ONGC To Invest Billions In Exploration Activities

ONGC To Invest Billions In Exploration Activities
India's ONGC will be investing up to $4 billion over the next three years to boost exploration activities.

India’s state-owned Oil & Natural Gas Corporation (ONGC) will be investing up to $4 billion over the next three years to boost exploration activities.

At its latest board meeting, ONGC announced its Future Exploration Strategy. The company drew up a comprehensive roadmap to further intensify its exploration campaign, allocating a capital expenditure of around $4 billion in the fiscal years 2022-25.

This is 150 percent of the company’s exploration expenditure of around $2.7 billion in the last three fiscals during 2019-22. ONGC also stated that it planned to leverage international collaborations with reputed global majors for this, for which talks are in an advanced stage.

This exploration intensification includes activities funded through ONGC’s internal program as well as funded and facilitated by the government.

A government-funded program for appraisal of unapprised offshore areas in the Exclusive Economic Zone. Some 70,000-line kilometers of state-of-the-art 2D broadband seismic data acquisition, processing, and interpretation will be done in three sectors – namely, the West and East Coast of India, and Andaman offshore. ONGC will complete the technical bid opening for seismic data acquisition by June 2022.

In the Andaman Basin, ONGC presently holds two blocks for exploration under Open Acreage Licensing Policy. The government of India has also acquired seismic data in some sectors within ‘No-Go’ areas and few prospects are already identified. 

The company has plans to drill six wells in the next three years – two under ONGC committed work program and four through government funding. Reputed global companies and consultants are being invited for the assessment of the basin for future exploration and exploitation plans.

ONGC’s internal program has three components – re-exploration of mature basins, consolidation of emerging basins, and probing of emerging and new basins.

Under this internal program, ONGC is trying to probe around 1.7 billion tons of oil and oil equivalent gas of yet-to-find reserves during fiscal years 2022-25. The activities here include state-of-the-art 2D and 3D seismic surveys, followed by drilling of around 115-120 wells with an estimated outlay of around $1.3 billion every year for the next three years.

Also, Government’s facilitation has resulted in the release of about 96,000 square kilometer area which was earlier demarcated as a ‘No-Go’ zone. This will further help ONGC achieve its acreage acquisition program of bringing around 500,000 square kilometers under active exploration by 2025.

To contact the author, email bojan.lepic@rigzone.com



WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Most Popular Articles