The Hindu Business Line : Setback to ONGC's drilling plan

According to sources, the company is still awaiting extension of the minimum work programme time frame by the Directorate General of Hydrocarbons (DGH). The block is held jointly with IOC (15 per cent).

Having signed the product sharing contract for the NELP-II block (WB-OSN-2000/1) in July 2001, ONGC had failed to complete the due exploration work within the stipulated five-year time frame.

Though a late attempt was made in March 2005 to complete the minimum exploration drilling, the effort ended in a whimper as the company had encountered a series of technical problems leading to damage of the rig and time overrun.

As against a targeted schedule of drilling four exploration wells in two years beginning March 2005, ONGC had suspended the activity after a year with the sole consolation of hitting a dry well. Precious time and money was lost in repairing the rig and which was finally deployed to carry out exploration drilling in Mahanadi basin.

While ONGC officials are hopeful of being granted an extension for carrying out the residual exploration work in Bengal offshore, industry observers pointed out the recent cancellation of ONGC's exploration licence in three blocks in Krishna-Godavari (KG) basin for failure to fulfil the minimum work programme within the stipulated period.

Also considering the fact that the Sunderban region where the block is located offers very limited weather window during the winters, further delay in receiving the due approval from DGH and the Union Ministry of Petroleum and Natural Gas would in effect make it tough for ONGC to complete the drilling activity.

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