ONGC sets record, drill 503 wells in FY2018; highest in 27 years

Oil and Natural Gas Corporation (ONGC) has set a new record of drilling over 500 wells in the financial year (FY) 2017-18 at an expenditure of Rs 14,200 crore as the major state-owned explorer steps up efforts to boost domestic output even as international prices show no signs of abating. ONGC drilled 503 well in the financial year ended March 31, 2018, as compared to 501 well in 2016-17 and 386 wells in FY 2016. This is the highest number of wells drilled in last 27 years by ONGC. 

ONGC drilled these 503 wells at an estimated cost of Rs 14,200 crore, which was 11.5 per cent lower than the budget outlay. During FY 2018, ONGC’s planned CapEx outlay on drilling activities was Rs 16,038 crore with a target to drill 496 wells including 110 exploratory and 386 development wells. 

ONGC through a release said, "Of the 119 exploratory wells which were drilled, 8 were in the deepwater fields against the initial target of 6 and 45 in shallow-water fields against of 38".

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This is the second consecutive year when ONGC drilled over 500 wells. In FY 2017, the company drilled 501 wells at an expenditure of Rs 15,440 crore. The company through its release said, "This comes at a time when the company is looking to step up domestic output in line with the clarion call given by Hon’ble Prime Minister to reduce 10 percent import dependence by 2022".

Speaking about the achievement, Shashi Shanker, CMD ONGC said, “We have taken measures to improve our operational efficiency by better well designs, inducting new technologies, improving cycle-speed, standardization of well-testing procedures and minimizing the idling period of rigs”.