and export these to the US or Europe.

The third factor responsible for petroleum products emerging as the biggest export earner – ahead of gems and jewellery, which also involves importing rough diamonds and polishing for sale in overseas markets — is somewhat ironic. It has to do with restrictions on pricing of petro-products sold domestically. Public sector oil companies are not only obliged to cater to domestic demand, but also to sell petrol, diesel, kerosene and

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domestic LPG at controlled prices. No such regulations exist for exports, where refiners can freely adjust product prices in tandem with global price movements. The ones to have taken advantage of this freedom are largely private players — Reliance and Essar — which have established global-scale coastal refineries to exploit differentials in both light/heavy crude as well as product/ crude prices. Their efforts have helped turn India into a global refining hub a la Singapore or Rotterdam.

India's refining capacity now far exceeds the domestic demand. The surplus would widen in the years ahead. The fact that many refineries in North America and Europe are small and old — and environmental concerns rule out addition of new capacities — throws open huge opportunities for Indian oil firms to sell their surplus produce in these markets. India's tendency to hop on to the bus long after others have boarded it has, ironically, helped it leapfrog to the latest technologies on offer. This happened in the case of telecom, which saw India sidestep the more expensive landline-based connectivity approach in favour of mobiles, achieving a huge expansion in teledensity in the process.

The same story seems to be playing itself out in refining, where larger capacities (more than the global norm), with a higher degree of complexity in production processes, are being set up almost on a routine basis. There is no harm in the Government promoting petro-product exports as an activity in itself and helping India become a much bigger refining hub than it already is. It should do so before the competition arrives — in this case, not from China, but from Thailand and Indonesia. (Source: Hindu, May1, 2012)

Director (R&D) IndianOil, awarded for contribution to Hydrogen Energy (as appeared in the IndianOilxpress.com)

Dr R K Malhotra In recognition of his stellar guidance in IndianOil’s path breaking initiatives aimed at commercialisation of Hydrogen energy in the country, Dr. RK Malhotra, Director (R&D), has been chosen for the Rudolph A. Erren Award for the year 2012 by the International Association for Hydrogen Energy (IAHE). IndianOil is the nodal agency of the Indian hydrocarbon sector tasked with ushering in Hydrogen fuel economy in the country.

The award is given by IAHE to recognise leadership in the Thermochemical area dealing with heat engines and combustion, thermochemical production, facets of hydrogen transmission, distribution and storage. The IAHE recognises individuals and organisations that have made significant contribution to the cause of Hydrogen energy in five different categories such as Electrochemical, Biological, Aerospace, Thermochemical, and Superior Involvement. The award has been instituted in the memory of Mr. Rudolph Erren, a noted German scientist who developed hydrogenfuelled motor vehicles and demonstrated its use in fleet services in the 1930s.

The award will be formally presented during the 19th World Energy Conference scheduled to be held in June 2012 at Toronto, Canada. The illustrious list of past winners of this award include noted scientists such as Mr. Victor A Golstov, Ukraine, Mr. Vladimir D. Rusanov, Russia; and blue-chip corproates such as MITIJapan, BMW-Germany, Royal Dutch/ Shell Group-Netherlands, Linde-Germany and MAN- Germany.

Oil Refining

India – An Emerging Global Refining Hub Preeti Jain Research Manager, World Refining & Fuels Service, Asia, Hart Energy

“This story originally appeared in the December 2011 issue of FUEL magazine and is reprinted with permission by Hart Energy copyright 2011 (www.hartfuel.com). “ A look at the current state of refining, supply/demand outlook and market opportunities for Indian refiners.

Economic growth has redefined the Indian energy landscape and its future outlook. Asian refining capacity has witnessed rampant growth in recent years, with China and India leading the demand growth for transportation fuels.

To support this growth in demand for refined products, the Indian refining sector has evolved significantly during the past decade. However, in transitioning toward cleaner fuel, the challenge remains fo refiners to meet product demand while ensuring adequate downstream capabilities to produce ultra-low sulfur fuels.

Industry structure India’s oil and gas sector has been dominated by state-owned enterprises both in the upstream and the downstream sectors.

In 2010, India had total crude oil reserves of 8.8 billion bbl and produced 750,000 b/d of crude. About two-thirds of this production is from offshore fields and is expected to reach 900,000 b/d by 2020. However, crude oil production falls far short of domestic refining requirements, and 80% of crude processed is imported from the Middle East (Saudi Arabia, Iran and Kuwait), Africa and Latin America.

In 2010, more than 3 million b/d of crude were imported, making India the fourth-largest crude oil importer in the world.

In the downstream sector, state-owned refiners Indian Oil Corp. Ltd. (IOCL), Bharat Petroleum Corp. Ltd. (BPCL) and Hindustan Petroleum Corp. Ltd. (HPCL) hold 34%, 13% and 7% shares of industry capacity, respectively.

Meanwhile, private players like Reliance Industries Ltd. and Essar have 35% and 6%, respectively, of industry capacity, although most of their products are exported to the Atlantic and Pacific basin markets.

Domestic market demand Within Asia, which represents 31% of global product demand, India ranks third after Japan and China for its domestic refined products consumption. India’s demand for refined products (distillate, gasoline, LPG [liquefied petroleum gas] and residual fuel) increased at an annual growth rate of 4% between 2005-2010, reaching 3.58 million b/d in 2011. Further, aggregate product demand is expected to reach about 4.79 million b/d by 2020 (annual growth rate of more than 3%) and 6.21 million b/d by 2030.

Out of total refined product demand of 3.58 million b/d in India during 2011, distillate represents 38.3% of the demand, and the majority of demand is from onroad transportation (18.4%), followed by 17% for industrial and agricultural purposes. Gasoline growth is quite moderate and mainly used for transportation by privately-owned cars and two-wheelers.

It is expected that diesel will continue to provide the maximum impetus to demand growth from its current share of 38.3% to 47% of the product mix by 2030, and more than 50% of this growth will come from on-road diesel due to increase in the vehicle population. The prime reason for substantial growth for diesel fuel is the price differential due to subsidies from the government. Furthermore, Hart Energy projects demand for aviation fuel to grow at an annual rate of 2% over the next five years.

In terms of incremental growth for the product mix from 2009 through 2030, the growth trend for middle distillates will advance, and diesel will represent 59% of the incremental product mix.

For diversifying energy resources, India has taken the initiative for biofuels (ethanol and biodiesel) to be included in transportation fuels, having mandated 5vol% ethanol in gasoline since October 2007. In addition, the approved national policy on biofuels has an indicative target of 20% of gasoline and diesel to be replaced with biofuels by 2017. Currently, biodiesel is not available in India, even for 5% blending.

However, in near future, planting of jatropha in different states may provide feedstock for biodiesel production and provide a means to replace a significant volume of conventional diesel.

Transition to cleaner fuels To align with the regional efforts toward fuel quality improvement, India adopted a road map modeled after EU specifications, implemented its Bharat stage emission standards.

India has set two separate fuel quality specifications – one for nationwide implementation and the other for 13 selected cities. For gasoline, 150 ppm maximum sulfur content nationwide and 50 ppm for select cities was implemented in September 2010. Similarly, for diesel, India requires 350 ppm sulfur limit nationwide and 50 ppm for select cities.

Currently, about 17% of the total diesel and 27% of total gasoline consumption in the country is of BS-IV grades (50 ppm sulfur). Furthermore, the Ministry of Petroleum and Natural Gas plans to extend benefits of clean fuels and introduce BS-IV gasoline and diesel in 50 more cities by 2015.

Indian refining outlook India currently has 21 refineries within its borders –18 in the public sector and three in the private sector. With the emergence of the Reliance (one of the largest and most sophisticated refining complexes in the world) and Essar refineries, Indian refining capacity has increased substantially. In 2011, the country’s refining capacity grew to 3.9 million b/d, with public-sector refineries representing 64% and the private sector 36%.

For Indian refineries, downstream light oil processing capacity in India is low, consistent with the relatively low demand for gasoline. The conversion and hydroprocessing capacity is higher than most of the devel-

oping areas with a large share of this capacity coming from Reliance’s refineries.

The capacity utilization for Indian refineries was more than 100% during 2011, compared to the average capacity utilization of Source: Hart Energy, December 2011 78% for the Asia Pacific region. The surge in the refined 3.58 million b/d in 2011, while producproduct demand in Indian markets, estion (refinery plus field LPG producpecially for middle distillates, has contion) reached 4.29 million b/d with net sumed most of the surplus public sector product exports of 0.71 million b/d. refining capacity. Additionally, export refineries also have had sufficient marIt is important to mention that deket demand to maintain high utilization. spite a huge refining capacity surplus, With grassroots refineries at Bathinda the country presently imports refined (Punjab state), Paradip (Orissa state) products to meet domestic demand as and capacity expansion plans, Hart Enprivate-sector refineries export their ergy estimates that by 2015, India will products to international markets. add 1.34 million b/d of crude distillation capacity.

Hart Energy estimates by 2015, the aggregate demand of refined products for the domestic Indian market will reach India as an export hub 4.11 million b/d, an increase of 0.54 million b/d over 2011 demand. New refinAnalyzing the current pace of refinery eries and expansion plans will continue expansion and refined product demand at a greater rate, increasing India’s cain the near term, there will be excess pacity to 5.04 million b/d. The capacity capacity in India with a focus on cleansurplus in India will continue to widen er fuels. While new capacity additions in near term, making products available by public-sector refineries will cater for export. to the domestic market, private sector expansion plans will primarily target There is speculation that Indian reinternational markets. fineries may experience competitive pressures from the excess capacity of During 2010, India imported 0.29 milMiddle East refineries; however, the lion b/d of petroleum products, while strong domestic demand is expected the exports were almost three times this to provide an effective edge against volume, or 1.09 million b/d, primarily export fluctuations and help India to by private-sector refineries. Further, emerge as a global refining hub. demand for petroleum products was

Preeti Jain

Preeti Jain holds a Ph.D. in Chemistry from University of Kurukshetra, India and an MBA from the Asian Institute of Management (AIM), Philippines. A ‘Fulbright Alumna’ by US DoS for Environmental Leadership, Dr. Jain received various scholarships and recognitions including ICS Young Scientist Award, Distinguished Environmental Fellow by DRI Reno, US and Washington Sycip Graduate Business Scholarship, AIM. Dr. Jain has various publications on fuel quality and environment to her credit.

Currently with Singapore office of HART Energy she focuses on region’s refining capabilities, refined products market, supply/ demand, fuel quality regulations and alternative fuel trends. In current position she is one of the main contributors for ‘Global Middle Distillate/Fuel Oil Outlook (2010-2030)’ and ‘Global Crude Refining and Clean Transportation Fuels Outlook to 2030’.

Pjain@hartenergy.com

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JoP, January-March 2012

Alternative Energy

Shale Gas Potential in Cambay Basin: Gujarat Ratindra Nath Pandey GSPCL, Gandhinagar, Gujarat

Abstract “Cambay Basin is one the petroliferous basins of our country which has contributed to immense hydrocarbon resources for the nation. The discovery of oil in Lunej-1 located in Cambay Field was a landmark well after which the basin has consistently added to the hydrocarbon resources. Approximately 5700 wells have been drilled by various operators in this basin with extremely high success ratio. As per our strategy in GSPCL, we had kept Gas Shales as one of our targets and while drilling these conventional wells, attention was paid to this dimension also. This activity was done while carrying out our Minimum Work Program as per the Production Sharing Contract done with Government of India. Systematic increase in the gas content has been carefully analysed and it was also observed that C1 to C5 content became high as we entered the zones with higher TOC in Olpad or Cambay Formation. In this paper, an attempt has been made to showcase the potential of various zones located in Olpad and Cambay Formations which could form attractive targets for Gas Shales in Cambay Basin. The study carried out by us in this regard is presented in this article. Keeping the results of the analyses carried out by us and logistics of the area in mind, it is imperative that Cambay Shales have the potential to become a target for tapping hydrocarbons from them.”

Introduction All are aware of historical evolution of hydrocarbon industry though there are certain differences as far drilling of first oil well is concerned. Few documents have described the first well to be the well which was drilled by Edwin Drake in Pennsylvania however there are other documentations which tell about the first oil well to have been drilled at Baku. Few

maintain that Baku was the second well and the first one located in China.

With this background, it is important to understand the historical background of gas and with the available information an attempt towards understanding the same has been done in this article.

First commercial gas well was drilled in 1821 in Devonian Dunkirk shale in Chatauqua County, New York. Gas was used to light the town of Fredonia. Drake well at Oil Creek, Pennsylvania was drilled 35 years later. In this article, it has been tried to keep the focus on Shale Gas and hence the historical account of Oil would not be dealt with in so much detail.

A quote at this stage would be appropriate which is given as under; “To meet growing appetites around the world and address the need to shift to a healthier energy diet with the greatest leverage possible, we need to identify a fuel that is low-carb, plentiful, scalable, and affordable. As fate would have it, we are very fortunate that such a fuel is emerging and is already being added to our diet in greater proportion, especially in North America. Actually, it’s an old fuel, but we’re finding new ways to accessing and using it. We used to call it “nature’s gas”. --Tertzakian, 2009”.

It is important to highlight the role of an individual known as George Mitchell from USA who single handedly went after Gas Shales in USA despite being written off by so many oil and gas industry professionals. He spent his own funds to monetize this play type and it is understood that his efforts are acknowledged by all in USA.

Golden Jubilee In Gujarat State Petroleum Corporation Limited (GSPCL), we started our efforts for understanding the CBM potential in Cambay Basin, in the year 2003. In the year 2004, we conceptualized the Gas Shale potential of Cambay Basin and while we worked on CBM, it came naturally to our mind that Cambay Shale is needed to be analysed.

In this article, the efforts put in by us in understanding the Gas Shale potential of Cambay Basin has been captured which would give a brief outline of Cambay Shale Gas potential in this

basin. The data acquired by us has been used for the purpose of this article.

Hydrocarbon exploration in Cambay Basin has been going on for last more than fifty five years. Keeping in line with the trend of exploratory activities wherein large features have been targeted, in Cambay Basin also, all operators carried out their exploratory and developmental activities accordingly. Eocene pay zones have been the targets of almost all the operators and many a times depending upon the geological setting of area, operators have

developed Oligocene and Miocene pay zones also. We at Gujarat State Petroleum Corporation Limited (GSPCL) carried out exploratory efforts in not only the entire sedimentary column but we targeted the Basalts also. Ingoli Field has been producing oil from fractured basalts since 2004. Similarly, we have areas where the production has been taken from silt stones embedded in Cambay Shale Formation.

At this point of time, it is important to highlight that the geological setting of Ingoli Field had indicated that there is needed to be a source rock towards the west of this field and subsequently, it has been learnt that Olpad Formation has TOC in it which generated hydrocarbons and depending upon the geological setting of the basin, it can also form attractive target for harnessing hydrocarbons from Shales.

While carrying out exploratory efforts, it has been always at the back of our mind to test the potential of both upper and lower Cambay Shales and this dimension was reflected in our exploratory activities. It is well know that all components of hydrocarbon generation, migration and entrapment are present in this basin and keeping these aspects in mind, the planning was done to test the zones in Cambay Shales. In the year 2006, we tested few zones in wells located in Tarapur area and to our pleasant surprise, a two and half feet long gas flare was burnt for three days from a well in Tarapur area.

In this paper, the technical analysis carried out with the help of data obtained from wells which have been drilled for carrying out conventional exploration of hydrocarbons has been analysed and presented so that the potential of Cambay Shales as a reservoir for hydrocarbons can be understood in the right perspective. Since, we do not have much data with regard to Olpad Formation, the assessment of the same has been intentionally left out.

At this point of time, it is needed to mention that there are places in Cambay Basin where Tarapur Shales could have the needed TOC and the geological conditions to make it a target, however, due to lack data in a holistic manner, it has been decided not to cast any judgment

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JoP, January-March 2012

Seismic section passing through Well No. Tarapur - 1

Viramgam Formation is overlying Pre –Cambrian Basement and is underlying Deccan Trap at places. This formation is reported to be sand dominated sequence deposited in a fluviatile environment. Due to presence of many flows of Deccan Basalt, it has been difficult to image formations below Deccan Basalt.

Dhandhuka Formation is considered equivalent to Serau Formation in the north and is conformably overlying Viramgam Formation at places. This is dominantly arenaceous section deposited in a continental environment where it has been drilled.

on this aspect of Tarapur Shale.

It is important to mention here that we have been able to prove that not only Cambay Shales but the Olpad Formation is also containing sapropelic layers having potential of generation of hydrocarbons and could form targets for targeting hydrocarbons from these layers at suitable places in Cambay Basin.

Geology The Pre Cambrian Basement complex forms the basement for the overlying sedimentary sequences and is encountered in few wells in the basin. In Mehsana Ahmedabad area this constitutes Olivine Gabro as the main lithology whereas further south in Dhanduka-1, it becomes granitic in nature.

Vesicular basalt has also been observed in few wells. It is important that the lithostratigraphic terminology is broadly described so that it is understood in the perspective. Hence, a brief description is given below for the benefit of all. This is a generalized description and is intended as a manifestation of lithological variation in Cambay Basin.

Serau Formation is an extension of outcropping Bhuj Formation of Kutch and Wadhawan – Dhrangadhra sequence of Saurashtra. It is unconformably overlain by Deccan Trap and underlain by Pre-Cambrian granites. Lithological assemblage indicates continental, fluvial depositional environment. There are certain places in Cambay basin where this formation has been penetrated.

Seismic section passing through Well No. Tarapur - P

Songir Formation is underlain by PreCambrian Basement and is overlain by Deccan Basalt. This formation is corelatable with Himmatnagar sandstone in the north and Nimar sandstone in the southeast.

Deccan Trap unconformably overlies Pre-Cambrian Basement or Mesozoic formation. No specific evidence about the age of the group is available from the wells drilled. There are sixty six layers of Deccan Basalt which have been understood from the wells drilled so far however there could be many more layers which have not been penetrated and understood so far.

Olpad Formation overlies Deccan Trap but has gradational and inter-tonguing relationship with Older Cambay Shales. Depending upon the geological setting, this formation has varied characteristic which are in the form of fanglomerate, clay stones and weathered basalt. There are places in Cambay Basin where this formation is having Shale layers within it.

Cambay Formation has unconformable relationship with overlying Kalol Formation in the north and Ankaleshwar Formation in the south. It is dated as Paleocene to Lower Eocene age. The formation is sub divided into two members i.e. Older Cambay Shales and Younger Cambay Shales. In this paper, the technical details of Cambay Formation have been analysed with intent to target them for further exploratory efforts.

Kadi Formation is non marine tongue within Cambay Shales. This formation JoP, January-March 2012

21

Seismic section passing through Tarapur - G and 6

Tharad Formation in Sanchor Patan block and Ankaleshwar Formation in south Cambay Basin.

Dadhar Formation is underlain by Ankaleshwar Formation and overlain by Tarkeshwar / Babaguru Formations.

This formation is found to be of upper Oligocene to Lower Miocene age. This was deposited in a series of shallow, inland locked basins where the sediments were subjected to sub aerial exposure.

Babaguru Formation is extensive in Cambay Basin and has unconformable relationship with underlying Tarapur shale in north and Tarkeshwar Formation in south.

(Seismic section passing through Tarapur-6 and 6)

is restricted areally in Ahmedabad – Mehsana tectonic block. This formation overlies unconformably on the older Cambay Shale Formation.

Tharad Formation extends in the north Khari River in Sanchor Patan block. It has unconformable relationship with underlying Olpad or Cambay Shale Formations but is conformable with overlying Tarapur formation.

Kalol Formation is well developed towards North Cambay Basin and is restricted in areas north of Mahi River.

Ankaleshwar Formation is restricted in areas south of Mahi and it is homotaxial in North Cambay Basin is Kalol Formation. It is underlain unconformably

by Cambay Shale and conformable by Dadhar Formation.

Bhavnagar Formation is homotaxial with Ankaleshwar Formation of South Cambay Basin. It is characterized by lithic wacke mainly derived from trap.

Tarapur Formation shows conformable relationship with underlying Kalol Formation in Mehsana Ahmedabad block,

Seismic section passing through Tarapur - 6 and Kanawara - 2

Kand Formation is underlain conformably by Babaguru Formation and overlain by Jhagadia Formation. The formation is assigned a lower to middle Miocene age.

Jhagadia Formation is unconformably overlain by Gujarat Alluvium in area south of Narmada and by Broach Formation in north Cambay Basin. This formation has a conformable relationship with underlying Kand Formation.

Broach Formation is present throughout the Cambay Basin. The formation shows unconformable relationship with underlying Jhagadia Formation and overlying Jambusar Formation.

Jambusar Formation was deposited in shallow marine to fluviatile conditions during Pleistocene. The formation show conformable relationship with underlying Broach Formation and is having gradational contact with Gujarat Alluvium.

Gujarat Alluvium unconformably overlies Jhagadia Formation in area south Narmada and Mehsana- Sanchor- Patan area.

The generalized geological map of the Cambay Basin is given below. The purpose of presenting this map is to depict the surface geology of the area.

In this paper, the focus would be given to Cambay Shales and hence, these details are given so that the area of study is put in perspective.

(Seismic section through Tarapur-6 and Kanawara-2)

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JoP, January-March 2012

Seismic section through locations drilled in Tarapur area Estimation of Total Organic Carbon (TOC) The Total Organic Carbon contents are estimated from core sample in laboratory as well as from wireline logs.

Qunatifying the kerogen content, kerogen type and maturity, reservoir thickness, pore pressure and temperature.

Most conventional algorithms in wireline logs rely on either the density of sonic log to differentiate kerogen: thus, both require an accurat estimation of matrix properties.

which can be advantageous while carrying out the directional drilling through these zones.

(Seismic section through locations drilled in Tarapur area)

The tectonic setting of the areas of study has been given below wherein the interpreted seismic sections have been presented.

Tarapur-1 was the first well which was drilled by us in Tarapur tectonic block and the section given above, shows the position of the well where it has been drilled. This has penetrated through Deccan Basalt and the drilling efforts continued till unaltered basalt was encountered.

Tarapur-P was the second well which was drilled in Tarapur Tectonic block.

The location of the well is given above.

This well was also drilled to a depth till we found the unaltered basalt. In this well, the Olpad, Lower Cambay Shales and the conventional Eocene pay were tested. Upon testing, the Lower Cambay Shales did flow gas with two and half feet of flame for three days. This well was drilled in the year 2006. These wells were positioned on the basis of small sized 3D survey, which covered two adjacent blocks.

observed from the logs that the same zone is better developed in Tarapur-6 well. In Tarapur-4, the well flowed gas along with small quantity of oil which was obtained upon conventional testing. The details of test carried out in the well have been presented in this paper.

The seismic section given above shows the section through Tarapur-6 and Kanawara-2 wells. It can be seen that Upper Cambay Shales are not disturbed much seismically, in the area,

The amplitude shown in the section given below depict layers below Eocene Pay zones which are manifestation of seismicity of the area and it can be observed that there are many areas in Cambay Basin where such impedances can be seen and such impedance variations are quite helpful in analyzing details for well positioning. Well placement becomes easy with the help such rock physics data.

Estimation of TOC with the help of logs from wellsdrilled in Cambay Basin: All the data which has been obtained by the way of drilling of wells for conventional hydrocarbons, is used in

The detailed interpretation of the seismic section through Tarapur-G and Tarapur-6 wells, has been presented above. In the well Tarapur-6 also a zone in the Upper Cambay Shale was correlated with Tarapur-4 where the same zone was perforated and it has been JoP, January-March 2012

23

carrying out an estimation of Total Organic Carbon (TOC) in different parts of Cambay Basin. The methodology adopted has been presented below. It can be observed that using available logs, a good estimate of TOC has been carried out which clearly shows that TOC in these zones are ranging from 2% to 9.5% which is quite good as per international standards. It is also to be noted these estimates are byproduct of the conventional wells drilled for conventional traps. It is imperative from the above that once the wells are exclusively drilled for Gas Shales, the chances of percentage of TOC going up are quite high.

This methodology was used by Myers and Jenkins.

It can be observed from the perforated interval shown above that even though the zone was perforated primarily for oil, the zone did yield gas also during the testing period. This is also an indication that Cambay Shales do contain oil and gas which has the potential to become a target for production of gas.

A zone which was perforated in Tarapur-1 has been presented below. It can be observed that the zone below the perforated interval can be a good target for shale gas. The logs along with gas reading, shows the interval to be having organic carbon which could yield hydrocarbons.

Similar zones have been identified in wells which have been drilled by us in Cambay Basin. The example given below is an illustration of that.

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JoP, January-March 2012

Cambay Shale thickness and Two Way Time contour maps close to horizon near top of Cambay Shale are presented below.

All the data obtained from well logs along with evidences observed while drilling have been used for assessment of zones with potential in Cambay Formation. Keeping in mind certain Petrographic properties of TOC found in Cambay Shales, cross plots have been generated which are presented below.

These cross plots give clear indication about presence of interesting zones within Cambay Shale Formation.

JoP, January-March 2012

25

Inline through SA#1

Impedance inversion shown through well no.SA-1 depicting the thickness of Cambay Shales N Lavana-1

W

Antrol-1

Regional Correla on of Cambay Shale Forma on :: Cambay Basin Unawa-4 SE-4 GSAH-2 M1-A1 Tarapur-1

S TS-10

Correlation of Cambay Shale Formation Across Ankleswar Block

Ank-33

Ank-41s Ank-34

Ank-36

Ank-35

Ank-40s

Ank-39s Ank-21 Ank-21A1 Ank-38 Ank-8

Ank-37

Cross Line through SA#1

Ank-41s

Seismic section through SA-1 showing the tectonic set up for understanding the water disposal related issues in the area

E Ank-10

Ank-07

Ank-01

tivity data has been presented below. This method of estimation of TOC has been effectively used in the industry for a considerable period of time. The trend line shows the demarcation of higher and lower TOC content in the interval of 1660 to 1670 m interval.

The Photo Electric effect along with Resistivity data of the same interval has been presented below.

The clay typing of this interval has been estimated with the help of Potassium and Thorium cross plot and the same has been presented below. It is imperative from this plot that the clay type is Montmorillonite and mixed.

Vertical Scale-1:8000 Horizontal Scale- Not to the scale

S ha le G a s

4

Similarly the cross plots from well number M1-A1 located in Miroli area, are presented below.

The thickness map and the TWT contour map on a horizon close to Cambay Shales are presented below. The extensive nature of Cambay Shales is can be observed from these maps.

Cambay Shale Thickness Map Ankleshwar Block

Cambay Shale top TWT Map Ankleshwar Block

The density and resistivity cross plot of Miroli-1 well has been presented below and it is indicative that TOC content on both sides of the trend line presented shows higher and lower values.

Determination of TOC with the help of Sonic and Resis-

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JoP, January-March 2012

It has been observed that from conventional volumetric analysis data also the estimation of Shales with higher TOC can be carried out. This has been presented with the help of volumetric assessment done for PK-Dev-1 well located in Pisawada Kauka or Ingoli area.

Higher concentrations of Uranium content estimated with the help of logs is presented below. These indicate the Shales to be organic in nature.

Well: Ank-41s Block: CB-ONN-2003/2 Tectonic block: Narmada-Tap Basin: Cambay Barefoot sec on: 1752 to 2280m MD Discovered Gas Approximate rate: 15,000 to 20,000 m3/Day Gas Composi on: Methane =86.44% Ethane =8.28% Propane =1.75% i Butane =0.60% n Butane =0.36% i Pentane =0.13% N Pantane =0.09%.

Hexanes+ = 0.60% CO2 = 1.16% N2/Air =0.59% Sp. Gr. = 0.65 Net Calorific Value Kcal/M3 = 9131 Gross Calorific Value KCAL/M3 = 10096 Mol Wt. = 19.04

with well head pressure of 3000 psi in a vertical well. The well was drilled to 2388 m of depth and the portion below 1752 m was left open. The well remained closed for 5 months and 10 days and upon opening it has produced 15000 to 20000 CMPD of rich gas.

It is to be noted that since the barefoot section is yielding rich gas from Lower Cambay Shale / Olpad section, a systematic test could not be carried out due to influx of sediments from the interval.

The source rock analysis of conventional core taken from this zone has been carried out and is presented below.

Conclusions It is most important that the existing data with all the operators are analysed to the fullest extent so that use of technological advancements can be applied to this data set. It is also important that National Data Repository becomes functional at the earliest like all the progressive countries where data is available to anyone from any part of the world at no cost.

Well: Ank-41s

These correlations along with seismic data presented in this paper, clearly show that Cambay Basin has considerable thickness of Cambay Shales which merit to be considered for commercial production of hydrocarbons.

The Cambay Shale thickness and the TWT contour map close to top of Cambay Shale are presented below. It is evident from these maps that the thickness of Cambay Shales is more than 100 m and the depth is also within range for these Shales to be targeted as a reservoir from commercial point of view.

Site Selection, Water Security, Water Pollution and Land Subsidence- It is important to mention here that environment related issues are important and for taking a

holistic view, the sub surface data can be used so that all the above can be handled in a most scientific manner.

Two seismic sections have been presented below which show the subsurface picture and it is implied from such geological setting of an area, that water disposal in such areas should not pose a threat to the ground water level.

Technology: The limitations of technology in taking care of the environment

while carrying out the stimulation job is well known and we have initiated discussions of development of methodologies which can yield hydrocarbons and at the same time, environment related issues can also be taken care of.

