Business Daily from THE HINDU group of publications
Sunday, Jun 03, 2007
ePaper
Business Daily from THE HINDU group of publications Sunday, Jun 03, 2007 ePaper |
|
|
|
|
|
|
|
Corporate
-
Announcements Web Extras - Petroleum
Richa Mishra
New Delhi June 2 ONGC's attempts to start full production from G-1 and GS-15 fields in the Krishna Godavari basin continue to face hurdles. The company's plans to start production by June this year may get further delayed. Sources said that the production activity in the fields has suffered a setback due to contractual issues. Although the company has started partial production, bulk of the work is pending. The company is now optimistic that it would be able to flow gas from the two fields by next year. This is not the first time that production activity from the fields has been delayed. The initial targeted time frame proposed by the company was March 2007. The sources told Business Line that pending technical work and slow progress by the project contractor, Clough Engineering, have adversely affected progress in the fields. As per earlier plans, ONGC was expecting initial production of one million standard cubic metres per day (MMSCMD) of natural gas, which was to be enhanced to two MMSCMD in April 2007. The peak gain from the two fields was expected to be 9,400 barrels of oil per day (bpd) and gas production of 2.7 MMSCMD. The blocks in question are the first deepwater development project using remotely monitored `smart well' concept at an estimated cost of about Rs 1,263 crore. According to the sources, this is the first time that shallow and deepwater activity is being combined. Though efforts were on to overcome the hiccups, the delay was more on the part of the project contractor, as ONGC has completed its part of the work. Besides, all wells in the fields have been drilled. Against the targeted development of five production wells in the deepwater G-1 field and four in the shallow water GS-15 field, ONGC brought into operation two shallow water wells.
Against the targeted development of five production wells in the deepwater G-1 field and four in the shallow water GS-15 field, ONGC brought into operation two shallow water wells.
According to a GSA in place between ONGC and GAIL (India) Ltd, gas produced from the KG Basin would be taken by the gas transmission and marketing major, which GAIL would sell at a market price.
Related Stories: More Stories on : Announcements | Petroleum | Oil & Natural Gas Corporation Ltd
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
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 © 2007, 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
|