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ONGC set to invest $7.7b in KG basin, scouts for partners

21 Jun 2011 Evaluate

Oil and Natural Gas Corporation (ONGC) plans to invest $7.7 billion to develop its gas field in the KG Basin, adjoining Reliance’s prolific D-6 block, and produce up to 30 million cubic meters a day in five years. It plans to drill eight additional wells in the block to maximize output from the deep-sea field in the Bay of Bengal and has sought approval for the plan from the directorate general of hydrocarbons and the petroleum ministry.

ONGC had submitted a proposal for Declaration of Commerciality (DoC) to the DGH in respect of Northern Development Area and Southern Development Area in NELP Block KGDWN-98/2. A total lifecycle cost as per the proposal for DoC is of the order of $ 7.7 billion. 

In-place gas reserves of 3.42 trillion cubic feet (tcf) have been established in the KGDWN-98/2 block, of this, 1.904 tcf is recoverable. The KG-DWN-98/2 block has 10 gas discoveries and Cairn India is already a 10% partner in the block. The company plans to produce 25-30 million standard cubic metres per day of gas from the block by 2016-17. ONGC has been scouting for partners to develop the block as it does not have experience in developing fields in ultra-deep regions in the sea.crackcrack

ONGC Share Price

279.25 -4.70 (-1.66%)
08-May-2026 16:59 View Price Chart
Peers
Company Name CMP
ONGC 279.25
Oil India 454.40
Jindal Drilling&Inds 535.85
Deep Industries 457.70
Asian Energy Service 297.85
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