The state run oil and gas explorator ONGC has resumed exploration activity in the KG basin’s ultra deepwater blocks. ONGC had to put on hold its ultra-deepwater exploratory work in the Block KG-DWN-98/2, where it has struck natural gas in deep sea (UD1 well).

The block is located close to Reliance Industries Ltd-operated prolific D6 fields. D K Pande, director (exploration), ONGC, said, “We have started drilling the appraisal well in the block.” An appraisal well is drilled to further signify the quantum of the find. ONGC is using the rig which it has hired from RIL.The public sector exploration major has submitted a proposal to the Directorate-General of Hydrocarbons for declaring the UD1 discovery as commercially viable. After the DGH approves the commercial viability of UD1, ONGC will make a formal field development plan (FDP). The FDP will outline the specifics of producing gas from the find.

According to the earlier estimates, the block has in-place reserves of 3,420 billion cubic feet centred around the UD1 discovery. The block is divided into northern and southern discovery areas. The southern area consists of UD1 discovery in the ultra-deepwater having a water depth of 2,841meters. ONGC plans to develop the two areas in the block separately.

ONGC proposes to invest US $4.05 billion in producing natural gas from UD1 discovery in the southern part of the KG-DWN-98/2 block. ONGC is targeting 2015-16 for gas production from the KG basin.While ONGC has 65 per cent interest in the Block, Cairn India has 10 per cent. Petrobras of Brazil holds 15 per cent and Statoil of Norway the remaining 10 per cent. Petrobras and Statoil have, however, decided to exit the Block.                                                       Business Line

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