We have already made an attempt in one of our wells in Ankaleshwar area wherein we have carried out bare foot testing of an interval within Cambay / Olpad section which has given gas at the rate of 20,000 Cubic Meters per day JoP, January-March 2012

27

Source Rock Analysis Summary: Well: Ank-41s

The fiscal regime is needed to be designed keeping all these analyses in mind so that policy guidelines are formulated on the basis of data. The experience obtained by the State of Texas and Canada can be used for designing such policies keeping the sub-surface and surface conditions of our country in mind. It is also important that open and transparent Gas price discovery mechanism is put in place, preferably before the award of such blocks so that this is process and data driven.

Well: Ank-41s

Acknowledgement The support extended by our Managing Director, Mr. Tapan Ray is thankfully acknowledged. We have been able to carry out this exercise with his support and encouragement only.

Entire team of GSPC who have contributed immensely in carrying out these operations in the field is thankfully acknowledged.

Drill cuttings, Side Wall Cores and Conventional cores are needed to be used for understanding the layer with maximum TOC which would be the target for the horizontal well. It is important that the depth domain model should be available for well place-

ment in a systematic manner.

The management of environment can also be done with systematic planning and the issue of water usage is being worked on by few service providers.

Necessary support extended by Mr. Ujjal Ghosh, DGM (Geosciences) along with Mr. Saurabh Datta Gupta, Assistant Manager (Geophysics.), Niral Patel, Assistant Manager (Geology), Subir Dutta, Assistant Manager (Geology), Koushalendra Singh, Senior Officer (Drilling) and Sikha Mondal, Assistant Manager (Geology) is also thankfully acknowledged.

Ratindra Nath Pandey

Ratindra Nath Pandey General Manager (R&D) - GSPCL B.Sc. (Hons.) (Physics Hons., Maths and Geology) in 1977.

M. Sc. In Exploration Geophysics from IIT, Kharagpur in 1980.

He has carried out field work in I.P., S.P., Resistivity, Gravity, Magnetic and Seismic survey methods. He has a total of more than 30 years of experience in exploration and development related aspects primarily in oil and gas industry. His primary competency is in the field of seismic data acquisition, processing and interpretation. Independent assessment of blocks have been carried out by him apart from modeling studies connected with basin modeling and prospect evaluation with an objective to position exploratory and development wells. As a professional, he has proposed more than 110 locations for exploration of hydrocarbons with almost 100% success ratio. He has been awarded two gold medals, one by Geological Survey of India for Tectonics of Mahanadi basin and second one by Association of Exploration Geophysicists for conceptualization and execution of poor man’s 3D in upper Assam area.

His contributions in blocks operated and not operated by GSPCL are invaluable. Currently, he is working as General Manager (R&D) in Gujarat State Petroleum Corporation Limited. He has been with GSPCL for more than seven years. He has designed a new work flow for selection of perforation interval in a new area with no well control which was used with success in one of the areas with high temperature and pressure environment. This methodology was shared with few international operators also.

Before he joined GSPCL, he was employed with Oil India Limited (OIL) and has contributed in almost all blocks operated by OIL till 2004.

He has carried out Basin Modeling work in Ganga Valley, Mahanadi, North East Coast, Bengal, Saurashtra, Andaman East and West Coast and Papua New Guinea Basins. He has independently assessed exploration blocks in Kazakhstan, Papua New Guinea, Nicaragua, Myanmar offshore, Mozambique, Gippsland, Alaska and Utah areas. He joined GSPCL as GM (Geosciences) in the year 2004 and has contributed in all the blocks operated and non operated by the Corporation. rnpandey@gsps.in

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Alternative Energy

Natural Gas Under Siege A White Paper Paul Ziff CEO, Ziff Energy Group, Calgary, Alberta

Preface The North American natural gas producing industry is ‘under siege’: the current price is far below the full cycle cost to replace gas that is produced and sold. The details of the predicament are described. With this paper, I want to start with some of my solutions first.

Solutions

I envision various solutions to this dilemma, based on my 4 decades of gas consulting experience.

Unconventional Gas Demand

Unconventional gas demand allows producers to upgrade their gas price to an oil price equivalent: 1. exporting gas as LNG to Asia can reduce the gas supply overhang, upgrading the overall gas price. Export capacity can be developed at existing LNG import facilities, such as Sabine Pass, Cheniere, and Lake Charles, Louisiana in the US, or at new ‘greenfield’ projects such as the KM LNG project on the west coast of Canada that Apache is championing with top independents Encana and EOG 2. additional new announced greenfield LNG exporting projects by world-wide major Shell, with support from leading Asia firms, along with other potential LNG Westcoast export projects 3. leaders such as Talisman, which is joint venturing with Sasol regarding the development of new business strategy of synthetic crude oil to take low cost natural gas and produce a premium-priced diesel fuel 4. implementing gas policies pertaining to gas for vehicles and trucks, especially commercial fleets in urban areas Other Demand Solutions

5. preference for gas use in power generation, in recognition of the much lower level of emissions than coal 6. considering expanding the Ethanol additive for vehicle fuel (natural gas is a key feedstock for making ethanol) Potential Supply Solutions

7. cost discipline by producers, not only to constrain current gas drilling until more of a supply/demand balance is achieved, rather to shut in gas production from gas fields that can be produced later. A minority of producers are

doing this, however, to a very modest extent 8. scheduling annual production maintenance during periods of low gas demand (and price).

Natural Gas Under Siege As Figure 1 shows, US natural gas prices at Henry Hub have descended to a low not observed since the 1990’s when the industry was awash in natural gas due to the ‘Gas Bubble’.

The picture is the same for Canadian gas prices.

Figure 1: Henry Hub Gas Price (15 years) US$/MMBtu

US$/MMBtu 16

16 13.93

13.11

12

12

8

8

4

4

0 Jan-98

Jan-00

Jan-02

Jan-04

Jan-06

Jan-08

Jan-10

Jan-12

0

Unfortunately, gas prices are so low that the cash costs for many wells (operating costs, royalties) exceed the gas price received, resulting in negative cash flow. On a ‘full cost’ basis, all producers are losing a ton of money. What does full cost mean?

Simply put, it is the price required to replace the gas produced.

As Figure 2 illustrates, the full cost includes Operating Costs; Royalties payable to the owner; the large capital cost to Find and Develop the reserve; Cost of Capital, which includes interest on corporate debt, and profit on the Investment; Corporate Income Taxes; and Corporate Overhead (staff & offices).

For producers selling natural gas at current low levels, each Mcf produced generates a financial loss; it’s equivalent to attaching $3 to each Mcf sold, and saying to the consumer ‘Here’s your special deep discount – please enjoy’. Given that the average proven gas reserve life is under a decade, if these economics continue for 1-2 more years, there will be a huge gap in the cash flow needed to replace current lowpriced production. Raising that revenue for reinvestment by taking on more debt, or issuing equity at depressed stock prices is not very attractive!

Figure 2: Sinking Gas Fortunes Operating Cost

360 rigs in the 2005/06 era and has plummeted since to an estimated 60 rigs in 2012. But these figures tend to understate the level of actual effective drilling, as a majority of wells are now drilled horizontally into the Shale and Tight Gas reservoir, and therefore yield more reserves and production than the prior vertical wells. Shale Gas has become economic in a hurry due to two technological advances --- horizontal drilling and massive hydraulic fracturing (which has become the topic of much public debate). Figure 3 provides the North America rig trend for the past decade illustrating the rise and the fall parallel to gas prices.

Cash Costs

Transportation Production Tax, Royalty

Full Cycle Cost $5.00e

F&D Cost

Unrecovered Costs

Overhead Return / Cost of Capital

Source: 2010 Ziff Energy North American Gas Basin Study

Why are prices low? For how long?

Gas prices are so low primarily due to the energy industry’s technical ingenuity and creativity of harvesting gas from Shale Gas (and Tight Gas) that as little as half a dozen years ago, was thought to be permanently trapped. From only 1 to 2 Bcf/d early in the last decade from the Barnett Shale near Dallas, Texas, North America Shale Gas will account for 35 Bcf/d of production (40%) of total North American supply by 2020 --- a truly stunning development. The full cycle cost of

Figure 4 shows the widespread Shale Gas basins across North America.

Currently, Shale Gas supply is coming largely from 6 US basins: Barnett, Eagleford, Fayetteville, Haynesville, Marcellus, and Woodford.

Figure 3: North American Gas Drilling Trend Western Canada Gas Rigs

U.S. Gas Rigs¹

Annual Average Gas Rig Count Horizontal Vertical

940

690 Peak

Increase

80% Drop from Peak

360

185

0

2002

2004

2006

2008

2010

2012e

1,000

550

Horizontal & Vertical not separated

2002

2004

2006

2008

2010

2009: Average Depth 4,300 ft, Gas Footage 22 Million ft

2009: Average Depth 6,400 ft, Gas Footage 130 Million ft

Source: Baker Hughes; Ziff Energy Estimates, EIA, Nickles

¹ Total Gas Rigs, onshore, & offshore

Shale Gas is often $1-2/Mcf below traditional conventional gas, due to the large resource accessed by each well. Further, there have been a number of large farmins or joint ventures by international companies, whereby they pay for a significant portion of future development thereby encouraging even more drilling than if drilling were driven solely by the operator’s own cash flow. Also, a number of producers in recent years were able to augment their revenue and cash flow through financial hedging (pre-selling gas volumes on the NYMEX futures market at a higher price) - this opportunity has now largely vanished, as the futures prices are much lower and closer to current gas prices than in prior years.

US rigs drilling for gas climbed to a high of 1,500 rigs in 2008, and have since been dropping rapidly. This will result in much less new gas supply coming on-stream in 2012 and 2013.

For Canadian gas, activity peaked at

30

1,500

1,490

1,000

500

Traditionally the shale rock was a source rock 37% for the gas; however, now Drop it is viewed as a reservoir, 38% adding hundreds of Tcf Drop in reserves. It is a ‘game changer’ for US energy supply (and potentially abroad as well). In Canada, the main shale basin, the Horn River, in northeast British Columbia is rich, yet remote. Its economics will depend on the linking of the gas supply growth with the ‘oil price equivalent’ higher prices from the proposed LNG export projects. Some US shales tend to be located further to the east and closer to markets than the traditional US gas supply basins; consequently, the new supply is causing major changes in the North American pipeline systems.

Annual Average Gas Rig Count

1,500

JoP, January-March 2012

2012e

500

0

The very low current gas prices, and the drop in futures prices for hedging, means that even much Shale Gas development is not economical today (except for gas in basins that contains natural gas liquids, which sell for a much higher price than the gas itself). Another emerging, though smaller contributing growth source of incremental gas supply is gas associated with the production of oil. With the dramatic increase in Bakken oil shale production, and other oil production, the amount of associated gas will increase.

Demand growth for natural gas could help the supply / demand balance recover, though gradually, not overnight.

Gas demand for power currently requires a whopping 22 Bcf/d (30% of our gas supply) and jumping to over 30 Bcf/d (35% of gas supply) by 2020.

In my view, gas will be the power generation source of the future. Further, should the US EPA (Environmental Protection Agency) environmental constraints apply to coal power generation plants, gas demand would increase further in the next decade. Our gas service team forecasts a 1.5%/yr increase in North American power generation in the next decade while gas usage for power generation will increase by 4.2%/yr. Figure 5 illustrates the growth of gas for power generation.

Processing and Pipelines: Fixed Costs Weigh Heavily Now

When the gas price received by the producer is low, the fixed cost components of processing and pipeline transportation ‘bite hard’. Most natural gas needs some processing, and ‘sour’ gas (gas containing sulphur) needs a lot! The gas processing plants are owned by gas producers, and ‘mid-stream’ specialist firms.

Typically, the cost of processing is a fixed amount, though can depend on many factors (age of the plant; % utilization, and the type of processes used), and if there’s any nearby competition. There is no ‘average’ processing cost; however, the cost to process non-shallow gas can range from $0.50 to $1.00+ per Mcf – or half of the current gas price!

Pipeline costs vary most by distance and by the newness of the pipe (newer pipelines tend to have a higher initial capital cost per mile of pipeline, and are less depreciated than older pipelines). Typically there is a rate for ‘firm’ contracted capacity and a lower rate for short term Figure 4: Shale Gas Basins Map Horn River Western Canada Duvernay Shallow Colorado

Utica

Gammon Mowry

Bakken

Baxter, Mancos McClure Monterey

Green River Gothic, Hovenweep, Cane Creek Lewis, Mancos

Pierre

Woodford

Bend Barnett/ Woodford

Haynesville

Barnett

Marcellus Huron Chattanooga

Fayetteville

Eagle Ford

Advanced Resources, SPE/Holditch Nov. 2002 Hill 1991, Cain, 1994 Hart Publishing, 2008

Ohio

Excello/Mulky

Pearsall

Source:

Utica

Antrim New Albany Niobrara

Floyd/ Conasauga/ Neal

Shale Gas Basins

Devonian/ Mississippian Shale Fairway Mountain Thrust Belt

Horton Bluff

Figure 5: Gas Demand for Power Generation TWh

Bcf/d

6,000

30

1.5%/year 5,000 1.6%/year 4,000

22%

28%

Natural Gas

25 20

11%

3,000

Coal

Coal

Down 0.2%/year

41%

47%

2,000

35%

15

10

Oil & Other

2%

0 1990

17%

2000

2010

13%

2015

21.2

15.5

10.6

0.8%/year

13% 2005

18%

Renewables 6%

4%

Hydroelectric 1995

0.8%/year

19%

Nuclear

20%

1,000

Bcf/d

4.2%/year

2020

5 0

Another group of in- Figure 7: Oil/Gas Price & Margin/Cash Flow Crude Oil Natural Gas dustrial users are the oil sands in Alberta, and steam tertiary projects in CaliforHuge Cash Flow! nia. Oil sands mining projects use natural gas for heating water to help wash the biNo Cash tumen (0.2 Mcf per Flow! barrel of oil sands production). Upgrading this bitumen typically requires an Figure 7 compares the producer netbacks additional 0.5 Mcf per barrel (including from crude oil, and from North American gas for electricity generation). The other natural gas. At a price of $100/barrel, oil type of oil sands extraction, for deposits netbacks are at all-time peak levels, over deeper than 250 ft. is ‘thermal recovery’: $60//barrel. At a price of $2/Mcf, gas SAGD (Steam Assisted Gravity Drainproduces virtually no net cash flow. age) is the most popular form --- it typically uses 0.8 to 1.5 Mcf per barrel of Virtually every producer of natural produced oil, considerably more intengas is hurting from the extremely low sive than oil sands mining, because gas is gas prices, and those operators that are used to generate steam to inject into the primarily gas producers, whether very tar sands formation, enabling the thick/ small or very large, are most impacted. viscous oil to flow to the surface. Another form of thermal (heat) recovery is CSS Production from the traditional gas ba--- Cyclic Steam Stimulation, used at Imsins generally has high cost gas; gas perial Oil’s major Cold Lake project, by with high processing costs is more imCNRL’s Primrose project, and in Bakerspacted, as is gas that is more remote field, California, which normally uses 2 from markets (western Canada, US to 3 Mcf per barrel.

Rockies). Producers that carry a debt burden on their balance sheets are most vulnerable --- most are trying to sell asWho are the losers? sets to reduce their debt level, as their Gas is not oil! Everyone talks about cash flow to support the interest cost the ‘oil and gas’ industry; however, has plummeted, while bankers are rethey are very different, especially their ducing loan authorization to reflect the current price and economics. Figure 6 lower reserve valuation. compares the oil (green) and gas (red) prices for the last 6 years. Currently gas The other big losers are the Royalty sells for less than 1/40th the value of owners – usually private sector in the crude oil, compared to a heat content US, and the major gas producing Provof 1/6. So the effective discount is over inces (Alberta) in Canada.

80%! When was the last time you were able to buy any basic essential for just 20 cents on the dollar? $/BOE (WTI)

150

G&A OpEx 100 Prod'n Taxes

‘interruptible’ capacity. Typical rates can be as low as $0.25/0.50 per Mcf in the south and central US, though much higher ($1.00 to $1.50/Mcf) on new pipelines from the US Rockies. A particularly challenging situation is the West/East toll for transporting gas from Alberta to Eastern Canada. With less total gas production in Canada, and increasing gas use by the Alberta oil sands, less gas is exported from Alberta. Due to the reduced throughput, the TransCanada toll has reached a high exceeding $1.50+/Mcf (this is subject to a current Canadian rate hearing).

Who are the winners?

One of the results of the low gas price is to stimulate industrial demand by ‘natural gas intensive process’ industries, such as ammonia and fertilizer. Many of these plants were priced out of the market during the period of high when gas prices exceeded $5.00/Mcf (during the late 1990’s/early 2000’s era) --- competing international manufacturers were able to source much cheaper gas supply, such as Egypt or Trinidad, where the gas sales price is linked to the fertilizer price, a revenue sharing approach. During the high North America gas price period, imports of urea and ammonia amounted to the equivalent of 1 Bcf/d of gas imports while LNG imports exceeded 3 Bcf/d.

The current low North American gas price, coupled with international industrials paying for gas at much higher prices, is leading to an industrial gas demand renaissance. Also, the traditional chemical users that use gas are benefitting.

Figure 6: Large Gas Discount or 'Meltdown' NYMEX Gas US$/MMBtu

100

Oil (Brent) 20 Oil (WTI)

2 Hurricanes

80 60 40 20 0

Gas Premium

Oil

Gas Discount

16 Large Gas Discount vs. Oil Price

Gas Yearly Average Gas to Oil Ratio 1:7 1:9 1:11 1:11

12

Very Large Gas Discount vs. Oil Price

2006 ‘Meltdown’

8

Gas 1:16

1:18

1:24

1:40

Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec M2008 ar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun 2005 2006 2007 2009 2010 2011 2012

4 0

$15

Royalty

$100

10

$80

$12 G&A OpEx $10 Prod'n Taxes

$8

$6

$50

50

0

120

15

Royalty $125

$35+

5

$4

$2

Margin/Cash Flow*

32.0

WTI Oil US$/Bbl 140

$/McfE (HH)

$150

Margin/Cash Flow*

0

Paul Ziff

Paul Ziff, CEO, founded Ziff Energy Group in 1982 and co-led the international expansion of Ziff Energy Group, which is now active in 36 countries. He conceptualized the theme of ‘World Asset Types’. Mr. Ziff has three decades of assessment experience for the oil and natural gas industry. A specialist on natural gas industry strategies and upstream corporate performance, Mr. Ziff conceived and directed a wide range of benchmarking studies and consulting projects in upstream corporate performance. Prior, he directed energy research for a major investment firm, gas pricing analysis for a key Alberta government agency, and energy lending analysis for a major bank. Mr. Ziff is an honors graduate of Harvard University, and attended the Université de Paris (Sorbonne) and the Institut d'Études Politiques. paul.ziff@ziffenergy.com (Printed with permission of Ziff Energy Group) JoP, January-March 2012

31

Alternative Energy

"Shale Gas - Status & Way Forward" Observations and Recommendation of Petrotech Vetrans Forum

In order to benefit from the vast pool of expertise available with the Veterans’ of Oil & Gas industry, Petrotech Society created a platform "Petrotech Vetrans Forum" for their meeting interacting discussing and providing their valuable suggestions and guidance on various issues and challenges before Indian Oil industry. The Petrotech Vetrans Forum, which has 28 members, meeting every quarter to deliberate on such issues. Here we reproduce the recommendtions of this forum following a detailed presentation and delibration on the topic of "Shale Gas- Status & way Forward".

This recommendation was sent to hon'ble minister/minister of state ministry of petroleum and natural gas and also to member planning commission for their information and perusal.

Recommentation on Shale Gas Exploitation in India India is currently importing about 80% of its oil requirements. This percentage is likely to go up to around 90% in the near future unless a substantial oil discovery is made.

Demand for oil and gas is increasing as is inevitable with our growing economy. Despite efforts under various rounds of NELP, the gap between supply and demand continues to widen as incremental production is not keeping pace with galloping growth in demand.

India has not yet succeeded in getting Natural Gas by pipeline from Iran, Bangladesh or Turkmenistan despite parleys for many years. Though lately an inter governmental agreement has been signed for Turkmenistan - Afghanistan - Pakistan - India pipeline (TAPI) in December 2010, its actual implementation is far off and one is not sure that it will become actually operational in the near future.

As per current estimates, India’s Natural Gas supply will fall short of its growing demand by about 50% in the next five years when its demand will go up from about 190 MMSCMD in 2010 to about 380 MMSCMD in 2015.

• In view of this, India has to expedite exploring all possible sources for production of oil and gas to ensure energy security in the years to come. In this context, exploration and production of Shale Gas in India is an absolute MUST. • India has already signed an MOU on Shale Gas with USA during the visit of Mr. Obama, President USA. This was possible due to serious initiatives of the MOPNG and it may be implemented on top priority. A high level Task-Force may be set up to pursue and ensure its speedy implementation.

• Government may expedite issue of Shale Gas Policy latest by June 2011. Cabinet Secretary may coordinate the formulation of this policy so that inter-ministerial hurdles, if any, can be quickly sorted out.

• Shale Gas today accounts for nearly 20% of the total natural gas production in USA and may reach 60% in not too distant a future. But then it did not happen overnight and needed almost 20 years of systematic work in the areas of data collection, R&D, experimental field pilots and development of materials, machineries and services, besides others. It is a fact that the huge shale gas reserves (both established, and more importantly the prognosticated) in USA and in many other countries will bring about drastic changes in the composition of the energy basket not only in the USA, but also in many countries world-wide with consequent economic and geo-political impacts.

• Though no systematic investigation has been made in India, thus far, preliminary estimates based mainly on the information available with the current operators, suggest that fairly thick shale sequences with high shale gas potential are extensively present in the oil, gas and coal bearing basins of the country.

Further work will surely identify the potentials in the 20 other virgin sedimentary basins of India that have not yet been explored. The preliminary estimates of in-place resources of shale gas in India are 2000 TCF, and it is expected that the figure will go up substantially in the future. Even with a conservative 10% recovery factor, the reserves work out to 200 TCF, which can deliver nearly 800 million standard cubic meters of shale gas per day for 20 years.

• India’s galloping increase in energy demand requires fast track build up of indigenous energy production capacity, and shale gas can take the role of the game changer in our country, like what it happened in USA. It is a great advantage for us that the existing oil, gas and coal operators in India not only have a very large array of information on the shale sequences in their area of operations, but also have most of the infrastructure in place and service facilities in hand to bring the shale gas to production on a fast track.

They are fully aware of the land acquisition procedures and have the experience of disposal of large volumes of effluent water generated in their oil/gas/coal production process. The oil and gas companies

are today very familiar with two specific technologies, horizontal drilling and hydraulic fracturing that are believed to have caused the shale gas reserves in USA to grow substantially in the recent years.

The only dispensations they need are attractive fiscal terms to attract investment (way better than NELP terms) and permission for simultaneous oil/gas/coal/CBM/shale gas operations.

• To initiate earnest exploration operations for shale gas in the 20 other sedimentary basins, far more attractive fiscal terms have to be quickly decided and the blocks may be offered to prospective operators through a bidding process. The necessary changes in the P&NG Rules and in the land acquisition/environmental regulations, keeping in mind the requirements of large number

of wells, use of huge volumes of ground water and disposal of produced water etc. have also to be made simultaneously.

• In summary, it is recommended that the Policy for Shale Gas Exploration must be made in two parts with the sole intention of expediting the process of shale gas production in the country, i.e. firstly, by providing an empowerment for simultaneous oil/gas/coal/ CBM/shale gas exploration and production to existing lease holders, supported by attractive fiscal terms for shale gas, and secondly, by framing still more attractive fiscal package for shale gas exploration in the 20 other sedimentary basins and offering the blocks through a bidding process.

Participants of 4th meeting of Petrotech Vetrans Forum L to R (front row) B.C. Bora, M.K. Bagai, J.S. Oberoi, A P Chaudhuri , Dr. A.N. Saksena, Dr.C.R. Prasad, R.S. Sharma, B.K. Bakshi, Anand Kumar, B.B. Sharma, B.D. Gupta, S.C. Mathur, Dr. J.L. Raina (back row) I.B. Gulati, Dr.R.P. Verma, Dr. A.K. Bhatnagar, Dr. Avinash Chandra, R.N. Pandey, R.N. Bhattacharya, Shyam Sunder

JoP, January-March 2012

33

Business Opportunity

US India Energy Partnership Emerging Trends and Business Prospects A.M.K.Sinha Director (P&BD), Indian Oil, sinhaamk@iocl.co.in

U.S.-India Economic, Political Trade Relations, Capital flow at a glance Economy & Political

• India and the US have multi faceted relations. The U.S.India partnership is based on shared values such as democracy and pluralism to mention a few. The influence of a relatively wealthy Indian-American community of some 2.7 million is widely recognized. More than 100,000 Indian students are attending American universities.

• India-US economic relations in the form of bilateral investments and trade constitute important elements in India-US relations particularly because India is one of the fastest growing economies in the world, one of the biggest markets (1.21 Billion population) whereas US is the world’s largest economy1.

Trade Relations

• Trade and commerce form a key component of the relationship between India and US. From modest $ 5.6 billion in 1990, the bilateral trade in has increased to $ 45 billion in 2010-11 shows an impressive growth in a span of 20 years.

• India’s total exports to the world are US $ 251 billion & import is US $ 370 billion in which US is an important trade partner for India. US today is the 2nd largest export partner and 5th largest import partner for India2.

Capital Flow

• US is a major investing country in India in terms of FDI approvals, actual inflows, and portfolio investment. US investments cover almost every sector in India, which is open for private participants3 .

• US is the third largest source of foreign direct investments into India. The cumulative FDI inflows from the US from April 2000 to March 2011 amounted to about $ 9.44 billion constituting nearly 7.28 percent of the total FDI into India.4 2. U.S.-India G2G major initiatives in Energy sector

India-US relations have become increasingly broad-based5 covering cooperation in areas such as » » » » » »

Trade and Economy Defense and Security Education, Science and Technology Civil Nuclear Energy Space Technology and Applications Clean Energy, Environment, and Health.

• Civil Nuclear Energy6 The United States and India share three objectives in undertaking Civil Nuclear Cooperation initiative to » remove core differences that impeded strategic relationship for more than 30 years » support India’s economic growth and energy security in an environmentally sound way » Strengthen the global nonproliferation regime.

The agreement for peaceful nuclear cooperation will now permit American and Indian companies to partner together in ways that will foster growth in India’s civil nuclear sector, create a clean energy source which will benefit the environment, and will offer India greater energy security with stable sources of energy for its large and growing economy.

• Clean Energy, Environment and Health: An Agreement for Cooperation on Joint Clean Energy Research and Development Center (JCERDC)7 will help development of critical technologies for renewable energy, energy efficiency, clean coal, including carbon capture and storage, and other areas of clean energy. The United States and India have moved ahead with the creation of the Partnership to Advance Clean Energy (PACE). Both the United States and India have committed $100 million over five years for PACE. • The Overseas Private Investment Corporation (OPIC)8 helps U.S. businesses invest overseas and is a key actor in driving foreign U.S. investment in clean energy. The OPIC is contributing $100 million to the Global Environ-

mental Fund’s $400 million South Asia Clean Energy Fund, 80-90 percent of which is expected to be directed toward investments in India over a five-year period, including projects such as solar photovoltaic projects, battery innovation, and green buildings

Major challenges in India’s Oil and Gas sector • Today, the country is facing formidable challenges in providing adequate and efficient supply of energy at affordable price to the growing economy.

• The role of hydrocarbon sector in fuelling the growth of the Indian economy has considerably enlarged in the last few decades. The share of oil in the Indian energy mix is about 30% whereas gas accounts for about 11% of the total energy mix. Total share of Oil & Gas is about 41 % of the total energy mix which is second highest after the Coal (52%).

• India is not well endowed with oil & gas reserves. Moreover, a large percentage of its available reserves still remain unexploited. India9 accounts for 0.7% of the world proven oil reserves and 0.8 % of gas reserves of the world.

• Considering above, the major thrust areas for Oil and Gas sector in coming years will be as follows: » E&P: Enhancing domestic production through New Exploration & Licensing Policy (NELP) and through improved/enhanced oil recovery, acquiring equity oil abroad. » Refinery: The refining sector in the country today is exposed to new issues: surplus capacities, competitive refining margins, stringent product specifications, greater emphasis on cleaner fuels, alternative energy sources, convergence of refinery and petrochemicals operations to minimize processing costs and optimization of product distribution. » Natural Gas: The demand of natural gas has sharply increased in the last two decades at the global level. In India too, the natural gas sector has gained importance, particularly over the last decade. The increase in demand

is being met through imports (LNG) to supplement domestic production. However, this consequent increase in gas consumption will need support not only from a well designed gas sourcing strategy but also from • a robust transportation and storage infrastructure in the form of pipelines transmission and distribution, the associated infrastructure (compressors, separators, etc.)

• R-LNG terminals. » Alternative Fuels: Another thrust area has been development of alternative fuels such as Coal Bed Methane, Gas Hydrates, Coal Liquefaction, & Shale gas. In next 5-10 years shale gas & in next 10 – 20 years gas hydrates may help India in reducing its dependence on imports to a great extent. Going forward, Govt. Oil companies see considerable opportunities in Renewable Energy. As a result Indian Oil companies have forayed into Solar, Wind, Bio-fuel & Nuclear Power and have ambitious plans to move ahead in this area. » R&D: In order to meet the ever rising targets, collaborative research with a global partnership needs to be fostered for creation of knowledge bank on emerging processes as well as successful implementation of developed technologies for sustainability in new economic scenario within the country. Focus areas in the coming years will be • Sustainable mobility: Stretching the crude barrel to the maximum, and fuels conservation/ efficiency improvement • Unconventional oil & gas: Bitumen/heavy oil upgrading, coke/coal gasification, coal/ gas/biomass to liquid fuels • Refining in carbon constrained world: CO2 emission reduction, CO2 processing, carbon capture/sequestering, bio-refining • India centric innovation: Upgrade refinery performance, diversify domestic fuel portfolio » Climate change: will be major challenge as well as opportunity for the companies in energy business. In this context, emphasis

is on additional investments in energy efficiency, demand side management, quality upgradation, development of bio-fuels/ alternate fuels and R&D.

