ONGC Videsh makes two new discoveries in Brazil & Colombia

New Delhi: The overseas arm of state-owned Oil and Natural Gas Corporation (ONGC), ONGC Videsh Ltd (OVL), has made two new oil and gas discoveries in Colombia and Brazil, a statement released by the PSU said on Wednesday. The new discoveries strengthen ONGC Videsh's reserves in Latin America.

Where are the new discoveries made by ONGC Videsh?

OVL made an oil find in Colombia's onshore exploration block CPO-5 in the Llanos basin and major natural gas discovery in the deep offshore exploration block BM-SEAL-4 in Brazil's Sergipe Alagoas Basin, the company said in a statement. "Well Sol-1, in the block CPO-5 encountered the oil-bearing sands of 8 meters at a depth of 2,852 meters. Oil discovery in Sol-1 confirms the extent of oil pay further south of the block," it said.

OVL is the operator of the Colombian block with 70 percent participating interest (PI), while the rest 30 percent stake is owned by Petrodorado South America SA, Sucursal (PDSA), Colombia. ONGC's overseas wing had earlier discovered commercial oil in the same pay in wells Mariposa-1 and Indico-1 in 2017 and 2018, respectively. Both of these are under production now. In Brazil, well Moita Bonita-2 encountered natural gas reserves at a water depth of 2.6 kilometres, OVL said.

'Good production from reservoir'

The well "encountered gas-bearing sand of total thickness of 39 metres at the depth of 5,227 metres and oil-bearing sand of total thickness of 24 metres at deeper depths. Drill Stem Test (DST) was performed in the gas carrier interval 5,252 metres to 5,291 metres, and the result showed good production from the reservoir," the statement said.

The backdrop

The Indian firm is the operator of the Colombian block with 70 percent participating interest (PI) while the balance 30 percent stake is owned by Petrodorado South America SA, Sucursal (PDSA), Colombia. In Brazil, on the other hand, national oil company Petrobras is the operator of block BM-SEAL-4 consortium with a 75 percent stake. OVL holds the remaining 25 percent interest.