Oil exploration off Kochi not abandoned

KOCHI: Union Minister of State for Food and Civil Supplies K V Thomas on Saturday said that oil exploration project on the Kochi coast is still on and financial constraints will not lead to the complete disposal of the project.“The prospects of the project would be considered and further discussions would be held in the Cabinet,” he said while reacting to the reports on Friday on the Centres’ denial of permission to conduct further exploration.   According to Thomas, the exploration which had had been conducted for the past ten years was temporarily abandoned owing to the surging financial burden borne by the Oil and Natural Gas Corporation (ONGC). The biggest dig carried out in 2010 had also not yielded any result. Similarly, at least five wells were dug along the Kochi-Konkan coast but none was fruitful, he said.Stating that financial constraints will not lead to the complete disposal of the project, the minister added that the amount needed for the project could exorbitant. The finance committee report on Friday cited that the huge financial loss was the reason the Centre denied permission for further exploration. The profit gained by various companies was only 6.7 per cent, the committee had said. If successful, the oil exploration project, aimed at exploring the presence of hydrocarbons in the ultra-deep basin, is expected to boost the state’s economy by leaps and bounds.