The Hindu Business Line : ONGC strikes gas in Mahanadi for third time

Kolkata, Jan. 14 ONGC ended its deepwater drilling campaign in 2007 in a hopeful mood. The Indian energy major has struck gas for the second time in MN-DWN-98/3 deepwater block in Mahanadi basin in the coasts of Orissa. ONGC holds 100 per cent interest in the block.

Though the ‘discovery’ is not considered a major one, the company is hopeful that the streak of finds may lead to a significant discovery in the block sooner or later. This is the third time ONGC struck gas in Mahanadi offshore since December 2006. In December 2006, the company struck gas for the first time in the basin in MN-OSN-2000/2.

According to sources, the recent drilling in the block encountered a “thin sand of 1.5 to 2 metres” at the deeper end of the well at a depth of 3,750 metres from the seabed.

“The discovery may serve as a clue to hit a sizeable reserve in the future,” a source told Business Line.

It may be mentioned that ONGC has already offered 25 per cent participatory interest in the block to Petrobras of Brazil. The stake was offered as per the heads of agreement between the two in September 2006 for swapping 25 participatory interests in three blocks each in India and Brazil. Petrobras is yet to pick up the stake in MN-DWN-98/3.

Meanwhile, ONGC has mobilised two offshore ‘mat rigs’ – Aban-2 and DS Matdrill - for resuming drilling in Bengal offshore (WB-OSN-2000/1) beginning this month. IndianOil holds a participatory stake in the NELP block.

ONGC plans to drill three wells targeting reserves at shallower depths between January and March 2008.

The company had hit a dry well in its last attempt in 2005-06 while targeting deeper objects.