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