Page 6 - AsianOil Week 46

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ONGC revises down KG- D5 production guidance
PROJECTS & COMPANIES
INDIA’S state-run Oil and Natural Gas Corp. (ONGC) has revised down its production guid- ance for the ultra-deepwater KG-DWN-98/2 (KG-D5) block by up to 20%.
The company has said it expects to produce 32-34bn cubic metres of gas from the block, which lies in the Krishna Godavari (KG) Basin, by financial year 2023-2024. This is down from its previous projection of 38-40 bcm.
While the company has not given a reason for the revised forecast, local business daily LiveMint quoted an unnamed company official as saying the new target was the result of greater reservoir complexity than expected, as well as the overall size of the development.
ONGC intends to invest $5bn in developing KG-D5, which is classed as a high-temperature, high-pressure (HTHP) field. As such, the com- pany will be able to market the field’s production freely without state-mandated price constraints. The government introduced the incentive as part of a wave of upstream reforms designed to attract investment in deepwater projects.
ONGC expects to begin production from the block in December and has begun seeking buy- ers for the gas, auctioning 755,000 cubic metres per day of gas for three years. The company has set a reserve price of $5.61 per mmBtu ($155.17 per 1,000 cubic metres) with the minimum bid quantity set at 50,000 cubic metres per day.
India’s developers are betting big on the coun- try’s deepwater plays, given that onshore fields have matured and are mostly in decline, with limited upstream prospects.
In the neighbouring KG-DWN-98/3 (KG- D6) block, Reliance Industries Ltd (RIL) and BP are gearing up to begin production from the R-cluster in April 2020. It is a significant turna- round for the block, which had been in decline for years. The company had previously refused to invest in exploration and development owing to low state-capped prices that made the challeng- ing field economically unviable.
News agency PTI reported on November 17 that the partners had sold the majority of the block’s initial gas production – 5 mcm per day – to Essar Steel, Adani Group and state- run GAIL (India).™
Pertamina oil spill reappears off West Java
SOUTHEAST ASIA
PROJECTS & COMPANIES
INDONESIA’S state-owned Pertamina has said an offshore oil spill, originally thought to have been contained at the end of September, is leak- ing once more.
West Java Province’s Environment Office revealed on November 15 that it had received reports of oil appearing once more in the waters off Karawang Regency. The original leak came from the Offshore North West Java (ONWJ) block, which lies just 2km north of Karawang.
The vice president of relations for block oper- ator Pertamina Hulu Energi (PHE), Ifki Sukarya, confirmed the reports, saying: “Owing to the extreme weather at sea, oil chunks collected from theplatformandrigslippedoutoftheoilboom.”
Sukarya added: “Our team is still on the field to clean up the oil spill.”
A gas kick occurred at ONWJ’s re-activated YYA-1 well on July 12 and worsened two days later, leading to an oil spill that contaminated the shores of at least 13 villages, according to envi- ronmental observers.
YYA-1 had not been brought on stream, but had been expected to produce 3,000 bar- rels per day (bpd) of crude and 20-40mn cubic feet (566,000-1.12mn cubic metres) per day of natural gas in September. The company isolated two other wells at the field that were waiting to be reactivated and said these would not be con- necteduntilaftertheresultofaninvestigation.
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w w w . N E W S B A S E . c o m Week 46 20•November•2019