ONGC discovers oil deposits in the Eastern off-shore of Andhra Pradesh

India’s state owned energy company, Oil & Natural Gas Corporation Limited(ONGC) (BOM: 500312), discovered large oil deposits in an eastern offshore acreage in Andhra Pradesh which it received from the government on a nomination basis. The Hindu reports:

"Three hydrocarbon bearing sands have been encountered in the gross interval 3,757 meters to 4,185 meters based on geological data, log evaluation and one mini-Drill Stem Test carried out on September 30 and October 1, 2008. The thickest sand interval (4,1084,185 meters) comprises 55 metres of net oil pay," it said.

The company discovered the deposit at a water depth of 225 meters but it did not mention the quantity of oil reserved. This is the most significant discovery made by the company after its gas discovery in Krishna-Godavari basin in December 2006.

On the other hand, to meet the growing energy demand, ONGC Videsh Ltd, (OVL), the foreign arm of ONGC got clearance from the Russian government to buy British oil company, Imperial Energy Corporation plc (LON:IEC).

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