ONGC Videsh Ltd, the overseas investment arm of state-owned Oil and Natural Gas Corporation (ONGC), on Thursday said it has spud the first well in an offshore block in Bangladesh, marking the start of an exploration campaign to find oil and gas. “Well Kanchan#1 in Block SS04, Bangladesh was spud on September 29 at Maheshkhali Island. This exploratory well is planned to be drilled to a depth of 4,200 meters and will be targeting two prospective formations,” the company said in a statement.
This well will be followed by drilling at two more exploratory locations.
OVL, in consortium with Oil India Ltd (OIL), was awarded two shallow offshore Blocks SS-04 and SS-09 in Bangladesh during the Bid Round of 2012.
The production sharing contract (PSC) was signed between OVL, OIL and Bangladesh Petroleum Exploration & Production Company Limited (BAPEX) in February 2014.
OVL with participating interest (PI) of 45% is the operator. OIL has 45% interest, and BAPEX holds the remaining 10%.
BAPEX is being carried equally by ONGC Videsh and OIL up to the commercial discovery stage.
“All pre-drilling activities were completed with the rig being on location in late 2019 and with spudding scheduled for March 2020. However, the drilling had to be deferred due to the COVID-19 pandemic.
“After the easing of restrictions and resolving the issues owing to deferment of initial plans, in September 2021, the drilling of well has commenced on September 29, 2021,” the statement said.
