All set to begin production at Ashoknagar-1
ONGC has finally received environmental clearance to drill up to 15 wells to commercialise its promising Ashoknagar-1 discovery in West Bengal.
On March 15 (2023), the environment ministry's Expert Appraisal Committee (EAC) recommended the Rs 516cr ($63m) project for clearance after ONGC re-submitted its proposal on March 7 (2023). ONGC's proposal included replies to all queries given by Vadodara-based Kadam Environmental Consultants, which made a detailed presentation at the online meeting.
"The committee found our proposal in order," confirms an ONGC source. "This is an important project for ONGC in the Bengal basin; we want to start work after the DGH approves the fast-track monetisation plan."
ONGC has released the coordinates (seen by this report) of the 15 proposed development wells at NELP-VII block WB-ONN-2005/4 and a Quick Production System (QPS) at the Ashoknagar-1 well site. ONGC estimates each well will cost Rs30cr ($3.66m) or Rs450cr ($55m) for all 15, which needs 33.75 hectares.
For the QPS, ONGC needs 5.46 hectares and estimates its cost at Rs66cr ($8m). ONGC has proposed a Limited Period Short Term Mining Lease to the DGH for oil and gas from Ashoknagar-1 during exploration and appraisal, following a 2020-2021 DGH directive telling ONGC to commercialise the discovery fast.
Approximately two to four months will be needed for each of the 15 wells, which ONGC plans to drill over three years from 2023 to 2026. Constructing the QPS is expected to take two years; ONGC might also install an Early Production System (EPS) if it discovers more oil and gas.
Between 2014 and March 31 (2022), ONGC drilled three exploration wells at this block: Patuli-1, Matikumra-1 and Ashoknagar-1, under a six-well exploration programme. Ashoknagar-1 was discovered in November 2018 after testing 116 b/d of light 41-degree API crude oil and 12.57 b/d condensate with 88,358 cm/d of gas.
ONGC discovered commercial oil at 2268-74 metres and 2276-78.5 metres and gas at 2377-88 metres. Of the 15 planned wells, ONGC plans to re-enter five already drilled: Ashoknagar-1 (D1), Ashoknagar-2 (B-3 D-2), Kankpul-1 (K-WB-C D-3), B-B-AS-B (D4) and K-WB-J (D5).