Cooperation in specific areas for mutual benefits • Shale gas : Considered to be an unconventional gas, the presence of shale gas has been known for a long time but its economics of production were always questionable. Advances in shale gas technology have made it economics favourable for production. United States has pioneered the shale technology by which shale gas has become an increasingly more important source of natural gas in the United States over the past decade.

The breakthrough in technologies has led to a huge increase in natural gas reserves. India has huge shale deposits across the Gangetic plain, Assam, Gujarat, Rajasthan, and many coastal areas, but the shale production technology is a challenge for India. This will be an opportunity for both Indian & US companies.10 • New Exploration Licensing Policy (NELP): Provides an international class fiscal and contract framework for exploration and production of hydrocarbons. It provides a level playing field to the private investors by giving the same fiscal and contract terms. Out of the total estimated sedimentary area of 3.14 lakh Sq. Kms., 47% has been awarded under NELP. The largest natural gas discovery in the country has been made in KG deepwater, where production commenced in April 2009. The natural gas production during August, 2011 from KG basin is about 45.02 Million Metric Standard Cubic Meter per day (MMSCMD)11. The actual investment made by E&P companies under NELP is of the order of US$ 15.88 billion.

NELP will be the way by which US companies can come forward & invest in India. This will provide entry through Strategic alliances in development of oil & gas discoveries.

Doing Business in India • India - with its consistent growth performance and abundant highly skilled manpower provides enormous opporJoP, January-March 2012

35

tunities for investments. India is the fourth largest economy in the world in terms of purchasing power parity.

• India provides a liberal, attractive, and investor friendly investment climate. » For petroleum & natural gas sector, allows 100% automatic route for exploration activities of oil and natural gas fields, infrastructure related to marketing of petroleum products and natural gas, marketing of natural gas and petroleum products, petroleum product/natural gas pipelines, LNG Re-gasification infrastructure and Petroleum refining in the private sector. » Under refining projects, FDI up to 49% in case of Public Sector Undertaking can be approved through Foreign Investment Promotion Board (FIPB) without involving any divestment of dilution of domestic equity in the existing PSUs, subject to Sectoral Policy and in case of Private Companies FDI up to 100% can be automatically approved subject to Sectoral Policy.

• Refining (Product Quality Up gradation, Process optimization, CCS, Bio-refining) • Develop/ deploy technologies that promote the clean and efficient use of energy, improving energy efficiency.

Reference • 1India’s GDP is $1.7 trillion & US is $ 14.6 trillion • 2A list of the top seven commodity items constituting more than 50% of EXIM trade basket is given in Annexure 1.

• 3Annual inward foreign direct investment (FDI) to India from all countries has significantly risen over a period of time. From $ 100 million in 1990-91 FDI increased significantly and touch $ 19 billion in 2010.

• 4During the financial year 2010-11 (from April 2010 to March 2011), the FDI inflows from US into India were $ 1.17 billion contributing 7% of the total FDI inflow during this period. The sectors attracting FDI from USA are: Fuels (Power & Oil Refinery), Telecommunications, Electrical Equipment, Food Processing Industries, and Service Sector (Financial & Non-Financial Services).

• 5The visit of Prime Minister Dr. Manmohan Singh to Washington from 2226 November, 2009 as the first State Guest of President Barack Obama reaffirmed the global strategic partnership between India and the United States. President Obama’s visit to India from 6-9 November 2010 imparted further momentum to bilateral cooperation and helped establish a

long-term framework for India-US global strategic partnership.

• 6On July 18, 2005, the U.S. and India announced the launch of the Conclusion Civil Nuclear Cooperation InitiaBusiness prospects US India Energy tive. Under the parameters of this Partnership initiative, India will commit all of its civilian nuclear facilities to IAEA • Exploration and Production (Parsafeguards. On August 1, 2008 the ticipation in NELP, Overseas Equity IAEA Board of Governors approved in Oil and Gas Assets) India’s safeguards agreement, paving • Alternative Sources(CBM, Gas the way for India’s consideration at Hydrate, Shale Gas, Transnational the Nuclear Suppliers Group.

Pipelines, Nuclear) • 7Agreement was signed in Novem• Renewable energy (Wind, Hydro, ber 2010 Solar, Bio-fuel) • 8An independent US Government agency Annexure-I • 9As per BP Statistical Review of the World Major Items of Export from India To US Major items of export from US to India Energy 2011 • 10MOU between DeCommodity $ Million (%) Commodity/Country $ Million (%) partment of State, USA 1 Drugs, Phrmcutes & Fine Chemls 2,392.60 (22.91) 1 Transport Equipments 2,116.00 (18.45) and Ministry of Petroleum & Natural Gas was 2 Manufactures of Metals 2,141.85 (22.73) 2 Machinery Except Elec. & Electronic 2,263.69 (9.49) signed on 06.10.2010 3 Gems & Jewellary 5,283.06 (14.33) 3 Organic Chemicals 721.19 (6.21) for the assessment of 4 Machinery and Instruments 1,611.12 (13.47) 4 Perls, Prcus, Semiprcs Stones 2,103.30 (6.08) Shale Gas Resources in India, imparting training 5 Transport Equipments 1,370.32 (7.50) 5 Electronic Goods 1,512.53 (5.69) to Indian Geo-Scientists 6 Other Commodities 764.33 (7.41) 6 Coal, Coke & Briquittes etc.

500.30 (5.11) and Engineers & assis7 Petroleum (Crude & Products) 944.52 (2.28) 7 Gold 1,070.71 (2.63) tance in formulation of Sub Total Export of 7 Commodity 14,507.80 {56.78} Subtotal Import of 7 Commodity 10,287.72 {51.31} Regulatory.

• 11XII plan document Total Export of Country 25,552.03 Total Import of Country 20,050.72 sinhaamk@iocl.co.in % Share of Country in India's Total Export

36

JoP, January-March 2012

10.17

% Share of country in India's total Import

5.42

Renewable Energy

Solar Energy Induced Water Splitting for Hydrogen Production Vibha R. Satsangi, Sahab Dass and Rohit Shrivastav Dayalbagh Educational Institute, Dayalbagh, Agra

Abstract: To improve the living standard of the world’s population and support economic growth, the production of renewable and non-polluting fuels by the direct conversion of solar energy into chemical energy remains a fascinating challenge for the scientific community in the 21st century.

Sunlight is a clean, renewable and abundant energy source, and its conversion to hydrogen has been considered an ideal way to counter the depleting fossil fuels and environmental problems associated with them. Of the many approaches to produce hydrogen from renewable sources, direct photoelectrolysis of water using solar energy is a promising method for producing hydrogen. This paper discusses the principles and detail of working of photoelectrochemical cell (PEC) for hydrogen production.

Introduction In the quest for new and renewable energy sources, Solar Hydrogen is the most attractive option. Photoelectrochemical (PEC) way holds a high promise in extracting hydrogen by direct splitting of water using solar energy. Photoelectrolysis of water is a process whereby the light, illuminating a semiconductor, is used to split water into hydrogen and oxygen. This one step process eliminates the need to generate electricity from solar energy and subsequently feeding into an electrolyser as is in the case of photovoltaic-electrolysis system. While cost of working photoelectrolysis is less than that of a corresponding photovoltaic/electrolysis system, it is still three-four times more expensive than hydrogen generated via steam reforming of natural gas.

PEC System The heart of PEC system (Figure 1), producing hydrogen, is undoubtedly the semiconductor electrode, which is responsible for absorption of solar radiations. Before going to PEC system, a brief insight into semiconductor junction would be

helpful. Semiconductors laced with impurities are called as P type or N type depending on which are the majority carriers.

N type has electrons as majority carriers and P type has holes (vacant covalent bond between Silicon atoms and the trivalent impurity). The PN semiconductor junction is basically the middle region of the semiconductor which is devoid of free carriers, ie., where the majority carriers are depleted; hence it is called as depletion region. Under the impact of external electric field, this depletion region decreases and conduction takes place. When the PN junction is illuminated by a light source, additional hole-electron pairs are generated.

In PEC cell under illumination, the semiconductor absorbs the light of photon energy, hυ, (where h-planck’s constant &υ is frequency of incident light). If υh > band gap (Eg) of semiconductor, it results in the generation of electron-hole pairs. Due to the existence of electric field, the electron hole pairs existing in the depletion layer get separated and participate in redox processes at the semiconductor – electrolyte interface resulting in the evolution of H2 and O2 at cathode and anode, respectively, by splitting of water. The complete cycle of flow of electrons and the resulting redox processes occurring in a typical PEC cell has been depicted in Figure 2 The splitting of water into H2 and O2 is an endothermic reaction and requires energy of 1.23 eV. Thus, band gap of semiconductor necessary for photoelectrolysis of water should be 1.23 eV. But, factors like overpotential, loss of electrons etc. makes the semiconductor with a larger band gap (1.8 to 2.2 eV) more suitable. However, semiconductors with band gap > 2.5 eV are not desirable because they will not be able to absorb much of the radiations falling in the visible portion of the solar spectrum. It is important to note that much of the energy falling from the sun on earth lies in the visible region. Apart from the selection of a suitable (i.e., appropriately doped) semiconductor of desired band gap, its energetic (band edge energies) should match with energetic of H2 and O2 evolution reaction.

Figure 1

investigation for water electrolysis with the goal of developing photoelectrodes with optimal characteristics. Pure semiconductors are generally highly resistive at room temperature; impurity doping is largely intended to improve electrical conduction either by raising the number of charge carriers and/or by increasing the carrier mobility of the material.

Porosity

The semiconductor electrode/electrolyte interface is the site of electrochemical reactions responsible for PEC splitting of water. The overall surface area of such contact between electrodes in electrolyte depends upon the porosity of the semiconductor sample. Greater porosity is needed to raise the contact area, but, electrodes with very high porosity are highly resistive. The photocurrent of semiconductor electrode is determined by the porous structure and crystallinity and can be different for the same material depending on the method of preparation (e.g., the orientation of nanorods had an effect on the PEC properties)

Figure 1

Surface modification

Surface modifications can be beneficial in improving the PEC response.

Semiconductor Materials Metal oxide semiconductors and organic and polymer-based composites are possible candidates for photoelectrodes.

Among these, inorganic semiconductor oxides have attracted considerable interest since they satisfy several of the aforementioned requirements. Depending upon the size of the gap, a semiconductor can absorb light from any portion of the solar spectrum and one can manipulate the bandgap as well as other electrochemical properties by simply changing the particle size of the semiconductors by employing nanotechnology as a tool. This is size quantization effect and is observed in several inorganic semiconductor oxides.

It has been well established that all the materials have size dependent physico-chemical properties below a certain critical size. The critical size depends upon the details of the mate-

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rial viz., its composition and structure.

However, for most of the materials this critical size is below 100nm. Below this critical size, properties such as electrical, magnetic, dielectrical constant, elasticity etc. become size dependent. At such a small size even the shape of the material and interaction between nanoparticles decide the properties of material. This opens a huge possibility of tailor-making the material, which have different properties due to their size, shape and/or assembly. Future technologies based on nanotechnology are, thus, expected to play an important role in the field of energy and harnessing of alternative sources like solar energy.

Strategies To Enhance The Performance Of Photoelectrode Doping

The possibilities of controlling important parameters by impurity doping are under

a. Loading of Metal: Metal deposits on the surface of semiconductor acts as sink for photogenerated carriers and known to catalyze the production of hydrogen especially in large band gap semiconductors. It helps in reduction of electron-hole recombination, which forms an accumulation layer at metal-semiconductor interface and accelerates reduction of H+ to H2. b. Deposition of metal islands: Metal deposits on the surface of semiconductor can be a good tool to enhance photoresponse. In this context, instead of layering, Zn dots on the surface of hematite had been studied by the authors group and was found to exhibit much better PEC response as compared to doping or overlayering c. Swift heavy ion (SHI) irradiation: SHI irradiation plays a vital role in the field of modifications of the properties of films, foils and surface of bulk solids. It penetrates deep into the materials and produces a long and narrow disordered zone along its trajectory. Therefore SHI irradiation may cause wide variety of defects in the material. Hence, it can be exploit-

Figure 3: Zn – dotted islands on α – Fe2O3

ed as a method to reduce the band gap energies of high band gap semiconductors. Since, irradiation can lead to a controlled introduction of defect states in the material system, it has been and being beneficially used to control the material properties.

Layered Structures

A combination of small and large band gap material deposited one over the other may absorb full solar spectrum more efficiently. If energy band edges match at the junction better and efficient separation of electron-hole is possible. They also offer considerably high photocatalytic activity as photogenerated electrons and holes can readily reach the interlayer spaces of the reaction sites.

To get ideal PEC System, two approaches are available • Bottom Up Approach Find an efficient and stable PEC material system, with a cost-effective solar PEC process that can make use of the material • Top Down Approach Conceptual cost-effective solar PEC process is designed to see that can a PEC material

solar radiation.

IV. Developing catalytic systems which can efficiently dissociate water.

may meet the minimum requirements.

Current Status of Research in this Area A variety of metal oxides (single and mixed) have been examined as candidate in PEC water splitting. New materials based on photovoltaic devices have also been studied. Though these materials have shown considerable efficiencies in photovoltaic mode, they were found to be unsuitable for PEC applications on account of being unstable in the aqueous environment. There are also attempts to bring in new concepts like tandem cells, triple junctions, p-n combinations and specialty designs. The opportunities that are obviously available and being explored now include the following: I. Identifying and designing new semiconductor materials with considerable conversion efficiency and stability II. Constructing multilayer systems or using sensitizing dyes so as to increase absorption of solar radiation.

III.Formulating multi-junction systems or coupled systems so as to optimize and utilize the possible regions of

Despite all these attempts the desired level of efficiency has not been reached. So far, it has been suggested that a combination of photopotential - matched semiconductors, with effective water electrolysis catalysts like RuO2 and Pt(black), can form a photoelectrolysis cell which can sustain water splitting at 18.3% conversion efficiencies. It has also been suggested that alternate dual band gap systems may provide 30% solar photoelectrolysis conversion efficiency.

Challenges To be Met: Future Direction The key challenge to be taken in the field of PEC cell is to develop highly efficient, corrosion resistant photoelectrode material. To date no ideal water splitting photoelectrode material (exhibiting the optimum band gap of 2eV) being available, novel materials must be designed. The greatest requirement for fundamental research concerns doping for bandgap shifting and surface chemistry modification. Corrosion and photocorrosion is one another major problem which must be addressed with most of the currently available options for promising materials. Computational approach may be a tool that can give us the necessary insight into these materials and provide a narrow view to find the suitable material for PEC system such as DFT and Neural Calculations.

Prof. Vibha Rani Satsangi

Prof. Vibha Rani Satsangi, has been associated with the Department of Physics and Computer Science, Dayalbagh Educational Institute for the last 30 years where she is currently holding the position of Professor. Her research areas include Nanostructured Metal Oxides, Solar Energy and Condensed Matter Physics. At present she is actively engaged in research in the cutting edge area of solar induced hydrogen production, which involves synthesis and characterization of nanostructured metal oxides for its use as photoelectrode in photoelectrochemical (PEC) cell for generation of hydrogen. Her present research in the field “Solar Hydrogen and Nanotechnology” has resulted in approx. 50 research papers published in Journals of National and International reputes. She has also contributed a review chapter on “Alpha - Fe2O3 in PEC generation of Hydrogen” in the book entitled “Solar Hydrogen and Nanotechnology” published by John Wiley in January 2010. Her research has shown better possibility of using metal dots and heterostructures of metal oxides in PEC splitting of water. She has delivered several invited talks in National/International conferences and workshop, including SPIE conference on “Solar Hydrogen & Nanotechnology” at California, USA in 2007. She is widely travelled and has chaired number of sessions in International and National Conferences. She is reviewer of many National/International journals like Int. J. Hydrogen Energy, J. of Physical Chemistry etc. She is handling many research projects in the area funded from various Indian funding agencies. She is one of the investigators in the DST-NSF material world collaborative research project on “Transition metal oxide based Nanoarchitecture for Photoelectrochemical Hydrogen Generation” between University of Maryland College Park, USA and Dayalbagh Educational Institute, Dayalbagh, Agra India. vibhasatsangi@gmail.com JoP, January-March 2012

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Prof. Rohit Shrivastav Prof. Sahab Dass

Prof. Sahab Dass after completing his education from Dayalbagh institutions obtained Ph.D in Chemistry in 1985 from Agra University and received the ISCA Young Scientist Award in the same year. Prof. Dass was interviewed by BBC, London, during his visit to London during 1985. He joined the Dayalbagh Educational Institute (Deemed University) as Lecturer in the Dept. of Chemistry in the year 1986 where he is currently serving as Professor. Prof. Dass is committed to research in renewable energy and is presently involved in the production of hydrogen by solar energy induced splitting of water using nanostructured semiconductors using the photo-electrochemical route. He has completed a number of research projects funded by Dept. of Science and Technology, University Grants Commission, World Bank etc. worth Rs. 2 Crores and is presently the coordinator of prestigious DST-NSF (MWN) collaborative project with University of Maryland, USA on Solar Hydrogen Production. Prof. Dass has published about 90 papers in International and National journals, supervised 8 Ph.D students, and chaired sessions in National and International Conferences in India and abroad. Prof Dass has delivered invited talks in various countries viz, Canada, Germany, Singapore and USA. Prof Dass is also the Principal Investigator from DEI side in the seven institute ( IIT Chennai,Kanpur and Rajasthan, BARC, Mumbai and CECRI, Karaikudi) consortium mode DST project which aims at developing pilot plant for solar hydrogen generation with a capacity of 20 L/hour. drsahabdas@gmail.com

Prof. Rohit Shrivastav, a Physical Chemist, worked in the area of Reaction Dynamics to receive D.Phil. from University of Allahabad, in the year 1986. Currently working as Professor of Physical Chemistry in Dayalbagh Educational Institute (Deemed University), he offers courses on Thermodynamics, Quantum Chemistry, Statistical Mechanics, Chemical Applications of Group Theory, and Spectroscopy to under-graduate and postgraduate students. In a research carrier exceeding 26 years, he has worked on varied problems viz., Thermodynamic Analysis of Environmental Processes, Soil and Water Chemistry of Fluoride, and Environmental Chemistry of Toxic Metals.

In the last one decade he has been intensely active in the areas of Solar Hydrogen Generation, and use of Nano-materials for Photocatalytic/Photoelectrochemical Energy Conversion and Pollution Abatement. Having supervised successfully a score of Ph.D and M.Phil students, Prof. Shrivastav has been the Principal and CoInvestigator to many research projects funded by federal agencies, viz., Dept. of Science & Technology, Dept. of Atomic Energy, University Grants Commission, and All India Council of Science and Technology. He has published more than 70 research articles in International and National journals of repute and presented papers in several conferences both in India and abroad. rohitshrivastav_dei@yahoo.co.in

Dye-sensitised solar cells POSTED IN PRODUCTS - ENERGIE & CLEANTECH Dye-sensitised solar cells (DSSC) or Graetzel cells are considered a real alternative to the well-established silicon-based solar cells.

Utilising a synthetic dye as the key component they convert sunlight into electricity via a complex electrochemical process. Their working principle is closely related to photosynthesis.

Compared to silicon-based colar cells they offer the major advantage of staying functional even under diffuse light. They are transparent and can therefore be used as transluscent, power-generating building blocks.

To enable charge transfer within the solar cells, electrolytes are needed which have to fulfill a number of strict technical requirements, such us good electrochemical and thermal stability. From a very early stage, the development of the dye-sensitised solar cell was linked closely to the use of ionic liquids as the electrolyte, as their favourable properties made them the obvious materials of choice for this purpose. Over the last 15 years a huge number of systems composed of different dyes, electrolytes and addditives have been published in the scientific literature, some of them reaching efficiencies of more than 10%in the laboratory. The efficiency

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of dye-sensitised solar cells is strongly dependent on the interaction of the many different components and materials used and even with functional systems there is still room and need for further optimisation (More information).

IoLiTec is Europe's leading supplier of ionic liquids for the use in dye-sensitised solar cells.

The high purity and reliable quality standard of IoLiTec's products (IoLiLyte® quality) have earned the company its strong reputation and prime position as the preferred partner of many companies and research institutions working in the field. A high level of flexibility enables IoLiTec to react promptly and efficiently to its customers' needs. Functional prototypes of dye-sensitised solar cells incorporating IoLiTec materials have already been built. In collaboration with a number of top-class partners the commercialisation of the dye-sensitised solar cell in Germany is currently being driven forward by the ColorSol project which is funded by the Bundesministerium für Bildung, Forschung und Wissenschaft(BMBF). IoLiTec is entitled to use the registered trademark ColorSol® and the corresponding logo to promote and market its products and services. It is envisaged

to develop the dye-sensitised solar cell into a marketable product within the next two year.

IoLiTec has developed a number of ready-touse electrolytes for the use in dye-senstitised solar cells which will become commercially available in 2007 under the brand nameIoLiLyte®. As part of the research project NEMESIS, which is funded by theBundesministerium für Bildung, Forschung und Wissenschaft (BMBF) and coordinated by IoLiTec, the industrial production of high-purity ionic liquids is currently being organised. In a second followup project the resulting processes and methods will be tuned to be suitable for the large-scale production of solar cell electrolytes. Even today IoLiTec is in the position to provide multikilogram quantities of any selected electrolye for tests in pilot installations.

Further information on products from the dyesensitised solar cells range can be accessed by clicking on the corresponding link in the menu on the right.

More information can be obtained from info@ iolitec.deIf or http://www.iolitec.de/en/EnergieCleantech/dye-sensitised-solar-cells.html

Renewable Energy

Hydrogen Economy

A bridge to sustainable and clean energy Dr. Avanish K.Tiwari University of Petroleum & Energy Studies, Dehradun, (Uttrakhand), India

Fossil fuel supplies are dwindling and eventually depleting, but at the same time, energy consumption continues to increase at rapid rate particularly in heavily populated countries, such as India, which develop a greater demand for energy. Traditional fossil energy resources such as oil are ultimately limited and the growing gap between increasing demand and shrinking supply will, in the not too distant future, have to be met increasingly from alternative primary energy resources. We must strive to make these primary energy resources more sustainable to avoid the negative impacts of global climate changes, the growing risk of supply disruptions, price volatility and air pollution that are associated with today’s energy systems.

On the technology front, hydrogen, a clean energy carrier that can be produced from any primary energy source, and fuel cells which are very efficient energy conversion devices, are attracting the attention of public and private authorities. Hydrogen and fuel cells, by enabling the so-called hydrogen economy, hold great promise for meeting in a quite unique way, our concerns over security of supply and climate change.

Hydrogen is considered an alternative fuel due to the following reasons• Highly abundant in nature • Lightest element of all the elements known • Versatile, converts easily to other energy forms at the user end • High utilization efficiency • Environmentally compatible (zero- or low- emission)

Hydrogen Production Methods Hydrogen can be produced from a variety of process technologies, including chemical, biological, electrolytic, photolytic and thermo-chemical. These processes include fossil resources, such as natural gas and coal, as well as renewable resources, such as biomass and water with input from renewable energy sources (e.g. solar, wind, wave or hydro-power).

Hydrogen from Fossil Fuels Production from natural gas (Steam Reforming) - Steam reforming uses thermal energy to separate hydrogen from the carbon components in methane and methanol, and involves the reaction of these fuels with steam on catalytic surfaces. The reaction decomposes the fuel into hydrogen and carbon monoxide. Then "shift reaction" changes the carbon monoxide and water to carbon dioxide and hydrogen.

Production from coal - Hydrogen can be produced from coal through a variety of gasification processes. In practice, high-temperature entrained flow processes are favoured to maximise carbon conversion to gas.

From Splitting of Waterhydrogen Water electrolysis- Electrolysis separates the elements of water- H2 and O2-by charging water with an electrical current. Adding an electrolyte such as salt improves the conductivity of the water and increases the efficiency of the process.

The charge breaks the chemical bond between the hydrogen and oxygen & gathers at the cathode and the anode respectively.

Photo-electrolysis (photolysis) - Photo electrolysis of water is the process whereby light is used to split water directly into hydrogen and oxygen. Such systems offer great potential for cost reduction of electrolytic hydrogen.

Photo-biological production (bio photolysis) - Photo-biological production of hydrogen is based on two steps: photosynthesis and hydrogen production catalysed by hydrogenase in, for example, green algae and cyanobacteria.

Biomass to Hydrogen In biomass conversion processes, a hydrogen-containing gas is normally produced in a manner similar to the gasification of coal. However, no commercial plants exist to produce hydrogen from biomass. Currently, the pathways followed are steam gasification (direct or indirect), entrained flow gasification, and more advanced concepts such as gasification in supercritical water, application of thermochemical cycles, or the conversion of intermediates (e.g. ethanol, bio-oil or torrified wood).

Hydrogen from Splitting of Water Ministry of New and Renewable Energy (MNRE) has sanctioned the project titled “Establishment and Demonstration of Hydrogen Production and Utilization Facility through Photovoltaic-Electrolyzers system“to UPES in collaboration with IOCL R&D Centre, to be implemented at Solar Energy Centre (MNRE), Gwalpahari, Gurgaon, Haryana.

Solar energy is potentially the most abundant renewable energy resource available to us and hydrogen production from solar energy is considered to be the ultimate solution for sustainable energy. Among various methods, the only technique developed sufficiently for commercialization internationally, is that, electrical energy produced by solar PV panels is fed in to an electrolyzer to produce gaseous hy-

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drogen. Hydrogen produced through electrolysis, has a huge potential for developing country like India, where energy demands are exceeding the energy supply. This can also become a source of sustainable and clean energy in future.

Water-splitting solar panels have important advantages over existing technologies in terms of hydrogen production.

Right now, the primary way to make hydrogen is to separate it from natural gas, a process that generates carbon dioxide and undercuts the main motivation for moving to hydrogen fuel-cell vehicles: ending dependence on fossil fuels. The current alternative is electrolysis, which uses electricity to break water into hydrogen and oxygen, with the two gases forming at opposite electrodes. Although electrolysis is efficient method, it can be cleaner if the source of the electricity is wind, sun, or some other carbon-free source. But if the source of the electricity is the sun, it would be much more efficient to use solar energy to produce hydrogen. PV- electrolyser is one of the promising methods to produce hydrogen with zero pollution emission. Hydrogen production from a PV- electrolyser sys-

tem depends on the efficiency of the electrolyser and photovoltaic array, and sun irradiance at that site.

Since the feedstock for electrolysis is water, there are no harmful pollutants emitted during the use of the fuel. Furthermore, it has become evident that concentrator photovoltaic (CPV) systems have a number of unique attributes that could shortcut the development process, and increase the efficiency of hydrogen production to a point where economics will then drive the commercial development to mass scale.

Electrolyser uses direct current to separate hydrogen (H2) and oxygen (O2) from water without wasted emission out to the environment. Fuel cell is a device that can produce electricity from hydrogen and oxygen (water vapour and heat are the by-products of its processes). At present, fuel cell has been developed to use in transportation sector such as passenger car, bus, truck, and bicycle because it has higher efficiency than internal combustion engine (ICE) vehicle. Hydrogen as main fuel for fuel cell vehicle (FCV) can be produced from several renewable technologies such as

cell.html • http://www.asi.org/adb/02/09/he3intro.html • http://www.popularmechanics.com/ science/space/rockets/4330380, http://www.hydrogencarinfo.com/ hondahydrogencar.html • h t t p : / / e n . w i k i p e d i a . o rg / w i k i / File:Boeing_Fuel_Cell_Demonstrator_AB1.JPG • http://www.solarwarrior.com/gallery.html • www.alibaba.com • http://blogs.bournemouth.ac.uk/ research/2011/06/06/fuel-celland-hydrogen-call-for-proposalslaunched/ • http://en.wikipedia.org/wiki/Highpressure_electrolysis etc.

wind, solar, and nuclear energy.

Hydrogen generated from an electrolyser can be stored in storage devices, used instantly in stationary power supply, or fed to hydrogen-driven vehicle. Usually, hydrogen can be kept for several months for later use and the amount of energy can be increased by adding more tanks with minimum cost. At present, only hybrid electric vehicle (HEV) is available in the market. A few hydrogen-driven vehicles are under development because of the cost of fuel car and lacking of fuel infrastructure. Nevertheless this technology is gaining more attention because it is one of the promising technology for the future for zero emission. Typical hydrogen-driven vehicle keeps hydrogen onboard in hydrogen tanks. Driving distance of

This article has been supported by Ms Sonal Singh, Junior Research Fellow, CAER each vehicle depends on the amount of hydrogen onboard.

Sources/References National Seminar Non Conventional Energy Resources and its Utilization, Sultanpur, India, Feb.27-28, 2009, National Hydrogen Energy Road Map (Abridge Version) Govt..of India and Energy News, UPES • http://need-media.smugmug.com, http://www.iea.org/papers/2006/hydrogen.pdf • www.technologyreview.com/Energy/17887/page1/ • http://www.waset.org/journals/waset/v71/v71-118.pdf • http://www.daviddarling.info/ encyclopedia/A/AE_alkaline_fuel_

Dr. Avanish K.Tiwari, Senior Principal Scientist Center for Alternate Energy Research, University of Petroleum & Energy Studies, Dehradun, (Uttrakhand), INDIA aktiwari@upes.ac.in

IndianOil-R&D wins Hart Energy Award IndianOil and LyondellBasell, were announced as the winners of theRefining & Energy Company of the Year award. The two companies were recognised at Hart Energy’s World Refining & FUEL conference, “Unconventional Feedstocks & Fuels Mandates: Operating amid Change” held recently in San Diego. Dr. R.K. Malhotra, Director (R&D), accepted the award on behalf of IndianOil. The company won for its innovative refining catalyst technology.

