ONGC commences drilling of its first well in Palar basin near Chennai

ONGC commenced drilling of its first well in the Palar basin, some 40 km north of Chennai, at a scientifically chosen patch of land. Opening up new areas and getting hydrocarbons from tough sources such as high pressure, high temperature reservoirs, ultra deep seas and hilly regions is crucial for ONGC as it cruises towards its target of producing 130 million tonnes of oil and oil-equivalent gas by 2030, from 60 mt at present.  Besides, ONGC Videsh, the overseas arm of the state-owned explorer, Oil and Natural Gas Corporation (ONGC) has signed a deal with Russia’s largest oil and gas producer Rosneft to jointly explore hydrocarbons in the offshore Arctic.  ONGC is a premier oil and gas company in India, accounting for 71% of the country’s crude oil production and 54% of its natural gas production in 2011-12. It is also a significant producer of value added products such as liquefied petroleum gas (LPG), superior kerosene oil (SKO), and naphtha. GoI is the majority shareholder in ONGC, with a 69% equity stake as of now.