The Hindu Business Line : ONGC to start drilling at Bokaro using own platform

HAVING failed to offer turnkey contracts for coal-bed methane (CBM) exploration, development and production, ONGC has decided to start exploratory drilling at Bokaro using its own drilling platform. It is zeroing in on the Jharia block to start commercial production as early as in 2006-07.

Mr A.K. Biswas, General Manager of ONGC, told reporters here on Tuesday, that the company would start drilling exploratory wells at Bokaro CBM block in early January.

The block was secured by ONGC in joint venture with Indian Oil in CBM Policy-I. While ONGC holds operational rights, IOC holds 20 per cent equity stake in the block. The joint venture also holds North Karanpura CBM block.

"While in the process of finalising overall exploratory drilling schemes for CBM in all six blocks under Bengal CBM basin - spread over West Bengal and Jharkhand - by January this year, we have decided to make the first move at Bokaro," Mr. Biswas said.

Focus on Jharia: Meanwhile, the company is focussing on the Jharia block to begin commercial production of CBM by 2006-07.

The company pioneered exploration for CBM in Jharia and Ranigunj blocks in a joint venture with Coal India Ltd way back in 1994 before the Centre had even drafted a CBM policy.

CIL has 10 per cent and 26 per cent equity stake in the respective blocks.

ONGC has already drilled six R & D wells at these two blocks of which four are in Jharia itself and has also produced CBM on pilot basis.

"Since the work has already progressed in the Jharia block, we may also start drilling pilot wells here", he said.

Stating that tenders would soon be invited from the technology providers for drilling purposes, Mr Biswas said the company would lay emphasis on the use of multi-branch drilling technology to suit the requirements of the coal seams available in this part of the country.

The deal is expected to be finalised in January, he added.

Plans for 2005

ONGC will start exploration drilling in four offshore oil and gas blocks in Bengal and Mahanadi basin in 2005.

Drilling will begin in the shallow-water Sunderbans offshore block secured in NELP-II in March to be followed by three deep and shallow-water blocks in the Mahanadi basin beginning June 2005.

The company holds two blocks in the Bengal basin, seven offshore blocks in the Mahanadi basin and two deep-sea oil and gas blocks in the Andamans.

This apart, ONGC holds an equity stake in one block in Mahanadi in a joint venture with OIL.

Stating that ONGC has "aggressive drilling plans" for the Sunderbans offshore block, Mr A.K. Biswas, General Manager, told reporters that the company had recently struck a minor reserve at Contai in the Bengal on-shore block.

"Though a minor reserve, we have found sustained gas flow here, which serves as a lead to find a major reserve," he said. Accordingly, the company is now conducting a seismic survey in a 70 sq. km area in Contai.

Talking about the Andamans, he said the two blocks secured in NELP-IV have a life span of eight years.

"We will take up drilling here at a later date," he added.