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Our Bureau

Geographical conditions posing unforeseen challenge

Kolkata , March 14

Oil and Natural Gas Corporation (ONGC) Ltd is headed for a delay in its exploratory drilling schedule in Bengal Offshore.

The company had previously set a two-year timeframe for drilling four wells (at the cost of Rs 500 crore) beginning March 22, 2005.

As on date the company has completed drilling only the first well, which has proved dry.

Already running at least six months behind schedule in the block, the company recently decided to re-deploy the drilling rig Trans Ocean Nordic from Bengal Offshore to commence drilling operations in MN-OSN- 2002/2 shallow water block in Mahanadi basin.

Environment nod

After receiving due environmental clearance for prospecting oil in two blocks in the basin, ONGC has already drilled the first well at MN-DWN-98/3 offshore blocks in Mahanadi.

Drilling operations in the shallow water block is expected to begin sometime this month and is slated for completion in three months before the monsoon sets in following which the rig will be returned to Bengal Offshore.

Admitting the delay in Bengal Offshore, company sources said that while geographical conditions of the delta were posing an unforeseen challenge before drilling operations, failure in the first well had made ONGC extra cautious in selecting sites for the future wells.

"On the one hand, the rig is reluctant to carry out drilling at our preferred locations due to unsuitable sea-bed conditions, on the other hand we cannot let the rig drill the well at its whims. There are debates over our future drilling strategy as well.

Hydrocarbon reserve

While seismic surveys made us believe that hydrocarbon reserve would be available at deeper depths, there are now some consideration for prospecting oil at shallower depth," an ONGC official said.

More Stories on : Announcements | Petroleum | Oil & Natural Gas Corporation Ltd

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