The two companies were recognised for their corporate achievement in three primary categories- Cleaner Environment, Investment and Corporate Growth and Vision. Ms. E. Kristine Klavers, Senior VP, Hart Energy, said, “For 25 years, we have identified companies which have excelled in both global energy and refining. This year, IndianOil and LyondellBasell exemplify the traditions that are embodied in this prestigious award.”

JoP, January-March 2012

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Polymers & Petrochemicals

Innovations in Olefin Polymerization Catalysts: Driving Force behind Growth of Polyolefin Gurmeet Singh, G.S. Kapur and Shashikant Research Centre, Indian Oil Corporation Limited, Faridabad

Introduction In the present day context, polymers occupy a very important place in our day to day activities of life. It is unimaginable to think about our modern life style without polymers.

May it be packaging of milk or water or grocery, light and safe materials in cars and aircrafts, mobiles, medical devices or implants used in our body etc., polymers find their presence everywhere meeting the needs of our society. It is estimated that since 1950, globally there has been an annual average increase of 9% in production and consumption of polymers [1].

Polymer industry is having a large spectrum of products categorized mainly into thermosetting and thermoplastics.

In 2010 thermoplastics consumption stood at around 196 million MT with market for commodity polymers (LDPE, LLDPE, HDPE, PP and PVC). Polyolefin comprising of Figure1. World Plastic Production 1958-2008

polyethylene & polypropylene and their co- and ter-polymers takes up the 62% share of thermoplastics by volume [2]. Polyolefins remained dormant for the first three decades after their discovery. During sixties, world market share of polyolefin was about 20% of the total thermoplastic market while currently it’s exceeding more than 60% of the world polymer production. The global polyolefin market is changing dramatically in response to the quickly advancing industrialization process in emerging markets, as well as improvements in global communications and trade liberalization.

According to the CMAI analysis, increase in consumption will continue to be driven by novel applications where plastics can deliver cost advantages, performance enhancement or both.

In India, the demand of various polymers such as PE, PP, PS, PVC and PET was to the tune of 7.4 MMT which is about 3.8% of global consumption. PE and PP consumption in India is 3.7% and 4.7% of the global capacity respectively, despite being the second most populous country in the world. Per capita consumption of polymers in India is only 6 kg as compared to world average of 22 kg [3]. Morgan Stanley mentions that India and China will not only be driving the demand for polyolefins but also the recovery of global petrochemical industry. This will be in contrast to the past decades where developed countries were the driving forces. They estimate that India and China together will increase their consumption of polyethylene by 10.5 million tons, equivalent to the current US consumption. This is mainly due to the fact that at present India has just 5% of the peak US per capita consumption and China is at 30% and with economies of both the countries booming they are going to have dramatic effect globally [4].

Figure 2. Polyolefin Consumption per Capita

Figure 2 exhibits that the overall demand and consumption in advanced countries have already reached to saturation level and not much of growth in terms of market penetration is expected [5]. However, it is forecasted that over a period of 2011-2017, in terms of consumption of polyolefin, the market is being increasingly driven by demand originating in Asia Pacific, predominantly India and China, which will account for 40% of global demand.

Innovation as Growth Driver for Polyolefin The exponential growth of polyolefin is mainly due to their superior physical and chemical properties making them suitable for the diverse application. Further to it, low cost of raw material, easy recyclability and non-toxic nature of this material are some of the

factors that are driving their continuous growth. Following are the major characteristics of polyolefin which make them a material of choice for various applications: 1. Superior physico-chemical properties, that makes them suitable for diverse applications; 2. Polyolefins are absolutely non-toxic 3. Superior saving in energy costs, both at production and application levels with respect to other conventional materials; 4. The low cost easy accessible raw materials, which are available in abundance (oil, natural gas based); 5. The possibility of adopting low cost, highly versatile and non-polluting processes for their manufacture; 6. Easy recyclable material though polyolefins are not biodegradable 7. Resources saving products;

Figure 3. Polyolefin Catalysts and Polyolefin Products

8. Broad product portfolio; 9. Tailor made products.

Another very important factor responsible for this phenomenal growth of polyolefins is the exciting innovations in the field of Ziegler – Natta catalyst systems coupled with the advancement in the process technologies. These catalyst systems played a very vital role thereby providing the basis for the improved product quality, development of new range of products and streamlining of the process technologies (Figure 3).

The specific nature of the catalyst has an impact on molecular weight and its distribution, homo and co-polymerization kinetics, degree of stereo- regularity especially in the case of polypropylene. Other factors such as size and shape, porosity and surface area also play a vital role in regulating the morphology of the polyethylene and polypropylene homo and co-polymers.

Historical Background Polyethylene was first discovered in the laboratories of ICI in early 1930s at high pressure (up to 3000 bar) and high temperatures (up to 300°C) in an autoclave. It was soon recognized that the polymer obtained was a highly branched semi-crystalline material having density of 0.91g/cc, melting temperature of 115°C and hence named as Low Density PolyEthylene (LDPE). Its potential was recognized as an ideal electrical insulation material. The process was later on commercialized in 1939 and was known as high-pressure autoclave process.

Almost after two decades of the discovery of the high pressure process, in early 1950’s when Karl Ziegler, investigating his new triethylaluminumcatalyzed synthesis of higher olefins known as “Aufbau Reaction”, serendipitously discovered the “Nickel Effect”, which was caused by a colloidal nickel component.

While the reaction was aimed to get the oligomeric wax, the product obtained was found to be exclusively 1-butene.

The further investigations led to the conclusion that nickel catalyzed the displacement reaction (beta hydrogen elimination). Ziegler and co-workers then started carrying out the reaction of triethylaluminum (TEAL) with other JoP, January-March 2012

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Figure 4. Development of Polyethylene Catalyst: From Evolution to Revolution

transition metals and a breakthrough was made when zirconium acetylacetonate was found to catalyze the formation of high molecular weight polyethylene (PE) at low pressure.

This was followed by the discovery of polypropylene in the laboratory of Giulio Natta at Milan polytechnic that succeeded in isolating the crystalline polypropylene using titanium tetrachloride (TiCl4) and triethylaluminum (TEAL) catalyst. Natta designated this crystalline fraction as isotactic comprising of extended sequences of monomer units with the same configuration.

The amorphous or the random analogs were termed as atactic. At about same time as Natta’s discovery, Banks and Hogan (Phillips Petroleum Company) also discovered that ethylene can be polymerized using a chromium-onsilica catalyst.

Ziegler-Natta Catalyst Development The conventional Ziegler–Natta (ZN) catalyst systems, which mainly comprise of a transition metal compound (halide, alkoxide, alkyl or aryl derivatives) of Group IV-VIII transition metals and metal alkyl or alkyl halide of Group I-III base metals. Transition metal compounds of Group IV (e.g.

Titanium and Zirconium) and aluminum alkyls (AlEt3, Al-iBu3, AlEt2Cl etc.) have been preferred and most of the commercial catalysts are based on these compounds. It is now an estab-

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lished fact that by careful selecting the catalyst and co-catalyst combination, one is able to produce polymers with desired microstructure.

wide, are based on the heterogeneous catalyst systems since they provide a more economical route to manufacture polyolefin. The present day heterogeneous catalysts for polyolefin can further be subdivided into two main categories viz. un-supported and supported catalyst systems. The development of Ziegler-Natta catalysts can be summarized as: First Generation Catalyst: The classical unsupported ZN catalysts for olefin polymerization mainly consisted of TiCl4 and TiCl3 for ethylene and propylene polymerization respectively along with the suitable alkyl aluminum. The catalyst could be formed insitu or be separately made. In contrast to propylene polymerization where tacticity control dictates the use of diethyl aluminum halide (DEAC) as cocatalyst, in ethylene polymerization tri-alkyl aluminums are often preferred due the higher activity observed. How-

Figure 5. Classification of Ziegler-Natta Catalyst

These catalysts can be classified as homogeneous and heterogeneous.

ever, these unsupported conventional catalyst systems though experienced a great commercial success for the manufacture of polyolefin in solvent sus-

The homogeneous catalysts mainly find their application in the area of Development of Ziegler-Natta Catalysts Generation Catalyst System Mileage g ethylene polymerPP/g izations, however Catalyst remained dormant till the discovery of Un-supported Catalysts metallocenes.

In 1st δ TiCl30.33 AlCl3 1500 earlier days they + DEAC* were exploited for 2nd δ TiCl3+DEAC 4000 the academic purMgCl2 Supported Catalysts pose and used in different academic 3rd TiCl4 /ester/MgCl2+ 10000 institutions / laboAlR3 /ester ratories to study > 25000 4th TiCl4 /diester/MgCl2+ the polymerization AlR3 / dialkoxysilane mechanisms. Most > 40000 5th TiCl 4 /diether/MgCl 2 + of the commercial AlR3 /dialkoxysilane processes, which are operating world- *DEAC – Diethyl aluminum chloride

% Isotacticity

90 – 94 94 – 97

95 - 99 95 - 99 95 - 99

Figure 6. TiCl3.3.3AlCl3

not require the purification to remove the catalyst residues and APP from the bulk of polymer.

The key discovery and most significant advances in ZN catalyst chemistry was the understanding of the catalyst-polymer particle replication phenomenon.

It has now been established that the polymer morphology from the reactor will largely depend upon the size, shape and distribution of the catalyst particles. This formed the basis for the 4th generation ZN catalyst systems.

pension (the slurry process), suffered from a major drawback of showing low productivity and therefore required an additional step of polymer purification. More problems were encountered in case of propylene polymerization where due to poor stereo -specificity; the process was becoming more and more uneconomical which required an additional separation step to remove atactic polypropylene (APP) from isotactic polypropylene (iPP) [5].

Second Generation Catalyst: Continued research led to the development of catalyst systems with improved productivity and stereo-regularity of polypropylene made with TiCl3 / DEAC. The introduction of a third component in the catalyst system, an electron donor such as Lewis base, gave rise to second-generation catalyst system.

The donors mainly selected are esters, amines, or organophorous compounds and the catalyst system have high surface area. These second-generation catalyst systems provided three to five times higher stereo-specificity. This increase in activity, however, was still not sufficient to avoid the need for polymer purification and atactic polypropylene (APP) separation in case of polypropylene.

was soon recognized that magnesium dihalide (MgCl2) is the most suitable support to provide very active catalyst systems. The initial MgCl2 supported catalyst systems that were quite active for ethylene polymerization also polymerized propylene with high activity but were not stereo-specific.

To make supported catalyst systems more stereo-specific, a Lewis base (also known as electron donor) was used to modify the active sites of the catalyst systems. This allowed the development of very high activity catalyst with the production of very little atactic PP, yielding polyolefin that did

Fourth Generation (Morphologically controlled) Catalyst Systems: With the thorough understanding of the phenomenon of polymer particles replicating the catalyst particles, it was established that the physical and chemical structure of the support influences the number and type of active centers, the crystal dislocations and accessibility of the monomer during the polymerization. Consequently the selectivity of the polymerization-taking place at these active centers is also influenced. The scientific and technological impact of understanding of the catalyst – polymer growth mechanism led to the major achievement of a three dimensional architecture in the heterogeneous catalysts. Based on this concept, Basell (The then Himont) developed catalyst which yields granular polypropylene from the reactor and do not require any extrusion. The poly-

Figure 7.Coordination of MgCl2 with Internal Donor.

Third Generation (supported) Catalyst: The real breakthrough was achieved in ZN catalyst system with the innovation and development in the field of catalyst support system. It JoP, January-March 2012

47

Figure 8. Reactor Granule Technology – Affording Different Polymer Particle Morphology

were non-stereospecific producing only atactic polypropylene. The modified metallocenes containing stereorigid ligand systems were found to be particularly attractive for stereospecific olefin polymerization. Some of the important characteristics of metallocenes are as follows:

New developments in Polyolefin Catalysts mer obtained from the reactor can directly be converted in to end product after stabilization. This is known as “Reactor Granule Technology” (RGT) [7]. In this technology, the catalyst is designed to provide three dimensional architecture. In this technology the catalyst is having high porosity with large number of cracks evenly distributed throughout the catalyst surface.

However, it has enough mechanical strength to withstand the mechanical processing. Since the growing polymer chain replicates the catalyst particle, due to balancing of the mechanical strength and polymerization activity the final polymer takes the shape of the spheribead as shown below:

Next Generation Catalysts Breslow and Newburg and Natta et al. discovered the first homogeneous Ziegler-Natta catalyst independently in 1957. The catalyst, bis(cyclopentadienyl) titanium dichlo-

ride (Cp2TiCl2) activated with alkylaluminum chloride exhibited low polymerization activity for ethylene. It was found later that small amounts of water could increase the activity of the cataNext Generation Polyolefin Catalysts Group

Type of Catalyst

Copolymer: Carbon monoxide and olefin

Under Trial

BP Chemicals

Pd based

Copolymer :carbon monoxide and olefin

Under Trial

DuPont - Univ.

Ni & Pd based of North Carolina

1. Polyolefin with Novel branching.

2. Polymerization of olefins with Polar co-monomers.

Under Trial

BP Chemicals

Polyethylene

NA

Fe & Co based

lyst significantly. The reaction between water and aluminum alkyl was shown to produce alkylalumoxane. In 1980 Kaminsky and coworkers used oligomeric methylalumoxane (MAO) with group 4 metallocene compounds to obtain ethylene polymerization catalysts having extremely high activities [8].

However, these metallocene catalysts

Important Characteristics Very high activity towards homo, co and terpolymerization with very high turnover time

Molecular Weight and Molecular Weight Distribution

Produce very high molecular weight polymers with extremely narrow Molecular Weight Distribution

Molecular Weight Regulation

Very sensitive to hydrogen and only trace amount is required to control MWs

Stereo-specificity

Highly stereo-specific in nature

Co-monomer distribution

Co-monomer distribution is highly random and homogeneous

Incorporation of polar monomers

Can incorporate polar monomers

Structure of polymers

Provide polymers, which are highly linear to, branched one

Heat seal temperature

Polymers exhibit low heat seal temperature

Haze

Polymers with low haze

Hexane extractable

Low

Mechanical properties

High

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Status

Pd based

Activity / Yield

48

Special features

Shell Chemicals

Important Characteristics of Metallocene Catalysts Features

It is evident from the above discussions that olefin polymerization catalysts are mostly dominated by the early transition metal systems. Because of the electron-deficient nature of the

metal centers, such catalysts have been exploited since their discovery

by Ziegler and Natta. A team of scientist from DuPont and University of North Carolina announced the polymerization of ethylene using highly active catalysts based on Ni and Pd. On the other hand BP Chemicals found that some of the organo-metallic complexes of Fe and Co also polymerize ethylene with high activity. The catalyst prepared with 2,6-bis-(imino) pyridine ligands when activated with MAO for the polymerization of ethylene show exceptionally high activities comparable to the most active ZieglerNatta catalyst system. Similarly Ni(II) and Pd(II) systems having bulky diimine ligands polymerize ethylene to high molecular weight polymers.

Some of the recent developments of this field are summarized as below [912]:

Summary Polyolefins (PE, PP and their copolymers) have witnessed unprecedented growth in the last four decades. They have emerged from simple commodity plastic to specialized engineering

thermoplastic, reason being cheap availability of raw material and the developments in the field of Ziegler– Natta catalyst. The development of MgCl2 supported Ziegler–Natta catalyst with an internal Lewis base revolutionized the manufacturing of PP. The developments in catalysts also led to development of more economical manufacturing processes.

The understanding of particle growth mechanism on the catalyst has helped in making tailor made catalyst to provide PE/PP with appropriate morphology and molecular structure.

Catalyst developments also resulted in development of new cost effective manufacturing processes. New processes are less energy intensive

and therefore make the product more competitive in the market. Polyolefins being non-toxic, benign and recyclable, are preferred by the industry over other materials such as PVC and Styrene based polymers.

References 1. Plastics Europe Market Research (PEMRG) 2. CMAI Report “Global Plastics & Polymers” 3. Chemical & Petrochemical Manufacturers’ Association, India 4. Morgan Stanley 5. Nexant - Management and Technology Consulting Services 6. Lieberman, R.; Stewart, C. In En-

cyclopedia of Polymer Science and Technology; Mark, H. F., Ed.; Wiley: New York, 2004; Vol. 11, p 343.

7. P. Galli, G. Vecellio; Prog Polym Sci 2001, 26, 1287.

8. W. Kaminsky; Macromol Chem Phys 2008, 209, 459.

9. J. R. Severn, J. C. Chadwick, R. Duchateau, N. Friederichs; Chem Rev 2005, 105, 4073.

10. V. C. Gibson, S. K. Spitzmesser; Chem Rev 2003, 103, 283.

11. P. S. Chum, K. W. Swogger; Prog Polym Sci 2008, 33, 797.

12. L. K. Johnson, C. M. Killian, M. Brookhart; J Am Chem Soc 1995, 117, 6414

Dr G S Kapur Dr Gurmeet Singh

Dr. Gurmeet Singh is presently working as Sr. Research Officer, Petrochemicals and Polymers at the IndianOil R&D.

Dr. G.S. Kapur is presently working as Chief Research Manager, Petrochemicals and Polymers at the IndianOil R&D.

Gurmeet Singh holds M.Sc. and Ph.D. in Polymer Chemistry from Indian Institute of Technology, Delhi. He has more than 5 years of experience in the field of Polyolefins and Polyolefin catalysis. He has worked with Reliance Industries Limited.

He did his M. Tech. and Ph.D. from Indian Institute of Technology, Delhi in the area of synthesis and characterization of polymers. After that, he carried out postdoctoral work at Institute of Macromolecular Science, Prague and at the University of Leipzig, Germany.

He is a recipient of prestigious international fellowships like Alexander Von-Humboldt, Germany and UNESCO.

He has more than 20 publications in International Peer reviewed journals and 6 patents to his credit. He has interest in Polymers, Spectroscopy, Polyolefins, Polyolefin catalysis, Nanotechnology, DFT Modeling and Computational Chemistry. singhgurmeet@indianoil.in

He has 4 patents and more than 60 research papers to his credit, published in International peer reviewed Journals, and has presented more than 40 papers in various National/international conferences including keynote addresses in American Chemical Society conferences. kapurgs@indianoil.in

Dr Shashikant

Dr. Shashikant did his Masters in Organic Chemistry from Meerut University, Meerut and obtained his Ph.D. in Chemistry from Sardar Patel University, Vallabhvidyanagar (Anand). He is presently working as GM Petrochemicals at IOCL R&D Center.

Dr. Shashikant has over 34 years of experience in industrial Research and Development out of which 30 years experience is in the field of Ziegler-Natta Catalyst, Polyolefin manufacturing processes, Polyolefin Plant Troubleshooting, Development of niche grades of PE and PP, Post reactor modification of polyolefins and “Structure-PropertyPerformance relationship in polyolefins.

He has over 30 research papers to his credit and more than 80 internal management information technical reports and received IPCL management award for developing cost effective additive formulations for PE and PP grades. He co-authored three chapters in the books on various topics concerning Polyolefins. He is also a member of Board of Studies for Saurashtra University, Rajkot and a Ph.D. examiner for Sardar Patel University, Vallabhvidyanagar (Anand). shashikant@indianoil.in

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Asset Reliability

Duplex stainless steel for storage tanks Yatinder Pal Singh Suri Country Head, Outokumpu India Private Limited

Thanks to superior strength compared to standard stainless steels, Duplex allows you to reduce material weight – and cut costs! The Duplex grades of today offer high corrosion resistance,which means low maintenance costs and no need for coating. Furthermore, Duplex reduces the risk of cross contamination of tank content.

Why using Duplex stainless steels for storage tanks?

Duplex stainless steels combine many of the outstanding properties of ferritic and austenitic steels. Thanks to high levels of chromium and nitrogen, and frequently molybdenum, these steels offer good resistance to local and uniform corrosion.Low nickel content implies a stable price.Combined with its high strength, it is a cost efficient alternative to lower strength stainless and coated carbon steels. The Duplex microstructure also contributes to high resistance to stress corrosion cracking. For typical chemical composition and mechanical properties, see tables 1 and 2.

Characteristic properties • • • • • • • •

High strength Good corrosion resistance High resistance to stress corrosion cracking High erosion resistance Low thermal expansion High fatigue resistance Good weldability High energy absorption

Weight saving with Duplex stainless steel Here is an example of how the high strength of Duplex steels can be used to reduce the thickness of sheet and plate used in

the walls of storage tanks.

As there is less load stress at the upper end of the tank, material thickness can be reduced. In this case the minimum thickness permitted is 6 mm, see figure 1.

Figure 1

Benefits of using 2-meter wide and tailor made plate Outokumpu provides sheet and plate from coil, 2 meters wide, as well as tailor made plate up to 3.2 meters in width. This enables cost-effective designs where welding is kept to a minimum and assemblage is easy, see figure 2.

Figure 2

LDX 2101® (EN 1.4162, UNS S32101) is the latest addition to the Duplex stainless steel family. LDX 2101 is suitable for moderately corrosive environments and offers the same or better corrosion resistance than 4301. LDX 2101 has been used for tanks containing: ● palm oil ● wine,● marble slurry,● white liquor, ● potable & sewage water 2304

(EN 1.4362, UNS S32304) offers slightly better corrosion

Table 1

properties than LDX 2101 and can be compared to grades such as 4401 and 4404. 2304 has been used in tanks containing: • white liquor • marble slurry • pulp suspension

• hot water • pure acetic acid 2205

containing aggressive chemicals.

Emypro, Spain

(EN 1.4462, UNS S32205) was the first commercially successful Duplex and has been used for more than 20 years in storage tanks. The resistance of 2205 to pitting and crevice corrosion is superior that of LDX 2101 and 2304. This Duplex grade is ideal for storage of corrosive chemicals and can be compared to austenitic grades such as 904L. 2205 has been used in tanks containing:

Location: Tarragona, Spain Height: 25 meters Diameter: 22 meters Thickness: 6.5-12 mm Engineering: Emypro Owner: Terquimsa, Terminales Quimicos SA, Spain Content: Pure acetic acid Material: Duplex 2304 Plate width: 2 meters Completion: 2005

• phosphoric acid • pulp suspension • hot water

(Courtesy of Emypro)

SAF 2507® (EN 1.4410, UNS S32750) is a Superduplex grade with very high corrosion resistance and can be compared to high alloy 6 Mo austenitic grades such as 254 SMO. SAF 2507 has been used in process plants in the hydrometallurgy industry for tanks JoP, January-March 2012

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Sustainable Project Management

Greening Project Management Practices for Sustainable Construction Lauren Bradley Robichaud and Vittal S. Anantatmula Western Carolina University, USA

Abstract Environmentally sustainable building construction has experienced significant growth during the past 10 years. The public is becoming more aware of the benefits of green construction as prominent politicians, celebrities, documentarians, and journalists highlight the built environment’s impact on greenhouse gas emissions and natural resource consumption. Other factors, including higher energy prices, increased costs of building materials, and regulatory incentives, are also pushing the green building market to grow and expand. However, barriers to green building continue to exist, including the ability to deliver a green project within acceptable cost constraints. In order for project managers to deliver sustainable construction according to clients’ cost expectations, modifications must be made to traditional project management processes and practices. The objective of this paper is to suggest specific modifications to conventional building practices to optimize the delivery of cost-efficient green building projects. This paper presents an overview of research related to the costs and trends of green building and uses these research findings to make recommendations for greening project management practices for the construction industry. Our research results show that greening project management practices can add significant value to a sustainable construction project while delivering it within acceptable cost constraints. A detailed analysis using matrix present specific adjustments to traditional project management practices, with a premise that a green project improves its chances for financial success if a cross-discipline team is involved at the earliest stages and throughout the project.

Introduction Green building is in the early stages of making a paradigm shift in American culture, transforming from a temporary

trend to a mainstream way of life and doing business. From Al Gore’s movie An Inconvenient Truth to the nation’s awareness of increasing gas prices, environmental issues are becoming topics of discussion in communities across the country.

According to a survey published in 2007, one-third of Americans believe that global warming is the world’s most critical environmental problem, nearly double the amount of people who agreed with the same statement in 2006 Faiola and Shulman 2007. The shift in environmental awareness can be partially attributed to Generation X, the up-and-coming population of 20- and 30-somethings who are more willing to embrace sustainability as part of their social system Johnson 2007a,b. But the environmental tipping point does not end with America’s younger generation. It has also reached the corporate world, industries, and local governments. In April 2006, when New York City Mayor Michael Bloomberg unveiled PlaNYC, a comprehensive plan to reduce greenhouse gas emissions by 30% by 2030, he stated, “You can no longer deny the science and bury your head in the sand—climate change is real” Johnson 2007a,b.

As is evident from these discussions, the importance of environmental issues has gained momentum. As a consequence, research in the design and execution of construction projects has focused on how sustainable practices can reverse the impacts of global warming. According to the United Nations Environment Programme UNEP 2007, the construction industry has the greatest opportunity to affect environmental issues due to built environment’s major share in energy consumption and contribution to global warming. Research shows sustainable building practices can considerably reduce the built environment’s role in energy consumption. A survey of 99 green buildings in the United States showed they use an average of 30% less energy than conventional

Table 1. Definition of Green Building Term

Definition

Quoted source McLennan 2004, The Philosophy of Sustainable Design

Sustainable design

A design philosophy that seeks to maximize the quality of the built environment, while minimizing or eliminating negative impacts to the natural environment.

Green buildings

Buildings that are designed, constructed, and oper- U.S. Green Building Council ated to boost environmental, economic, health, and 2003, Building momentum productivity performance over conventional building.

Green buildings

The careful design, construction, operation, and reuse or removal of the built environment in an environmentally, energy-efficient, and sustainable manner; may be used interchangeably with high performance building, green construction, whole building design, sustainable building, and sustainable design.

McGraw-Hill Construction 2006, Green building smart market report

Green buildings

The practice of 1 increasing the efficiency with which buildings and their sites use energy, water, and materials and 2 reducing impacts on human health and the environment through better siting, design, construction, operation, maintenance, and removal—the complete building life cycle.

Cassidy 2003, quoting the Office of the Federal Environmental Executive White Paper on Sustainability

Green buildings

The process of building that incorporates environmental considerations into every phase of the homebuilding process. That means that during the design, construction, and operation of a home, energy and water efficiency, lot development, resource-efficient building design and materials, indoor environmental quality, homeowner maintenance, and the home’s overall impact on the environment are all taken into account.

National Association of Homebuilders 2006, Model green homebuilding guidelines

Sustainable construction

The goal of sustainable construction is to create and operate a healthy built environment based on resource efficiency and ecological design with an emphasis on seven core principles across the building’s life cycle: reducing resource consumption, reusing resources, using recyclable resources, protecting nature, eliminating toxics, applying life cycle costing, and focusing on quality.

Kibert 2005, quoting the Conseil International du Batiment CIB, Sustainable Construction: Green Building Delivery and Design

buildings The Economist 2004. Other case studies show that energy-efficient design can reduce a building’s energy consumption by as much as 50% The Economist 2004.

The growing awareness of sustainable construction’s potential to positively impact environmental issues is pushing green building to the forefront. As a result, more local governments are adopting green building standards and regulations or providing permitting and financial incentives for sustainable development. Research data show dramatic increases in the number of development projects seeking environmental certification, indicating that the demand for green construction is also on the rise U.S. Green Building Council 2006a,b.

Despite indications of significant growth, green development is not with-

out challenges and barriers, the most common of which is the cost premium associated with going green. Although research varies on sustainable building’s incremental costs with studies purporting a 0–10% green premium over comparable conventional projects, a survey of building industry professionals conducted by McGraw-Hill Construction 2006 indicates the perception of higher costs is the most commonly cited barrier to sustainable development. The bottom line is that sustainable strategies must also make financial sense for green projects to be viable.

The increasing demand for green construction, coupled with heightened perceptions of the risks associated with going green, mean that project managers will be responsible for managing tighter budgets with tighter profit margins on green projects. Based on those

trends, this paper argues that delivering a costeffective green building project requires adjustments to the conventional project management methodology.

The objective of this paper is to present the most significant adjustments to project management practices necessary for delivering a green construction project within acceptable budgetary parameters by taking into account the analysis of the risk of the cost of green facilities.

After presenting an overview of green building construction, we provide an extensive review of literature, case studies, and research to prove that cost is the most significant constraint when building green. We then analyze how modifying traditional project management practices can contain the risk of inflated costs associated with green building. These results are summarized in a matrix showing where in the project management life cycle adjustments must be made in order to deliver a successful green building project. Further, we highlight specific green management practices, with detailed information for implementation.

Literature Review Defining Green Building

A variety of terms are used to mean “green” in the construction industry, including green building, sustainable design, high performance building, whole building design, sustainable building, and integrated design. Theoretically, this collection of industry terms represents a movement taking place over the past 40 years to change the way we understand building architecture, design, construction, use, and decommission. As Kibert 2005 stated, “buildings are predominant artifacts of modern society . . . important cultural symbols” that impact vast populations based on their “design, materials, color, location, and function.” With the environmental progress of the 1970s and the green building movement of the 1990s, sustainable building practices can be characterized as a broad and farreaching cultural evolution of society’s relationship to the built environment.

There is no single, widely accepted definition for green building, but a survey of definitions reveals many comJoP, January-March 2012

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Table 2. Green PM Approach to Construction versus Conventional Construction Matrix Project process

Traditional construction

Green construction

Phase 1: Feasibility Project need assessment

Define need based on market conditions, physical needs, or other narrow scopes.

