Oil India Strikes Natural Gas in Shallow Offshore Basin
Middle East Physical Crude Slides While Brent Hits Five-Month High Colombia’s largely untapped critical mineral… State explorer Oil India Limited (OIL) has found natural gas in a previously unexplored formation in the shallow Krishna-Godavari Basin, the Indian companysaidon Friday.
OIL has made the discovery at the Godavari-1 appraisal well in the Matsyapuri formation in the Krishna-Godavari Basin off India’s east coast, recording a peak test flow of 200,000 standard cubic meters per day (SCMD).
The company, however, did not reveal an estimate of the potential reserves it had encountered.
OIL is now preparing to test the next zone in the basin for potential further drilling.
India looks to boost domestic oil and gas exploration as the Strait of Hormuz crisis crippled supply andhiked pricesfor oil and gas for the country, which is the world’s third-largest crude oil importer.
The renewed rally in crude oil and LNG prices and the higher freight costs in September started pressuring, again, the marketing margins of India’s oil and gas sector, which has to contend with the fallout of the Iran war on global oil and LNG trade flows.
A senior official at OIL last month said that Indianeeds to boostdomestic oil and gas exploration to enhance its energy security amid supply disruptions that drive energy prices higher.
“Disruptions to global supply chains and major energy corridors can have an immediate impact on energy flows, prices and economies worldwide,” OIL’s Director of Finance, Abhijit Majumder, said at an energy industry event in India, as carried bylocal media.
The Strait of Hormuz crisis is one example of how geopolitical instability in one corner of the world could threaten energy security in all other regions, the executive said.
India’s government has an ambitious plan to boost exploration, followingthree consecutive yearsin which domestic crude oil production has declined.
This year, the federal governmentlaunchedthe so-called National Offshore Exploration Scheme, with $8.8 billion in government support through FY 2030–31.
The scheme is India’s most ambitious offshore exploration mission to date.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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