ONGC sells gas from Chaklasi field

Vol 11, PW 25 (01 May 08) News in Brief
     

ONGC is beginning to see the value of its dormant marginal gasfields, cheered by customer willingness to pay market prices.

PETROWATCH learns on April 23 ONGC began supplying 7000 cm/d from two producing wells located on the remote Chaklasi field in the Ankleshwar region of Gujarat to ceramics producer Ricasil Industries. “We’ve signed a firm contract to supply 7000 cm/d for five years,â€‌ confirms ONGC, “and a â€کfall back’ contract for an additional 3000 cm/d.

â€‌ Ricasil has agreed to pay $4.75/mmbtu and has set up a new ceramic tiles glaze factory one-km away from the field. “Chaklasi is a marginal field and in an isolated location,â€‌ adds ONGC.

“With no customers around there was no point starting gas production before. But now we have set up an early production system to supply Ricasil.

â€‌ Of the 10 wells drilled by ONGC at Chaklasi so far, two are producing gas from Eocene pays about 1100 metres below the surface; one is a capped oil well and seven are dry.