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Oil and Natural Gas Corporation (ONGC), will start its biggest ever exploration in Mahanadi basin area this fiscal to find out ways for commercial exploitation of fuels, said its chaiman cum managing director Dinesh K Sarraf, at an event here.
The exploration work in Mahanadi basin is going to be approved in next few weeks,he said at the inauguration ceremony of the company's branch office in the city.
According to information mentioned on the website of Directorate of Hydrocarbon, the Mahanadi basin has similar geological characteristics that of Krishna-Godavari basin. A previous survey conducted by ONGC says the area can have 80 billion cubic meters (BCM) natural gas.
The area was also explored by Reliance Industries Ltd and Biritish Petroleum (BP), but no progress has been made so far.
Though the natural gas major had found traces of the fuel in Mahanadi basin earlier, it had abandoned the project citing commercial unviability. It has recently shown interest to invest in the area as cost of exploration technology has come down due to slump in energy prices globally.
"The answer to the question of recovering cost of production is always uncertain as it can go either way depending upon the market. It (Mahanadi basin exploration) will be a big project this time as we will explore all possibilities to find out the gas," added Sarraf.
Recently, ONGC said it will invest around Rs 14,000 crore this fiscal for exploration of natural gasses across the country.
Sarraf said, Odisha will have its share from the investment plan, however, declined to comment about exact amount to be spent this year.
The company has not chalked out any detailed plan to carry out the operation and said, it could rope in foreign partner , if needed to assess the gas reserve.
"We have not thought of it yet, we will decide about partnering with someone if situation arise so," said Ajay Kumar Dwibedy, director (exploration) of ONGC. In the meeting, petroleum and natural gas minister, Dharmendra Pradhan said, close to Rs 1 lakh crore investment in hydrocarbon sector will take place in next 5-7 years in Odisha in terms of petroleum refinery and petro chemical complex, LNG terminal, etc.
