OVL to Pump $150 m in Colom­bia, Kazakh & B’desh

The Economic Times - - Economy: Macro, Micro & More - Sanjeev.Choud­hary @times­group.com

New Delhi: ONGC Videsh, the over­seas arm of state-run ONGC, plans to in­vest $150 mil­lion in ex­plo­ration this fis­cal to drill more wells in Colom­bia, where it just made a com­mer­cial dis­cov­ery, as well as in Kaza­khstan and Bangladesh. ONGC Videsh, which op­er­ates the CPO-5 block of Colom­bia, has made a com­mer­cial dis­cov­ery in its ex­plo­ration well Mari­posa-1, manag­ing direc­tor Naren­dra Verma has said. The com­pany is now draw­ing up plans for the devel­op­ment of the Mari­posa-1 well that has be­gun a test pro­duc­tion of 4,500 bar­rels per day, he said. The suc­cess has also opened op- por­tu­nity for fur­ther ex­plo­ration in the block. “To chase this lead, we plan to drill two more wells,” Verma said. ONGC has 70% par­tic­i­pat­ing in­ter­est in CPO-5 block in which the re­maing 30% stake in held by Amerisur Re­sources of UK.

ONGC has par­tic­i­pat­ing in­ter­est in a to­tal of six blocks in Colom­bia. This in­cludes a pro­duc­ing block whose cur­rent out­put is 35,000 bar­rels per day.

ONGC has also ac­cel­er­ated its ex­ploratory ef­forts in Kaza­khstan and Bangladesh. Drilling has be­gun in the Kaza­khstan block in the Caspian Sea while prepa­ra­tions are on to drill the first well in Bangladesh. “We are hope­ful Kaza­khstan drilling will end up in suc­cess,” Verma said.

In all, the ex­ploratory ef­fort would re­quire $150 mil­lion of in­vest­ment this

year, Verma said. ONGC Videsh plans to make a to­tal cap­i­tal spend­ing of $1 bil­lion in FY18 in ex­plo­ration, devel­op­ment and pro­duc­tion across projects. ONGC Videsh’s pro­duc­tion jumped

40% in FY17 mainly on 26% stake ac­qui­si­tion in Rus­sia’s pro­lific Vankor fields. The out­put is ex­pected to rise fur­ther 15% in the cur­rent fis­cal to 14.35 mil­lion tonnes of oil equiv­a­lent (mtoe).

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