ONGC, India’s largest public sector oil and gas explorer, plans to produce around 20 million metric standard cubic metres (mmscmd) of gas per day by 2018 and 90,000 barrels of oil per day by 2021 from its Krishna Godavari Basin block KG DWN 98/2 in Kakinada, Andhra Pradesh. Drilling activities are expected to start in a couple of months, a senior company official told Financial Chronicle.
The declaration of commerciality (DoC) for drilling in around 18 wells in the KG DWN 98/2 offshore field has not come in yet from the directorate of hydrcarbons (DGH), the official said. The company was supposed to start drilling in the first half of 2014. Although, the timeline to start production stays the same, plans to start drilling have got delayed slightly, the official said.
“The cost of drilling each deepwater well would be around Rs 150 crore to Rs 200 crore and all put together, it would cost something between Rs 18,500 crore to Rs 20,000 crore,” the official said.
The company had earlier told this paper that it has plans to initiate production with around 30 mmscmd from the 18 wells. ONGC has identified some 87 billion cubic metres of resources in the block.
Recently, the company got into a legal tangle over the misappropriation of gas from the same block by Reliance Industries (RIL), India’s largest private oil explorer. RIL’s KG D6 block shares the boundary with ONGC’s KG DWN 98/2. The matter is sub judice, as ONGC has sought legal help from the Delhi high court.
The two firms have also signed an agreement to share infrastructure for the development of ONGC’s block. TK Sengupta, director offshore of ONGC, said after the development of the first phase, which would be in the water depth of 600 meters to 2,400 meters, the second phase would start in ultra-deep water depths of 2,400 meters to 3,200 meters.
“We would require floating production systems (FPS) to carry out these developments starting with drilling to production. There are only two such producing blocks in the world in the Gulf of Mexico, operated by Shell and Chinook,” said Sengupta.
“The activity is going to be very challenging, but once complete, it will add around 20 mmscmd of gas capacity and around 90,000 barrels of oil to India’s production capacity.
Source: FC
The declaration of commerciality (DoC) for drilling in around 18 wells in the KG DWN 98/2 offshore field has not come in yet from the directorate of hydrcarbons (DGH), the official said. The company was supposed to start drilling in the first half of 2014. Although, the timeline to start production stays the same, plans to start drilling have got delayed slightly, the official said.
“The cost of drilling each deepwater well would be around Rs 150 crore to Rs 200 crore and all put together, it would cost something between Rs 18,500 crore to Rs 20,000 crore,” the official said.
The company had earlier told this paper that it has plans to initiate production with around 30 mmscmd from the 18 wells. ONGC has identified some 87 billion cubic metres of resources in the block.
Recently, the company got into a legal tangle over the misappropriation of gas from the same block by Reliance Industries (RIL), India’s largest private oil explorer. RIL’s KG D6 block shares the boundary with ONGC’s KG DWN 98/2. The matter is sub judice, as ONGC has sought legal help from the Delhi high court.
The two firms have also signed an agreement to share infrastructure for the development of ONGC’s block. TK Sengupta, director offshore of ONGC, said after the development of the first phase, which would be in the water depth of 600 meters to 2,400 meters, the second phase would start in ultra-deep water depths of 2,400 meters to 3,200 meters.
“We would require floating production systems (FPS) to carry out these developments starting with drilling to production. There are only two such producing blocks in the world in the Gulf of Mexico, operated by Shell and Chinook,” said Sengupta.
“The activity is going to be very challenging, but once complete, it will add around 20 mmscmd of gas capacity and around 90,000 barrels of oil to India’s production capacity.
Source: FC
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