Wants DG Hydrocarbon to review decision on ultra deep water well

Richa Mishra

Well of hope

ONGC wants

DGH to consider two other finds as discoveries

DGH has

accepted three of ONGC's six discoveries last year

KG finds

expected to produce 20-25 mmscmd

New DelhiMarch 23With the Directorate-General of Hydrocarbons (DGH) accepting ONGC's biggest gas discovery in Krishna Godavari Basin off the Andhra Coast, the oil exploration major has requested the regulator to review its decision in case of ultra deep water well (UD1 well), which was discounted earlier.

ONGC has now expressed its willingness to consider conventional testing method in one of the appraisal wells in order to satisfy the regulator.

The DGH had disallowed ONGC's find in UD1 well in KG-DW-98/2 block on the grounds that conventional testing methods were not adopted by the company, and that the well was abandoned.

Subsequently, the DGH had said that if ONGC makes a re-entry into the well and carries out the required tests, discovery/potential commerciality could be accepted.

ONGC has written to the upstream technical regulator stating that "in order to maintain a congenial atmosphere in the upstream industry," it would consider conventional testing in one of the appraisal wells.

The company has also said that it would like to make a detailed presentation on UD1 finds as well as two other hydrocarbon finds in the same block.

Besides, ONGC has requested the DGH to consider two other finds in the same block as discoveries.

ONGC holds 90 per cent interest in KG-DWN-98/2 block, with rest being held by Cairn.

Of the six discoveries made last year by ONGC, the DGH has accepted three.

The DGH had disallowed UD1 discovery on the grounds that the discovery notification was based on MDT methodology and subsequently the well was abandoned by ONGC.

Countering this, ONGC officials told

Business Line

that the said methodology was well accepted in Gulf of Mexico deepwater; besides, at the management committee meeting of the block, the DGH had informed that MDT results can be considered for declaring a well as a discovery.

Further, the company has argued that the conventional testing was not carried out not because of well complications but because it was not necessary.

On the issue of abandoning the well, the company said that it was done as per industry standard practice with a provision for re-entry.

In UD1, the estimated probable in place hydrocarbon is in the range of 2.09- 14.76 trillion cubic feet (TCF) or 60-400 BCM.

The gas from KG finds of ONGC is expected to flow by 2010-11.

However, with recent discoveries in the KG basin offshore fields - by Reliance Industries, GSPC, and ONGC - it is expected that the overall gas availability in the East Coast would increase.

Reliance plans to produce 80 mmscmd of gas from its KG D6 field off the Andhra coast, while Gujarat State Petroleum Corp would produce 40 mmscmd.

From its KG finds, ONGC is expected to produce 20-25 mmscmd.

Related Stories:
KG gas find: ONGC may come back with appraisal plan

(This article was published in the Business Line print edition dated March 24, 2007)
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