The Hindu Business Line : ONGC gets nod to appraise KG find

Conceptual plan
Two programmes, one pertaining to ultra deepwater, and the other, dealing with deepwater activities in the area, have been submitted.

Richa Mishra

New Delhi, May 1 Oil and Natural Gas Corporation (ONGC) can now go ahead and exploit oil and gas from its successful Krishna-Godavari basin fields, which includes the first successful ultra deepwater (UD1) discovery in the region.

The company has recently got Government nod to conduct appraisal programme in KG-DWN-98/2. ONGC will have to complete the programme by July 2010.

An appraisal programme helps the exploration companies in establishing the commerciality of the discovery. After establishing the commerciality comes the development of the field. Exploration companies after finding hydrocarbons submit an appraisal plan to the management committee of the block. Subsequent to the nod, the companies go in for an appraisal programme.

ONGC, which holds 90 per cent in the block, with Cairn India owning the remaining 10 per cent, proposes to further dilute its stake to 65 per cent. ONGC board has already approved dilution of stake in favour of Brazil’s Petrobras by 15 per cent, Norway’s StatoilHydro 10 per cent to exploit their deepwater expertise.

The company had submitted two programmes, one pertaining to ultra deepwater, and the other, dealing with deepwater activities in the area. In KG-DWN-98/2, which includes the UD1 discovery, the company plans to drill eight wells — six deepwater wells and two ultra deepwater wells.

Mr D.K. Pande, Director Exploration, ONGC, told Business Line that the company has obtained the management committee resolution for going ahead with the appraisal and conceptual plan. The management committee comprises representative of the Directorate General of Hydrocarbon, Petroleum Ministry nominee, and representatives of the contractors.

In December 2006, it had struck gas in UD1 well in its KG block having in place reserve estimates for between two and 14 trillion cubic feet (TCF) of gas. The block is adjacent to Reliance Industries’ prolific KG find.

In the deepwater appraisal and conceptual plan, ONGC had clubbed the development of KG-DWN-98/2 with the discoveries in the adjoining area that it holds as nomination blocks. According to sources, the company has pegged in-place reserves of more than 6.37 TCF and also plans to produce oil from the region.

ONGC’s appraisal plan outlines integrated development of the discoveries in shallow to deepwater of the northern part of the KG-DWN-98/2 block, along with other finds in the adjoining nomination region including G-29 and GS-4.

ONGC had submitted a separate plan for the ultra deepwater find.

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