The Hindu Business Line : ONGC, DGH reach accord on hydrocarbon discoveries

Discovery claims The DGH claimed that the E&P major could not make a single discovery during the last fiscal, despite investing $415.58 million (Rs 1,822.64 crore) on drilling in nine wells. It also claimed that in the last four years, ONGC had made only 20 significant discoveries compared to 32 by private sector and joint ventures.

Kolkata , June 24

ONGC and the Director General of Hydrocarbons (DGH) have finally worked out a truce on the `yardstick of discoveries', as preferred by ONGC.

According to sources, the company has now agreed to report its performance in hydrocarbon exploration for NELP blocks as per the prescribed norms of DGH.

Pre-NELP blocks

However, for pre-NELP blocks, ONGC would prefer to report `discoveries' as per the previously followed formula, which was reportedly in line with the methodology followed globally. The company has a substantial number of pre-NELP blocks including five in Krishna-Godavari (KG) basin alone

In late 2005, ONGC submitted a report to the Union Ministry of Petroleum and Natural Gas, contesting DGH's remarks on the company's alleged lacklustre performance on exploration front.

The DGH claimed that the E&P major could not make a single discovery during the last fiscal, despite investing $415.58 million (Rs 1,822.64 crore) on drilling in nine wells.

It also claimed that in the last four years, ONGC had made only 20 significant discoveries compared to 32 by private sector and joint ventures.

Though not denying the failure in striking bigger reserves, ONGC felt that its performance was unduly criticised.

ONGC stance

According to the company, unlike the DGH formula, which allows every find to be described as a discovery, ONGC used to differentiate between strikes, finds and discoveries.

"We announced a discovery only when we assessed its production potential as commercially viable," a company official told Business Line adding that during the last five years, ONGC had struck hydrocarbon reserves in over 140 exploration wells.

Of the total, 115 were announced as `discoveries' and 60 per cent of the discoveries were brought into production. The rest were under various stages of development.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Bangalore awaits ITC Gardenia

Private sector funds to be tapped for infrastructure: PM

ONGC, DGH reach accord on hydrocarbon discoveries

Kolkata chaos

AI Express gets sales tax waiver on ATF

MNCs driving into Indian commercial vehicles space

NMDC disinvestment opposed

Learning the local ropes

Cashew export body calls for uniform food safety policy

Seminar on petroleum adulteration