Oil and Natural Gas Corp. (ONGC) will invest US$9 billion to bring into production several oil and gas discoveries in the Krishna-Godavari basin off India’s east coast. The investment is expected to be complete by 2017-2018.
The company has made 11 discoveries in Block KG-DWN-98/2, which is divided into a Northern Discovery Area (NDA) and Southern Discovery Area (SDA). ONGC plans to invest in the NDA. The KG-DWN-98/2 block is adjacent to Reliance Industries Ltd.’s KG-D6 block, and Gujarat State Petroleum Corp.’s Deendayal gas field.
ONGC projects it will produce 2.8-3.3 million tons/yr of oil, and 9-10 MMcm/d of gas from the NDA, which holds about 102 million tons of oil reserves and 97.6bcm of in-place gas reserves throughout seven fields.
The company purchased 90% interest in Block KG-DWN-98/2 from Cairn Energy India Ltd. in 2005. Cairn still holds 10% in the block, and made four discoveries in the area before selling most of its stake. Afterwards, ONGC made six discoveries, including an ultradeep discovery within the block.
The NDA includes discoveries such as Padmawati, Kanadurga, D, E, U, and A, while the ultra-deepwater UD find lies in the SDA. ONGC plans to produce oil and gas from the NDA with an FPSO unit.
Block KG-DWN-98/2 was originally awarded to Cairn in the first round of auctions under the New Exploration Licensing Policy (NELP-1) in April 2000. Of this, ONGC holds 3801 sq km (2361 sq mi) in the NDA and 3494 sq km (2171 sq mi) in the SDA.