ONGC gas finds in KG, Mahanadi basins confirmed

18 January 2007

ONGC has confirmed the discovery of natural gas in the KG basin off the Andhra Pradesh coast and the Mahanadi basin off Orissa coast. However the oil major has said that it was on looking for a strategic partner for the KG basin as it presented major ''''technological challenges''''.

Petroleum minister Murli Deora told reporters in New Delhi, "I can confirm a huge gas find in ultra deepwater in KG basin and a commercial discovery in Mahanadi basin."

According to ONGC chairman, R S Sharma, the KG well in a water depth of 2,840 metres was still to reach its target depth but initial testing in presence of DGH officials had confirmed the presence of natural gas.

Sharma also disclosed that the well has been drilled up to a depth of 6,600 metres and the target depth of 7,000 metres would be reached within the fortnight. ONGC will drill four-five more appraisal wells before announcing the size of the discovery and the reserves it holds.

He explained that production from such deepwater was a technological challenge for which ONGC was in discussions with Brazil''s Petrobras, ENI of Italy, Norsk Hydro of Norway and BG of the UK for a strategic tie-up.

ONGC is willing to offer the technology partner an equity stake in the block KG-DWN-98/2.