'Concentrate on 98/2!' contractors tell ONGC

Vol 18, PW 18 (07 May 15) Exploration & Production

Despite excitement over a major oil discovery at KG-DWN-98/2 last month (April) ONGC is under fire for its slow work pace at this hugely prospective block.

“There's a lot of pressure on us to begin development,” confirms an ONGC source. “The PMO and the oil ministry are regularly monitoring progress.

” But detractors say it won't be possible for ONGC to begin oil and gas production by 2017-18 as promised by chairman DK Sarraf. "ONGC was supposed to submit its FDP to the DGH in February (2015) with details of 45 development wells (at KG-DWN-98/2 and G4 next door)," says one driller.

"Tenders for deepwater rigs and services were expected around now (May) so drilling could begin by December 2015 or January 2016." But, he laments, the FDP, isn't ready.

"I don't think the DGH can approve a $8.47bn FDP in two or three months," adds another source. "Most probably it will take another seven or eight months and this means drilling won't start before the third quarter of 2016.

" An ONGC officer working at 98/2 confirms it has yet to submit a FDP. On the bright side ONGC is upbeat about a discovery announced on April 29 at well M-4, drilled to 3246 metres which encountered six hydrocarbon bearing zones with a net pay of 78 metres testing 3160 b/d oil and 319,483 cm/d gas from a 2900-2908 metre interval.