ONGC reports of oil discoveries at exploration blocks located in Colombia and Brazil

ONGC Videsh which is wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC) has reported of oil discoveries in its onshore exploration block CPO-5 in Colombia located in the Llanos basin and major gas in the deep offshore exploration block BM-SEAL4  in Brazil located in the Sergipe Alagoas Basin.

In Colombia, the encountered oil bearing sands of 8 meters at a depth of 2852 meters. The discovery confirms the extent of oil pay further south of the block. With the wells under production, ONGC Videsh as an operator holds around 70 per cent participating interest (Pl) in CPO-5 block, the rest 30 per cent PI is owned by Petrodorado South America S.A., Sucursal (PDSA), Colombia.

In Brazil, after completion of drilling of the well Maita Bonita-2 in deep offshore area (block BM-SEAL4) at a water depth of 2629 meters, gas bearing sand of total thickness of 39 meters at the depth of 5227 meters and oil bearing sand of total thickness of 24 meters at deeper depths was encountered. The results of the Drill Stem Test (DST) which was performed in the area showed good production from the reservoir. ONGC Videsh holds around 25 per cent PI while Petrobras is the operator holding about 75 per cent Pl.

In oil & gas sector of Brazil and Colombia, ONGC maintains a significant presence with stakes in seven exploratory blocks. Additionally, the company is a joint owner of oil producing company Mansarovar Energy Colombia Ltd (MECL) along with Sinopec of China.

According to media reports, recently global energy giant Exxon Mobil Corp and ONGC signed an MoU wherein it is agreed that the former shall offer the latter with its expertise and technology to help develop its resources in offshore blocks.

On Wednesday, the stock of ONGC was trading at Rs. 139.20, up by 0.32 per cent or Rs. 0.45 per share. The 52-week high is Rs. 178.95 and 52-week low is Rs. 115.55 on BSE.