ONGC Plans to Invest USD 7.7b in KG Basin, Scouts for Partners
OREANDA-NEWS. June 21, 2011. Oil and Natural Gas Corporation (ONGC) plans to invest USD 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
ONGC said it 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 USD 7.7 billion,” ONGC said. On whether it is divesting a 30% stake in the KG-DWN-98/2 block, an official said: “ONGC had invited global majors to a data room for a possible tie-up in the integrated appraisal and development process of this block and adjoining nomination blocks. ENI and BG have evinced interest and the process of firming up the modalities of partnership is in progress.”
“It is too early to say when we will cement these partnerships with either BG or ENI, we still have to choose and talks are on, we are keen to forge these associations to gain technical expertise in ultra-deepwater exploration,” AK Hazarika, chairman, ONGC told ET.
Last year, Minister of State for Petroleum and Natural Gas Jitin Prasada had informed the Lok Sabha that 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
The KG Basin is
It is too early to say when we will cement partnerships with either BG or ENI. We still have to choose and talks are on, we are keen to forge these associations to gain technical expertise in ultra-deepwater exploration
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