The Hindu Business Line : ONGC may announce gas find in KG basin soon

MR M.S. SRINIVASAN (right), Secretary, Ministry of Petroleum & Natural Gas, and Conference Chairman of Petrotech 2007, with Mr R.S. Sharma, CMD, ONGC, at a press conference in the Capital on Wednesday. — Kamal Narang

New Delhi , Jan. 3

Oil and Natural Gas Corporation (ONGC) today said that it is likely to announce major gas finds in the Krishna-Godavari (KG) basin soon. Mr R.S. Sharma, Chairman and Managing Director, ONGC, told presspersons, "Our drilling and exploratory efforts in the East coast have been highly prospective and we hope to make an announcement on oil and gas find in the next two weeks.''

Initial results `hopeful'

Stating that the initial results have been encouraging, Mr Sharma said, "When we complete testing in the presence of the Directorate-General of Hydrocarbons (DGH) team, and once the upstream regulator has assessed the size, we shall make an announcement."

Though Mr Sharma did not give any details on the gas find, according to market talk, gas reserves could be 21-22 trillion cubic ft (TCF).

ONGC has also been looking at good prospects from the Mahanadi basin. Mr Sharma was speaking at the sidelines of the conference organised here today to give details of the seventh international oil and gas conference and exhibition `Petrotech-2007' from January 15 to 19.

The Petroleum Secretary, Mr M.S. Srinivasan, said ``It is unfair to criticise ONGC for the rate of discoveries. They may shortly come out with results. Successful exploration activities in the country during the past four-five years have given a lot of hope. India is seen as a country with tremendous hydrocarbon potential."

Global interest

Interest in India is evident from the fact that almost 10 oil ministers of oil producing nations (mostly from OPEC countries), will participate in Petrotech-2007, he added. Some of the countries to be represented at the ministerial level include Nigeria, Venezuela, Saudi Arabia, Iran, Qatar, Sudan, and Romania.

He also said in the next five years, India will more than double its gas availability. The natural gas output is expected to rise to 200 million cubic metres a day over the next five years from the current 120 million cubic metres a day.

LNG deal with Australia

Asked about the import of liquefied natural gas (LNG) from Australia, Mr Srinivasan said a 2.5-million tonne LNG deal with Australia will be signed in the next two months. Supplies are expected to begin in 2011 for a 25-year contract. Petronet LNG Ltd will import 2.5 mt of LNG from Chevron-operated Gorgon Project.

OVL activities

Talking about overseas exploration and production activities by ONGC Videsh Ltd (OVL), Mr R.S. Butola, Managing Director, OVL, said Royal Dutch Shell and Total SA of France have envisaged interest in its Nigerian blocks OPL 212 and 209.

The OPL 209 block, acquired by ONGC Mittal Energy Ltd, is close to Shell's Bongo fields and has reserves of 800 million barrels. If the deal goes through,

Total will be partnering the Indian upstream major for the first time, while Shell already partners OVL in Brazil's Campos basin.

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