Rocksource undeterred by India dry hole

ONGC’s latest well in the Cauvery basin offshore southeast India was a dry hole, according to Norwegian company Rocksource.

Offshore staff

BERGEN, Norway -- ONGC’s latest well in the Cauvery basin offshore southeast India was a dry hole, according to Norwegian company Rocksource.

This was the third exploratory well drilled on block CY-DWN-2001/1. It reached total depth without encountering hydrocarbons, and will be permanently plugged and abandoned.

The well did not test the prospect associated with the primary positive electromagnetic (CSEM) anomaly that Rocksource had interpreted.

Although Rocksource is not party at present to the production-sharing contract, it is continuing commercial discussions with ONGC over a mutually acceptable way of drilling the CSEM positive prospect. If no progress can be made, Rocksource will not be liable for any costs on the block.

However, the company intends to enter the PSC once India’s government has granted an extension to the Phase 1 period, and following the conclusion of other commercial negotiations with ONGC.

02/28/2011

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