Oil, gas discovery in Arabian Sea, major boost for ONGC
India's largest oil and gas explorer, the state-run Oil and Natural Gas Corporation, made a large oil and gas discovery in the Arabian Sea, said Petroleum Minister Dharmendra Pradhan. Replying to a question in Lok Sabha, Pradhan said it was discovered in well WO-24-3 (WO-24-C) drilled west of its prime Mumbai High oilfield. It's estimated to hold in-place reserves of 29.74mn tons. Here's more!
Discovery opens up new area for exploration, development: Pradhan
Minister Pradhan said ONGC identified nine objects/zones; upon testing "all the objects flowed oil/gas". He stated that the ninth object flowed "oil at the rate of 3,310 barrels per day and gas at the rate of 17,071 cubic meter per day." Pradhan also added that the "multi-layered" oil and gas accumulation in the well had opened a new area for exploration and development.
ONGC shares rise by over 2%
Following the reports of ONGC's oil and gas discovery near Mumbai High, the national oil explorer's shares reportedly gained over 2% intraday on the back of the significant Arabian Sea oil find.
Mumbai High annually produces 10mn tons oil
Mumbai High is the biggest oilfield in India. It produces 205,000 barrels of oil in a day - over 10mn tons per annum. The latest oil and gas discovery would help increase Mumbai High's production capacity in about two years. ONGC is reportedly carrying out a further assessment of the discovery and also informed the petroleum and natural gas regulator Directorate General of Hydrocarbons.
Discovery to help ONGC maintain production
The discovery comes four decades after the state-owned ONGC started production in Mumbai High oilfield. Officials said it was a mid-sized discovery yet a significant one. It would help the oil explorer keep up production levels from Mumbai High for much longer than estimated.
Mumbai High accounts for half of India's total oil production
Mumbai High is an offshore oilfield located in the Arabian Sea about 160km west of Mumbai coast. It was discovered in 1974; production began in 1976. ONGC operates the oilfield, which is the oil explorer's flagship oil-producing asset. Mumbai High and other small fields off the Mumbai coast produce 16mn tons of oil per annum - 44% of India's total production of 36mn tons.
ONGC to produce 28-29mn tons oil by 2019-20
The state-owned ONGC has produced 25.5mn tons of oil in 2016-17. Officials say the company would produce 28-29mn tons by 2019-20. A previous report says the Dehradun-headquartered ONGC produces 77% of India's crude oil and 62% of the country's natural gas production.
