ONGC discovery excites Oil India and GeoGlobal

Vol 14, PW 23 (19 May 11) Exploration & Production

ONGC’s (as yet unreported) discovery of good quantities of gas at a ‘nomination’ onland block in the Krishna Godavari basin is getting other operators excited about the potential for the region.

PETROWATCH learns ONGC struck gas last week at an exploratory well drilled at its PEL block 1B in the KG basin. ONGC drilled the ‘wild cat’ using its own 2000-hp rig to 5456 metres TD.

“Gas was struck while drilling beyond 5100 metres,” says an industry source. “They discovered a 150-metre thick gas column in the Gollapalli geological formation.

ONGC also thinks there could be a 50-metre thick oil column lower down in the well. This has yet to be substantiated but gas is definitely there.

” Details like the choke size or flow rate are unavailable, but Schlumberger is carrying out logging operations at the well, which it expects to ‘complete’ today (May 19). “ONGC will first notify the discovery to the DGH before making a formal announcement,” we hear.

Once Schlumberger completes logging, ONGC is likely to test the well to measure flow rates. “Testing may begin in about 10 days,” said a source on May 17.

“The well will be tested for about four days and completed in the next 30 days.” Only after the well is completed will ONGC get a clear idea of the extent of the discovery or how much gas can be produced from the block.

Oil India and Calgary-headquartered GeoGlobal Resources will be extremely pleased to learn about this news, as their 549-sq km NELP-VI block KG-ONN-2004/1 sits near the ONGC discovery. “GeoGlobal and Oil India are confident their block is on the site of one of India’s largest onland gas discoveries till date,” said an analyst.

Oil India operates KG-ONN-2004/1 with 90% while GeoGlobal holds 10%.