ONGC discovers oil in eastern offshore of Andhra

State-run Oil and Natural Gas Corporation (ONGC) today said it has made a significant oil discovery in an eastern offshore acreage in Andhra Pradesh it had got from government on nomination basis.

ONGC struck oil at Block IG at a water depth of 225 meters in well G-4-6, 15 kms off Yanam coast in Andhra Pradesh, the company said in a press statement here.

"Three hydrocarbon bearing sands have been encountered in the gross interval 3,757 meters to 4,185 meters based on geological data, log evaluation and one mini-Drill Stem Test carried out on September 30 and October 1, 2008. The thickest sand interval (4,1084,185 meters) comprises 55 metres of net oil pay," it said.

However, the company did not state the quantum of in place reserves it had encountered.

The discovery is the most significant find after the ultra-deep sea UD-1 gas discovery in Krishna-Godavari basin in December 2006.

The discovery at G-4-6 "augurs well as it marks the ONGCs determined efforts to put the KG offshore to new and higher levels of oil production", it said.

ONGC plans a fast-track hub development programme, clustering geographically proximal encouraging finds including a mix of older finds like G-2 & GS-29 with latter finds like Padmawati, Kanakadurga, and a slew of other discoveries using a common production facility like an FPSO.

This is expected to be on course with an initial rate of 20,000 barrels per day by 2012-13, which is expected to peak to around 1,50,000 barrels per day by 2016-17, ONGC said.