Oil & Natural Gas Corporation Ltd.

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