Business Daily from THE HINDU group of publications
Monday, Nov 03, 2008
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Monday, Nov 03, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
|
|
|
|
|
Corporate
-
Outlook Industry & Economy - Petroleum
The work on the second well has already started After completing the work commitment in Cauvery Block, the drilling ship would be shifted to the Krishna Godavari offshore fields Richa Mishra New Delhi, Nov. 2 ONGC has not made a very positive beginning in its Cauvery deepwater block as it has hit a dry well in its first attempt. However, undeterred, it plans to drill two more wells in the block this year. Official sources told Business Line, the first well drilled in the Block CY-DWN-2001/1 has not shown any result and has been termed a dry well. The work on the second well has already started. Depending on the results of the second well, the company will decide on the area to be carved out for the third, sources said. The programme required three exploration wells to be drilled in the first phase, with options to extend into a second and third exploration phase on success. After completing the work commitment in Cauvery Block, the drilling ship would be shifted to the company’s Krishna Godavari offshore fields. Hitting a dry spotONGC’s drilling campaign in the region, which is close to Reliance Industries Ltd’s (RIL) successful block, started in July. In fact, even RIL has been able to strike hydrocarbon in only one of the three wells drilled in its Cauvery asset. The financial implications of hitting a dry well largely depends on the results of the find in the rest of the area, industry analysts say. “If size of the discovery is not very big in the first well, it would not be economically very viable. Further, if two-three dry wells are drilled in the region, then the accumulated area is limited, thus making the success largely dependent on the size of the discovery, which is already made or to be made,” analysts said. Studies of the block have indicated that it holds potential, the source said. Though ONGC is producing from the Cauvery Basin, it is from the onshore assets. The company is producing 0.299 mtpa (million tonnes per annum) of oil and 1.16 billion cubic metres of gas. Partners in armsThe CY-DWN-2001/1 block was originally awarded to ONGC as operator with an 80 per cent equity share, and Oil India Ltd as partner with 20 per cent. A subsequent farm-in agreement between Brazilian state oil company Petrobras and ONGC was announced in October 2007, in which Petrobras acquired a 25 per cent share. ONGC had further diluted its stake by giving 10 per cent stake to Norwegian company Rocksource ASA. The partnership will be made up of ONGC (45 per cent), Oil India (20 per cent), Petrobras (25 per cent) and Rocksource (10 per cent). The mean unrisked resources of the exploration Block are estimated by Rocksource to be approximately 2.9 billion barrels of oil equivalent. ONGC renews drilling in Cauvery offshore ONGC gets 6-month extension to explore in Cauvery basin ONGC renews interest in Cauvery deepwater asset More Stories on : Outlook | Petroleum | Oil & Natural Gas Corporation Ltd
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2008, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
