Cheap Oil Prompts ONGC’s Biggest Crude Exploration Binge - Bloomberg
▻http://www.bloomberg.com/news/articles/2016-06-20/cheap-oil-prompts-ongc-s-biggest-ever-crude-exploration-binge
Oil and Natural Gas Corp., India’s biggest explorer, is preparing to spend on its biggest ever crude binge as sub-$50 oil halves the cost of rigs and services.
State-run ONGC is contracting as many as five deepwater drill ships and dozens of jack-up rigs as it launches a $5-billion development program in the Krishna-Godavari Basin off the east coast of India, Chairman Dinesh Kumar Sarraf said in an interview. The company wants to make use of the drop in hiring rates for vessels and oilfield services to lower costs and boost profit, he said.
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The company expects to start gas output from the KG-basin block by mid-2019 with a peak production of 15 million standard cubic meters a day. Crude oil output will begin a year later and may go up to 77,000 barrels a day.
