Page 13 - Plastics News November 2017

COMPANY NEWS

ONGC running out of time on ultra-deep gas find

he clock is ticking for ONGC if it wants to become According to ONGC, the major challenges were sub-zero
Tthe country’s first hydrocarbon explorer to produce temperatures and the water depths of 2,600-2,900 metres.
gas from the most challenging and only ultra-deepwater The discovery, according to ONGC’s assessment, holds
discoveries. Discovered in 2006 about 150 km off the about one trillion cubic feet of recoverable reserves.
Andhra Pradesh coast is ONGC’s ultra-deepwater find, Officials in the ONGC believe that the time is right to go
called UD-1, in the Krishna-Godavari basin block KG- for this find. “The company will re-submit the declaration
DWN-98/2. This block was awarded to ONGC under the of commerciality proposal. It is also weighing the option
New Exploration Licensing Round (NELP) and is governed of drilling more appraisal wells. We are confident of the
results,” the official added.

IOCL organise petrochemical
investors conclave in Odisha

ndian Oil Corporation Ltd organised a conclave with
Ian aim to provide a platform for young investors to
interact with business leaders of the petrochemical
industry government functionaries and financial
institutions. Union Minister for Chemicals and
Fertilisers Ananth Kumar and Union Minister of PNG
Dharmendra Pradhan are addressed the conclave titled
'Purvodaya- The Dawn of New Investment Opportunities
by a production-sharing contract, which clearly defines in Eastern India'. "The conclave aims to highlight the
a timeline for each activity.Though giving extensions are emerging investment
normal for such difficult finds, they cannot be granted opportunities in
forever, sources in Directorate General of Hydrocarbons the petrochemicals
said. ONGC had been going slow on this area of the block sector in Eastern
due to technological challenges. Only after the discovery India and help
is found to be commercially viable does the contractor catalyse investment
submit a field development plan. The block is adjacent to in downstream plastic
the Reliance Industries Ltd-operated KG-D6 block and the parks and textile
GSPC block recently acquired by ONGC. “Till now we have parks proposed to be developed in this part of the
been communicating to ONGC on technical issues, but now country," Pritish Bharat, CGM, IOCL Odisha State
we have asked the company to come back again with its Office, said. Meanwhile, a new polypropylene unit
proposal seeking the commerciality of the find,” said a of 700 KTA (kilo tonne per annum) capacity is under
senior official in the Directorate General of Hydrocarbon. construction at Paradip Refinery to support the plastic
The find, since it was struck, has had its own share of industry, said Sujoy Choudhury, CGM, Petrochemical
controversy. Not only was it a challenge for the explorer, Marketing. He said the proposed polypropylene unit
but in 2007 questions were also raised by the then DGH on will be set up at an estimated investment of Rs 3,500
the method of testing the find. The discovery was accepted crore, and is likely to be commissioned by June, 2018.
only after the contractor had proven that it could flow
the gas to the surface. Its recent proposal for Declaration Senior IOCL officials said the upcoming polypropylene
of Commerciality was returned by the current DGH on unit is also part of the petrochemical complex being
the grounds that ONGC needs to come up with technical developed by the Ministry of Petroleum and Natural
studies showing how it would flow the gas to the surface Gas. Odisha Government has already identified 100
and the quantum of in-place reserve. acres of land for the proposed plastic parks.

13 N ovember 2017 Plastics News