1. ONGC aims to start production from Gulf of Kutch basin by 2020

ONGC aims to start production from Gulf of Kutch basin by 2020

The total in-place oil and gas reserve in the Kutch basin is around 110 million metric tonne out of which the company expects to recover 29.87 million metric tonne.

By: | Published: June 27, 2017 6:52 AM
ONGC, Oil and Natural Gas Corporation, Gulf of Kutch basin,  Cauvery basin, Gulf of Kutch, Ajay Kumar Dwivedi, Tertiary segment Kutch basin to be first producing basin after Cauvery went into production 30 years ago.

Oil and Natural Gas Corporation (ONGC) plans to start aggressive development campaign in the Gulf of Kutch offshore basin to bring the discoveries to production by 2020. This would be the first producing basin for ONGC after the development of Cauvery basin on the East Coast 30 years back. The company has made 17 discoveries in the Gulf of Kutch with two discoveries made in financial year 2016-17. The total in-place oil and gas reserve in the Kutch basin is around 110 million metric tonne out of which company expects to recover around 29.87 million metric tonne. “We are going to start the next round of development activity in the basin this year. Since most of the discoveries are scattered we will see which ones are feasible for development. We have mastered the art of cluster development, even if the fields are scattered we are able to put them into production in an economical way,” said Ajay Kumar Dwivedi, director exploration of ONGC.

The reserves are distributed in two categories – Tertiary segment, that is easy to produce, and second the Mesozoic segment, slightly difficult to extract. The company plans to take up easy discoveries in the tertiary sector first, that is expected to produce in the next 3 years time. Simultaneously, efforts would be made to enhance the production from the Mesozoic segment or the difficult segment as well, the official said.

“A lot of work has already gone between exploration and production. Hence, we expect the production to start from the third year. The first year would mostly be for further discoveries, from second year the development work would start, while production would flow from the third year,” Dwivedi said. The company has already invested close to $2 billion on the entire exploration of the basin but the part that is getting developed has cost around $500 million on the exploration activity. However, the capex for development phase is still under discussion.

“We will share the capex once our field development plan gets prepared,” Dwivedi said. Some of the discoveries already made in the Gulf of Kutch include the GK-OSN 2009/1, GK-OSN 2009/2, GK-OSN 2010/1 and GK-OSN 2010/2, GK-DW-1 and GS OSN-2004/1. The company is also simultaneously developing its Krishna Godavari basin Cluster 2 and Cluster 3 phases, which it wants to bring under production by 2021. Some fields that were separated in Cluster 1 which is involved in arbitration with Reliance Industries over resource leakage, will also be developed at a later stage.

In FY17 ONGC’s domestic offshore production increased to 62,434 tonnes per day from 60,093 tonnes per day. This increase in base production is likely to facilitate higher production in FY18.

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