ONGC to add eighth Basin on production; stock up ~1%

1 Apr 2022 , 02:29 PM

Oil and Natural Gas Corporation Limited (ONGC) is all set to commercialize another Basin — the Vindhyan Basin. This will be the ninth producing Basin in India, and the eighth by the company. This is followed by the country’s eighth Basin — Bengal Basin — in December 2020.

Exploratory well Hatta#3, established in the Son valley sector of Madhya Pradesh, was drilled to establish the commercial potential through detailed testing to acquire reservoir-specific data. The well produced over 62,044 cubic meters/day of gas, thus confirming the production potential of the Proterozoic Basin for the first time in India.

The testing activities were supervised by R K Srivastava, Director (Exploration) of ONGC on March 29, 2022.

Looking back, the active exploration of the Vindhyan Basin began with the acquisition of seismic data in the late 1980s. The first basin Jabera was drilled in 1991, which produced gas of around 2000 cubic meters/day. ONGC’s perseverance spanned over the next 25 years, with the drilling of 26 exploratory wells in the Son and Chambal valley sector of the Vindhya Basin, notwithstanding 14 of them providing sub-commercial gas flows in the Son Valley.

The company believes that finally, its continual efforts have paid off the Vindhyan Basin is close to becoming the ninth producing Basin of India.

ONGC is currently trading at Rs167.10 up by Rs3.2 or 1.95% from its previous closing of Rs163.90 on the BSE.