ONGC board to discuss expensive Ravva well

Vol 17, PW 24 (17 Jul 14) News in Brief
     

ONGC directors are worried about the escalating cost of HP/HT well RX-11 at the LO-110 prospect drilled by Ravva operator Cairn India.

PETROWATCH learns ONGC’s next board meeting on July 30 will examine a proposal to sharply increase the original $82m budget for the well to $220m. “No director wants to take individual responsibility for such a sharp increase,” we hear.

“This has to be a collective decision. When CAG asks questions we need to be covered.

” Spud in November last year (2013) RX-11 drilling costs rose sharply to $109.03m by February 2014 and this month (July) stand at around $180m, mainly due to cyclone conditions that forced rig Hercules Triumph to stop drilling soon after mobilisation. “This is a complicated well,” says a JV source.

“Bad weather resulted in 93 days lost rig time.” Cairn (22.5%), ONGC (40%), Petrocon (25%) and Ravva Oil (12.5%) estimate RX-11 will yield 268bn cubic feet of gas and 16m barrels of oil.