The Hindu Business Line : ‘DGH figures not contrary to companies numbers’

ONGC and Gujarat State Petroleum Corporation (GSPC) said on Monday that the Directorate General of Hydrocarbons (DGH) figures for their Krishna-Godavari Basin hydrocarbon finds is not contrary to what the companies had submitted to the upstream regulator. Both the companies maintained that the recent ‘major’ gas finds of these two prospecting companies do not fall far short of their earlier estimates.

Mr D.K. Pande, Director Exploration, ONGC, told Business Line that the 2.09 trillion cubic feet (TCF) figure filed to DGH is the result of initial drilling of one well, which may rise later. “We still have to drill two or thre e wells to come to a figure. It’s a huge structure, it’s about 600 square kilometres. Future drilling will prove any further higher in-place hydrocarbon reserves,” he added. Besides, the company has always given a range and not a fixed number.

Proven reserves

Similarly, Mr M.Y. Farooqui, General Manager, Planning and Development GSPC, said that the company has reported only 1.38 TCF in proven reserves within PT-12 fault block within the DeenDayal discovery (KG-OSN-2001/3).

The estimates of DGH is based on only one of the wells drilled by the company; the 20 TCF number, which was reported earlier, can be established only after the company drills the entire discovered area of 100 sq km, which is divided into four fault blocks, he added.

The DGH has been pointedly asking the exploration companies to refrain from announcing the discoveries before they can be verified as it has direct impact on the investors. Meanwhile, rigs shortage has led to delay in drilling work for the exploration companies. GSPC has already started further drilling activities in the block using three jack up rigs, the fourth rig, which is semi submersible, has already arrived in the block and drilling activities will start in August.

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