Nagayalanka 2-well plan hinges on FDP approval

Vol 20, PW 1 (22 Sep 16) Exploration & Production

Four companies interested in bidding for an ONGC tender to carry out well engineering and design for two development wells at its KG-ONN-2003/1 onland block in Andhra Pradesh should carefully consider if it's worth their while.

An ONGC source says it plans to issue the tender shortly but will either only award it after the long-delayed $1bn Field Development Plan (FDP) is approved or award it subject to FDP approval. Blade Energy, EnQuest Petro Solutions, WellPerform and Petrofac are all believed to be keenly watching this tender.

But they will be disheartened to hear that ONGC's partner Cairn asked its chairman DK Sarraf a few months ago for additional time to decide if it wants to continue at the block. Cairn objects to the FDP on the grounds that it is not techno-commercially viable.

Has ONGC heard back from Cairn yet? No, and considering that FDP approval is pending since 2014 things aren't looking great. In Phase-I ONGC wants to drill only two wells but even issuing a tender to hire a drilling rig depends on FDP approval.

ONGC was earlier planning to hire a 3000-hp rig but now capacity will depend on the well design prepared by the consultant. "We need a high capacity rig as the wells have horizontal sections," says ONGC.

Each well will be drilled vertically to 4000 metres and horizontally to 1500 metres. In Phase-II ONGC wants to drill 18 wells.