India turns attention to deep water exploration

India, faced with stagnant domestic oil production and rising demand, is turning to deep-water exploration to find new oil and gas sources. "The thrust in oil industry is gradually shifting to exploration and exploitation of oil and gas in deep waters," a petroleum ministry official told. He said the ministry has committed 65 billion rupees ( $1.8 bn) for deep-water oil exploration by state-owned, or partly state-owned, oil firms over a five-year period. "The Brazilians are very successful (in deep-water oil production)," said the official. "They seem to be the most cost-effective and we're seeking their collaboration."
India's oil production has slowed to below 30 million tonnes a year while annual demand, running at more than 60 mmt, has been rising at about 8 %. The bulk of India's oil comes from the offshore Bombay High field, but India has no deep-water production. ONGC plans deep-water exploration in four locations on India's western and eastern offshore basins. Based on the data, whichis not very exhaustive at the moment, resources of the order of 5 to 9 billion tonnes of oil and oil equivalent gas are estimated in deep water areas of 200 to 2,000 metres. The state-run Gas Authority of India Ltd (GAIL) has committed funds to jointly scout deep waters, its chairman told. Indian officials are hopeful of finding large gas reserves around the Andaman Islands, off India's east coast.