ONGC gets shale gas indication in West Bengal

Oil and Natural Gas Corporation (ONGC) has found shale gas indication from the shale gas pilot R&D project in West Bengal.

"We have got shale gas indication from the first well we had drilled. However, we cannot tell any further details now, as tests are not yet over," a top ONGC official told PTI on condition of anonymity from Ranigunj drilling site.

"Now, first test of first zone has begun and the data is been analysed in India and US. There will be total four tests of four zones of the same well and after that only we can give some better picture of the findings," he added.

ONGC has taken up the R&D project primarily "to promote shale gas exploration in the country".

West Bengal remained on the ONGC's radar after repeated failure to hit gas and oil prospects in the state under Bengal offshore basin.

If the results of the first well comes prosperous then three more wells would be drilled.

ONGC engineers and technical staff had started first shale gas well exploration in the state from September 2010.

Potentiality of shale gas--underground rock formations that hold reserves of oil and natural gas, is huge in West Bengal, the ONGC researchers believe.

The project is supposed to be completed before August 2011, which is also the Centre's deadline for auctioning these exploration assets.

Drilling four pilot production wells in West Bengal and Jharkhand will cost approximately Rs 170 crore as against the original estimates of Rs 128 crore in March 2010. ONGC has awarded the project to Terra Tek of Schlumberger.