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India's ONGC finds oil, gas in 3 blocks

India's Oil and Natural Gas Corp has struck oil and gas in three new blocks, the Economic Times reported, citing the state-run explorer's chairman R.S. Sharma.

The report sent its shares up more than 3% in a subdued Mumbai market.

The gas find in the Krishna-Godavari basin off India's east coast could have an estimated reserve of 10 trillion cubic feet (tcf) of gas, the newspaper said, quoting an unnamed senior company official.

ONGC said the discoveries opened up new areas for exploration but the estimated reserve figure in the report was incorrect.

“The initial flow rates do not indicate reserves anywhere near 10 tcf as reported in the news item,” the company said in a statement.

The company also found oil in Charada-3 offshore block in Cambay basin, off the west coast, and oil and gas in Matar in Vadodara district of Gujarat state, the newspaper said.

ONGC said all three finds were part of 28 discoveries made in the past fiscal year that in ended March.

“Further study and delineation drilling would be required to estimate the size of these discoveries,” it said.

ONGC has notified the Directorate General of Hydrocarbons, which has to approve the find. It would take up to four years for production to start, the paper said.

“We are going through the case and we will take a call soon,” the paper quoted V.K. Sibal, the chief of the regulator, as saying. (Reuters)