|ONGC notifies two more discoveries; conclude FY’11 with an impressive note of Reserve Accretion and Production|
28 April, 2011
In its 218th Board Meeting on 27th April, 2011, while ONGC declares two new discoveries, it also presents an impressive provisional Annual result in terms of Reserve Accretion and Production.
The two notified discoveries are:
1. Exploratory Well Vadtal#3 in NELP Block CB-ONN-2004/2: ONGC has notified DGH on 16th March, 2011 about a significant discovery in NELP Block CB-ONN-2004/2 which was won in NELP-VII and where ONGC has 50% participating interest (GSPC-40% and Sunterra 10%). On testing of interval 1347.5 – 1315.5 m in exploratory well Vadtal#3 in Chhatral formation, it produced oil at a rate of 22.5 cubic meter per day and gas at a rate of 3758 cubic meter per day (through 6 mm bean). The oil produced is of very good quality with a gravity of 41.10 API.
Prospect Vadtal # 3 is a fault closure and this discovery has given impetus to exploration of similar fault closures towards north and into another NELP block CB-ONN-2001/1, where ONGC has already made a discovery in May’09 in the same trend.
2. Development Well North Kadi # 461 in Linch Extn-I PML: The other one is a pool discovered in the Linch Extn-I PML of North Kadi field of Western Onshore Basin of ONGC, which has been notified to DGH on 5th April, 2011. Development well North Kadi # 461 in Linch Extn-I PML, Western Onshore Basin, was drilled to a depth of 1600 m (as an inclined well from the cluster of exploratory well NK # 460). Testing of interval 1312.5 – 1316m flowed oil at a rate of 17 cubic meter per day (through 8 mm bean). The oil is heavy oil with 25.390 API.
It is important to note that for the first time oil flow has been established in commercial quantity in the particular Mandhali section in North Kadi and adjoining areas.
Highlights of Physical Performance in FY’11
a. Discoveries and Reserve Accretion:
i ONGC concluded FY’11 with the reporting of total 24 discoveries in its domestic fields of operation (excluding North Kadi#461, mentioned above, as it has been reported in April, 2011). Out of these 24 discoveries, 15 are in onshore (11 new Prospects and 4 new Pools) and 9 are in offshore (4 new Prospects and 5 new Pools). Of these, five discoveries are in NELP blocks (three in onshore and two- offshore blocks).
ii. Out of the total 15 on-land discoveries, nine discoveries have been already put on production and efforts are underway to bring the other discoveries on production as soon as possible.
iii. During the year 2010-11, ONGC added 236.92 Million tonne oil and oil equivalent gas (Mtoe) In-place hydrocarbon with 83.56 Mtoe as the Ultimate Reserve surpassing the record breaking performance of previous fiscal (82.98 Mtoe); and resulting a RRR (Reserve Replacement Ratio) of 1.76. ONGC domestic operation has been maintaining an RRR over one for the last six years consecutively (with 3P reserves)
iv. ONGC also struck shale gas, for the first time in India, in its well RNSG#1 near Durgapur, West Bengal, confirming the presence of gas in Indian Shale.
[New Prospect: Oil & gas bearing trap found in a new area/ field through exploratory well New Pool: Oil & gas bearing trap found in a new zone in an existing area/ field either by exploratory or through development well]
i. The combined O+OEG production of ONGC Group (including ONGC domestic, shares in domestic JVs and Overseas operation of OVL) in FY’11 is 62.029 MTOE; the highest-ever (1.81% more compared to production during FY’10 i.e., 60.927 MTOE).
ii. Overseas operation has registered a production of 9.433 Mtoe oil and oil equivalent gas, surpassing the earlier peak production of 8.87 Mtoe in 2009-10.
iii. Production performance of ONGC domestic (including JV share) operation in Q4’11 and FY’11 against MoU Targets:
Commending the performance, CMD, ONGC Mr. A K Hazarika said, “Considering the global average rate of production decline from matured oil fields, this performance of ONGC is commendable. Our performance in reserve accretion is once again laudable. However, without drawing any complacence, we are focusing on bringing all new discoveries to production at the earliest possible opportunities.”