KOLKATA (miningweekly.com) – Resource major Vedanta on Wednesday announced an oil discovery in its Krishna-Godavari block in the Bay of Bengal along the eastern Indian coastline.
The company earlier established a discovery of natural gas at the same block.
A statement issued by the company said, “the Directorate General of Hydrocarbons and Petroleum and Natural Gas Ministry has been notified of an oil discovery in the secondary exploratory well-H2 located in the block KG-OSN-2009/3, Krishna Godavari Basin, east coast of India.”
“Multiple reservoir zones were encountered in the well H2 within the Mesozoic sequence between depths of 3 310 m to 4 026 m with hydrocarbon indications during drilling and downhole logging," Vedanta said in the statement about the block in which the company holds 100% interest.
According to the company, further appraisal would be required to establish the size and commercial viability of the oil discovery and that evaluations were ongoing based on results of the first well A3-2 and the second well H2 to finalise a further programme. Natural gas discovery was established in the first well A3-2.
The Krishna Godavari basin was originally acquired by Cairn India in June 2010 through bidding in the eighth round of auction under the erstwhile New Exploration Licensing Policy (NELP) and thereafter Cairn India was merged with Vedanta.
The company said that it was committed to drill six exploratory wells in the basin, which could go up to ten, based on a future programme.