Eureka! Big oil find near Ahmedabad

Written by fe Bureau | Ahmedabad | Updated: Oct 27 2014, 08:22am hrs
A significant oil discovery has been made near Ahmedabad in the Cambay basin that, by some estimates, may be the biggest onland find this year.

Delhi-based Jay Polychem (India), a unit of Jay Madhok Group, made the discovery in the very first well it drilled on block CB-ONN-2009/8. The firm has since July last year drilled two wells and discovered huge oil pay zones in both, sources said. The discovery in the well Kharenti-A has been notified to upstream regulator DGH and the government.

Sources said the discovery is huge and similar to oil being produced by ONGC in the neighbouring Padra field as also by GSPC in Ingoli field.

The block is operated by Jay Polychem (India) with 87% interest, while Jay Polychem holds the rest. Cambay basin, which extends from Surat in the south to Sanchor in the north, covers 59,000 sq km with a hydrocarbon resource of over 15 billion barrels. Few dozen discoveries, mostly oil, have been reported in the basin. State-owned ONGC produces oil from most of them and recently Oilex of Australia too found tight oil. Sources said Kharenti-A was drilled to a depth of 858 meters in July last year and encountered significant oil shows of Olpad Formation.

Testing done this month resulted in oil being found in three zones. A gross column of 52 meters was interpreted from log analysis and testing data to be oil bearing, they said. Initial analysis of the oil samples suggests the presence of oil of API 14. Sources said the company is taking necessary steps to establish the potential of the discoveries. The firm will deploy the best technologies used to produce heavy oil in the US, Canada and South America to determine and begin production on commercial basis from Kharenti-A field. Jay stated that the discovery of a significant oil column in their first well in CB-ONN-2009/8 is encouraging.

Inputs from agencies