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Pratim Ranjan Bose

Non-availability of rig hurting deepwater exploration prospects

Kolkata March 29 ONGC may seek a two-year extension of its exploration licence in three blocks in Mahanadi basin and one block in Cauvery basin, citing non-availability of ultra-deepwater rig.

The Mahanadi blocks include MN-OSN-2000/2, where ONGC recently struck gas in the deeper component of shallow waters.

Deepwater prospects in the block could not be explored due to non-availability of suitable rig.

Also known as floaters, ultra-deepwater rigs can drill in water depths beyond 1,000 metres.

"We are planning to seek extension of the exploration licenses in all three blocks in Mahanadi and one block in Cauvery in view of global crisis of suitable rigs," a senior company official told Business Line.

All the blocks were acquired during NELP-I and are nearing the end of the scheduled timeframe.

The company is now in the process of floating tenders for ultra-deepwater rigs and expects to complete chartering within a year.

Water depths vary from shallow to ultra-deep in most of the offshore blocks in the east coast of the country.

E&P companies generally require a range of rigs for successfully hunting for oil and gas in KG and Mahanadi basins.

Following the expiry of contract with Belford Dolphin, ONGC currently does not have any rig to drill in water depths beyond 1,800 metres.

Belford Dolphin could access up to 3,000 metres.

It helped in drilling the UD-1 well in KG-DWN-98/2 block where ONGC had struck gas in December 2006.

The only ultra-deepwater rig now held by the company is the `Discoverer Seven Seas,' capable of drilling in water depths of up to 1,800 metres.

The rig is currently deployed in KG basin.

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