KOLKATA (miningweekly.com) - Bringing one of its oldest assets back into focus, Indian oil exploration and production (E&P) major ONGC Limited would start a new exploration drive at Cambay basin in the western coastal province of Gujarat.
ONGC has decided to drill 103 new exploratory wells in the upper northern reaches of Cambay basin entailing an investment of around $110-million over the next five years, indicating the renewed interest in the region where the E&P company drilled its first well way back in 1958.
Hydrocarbon reserves in the Cambay basis were dwindling with most of the remaining reserves classified as tertiary oil, which was deep and difficult to extract, an ONGC official said.
However, fresh geological studies and exploration have revealed new zones where hydrocarbons could be commercially exploited, prompting investments in the new drilling wells in the region, he said.
Given the nature of the new finds, ONGC would take up exploratory wells with a wide range of drilling depths between 1 000 m and 3 500 m, he added.
The new exploratory wells would be spread across 1 117 km2 and the company was very optimistic of following it up with commercial drilling, as ONGC already operated about 1 500 wells in blocks in close proximity producing oil equivalent of 40 000 t/d.
One of its earliest discoveries, ONGC has so far drilled 7 000 wells across its assets in Cambay basin, leading to about 117 hydrocarbon discoveries to date, the company official said.