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Onshore search for gas likely in Mahanadi in Oct.

Staff Reporter

Steel and Mines Minister presents status report to Assembly

BHUBANESWAR: Drilling of the first oil and gas exploratory well in the Mahanadi onshore areas is expected to commence in October this year.

Presenting a status report on oil exploration being carried out in the Mahanadi basin in response to a query in the State Assembly here on Thursday, Steel and Mines Minister Padmanav Behera said: "The arrangement of drilling rig and all other allied services are in progress and the drilling of well is expected to commence in October 2007 or earlier."

He said one more exploratory well was planned in this area for drilling by the year 2009 depending on results of the first well.

Consortium

Block MN-ONN-2000/1 in Mahanadi onshore area was developed by a consortium of the Oil India Limited (OIL) with a stake of 60 per cent and the Oil and Natural Gas Corporation (ONGC), the Indian Oil Corporation (IOC) and the Gas Authority India Limited (GAIL) with 20 per cent each share. The OIL is the operator in the venture.

The consortium decided one exploratory well around the village Panchasaranga Balarampur near Nischintakoili in Cuttack district, Mr. Behera said.

He said, while geo-scientific works, firming up of drilling location, environment impact assessment and land acquisition had been completed, approach road and plinths were being given final touches.

Offshore exploration

Similarly, the ONGC, which is the operator in exploration of Mahanadi offshore areas, carried out drilling of two exploratory wells, of which one had proven reserve of gas, Mr Behera said. "Two more exploratory wells have been planned to be drilled by the year 2008 in this area." The ONGC had joint venture with the OIL, the IOC and the GAIL.

In Mahanadi deep-water areas, the ONGC was planning to drill six exploratory wells by 2012 in three phases, the Minister said. The ONGC partnered with the OIL and the Bharat Petroleum Corporation Limited (BPCL).

Besides the above consortiums, it was understood that Reliance Industries, Niko Resources and GAZPROM were also working off the coast of Orissa, Mr. Behera said.

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