Date:27/02/2007 URL: http://www.thehindubusinessline.com/2007/02/27/stories/2007022702060300.htm

ONGC produces crude from marginal field

Richa Mishra

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New Delhi Feb 26 ONGC has produced close to half a million tonnes of crude oil from its marginal field of Bassein and Satellite (B&S) asset in the Mumbai offshore area in its first year of production.

"The D-1 field has completed a year of crude oil production with cumulative oil production of 4,05,627 tonnes till date," a senior ONGC executive said.

The company has already dispatched more than 3,94,174 tonnes of crude oil to MRPL.

ONGC, which has been facing flak from all quarters for its performance, has been able to produce from a field that was discovered the same time as the Bombay High in 1974 (which has been producing since 1976) and was left undeveloped by oil experts as they thought it was not feasible.

Speaking to Business Line, the ONGC executive said that this success has made marginal fields look more attractive and lucrative, especially at current crude price levels.

The D-1 marginal field is located in the deep continental shelf area of Mumbai offshore with an aerial extent of 255 sq km and average water depth of 82 m. It is the farthest field from the shore.

The production of first oil from the D-1-P-3 well started on February 8 last year after commissioning of new digital control system (DCS) for process control.

Subsequently, two producers and four injectors were added during the first phase of the D-1 field development.

The quality of crude from the field is sweet. The development of the D-1 marginal field commenced with the spudding of the first development well on December 22, 2005.

The floating rig, EPS Sagar Laxmi, was docked and bridge connected to the D-1 platform for processing crude oil. The Bassein block is primarily known for sour gas.

The company has set a target of 18,000 barrels per day of oil from the field. The total in-place reserve of crude oil is more than 19 mt, of which 4.45 mt is recoverable.

ONGC has been looking at increasing production with the implementation of development schemes in several fields.

It does not require the Directorate-General of Hydrocarbons certification for the finds, as these are in marginal fields.

Currently, ONGC and Oil India Ltd account for 87 per cent of the country's total crude oil production.

ONGC has been implementing enhanced schemes for oil recovery and improved oil recovery for improving production from its existing fields, including development of Mumbai High.