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ONGC to invest USD 9bn in KG basin

06th January 2014

ONGC makes 11 oil and gas discoveries at KG-DWN-98/2 block in Krishna-Godavari basin, plans to invest USD 9bn to kick-start oil and gas production

ONGC to invest USD 9bn in KG basin
The news follows ONGC’s plan to independently develop its hydrocarbon block in the KG basin

India’s Oil and Natural Gas Corporation (ONGC) is planning to invest more than USD 9bn by 2017-2018 to kick-off oil and gas production at the KG-DWN-98/2 block in the Krishna-Godavari (KG) basin, The Times of India reported on Sunday.

 

ONGC has reported 11 oil and gas discoveries at the hydrocarbon rich block, which is divided into the Northern Discovery Area (NDA) and Southern Discovery Area (SDA). The NDA is expected to have 92.30 million tonnes of oil reserves and 97.568 billion cubic metres of in place gas reserves spread over seven fields.

 

"We are looking at producing 2.5-3 million tonnes of oil per year and 9-10 million standard cubic metres per day of gas from the Northern Development Area of block KG-DWN-98/2," the news report quoted N K Verma, director of exploration at ONGC, as saying.

 

ONGC will make the investment to start production from the NDA. Verma said that the company will produce oil and gas using a floating production, storage and offloading (FPSO) unit.

 

The block KG-DWN-98/2 lies adjacent to Reliance Industries' KG-D6 block in the KG basin. Verma added: "We are also studying the economic and technical feasibility of using facilities at neighbouring KG-D6 block.”

 

ONGC has submitted a Declaration of Commerciality (DoC) for the oil discoveries in NDA to the Directorate General of Hydrocarbons (DGH). The company will submit the detailed field development plan within a year.

 

The news follows ONGC’s plan to independently develop its hydrocarbon block in the KG basin.