ONGC to tap both western and eastern offshore fields

Oil and Natural Gas Corp (ONGC) is looking at simultaneous drilling of the eastern offshore oil and gas blocks to rev up production even as the state-run explorer is on the threshold of discovering additional oil reserves in the Mumbai offshore field.

ONGC has sought permission of the ministry of environment and forest (MoEF) for drilling 24 development wells and to establish production facility in the Krishna-Godavari basin, reports quoting a top ONGC official said today.

The report comes close on the heels of fresh drilling in the western offshore fields where ONGC is said to be testing D1 well to ascertain exact quantity of additional oil.

D1, which is situated about 200 km west of Mumbai in the deep continental shelf, is already yielding 16,500 barrels per day of crude.

Once the MoEF clears the proposal, ONGC plans to take up drilling work in the KG basin also by 2015 as almost all of its rigs in the KG basin are currently engaged.

ONGC, which has completed exploratory drilling in the KG basin in 2011, proposes to develop 24 wells and establish early production facilities at Malleswaram, in Krishna district of Andhra Pradesh.

The drilling would be done in a phased manner, covering a one km area initially and gradually increasing the size.

ONGC, meanwhile, is also looking to acquire new rigs to meet production schedule and targets.

ONGC currently produces 840 tonnes of crude oil and 3.5 million metric standard cubic metres of gas daily from its KG Basin fields.