Oil & Natural Gas Corporation is likely to come out with results of another gas discovery in the Mahanadi basin in about three days.
NEW DELHI: Oil & Natural Gas Corporation (ONGC) is likely to come out with results of another gas discovery in the Mahanadi basin in about three days.
The company has struck gas in the Krishna Godavari basin and is in the process of logging data from the site.
“The results from Mahanadi will be conveyed to the directorate general of hydrocarbons very soon,” said a senior ONGC executive.
Gas has been discovered in MN-OSN-2002/2 after drilling 2,500 metres. The site is 800 metre under water and may contain 3-4 trillion cubic feet natural gas. Reports last week indicated that ONGC made a discovery in block KG-DWN-98/2. Sources said petroleum minister Murli Deora would be going to visit the Krishna Godavari block shortly.
Officials said initial estimates calculated by consultants on the basis of early drilling suggested reserves of about 21-22 trillion cubic feet (TCF) though testing results would be known only later.
“It is too early to make a statement. Drilling is still going on there. Results will be known in 30 days,” director general of hydrocarbons V K Sibal told DNA Money. Any discovery of crude oil or natural gas requires to be validated by his office.
Reliance Industries has already reported finding 11.3 trillion cubic feet of gas in its block DWN 98/3 in the same area.
On the discovery, ONGC chairman and managing director R S Sharma said, “No intimation has been given to the government. We will follow the due process. At this stage, we are not able to say anything,” he said. Analysts said such discoveries reduce the ‘risk premium’ associated with ONGC’s growth plans. The risk includes the subsidy sharing burden and no significant discovery in the recent past. ONGC’s annual reserve accretion to production ratio has been 1 (which is also the global norm), mainly achieved through its investment in existing fields.
But this discovery would be a landmark in ONGC’s exploration activity, analysts said.
ONGC, Oil India Ltd (OIL) and private/joint venture companies have made 12 new oil and gas discoveries in 2006-07, said a government statement.
ONGC has made three gas discoveries Deloli in Cambay basin, Adichapuram in Cauvery onland and KG-DW-S-1 in KG deepwater. OIL has made two oil/gas discoveries at Baghjan and Shanti in Tinsukia district of Assam.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}