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ONGC discovers oil and gas reserves in Madhya Pradesh, West Bengal ONGC had previously opened six out of India's seven producing basins for commercial production. It is in the process of adding the eighth by putting Kutch offshorePTI | September 06, 2018, 13:42 IST NewsletterA A

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New Delhi: State-owned Oil and Natural Gas Corp (ONGC) has made oil and gas discoveries in Madhya Pradesh and West Bengalthat may potentially open up two new sedimentary basins in the country, the firm's director for exploration has said. ONGC had previously opened six out of India's seven producing basins for commercial production. It is in the process of adding the eighth by putting Kutch offshore on the oil and gas map of India. "The seventh basin was opened way back in 1985. We are looking at adding three more basins in next five years time," ONGC Director (Exploration) Ajay Kumar Dwivedi said. The firm has found gas deposits in a block in Vindhyan basin in Madhya Pradesh that is now being tested, he said adding that the find is at 3,000-plus meters. ONGC has drilled four wells after the discovery and will now hydro-frack it by the end of the year to test commerciality of the finds. Similarly, an oil and gas discovery has been made in a well in Ashok Nagar of 24 Parganas district in West Bengal, he said adding that one lakh cubic meters per day of gas flowed from one object that was tested. Now, the firm would go for appraisal of the find, only after which commercially

exploitable reserves could be established. Dwivedi said the company is on the way to putting the Kutch offshore discovery to production. This would make Kutch India's eighth sedimentary basin. Cauvery was the last Category-I producing basin which was discovered in 1985. ONGC had made a significant natural gas discovery in the Gulf of Kutch off the west coast a few months back, which it plans to bring to production in 2-3 years, he said. India has 26 sedimentary basins, of which only seven have commercial production of oil and gas. Except for the Assam shelf, ONGC opened up for commercial production all the other six basins, including Cambay, Mumbai Offshore, Rajasthan, Krishna Godavari, Cauvery, and Assam-Arakan Fold Belt. The discovery in Kutch offshore may hold about one trillion cubic feet of gas reserves. The spread of Kutch offshore basin covers an area of 28,000 square kilometers in water depth of up to 200 meters and will become eighth producing basin of the country. He, however, said in order to monetise the discoveries in the three new basins, "a favourable fiscal regime and concessions" are needed. This, because the current gas price of USD 3.06 per million British thermal unit, is "challenging", he said adding the discoveries in a tight reservoir, where the cost of production is higher. Cambay, Mumbai Offshore, Rajasthan, Krishna Godavari, Cauvery, Assam Shelf and Assam-Arakan Fold Belt are Category-I basins with established commercial production. Category-II basins Kutch, Mahanadi-NEC (North East Coast), Andaman-Nicobar, Kerala-Konkan-Lakshadweep where known accumulation of hydrocarbons are there but no commercial production has been achieved so far. Himalayan Foreland Basin, Ganga Basin, Vindhyan basin, Saurashtra Basin, Kerela Konkan Basin, Bengal Basin are Category-III basins having hydrocarbon shows that are considered geologically prospective. The remaining basins of Karewa, Spiti-Zanskar, Satpura–South Rewa–Damodar, Chhattisgarh, Narmada, Deccan Syneclise, Bhima-Kaladgi, Bastar, PranhitaGodavari and Cuddapah are classified as Category-IV basins having

uncertain potential which may be prospective by analogy with similar basins in the world.

ONGC wants ‘tight’ reservoir gas priced on par with ‘difficult’ ones Twesh Mishra Updated on October 01, 2018

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ONGC has approached the Ministry of Petroleum & Natural Gas to allow gas produced from tight reservoirs to be sold on par with that from other ‘difficult’ discoveries. “We ecently found gas deposits in a block in the Vindhyan basin in Madhya Pradesh. It is a tight gas reservoir and it is not commercially feasible to develop this asset at the present gas price,” an ONGC official told BusinessLine. The Ministry has fixed the gas price for the October 1, 2018 - March 31, 2019 period at $3.36 a unit (gas is measured in million British thermal units, or mBtu). But for gas produced from ‘difficult’ discoveries, such as those in deep water, ultra deepwater and high pressure/high temperature areas, a price of $7.67/mBtu is allowed. “We want gas discoveries from tight gas reservoirs to be categorised with other difficult discoveries. We have already made presentations to the Ministry of Petroleum,” the official said. A reservoir is considered ‘tight’ if the oil or gas is covered by harder rocks that require more expensive drilling and extraction techniques. Gas price is governed by the New Domestic Gas Policy, 2014, under which the Centre fixes the price twice a financial year — for AprilSeptember and October-March.

Allowing tight gas reservoirs to get a higher price will require the Union Cabinet’s nod, the official added. At present, ONGC annually produces 32.65 billion cubic metres of natural gas. Of this, 3 million standard cubic metre a day of production comes from the ONGC S1 Vasishta project in the Eastern Offshore. This is ONGC’s only project that is getting a higher price. “Going forward, we plan to increase production from Vasishta S1 to 4 million standard cubic metres a day,” said ONGC Chairman Shashi Shanker.