The Hindu Business Line : ONGC relinquishes water block in Mahanadi basin

The relinquishment of MN-OSN-97/3 marks the end of oil hunt by ONGC in the shallow water of Mahanadi and Mahanadi-North Eastern coast basins on the coasts of Orissa.

Pratim Ranjan Bose

Kolkata, Dec. 6 The state-run ONGC relinquished a shallow water block (MN-OSN-97/3) in Mahanadi basin as it had run out of time granted under NELP. The company had hit a string of three dry wells in the block.

According to sources, this is the second time ONGC relinquished an offshore exploration acreage in Mahanadi basin during 2007. In February, the company relinquished MN-OSN-200/1 (also in the shallow water), without entering the drilling phase, as the block was not found prospective enough.

Interestingly, the recent relinquishment of MN-OSN-97/3 also marks the end of oil hunt by ONGC in the shallow water of Mahanadi and Mahanadi-North Eastern coast (NEC) basins on the coasts of Orissa.

The oil major is now left with five offshore blocks in the region, of which four are designated as deepwater and ONGC has approached the Directorate-General of Hydrocarbons (DGH) to re-designate the fifth (MN-OSN-2000/2) as a deepwater block. Re-designation will offer an additional one-year time to complete exploration in the block.

The company has already struck gas in the deepwater component of MN-OSN-2000/2 and the deepwater block MN-DWN-98/3. The last one is closer to NEC25 (NEC OSN 97/2) block where Reliance has made eight discoveries so far.

ONGC is, at present, drilling a fresh well in MN-DWN-98/3. Appraisal plan outlining the future course of exploration in MN-OSN-2000/2 will be ready in the next two to three months.

Since the company has only one deepwater rig Discover Seven Seas at its disposal, drilling is delayed in prospective acreages of MN-DWN-2002/1, MN-DWN-2002/12 and NEC-DWN-2002/2.

Bengal region

Meanwhile, rig shortage notwithstanding, ONGC is planning an aggressive drilling campaign in WB-OSN-2000/1 in the Bengal Offshore region, beginning January. The campaign may press three rigs into service together to drill three to four wells in the block latest by April 2008.

ONGC has received a fresh extension in October 2007, to drill a minimum of three wells in six months. Bengal offshore located in The Sunderban delta is considered one of the most difficult regions for oil hunt.

In a change from its previous drilling campaign in the offshore block, ONGC will now drill prospects located at shallower depth.

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