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ONGC has 10 million tonne oil reserves in Jorhat basin

ONGC has 10 million tonne oil reserves in Jorhat basin
The total reserve of the ONGC's Jorhat basin has been estimated at ten million tonne oil, a company official said here on Friday.

The daily production is around 350 to 400 tonnes and so far more than 90 per cent of the estimated target of .96 million tonnes for 2016-17 has been achieved, ONGC Director (Onshore) V P Mahawar told reporters here.

"After a considerable time of nearly three years, we have found reserves during exploration in the Safiayum and Dayalpur areas of Jorhat basin and production began in the last two months," he said.

Asked about exploration in Nagaland, which has been halted due to opposition from certain quarters, he said that talks were being held at the ministerial level to resolve the issue.

"The wells have been abandoned, but there is possibility of exploration and production and we are serious about operations in Nagaland. We'll, however, proceed only when we get the go-ahead from the ministry," he added.

In Tripura, there are gas reserves and 3-D survey has been initiated in two wells in North Tripura and two rigs are expected to reach the state soon.

In Arunachal Pradesh, however, the progess has not been good. Though gas reserves are available, more exploration is required, Mahawar said. Meanwhile, global oil prices took a battering on Friday, with US prices falling below USD 50 for the first time this year, on signs a global supply glut is not going away.

The euro meanwhile rallied briefly against the dollar as the ECB said it no longer saw a deflation threat and would end some of its massive support for the eurozone economy.

Equities were under pressure during Asian and much of European trading after as a closely-watched report showed a shock surge in US oil inventories, rekindling worries about the oversupply that has hammered the crude market since mid-2014.

The Energy Department yesterday revealed a whopping eight-million barrel increase in supplies over the past week -- four times more than expected -- owing to higher domestic production and increased stockpiling.

Both main oil futures contracts slumped to lows not seen since the end of last year and sending New York prices sliding below USD 50 a barrel.

Jeffrey Halley, senior market analyst at Oanda trading group, said the inventories report was the "straw that broke the camel's back", with concerns already abounding that Russia was not pulling its weight on much-vaunted production cuts agreed between OPEC and non-OPEC countries in November.

In today's trading, shares in oil giant Royal Dutch Shell shed 2.0 per cent and rival BP lost 1.5 per cent on the London stock market. The FTSE 100 index was weighed down also by falling mining shares. Asian energy firms had already taken a hit, with Japan's Inpex shedding 1.2 per cent, Hong Kong-listed PetroChina diving 2.2 per cent and CNOOC losing 1.8 per cent.

Woodside Petroleum fell 1.1 per cent in Sydney and later in European activity, French energy group Total slid 0.8 per cent.

"The data catalysed a new wave of glut concerns as the higher oil price might spur North American's production, especially of shale oil, which may ultimately counterbalance OPEC's effort to support oil prices," said Margaret Yang in her CMC markets' Article.

Repsol announces big Alaska oil find

Spanish oil and gas giant Repsol announced today a large oil find in Alaska that it says holds approximately 1.2 billion barrels of recoverable light oil. The discovery, made with its US partner Armstrong Energy, is Repsol's biggest since a gas find in Venezuela in 2009, a spokesman said.

The find is the "the largest US onshore conventional hydrocarbons discovery in 30 years", Repsol said in a statement. "The contingent resources identified with the existing data in Repsol and Armstrong Energy's blocks in the Nanushuk play in Alaska could amount to approximately 1.2 billion barrels of recoverable light oil," it added. Repsol has been actively exploring Alaska since 2008, The find was made in two wells in a region called the North Slope where Repsol has made other discoveries with Armstrong since 2011.
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