ONGC Signs MoU with Andhra Pradesh to Invest $5.1 Billion for Developing Oil & Gas Finds Off its Coast
ONGC has announced that it will invest $5.07 billion in developing oil & gas fields off Andhra Pradesh coast by 2019-20 after signing an MoU with the state government. The investment by ONGC will be aimed towards bringing to production ten oil & gas discoveries in the Bay of Bengal block KG-DWN-98/2.
The first gas production is expected to start by June, 2019 and oil production is anticipated to start from March, 2020. The offshore field gas will be brought in through a sub-sea pipeline to Andhra Pradesh before it is transported the users.
The Memorandum of Understanding was signed between state government industries Director, Kartikeya Misra and ONGC MD and Chairman, Dinnesh K Sarraf.
The Northern Discovery Area and Southern Discovery Area forms the 7,294.6 sq km KG-D5 block. The Northern Discovery Area has eleven oil & gas discoveries whereas UD-1, the nation’s only ultra deep-sea find belongs to Southern Discovery Area.
Officials stated that, currently the tie-up of gas discovery in Cluster-I with G-4 block is not being considered for production because of some disputes with RIL over gas migration from ONGC blocks. Within 2 years of production, peak output of 77,305 barrels/day is envisaged from Cluster-II.
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