State-owned Oil and Natural Gas Corp (ONGC) will invest about Rs40,000 crore in bringing to production oil and gas discoveries in its Krishna Godavari basin block KG-D5, Chairman Dinesh K Sarraf said on Thursday. ONGC is using cluster approach to bring oil and gas finds in the block KG-DWN-98/2 or KG-D5, which sits next to Reliance Industries’ Bay of Bengal block KG-D6, to production by 2018-19.
“We plan to submit a field development plan (FDP) for the discoveries by the second quarter. Total investment in eastern offshore will be over Rs40,000 crore,” he told PTI here.This will be the single largest investment by ONGC at one location.
The block is divided into Northern Discovery Area (NDA) and Southern Discovery Area (SDA). Estimated reserves of NDA are 121 million tonnes of oil in place and 78 billion cubic meter of initial gas in place, and that of SDA are 80.9 bcm of initial gas in place.
ONGC plans to develop the discoveries in the block in three clusters -- 14.5 million standard cubic meters per day of gas for 15 years from Cluster-1 comprising of D&E finds of NDA in KG-D5 block and G-4 find in the a neighbouring area.