Vedanta Makes Oil Discovery In Krishna-Godavari Block
The travelling block operates beside drill pipe sections on the derrick of a drill rig during oil drilling operations (Photographer: Andrey Rudakov/Bloomberg)

Vedanta Makes Oil Discovery In Krishna-Godavari Block

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Vedanta Ltd. announced an oil discovery in its Krishna Godavari basin block in the Bay of Bengal.

In a statement, Vedanta said that it had notified the Directorate General of Hydrocarbons and Ministry of Petroleum and Natural Gas of an “oil discovery in the second exploratory well H2, located in the block KG-OSN-2009/3, Krishna-Godavari Basin, East Coast of India.”.

“Multiple reservoir zones were encountered in the well H2 within the Mesozoic sequence between the depths of 3,310 metres to 4,026 metres with hydrocarbon indications during drilling and downhole logging,” it said.

The block previously had a gas discovery in the very first well that the company drilled. Vedanta holds 100 percent participating interest in the block.

The zone from 3,403 metres to 3,431 metres was tested through conventional well testing and flowed oil to the surface. “Further appraisal will be required to establish the size and commerciality of the oil discovery,” Vedanta said.

The first exploration well A3-2 drilled in the block was a gas discovery. “Evaluations are ongoing based on the results of the first well A3-2 and the second well H2 to finalise the forward programme,” it added.

Cairn India, the company Vedanta bought and merged with itself, had in June 2010 won the KG-OSN-2009/3 block in the eighth round of New Exploration Licensing Policy.

It had committed to drill six exploratory wells on the block. These were expandable to 10.

The KG basin is a proven basin where there have been many hydrocarbon discoveries.

The company acquired around 1,000 square kilometres of 3D seismic data based on which it drilled two wells.

KG-OSN-2009/3 offshore block in the Bay of Bengal was originally spread over in an area of about 1,988 sq km which was later reduced to 1,298 sq km due to exclusion of area within firing range. It is located in the shallow waters of the Indian Ocean along the East coast of India, approximately 1.5 km from the Indian coastline.

Also read: Cairn Holding In Vedanta Down To 0.1% After Tax Department Sells 99% Shares

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