Business Daily from THE HINDU group of publications
Friday, Aug 11, 2006
Business Daily from THE HINDU group of publications Friday, Aug 11, 2006 |
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Corporate
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Performance
Pratim Ranjan Bose
Kolkata , Aug. 10 Partial progress notwithstanding, ONGC is apprehensive of making G1-GS15 fields in Krishna Godavari basin fully operational within the targeted timeframe of March 2007. As against the targeted development of five production wells in the deepwater G1 field and four in the shallow water GS15 field, the company has recently brought into operation two shallow water wells producing roughly 50,000 million metric standard cubic metre of natural gas. This is against the projected peak gain of 2.7-mmscmd natural gas from G1-GS15. "Bulk of the development work is still pending at these fields," a senior ONGC official told Business Line , adding that a host of technical issues including lack of weather window and tardy progress by the project contractor, Clough Engineering, had rendered completion of the project within the scheduled time-frame a difficult proposition. "We have brought part of the project into production in July this year and will try to complete the rest as soon as the next working season begins in October-November," the official said. Meanwhile, GAIL is set to gain control over gas produced from the KG basin. ONGC already has a GSA in place with GAIL for selling natural gas at market price. Accordingly, the produce from G1-GS15 should also be awarded to them, company sources said. The pipeline major has already secured control of the 50,000-mmscmd production from the fields.
Rains pose threat
The grim flood situation and news of further rains in the catchment area of Godavari, according to company sources, poses a serious threat to ONGC operations in KG basin. While oil and gas production is still maintained at normal levels, further worsening of the situation is feared, leading to suspension of operations at a number of wells. "Our refinery at Tatipaka is flooded along with a substantial part of the basin," sources said, adding that if the situation further worsens, they may be forced to cap a few wells. KG basin produces 4.2 mmscmd of gas and 600 tonnes of associated oil a day, supplied mainly to GAIL.
Related Stories: More Stories on : Performance | Petroleum | Oil & Natural Gas Corporation Ltd
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