Hydrocarbon Reserves Likely Off Andaman Shores
In what may prove to be a breakthrough in the exploration of oil and natural gas reserves in the country, a joint venture speculative survey by the government has shown indications of rich hydrocarbon reserves off Andaman and Nicobar island shores.
Union petroleum and natural gas minister T R Baalu told newspersons here yesterday that the final report of the survey carried out jointly by the directorate of hydrocarbons (DCH) and Western Atlas Inc of the US would be available by March 1997, but the initial trends were quite encouraging.
The report will be sold by November this year to oil companies for carrying out explorations, the minister said, adding that the companies will be able to start production in about four years if successful.
The government will give priority to deep sea exploration during the ninth plan, Baalu said.
The current survey aims at collecting seismic, gravity and magnetic geophysical data over 10,000 line kilometers (lkm) along the Bay of Bengal coasts, he said.
The study, an $11.68 million project with equal funding by the directorate of hydrocarbons and the American geophysical company, was the first such effort of the government to collect preliminary data on the hydrocarbon reserves of the country.
The minister, after visiting the survey vessel M V Western horizon at the Madras harbour, said the seismic vessel would travel all along the eastern coast in search of hydrocarbon reserves.
In fact, some reserves were likely to be verified off Chennai and Cauvery basin coasts too, Baalu added.
Asserting that the joint venture was a low investment option for the government, the minister said the country did not have a vessel of the type required for carrying out such surveys.
It also marked the governments first programme for deep sea exploration which could augment the hydrocarbon availability of the country and save precious foreign exchange.
The supply of seismic, gravity and magnetic geophysical data would encourage more oil companies to go in for exploration, he said.
Collection of preliminary data involved huge amounts of risk capital and timelag which had deterred companies to carry out such exercises, Baalu added.
The project, which was launched on December 12 last year, will be completed by April this year, he said, adding that the profits from the data sale would be equally shared by the company and the government.
Sources in the directorate of hydrocarbons said a few lines (sectors) had been planned as part of the survey to explore the presence of gas hydrates (solidified and highly compressed hydrocarbon reserves).
The technology for tapping the hydrate sources was still in a nascent stage in the world, they said, adding that the current survey was the first attempt in the country to explore hydrate reserves.
The sources said gas hydrate resources in the eastern offshore areas, including the bay of Bengal, could be of the order of 1,000 trillion cubic meters of natural gas.
The hydrocarbon source of the 21st century, these hydrate reserves, if proved, could well make the country self sufficient in natural gas, they said.
They hoped the national oil companies such as the Oil and Natural Gas Corporation (ONGC), Gas Authority of India Ltd (GAIL) and Oil India Ltd (OIL) would carry out more extensive research in the area.
The total sedimentary basin area in the country up to 200 isobath is about 1.78 million sq kms while the area including deep waters is 3.14 sq km.