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ONGC seeks reduction in minimum work program for block in KG basin: Media Reports

By Religare

State-run Oil and Natural Gas Corporation (ONGC) is soon likely to approach the government to ask for reduction in the minimum work program (MWP) for its KG-OSN-2009/4 block in the Krishna-Godavari Basin, which was partially approved by the Cabinet Committee on Investment (CCI) in March 2013, as per the media reports.

With just 30-35 per cent of the contracted area cleared for exploration, ONGC will soon decide on whether to surrender the block or propose a revised MWP for the block.


The remaining 65-70 per cent of the block falls within sensitive defence zones including the impact zone of the IAF's Suryalanka Guided Weapon Firing Range and Machilipatnam launch site.

MWP commitments are submitted by the contractors while bidding for oil and gas blocks. It stipulates the minimum amount of work that the contractor is prepared to undertake during the exploratory phase such as surveys, exploratory drilling, etc.

"We are studying the feasibility of producing from the restricted areas. We will respond with a revised MWP if it is commercially feasible," a company official told media.

The MWP commitment for the ONGC block was designed to explore the hydrocarbon potential of the entire block area.

Sources said that under the changed circumstances where only 30-35% of the block has been cleared for exploration, ONGC can request for a proportionate reduction to its MWP commitments, the report added.

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