KGBasin

The KG basin has proved to be as unique as it is fertile. The oil and gas here are submerged in history through the ages. From the oldest Mandapeta sandstone sediment of the Permo-Triassic Age to the youngest Godavari clay of the Miopliocene Age, from Paleozoic and Mesozoic sediments in the west to Upper Mesozoic/Cretaceous and Tertiary sediments in the east, explorers have uncovered deposits as young as 5 million to as old as 250 million years of age!

A peculiarity in geology, the basin’s geographical distribution is very wide and it extends from onshore to offshore in a single unit, with more gas concentration onshore and more liquid concentration offshore. Hydrocarbons are found in dispersed cavities and both volcanic rock and limestone reservoirs have been discovered here.

Thanks to its geological complexity, most wells drilled into this basin are considered to be exploratory in nature and 90% of its production has come from these instead of from wells drilled for production. Yet, while the average success ratio of drill is to hit on a global scale is nothing less than 1:6, the KG basin has delighted explorers with a consistent average ratio of 1:2.5.

When you think of Matsyapuri, the Abode of Fish, perhaps you would imagine a quiet, languid, settlement on the shore of a tranquil sea where you could lie down on fragrant grass with the blue sky above and birds circling overhead, with the freedom to drift off into sweet daydreams. And you would not be too far from the truth. However, at the neighboring Matsyapuri-2, men in orange overalls indulge in a different kind of fishing – one that is not at all out of a fairytale. For at this particular location in Andhra Pradesh, these men are scouting for hydrocarbons.

About 16 km from Naraspur, Matsyapuri is a part of the Krishna-Godavari basin (KG basin), one of the first sites explored by the Oil and Natural Gas Commission (ONGC) of India. The basin spans the coastal districts of East Godavari, West Godavari and Krishna in Andhra Pradesh. It extends over 28000 sq km onshore, 24000 sq km in shallow waters and 18000 sq km in deep waters.

The journey of exploration began in April 1977 when ONGC began prospecting for oil and gas in the basin. In 1978, it drilled its first well near Naraspur and discovered gas there. Since then, it has struck black gold time and again in the rather lucrative basin.