High hopes for West Bengal block at ONGC
ONGC will be hoping to replicate its Ashoknagar discovery success with four planned exploration wells at OALP-5 block BP-ONHP-2019/2 in West Bengal, where it is the operator with 100%.
Within three or four months, ONGC expects clearance from the West Bengal State Environment Impact Assessment Authority (SEIAA) after applying on February 24 (2024) with a 103-page Pre-PFR. In Phase-1, ONGC plans four exploration wells by March 16 (2025) in its Committed Work Programme (CWP) at an estimated Rs120cr ($14.4m) cost.
Each well will take up to 150 days to drill to a maximum of 5000 metres TD at the 3009.42-sq km part of the block straddling East Medinipur and West Medinipur districts in West Bengal. Another 160.11-sq km lies in Odisha.
ONGC calculates the estimated cost per well to be approximately Rs30 crore ($3.62m). Of this the drilling preparation, well planning, civil engineering services, and other drilling-related costs amount to Rs67.84 lakhs ($82,000).
Mobilising a company-owned rig and drilling and operational expenses will likely cost Rs27.22 lakhs ($32,600). Even higher are the costs for cementing, budgeted at Rs1.42cr ($171,640); mud services will likely cost Rs1.38cr ($166,800).
Casing expenses amount to Rs1.34cr ($162,000), and drill bits are budgeted at Rs25.83 lakhs ($29,000). Well-head equipment is cheaper at Rs22 lakhs ($26,600), but logging services are again not cheap at Rs1.39cr ($168,000).
Mud logging adds Rs31.80 lakhs ($38,400) to the budget. Anyone worried about accidents can take comfort from the Rs3cr ($362,600) that ONGC has set aside for health, safety, and the environment.
Logistics will likely cost Rs1cr ($120,900), and communications Rs25 lakhs ($30,200). Miscellaneous expenses are projected at Rs96 lakhs ($116,030), and locals eager for employment will be happy to learn that Rs4cr ($483,500) is the workforce budget.
In a February 15 (2024) letter, Bengal Purnea-MBA basin manager Partha Pratim De reminds the SEIAA of an EIA exemption for exploration. "Given the Gazette notification of January 16 (2020) issued by the environment ministry," says De, "Onshore and offshore exploratory wells have been placed under the B-2 category of the 'Schedule' and are exempt from obtaining prior EIA/EPH (public hearing) clearances."