Tamil Nadu hurdle for Cauvery production
ONGC believes it can immediately increase its Cauvery asset's gas production by 500,000 cm/d if and when it receives permission from the Tamil Nadu state government.
"As of now, our production is 2.8m cm/d, but that is not our full capacity," complains an asset source. "We can start producing from more wells and increase production to 3.3m cm/d if we receive permission."
He adds that production can increase from wells already drilled. GAIL offtakes up to 2m cm/d of production, and ONGC supplies the rest directly to local factories and businesses.
Our source claims the asset even has the potential to hit 9m cm/d of production if the local government approves its E&P plans. Statutory barriers to E&P have meant that ONGC's oil production at the asset has fallen from 8063 b/d (1100 t/d) in 2020 to barely 4911 b/d (670 t/d) in 2024.
"We have been talking to the state government and local administration for clearance to work in different places," adds our source. However, local environmental protesters and rigid legislation under the Tamil Nadu Protected Agricultural Zone Development Act, 2020, oppose drilling in the Cauvery Delta area.
At the Independence Day celebrations on August 15 (2024), asset manager Uday Paswan urged Chief Minister MK Stalin to allow E&P to co-exist with agriculture. "Locals think we are drilling using workover rigs, which is untrue," we hear.
"In a meeting in July (2024), we urged the state government to at least allow ONGC to work in the non-delta areas like Ramnad where we can produce more gas." ONGC can drill nearly two dozen development wells if clearance comes through.
Until earlier this year, the asset only had two drilling rigs available. ONGC sent one to the Ankleshwar asset in Gujarat and kept the other on standby for contingencies or in case drilling permission comes through.
ONGC sees high potential in the Thirunagaram well at NELP-IV block CY-ONN-2002/2 at Madanam. Meanwhile, the Cauvery basin office in charge of exploration is overseeing the Chola-1 offshore well in the OALP-5 block CY-UDWHP-2019/1 awarded in 2020.
ONGC spud the well on the morning of May 9 (2024) in the Bay of Bengal.