Oil and Natural Gas Corporation (ONGC) plans to invest $7.7 billion to develop its gas field in the KG Basin, adjoining Reliance's prolific D-6 block, and produce up to 30 million cubic meters aday in five years. It plans to drill eight additional wells in the block to maximize output from the deep-sea field in the Bay of Bengal and has sought approval for the plan from the directorate general of hydrocarbons and the petroleum ministry. "The matter of drilling additional exploratory wells in the block was discussed in a technical committee meeting held on January 17, 2011 and subsequently a communication has been sent to DGH indicating requirement of 8 wells in the block, six in NDA and two in SDA," ONGC said in an email response.
ONGC said it had submitted a proposal for Declaration of Commerciality (DoC) to the DGH in re-Sabha that in-place gas reserves of 3.42 trillion cubic feet (tcf) have been established in the KGDWN-98/2 block, of this, 1.904 tcf is recoverable. The KG-DWN-98/2 block has 10 gas discoveries and Cairn India is already a 10% partner in the block. The company plans to produce 25-30 million standard cubic metres per day of gas from the block by 2016-17. The KG Basin is India's most prolific gas basin and home to some of India's biggest natural gas discoveries in recent years.
Reliance Industries discovered a giant gas field in the region in 2002 and started production from the gas field in 2009/10. Gas output from Reliance's field was ramped up to 60 mmscmd but production subsequently declined. State-run Gujarat State Petroleum Corp has also discovered natural gas in the same region. ONGC has been scouting for partners to develop the block as it does not have experience in developing fields in ultra-deep regions in the sea. spect of Northern Development Area and Southern Development Area in NELP Block KGDWN-98/2. "A total lifecycle cost as per the proposal for DoC is of the order of $ 7.7 billion," ONGC said.
On whether it is divesting a 30% stake in the KG-DWN-98/2 block, an official said: "ONGC had invited global majors to a data room for a possible tie-up in the integrated appraisal and development process of this block and adjoining nomination blocks. ENI and BG have evinced interest and the process of firming up the modalities of partnership is in progress." "It is too early to say when we will cement these partnerships with either BG or ENI, we still have to choose and talks are on, we are keen to forge these associations to gain technical expertise in ultra-deepwater exploration," AK Hazarika, chairman, ONGC told ET.
Last year, Minister of State for Petroleum and Natural Gas Jitin Prasada had informed the Lok Sabha that in-place gas reserves of 3.42 trillion cubic feet (tcf) have been established in the KGDWN-98/2 block, of this, 1.904 tcf is recoverable. The KG-DWN-98/2 block has 10 gas discoveries and Cairn India is already a 10% partner in the block. The company plans to produce 25-30 million standard cubic metres per day of gas from the block by 2016-17.
Source: Economic Times
__________________________________________________________________________________
Posts
