The Hindu Business Line : Non-availability of rigs may hit ONGC's oil hunt

Kolkata March 16 Non-availability of ultra-deepwater rigs may impact ONGC's oil hunt in Krishna-Godavari and Mahanadi basins. The company has recently struck gas in deepwaters of both the basins.

Ultra-deepwater rigs, also known as floaters, can drill in water depths of over 1,000 metres. There is an acute shortage of such rigs worldwide, and apart from spiralling of charter rates most of the rigs are overbooked.

While drilling is due in at least eight offshore blocks — three in Mahanadi basin, three blocks in KG basin, one block each in the Andamans and one in the West coast — beginning next month the company will be left with only one ultra-deepwater rig — Discover Seven Seas (DSS) — which can manage a maximum depth of 1,800 metres.

The tenure of the chartering period of Belford Dolphin — which can drill in much deeper water-depths of 3,000 metres - has ended this month. According to sources, efforts to extend the contract tenure did not succeed either.

Considering the fact that the water depths vary from shallow to ultra-deep in six East coast blocks and the recent major find in KG basin (KG-DWN-98/2 block) is at a water depth of 2,800 metres, sources say that non-availability of a suitable rig may pose a major challenge to the company for timely completion of its drilling programme.

When contacted, Mr U.N. Bose, Director (Technical and Field Services), however, allayed such fears. "We have initiated the process of chartering a new ultra-deep water rig, which can drill in deeper water depths. Till then drilling will continue with DSS and company owned floaters Sagar Vijay (600 metres) and Sagar Bhushan (300 metres) at shallower depths," he said.

Mr Bose, however, admitted that considering the global crisis of ultra-deepwater rigs, it might not be an easy job to locate an immediate replacement for Dolphin.

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