The Hindu Business Line : ONGC may soon resume operations in Sunderbans

ONGC may resume its exploratory drilling activities in Bengal offshore in the Sunderbans - after a gap of six months - this month. The company had suspended operations in the block (WB-OSN-2000/1) after hitting a dry well and a series of technical roadblocks. The block is held jointly by ONGC (85 per cent) and IOC (15 per cent).

ONGC sources said that the drilling schedule would be finalised following re-deployment of the drill-ship Transocean Nordic from KG basin to Bengal offshore. "We are hopeful of resuming operation in this month", a company official said.

As per the minimum work programme, ONGC was scheduled to drill four exploratory wells in the block. In its last attempt, the company had set a two-year time frame beginning March 2005 for completion of the exploratory drilling target at an expense of approximately Rs 500 crore.

However, the programme suffered a set back from the very beginning. Apart from geographical conditions which led to serious differences between the drill-ship and the company about the location of well, there were problems in reaching the targeted depth causing at least six months delay in completion of the first well.

On top of all, the drill ship got one of its leg struck in the muddy seabed. The rig could be freed from the condition after almost two months and in a damaged condition. The incident had not only delayed the drilling schedule of Bengal offshore but also in Mahanadi basin where the rig was supposed to be re-deployed. To make the matter worse, the company lost $74,000 per day as hiring charges.

The incident had forced ONGC to go back to its data room and take a re-look at its drilling strategy in the block. According to a senior company official, in its latest bid, the company would explore possible existence of shallow gas in the field.