State-owned Bharat Petroleum Corporation Ltd (BPCL) has said its partner Oil and Natural Gas Corporation (ONGC) has found gas reserve in one of its oil blocks in Tamil Nadu's Nagapattinam district.
The block is held jointly by ONGC...and Bharat Petroresources Ltd (BPRL), a subsidiary of BPCL. ONGC had previously entered into an exploration partnership agreement with BPCL for the Cauvery basin.
BPCL in a note to National Stock Exchange (NSE) said the exploration well in the block - MD 5 - was drilled down to a target depth of 2,175 metres and trapped natural gas in the block flowed at a rate of 61,800 cubic meters per day.
It also showed the presence of condensate (a form of volatile light oil) at the rate of 9.6 cubic meters per day.
The discovery has been termed Thirunagari Gas Discovery after the name of the nearby village where the gas was found.
This is the second hydrocarbon discovery made by ONGC in the NELP-IV block and the first one in this block was made in October 2012, which established the presence of crude oil.
These discoveries are exploratory in nature and the two companies will be starting the appraisal to find out the exact amount of reserves in the block. If found commercially viable, production may start from MD 5.
BPRL has a 40 percent interest in the block and the rest is held by ONGC.