The Hindu Business Line : ONGC to treble tech budget to Rs 2,400 cr

ONGC is now working on a massive overhaul of its exploration technology already in use. Planning to acquire the latest technology available globally, especially for offshore exploration, the company has decided to treble its technology budget from Rs 800 crore to Rs 2,400 crore in 2005-06. This is in addition to the use of the latest technology in development of proven oil fields.

The company will invest Rs 10,861 crore for oil exploration and production this year, which is 56 per cent higher than the Rs 6,852-crore spent last year. Sources said the bulk of the enhanced budget would be spent on acquiring new technology both in exploration and production.

While use of technology reduces the risk of hitting dry wells and increases the strike rate in exploration, ONGC has already decided to develop the proven oil and gas field in G1 block in Krishna-Godavari Basin as India's first digital oil field with remotely monitored and controlled `smart wells'. The block is located 28 km offshore in water depths ranging between 135 m and 500 m.

As regards the use of technology in exploration, sources said the company had already held several rounds of negotiations with various technology providers across the world. As most of the blocks, which have been lined up for exploration, are located offshore, the focus is on offshore technologies.

The company is also reviewing the progress of its various blocks already under exploration and is considering a change in the schedule for exploration in the blocks already earmarked to be taken up in the near future.

Among the blocks under the scanner is Bengal offshore. ONGC has launched exploratory drilling in this shallow water block in March this year. Scheduled to drill four wells, the company has so far drilled up to 3,600 ft in the first well and is yet to reach the targeted depth.

The blocks to be taken up next for exploration are Mahanadi and Saurashtra in shallow waters and Andaman and Nicobar in deep waters.

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