Low oil prices right time to explore deep water blocks: ONGC

New Delhi (IANS) State-run explorer Oil and Natural Gas Corp (ONGC) said on Tuesday that in order to best benefit from low exploration costs resulting from falling international oil prices, the focus should be on exploration in frontier and deep water blocks where the lead period is 7 to 8 years.

“This is a time for reserves-building in areas where the lead time is more than 7-8 years and incentivizing exploration activities in frontier and deep water areas,” said ONGC’s executive director, exploration, Anand Sahu at the India Energy Forum and Observer Research Foundation-organised Petro India Conference.

“If focus is laid on extensive data acquisition in the unexplored sedimentary basins during the period of global low exploration costs, reserves that will be accreted can be profitably harnessed during the next cycle of boom.

“The investment levels over the next several years in the oil sector will be significantly lower than the previous 10 year annual average in view of fall in oil prices and relationship between oil prices and upstream investment,” he added.

Noting that nearly all the major oil and gas companies have reduced their capital investment budgets for 2015 and are delaying new projects, Sahu said that with oil prices having plunged to below $30 a barrel levels, the capital available for exploring new basins is tightening, which makes it a daunting task for India to reverse the investment trends in upstream sector.

In this connection, he also said that the government has allowed exploration of shale gas and shale oil by ONGC and Oil India.

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of www.mangalorean.com or any employee thereof. www.mangalorean.com is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of www.mangalorean.com to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at  info@mangalorean.com. Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here