NEW DELHI, Jan 2: With production continuing to plateau in most of its existing fields, ONGC is now trying its luck in the country's deep waters.It has finalised an agreement with Sedco Forex of the US to operate and maintain its rig for deep-sea drilling beginning this month. Sedco, which is to be paid $ 28,000 (Rs 11 lakh) per day, was the lowest of three global bidders - the highest bid was for $33,000 per day.
ONGC own rig, Sagar Vijay, which is to be used for this purpose is currently being upgraded at the Cochin Shipyard and is expected to be ready for use within a couple of weeks. Sagar Vijay, according to ONGC, can be used for drilling in waters upto 900 metres deep, though the first well will be at a depth of 400 metres.
ONGC officials told The Indian Express that while the rig belonged to them, they did not have the expertise to do deep-water drilling - that is why they have entered into this agreement.
While ONGC has signed a one-year contract with Sedco so far, it plans to drill four
exploratory wells over a period of two years. The first two wells will be drilled in the Kerala Konkan area, the third in Bombay offshore and the fourth in the Krishna Godavari area on the east coast.
According to experts, ONGC badly needs to find fresh oil reserves as its reserves accretion -- that is, new discoveries of oil -- has been very poor.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
