ONGC plans 12 wells at D-1 South Field

Vol 6, PW 19 (20 Nov 02) Exploration & Production

ONGC HAS DECIDED to develop its western offshore marginal field D-1 South.

We understand that investment banker SBI Caps vetted a Rs406cr ($84m) feasibility report for the project ahead of approval last month by ONGC's board. ONGC plans to carry out the project in two phases: Phase-I will be ready for production in 2005 and production from Phase-II will begin four years later.

Expect two tenders: the first for a lightweight 12 slot platform and topside facilities; the second for modification of the (existing) Sagar Laxmi process platform. How many wells will be drilled Three producers and three water injectors in 'Phase-I' and an equal number of each in 'Phase-II'.

Electrical submersible pumps will be used to pump out the crude oil. Once D-1 South begins production, it is expected to yield 5.1m t/y crude oil at a recovery rate of 26.61% over a period of 10 years (2006-2015).

See below.Viability analysis for D-1 South development Oil price ($/barrel) Internal Rate of Return (percent) Net Present Value @ 16 % (Rs Cr) 16 28.40 133.86 ($27.7m) 18 34.02 206.84 ($43.13m) 20 39.16 279.83 ($58.13m)