ONGC Plans to Spend $9B to Develop Upstream Assets in India's KG Basin
India's state-owned Oil and Natural Gas Corporation Limited (ONGC) planned to spend over $9 billion in development expenditure to bring into production the firm's upstream petroleum assets in the Krishna Godavari basin off India's east coast by 2017-2018, local media The Economic Times reported Sunday.
"We are looking at producing 2.5-3 million tons of oil (per annum) and 317-353 million standard cubic feet (9-10 million standard cubic meters) per day of gas from the Northern Development Area of Block KG-DWN-98/2," ONGC Director (Exploration) NK Verma said, as reported in the Indian daily.
ONGC has divided Block KG-DWN-98/2, which contains 11 oil and gas discoveries, into a Northern Discovery Area (NDA) and a Southern Discovery Area (SDA). The block lies next to Reliance Industries' KG-D6 Block and Gujarat State Petroleum Corporation's Deendayal gas field.
NDA contains around 92.30 million tons of oil reserves and 3.44 trillion cubic feet (97.568 billion cubic meters) of in-place gas reserves spread over seven fields.
ONGC has submitted to India’s Directorate General of Hydrocarbons (DGH) a Declaration of Commerciality (DoC) for the oil find in the NDA and a detailed field development plan will be submitted within a year, Verma said.
ONGC has 90 percent interest in Block KG-DWN-98/2, while Cairn Energy India Ltd. holds the remainder. Cairn, which sold the 90 percent stake to ONGC in 2005, made four discoveries in the area – Padmavati, Kanakdurga, N-1 and R-1 (Annapurna), while ONGC made six discoveries – E-1, A1, U1, W1, D-1 and KT-1 in NDA and the first deepwater discovery UD-1 at a record depth of 9,320 feet (2,841 meters).
Petroleum discoveries in the NDA comprises Padmawati, Kanadurga, D, E, U, A, while the UD find lies in SDA.
ONGC intends to produce oil and gas from NDA using a floating production, storage and offloading (FPSO) unit, The Economic Times quoted Verma as saying.
"We are also studying the economic and technical feasibility of using facilities at neighboring KG-D6 block," Verma indicated, with ONGC considering the option of diverting some petroleum supplies to Reliance Industries' infrastructure for transmission to Kakinada in Andhra Pradesh, where they can be sold to consumers.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Operates 40 Offshore Rigs
Manages 8 Offshore Rigs
- Venezuela's PDVSA To Tap Oil Customers To Pay $449MM To ONGC (Nov 15)
- Sources: India ONGC Strikes 'Good' Offshore Oil, Gas Find (Sep 20)
- India To Acquire Seismic Data Of 48,000 Line kms To Boost Oil, Gas Output (Sep 12)
Company: Reliance Industries more info
- India's Reliance Declares 30pct Higher Refinery Capacity at Export Plant (Jan 17)
- OPEC's Output Curbs Squeeze World's Biggest Oil Refining Complex (Oct 16)
- India's Reliance Industries 2Q Profit Up 7%, Lags Estimates (Oct 13)
Company: Cairn India more info
- Sri Lanka Launches Tender To Develop Natural Gas Site In Mannar Basin (Feb 13)
- Mangala Field Hits 300 Million Barrels of Cumulative Production (Oct 20)
- Vedanta Wins Cairn Nod For BHP-Style Resources Conglomerate (Sep 13)