ONGC Videsh Limited, a wholly-owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), started its exploratory drilling campaign at its first well Kanchan #1 in Block SS-04, Maheshkhali Island, Bangladesh, on September 29.
“This exploratory well will be drilled to a depth of 4200 m and will target two prospective formations. It marks the beginning of exploratory drilling in Bangladesh by ONGC Videsh and will be followed by drilling at two more exploratory locations,” the company said in a release issued on September 30.
It said all pre-drilling activities were completed with the rig on location by late 2019 and spudding scheduled for March 2020. However, the drilling had to be deferred due to the Covid-19 pandemic. After the easing of restrictions and resolving issues owing to deferment of initial plans, the drilling of the well was started on September 29.
ONGC Videsh, in consortium with Oil India Ltd. (OIL), was awarded two shallow offshore Blocks SS-04 and SS-09 in Bangladesh during the bid round of 2012. The Production Sharing Contract (PSC) was signed between ONGC Videsh, OIL and Bangladesh Petroleum Exploration & Production Company Limited (BAPEX) in February, 2014.
ONGC Videsh, with a participating interest (PI) of 45 per cent, is the operator with OIL (45 per cent PI) and BAPEX (10 per cent PI) as the other partners. Capital expenditure is being carried equally by ONGC Videsh and OIL up to the commercial discovery stage.
