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ONGC anticipates KG basin gas output to reach 25-30 mscmd

05th March 2014

India’s Oil and Natural Gas Corp (ONGC) anticipates a peak gas output of 25-30 million standard cubic metres per day (mscmd) from its block off the east coast

Gas production from the deep water block in the Krishna Godavari (KG) basin will commence in 2017

India’s Oil and Natural Gas Corp (ONGC) anticipates a peak gas output of 25-30 million standard cubic metres per day (mscmd) from its block off the east coast, revealed exploration director, N K Verma.

Gas production from the deep water block in the Krishna Godavari (KG) basin will commence in 2017. The northern portion of the block holds over 2 trillion cubic feet (tcf) of gas.

ONGC has said that it hopes to produce from 6 to 9 mscm of gas a day by 2017 from its east coast block.

Gas output from the block is estimated to be profitable for ONGC as India is moving to a new pricing regime from April 1, which will connect local prices with global indexes.

Higher gas prices will help ONGC make investments to arrest a decline in oil and gas output from its older fields, D.K. Sarraf, chairman of ONGC said. The organization aims to raise its output to 130 million tonnes of oil and oil equivalent a year by 2030 from 60 million tonnes at present.

Last year, Reliance Industries, an Indian holding company that works in areas such as exploration and production, planned to start a workover programme at three wells in the D6 block in the Krishna-Godavari (KG) basin.

The company intended to assume base management action including workover, side tracks, compressor, and the development of the water handling capacity to increase output at the KG-D6 block.

 

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