Need definition, in addition to market conditions, physical needs, etc., includes environmental goal, LEED certification level, as well as the amount of capital investment toward green initiatives.

Project manager selection

Select an in-house manager or hire one to serve as the project manager. Selection may or may not happen this early in the project.

Hire an experienced green building consultant/project manager who is familiar with the product type and market and has exposure to all phases of sustainable construction; a LEED accredited professional is optimal and strongly recommended.

Preliminary site analysis and plan

Develop a preliminary budget estimate based on past or benchmarked traditional projects; unit costs are applied to a preliminary scope of work.

Finalize economic and ecological goals based on cost/benefit analysis. Consider site characteristics and weigh building needs against ecological issues. The preliminary budget is aligned with the project’s unique goals, and is often accomplished by creating a cost model that aligns resources with program goals to ensure project priorities are not mismatched to resources Matthiessen and Morris 2004. A LEED checklist and documenting system is developed for the remaining portion of the feasibility stage.

Design charrette

Charrettes may or may not be implemented during a conventional project. They are often perceived as economic waste or schedule inhibitors.

Must include all key external stakeholders, including surrounding property owners and other community representatives. Diverse representation from the project team functions design, architecture, building contractor, environmental engineer, real estate consultant, etc. is optimal. The final report serves as one of the guiding documents for the design and construction process Kibert 2005.

Final site selection

Select site based on traditional proforma with little stakeholder involvement.

Select site based on stakeholder involvement including community input, At this point, the construction team is in place the owner, the project manager, the architect and the contractor, and all parties have a stake in site selection.

Phase 2: Design Initial budget and schedule

Budgets are typically developed by an architect based on a formula or unit costs, which can vary as much as 15% from actual costs. They are often created and expended with little consideration of future operating and maintenance costs Griffin 2005, unpublished.

Complete preconstruction estimates with input from the builder, project manager, architect, and real estate consultant. Estimating costs associated with specialized areas like green-building products require experience. The budget may also include an emphasis on life cycle costing, shifting focus from short-term return on investment ROI to long-term gains from operational savings.

Zoning approval

At this point in the project, this is often the first time regulatory agencies have seen design concepts or site plans. This can sometimes cause rework in the planning and feasibility stages if the concepts do not fit zoning ordinances or local land use goals.

The zoning approval process can often go more smoothly after an inclusive charrette process has been completed because the project will be less likely to face community resistance. The Charette process also encourages feedback from local government planners and other regulatory agencies in the early stages so that zoning considerations are factored into the site plan well in advance.

Design team selection

Select the architect or general contractor depending on the type of contract. All consultants report to the architect or general contractor.

Usually, the core design team has already been selected by this time. Additional experts for technical systems may be interviewed and selected.

Construction document

Although the design is finalized by this time, often green initiatives are considered, causing rework.

Because the integrated team has participated in the planning and design process, construction documents can be developed more efficiently and with little design modifications.

Government permitting review

Plans are often reviewed for the first time for engineering compliance grading, erosion control, and storm water standards, building codes, water and sewer systems, etc.

Government stakeholders are involved at earlier stages to ensure compliance with local, state and federal guidelines. The regulation of these important environment systems like wastewater and erosion control are significantly connected to LEED requirements.

Project bidding

“Hard bid” methods are most common, where the lowest bid cost is awarded and subcontracts are negotiated by the contractor on a closed-book basis.

Reed and Gordon 2000 recommend an “overhead/fee bid with an open-book subcontracting process” for green projects. Stipulations for minimum number of bids and cost savings allocations can also be included. “Open book” subcontracting allows the owner to have access to the estimates and pricing submitted by subcontractors.

Phase 3: Implementation Contracting

Traditional contracts like cost-plus-percentage or cost-plus-fixed fee are applied. Sometimes work is further divided into multiple contracts, depending on uncertainty surrounding the project Bockrath 2000. The less confident the builder feels about the project, the higher the fee or risk premium will be.

Integrated development requires a different kind of client/ architect and client/ contractor contract Reed and Gordon 2000. Contracts should include performance agreements, incentives, and bonuses for implementing sustainable practices and exceeding sustainability goals Pennsylvania State University 2004. Contracts should also include specific provisions for LEED points, Energy Star requirements, the use of recyclable materials, on-site recycling requirements, and agreements to return unused materials to vendors, among others.

Construction

Weekly site inspections are typically reported by architect or builder. There is little cross-communication among the site workforce, including subcontractors.

Launch construction with kickoff meeting that includes a sustainable education component for on-site construction personnel; monthly on-site meetings are required by entire site workforce and include periodic education and training sessions on green building. Sustainability requirements are reviewed with each subcontractor prior to commencing work Pennsylvania State University 2004.

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Inspections

Field changes caused by fragmentation in the owner-architect-builder relationship can require additional government inspections, which create cost and schedule inefficiencies.

At this point, government regulators are working as a partner in the project, as opposed to an outside influence. Less rework and field adjustments decrease the chances of having to request reinspections.

LEED certification

Typically not applicable. If the project is seeking certification, documentation can be difficult to assemble from multiple sources.

The ongoing efforts of the project manager, coupled with the benefits of an integrated team and specialized technology, can make compiling and submitting documentation more efficient for the project’s schedule and budget

Phase 4: Close out Occupancy and operations

Minimal testing is performed before the building is turned over for operations.

Building commissioning is an essential step in ensuring the building systems function as intended and set forth in the project criteria. The commissioning authority has been hired from the onset and understands the owner’s goals and investments.

mon threads. Table 1 presents an abbreviated comparison of green building definitions from a variety of sources.

Using the culmination of these resources, we define green building also referred to as sustainable design, sustainable construction, and other terms previously listed as a philosophy and associated project and construction management practices that seek to: 1 minimize or eliminate impacts on the environment, natural resources, and nonrenewable energy sources to promote the sustainability of the built environment; 2 enhance the health, wellbeing and productivity of occupants and whole communities; 3 cultivate economic development and financial returns for developers and whole communities; and 4 apply life cycle approaches to community planning and development.

Why Build Green?

The U.S. federal government and other third-party organizations, like the U.S. Green Building Council USGBC, have commissioned surveys, reports, and analyses to prove the environmental benefits of green building U.S. Green Building Council 2006a,b. Their studies show that the built environment has significant impacts on the consumption of natural resources, the generation of pollution and waste, and the productivity and health of people UNEP 2007.

Although this paper does not rely on the benefits of green construction as a basis for recommended project management life cycle adjustments, it is useful to understand the arguments supporting the expansion of green building.

According to the Department of Energy, there were more than 76 million residential and 5 million commercial buildings in 2002 in the U.S. U.S. Green Building Council 2003. The

built environment in the U.S. accounts for 30% of greenhouse gas emissions, 12% of potable water consumption, 70% of electricity consumption, and 39% of all energy use U.S. Green Building Council 2006. Worldwide, buildings consume 30–40% of all primary energy UNEP 2007.

Green buildings also have social impacts on the health and wellbeing of building occupants. Design features that promote sustainability have resulted in lower absenteeism and higher productivity rates among employees. A study conducted after Lockheed Martin completed a green engineering and design facility in Sunnyvale, California showed that absenteeism rates dropped by 15% in the new building U.S. Green Building Council 2003. Another California study of test scores from 21,000 students concluded that students in classrooms with more natural light scored 20% higher on math tests and 26% higher on reading tests than students in rooms with less natural light U.S. Green Building Council 2003.

In addition to environmental benefits, green building also offers significant opportunity for growth in construction management, product development, and information exchange. The green building industry is poised to experience considerable growth in the next 5 to 10 years. According to McGrawHill’s 2006 Green Building SmartMarket Report, green building is no longer an issue “du jour” but is more accurately characterized as a “quiet revolution.” It is one of the fastest growing market trends.

Membership in the USGBC is 10 times what is was 7 years ago, indicating a strong interest in sustainable construction, even from those who are not actively pursuing it in construction

projects U.S. Green Building Council 2006. In this year alone, the value of green building construction is projected to be more than $12 billion U.S. Green Building Council 2006. The National Association of Homebuilders 2006 projected that by the end of 2007 more than one-half of its membership will incorporate green practices into new home development. Estimates looking forward in the next three years indicate 5 to 10% of all new, nonresidential construction valued at up to $20.5 billion will implement green building practices McGraw-Hill Construction 2006.

Costs and Profitability It is important to explain the distinction between cost and profitability. Cost, in the context of constructions projects, refers to the efficiency with which the project team crafts the deliverable. On the other hand, profitability of the facility speaks to how well the business case of the project was drafted and how well the cost/ benefit of the deliverable was studied before commissioning the construction of the project deliverable.

While most of the mainstream attention on green building focuses on its positive environmental impacts, research shows a developer’s decision to go green remains rooted in its financial viability. A survey of more than 400,000 architects, engineers, and contractors conducted by McGraw-Hill Construction 2006 showed that the potential to reduce energy costs was selected by 54% of respondents as the top reason for building green. In this study, only 24% of respondents stated that green building’s value to the environment was the driving force behind their involvement in the industry.

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building, respondents chose higher initial costs as the greatest obstacle. The Davis Langdon study 2004 found that there are wide variations in costs associated with sustainable projects and conventional projects.

Although initial costs of green construction can be higher than conventional projects, it is widely held that longer-term cost savings in operations and maintenance can help recover those costs. Green buildings are expected to decrease operating costs between 8–9%, increase total building value by about 7.5% and increase occupancy rates by 3.5% U.S. Green Building Council 2006a,b. However, the benefits of operational savings can be less important to a speculative developer who has no long-term interest in operating or leasing a building. For this reason, it is important for project managers to develop strategies for containing costs during the initial phases of a project.

Effective Communication to Contain Costs A commonly noted challenge to containing costs in conventional construction projects is lack of effective communication among various technical experts who tend to use their own tools, protocol, and industry standards for making decisions and tracking information Sappe 2007. Architects, engineers, and builders tend to be highly specialized and deliver services in technical isolation. This “silo effect” makes it difficult to manage changes, mitigate risks, and contain costs with a holistic view of the project. It also inhibits the project from taking advantage of system optimization, which can save time and money Reed and Gordon 2000. These communication issues can be magnified when combined with the unique considerations associated with green technology and project accreditation.

Communication will be improved if all trades work together as opposed to the “silo” effect where subcontractors only concern themselves with their own scope and little to no collaboration and coordination with the other trades.

That lack of working together is a typical conventional construction issue as

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jobs are typically “hard bid” numbers and that is why most sub-contractors try to get in and out as soon as possible.

In order to bridge both the technology and communication gap that can occur with a green building project, the USGBC launched an accreditation program to train and certify professionals familiar with Leadership in Energy and Environmental Design LEED standards.

LEED is a third party certification program administered by the USGBC designed to set standards and mea sure the sustainability of building construction and operation. LEED focuses on performance in five key areas including sustainable site development, water savings, energy efficiency, materials selection, and indoor environmental quality. LEED accredited professionals, called “LEED APs,” must demonstrate a working knowledge of sustainable building practices and the requirements associated with LEED certification. Because the LEED AP has past LEED experience, he or she can guide sustainable building projects more efficiently and at a lower cost L. Griffin, “Articulating the business and ethical arguments for sustainable construction,” unpublished M.S. thesis, Univ. of Florida, Gainesville, Florida, 2005.

A LEED project will include more intense upfront planning for all parties to be successful. It would make sense on all projects but that is not reality. Furthermore, in this particular context, it contains costs effectively. This intense scrutiny may or may not have been the original intention to the LEED program but it has had that affect. LEED is not solely meant for better communication as much as better communication will be necessary due to all the detailed planning.

Incorporating a charrette at the beginning of a construction project is another solution to improving communication and exchanging ideas among a project’s stakeholder group. The National Charrette Institute NCI 2007 defined a charrette as “a collaborative planning process that harnesses the talents and energies of all interested parties to create and support a buildable Smart Growth plan.” Lennertz 2003 summarized NCI’s nine core strategies

that define the process 1. Working collaboratively; 2. Designing cross functionally; 3. Using design to achieve a shared vision and solutions; 4. Studying the details and the big picture; 5. Operating under constrained work schedules; 6. Communicating in short feedback loops; 7. Including a multiday charrette 4–7 days; 8. Working on-site; and 9. Producing a feasible plan.

Notwithstanding its relevance for managing teams in general, a charrette is uniquely effective in assisting in containing costs in a green construction project.

Literature Review Summary The research reviewed and analyzed for this paper shows that a number of factors have prompted a greater awareness of global warming and other environmental issues in the United States.

As environmental awareness has gained momentum, sustainable building practices have experienced significant growth. The green building trend is projected to continue during the next 10 years, as indicated by the dramatic increase in projects seeking LEED certification. Surveys of industry professionals indicate the single largest consideration for green building is the cost premium over conventional practices. Although the increased cost of green construction can be minimized or eliminated, doing so requires an enhanced level of communication across the project team, an inclusive design charrette process for project stakeholders and careful project planning early in the project life cycle.

Based on the study of references, specific adjustments for the team creation and subsequent construction management practices throughout the life of the project are described in Table 2. This table provides a comparison of conventional construction management approaches versus green approach to managing construction projects. The last column describes the justification for adjusting the process for green building.

Among the other things that were compared in Table 1, we discussed about selecting the project manager for a green project. LEED buildings are not constructed any differently but requires specified materials, designed with more natural resources with a greater attention to the use of the building. Furthermore, issues such as future maintenance, how long before any major renovation will be required, etc are considered. In writers’ experience, it would be very beneficial to have a project manager who is well rounded in all construction efforts with the additional knowledge of the LEED requirements.

Another contentious issue is about bidding. One may argue that it is not accurate to say that hard bid methods are mostly common for conventional construction. We argue that a lot more traditional nongreen generic buildings projects are hard bid and if not to the general contractor, it is certainly with the subcontractors. On most generic buildings any subcontractor will bid and attempt to perform the work.

Green projects would typically take a team built for green success. A team may be established with all trades that have LEED building experience. This is called “differentiation” from all other competitors. To be able to have a proven record in green construction or a niche elevates the level of contractors. Not everyone will be allowed to participate in a bidding or building situation.

From the Table 1, it can be observed that the construction approach of these two methods, although different, is also related to the difference in mindset. Early design, early planning, more detailed planning, collaboration, and coordination of subcontractors “cross functional” teams, holistic approach oppose to the Silo effect and knowing the other trade’s scope and why it is important to observe and understand the work of each other are some of the important differences. Furthermore, we argue that from a traditional construction and a green construction perspectives, it is not only the difference in project management but also how important project management is and what needs to done.

Analysis and Discussion Green building projects are inherently different from their conventional counterparts from a technical perspective.

They require the use of special materials and building practices to achieve sustainability. They can also require extensive documentation and reporting if environmental certification is a project goal. The unique characteristics of green construction require adjustments to traditional project management practices to minimize risks and improve the chances of delivering the project within acceptable costs. The majority of these adjustments reflect an increased need for cross-discipline coordination onsite selection, construction techniques and building systems and subsystems early in project life cycle.

Traditional construction management methodologies, which are often described as linear and fragmented processes, can cause rework later in the project, specifically in green construction projects. It is less expensive to address green issues early in the project life cycle than to work them in during project implementation. In fact, the timing of those decisions can significantly impact the rates of return on short-term construction costs and operating costs over the long term Fig. 1.

Adjustments made early in the project life cycle culminate in the creation of an integrated design and construction team that works together throughout the project to ensure that green building construction goals are met in every phase of the project.

Beginning with the End in Mind It is safe to say the most important steps toward achieving a sustainable building project within established cost constraints are performed during the project’s feasibility and design stages.

Conventional construction projects show that change orders for design or construction modifications create cost inefficiencies. By defining priorities for sustainable construction at the earliest project phase, all other phases of the project will be planned and positioned to accomplish those goals from the onset.

While it is ideal to assemble the entire

team early in the process manager, architect, and contractor, doing so is not always cost-effective. Instead, hiring a “generalist” with exposure to all areas of green development can have the same results at a fraction of the cost.

This is the first step in overcoming the silo effect in the construction industry, where professionals are splintered by functional areas Reed and Gordon 2000. However, the optimal arrangement is to have nominal contracts with a selected architect and builder for planning and design phase work.

In order to deliver a green project within acceptable financial parameters, the owner and project manager must set sustainability goals before design and construction are initiated. Setting sustainable priorities during the project feasibility phase will establish the framework in which all future project decisions are made, thereby reducing the chance that significant design modifications or change orders will be needed later in the process. Table 3 presents a list of key questions that can be used as decisionmaking guidelines for establishing project goals Kibert 2005.

Building green requires the owner to make decisions and set project goals prior to selecting a site and initiating design. The green project requires more upfront planning and decisionmaking than the traditional project.

This is essential, because early programming decisions impact the project’s implementation costs, particularly if an appropriate site is not acquired Bogenstätter 2000. The traditional unit cost approach does not provide enough flexibility to account for life cycle costing or assembling an integrated design team. Depending on the developer’s goals and the type of project, an integrated design team will include different combinations of professionals to accommodate the project’s specific skills and service needs Matthiessen and Morris 2004.

Integrating the Project Team Once the owner has established the project’s goals and priorities, it is time to begin putting together the project team. In conventional construction practices, a single point of contact reJoP, January-March 2012

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Fig. 1. Greening project management

sponsible for managing the project either an architect, real estate broker or other single-discipline technical expert is put in place after the project’s feasibility stage is complete and a site has been selected; the project’s remaining consultants are subsequently hired in chronological phases. This traditional hiring model delays the selection of key team members, such as the building contractor, until all planning and design phases are closed out. Subcontractors may never even meet other members of the project team, because they are incorporated later in the implementation phase. These common practices create impediments to delivering a green construction project on time and on budget.

The most significant challenge to delivering a financially successful green project is communication and coordination across a multidisciplinary team. Green building projects, particularly those seeking LEED certification, can be more complex than conventional projects, increasing the need for cross-team interaction and communication. Green buildings also require more interdisciplinary coordination, due to the interconnectedness of green systems design.

To ensure the delivery of sustainable targets, architects, builders, and engineers often have to work together

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during the project’s feasibility and programming stage to: 1 get a clear understanding of the project’s goals and 2 to implement the practices necessary to achieve those goals at all subsequent project phases Bogenstätter 2000. If design professionals and other members of the project team can be involved at the onset of the project, they have the ability to maximize sustainable practices at the most efficient cost.

For example, “sustainable sites” is one of the six key areas for LEED certification of new construction. Credits are awarded in the sustainable sites section for site selection, density, and community connectivity, minimizing the building’s footprint, maximizing open space, reducing light pollution, providing storm water management systems, and designing parking and building features to accommodate alternative forms of transportation U.S. Green Building Council 2006. Using traditional construction practices, the site is typically selected, analyzed, and laid out before any design professionals or the builder are brought into the project team. Because their involvement comes later in the process, they are precluded from including or enhancing most of the LEED sustainable site line items in the project. Alternative transportation opportunities,

community connectivity, the building’s orientation, and other site components are diminished by the time the architect and builder are hired Reed and Gordon 2000.

Therefore, how does an owner avoid the pitfalls of a splintered project team? The owner must commit to using an integrated approach that includes representatives from design and construction backgrounds much earlier in the project life cycle. Although this approach requires more people and upfront investment, the initial cost is made up in later savings through a decrease in the coordination necessary to follow up on problems, less design and field rework, and higher efficiency in building operations Reed and Gordon 2000.

A 2006 case study of Fossil Ridge High School, a Silver LEED-NC certified project, compared its costs of construction to other school projects in the region and concluded that the project achieved its LEED status at no additional cost U.S. Green Building Council 2006a,b. The Poudre School District attributed its success to two key elements: expanding the project team and involving stakeholders early in the process. The project team included teachers and school maintenance staff. The case study goes on to say that work-

Table 3. Questions for Setting Sustainable Development Goals Area

Question(s)

Justification

Environmental certification

Will the project seek LEED or other certification, and to what level? What is the cost/benefit of seeking certification? How will certification be used to market the project?

The degree to which certification is sought can dictate critical elements of the project, including site selection, design, costs, schedule, and documentation.

Design criteria

If the project is not seeking LEED certification, what design criteria will be used as requirements?

Establishing design criteria will help communicate the project’s goals and priorities to the project team in a measurable, technical form.

Personnel criteria

What level of green building experience will be required from the project team?

Since hiring decisions are made much earlier in green construction, personnel criteria must be established early and align with the project’s goals.

Initial investment capacity

Is the owner willing to make an upfront investment in sustainable construction that exceeds what would be required in a comparable conventional project? If so, to what level?

An integrated project team may require greater upfront investment; the owner’s willingness to make such investment will impact the timing and quality of hires. This may also apply to costs associated with initial feasibility studies, site work, and design.

Return on investment

Is the owner willing to accept a life cycle cost analysis including lower operational costs as the return on a higher front-end investment?

Terms for measuring ROI must be established before pro-forma are developed.

Unique or other environmental considerations

Are there climatic or other environmental issues unique to the project’s geographical location e.g., arid climates with watershort characteristics, unique storm water considerations, etc. that the project must address?

Environmental features unique to the region or a specific community should be defined and considered as part of the project’s priorities.

ing to achieve support for the project’s environmental goals from the onset minimized future delays and helped the project come in at no additional cost U.S. Green Building Council 2006a,b.

Even within the constraints of a limited school district budget, Fossil Ridge High School achieved its financial and environmental goals.

The first step in implementing the integrated project team is to select an experienced green building consultant/project manager during the project’s feasibility stage. A project manager who is familiar with the product type and market and has exposure to all phases of sustainable construction should be considered. If the project is seeking LEED certification, a LEED AP is strongly recommended. The green project manager can also assist with pricing and developing cost saving strategies in areas that are lower priorities.

As soon as the project manager is hired, the owner initiates the next step of creating an integrated team by interviewing architects, building contractors, commissioning authorities and any other key consultants who may be needed to address unique project considerations.

By initiating the project team earlier in the process, the team has more influence on some of the most significant and important project decisions: site selection, strategic planning, and preliminary design concepts. Without their early involvement, the architect and builder are at a disadvantage, particularly when it comes to integrating the owner’s goals into the project’s early design and preliminary budget and schedule estimates (Bogenstätter 2000).

Although the benefits of having an integrated team at the onset of the project may be great, it is not uncommon for a traditional owner or developer to perceive this practice as cost prohibitive.

However, an early relationship with a building contractor can be established for a nominal fee to cover planning and design services. In fact, many builders will participate in this phase of work at no additional cost, due to the promise of a forthcoming construction contract.

Even if a fee is required for the builder’s early involvement, the benefits of such an investment can outweigh the costs. For example, a builder can help with cost-effective materials selection, more accurate initial cost estimates, the design of indoor air quality systems, and other key decisions throughout the project.

If the owner is still unwilling or unable to establish the integrated team by securing the services of a contractor this early in the project, hiring a generalist project manager with exposure to all areas of green development can provide similar benefits at a lower of the cost. This would be a first step in overcoming the silo effect in the construction industry, where professionals are splintered by functional areas Reed and Gordon 2000.

Once the integrated project team is in place, the owner and the project manager are responsible for conducting planning and strategy meetings so that all team members have a clear understanding of the project’s goals.

These kickoff meetings will also lay the groundwork for establishing a collaborative team environment.

To that end, the project manager should lead a team process establish clear guidelines for communications and ground rules for teamwork. The project manager should also consider procuring specialized project management software designed for sustainable projects to enhance team communications and document sharing. If such software is used, team members may require initial training.

Just as members of the project team are incorporated into the project earlier in the life cycle, it is recommended that project stakeholders be included in the process during the feasibility and planning stages. Buildings, particularly green buildings, not only affect their immediate users but also impact a broad range of other people Kibert 2005. They impact the greater JoP, January-March 2012

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land use and building patterns of a neighborhood and community. Communicating with stakeholders early in the project life cycle assures that key groups understand and support the project’s green goals. Additionally, stakeholder input can help shape the project in its early stages to accommodate specific user, regulatory, or community needs. Stakeholder partnerships also foster buy-in, which is essential for a green building project that cannot afford to absorb changes or significant delays later in the process.

The project manager has a responsibility to maintain the stakeholder momentum and ownership after the charrette is complete. This means a green project may require a more detailed communications analysis and plan to keep stakeholders informed throughout the project. Tools like electronic newsletters, a publicly accessible project Website, regularly recurring stakeholder meetings, and the use of minicharrettes to help solve any future project issues can be effective in maintaining communications with broad stakeholder groups.

The project manager should cast the widest possible net when inviting stakeholders to the table. Although specific stakeholders will vary depending on the project, common external groups include building users, building operations and maintenance staff, local government and regulatory agencies, surrounding neighborhoods, nearby business owners, community leaders, and environmental agencies, among others. It is also essential to treat the project team and all consultants, subcontractors, and others expected to work on the site as part of the stakeholder group so that the team can work in true partnership, internally and externally.

Designing with the Whole Team Approach

The most effective way to gather input from a broad range of stakeholders is to incorporate a charrette at the beginning of the project. Charrettes, particularly those that follow the National Charrette Institute’s guidelines, have the ability to cultivate longterm support for a project, which can translate into a more cohesive project team, more engaged and supportive stakeholders and a more collaborative design and building approach. Successful charrettes often result in stakeholders feeling included and listened to, even if they do not agree with every aspect of the end product; they also bring team members together from various technical disciplines in a way that promotes synergy NCI 2007.

The cumulative impact of these benefits is a higher quality project that requires less rework and is less likely to encounter opposition later in the process.

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It is the project manager’s responsibility to maintain the momentum of the charrette and include the whole team in developing the project’s final design, cost estimates, and construction documents. After the charrette process is complete, the project team enters the design phase with a feasible plan upon which architectural drawings and other design documents can be based. At the same time, the project manager can begin formulating an initial project budget and schedule. Because the integrated project team has already been put in place, these steps can be completed more efficiently and at a better level of quality than a traditional construction project.

The project manager can rely on the contractor to improve the accuracy of cost estimates and reliability of selected products. Given the relative youth of the green building industry, sustainable building products are also a relatively immature market. According to McGraw-Hill Construction 2006, no single leader stands out in the green building materials, and no third-party entity validates such products. As a result, green building products can inflate a project’s cost without delivering the expected performance or quality.

The continuity of the working relationship between the architect and the builder along with engineering consultants and other professionals, also improves the delivery time and accuracy of construction documents.

Once these documents are complete, changes in the project’s design or im-

plementation can become expensive, confusing, and difficult to implement. By using the charrette document as a guideline and continuing to solicit the involvement of the entire project team, the project can avoid added costs and have a higher quality of construction documents.

Benefits from the charrette also carry over into the project’s local government permitting phase. The zoning approval process can often go more smoothly after an inclusive charrette process has been completed because the project will be less likely to face community resistance. The charettte process encourages feedback from local government planners and other regulatory agencies in the early stages so that zoning considerations are factored into the site plan well in advance. The same is true for the permitting phase.

With local government stakeholders involved in the charrette, the project’s initial design is more likely to comply with local, state, and federal development regulations. Involving local officials early in planning and design phases also provides opportunities to take advantage of incentive opportunities that may be available for green building permit rebates, expedited review periods, etc..

Using Bonuses and Rewards in Project Contracting The building contractor is usually hired for conventional construction projects after the construction documents are completed and put out for bid. The most common form of bidding with traditional construction is the hard bid method, where the lowest bid cost is awarded the job and subcontracts are negotiated solely by the contractor. While hard bidding typically results in the lowest possible price, it has several disadvantages, including questions about the quality of subcontractors, how contract savings are used, and fragmentation of accountability. When using the hard bid method for sustainable construction, contractors will often add premiums to cost estimates to cover perceived risks, especially if LEED certification is mandated or if the contractor does not have green experience (Griffin 2005, unpublished).

For these reasons, the integrated project team is superior for a green project.

The integrated project team already has a contractor in the mix that understands the owner’s vision, has participated in the design and cost estimating processes and can begin work as soon as the construction documents are complete.

Having said that, the builder’s contract for project implementation will still need to be negotiated with assurances to protect both the owner’s and the contractor’s interests. For green projects, a cost-plus-fee arrangement with requirements for an open-book subcontracting process, a minimum number of bids for subcontracts, and specific clauses about how any project cost savings will be used is recommended Reed and Gordon 2000. Open-book subcontracting allows the owner to have access to the estimates and pricing submitted by subcontractors. Open-book contracting can decrease the time required for the bid and negotiation phase, decrease the occurrence of change orders, and increase the chances of attracting higher quality, experienced builders to the project.

Contracts should include performance agreements, incentives and bonuses for implementing sustainable practices and exceeding sustainability goals Pennsylvania State University 2004. Bonuses and training create a system of rewards rather than penalties for achieving green standards, which helps decrease the contractor’s need to add a “green risk premium” to the contract.

Providing Ongoing Training and Communications to Reduce Costs Continual communications and training are essential during the construction phase to ensure accomplishment of green project goals in a cost effective manner. LEED and Charette need to be employed for effective communication during initial stages of the project for accurate planning.

Technology may be used to help facilitate ongoing communications. Teleconferences, conference calls and online training sessions can be valuable tools, especially when dealing with a complex project that includes numerous subcontractors. A project management software system is a must. Such

a system can be critical when tracking documentation for LEED certification and allows for paperless tracking of the budget, schedule, project personnel, and so forth Pennsylvania State University 2004.

To set the tone for training, the project manager should launch construction with a kickoff meeting that includes a sustainable education component for on-site construction personnel. Prior to commencing work, the project manager will conduct a similar kickoff meeting with all incoming subcontractors.

