Connect with us

Business News

ONGC Videsh launches its first oil, gas exploration drilling operation in Bangladesh

Published

on


ONGC is a wholly owned subsidiary of Videsh Oil and Natural Gas Corporation Limited.

New Delhi: ONGC Videsh Limited (OVL) on Thursday announced that it has started exploration of a well in an offshore block in Bangladesh. OVL has become the first Indian entity to explore oil and gas in the neighboring country. ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), India’s leading national oil company.

The Ministry of Petroleum and Natural Gas said in a statement, “OVL has blown well Kanchan 1 in Bangladesh’s Block SS04 on Maheshkhali Island. This exploratory well is planned to be drilled to a depth of 4,200 meters and has two potential targets. There will be structures.”

This marks the start of exploratory drilling in Bangladesh by ONGC Videsh and will be followed by drilling at two more exploratory locations.

“OVL, in consortium with Oil India Limited (OIL), was awarded two shallow offshore blocks SS-04 and SS-09 in Bangladesh during the 2012 bid round. Production sharing contract between ONGC Videsh, OIL and ( PSC) was signed by Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) in February, 2014,” the ministry said.

It also mentioned that OVL, with a Participating Interest (PI) of 45%, is the operator; Oil India holds 45% PI and BAPEX holds the remaining 10% PI. OVL and Oil India are equally bearing the BAPEX portion of the exploration cost till the commercial exploration stage.

The ministry also said that the pre-drilling activities were completed in late 2019 and with spading scheduled for March 2020, but the process had to be postponed due to the COVID-19 pandemic.

OVL said that after resolving the issues due to easing of restrictions and postponing of initial plans, in September 2021, drilling of the well has commenced on 29 September 2021.

.

Copyright Indian Lekhak Limited 2021. All Rights Reserved