ONGC Videsh to drill well in a shallow water block in Bay next year

The Indian state-owned Oil and Natural Gas Corporation (ONGC) Videsh Ltd plans to spud an exploratory well in shallow water Block SS-04 next year, according to the Energy division.
"ONGC had completed a 2D seismic survey over two Bay of Bengal blocks and plans to drill a well in Block SS-04 near Moheshkhali under Cox's Bazar District," a senior official of Energy Division told the Daily Observer on Wednesday.
ONGC Videsh operates 7,226sq km Block SS-04 and holds a 45 per cent interest in the production-sharing contract. Other partners are Oil India Ltd and state-owned Bangladesh Petroleum Exploration and Production Company (BAPEX). Oil India Ltd obtains 45 per cent while BAPEX 10 per cent.
"They submitted a proposal to us to establish roads near the location called Kanchan, under cox's Bazar. following that they will move the rig there and make a pad for drilling," the official said.
India's Oil and Natural Gas Corporation Ltd (ONGC) gets blocks 4 and 9 under the Bangladesh Offshore Bidding Round 2012. The two Indian companies signed a contract with the Bangladesh government and Petrobangla to carry out hydrocarbon exploration work in two shallow blocks of the Bay of Bengal on February 17, 2014.
The two companies will invest USD 144.8 million in the two blocks--SS-2,700-km in SS-4 and 2,850-km in SS-9. This is the first time that firms from the neighbouring country have signed offshore drilling deals with Bangladesh. The ONGC and Oil India have offered to invest USD 58.4 million to conduct a 2D seismic survey of 2,700 line-km, a 3D seismic survey of a 200 sq-km area and drill two wells in Block 4. According to the deal, the government's profit-sharing ratio for the block will be 60-85 per cent for gas and 70-90 per cent for oil.
"For both blocks, the contract period is eight years, the first five years to be spent on preliminary exploration. The companies are obligated to use a maximum of Bangladeshi working hands, gradually increasing to 50 per cent during the exploration phase and to 90 per cent by the 10th production year, so we are moving as per agreement," a Petrobangla official said.
The government expects to increase supply of natural gas by 250 million cubic feet per day once the drilling was completed.  
Now, Petrobangla supplies approximately 2,750 mmcfd of natural gas against a demand for more than 3,700 mmcfd, according to official data.
"ONGC will have to drill at least one (two in blocks having area more than 200 sq km) well for assessment of gas and oil in each of these blocks by 2018. We got three prospective areas in 2D survey, everything would be clear by next one and a half years," the official added.