In addition, the entire site workforce should be invited to attend monthly on-site meetings that include periodic education and training sessions on green building as well as rewards and recognition for work groups that complete work ahead of schedule, within cost constraints, or at the desired level of green standards.

Conclusions and Future Directions Greening project management practices can significantly improve the ability of a sustainable construction project to be delivered within acceptable cost constraints. A matrix presenting specific adjustments to traditional project management practices based on the project management life cycle has been presented. The basis of the matrix revolves around the premise that a green project improves it chances for financial success if a cross-discipline team is involved at the earliest stages and throughout the project. In addition, the following guidelines should be adopted when pursuing a green construction project: 1. Begin with the end in mind: set specific sustainability goals and project priorities for green building features before initiating design and construction.

2. Integrate the project team: hire the project manager and the key members of the project team early in the project’s feasibility stage to ensure collaboration. Host a charrette early in the process.

3. Design with the whole team approach: all members of the project team should continue to participate in the formal design phase, initial price estimating, and construction

document development.

4. Use bonuses and rewards in project contracting: use costplus- fee arrangement with special clauses to promote efficiency and incorporate incentives and bonuses for implementing sustainable practices and exceeding sustainability goals.

5. Provide for training and communications throughout construction: conduct kickoff and monthly meetings with the entire site workforce, including a sustainable education component in sessions.

The benefits of the integrated design process are essential for the successful delivery of a cost-efficient green construction project. The integrated approach is successful in overcoming a challenge that has impacted development and construction for many years: splintered functional experts who struggle with communicating and collaborating as a team.

In conclusion, we see the value of this paper in two ways. First, we believe that the proposed model and our findings can be of immediate use for practitioners. Second, our recommendations for green construction could be validated by a research study.

Suggested future research interests are many. First, while there are many existing case studies about the performance and cost of sustainable projects, there are few case studies about the project management processes and integrated team approaches applied on such projects. Therefore, validating the suggested model in Fig. 1 can be a good beginning. Second, there is limited information about the greening of the building supply chain. This may be attributed to the lack of a green product manufacturing leader who produces or distributes a wide array of green building supplies McGraw-Hill Construction 2006. Instead, the green building supply industry tends to be more specialized and fragmented, which can cause increased costs when procuring green products. Additionally, the lack of a certifying entity for green building supplies has led to a perception of “green washing,” or the proliferation of unsubstantiated claims about green products, by professionals in the development industry McGrawHill Construction 2006. These supJoP, January-March 2012

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ply challenges can have a substantial impact on the future of green project management and warrant further research. Finally, further research is needed in this area to determine if the recommendations for green project management could benefit traditional construction projects.

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• Davis Langdon. 2007. The cost & benefit of achieving green buildings, Davis Langdon and Seah International, Sydney, Australia.

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Kibert, C. 2005. Sustainable construction: Green building design and delivery, Wiley, Hoboken, N.J. Lennertz, B. 2003. “The charrette as an agent for change.” New urbanism: Comprehensive report & best practices guide, 3rd Ed., New Urban Publications, Ithaca, N.Y., 12-2-8.

Matthiessen, L., and Morris, P. 2004. “Costing green: A comprehensive cost database and budgeting methodology.” Davis Langdon, h ttp://www.davislangdon.com/ USA/Projects/CostingGreen/<?> May 19, 2007.

McLennan, J. F. 2004. “The philosophy of sustainable design, Ecotone, LLC, Kansas City, Mo. McGraw-Hill Construction. 2006.

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Reed, W., and Gordon, E. 2000. “Integrated design and building process: What research and methodologies are needed?” Build. Res. Inf., 285/6, 325–337.

Sappe, R. 2007. “Project management solutions for building owners and developers.” Buildings, 1014, 22–22.

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Dr Vittal Anantatmula

Dr Vittal Anantatmula is an Associate Professor of Project Management in the College of Business, Western Carolina University. He is also the Director of Graduate Programs in Project Management. Dr. Anantatmula’s current research is focused on project management teams, integrating knowledge management and project management, knowledge management effectiveness, project management performance, and leadership.

He is consulting many Indian companies and imparting long and short term training to some of top Indian and US companies, for enhancing and developing project management capabilities in their executives. vittal@wcu.edu

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Back to School

Polymers and Plastic Materials Polymers and plastic materials are high molecular weight compounds comprised of two or more repeating organic or synthetic base molecules.

Types of Polymers and Plastic Materials Thermoplastics are polymers that turn to liquid when heated and turn solid when cooled. They can be repeatedly remelted and remolded, allowing parts and scraps to be reprocessed. In most cases they are also very recyclable.

Elastomers and rubber materials are characterized by their high degree of flexibility and elasticity (high reversible elongation). They are based on a variety of different systems, including silicone, polyurethane, chloroprene, butyl, polybutadiene, neoprene, natural rubber or isoprene, and other synthetic rubber or compounds.

Thermosets or thermosetting plastics are polymer materials that have been irreversibly cured. They are generally stronger than thermoplastics due to polymer cross-linking and are better suited for high-temperature applications (below their decomposition points). They tend to be more brittle than thermoplastics and many cannot be recycled due to irreversibility.

Polymer and Plastic Material Properties Special consideration should be given to properties such use temperature, coefficient of thermal expansion, thermal conductivity, and tensile strength. Use temperature is the allowable temperature range in which the compound can operate effectively which determines what environments the resin can be used in. The coefficient of thermal expansion is a measure of the tendency of the compound to change in volume in response to temperature, which could limit space restraints under certain operating temperatures.

The thermal conductivity of the polymer is a measure of how well the material conducts heat or transfers heat, which is important for temperature conscious environments. Tensile strength is the maximum stress a material can withstand while being stretched or pulled before necking deformation occurs.

Material Types and Grades Material types for polymers and plastic materials include cross-linked materials and resins, and compounded raw materials such as pellets and liquids. Electrical and electronic materials, optical grade materials, and self-lubricated or bearing-grade plastics and plastic materials are also available.

Cure Type and Components Cure type or cure technology is also an important consideration when selecting products. Choices include air setting or film drying, anaerobic, thermoplastic or hot melt, thermosetting or cross-linking, room-temperature curing or vulcanizing, and pressure sensitive adhesive (PSA). Polymers and plastic materials that are cured with ultraviolet light (UV) are also available, as are reactive resins, single-component products, and two-component systems.

Composites and Composite Materials Composites and composite materials usually consist of a matrix and a dispersed, fibrous or continuous second phase.

There are three basic types of composites and composite materials: polymer matrix composites (PMC), ceramic matrix composites (CMC), and metal matrix composites (MMC).

Most industrial composites use a resin system, a catalyst or curing agent, and fiber reinforcements that strengthen finished parts. Advanced composites use high-performance resin systems and high-strength, high-stiffness fiber reinforce-

ments. In some cases, an advanced composite or advanced composite material provides electrical properties such as insulation or conductance.

(BMCs), pre-preg materials, and fabricated composite parts.

Composites and composite materials are formed through a variety of processes. Examples include resin formulation, solution prepegging, wet filament winding, automated tape lay-up, resin transfer molding, pultrusion, and injection molding. Resin formulation consists of mixing epoxy or other resins with additives such as curing agents or accelerators to achieve specific performance parameters. Prepegging involves the application of formulated resin products to a reinforcement material such as carbon, fiberglass, aramid fiber or cloth. Wet filament winding draws continuous fiber reinforcement materials through a container of resin mixture. Automated tape lay-up feeds a prepeg tape material through an automated tape machine. Resin transfer molding is used to join parts with two smooth surfaces. Pultrusion pulls continuous roving strands from a creel through a strand-tensioning device into a resin bath. Injection molding, one of the oldest methods for producing composites and composite materials, is usually automated.

There could be a variety of different polymer matrices. Some of the most common are epoxy, polyacetal, PEEK, fluoropolymers, and phenolics.

Composite material suppliers are located across the United States and around the world. They differ in terms of capabilities, approvals and certifications, and markets served. Industrial composites and composite materials are used in consumer products, piping, athletic equipment and construction applications. Aluminum composite materials, composite building materials, and composite roofing materials are commonly available. Some composite material suppliers specialize in advanced composites and composite materials for military and aerospace applications.

Polymer and Plastic Composites Polymer and plastic composites are plastics which are strengthened with fibers, fillers, particulates, powders and other matrix reinforcements to provide improved strength and/or stiffness. Examples include fiber reinforced plastics (FRPs), sheet molding compounds (SMCs), bulk molding compounds

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Types of Polymer Matrices

Epoxy resins exhibit high strength and low shrinkage during curing. They are known for their toughness and resistance to chemical and environmental damage. Most are two-part resins cured at room temperature. Depending on the formulation, epoxy resins are used as casting resins, potting agents, resin binders, or laminating resins in fiberglass or composite construction. They are also used as encapsulates, electrical conductors in microelectronic packaging, and adhesives in structural bonding applications.

Polyacetal or polyoxymethylene (POM) is a thermoplastic used in precision parts that require high stiffness, low friction, and excellent dimensional stability. It provides a higher strength material compared to polyethylenetype polymers; however, polyacetal materials are susceptible to oxidation at elevated temperatures. DuPontâ&#x20AC;&#x2122;s DelrinÂŽ is a common polyacetal engineering resin that is also used to mold plastic parts.

PEEK or polyether ether ketone is a colorless organic polymer thermoplastic. It has excellent mechanical and chemical resistance properties that are retained at high temperatures. It is highly resistant to thermal degradation as well. It is used extensively in the aerospace, automotive, electronic, and chemical process industries.

Fluoropolymers including polytetrafluoroethylene (PTFE) and polyvinylidene fluoride (PVDF) are used in applications requiring superior chemical resistance. PTFE is used in applications requiring superior chemical resistance or low friction.

Phenolics are thermosetting molding compounds and adhesives that offer strong bonds and provide good resistance to high temperatures. Phenolic resin adhesives made from chemicals

of the phenol group and formaldehyde are generally the most durable.

Phenolic resins are available in liquid, powder, and film form. Special phenolic resins are available that harden at moderate temperatures when mixed with suitable accelerators. Urea formaldehyde resins can harden rapidly at moderate temperatures, but generally do not have the properties of phenolic resins. Melamine resins have excellent dielectric properties.

Matrix Reinforcements Products may be strengthened with fibers, fillers, particulates, powders and other matrix reinforcements to provide improved strength and/or stiffness.

Fibers are usually chopped, wound or woven and made of materials such as fabric, metal, glass, or fiberglass. Particulates vary in terms of shape and size. Powders are usually made of carbon, graphite, silicates, ceramics, and other organic or inorganic materials.

Some matrix reinforcements provide improved electrical conductivity. Others offer improved thermal conductivity.

Thermoplastic Composites Thermoplastic composites include glass mat thermoplastics (GMT), weave-reinforced GMTs, low-density composites, and composite sandwich panels. GMTs are compression-molded thermoplastics that are used in place of metals such as aluminum or steel, plywood, or even engineered materials.

Weave-reinforced GMTs are synthetic fabrics that are used as automotive materials to provide enhanced protection of a carâ&#x20AC;&#x2122;s underbody on poorly surfaced roads.

Product Features Polymer and plastic composites vary in terms of features. Products that are designed for electrical and electronics applications often provide protection against electrostatic discharge (ESD), electromagnetic interference (EMI), and radio frequency interference (RFI).

Materials that are electrically conductive or resistive are also available.

Polymer and plastic composites that use a phase change provide enhanced thermal characteristics.

Back to School

Effects of Rare Earth Oxides in FCC Catalysts Background

Figure 1:Hydrothermal Stability Metals free basis

Anyone involved with zeolitic fluidized catalytic cracking catalysts quickly becomes aware of the importance associated with the catalyst's rare earth content . . . and often just as quickly confused. Some commercial cracking catalysts have a high rare earth content, while other catalysts contain low levels or even zero rare earth content. Which variety of catalyst is better? . . . Why is it sometimes advantageous to have catalysts containing rare earth and at other times undersirable? . . . and just what are rare earths anyway?

What are Rare Earths?

Rare earth is a generic name used for the 14 metallic elements of the Lanthanide series which contain the atomic numbers from 57 through 71 plus Scandium (At. #21) and Yttrium (At. #39). These elements occupy a unique place in the periodic chart. They are the first elements where the increasing atomic number results in the filling of the inner electron shell after an outer shell has been filled, causing a high similarity in chemical properties. This similarity complicates the separation of one rare earth from another. They are, therefore, often supplied as a mixture of oxides as extracted from ores such as bastnaesite or monazite.

The typical rare earth consists of 46% Cerium Oxide, 20% Lanthanum Oxide, 15% Neodymium Oxide, as well as other oxides of the series. Processors also supply a form of rare earth in which the greater part of the Cerium has been removed. This mixture, known as "Lanthanum rich", contains 6-10% Ce2O3, up to 80% La2O3, 15% Nd2O3 and other oxides. Extensive laboratory tests indicate minimum difference in catalytic performance, and FCC catalysts are accordingly treated with either of the two mixtures.

posure to the high temperatures observed in commercial FCC regenerators the original X-type zeolite cracking catalysts had a tendency to sinter and become amorphous in nature, resulting in a loss of catalyst activity. Addition of rare earth oxides to the cracking catalysts improved their hydrothermal stability; providing stable operations at regenerator temperatures as high as 1300째 F.

Why Rare Earths?

The subsequent development of Y-type zeolites improved the catalyst's inherent hydrothermal stability. In fact, these newer FCC catalysts without rare earth could withstand temperatures comparable to their earlier counterparts with rare earth. These Y-type zeolites with rare earth remain stable at temperatures as high as 1400째 F. Figure 1 illustrates differences in catalyst hydrothermal stability with and without rare earth.

. . . Hydrothermal Stability

Higher Gasoline Yield and Reduced Gas Make

Lack of hydrothermal stability is the primary reason for adding rare earth oxides to catalytic cracking catalysts. Upon ex-

Rare earth oxides are added to zeolite cracking catalysts

Figure 2: Rare Earth Zeolite yields more Gasoline

exchanged cracking catalyst the hydrogen transfer reaction of interest is as follows: Naphthenes(LCO) + Olefins(Gasoline) ->Aromatics(LCO)+Paraffins(Gasoline) Thus hydrogen transfer reduces the amount of olefins found in the product. These reactions also influence the molecular weight distribution of the product by terminating carbonium ions before they crack to shorter chain fragments.

through a process known as ion exchange. During this process a portion of the acidic protons and sodium located within the zeolite crystal are exchanged with rare earth ions.

Because rare earth inhibits the dealumination of a zeolite, a higher concentration of acid sites will be found in a rare earth exchanged catalyst. This improves both the activity and the hydrothermal stability of the catalyst. On average, these sites are weaker and in closer proximity to each other than those found in a more highly dealuminated catalyst characterized by lower unit cell size measurements. (See CATALYST REPORT #762 for a definition of unit cell size).

As a result of the greater number of active sites, both the primary cracking and primary hydrogen transfer reactions that occur within the zeolite are enhanced. Primary cracking reactions involve the initial scission of the carbon-carbon bond to form higher valued liquid products such as gasoline. Primary hydrogen transfer reactions are those that occur between cracked products to terminate the cracking reactions in the gasoline range, thus, reducing the overcracking of gasoline to C3's and C4's. The hydrogen transfer reactions are greatly increased with the addition of rare earth to the zeolite.

Thus, rare earth in catalytic cracking catalysts enhances their gasoline yield.

Figure 2 is a plot of gasoline yield at varying conversion levels for two standard cracking catalysts with different

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levels of rare earth. This data suggests a strong correlation between rare earth content and gasoline yield.

Lower Octane and Reduced Cetane Index The addition of rare earth into the zeolite inhibits the degree of unit cell size shrinkage during equilibration in the regenerator. Steam in the FCC regenerator removes active acidic alumina from the zeolite. Rare earth inhibits the extraction of aluminum from the zeolite's structure (dealumination) which in turn increases the equilibrium unit cell size for FCC

As hydrogen transfer reactions increase relative to cracking reactions, olefin yield, light gas yield and octanes decrease, while gasoline yield increases.

Because rare earth oxides promote hydrogen transfer, the yield of C3 and C4 olefins in the LPG fraction will be lower. (See Figure 3) The resulting reduction in the total LPG yield results in a reduction in the wet gas yield. This reduction in wet gas can have a major effect on plant operations, as compressor capacity is often the limiting factor for FCC unit throughput.

A refiner's own product requirements determine whether a rare earth or non rare earth catalyst is used. If gasoline

Figure 3: NH4 Zeolite yields more LPG

catalysts. Since reducing the equilibrium unit cell size of an FCC catalyst has the effect of improving octane, adding rare earth decreases the octane.

In addition to the above mentioned reactions, the rate of secondary hydrogen transfer reactions is also increased by rare earth. For a rare earth

is desired, a rare earth cracking catalyst should be used; if higher gasoline octane is required, a minimum rare earth catalyst or partial rare earth catalyst should be the catalyst choice. For a catalyst containing reduced levels or no rare earth, the use of an Ultrastable (USY) Zeolite Catalyst is recommended for improved hydrothermal stability.

Special Feature: Women in Business

Women Leaders of Indian Oil Industry Nishi Vasudeva

Director (Marketing) HPCL Ms. Nishi Vasudeva took charge as Director – Marketing effective July 04, 2011. Prior to this she was the Executive Director (Marketing Coordination) of HPCL. Ms. Nishi Vasudeva is MBA from Indian Institute of ManagementKolkata. She commenced her career in the Petroleum Industry with Engineers India Ltd. She has a wide exposure to the Petroleum Industry spanning over 34 years in various streams like Marketing, Corporate, Strategy & Planning, Information System etc.

M

s. Nishi Vasudeva, an MBA from IIM –Calcutta, holds the distinction of being the first woman executive to join the Board of Directors of Hindustan Petroleum Corporation Ltd. This is for the first time in the history of the Indian Oil & Gas Industry that a lady member has been appointed on the Board of Directors .

An MBA from IIM Calcutta, Ms. Vasudeva joined HPCL in the year 1979 as an Economic Analysis Officer. Over the years she has steadily grown in the Corporation and has held several important assignments at different points of her career in various areas such as Marketing, Corporate Strategy & Planning, Information systems etc. Her varied experience has proved to be valuable to HPCL in the development of its strategies and in several important initiatives taken by HPCL. Ms. Vasudeva has continually enriched all the positions that she has ably held.

It is an extremely proud moment for HPCL that Ms. Nishi Vasudeva has been elected as the Vice President – Youth & Gender, Executive committee of World Petroleum council at the recently concluded World Petroleum Congress [WPC] 2011, held in Doha, Qatar.

While, as Director-Marketing, Ms. Vasudeva is jointly responsible with other Board members for meeting overall Corporate objectives, she has the primary responsibility to ensure growth, expansion, upgradation and integration of the Marketing Division of the Corporation with a clear focus on profitability.

Within a short time of her taking over at the helm of affairs she has given the Marketing Division a challenging vision. Towards realisation of this vision, she has held alignment meets across various Business Units and focussed her efforts on building greater synergies and collaboration amongst various lines of the business.

She was the Executive Director of the LPG Strategic Business Unit immediately before her elevation as the Director-Marketing of the Corporation.

As Executive Director - Information Systems she led a team of 220 officers which included IT professionals and cross functional teams from all functions of the Corporation viz. refineries, marketing, finance and HR. This period saw a transformation of the IT function of the Corporation from a back office support function to one of a partner to the various business units.

She has also led several important initiatives of HPCL such as Business Process Re-engineering Study, Project Parivartan etc. and represented the Corporation in various important forums like the Committee for Development of Perspective Plan for Hydrocarbons (also knownas the Sundararajan Committee) which carriedout an in-depth analysis of the Petroleum Sector and was instrumental in laying the road map for deregulation/dismantling of the APM and ushering in reforms in the Oil & Gas Sector.

She is a serving member on the Board of South Asia LPG Co. Pvt. Ltd – a Joint Venture Company with M/S Total Gas and Power India (A wholly owned subsidiary of Total, France).

Ms. Nishi Vasudeva was the recipient of the “CIO 100” Award for four consecutive years from 2006-07 to 2009-10 by virtue of which she was inducted into the CIO100 Hall of Fame. She was also nominated to the CIO Power List 2008 by MAIA Intelligence List. She was nominated by MIS ASIA to the Top 200 CIO’s in Asia. Ms. Vasudeva was also the recipient of Silver Edge Award

by M/s Information Week for the e-collections module implemented at HPCL. Recently, Ms. Vasudeva was conferred with the Top 25 Outstanding Marketing Leaders Award by the World Brand Congress 2011.

Ms. Nishi Vasudeva is a role model for many women across the PSU’s. Yet as an effective female executive, in her humble submission she says “I do not think that effectiveness at work is gender specific. I have never felt any distinction being made between men and women in terms of work opportunities or recognition. As an individual, I always strive to meet a high Standard of excellence and feel a sense of duty to do my best. If I have to choose 3 critical success factors, these would be my choices - Belief, Action and Disci-

D Lilly

Director (Finance) CPCL Ms. D.Lilly, Director (Finance) Chennai Petroleum Corporation Limited Ms.Lilly is an Associate Member of the Institute of Chartered Accountants of India (ICAI), the Institute of Company Secretary of India (ICSI) and the Institute of Cost & Works Accountants of India (ICWAI). She also holds a Law degree.

She joined Indian Oil Corporation Limited (IOCL) in 1977. During the more than three decades of service in Oil Sector, she has held various positions in Finance at the various Units, Head Office and Corporate Office of IOCL and has acquired wide experience in the areas of Financial Management, Investment Appraisal, Pricing and Taxation.

Prior to this appointment she was Executive Director (Pricing & Taxation), Corporate Office, IOCL.

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pline. In order for you to achieve anything in yourcareer, in fact your life - you have to first believe. Once your mind is convinced that you can do it, nothing is impossible. When you act upon what you believe, there is focus.

And there is energy. That energy propels you to greater heights. Action in itself is not enough - It is disciplined action, and a strong commitment that brings results. Discipline also ensures that you can bepersistent in your endeavors especially whenfaced with challenges”.

Ms. Nishi Vasudeva has a message for

I

young colleagues: “While individually the success and contributionsof each business line is a matter of record, I sincerely believe that the coming decade would belong to Corporations which invest and build synergistic teams which can deliver incremental results on a more consistent basis. Only such synergistic performance would help us to achieve our targets. When we speak of achievements in future, I would like leaders at all levels to think more holistically and beyond the narrow confines of their business lines as to how they can contribute to the bottom line of the organization.

t was a small room with a chair and a table for the Teacher in the centre next to the wall. On the one side were students of Class I and on the other side were the students of Class II sitting on the floor. The Teacher has to double up as the Post Master as well for the town. When the Class I students recite the basic alphabets, the Class II students at the same time would recite basic poems in Tamil. I was in class I with my sister, at the opposite side, in class II

entire credit to IOC. The journey in IOC was eventful from more than one perspective i.e. eventful with reference to the diverse assignments given to me, the various locations I was placed in and the further professional qualifications viz CS, CWA and LLB I could obtain over the periods. From HO, Refineries, Delhi to Oil Co-ordination Committee (OCC), the then MRL, Koyali Refinery at Baroda, Pipelines HO, Noida, Corporate office, Delhi, & now to CPCL the journey was indeed diverse and eventful.

At the end of the day when the school work is to be done, I along with my elder sisters and brother use to gather around a hurricane lamp. This was in a small town in Tamil Nadu where my initiation into the world of education began. The journey of formal education which started in such a humble surrounding ended with Stella Maris College, a prestigious institution in Chennai with my passing out as a BSc (Chemistry) graduate. There were twists and turns along the way, my aspirations to become an Engineer initially and then to become a doctor, a bio-chemist, got way laid. I landed in the unexpected field of Chartered Accountancy (CA) with zero knowledge of Accountancy/Commerce.

It is very difficult to compress the experiences of a three and half decade career with only a few memorable assignments and milestones. Even though there were ups and downs, I can say with confidence that I enjoyed each one of my assignments, be it the slogging for finalizing accounts for periodic and time bound settlement with OCC, issues relating to crude oil & product accounting during both the APM & Post APM periods, pricing of Petroleum and petrochemical products, work relating to Financial Concurrence for various proposals, appraising project investments, issues relating to Taxation, WTO & DGFT or contribution to system developments pre- SAP & post- SAP days etc.

Since I was lucky to finish Chartered Accountancy with ranks – both in Inter and Final, I can say that the doors to corporate world automatically opened to me. I decided to Join IOC, in Refinery Head Quarters at New Delhi. I never imagined at that point of time that I would have such a long and satisfying career in IOC. If I have a standing in the community today, I attribute the

Whenever I am asked about the challenges I have faced I am at a dilemma to pin point just one. I always remember the statement made by Edmond Hillary on a question asked about his Everest climbing that he has not climbed the Everest as a challenge but he climbed it since Everest was there. I find that my approach to issues were mundane and practical. I never consider any issue

as a challenge that needs to be overcome. There were assignments which helped in honing in professional skills; and there were assignments which also brought negative fall outs but then I was only playing the role assigned to me. As long as the roles needed certain things to be done I was doing it to the best of my ability and with sincerity.

Jatinder Peters

GGM (HR) ONGC Jatinder Peters, GGM(HR), ONGC is a multifaceted personality. She had excellent academic career and a National an awardy of National Science Talent Scholarship. A trained organic Chemist and life scientist, she workes as a scientist before moving to Human Resource Department on completion of her management studies. Mrs. Peters has been first woman to hold many of the varied assignments including Head of Industrial Relations, heading an Institute and being MD of a Company.

Women's issue have been close to her heart and she has contributed to women empowerment through her association with various bodies like Women Development Forums in ONGC (Chairperson), Women in Leadership (Board Member), AIMA Women's Conference (Steering Committee Member). She has won many awards and accolades.

When I started my career there were very few women professionals in general and also in IOC specifically. Over the period I have seen a sea change with a number of women professionals entering the corporate world especially in Finance. This is a very welcome development. However, we still talk about the number of women being very

less in the top levels and the existence of “Glass Ceiling”. I am sure even this also will change in the years to come which I am sure is not far off. So my message to youngsters including women professionals is to set their priorities, focus on issues and give their best.

I am sure success will support them.

Contribution & Achievements

Awards & Recognitions

• First author of Patent on Oil well cement additive, which is already commercialized and is in use in ONGC. Identifified additives and designed Foam Cement Slurries when the technique was only 4 years old internationally.

• Recipient of "National Science Talent Scholarship" from NCERT throughout the college Education (1968-1976)

• Turnaround of ONGC Women's Polytechnic a community development project of ONGC and started many new initiatives like Annual Fashion Show "Ensembles" and Annual House Magazine 'Vividha'.

Achieved recognition from bodies like All Inida Council of Technical Education (AICTE), DOEACC for courses at Polytechnic.

• Closely involved in Women's Development activities not only for ONGC but also other public sector companies in India through holding office of President in Women in public sector forum.

• Core Committee member on Forum on Women in Leadership.

• Speaker at various forums, conferences, in India and overseas, including business schools and corporates on management and development topics.

• Recipient of "Esso Science Exhibition Award" in college. Bio-data is published in "Chemistry's Who's Who" and "Men and Women of excellence in Asia's Who's Who" published by Rifacmento International.

• Received "Best Presentation Award" for paper in National Seminar on "Transition from learning to workHRD Strategies in Technical Education" held at Coimbatore, India.

• Chosen to the 'Professional Women's Advisory Board of American Bigraphical Institute.

• Received SANSA Award in the category of "Corporate Achiever" hosted

by Fedration of Women Enterpreneures and M/s Friendz Events and Promotions Ltd. Was awarded 'Woman of the Year 2003' by American Biographical Institute, USA. • Received Women's choice award forum WILL forum. Received awards for promotion of hindi, Received award in the Category "Leading woman leader in public sector"

Mrs Peters is Certified Gender Auditor from ILO, a Certified Coach and an Assessor for Assessment Development Centers. She has presented papers at various conferences, seminars, workshops and also contributed articles in magazines and journals. She also holds one Patient. And she is also a painter, gittaris and a Bonsai Artist.

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Veena Swarup

GM (HR), ONGC An MBA from Lucknow, joined ONGC in 1983 and has held various prestigious and challenging assignments.

Currently Heading the Performance Management & Benchmarking Group, which steers Performance Contracts between Board Level and Unit Chiefs.

The other Assignments include association in setting up the ONGC Energy Center, head HR at various Units of ONGC, Policy making and Negotiations with collectives. She headed the SAP-HR Project for ONGC, which was the largest Project in Asia at that time.

She was deputed to MRPL as a change agent to initiate aligning the Company to Public Sector requirements. She has also had a short stint in Directorate General of Hydrocarbons as the Head of Corporate Affairs and HR.

A Journey of Challenges and Opportunities During my career spanning 29 years, ONGC has given me challenging opportunities and sky has always been the limit for creativity, innovation, initiative and drive. Being a Management Professional, I have had various opportunities in HR, Industrial Relations involving Negotiations with Multiple Unions, Project Management, Change Management and various other facets of Management, including Policy Framing, execution and Coordinating APEX Body Meetings in Upstream, Down Stream PSUs and with the Upstream Oil and Gas Regulator - The Directorate General of Hydrocarbons (DGH). I also had short stints of 3 years at MRPL as Head Systems & HR and 1 year at DGH as Head HR and Corporate Affairs. I had the opportunity of Heading HR at Units such as Western Offshore Basin Mumbai, MRPL Mumbai and DGH. As Project Head for the SAP HR Project for ONGC (SHRAMIK PROJECT), the largest implementation in Asia at that time, I was responsible for Planning, Coordination, Project Management, Training and implementation of the SAP Modules, which included Business Process Re-Engineering, Data for 40,000 Employees through 22 Locations of ONGC and Training to over 2500 Users. This was an Organization wide Change Management opportunity, with a Team of 80 members from ONGC and Consultants.

