ONGC seeks MoEF permit for drilling new wells in KG Basin

State-owned ONGC Limited has approached Ministry of Environment and Forest (MoEF) for the permission to drill 24 development wells and to establish production facility in Krishna-Godavari basin, a top official
said today.

The drilling work, after permission, is likely to be taken up in 2015 as the oil and gas major has completely deployed its entire rigs in the KG Basin.

"We have approached the MoEF for permission to drill 24 development wells and establishment of early production facilities  at Malleswaram, in Krishna district of Andhra Pradesh," the official told PTI.

ONGC has completed exploratory drilling in these wells in 2011 and found the results encouraging. "We have planned five development wells at Malleswaram. Of this three were successful.. we will be setting up EPFs
there," the official added.

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As the oil and gas major already conducted all formalities for these well earlier, the MoEF may not insist on conducting public hearing once again, the official said.

The drilling activity on the development wells will be taken up initially in one kilometre radius and gradually increased, the official added.

"Currently we have rigs deployed for development wells and another five for exploratory wells. We are seeking two more rigs due to the pressure on production targets. "Every year we plan for ten wells and our hands are tight for next year also. The work in these 24 wells will be taken
up only after that. However, if any of the well looks more promising drilling can be taken up even early," the official said.

On setting up Early-production facilities (EPFs) at Malleswaram, the official said the EPFs will help bring new discoveries on-stream fast and the system also provides real-time production data that can help the operator appraise reservoir performance before installing more-expensive
long-term facilities.

EPFs can also be used for small reserves that would be financially risky or uneconomical to produce with a permanent production facility.

The daily output of ONGC in KG Basin fields stands at 840 tonnes of oil per day and 3.5 million metric standard cubic metres per day (MMSCFD) of gas.