DIPHU: APR 7: Karbi Anglong may soon find itself in the oil map of the world, after the director general of Hydrocarbons India) DGHI officially makes the announcement.
The task of exploration and production of oil and gas in this district has been shared by Indian companies along with a small Canada-based oil corporation of Vancouver ‘East West Petroleum’.
The process of exploration of oil from Karbi Anglong started long back. However, due to several reasons the venture did not materialize
The process of oil exploration is likely to commence soon after oil was located on the Block at the Assam-Arakan Basin of the Northeast.
The DGH announced the winning bids March 28 in New Delhi on a provisional basis, subject to final administrative review. The exploration and exploitation would be on partnership basis between Oil India Ltd. (OIL, Operator, 40%), Oil and Natural Gas Corporation of India (ONGC, 30%), Gas Authority of India Ltd. (GAIL, 20%) and East West Petroleum (10%).
The primary term of the exploration and production sharing contract will be five years.
The place where the oil will be explored is at Arakan Basin, in Karbi Anglong with a proven petroliferous region covering more than 116,000 sq. km. The government has already surveyed over 60,000 km zone and has acquired 2D seismic data and 3D seismic data over 7600 sq. km. area based on statistics collected by drilling hundreds of wells.
Survey suggested that oil in place might exceed 36 billion barrels.
Currently OIL has a market capacity of US$7 billion. ONGC is India’s largest E&P petroleum company and mainly engaged in the oil exploration and production activities.
ONGC has two segments: exploration and production, refining. During the fiscal year ended March 31, 2010, ONGC recorded crude oil production of 32.95 million metric tons and natural gas production of 27.98 million metric tons. As of March 31, 2010, ONGC operates more than 22,000 kms of pipelines in India, including nearly 4,500 kms of sub-sea pipelines.
Currently ONGC has a market cap of just over US$52 billion. GAIL is India’s principal gas transmission and marketing company. GAIL has a current market cap of US$12 billion.
East West Petroleum Corp. is an emerging exploration and production company focused on conventional and unconventional petroleum resources. Currently East West has producing assets in Egypt and Canada, and exploration and exploitation assets in India; 5 million acres in a joint study agreement with Kuwait Energy in Egypt, Yemen, Russia and the Ukraine and one million acres in Romania.
If crude oil is extracted, the otherwise strife-torn Karbi Anglong district may soon turn into an oil rich place in the country, along the same pattern with Duliajan, Digboi, of Upper Assam.
Karbi Anglong presently reeling under several crises like insurgency, unemployment, ethnic clashes etc. will get a new lease of life as the entire socio-economic pattern of Karbi Anglong will change dramatically, if oil exploration and exploitation ventures take off.