I had the privilege of being part of ONGC Energy Center Team at the time of setting up, wherein through creativity and initiative the Trust was setup and the Energy Centre was up and running with separate Rules & Regula-

tions, inbuilt Project Management and Monitoring mechanisms and induction of Young Project based Professionals.

Another challenging Change Management Assignment was my Depuation to MRPL immediately after takeover of MRPL by ONGC, to align the then private Company to PSU Systems, specially HR Policies for Hiring and Growth, wherein Government Rules/Stipulations were required to be embedded. In fact the first large scale recruitment in MRPL in line with Public Sector requirements was steered by me when over 200 Persons were recruited at varous levels.

The stint at Directorate General of Hydrocarbon (DGH) widened my vision, with an overview of the entire E&P Sector. It was a diversified and very satisfying exposure, with assignments ranging from Head HR and Administration, which included arranging Road Shows, Investors Meet, Contract Signing, to HR Policies, Offshore Security, Coordinating APEX Body Meetings and stream lining processes for MOD & MHA Clearances required by E&P Operators.

My present assignment being equally challenging, as Head of Performance Management & Benchmarking Group, has given me the opportunity to stream line, prepare and execute the Performance Contracts (Balanced Score Cards) Between Management and Key Executives and the Service Level Agreements (SLAs) between the Asset Managers/ Basin Managers with Chiefs of Services, wherein this model has been rolled out with inbuilt mechanism of quarterly monitoring and highlighting areas for timely interventions. This Tri-lateral Agreement of Performance Contracts and SLAs has set the pace and tone for excellence.

Being the first recipient of the Young Executive Award when it was instituted in 1988, it has been a long journey through various stages of learning and implementations and many more leadership rolesopportunities given to me by my companyONGC.

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M Bhatnagar

GM (HR), MRPL Ms Manjusha Bhatnagar is General Manager (HR) of MRPL, a Mangalore base Oil refinery subsidiary of ONGC. Prior to taking up this assignment. She had work for over twenty four years with IndianOil in various areas at Human Resource Mangement. She has been reciepient of several awards and been member of various committee and forums. She was althoughworked for development of woman employees in PSUs.

T

he gates of opportunities opened for Manjusha when she earned the President of India’s Merit Scholarship and received education at the renowned MGD Girls’ Public School, Jaipur. An MBA degree in HR enabled her join her dream company – Indian Oil Corporation.

started getting sponsored education, new health initiatives were launched for villagers and vocational training was introduced for women. She worked hard, accepted challenges, expanded horizon for self and others, learnt constantly and reached out to employees and people around the refinery!

Quick job rotations, variety of tasks, the freedom to accept more assignments and challenges coupled with learning opportunities were a blessing. Her contribution in Corporate Policy Cell projected IOC as an employee friendly company, earning it the recognition of ‘One of the Best Employers’ for a number of years in a row. She also persuaded IOC Management to adopt numerous pro-women polices, removing disparities, touching the lives of many women within and outside the company – including the society. She is credited with pioneering the Child Care Leave in Indian Oil Corporation, which was adopted by many companies – both Public and Private and later – by the Government of India.

Besides, Manjusha has held various offices at National Level. She contributed as Secretary, Oil Sector Personnel Chiefs' Meet from 1994 -1998 and also contributed as Member of the Inter-Organizational Advisory Committee on Women’s issues, Ministry of Petroleum & Natural Gas, Government of India. She was a Member of the Taskforce Committee on HR & Training of Federation of Indian Chambers of Commerce & Industry between 1999-2003 and the General Secretary - Forum of Women in Public Sector 2006 -2009, constituted under aegis of SCOPE. Presently a Member of HR Task Force, All India Management Association, New Delhi, since April 2010, she is also a member of the RTI Act Steering Committee of Standing Conference on Public Enterprises.

Manjusha exhibited extraordinary courage by resigning from her comfortable job in IOC to accept the challenge of spear-heading HR changes in MRPL which tested her mettle and competencies in an unfamiliar arena. Without any other HR expert in the company, as General Manager (HR), she led transition management in the company by steering HR issues, assisting the Managing Director in Board meetings and at other top level platforms.

These efforts resulted in creating transparent systems and policies with focus on productivity, learning and growth. She negotiated effectively with collectives, boosting employees’ morale and provided the direction for the company’s first ever Long Term Settlement with the Union, applicable for a decade, ensuring harmony. Consequently, high attrition was checked, employee engagement went up, yielding to the company earning the highest Profit After Tax per employee year after year. Her efforts brought Delhi Public School to Mangalore; hundreds of SC/ST and girl students of fifty Government Schools

She is the recipient of many laurels, some of which are: • ‘Talented Woman of the Year Award’ by the Mayor of Delhi - 2003 • Hindustan Times - IGI Group’s ‘Best HR Executive of the Year’ Award - 2005 • ‘Best Professional Woman Executive 2007-08’ Award by MRPL She also earned the distinction of being named as ‘One among Top Two Women Executives of the Country 2010’ by Women Leaders in India and was bestowed with an award by Forum of Women in Public sector for her special contribution to Women Development in the country in 2011.

Manjusha was honored with ‘Mother Teresa Award – 2011’ by the International Society for Integrity, Peace and Friendship for service to the society in general and women in particular and awarded once again by Women Leaders in India as One among Top Two Women in the Public Sector 2011.

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She has authored and presented many papers in leading Conferences and Forums. One of her papers titled ‘Training and Career Development Philosophy versus Monitoring and Control Leadership: Excellence Models; Indicators’ has been selected by the IFTDO for presentation during the ensuing IFTDO Conference to be held in April 2012 in Kuwait. Her multifaceted exposure, role as an author and faculty and contributions to various professional forums specially the policy changes she spear-headed in IOC & MRPL and in the Oil Sector, her expertise in the field of HR and Women Development make Manjusha stand out.

dents in respect of married women employees etc. Child Care Leave was pioneered in IOC by me in 1997, the first time in a PSU after substantial amount of data analysis and changing the mind set of top management.

Also revamped age old Recruitment and Induction Training procedures in IOC to attract the best candidates from the market and mould them into top class executives. The revamp of policies, rules and systems in MRPL led to introduction of uniform rules and regulations, increase in transparency, better employee engagement, reducing attrition, consistently improving business results and yielding better company image.

Challenges faced

As the solitary HR professional in the company operating at General Manager level, helped in transition management in the shortest possible time.

Joined the Indian Oil Corporation in 1981 when not many women had entered the Oil Sector.

There were no women role models or mentors at that time and the rules, regulations and infrastructure did not facilitate discharging dual responsibilities by women employees. The general mindset was that women were not career oriented; they joined the industry only to subsist the family’s income.

Post deregulation, IOC executives had to put in long hours at work and the challenge was to create Work Life Balance.

Resigned from the well settled job in IOCL and joined MRPL, (a formerly loss making company, taken over by ONGC in 2003) in August 2007 as General Manager (HR). The challenge was to steer HR polices in line with other Oil Sector PSUs and create supporting processes and systems in tandem with the industry norms. The task was challenging since there was no other HR expert in the company and Change Management had to be steered in an unfamiliar arena.

Achievements During my tenure at the Corporate Office of IOC, I had the opportunity to remove the disparities existing in Rules and Regulations for male/ female employees such as for granting loans, declaring parents as depen-

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Message to younger generation of woman/men executives Do not be daunted by situations and hurdles. Strive hard and some day you will hit the bull’s eye. Women employees should not ask for concessions. Just ask for level playing field. Rewards and recognition may not come immediately but the satisfaction one draws from one’s efforts may itself be rewarding. The achievements themselves goad one to excel.

While male employees are more linear in approach, women are more collegiate and communicative, bring qualities of team and service orientation to workplace. Both should work together for a well balanced organisation.

Role Models & Mentors Mentor – Late Mrs. Kunti Mathur - My teacher at MGD Girls School, Jaipur who converted an introvert into a confident extrovert and showed the road to many possibilities in life.

Role Model – Ms. Chanda Kochhar, Managing Director and Chief Executive Officer, ICICI Bank Limited who has inspired many women professionals to break barriers and seek their place in the corporate hierarchy.

Bench marks set by you Benchmark set in completing assignments in time, often working for long hours at a stretch for attaining the targets. Also worked in new areas like Enterprise Resource Planning and Knowledge Management, achieving long desired changes in the organization in a short span of time.

Took up field and regional assignments and corporate postings for gaining vital experience from different experts.

Treated the team at workplace like own family, ignoring none in the team. This included taking care of their physical, mental and spiritual health and enhancement of their social status. Focus on each member and direct communication resulted in establishing stronger bonds, creating happy employees, attaining higher engagement.

What improvements you would like to see in the systems to encourage and develop more women executives hitting the roof of Oil Industry The Laws of our country should support group working of women in shifts, so that employers do not have any reservations about hiring them in greater numbers. The infrastructure in the organisation – both rules and policies as also facilities at workplace – such as flexi time, transport, Child Care Leave together with medical benefit, crèche and companion travel etc. should be promoted for hiring and retaining women in larger numbers as also for their growth.

There should be focussed learning opportunities for women employees.

Training on ‘Leadership’ for women professionals be made essential and career path should be chalked out in consultation with them so that they get rotations and field postings at the right time. When an eligible, well contributing woman employee misses her elevation, the case should be reviewed by a team of seniors with at least one woman member, to increase transparency.

This should be followed by counselling to help women employees improve and perform better.

Sukla Mistry

DGM (PJ), IOCL Ms Sukla Mistry, a graduate Metallurgical Engineer joined IndianOil Corporation as GAE in the 1986 at Haldia Oil Refinery. Working through Haldia Barauni Oil refineries as Inspector Engineer and Project Manager, she was departed to work on a world class gases root petrochemical complex of quatar Oil company.

On return from this project a quarter with experience in design engineering and project exemtion. She was assigned to work in IndianOil's first mega Petrochemical project responsible for construction and commissioning of the captive power plant. Ms Sukla Mistry is fole example of having taken head-on in a mail dominated area of plant inspection and project execution where she excelled herself winning many awards and laurrels currently she is Dy. General Manager (Project responsible for construction, IndianOil's first SBR unit at Panipat.

I

was born to a family of two younger brothers and parents Bela Mistry, a house wife and Kshirode Mistry, a diploma doctor with a family background of cultivation in a village of Bangladesh. The father soon shifted to India and settled down in a very remote tiny village in the Sundarban area of West Bengal where basic amenities like electricity, transports and proper schooling were not available.

The life was not easy for me at all. I experienced severe financial crisis during my childhood when there was no money for purchasing books and school fees. Since then, I was determined to pursue professional education and a challenging career so as to provide financial support to my family and also to make a distinct mark in my career.

My father (my mentor) had of vision for me to become a doctor or engineer.

Therefore, he took me to Kolkata after Class-X and admitted in Lady Brabourne College for higher Secondary in spite of his poor financial condition and resistance from the villagers as during those days girls were not sent outside the village for education.

My uncle at Kolkata encouraged and supported financially to achieve our dreams.

Since then I took the control of my destiny to win over all the challenges that came across while studies and my career. I graduated in metallurgical engineering from Bengal Engineering College, Shibpur, Howrah, securing distinction and rank 2nd in the final year. Thereafter, I appeared for GATE examination and secured 96 percentile. Though I had been admitted to IIT, Kharagpur for M.Tech, I could not continue and joined Haldia Refinery of Indian Oil Corporation as a Graduate Trainee Engineer to support my family and education of my younger brothers.

Upon completion of training at Indian Oil, I was posted as an Inspection Engineer in 1987. The field of Inspection is tough and robust where even, men find difficult to work as it involves climbing up in tall structures such as columns, chimney etc, using monkey or rope ladders and inspecting the equipment through extremely narrow suffocating,

congested and confined areas of various installation and equipment. But, I, being a woman, was allocated only office job such as failure analysis. I was not even allowed to work in office premises after 6 pm in the evening.

Therefore, this was another challenge for me to overcome men chauvinism in this field. Being a woman to prove my mettle, I had to work extremely hard for long hours in ardours condition and break the trend of conventional way of work being considered for women only in India. I also worked late in the evening including night shift to establish equal competency with men be it technical, physical or administrative.

During my tenure at Haldia Refinery, I worked with various task forces for special assignments such as implementation of ISO 9000/OHSMS for Haldia Refinery. I was one of the key members of Special Project Cell, a task force, for implementation of Rs 50 core grass root 1 MMTPA Crude distillation unit with complete in house engineering, procurement and construction. The project was completed in record time of only 18 months. I was also involved for in-house engineering and construction of various projects at Haldia Refinery such as Rs 6 Cores of Packinox Project, Rs 11 crores Soaker Project, Rs 50 Crores of ROSE & Rs 50 crores of NMP Projects at Haldia Refinery.

In the year 2000, I was transferred to Barauni Refinery, where I was the one of the protagonists for execution and implementation of Rs 2000 Crores Barauni Expansion Project. It was a major and very challenging project, which was meticulously planned, executed and completed on schedule, with exemplary safety record. This project gave me immense satisfaction and great learning, which helped me in my later assignments in India and abroad.

In the year 2001, I was the first and only woman engineer from the country who was selected for the prestigious assignment at ENOC Refinery at Dubai-UAE on deputation as Senior Inspection Engineer. Dubai, being an Islamic country it was a challenge by itself performing in conservative environment. There, I had undertaken inspection work of plant shutdown, working day and night shift.

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deputation, I was selected by Qatar Petroleum, as Senior Inspection Engineer for their LAB Project of Rs 2,500 Crores. Despite facing sever resistance from the organisation, home and neighbours, I accepted the challenge and was deputed for initial six months with LG Engineering & Construction Co. in South Korea for engineering work and later on I was moved to Qatar for construction work. There I, being the only lady in male dominated environment, was also a challenge by itself, working with approx. 10,000 nos. of workers and staff of various countries mostly from Egypt, Tunisia, Bangladesh, Pakistan, Thailand, Nepal, Sri Lanka, Indonesia and people of Middle East countries for such a long period.

The entire project was completed well within the stipulated schedule. Due to commitment and dedication, management of Qatar Petroleum declared me Employee of the Month in the month of February 2005.

I was then transferred to Panipat Refinery in 2006 where I had worked as Project In Charge of most challenging project, i.e. 238 MW Power Plant of Rs 14,000 Crores of IOCL’s Naphtha Cracker Project at Panipat. During execution of Project, I had worked with about 25 various contractors, 4000 workers and faced very difficult, odd and complex situations such as strike and violations by the contractors, workers, local mafia interferences almost every alternate day, which I had handled diplomatically with my courage and determination and also maintained harmonious relationship with statutory authorities like Police, Collectors office, Gram panchayat etc.

I am currently executing a Rs 1000 crore Styrene Butadiene Rubber project for Indian Synthetic Rubber Ltd. which is a JV-collaboration of IOCL, TSRC (Taiwan) & Marubeni (Japan) located at Panipat, Haryana, leading a team of 250 Engineers and 1500 workers as Deputy General Manager. This project, first of its kind in the country, is expected to commission by mid of 2013.

During my professional career while executing challenging assignments in India & abroad I received support and inspiration given to me from time-to-

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time by my seniors at various locations I had worked with and I would also like to acknowledge the support of my colleges and staff, without which I would not have succeeded in executing the challenges.

My Role Model has always been the First women Prime Minister of India late Honourable Mrs Indira Gandhi, Her courage, dedication and tenacity to overcome any challenges had a great impact on my personality. I am a strong feminist and always fought for equal right for women within and outside the organisation. During my entire tenure, I worked in male dominated environment, night shifts, adverse conditions, strike situations and always inspired other women to take-up unconventional work instead of work on table to change the mindset of our society. I ensured increased women labour participation in the projects executed by me. I organised various training programmes such as “Computer Basics, “Capability Development at office and home”, “Managing Dual Roles for Women” for the women employees of the organisation. Being sports person and sports lover, I also introduced various sports events including cricket for women employees in this organisation and for house wives in the Refinery level. I feel that time is extremely precious and hence after extended office work, I devote rest of my time on social service activities and sports.

I had presented about six papers on the field of corrosion and Inspection in National and International (Sate of Bahrain) seminars.

Being a sports person, I won more than hundred medals/ prizes in badminton and table tennis in the competition within the organisation and also out-

side the organisation such as District level, PSPB. I was the first woman Inspection Engineer in the country, who have received prestigious award of MOP&NG’s (Min. Of Petroleum & Natural Gas) NPMP Best Woman Executive of the Year 1998-99 for the courage of shattering the stereotype work associated with women executives and in conventional thinking.

In 2007, I received Samuhik Uplabdhi Award for best innovating scheme in Sulphur Recovery Plant of Panipat which brought Refinery a saving of Rs 25 crores per annum.

I, was the first Indian woman Inspection Engineer to work abroad in Middle East countries i.e. Dubai and Qatar, was also awarded MOP&NG’s prestigious Petrofed award of Best Woman Executive of the Year 2007-2008 appraising my courage, grit and determination in pursuing a difficult career path with professional competence and balance in other walks of life including complex and challenging assignments at several refineries in India and abroad.

I despite being a small town girl from a tiny village of the extreme East corner of the country finally could prove that where there is a will, there is a way. I have well settled my family which was the key responsibility of my life.

My socialist mission is to set a paradigm shift, leading by my own example for inspiring the young generation, especially women’s, to accept any challenging assignment in any part of the world with courage, determination and perseverance. Finally, “life is nothing but challenge”.

M Bhargava

I

am Manisha Bhargava & am presently working for Indian Oil Corporation Limited as Deputy Manager (Business Development). It’s now close to nine years that I have been working for the Petroleum Industry.

Journey So Far…

DM (BD), IndianOil Presently, Manisha is working withIndian Oil Corporation Limited, as Deputy Manager (Business Development). Her area of work primarily includes identification, evaluation and development of new business opportunities in the field of Petrochemicals. With around 9 years of work experience in Petroleum industry, Manisha has previously worked in the capacity of production engineer and process engineer at Indian Oil’s refinery locations.

Manisha, is a graduate and post graduate in Chemical Engineering from Indian Institute of Technology, Delhi. She also holds a Post Graduate Diploma in Business Administration with specialization in Operations Management.

Manisha was the Indian member of World Petroleum Council’s Youth Committee for the period 20082011. She was associated with the various activities of Youth Committee for 19th WPC Congress in Madrid & 20th WPC Congress in Doha and was also the convener of the program committee for the 3rd WPCPetrotech Youth forum in New Delhi.

Her interests include music, reading and travelling.

Till date I distinctly recall my first day at work when I arrived at Indian Oil’s Gujarat Refinery for three months of intensive in-plant training. My first posting was as Production Engineer at IOCL’s Panipat Refinery. Ours was probably the first batch of chemical engineers in which lady officers were posted as Production Engineers; I being the panel officer for CDU/VDU. Working as a panel officer was a great learning experience wherein we got a lot of support and encouragement from our seniors and colleagues. Subsequently I was moved to Process Monitoring Group where I looked after Advance Process Control (APC) for process units (CDU/VDU, FCC, OHCU & CRU) as well as automated product blending operations.

I eventually joined IOCL’s Business Development group in late 2005 and have been working for Petrochemical Projects since then. My present area of work primarily includes identification, evaluation and development of new business opportunities in the field of Petrochemicals including Joint Ventures/mergers/acquisitions. In my present role profile, my seniors have entrusted me with enormous responsibility and have shown tremendous faith in me for which am highly grateful.

Association With WPC… World Petroleum Council (WPC) is the world's premier global oil and gas forum whose prime function is to catalyse and facilitate dialogue among stakeholders, both internal and external to the petroleum industry on key technical, social, environmental and management issues in order to contribute towards seeking solutions to those issues. To increase the participation of young people and women in oil and gas issues, WPC established a dedicated Youth Committee drawing young representatives from its member countries.

I was elected as the Indian representative to World Petroleum Council’s Youth Committee for the period 2008-2011. As part of WPC Youth Committee, I have worked towards development of active networking opportunities amongst young people, promoting a realistic image of the petroleum industry amongst the youth together with its challenges and opportunities and creating a collaborative global forum for young people to be heard and new ideas to be championed. Further, I was involved with the organization of various youth centric activities during 19th WPC Congress in Madrid and 20th WPC Congress in Doha like “Youth special Session” which brought together the present and future leaders of petroleum industry and engaged them in a thoughtful discussion on the issues of the Oil & Gas Industry and “Technology Showcase Tours” during which aspiring youth looking to have a career in the industry had a show case of petroleum industry in terms of growth and opportunity.

During WPC’s 20th Congress at Doha, I had the privilege of being a speaker in the Special Session on “Youth in the Energy Future – A View at Different Scenarios for the Future of Energy & Its Impact on the Next generation”. The session panel on one side comprised of three young professionals from petroleum industry, one each from Americas, Europe and Asia and on the other side had industry experts like Mr. Sudhir Vasudeva, CMD ONGC, Jose Sergio Gabrielli, CEO Petrobras and Jakob Thomasen, CEO Maersk Oil. My presentation focussed on why youth today are more inclined towards white collar jobs and are turning away from the petroleum industry as well as what could be done by the industry to attract & retain young talent. Other key discussion points during the session included how energy scenario would evolve in future, what contributions could the youth make towards the energy future and what opportunities would the petroleum industry offer to youth in the changed energy scenario & whether it would be able to attract & retain the right talent.

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held in New Delhi during Nov 2010 on the sideline of Petrotech-2010. WPC youth forum was first of its kind event hosted by India and a unique initiative taken to provide a highly interactive platform to International youth. Forum content and structure was developed & executed by a program committee comprising exclusively of young professionals from oil & gas companies.

Highlights of the youth forum included innovative competitions like “Mind Odyssey” - seeking one gem of an innovative idea that has the potential to revolutionize the energy industry; and “Bizethics” – high on ethics event to present one’s comprehension of how a company can balance its social, ethical, environmental & profit making concerns.

My Inspiration…

My family has always been and will always be my strength & source of inspiration in whatever I do and achieve.

Message For The Young…

There are a lot of myths surrounding the Petroleum industry today. However, we,

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Women in WIPS Ms. Rachel Mathew, CIAM, Mktg. HO, IndianOil has been reelected as President, Apex, of Women in Public Sector (WIPS), and Ms. Nishi Khurana, DGM (HR) Refineries HQ, IndianOil has been voted President of its Northern chapter, Both are recognised for their efforts to strengthen the WIPS Forum. Rachel was the first President elected from IndianOil in the 20 years existence of the forum. At the initiative of Ms. Mathew and her team, the WIPS forum introduced the category of Mini Ratna for the Best Enterprise Awards to the existing categories of Maharatna and Navratna companies.

It is also goes to her credit that new awards recognising the Best Woman Employee Award in the Officer and Non-officer categories have been presented for the first time during the last year. It is the strength of the WIPS forum under her leadership that SCOPE was convinced to introduce the award for Best Woman Manager.

Congratulations! (Source: IndianOil News) the industry professionals can assure that it is a great industry to work for and offers tremendous opportunities to young professionals for learning, growth & ca-

Rachel Mathew

Nishi Khurana

reer advancement. Young people should join the industry in large numbers & contribute towards nation building!

Petrotech Activities R&D Conclave-VI “Emerging Technologies & Future R&D Directions”

along with firm recommendations regarding future R&D directions emerging out of the Conclave, which shall then be sent to all the participants.

Delivering his Valedictory address, Mr. L.N. Gupta, touched upon the low R&D spent by Indian Oil and Gas PSUs. He mentioned that 15 R&D Institutions belonging to PSUs are spending about Rs 280 Crore in Refining and about Rs 425 Crore in Upstream R&D, which together becomes only 0.1% of the PAT of these PSUs. He gave the some of the following suggestions which Indian PSU R&D organizations need to pursue:

Dr B Basu, ED (R&D) IOCL and Mr Ashok Anand DG Petrotech

R&D resulting in break through innovations should be the thrust area. To facilitate this, Sectoral innovation Councils have being constituted under National Innovation Council plan.

Petrotech in collaboration with IOCL R&D organized 6th R&D Conclave on the theme” “Emerging Technologies and Future R&D Directions” on 6th & 7th January 2012 at Hotel Cidade de Goa. Besides the talks by the Speakers, 3 discussion forums were included where eminent panelists discussed the user industry’s perspective and issues and challenges faced by the Hydrocarbon Industry.

The Conclave was attended by 127 delegates from various oil & gas companies from India and abroad.

Mr. Ashok Anand, Director General, Petrotech welcomed the august gathering and Dr B Basu, ED (LT), IOCL recapitulated the recommendations of earlier two conclaves and highlighted some of the actions taken in Indian Oil Corporation Ltd. Mr. Sudhir Vasudeva, CMD ONGC and Chairman Petrotech though could not attend in person but he was so thoughtful in patronizing the Conclave and inaugurated the same through his video message. In his inaugural address he brought out following issues:

A view of Participants

There is a need to formalize guidelines related to R&D expenditure and need to forge synergy among three stakeholders i.e. R&D, Industry and end user.

National Workshop on “Health, Safety and Environment-Mission 2020

• Lower R&D spend by Indian companies • Need for synergistic collaboration among Operators, Academia and Service providers.

• Complexities of Shale gas exploitation and need for enhanced oil recovery technologies including Nano & Microbial based and CSP methodologies • Emphasized to look for radical technological directions from unrelated domains • Technology to have direct connect with the business.

Petrotech in collaboration with ONGC organized a National Workshop on HSE-Mission 2020 on 23rd & 24th February 2012 at Hotel Le Meridien Bangalore. Total 180 participants from major oil & gas companies like ONGC, IOCL, OIL, HPCL, BPCL, Cairn Energy, Schlumberger, Aban Lloyd attended the workshop. 26 eminent speakers from hydrocarbon industry and Govt of India delivered lectures and discussed case studies on important topics of Health, Safety and Environment.

Valedictory Session

Mr Ashok Anand, Director General Petrotech welcomed the august gathering and thanked ONGC for agreeing to be associated since last 5 consecutive years for organizing HSE Workshop in association with Petrotech. He also thanked Oil India Ltd for supporting the event and all the participants from various organizations.

Mr. L. N. Gupta, JS (R), MoPNG was the Chief Guest of the Valedictory Session. The session started with Dr R.K. Malhotra, Director (R&D), IOCL giving a summary of the Conclave and deliberations held during the 2-days program. While summarizing, he mentioned that in order to consolidated the Conclave Recommendations, views of all the speakers/chairpersons and delegates shall be sought, so that a comprehensive report can be prepared

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Petrotech Activities 1. HSE Best Practices in 2020 – Lessons to Learn 2. Redefining HSE Goals and Strategies 3. Light at the end of Tunnel - Asset & Pipeline Integrity 4. Reforms in Oil Spill Contingency Planning 5. Integrated Fire Fighting facilities / Blowout 6. Future Tense – Managing Occupational Health

23rd Governing Council & 9th Annual General Body Meeting of Petrotech

Mr Anil Johari, ED-Asset Manager ONGC inaugurating workshop

23rd Governing Council and 9th Annual general Body Meeting of Petrotech was held on 7th march 2012 at Hotel Le Meridien, New Delhi. The Chairman and Members of Governing Committee reviewed the progress on the issues discussed during the last meeting and also discussed

and development in HSE. He emphasized on 3 points (i) identification (ii) implementation & (iii) improvement in the safety management system.

Mr Anoop Kumar, ED-Chief HSE ONGC complimented Petrotech for taking initiatives and organizing regular programme on HSE every year. He not only emphasized to develop an attitude relating to safety culture but also need to develop skills in operation and safety which is like body & soul.

Mr Hirak Dutta ED, OISD in his special address listed out the major global accidents which have happened together with the reasons as to why do such incidents take place. He emphasized to adopt a proactive approach of safety management instead of event based approach

the future course of action to be taken by Petrotech for its continuous progress. During the above meeting Mr. Sudhir Vasudeva, Chairman Petrotech and CMD ONGC has launched the newly developed website of Petrotech.

Mr Anoop Kumar ED-Chief (HSE) ONGC addressing during inaugural session

Mr Sudhir Vasudeva, Chairman Petrotech launchingof new Website of Petrotech

ensuing safe design of the installation to overcome the challenges being faced by hydrocarbon sector.

The “Take Aways” Meeting of Petrotech 2010 was followed by the GC & AGM of Petrotech in which Mr A Kumaria, DGM, ONGC made presentation high lighting 08 important Take Aways from PETROTECH 2010’.

Mr Anil Johari, ED-Asset Manager ONGC Ahmedabad expressed his proud privilege to inaugurate the National Workshop on HSE-Mission 2020. He also expressed his concern to meet zero accidents by way of attaining a culture of complexed recipe of Health, Safety & Environment. He also expressed his great satisfaction about the topics being discussed in the two days workshop. The topics covered during 2 days workshop were:

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L to R- Mr Naresh Kumar, Mr R S Butola, Mr Sudhir Vasudeva and Mr Ashok Anand

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4th Annual Convention of Petrotech Chapter at ISM Dhanbad While disseminating the knowledge, one of the objectives of Petrotech Society is to bring Academia-Industry closer on one platform by holding regular interactive ses-

Petrotech Activities sions between academicians and industry experts. To achieve this objective, Petrotech has opened its chapters at MIT Pune, ISM Dhanbad, RGIPT Rae Bareli, Osmania University, UPES Dehradun, IIT Madras, PDPU Gandhi Nagar and Delhi University/NCR. The faculty and stu-

Central Coalfields Ltd graced the occasion as Guest of Honor. Mr Nag appreciated Petrotech’s effort to bring academia-industry closer and he emphasized on Energy Security in Hydrocarbon Sector. Mr Sunil Kumar Bernwal, Dy Commissioner Dhanbad formally inaugurated the Convention. During his address he mentioned Energy Security is the concern of every citizen and anything happens with Hydrocarbon Industry being faced by every person of the country. There are resources in different parts of the country we need to put efforts economically feasible technology to exploit it.

