Oil & Natural Gas Corporation Ltd.

State-owned Oil and Natural Gas Corp (ONGC) is likely to spend $2.894 billion in developing its ultra-deepsea UD-1 gas discovery in the Krishna Godavari basin by 2016-17. The company aims to produce for 14-15 years with peak of about 20 million cubic meters per day (mmcmd) lasting for five years from the UD-1 gas discovery in the southern part of its Block KG-DWN-98/2.

The company hopes that it may hold 4.257 trillion cubic feet (Tcf) of inplace gas reserves through UD-1, as this is the deepest gas discovery ever made in the country.  Of the inplace reserves, ONGC estimates 2.55 Tcf can be recovered while DGH puts the figure at 2.315 Tcf.

Recently, the company recorded sale of 620,000 barrels of Nile Blend crude for January loading at a record premium after a disagreement between the Sudanese governments over pipeline transit fees reduced supplies.