ONGC planning $472m spend on Tripura E&P

Vol 20, PW 22 (27 Jul 17) Exploration & Production

If Tripura wasn't a priority before, it clearly is now.

ONGC has set aside a massive Rs3104cr ($472m) budget to drill 50 wells and set up production infrastructure in this remote north-east state on the border with Bangladesh. All eyes are on a meeting of the environment ministry's Expert Appraisal Committee on July 27 to see if it will give ONGC the go-ahead after rubber-stamping the proposal on July 14.

"EC clearance will come within a few months," an ONGC source tells us. "We're confident of that." In a detailed 466-page Environmental Impact Assessment (EIA) report from Gurgaon-based ERM, ONGC focuses on the tremendous potential of Tripura, where gas production has more than doubled from 645m cubic metres (1.8m cm/d) in fiscal 2012-13 to 1.382bn cubic metres (3.8m cm/d) this fiscal (2016-17).

Today production stands at 4.6m cm/d with ONGC fully confident it can reach 5m cm/d in the coming months. ONGC is planning to drill the 50 new wells across the following nine PML areas: West Tripura, Agartala Extension Dome II, Agartala Dome Extension III, Kunjaban, Tulamura, Tulamura (Additional), Manikyanagar-Sonamura Extension 1, Sundalbari Agartala Dome, and Gojalia.

Each well will cost an estimated Rs50cr ($7.8m) to drill but add the cost of setting up surface facilities to produce 5.1m cm/d and the total investment approved by ONGC is Rs3104cr ($472m).