ONGC rises after overseas arm discovers oil in Colombia

Oil and Natural Gas Corporation (ONGC) rose 1.67% to Rs 137.10 after the company said that its overseas arm, ONGC Videsh, made an oil discovery in the recently drilled well, Urraca-IX, in CPO-5 block, Llanos Basin, Colombia.

On 20 April 2022, the ONGC Videsh dug a well and drilled to target depth of 10,956 feet, encountering 17 feet thick oil bearing sands at a depth from 10,201 feet to 10,218 feet in Urraca-IX in CPO-5 block, Llanos Basin, Colombia.

During initial testing with Electrical Submersible Pump (ESP), fluid flowed at approximately 600 barrels per day with around 40-50% water-cut and oil of 16 degrees API. Oil discovery in the Lower Mirador play in this well will open up new areas for further exploration in the northern part of the block, ONGC said.

Earlier, ONGC Videsh had discovered commercial oil in the lower sand pay in Mariposa and indico fields in the block in 2017 and 2018 respectively, which are currently commercially producing 20,000 barrels per day.

ONGC Videsh holds 70% participating interest (PI) in the block along with operatorship, remaining 30% is held by partner Geopark. ONGC Videsh has a significant presence in oil & gas sector in Colombia, with three other exploratory blocks in the country and joint ownership of the oil producing company Mansarovar Energy Colombia Ltd (MECL).

Maharatna ONGC is the largest crude oil and natural gas company in India, contributing around 71% to Indian domestic production. It has in-house service capabilities in all areas of exploration and production of oil & gas and related oil-field services. The Government of India held 58.91% stake in ONGC as of March 2022.

ONGC reported 31.6% growth in standalone net profit to Rs 8,860 crore on a 62.8% jump in net sales to Rs 34,497.24 crore in Q4 FY22 over Q4 FY21.

Powered by Capital Market - Live News