ONGC makes "significant" oil strike in offshore field off Andhra Pradesh

New Delhi: Indian energy major Oil and Natural Gas Corp (ONGC) said Monday it had made a significant oil discovery in an eastern offshore field in Andhra Pradesh, striking oil at Block IG at a water depth of 225 meters. The oil bearing well G-4-6 is located 15 km off Yanam coast in Andhra Pradesh, the company said in a press statement here.

"Three hydrocarbon bearing sands have been encountered in the gross interval 3,757 meters to 4,185 meters based on geological data, log evaluation and one mini-Drill Stem Test carried out on September 30 and October 1, 2008. The thickest sand interval (4,1084,185 meters) comprises 55 metres of net oil pay," it said.

The company had received the field on a nomination basis from the government.

 ONGC has not stated the quantum of in-place reserves it has encountered.

The discovery is the most significant find after the ultra-deep sea UD-1 gas discovery in Krishna-Godavari basin in December 2006.

The discovery at G-4-6 "augurs well as it marks the ONGCs determined efforts to put the KG offshore to new and higher levels of oil production," it said.

ONGC plans a fast-track hub development programme, clustering geographically proximal encouraging finds including a mix of older finds like G-2 and GS-29 with latter finds like Padmawati, Kanakadurga, and a slew of other discoveries using a common production facility like an FPSO.

This is expected to be on course with an initial rate of 20,000 barrels per day by 2012-13, which is expected to peak to around 150,000 barrels per day by 2016-17, ONGC said.