ONGC to appoint DeGolyer for exploratory well audit

Vol 11, PW 1 (17 May 07) Exploration & Production

For the first time ever, ONGC has decided to appoint a consultant to carry out an audit of its exploration wells.

PETROWATCH learns ONGC is set to appoint Dallas-based reservoir consultant DeGolyer and MacNaughton (D&M) to carry out an audit of all the exploratory wells it has drilled over the last five years. “We want to look at the process followed while drilling these wells,â€‌ says an ONGC source.

“An auditor will help us see if the process we have followed from spudding till completion is correct. We want to learn how we can improve the process.

â€‌ ONGC wants D&M to audit its models for drilling, completion and also for testing the wells drilled. Specifically, D&M will be asked to teach ONGC about international best practice in drilling.

We understand ONGC also considered appointing rival consultant, UK-based Gaffney, Cline and Associates but later decided to work with D&M specifically for this project. “GCA has already worked with ONGC in Mumbai (High) and Assam,â€‌ adds a source.

“We will appoint them (GCA) for something else. For this project we want a new agency.

â€‌ Our source adds that a formal contract is yet to be signed with D&M. “Technical discussions are still on,â€‌ he says.

“We want them to work to ONGC’s requirements.â€‌ D&M, we hear, is asking for more than $5m for the job.

“We have to see how much time they (D&M) will take to complete the job and also the amount of money they will agree.â€‌ The project will be split into several phases and ONGC will initially ask D&M to audit a small number of wells, possibly less than 100, in the first phase.

After the award, ONGC wants D&M to submit its report by December 2007. ONGC’s Executive Purchase Committee met on 8th and 11th May with the D&M award on the agenda, but it was not discussed.

“No one can say when the contract will be signed but it will be signed with D&M for sure,â€‌ we hear. “But only after negotiations are concluded.