October 07, 2008

ONGC to invest USD 5 billion in KG gas fields

It is reported that Oil & Natural Gas Corporation is planning to invest over USD 5 billion to produce 25 million standard cubic meters per day of gas from its eastern offshore Krishna Godavari fields by 2013. Besides natural gas, ONGC also plans to produce 8,000 barrels per day from the fields.

The reserve estimates and production plan in ONGC's appraisal program however do not include its ultra deepwater UD 1 discovery in KG DWN 98/2 block adjacent to Reliance Industries' prolific gas discovery block KG D6. It estimates another 2 trillion cubic feet to 14 trillion cubic feet of reserves in the UD 1 discovery, adding half a dozen other finds in the same KG DWN 98/2 block have been clubbed with other discoveries in the region like G 29, GS 4 and Vashistha.

ONGC's appraisal plan outlines integrated development of the discoveries in shallow to deepwater part of the KG DWN 98/2 block along with other fields in adjoining nomination acreages.

While ONGC has 90% stake in the KG DWN 98/3 block, it has 100% stake in the adjoining acreage which it got from the government on nomination basis. Cairn India has the remaining 10% in KG DWN 98/3. Norsk Hydro of Norway and Petrobras of Brazil are to take 15% to 30% stake in the block.