State-owned ONGC Ltd. has approached Ministry of Environment and Forest (MoEF) for the permission to drill 24 development wells in Krishna-Godavari (KG) basin and to establish production facilities at Malleswaram in Krishna district of Andhra Pradesh, report said, quoting a top company official.
The drilling work, after permission, may be taken up in 2015, as the oil and gas major has completely deployed its entire rigs in the KG Basin.
ONGC has completed exploratory drilling in these wells in 2011 and found the results encouraging.
"We have planned five development wells at Malleswaram. Of this three were successful.. We will be setting up EPFs there," the official added.
The drilling activity on the development wells will be taken up initially in one kilometre radius and gradually increased, the official said.
At present, the company has rigs deployed for the development wells and another five for exploratory wells. It may seek tow more rigs due to the pressure on production targets.
On setting up Early-production facilities (EPFs) at Malleswaram, the official said, the EPFs would help bring new discoveries on-stream fast and the system also provides real-time production data that can help the operator appraise reservoir performance before installing more-expensive long-term facilities.
EPFs can also be used for small reserves that would be financially risky or uneconomical to produce with a permanent production facility.
The daily output of ONGC in KG Basin fields stands at 840 tonnes of oil per day and 3.5 million metric standard cubic metres per day (mmscfd) of gas.
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