Over the past several months OIL has been working in an effort to identify and secure drilling opportunities in the north east acreage, sources added. The company, which is currently undertaking the minimum work programme under Phase-I in the block, has shot about 100 kms of 2D seismic data in relation to its exploration objectives.
OIL, which recently filed for a six month extension in the block, has cited difficult terrain as the main reason for falling short of its committed work programme in the block. The first extension of 14 months was granted to the company on account of a delay in the grant of statutory environmental clearances by the government.
As part of its minimum work programme commitments the contractor consortium is required to conduct:
- Geochemical surveys of 100 line kilometres
- Technical assessment and geological modelling
Oil India Ltd. is also planning to expedite its drilling commitments in the Krishna Godavari block KG-ONN-2004/1. Earlier, the state-owned exploration firm was planning a simultaneous 3D seismic survey, and a drilling programme in April, 2010. But the energy firm has decided to go ahead with its drilling commitments as it already has the requisite 2D seismic, and geo-scientific data, which is required for determining the drilling prospects in the acreage.
'We are planning on drilling the first two of the committed twelve wells in the block by the end of this year. The wells will be dug to a depth of approx. 1,800-2,500 meters. 3D seismic survey will also be conducted alongside, so that the new locations can be identified for multiple drilling prospects in the block,' revealed some highly placed OIL sources.
So far, OIL has not been able to start its exploration and production (E&P) activities in the block as 38 sq kms of the block area falls in the Union Territory of Pondicherry, in which the Andhra Pradesh Petroleum Exploration Licence (PEL) is not applicable. This has led to deferring of the mobilisation of field crews and other exploration equipment in the block.