ONGC plans launch oil and gas exploration in Andaman

ONGC plans to launch the drilling campaign in the Andaman offshore after the monsoon and is currently engaged in talks with ExxonMobil and Shell to involve them in the project.

ONGC is expected to drill 3-4 wells under the special programme funded by the government in the Andaman Sea, with each well costing about Rs 350-400 crore.

The government has acquired 22,500-line kilometre of 2D seismic data under its “National Island Exploration Project” over the area classified as “No-Go” zone and is planning to fund the drilling of a few assessment wells in these areas.

ONGC has studied the data but wants a third-party assessment by foreign companies with deep-water experience.

It plans to engage global companies or consultants for an assessment of the Andaman basin, petroleum system modelling studies and de-risking of identified prospects prior to drilling.

ONGC has initiated discussions with ExxonMobil and Shell to seek their views on the Andaman prospects as well as to rope them in as partners if they show interest in the project.

ONGC already holds two blocks in the Andaman waters awarded under open acreage licensing rounds. Apart from this, ONGC and Oil India also have one block each, won in licensing rounds years ago, in the Andaman offshore. Easier clearances will help the two companies make faster progress in their respective blocks as well.