ONGC plans $7bn drilling bonanza in KG basin

Vol 17, PW 11 (16 Jan 14) Exploration & Production
     

ONGC is expected to issue tenders by June this year to hire four rigs to drill around 40 development wells in the offshore KG basin.

This month directors are expected to give financial approval for a $7bn proposal to develop blocks KG-DWN-98/2, G4, GS-49 and several fields including S1 and Vashishta. Of the $7bn spend, ONGC has tentatively set aside $2bn for rigs, offering four-year contracts running from 2015 to 2019.

One rig will drill deepwater wells in water depths of 600 metres to 1400 metres; two semisubmersibles will drill in water depths of 150 metres to 600 metres; and a fourth rig will drill in shallower water between 8 and 100 metres. Each shallow water well is estimated to cost $30m and each deepwater well will cost $60m.

“If we get the budget sanctioned this month the rig tender should be out by June,” confirms a source. “We want to award contracts by end-2014.

” ONGC expects to spud the first well in September 2015 allowing for nine months mobilisation. ONGC wants to drill 22 deepwater development wells at its Northern Discovery Area (NDA) at KG-DWN-98/2; seven wells in water depths of up to 331 metres at pre-NELP block G4; three wells in water depths of 500 metres at GS-49; and four wells at Vashishta and S1 in water depths of 400 to 700 metres.

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