Coal News We love to talk!

APR 29 2017

ONGC planning to bring Kutch offshore basin on stream soon: D K Sarraf

  • Economic Times, ET Bureau / Hyderabad
  • Created: Sat 29th APR 2017

State-owned petroleum explorer Oil and Natural Gas Corporation (ONGC) is planning to bring on stream its Kutch offshore basin, the country's eighth new basin, over the next 2-3 years, Chairman and Managing Director (CMD) DK Sarraf said on the sidelines of an industry event organized by United Nations Global Compact Network (UN-GCN) India.

“We have made many new discoveries in the Kutch off-shore basin. Most of them have been gas reserves and the estimates look very promising. We are trying to accumulate more mass and discover more reserves so that production from the basin is profitable in spite of the challenging oil and gas prices. We are looking at monetizing this block in the coming two to three years,” Sarraf said.

The Kutch offshore is a shallow water acreage where ONGC has reached appraisal stage. The oil and gas behemoth is aiming to complete appraisal process and move on for development of resources by mid-2017.

The company has reportedly discovered more than one trillion cubic feet (tcf) of natural gas in the Kutch offshore basin and is trying to establish 0.5 tcf of additional natural gas.

Seven out 26 sedimentary basins in India are currently under production. Cauvery basin was the last basin to come on stream in 1985. The new Kutch off-shore basin would provide respite to ONGC at a time when production has been declining from most of its mature and ageing fields, where the company has deployed Enhanced Oil Recovery (EOR) techniques to maintain production.

Commenting on the latest move by the upstream regulator Directorate General of Hydrocarbons (DGH) to seek stakeholder comments on the feasibility of incentivizing Enhanced Oil Recovery, Sarraf told ETEnergyWorld a policy to incentivize EOR is much needed and a positive step for the company.

“We have given our inputs to DGH. Without incentives, EOR will not be economically feasible due to low price scenario in the oil and gas sector. There is a lot of scope to enhance domestic production in the country by deploying EOR techniques. Deploying EOR is capital and time-intensive process. In the past the industry has taken 10 years to successfully commission EOR projects. We are trying to bring it down to five years,” Sarraf said.

He added EOR techniques have been deployed in most of ONGC's blocks and the company is now focusing on cost-effective operations in offshore blocks. According to Petroleum Planning and Analysis Cell (PPAC), ONGC’s crude oil production in the last fiscal declined by 1.5 percent to 18.2 million tonne as compared to 18.5 MT produced in 2015-16.

The company managed to drill 501 wells last fiscal year, crossing the 500 wells mark for the first time in 23 years. ONGC had made 23 new discoveries last financial year, a 35 percent jump over 17 discoveries made in 2015-16.




Gas Natural Gas Oil ONGC Directorate General of Hydrocarbons Petroleum Oil and Gas Hydrocarbons Crude Oil India ongc

Related News

  • Hike in excise duty aimed to meet budget deficit, says oil minister  Read more
  • Osaka Gas to Establish Energy Service Joint Venture in Thailand with PTT  Read more
  • ONGC eyes idle assets from Panna-Mukta-Tapti JV for Daman development  Read more
  • Coal Ministry removes cap on Coal India's e-auction sales  Read more
  • Parikh committee report implementation reduced subsidy burden: Pradhan  Read more
  • Ministerial meeting on gas postponed  Read more
  • Govt looks to boost use of natural gas for cooking, cars  Read more
  • OVL's dollar bond issue gets low investment grade ratings  Read more
  • IOC seeks exemption for LPG plant operations from strikes  Read more
  • Petrol price cut delayed due to rupee depreciation  Read more