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Richa Mishra

New Delhi, Sept. 7 ONGC has renewed its oil and gas exploratory activity in Cauvery offshore.

The public sector exploration and production company has started drilling in its Cauvery deepwater block, which is close to Reliance Industries Ltd’s successful block in the region.

An official source told Business Line that ONGC started drilling activity in Block CY-DWN-2001/1 in July last week.

“We have planned to drill two deepwater wells in the Block CY-DWN-2001/1 during the current year. One well is currently under drilling,” he said. Studies of the block have indicated that it holds potential, the source said adding that “we are hopeful that a breakthrough in Cauvery deepwaters would be made soon”.

As regards snags being faced by the company while drilling the first well, sources said, “These are snags of a general nature faced during any exploratory drilling activity.” It may take another month to know whether the efforts have resulted in any success or not, he said.

Though ONGC is producing from the Cauvery Basin, it is from the onshore assets The Company is producing .299 mtpa (million tonnes per annum) of oil and 1.16 billion cubic metres of gas.

The block CY-DWN-2001/1 was won by ONGC in the third round of New Exploration Licensing Policy with Oil India Ltd as its consortium partner. ONGC holds 80 per cent stake in the block, with the remaining 20 per cent with OIL. ONGC has offered 25 per cent participating interest to Brazil’s Petrograd in the block.

In September last year, ONGC had taken six months extension to complete the first phase of exploratory activity for oil and gas in the block. However, with the proposed drilling moratorium being considered, the company would get further time to finish the work.

According to the production sharing contract, the total exploration period is to be a minimum of eight years divided into three exploration commitment phases — of four years, two years, and two years.

The Calvary Basin is proven to be petroliferous.

It underlines the South-Eastern coast of India and North-Eastern coast of Sri Lanka.

Several small oil discoveries have been made in the onshore blocks, the first of which began producing in 1986. According to estimates, 26 onshore and three offshore discoveries have been made till date in the Cauvery Basin.

More Stories on : Petroleum | Outlook | Oil & Natural Gas Corporation Ltd

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