Some 350m barrels potential of KG-DWN-98/4

Vol 5, PW 18 (24 Oct 01) Exploration & Production
     

What does block KG-DWN-98/4 hold out for ONGC and Oil India Below are culled excerpts from a techno-economic exercise carried out by ONGC pre-and post-farm in.

Pre-farm in financials with ONGC holding 100% interest* Reserves (million barrels) NPV @ 0% (mn $) NPV @ 10% (mn $) IRR (%) Risk Money (mn $) 354.78 1,653.75 301.15 17.83 22.68 Post-farm in financials with ONGC holding 85% interest* Reserves (million barrels) NPV @ 0% (mn $) NPV @ 10% (mn $) IRR (%) Risk Money (mn $) 301.56 1,405.69 255.98 17.83 19.28 *Oil price assumed at $14 barrel for all the above calculations Meanwhile, the minimum work programme sets out the following: Phase 1 (3 years) - Geological and geophysical studies; reprocessing of 3,000 line kilometres (2D) seismic; acquisition, processing and interpretation of 1,400 line kilometres seismic; acquisition, processing and interpretation of 20,000 stations of gravity-magnetic survey Phase 2 (3 years) - Geological and geophysical studies; reprocessing of 500 line kilometres seismic; drilling of one exploratory well to target depth 3,000 metres Phase 3 (2 years) - Geological and geophysical studies; reprocessing of 500 line kilometres seismic; drilling of one exploratory well to target depth 3,500 metres