During this event, based on the activities held by the Chapters during the year, one of the Chapters is selected and announced as the ‘Best Chapter’ of the year. Based on the evaluation of the activity reports received from all the Chapter, Pandit Deen Dayal Petroleum University, Gandhi Nagar was announced as the Best Chapter of the year 2011-12 and University of Petroleum & Energy Studies stood second.

Mr TK Nag Director (Tech) CCL lighting the lamp during the inaugural session of the convention

dents in these Chapters have come together and made a forum where they organize regular events/meets for better learning and advanced research in the field of Petroleum Engineering.

Petrotech has been regularly organizing Annual Convention of these Chapters at Institute/University campus of one of its Chapters. This year the 4th Annual Convention of Petrotech chapters was organized on 12th March 2012 at ISM Dhanbad where two faculty and ten students from each chapter participated in the Convention. The Convention was synchronized with National Symposium of ISM Dhanbad on the topic “Petroleum Industry: the Way Ahead.

The Chapters were also asked to make presentations on “Hydrocarbon & Beyond: Changing Landscape” which is the theme of ensuing PETROTECH 2012. Presentations were of 15 minutes duration and were made by two students of each Chapter on the above theme. These presentations were judged by Dr C N Ghosh from CSIR and Mr P T Rao from ONGC Rajamundary. ISM Dhanbad was declared the winner of Best Presentation Award and RGIPT Rae Bareli stood runner up.

It was decided at the end of the Convention that the Next Petrotech Annual Convention will be hosted by Pandit Deen Dayal Petroleum University, Gandhi Nagar.

Executive Committee Meeting

Prof A K Pathak HOD Petroleum Engineering ISM Dhanbad welcomed the August gathering. Prof S Laik, Chairman-cum-Convener PENS 2012 apprised about two days programme. Prof D C Panigrahi, Director, ISM Dhanbad during his address brought out certain important topics like how to enhance oil recovery and to get prepared to answer the queries of common man of today and tomorrow. Mr T K Nag Director (Tech)

23rd Executive Committee meeting of Petrotech was held on 14th February 2012 at Conference Hall of NRL, Tolstoy House, New Delhi. Chairman and Members of Executive Committee reviewed the progress on the issues discussed during the last meeting and also discussed the future course of action to be taken by Petrotech for its continuous progress. Members also discussed the activities of Petrotech during the 10th International Oil & Gas Conference and Exhibition, Petrotech-2012

Petrotech Chapter Annual convention

Mr Naresh Kumar, Chairing EC meeting

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Petrotech Activities

News in Picture

Shri A.K. Purwaha, C&MD, EIL recieving â&#x20AC;&#x153;SCOPE Meritorious Award in Specialized Fields 2010-11", under the category of Best Practices in Human Resource Management, from President of India

SCOPE award for Excellence and Outstanding Contribution to Public Sector Management- Individual Leader II PSE category 2009-10 presented to Shri N.M.Borah, C& MD, OIL by Dr Manmohan Singh, Hon'ble Prime Minister of India at a function in Vigyan Bhawan at New Delhi on 31st January, 2012

L-R: Mr S Dutta, ED IDT, Mr U N Bose Director (T&FS) ONGC, Mr Ashok Anand DG Petrotech and Mr Anand Kumar Director Petrotech

Mr Sudhir Vasudeva, CMD, ONGC receives the Gold Trophy of SCOPE Meritorious Award for Environmental Excellence & Sustainable Development for the year 2010-11, on PSU Day 2012

Mr Anand Kumar, Director, Petrotech delivered Keynote in SYNOD, a TERI Seminar on Sustainability and was one of the panelists.

Mr. Sudhir Vasudeva, CMD ONGC receiving the outstanding PSU of the Year Award from Mr. Kamal Nath, Union Minister for Urban Development & Poverty Alleviation

Mr Anand Kumar Director Petrotech (2nd from right) at TERI seminar on Sustainability

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Industry Kaleidoscope IndianOil launches New High Performance Polypropylene Grades In a significant step aimed at offering superior products to plastic processors, IndianOil has unveiled high performance Polypropylene grades for the Polymer processors in the injection molding sector. The new Polypropylene grades - 1110MAS and 2120MC - were launched today by Mr. R.S.Butola, Chairman, IndianOil, in the IndianOil, in the presence of Mr. presence of Mr. Sudhir Bhalla, Director (HR), Mr. A.M.K. Sinha, Director (Planning & Business Development), Mr. VS Okhde, Director (Pipelines), IndianOil, as well as major customers and business partners in the petrochemicals industry at a high profile event in the Capital today.

The new high performance grades have been developed using cutting edge technology at IndianOil's state-of-theart Product Application & Development Centre (PADC) located at Panipat. The novel 1110MAS grade is designed to provide better attributes such as higher productivity, high stiffness, low warpage and superior gloss. The other new grade, 2120MC, provides superior aesthetics, excellent clarity, energy saving and higher productivity to polymer processors.

India is amongst the fastest growing petrochemicals markets in the world. IndianOil has identified Petrochemicals as a prime driver of future growth.

The Corporation has established world scale mega petrochemicals plants-LAB, PX/PTA and Naphtha Cracker at its Refineries-as well as a world class Product Application & Development Centre. The PADC renders technical services in the areas of customer support, market development & new application development. Today, IndianOil is a major supplier to the key players in the detergent industry, both national and international. Similarly, in PTA business, all major domestic customers are catered to by IndianOil. A robust logistics model has been the key to IndianOil's success story and facilities have been put in place for seamless product dispatches to customers by rail, road and sea. The technology and capacities of the Naphtha Cracker and Polymer units are worldclass, with products ranging from commodity to niche grades. These initiatives are designed to catapult IndianOil among the top three petrochemicals players in Southeast Asia in the long term.

ONGC CAIRN Rajasthan Joint Venture starts oil production in Bhagyam January 19, 2012 ONGC and Cairn (Rajasthan Joint Venture) have commenced production from the Bhagyam Field in Rajasthan. Bhagyam is the second largest of 25 discoveries made so far by Cairn in the Barmer Basin in Block RJ-ON-90/1.

The Bhagyam reservoir and facilities will entail a gradual

and safe ramp up to reach the currently approved plateau rate of 40,000 barrels of oil per day (bopd). The commissioning of Bhagyam is a key milestone towards achieving the target production rate of 175,000 bopd by end FY 2011-12.

The Mangala, Bhagyam and Aishwariya (MBA) fields have gross recoverable oil reserves and resources of approximately one billion barrels. The Rajasthan Joint Venture will contribute more than 20 percent of current domestic crude production when they reach the currently approved plateau rate of 175,000 bopd.

Sudhir Vasudeva, Chairman & Managing Director, ONGC said: "Our joint venture is well placed to further increase production from Rajasthan.

Beginning of oil production from Bhagyam field is a significant step towards further development of the MBA fields. This underlines our continued commitment to the optimal development of the Barmer basin in Rajasthan and determination to create value for the people of Rajasthan as well as the country. " Rahul Dhir, Managing Director and Chief Executive, Cairn India said: "The commencement of production from the Bhagyam field is yet another significant milestone for the Rajasthan Joint Venture.

The commissioning of Bhagyam illustrates how supportive policies are enabling companies to unlock the hydrocarbon potential and create significant value for our Nation.

At this momentous occasion, we would like to thank all our partners, stakeholders and the people of Barmer, for their continuous support. We would like to reiterate our commitment to continue to explore, discover and produce more oil to support our country's growth!"

OVL receives SCOPE award from Honâ&#x20AC;&#x2122;ble Prime Minister of India January 31, 2012 ONGC Videsh Limited (OVL), the overseas arm of ONGC has been conferred with the prestigious "SCOPE Award for Excellence and Outstanding Contribution to the Public Sector Management- Institutional III (Other Profit Making PSE Category- Non Ratna)" 2009-2010.

Sri Sudhir Vasudeva, CMD, ONGC & Chairman, ONGC Group of Companies and Sri D. K. Sarraf MD, OVL received this prestigious award from Hon'ble Prime Minister of India, Dr Manmohan Singh at a glittering awards ceremony held at Vigyan Bhawan, New Delhi on 31st January 2012. The awards ceremony was organized

by Standing Committee of Public Enterprises (SCOPE) under the aegis of Department of Public Enterprise, Ministry of Heavy Industries & Public Enterprises, Government of India.

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Industry Kaleidoscope Schlumberger Expands Portfolio of HighTemperature Reservoir Characterization Services PressureXpress-HT and MDT Forte-HT Deliver Fast Accurate Pressure and Mobility Measurements

BANGKOK, February 7, 2012-Schlumberger today announced the availability of its new PressureXpress-HT* reservoir pressure service and MDT Forte-HT* qualified, rugged, high-temperature formation sampling and pressure system. These two services are the latest hightemperature additions to the Schlumberger reservoir characterization portfolio of services.

For additional information on these technologies visit: www.slb.com/pressurexpress-ht or www.slb.com/mdtforte.

Colfax Fluid Handling Launches Pump EnergyEfficiency Tool

"Providing a full suite of high-pressure, high-temperature (HPHT) evaluation tools is a major engineering focus within Schlumberger. These two tool systems expand our capabilities to deliver reliable downhole fluid analysis, fluid sampling, pressure measurement and interval pressure transient testing," said Catherine MacGregor, president, Schlumberger Wireline. "Our rigorous qualification process includes shock, vibration, temperature and pressure cycling to ensure reliable tool operations at the maximum tool ratings."

Colfax Fluid Handling, a business of Colfax Corp., announced the availability of its new online Energy Savings Calculator for oil and gas industry pump applications.

PressureXpress-HT

For example, in calculating energy savings between pumps in a single pump application, the user provides variable inputs such as total flow, inlet/outlet pressure, viscosity, electricity charge rate, pump type, pump efficiency and pump mechanical input power. Reference charts are provided to assist with data. Once all required fields are completed, the Energy Savings Calculator provides the projected annualized energy cost savings benefit in comparing the chosen pumps.

Rated to 450 degF (232 degC) the PressureXpress-HT tool provides accurate pressure gradients and overall data quality not achievable by conventional high-temperature formation tester tools. The unique dynamically controlled pressure pretest system in the PressureXpress-HT tool enables precise control of volume and drawdown rates. This now makes pressure testing possible in tight formations common in HPHT reservoirs. The tool design also eliminates the need for gauge temperature stabilization, thus significantly improving overall operational efficiency.

In field testing in Thailand and the North Sea, the enhanced pretest system of the PressureXpress-HT tool enabled successful pressure measurements at multiple depths to produce profiles of pressure versus depth and establish accurate reservoir pressure gradients to determine fluid contacts.

MDT Forte-HT

The new MDT Forte-HT system has been designed to provide greater all-around robustness in formation sampling and testing operations up to 400 degF (204 degC). The core of the new MDT Forte-HT platform is a redesigned electronics system, incorporating surfacemounted components on a ruggedized chassis that protects sensitive electronics when operating in harsh high-shock and high-temperature logging conditions.

The MDT Forte-HT also has a new-generation HPHT quartz gauge, high-performance packers for the dual-packer module and advanced sealing technology; all are rated to 400 degF (204 degC). This system includes a hightemperature Quicksilver Probe* focused fluid extraction tool that provides near contamination-free fluid samples,

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which are critical to evaluate gas condensate reservoirs often found at high temperatures. The result is a qualified system that performs reliably and efficiently to minimize risk in even the most challenging operations-remote exploration, deepwater regions, drillpipe conveyance and harsh environments.

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The new Energy Savings Calculator, which can be found at the Colfax Fluid Handling Oil & Gas microsite, allows head-to-head comparisons between centrifugal pumps and rotary positive displacement pumps in both single and multiple pump applications.

Single pump vs. multi-pump and multi-pump systems may also be compared with minimal user inputs required.

Although the Energy Savings Calculator is a passwordprotected, proprietary system that is typically not available to the public, it is available for use on a trial basis through June 2012. Individuals who wish to test it may do so by entering the temporary password Cesc-Demo.

"The Energy Savings Calculator is a useful tool that tells you how much money you could save in energy costs when moving fluids," said Mike Moore, Director, Global Oil & Gas Marketing, Colfax Fluid Handling. "It doesn't favor either technology; it is based on facts that allow the user to see the benefits of one or the other when looking at this critical element of total cost of ownership."

"Energy costs are only going to go up, and it is one of the factors of total cost of ownership which we believe helps show the value of a specific pump type," Moore continued. "We want to help those in the oil and gas industry plan for these costs now."

Siemens Launches Drive Train Savings Estimator The Drive Technologies division of Siemens Industry Inc.

Industry Kaleidoscope has launched its online Energy Savings Estimator, a tool that allows companies using drives, motors, couplings and gearboxes to estimate potential energy savings across their entire drive train.

The online Energy Savings Estimator - which Siemens says is an industry first - requires the end user to submit existing data points about their current system, including parameters such as the drive train's application, its horsepower and motor speeds.

Once the operating profile is entered, the online tool evaluates the potential for energy savings in kWh's, dollars, CO2 emissions, and the return on investment for the recommended solution.

The project includes design upgrades to the mill's existing combination biomass boiler, a new biomass handling system and a new turbine generator.

UOP Opens Pilot Plant Testing Center in India Honeywell's UOP on February 14 announced the opening of a new technology center in India that includes pilot plants for "developing and demonstrating" refining, biofuels and petrochemical-process technologies.

The center also will perform other product and application development for performance materials and technology, including fluorine and nylon technologies.

Honeywell invested US$34 million in the center.

According to the U.S. Department of Energy, the manufacturing sector accounts fro 70 percent of U.S. energy consumption. With energy efficiency initiatives, U.S. manufacturers could reduce energy consumption by as much as 30 percent, according to Siemens.

A report released by Siemens in January said that 31 percent of British energy managers do not think that energy efficiency is being taken seriously by their bosses.

However, 83 percent of directors believe that energy management matters are being paid enough attention, the Siemens Green League report said.

Paper company to Build Major Biodiesel Refinery February 6, 2012 Finnish paper company UPM is to build the world's first industrial-scale plant to turn a wood byproduct into biodiesel.

The Lappeenranta, Finland, biorefinery will produce annually approximately 100,000 tonnes of advanced second generation biodiesel for use in vehicles, UPM says.

Construction of the biorefinery will begin in the summer of 2012 and be completed in 2014. UPM's total investment will amount to approximately ¨150 million ($197 million).

UPM said in a statement that it saw profit in the biofuels business, calling the Lappeenranta project "the first step" in a plan to become a significant producer of advanced second generation biofuels.

UPM has plans to build another biorefinery in either Rauma, Finland, or Strasbourg, France. This biorefinery would also use wood as a raw material but use different technology to that of the Lappeenranta facility.

Earlier this year, Verso Paper Corp. completed a $45 million renewable energy project at its pulp and paper mill in Quinnesec, Mich.

ªThis new facility will allow Honeywell to put its vast resources to work in collaboration with some of the brightest engineering minds in India,º said Rajeev Gautam, president and CEO of Honeywell's UOP. India's minister of petroleum and natural gas, Jaipal Reddy, attended the center's opening ceremony.

UOP Launches New Natural Gas and Hydrogen Business Unit Illinois-based UOP LLC has established a new business unit dedicated to natural gas processing solutions and hydrogen.

The new unit will increase UOP's focus on developing technology, equipment and adsorbents as well as the design and execution of projects for global natural gas and hydrogen consumers, according to a January 4 announcement.

Natural gas consumption is expected to reach 160 trillion cubic feet by 2035, and hydrogen is a critical resource used in refining-hydroprocessing technologies for transportation fuels and petrochemicals, according to UOP, a Honeywell company.

Rajeev Gautam, president and CEO of UOP, commented: ªUOP has been working with the natural gas industry for more than 50 years, providing a range of gas-purification technologies and products. This new dedicated business unit will deepen our commitment and allow us to better serve our existing natural gas and hydrogen customers as well as identify new opportunities to help address the growing global demand.º Rebecca Liebert has been named vice president and general manager for the new natural gas and hydrogen unit and will report to Gautam. Liebert joins UOP from Honeywell Electronic Materials (HEM), where she served as vice president and general manager for the global supplier of critical materials to the electronics industry including semiconductors, photovoltaics and lightemitting diodes (LED) that enable customers to develop innovative technologies and overcome manufacturing JoP, January-March 2012

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Industry Kaleidoscope challenges, according to the announcement.

Honeywell UOP's gas-processing technologies focus on the removal of contaminants and liquids recovery from natural gas streams in onshore natural gas treating, liquid natural gas pretreatment, offshore applications and synthesis-gas purification.

UOP also offers technology and equipment for the production and management of hydrogen in a range of applications, including refining facilities, steam reformers and ethylene plants.

In November 2011, UOP expanded its natural gastreatment portfolio to include supersonic gas-separation technology for the removal of water and heavy hydrocarbons through an exclusive marketing alliance with the Netherlands-based Twister B.V. The company also recently announced that MODEC, Inc. commissioned UOP's "Separex" membrane-system adsorbents to remove carbon dioxide and water from 5 million standard cubic meters of natural gas per day on a floating production, storage and offloading (FPSO) vessel near the Lula oil field off the coast of Brazil.

IndianOil enhances catalyst research in colaboration with the AG technology, Germany HEIDELBERG, Germany [Wednesday, February 15, 2012] - the high throughput experimentation company announces that IndianOil has decided to implement the's parallel reactor technology to enhance its R&D efficiency in the field of oil refining.

The will supply an X4500 high throughput catalyst testing system for hydroprocessing applications to the IndianOil R&D Centre in Faridabad, India.

"We are pleased that IndianOil has decided to use the's state-of-the-art high throughput technology and are looking forward to developing a positive and longlasting relationship. This is of strategic importance to us and increases our exposure to India's fast-growing R&D market," says Dirk Demuth, CEO at the.

The's X4500 16-fold parallel reactor system is optimized for the high throughput testing of hydroprocessing catalysts under demanding industrial conditions.

Applicable feedstocks range from middle distillates to heavy vacuum gas oil. the's robust and reliable 5th generation technology allows small-scale catalyst testing over extended periods of time whilst maintaining excellent data quality comparable to pilot plant data.

Furthermore, it features a sophisticated analytical suite for real-time full product analysis.

About Indian Oil Corporation Ltd.

IndianOil is India's flagship national oil company with business interests straddling the entire hydrocarbon value chain- from refining, pipeline transportation and marketing

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of petroleum products to exploration & production of crude oil & gas, marketing of natural gas and petrochemicals.

It is the leading Indian corporate in the Fortune 'Global 500' listing, ranked at the 98th position in the year 2011.

With over 34,000-strong workforce, IndianOil has been helping to meet India's energy demands for over half a century. With a corporate vision to be the Energy of India, IndianOil closed the year 2010-11 with a sales turnover of Rs. 3,28,744 crore ($ 72,125 million) and profits of Rs. 7,445 crore ($ 1,633 million).

The R&D Centre continues to provide significant support to the IndianOil Group refineries in product quality improvement, evaluation of catalysts and additives, health assessment of catalysts, material failure analysis, troubleshooting and in improving overall efficiency of operations. It conducts pioneering work in lubricants formulation, refinery processes, pipeline transportation and alternative fuels, and is also the nodal agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel economy in the country. The Centre holds 212 active patents, with over 100 international patents. Indian Oil Corporation Ltd. www.iocl.com About the AG

The Aktiengesellschaft (AG), a public limited company, is a leading provider of technology solutions and services for customers in the energy, refinery, chemicals and environmental sectors. Thanks to the's products and services, R&D in the area of heterogeneous catalysis has become considerably faster and more productive.

As a reliable partner in the field of high throughput experimentation, the offers comprehensive expertise backed up by complementary products and services: 1) technology solutions - tailor-made integrated hardware and software systems, installed and ready for use on site at the customer's premises; 2) R&D solutionsimplementation of research cooperation at the's own premises in Heidelberg. With its high-quality services, the supports its customers in the search for solutions to global challenges such as climate and environmental protection, energy efficiency and mobility. Its close ties with BASF guarantee long-term orientation and stability. the high throughput experimentation company. www. the-company.com

New Zeolite Material May Solve Diesel Shortage Researchers at Sweden's Stockholm University, working with a team from the Polytechnic University of Valencia in Spain, believe they may have modeled how gasoline can be directly converted into diesel using a new zeolite catalyst.

The dieselization of world fuel consumption is engendering a shift toward more and more to diesel at the expense of gasoline. A research article in the journal, Nature Chemistry, was authored by the Swedish and Spanish researchers and highlights a new porous material that evinces unique properties for converting gasoline directly into diesel.

Industry Kaleidoscope The material, an aluminosilicate named ITQ-39, belongs to the zeolite class and has a porous structure that enables sufficiently small molecules to pass through it. On their way through, the molecules may react with other molecules and create a desired product. The case of interest involves gasoline being reacted into diesel.

The material, which was produced by a research team headed by professor Avelino Corma in the Polytechnic University of Valencia, has proven to be an excellent catalytic converter for turning gasoline into diesel. This is a process that has become ever more important with the marked growth in the demand for diesel in recent years.

The new material has channels of varying size and shape in different directions. These variously shaped channels entail that a molecule that is transported inside the material can be limited in different ways, depending on the direction it travels.

ITQ-39 is the most complex zeolite material ever discovered. Its structure was determined by a research team at Stockholm University headed by professor Xiaodong Zou, with the help of electron crystallography. On an electron microscope, extremely small crystals can be studied, in this case down to a couple of nanometers.

HMEL commissions $4 bn Bathinda oil refinery PTI March 29, 2012 HPCL-Mittal Energy Ltd, a joint venture of state-owned Hindustan Petroleum and steel czar Lakshmi Mittal, on Thursday announced commissioning of $4 billion refinery at Bathinda in Punjab.

The 9 million tons a year (180,000 barrels per day) Guru Gobind Singh Refinery at Phullokari, Bathinda, has become fully operational and started commercial production of fuel,.

HPCL and Mittal Energy Investment Pte Ltd, Singapore - a Lakshmi N Mittal Group company, hold 49 per cent stake each in HEML while the remaining 2 per cent interest is held by financial institutions.

Commenting on the successful commissioning, Mittal said: "The venture has leveraged strengths of each partner and combined best practices from both sectors. To build a world class asset, we brought leading practices in project management, decision making and corporate governance to the table, executing the project on schedule."

Engineers India Limited was the Project Management Consultant. The project was financed by a consortium of Indian banks led by State Bank of India, it said.

Zeolite means `boiling stone' in Greek. Zeolite is a collective name for a group of natural and synthetic minerals with an open crystal structure. They mainly consist of aluminum silicate and comprise some 60 naturally occurring minerals and about a hundred synthetic counterparts.

HMEL Chairman and HPCL Chairman and Managing Director S Roy Choudhury said: "GGSR has come up in record time... This refinery will help in meeting the growing Indian demand and more particularly help in bridging the large demand-supply mismatch of petroleum products faced in the northern region of the country."

Zeolites contain masses of nanometer-sized pores and channels and can be used as catalytic converters, ionexchangers, and adsorbents. Because zeolites have so many pores and intersecting channels, they have a huge internal surface area; one gram of a zeolite can have a surface about the size of half a football field.

The unit had achieved the first liquid sales in December with dispatch of kerosene and the first solid sales last month with sale of petroleum coke.

What makes ITQ-39 such a complicated material is that, unlike most other crystalline material, it is not perfectly ordered. The material studied has a type of chaotic order.

This is what researchers Tom Willhammar, Junliang Sun, Wan Wei, Peter Oleynikov, Daliang Zhang, and Xiaodong Zou at Stockholm University present in the latest issue of the scientific journal Nature Chemistry.

The project is funded by the Swedish Research Council, VINNOVA, the G�ran Gustafsson Foundation, and the Knut and Alice Wallenberg Foundation.

Readers interested in obtaining the article can find it online under ÂŞStructure and catalytic properties of the most complex intergrown zeolite ITQ-39 determined by electron crystallography,Âş Nature Chemistry 2012. Greg Haas

The refinery has high Nelson Complexity Index which will enable maximising value added products even from heavy/ sour crudes. Crude oil to the refinery is ferried through a 1,014-km pipeline from Mundra in Gujarat where the oil is imported from abroad.

The refinery is a zero bottom plant, with a very high Nelson Complexity Index.

Team of researchers develop world's lightest material A team of researchers from UC Irvine, HRL Laboratories and the California Institute of Technology have developed the world's lightest material - with a density of 0.9 mg/cc - about 100 times lighter than Styrofoam. Their findings appear in the 18 November issue of Science.

The new material redefines the limits of lightweight materials because of its unique 'micro-lattice' cellular architecture.

The researchers were able to make a material that consists JoP, January-March 2012

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Industry Kaleidoscope of 99.99 percent air by designing the 0.01 percent solid at the nanometre, micron and millimetre scales. 'The trick is to fabricate a lattice of interconnected hollow tubes with a wall thickness 1,000 times thinner than a human hair,' said lead author Dr Tobias Schaedler of HRL.

HIV/AIDs. For this initiative, IndianOil has chosen Wockhardt Foundation as the implementing partner.CSR is an integral part of IndianOil's corporate philosophy and healthcare is a key thrust area. IndianOil has a commitment to set aside 2% of retained profit for CSR activities.

The material's architecture allows unprecedented mechanical behaviour for a metal, including complete recovery from compression exceeding 50 percent strain and extraordinarily high energy absorption.

IndianOil R&D and LyondellBasell honored with Hart Energy Awards

'Materials actually get stronger as the dimensions are reduced to the nanoscale,' explained UCI mechanical and aerospace engineer Lorenzo Valdevit, UCI's principal investigator on the project. 'Combine this with the possibility of tailoring the architecture of the microlattice and you have a unique cellular material.'

Developed for the Defence Advanced Research Projects Agency, the novel material could be used for battery electrodes and acoustic, vibration or shock energy absorption.

William Carter, manager of the architected materials group at HRL, compared the new material to larger, more familiar edifices: 'Modern buildings, exemplified by the Eiffel Tower or the Golden Gate Bridge, are incredibly light and weight-efficient by virtue of their architecture.

We are revolutionising lightweight materials by bringing this concept to the nano and micro scales.'

Source: University of California Irvine

IndianOil Mobile Rural Healthcare service launched in Uttar Pradesh Shri R.P.N. Singh, Hon'ble Minister of State, Petroleum & Natural Gas and Corporate Affairs launched IndianOil's Mobile Healthcare Scheme, a Corporate Social Responsibility (CSR) initiative of IndianOil, here today in the presence of Mr. Ajay Kumar, MLA, Sewarahi, Mr. Vijay Kumar Dubey, MLA, Khadda, Mr. Rajendra Pandey, District Congress President, Mr. H.S.Bedi, ED(HR), IndianOil Mr. B.S.Canth, GM, UPSO-I and other senior officials. The scheme is designed to provide primary healthcare to underprivileged people in select rural areas through mobile medical units(MMU).

As a part of the service, the 12 MMUs will provide free consultation and medicines to the needy in 141 villages in the three districts of Kushinagar, Mau and Maharjganj. Each MMU will comprise of a qualified Doctor, a pharmacist, a community mobilizer and a driver. The MMUs will be linked to IndianOil's Kisan Seva Kendras(small format petrol/diesel stations).

In one year, the MMUs are expected to cover a targeted population of over 3.5 lakh people. Gradually, this service is envisaged to be expanded to cover other parts of the country.

The programme will also be a platform to create awareness on various issues like Health, Hygiene, Family Planning and

HOUSTON (March 14, 2012) Hart Energy today announced IndianOil R&D (IOC R&D) and LyondellBasell as winners of its Refining & Energy Company of the Year awards. The two companies were recognized today at Hart Energy's World Refining & FUEL conference, "Unconventional Feedstocks & Fuels Mandates: Operating Amid Change" in San Diego. Accepting on behalf of IOC R&D was Dr. R.K. Malhotra, director. The company won for its innovative refining catalyst technology. Representing LyondellBasell was Kevin W. Brown, senior vice president, refining. The integrated company was recognized for emerging from bankruptcy to become a profitable, running organization.

For 25 years, we have identified companies which have excelled in both global energy and refining," said E. Kristine Klavers, senior vice president, Hart Energy.

"This year, IOC R&D and LyondellBasell exemplify the traditions that are embodied in this prestigious award."

The two companies were recognized for their corporate achievement in three primary categories: • Cleaner Environment: Producing cleaner, higherquality gasoline and diesel fuel is among the greatest achievements recognized each year.

• Investment and Corporate Growth: The award recognizes recipients operating with the highest international refining standards and innovative use of resources in diverse environments.

• Vision: Recipients are recognized for innovation, global vision and ability to chart future changes when a response to current conditions does not fully meet rising public demands or yield industry benefits.

Previous winners include: 2010 PetroChina / Saudi Aramco 2009 Chevron Corp. / Pemex 2008 ConocoPhillips / Shell Oil 2007 Chevron Corp. / Marathon Petroleum Co. 2006 Petrobras / Suncor 2005 Reliance Industries / Premcor 2004 Petrobras / Sun / Irving Oil 2003 Royal Dutch/Shell / ConocoPhillips 2002 HOVENSA / Valero Energy Corp.

2001 TotalFinaElf 2000 Frontier Oil Corp.

1999 BP Plc. 1998 Tosco Corp.

1997 DiamondShamrock

Member companies of Petrotech are requested to mail their contributions to this page of JoP at info@petrotechsociety.org

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