Date:17/08/2006 URL: http://www.thehindubusinessline.com/2006/08/17/stories/2006081704560200.htm

ONGC betting on identified marginal oil reserves

Pratim Ranjan Bose

Also planning to re-develop Heera oilfield

Kolkata , Aug. 16

Having failed to strike major reserves in recent years, ONGC is trying to make the most of the identified marginal oil reserves. After preparing a roadmap for developing C-series marginal reserves, ONGC is now planning to develop a cluster of B-series marginal fields on the fringes of Mumbai offshore. Also on cards is re-development of the ageing Heera oilfield.

Company sources told Business Line that ONGC has already approached the Director-General of Hydrocarbons (DGH) for necessary approval for developing four platforms in B-series marginal fields.

While the recoverable reserves will be finalised by the DGH, the total project cost for developing the platforms is estimated at approximately Rs 3,000 crore.

"We are expecting to receive the approvals next month, following which the proposal would be placed for Board clearance," a company official told Business Line.

ONGC is also in the final stages of preparing a re-development plan for Heera oilfield using enhanced and improved oil recovery (IOR/EOR) techniques. Producing very high quality Bonny Light variety light-sweet crude, Heera is currently producing at the rate of 45,000 barrels per day.

The exploration and production major has 96 identified small or marginal reserves including 53 in the offshore. The total estimated reserves are 200 million tonnes of oil and 120 billion cubic metres of gas.

As high crude prices have made development of these fields profitable, the company has recently announced a Rs 3,195 crore development plan for eight C-series marginal fields near Daman for producing three million metric standard cubic metres (mmscmd) of gas per day by December 2008.

The company is currently in the process of floating tenders for drilling 17 productions wells and eight platforms in the said reserves.