India News
Search Web Directory
 India News  
News Home
Good news for country: ONGC finds this major clue in Kutch
Posted on 6th October 2017
In what the company is terming the “first direct evidence” of hydrocarbon reserves in the Kutch offshore basin, state-run ONGC has come across flows while drilling the GK-28-12 well. “Though 700 metres are more to be drilled, we are getting flows and are hopeful to get more. There is possibility of oil and gas reserves or at least there is evidence of them passing through the area,” said an ONGC executive requesting not to be named.

The Gulf of Kutch will be the first basin to start producing after the Cauvery basin more than 30 years ago, and open up a new basin for oil and gas production, helping the government achieve the target to reduce imports by 10% by 2022. India has 26 sedimentary basins, but only 7 — Assam, Cambay, Krishna Godavari, Mumbai Offshore, Assam-Arakan Fold Belt, Rajasthan and Cauvery — have commercial production of oil and gas.

The development comes close to reports in September that ONGC has discovered hydrocarbon reserves west of Mumbai High at well WO 24-3 with in-place reserves of around 20 million tonnes of oil equivalent.

“We are trying to enhance the potential of the Kutch basin to make it commercially viable. We want to establish 1 tcf (trillion cubic feet) of gas and there is a possibility of achieving that much,” said the executive, adding that there is little oil but substantial gas reserves in the region. However, the actual potential would be known after tests are conducted. The executive added that development work is at an advanced stage and simultaneously, the company plans to increase the potential.

The national oil explorer is at present developing GK 28 and GK 42 on the southern side for production, which the company expects to start within two-three years. Though ONGC’s oil production has been falling over the years, its gas production has fluctuated. It produced 23.28 billion cubic metre (BCM) of gas in financial year 2016-17 and plans to achieve a production of 25 BCM in the current financial year.

The executive, however, said pricing of gas is a hurdle in developing such fields. After 5 consecutive fall in gas price that could be charged for shallow fields, natural gas price last week was revised to $2.89 per unit for the October-March period compared with $2.48 for the April-September period. The Kutch basin is a shallow water find. “The issue is with gas pricing. Gas price needs to be $5 to make gas exploration viable in shallow water,” said the executive.

The price ceiling for gas from difficult fields has been revised to $6.30 per unit from $5.56 earlier, a jump of 13%. The Central government uses a formula linked to rates in some of the key gas markets across the globe to determine price for domestic gas.

A note released by Icra on Tuesday said, “The gas price remains well below the average cost of production for many producers for a sustained period, leading to losses, which has forced the industry to seek a floor price for the modified Rangarajan formula from the GoI.” However, it adds that the domestic gas price increase is negative from the consumers’ perspective.

Related Companies: Oil and Natural Gas Corporation Limited (ONGC)   

Other Latest News
Mumbai: The Indian rupee strengthened against the US dollar ahead of the exit poll predictions of Gujarat election on Thursday.

At 2pm, the home currency was trading at 64.31 a dollar, up 0.20% from its Wednesday’s close of 64.44. The rupee opened at 64.32 a dollar and touched a high and a low of 64.25 and 64.33, respectively.

Power equipment maker Bhel said today that it has won a Rs 7,300 crore order for setting up a Supercritical Thermal Power Project (TPP) in Tamil Nadu.

The order for setting up the 2x660 MW Udangudi TPP has been placed on the state-owned firm by Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO), Bhel said in a statement.

If you are an advertiser on Facebook, you now have a bigger audience to cater to as Facebook has launched a click-to-WhatsApp button on its platform that will let advertisers connect with over one billion WhatsApp users.

Facebook that has over two billion users confirmed this to TechCrunch on Friday that it is rolling out the feature gradually, starting with North and South America, Africa, Australia and most of Asia.

NEW DELHI: The equity markets on Friday despite heavy selling in the last hour of trading, managed to close with solid gains.

30-share BSE Sensex closed on 33,462.97, up by 216.27 points while the broader 50-share NSE Nifty gained 81.15 points to finish on 10,333.25. Both the indices gained 0.70 per cent during the day.

Mumbai: The Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) are in consultations to give a boost to interest rate futures (IRF) which is currently struggling under low volumes, Sebi chairman Ajay Tyagi said on Thursday.

“With RBI we are re-looking at IRF which is currently seeing less traction,” Tyagi said at the NSE-NYU conference on Indian Financial Markets in Mumbai.

» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for Good news for country: ONGC finds this major clue in Kutch
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Security Code*

Be the first person to write a business review for Good news for country: ONGC finds this major clue in Kutch

Most Read News

Government may raise protection on bank deposits

Bad loans: HDFC Bank says no impact of ‘couple of defaulters’ in RBI list on provisioning

Microsoft issues patch for bug in Windows Malware Protection Engine

Bitcoin tumbles 20% in 10 hours, after gaining 40% in 2 days

Rupee closes higher against US dollar, bond yield at 15-month high

More India News

Photo Gallery

Mukunda(13 Images)Mukunda
Tata Bolt(12 Images) Tata Bolt
Tata Prima(11 Images)Tata Prima
Tamasha(13 Images) Tamasha
  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
About us
Link to us
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory, India Free Classifieds
    © 1999 - 2017
    All Rights Reserved
Privacy Statement    
    © 1999 - 2017
    All Rights Reserved
Privacy Statement