The Hindu Business Line : ONGC to improve reserve projections in KG basin

Revised plans
The appraisal plan will involve six or seven new finds in the block.
It may finally weaken fears about ONGC’s reported success in KG basin.
Petrobras of Brazil, Norsk Hydro of Norway have already picked up 15 per cent and 10 per cent interests respectively in the block.

Pratim Ranjan Bose

Kolkata, Sept. 12 ONGC is set to improve the reserve projections of its prolific KG-DW-98/2 block in Krishna-Godavari basin than the Directorate General of Hydrocarbon previously approved 2.09 trillion cubic ft (tcf). The DGH figures were based on UD-1 gas discovery.

The increased reserve projections will be submitted in the appraisal plan, currently under preparation by WesternGeco. The plan is expected to be submitted end of this month.

“The appraisal plan will involve six or seven new finds in the block excluding the UD-1 discovery. Naturally the total reserve size in the block is set for an upward revision,” a company source told Business Line denying to divulge the probable reserve accretion in the block.

The source, however, did not clarify whether the new finds are located in the same structure where the company struck the UD-1 major gas find. “We are looking forward to submit the report end of this month,” he added.

The ONGC Chairman, Mr R.S. Sharma, previously hinted that the appraisal plan may finally weaken apprehensions about the ONGC’s reported success in KG basin.

“The figures will be in public domain shortly and will speak for themselves on the prospect of the field,” he told Business Line recently. “Our foreign partners are extremely enthusiastic about the prospect of the block. I presume that their interests are not based on thin air,” Mr Sharma added.

It may be mentioned that soon after its UD-1 discovery in 2006, ONGC’s Director Exploration, Mr D.K. Pande, said that the large structures identified in the block have a potential reserve of 2-14 tcf gas reserve.

The claim was subsequently punctured by the figures released by DGH.

Petrobras of Brazil and Norsk Hydro of Norway have already picked up 15 per cent and 10 per cent interests respectively in the block.

Both the companies have left provisions open for increasing their interests in the block.