ONGC Videsh strikes oil in Colombia block

ONGC Videsh (OVL) is the operator of the block with 70% stake while its partner Geopark holds the remaining 30%.

OVL, the wholly owned overseas arm of ONGC, on Friday announced that it has made a "significant" strike of oil in its onshore block CPO-5 in Llanos Basin in Colombia. This is the fourth commercial find in the block by OVL.

The well Indico-2 lies approximately 0.9 km northwest of the well Indico-1 in subsurface and was spudded on 21 September 2020. The target depth of 10,925 ft reached on 20 October 2020. Currently the well is flowing under short term testing with multi bean study for further evaluation, it added.

The light oil was discovered in the first well Indico-1X in the Indico field during December 2018, and to-date it has demonstrated a sustained flow at 5200 BOPD with a cumulative production of over three million barrels of oil so far.

CPO-5 is a large onland block covering 1,992 square kilometer (SKM) and offers exploratory and appraisal opportunities. OVL now plans to drill more wells to explore other plays in the block in immediate future.

OVL holds participating interest in seven exploratory blocks in Colombia in addition to two producing blocks with 50% stake in a joint venture company Mansarovar Energy Colombia.

OVL owns participating interests in 37 oil and gas assets in 17 countries and produced about 30.3% of oil and 23.7% of oil and natural gas of India's domestic production in 2019-20. In terms of reserves and production, OVL is the second largest petroleum company of India, next only to its parent ONGC.

ONGC is 60.41% owned by the Government of India (as on 30 September 2020).

The state-run oil major's consolidated net profit fell 19% to Rs 4335 crore on 17.7% decline in net sales to Rs 83,619.16 crore in Q2 September 2020 over Q2 September 2019.

Shares of ONGC rose 1.3% to close at Rs 89.85 on Friday.

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