The Hindu : Business : ONGC strikes big gas reserve in KG basin

Online edition of India's National Newspaper
Saturday, Mar 05, 2005

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Business

ONGC strikes big gas reserve in KG basin

By T. S. Subramanian

MUMBAI, MARCH 4. In a major find, the Oil and Natural Gas Corporation (ONGC) has found a big reserve of gas close to three trillion cubic feet in deep waters in the Krishna-Godavari basin, off the Andhra Pradesh coast. The discovery was made at a depth of 2,150 metres in a structure called G-1-12A. ONGC sources said this was associated gas and so "oil find could be there.'' They added: "Testing is under way and we are expecting good reserves. After perforation is over, we will be able to tell you the true value [of the discovery]. It is close to three trillion cubic feet of reserves.''

This discovery has come as a shot in the arm for the ONGC after it met with a series of failures in its deep water exploration off the Kerala-Konkan coast, Krishna-Godavari offshore basin and so on. Its hopes rose last year when it discovered free gas, that is there was no oil in deep waters in the KG basin in a structure called G-4 and the reserves were estimated at 22.03 million tonnes. The ONGC has made a breakthrough now with the latest discovery in G-1-12A. The offshore rig, which drilled here, is called "Discoverer Seven Seas.''

NGC sources said, "We have found a 24-metre lateral sand layer mixed with clay [in G-1-12A]. This kind of structure indicates the presence of hydrocarbons.'' The sources said commercial production of gas from a well in G-4 might start by the end of 2005. The KG offshore basin, measuring 31,780 sq. km, has 13 blocks.

The ONGC has been more lucky with its exploration in KG basin shallow waters. In 1992, it found gas in a structure called GS-29 and the find was about 2.46 million tonnes. In 1993-94, it found oil and gas, estimated at 14.74 million tonnes in GS-15. In 1994-95, it found free gas of 2.49 million tonnes in GS-23. In 2002-03, it struck gas estimated at one million tonnes in GS-49. The same year, it discovered oil estimated at 2.19 million tonnes in a structure called GS-KN. All these were in K.G. basin offshore shallow waters. The ONGC's latest two important finds in the KG offshore deep waters come on the heels of Reliance making a big discovery there in 2002. Reliance claims that it has discovered gas close to 14 trillion cubic feet in the KG offshore basin.

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