ONGC strikes it rich in eastern gas fields

18 December 2006

Mumbai: State-run explorer Oil and Natural Gas Corporation (ONGC) has struck a major gas reserve off the country''s east coast that could exceed 21 to 22-trillion cubic feet, reports quoting market sources said.

This is ONGC''s first major oil find in the Krishna Godavari deepwater area where Reliance Industries struck gas reserves in excess of 50 trillion cubic feet in 2002.

ONGC is likely to release full details of the find in early January after further drilling.

"Testing will be completed in January first week. This will be our New Year gift to the country, reserves could be more than the numbers floating in the market," a senior ONGC official said.

He said initial estimates by consultants on the basis of early drilling suggested reserves of about 21-22 trillion cubic feet (tcf) in the KG-DWN-98/2 block, which is in line with the estimates, but there could be more to come.

ONGC has found a 28-30 metre net gas yield zone at a depth of about 5,400 metre in the block''s UD-1 well, he said. "We have to drill for another 1,000 metres or so, then volumes can be talked about," he added.