The Oil and Natural Gas Corporation will invest Rs. 16,200 Crore to drill wells at a block in the Krishna-Godavari basin. The Ministry of Forests and Environment has been approached by the ONGC seeking clearance for the proposal.
The production would begin in 2019 with a maximum output limit of 4.5 million tonnes a year. The block KG-D 5 sits next to Reliance Industries’ producing KG-DWN-98/3 or KG-D6 area.
The Minutes of the Meeting of Expert Appraisal Committee says, “It is proposed to carry out development drilling in Northern Discovery Region by drilling 45 numbers of wells including oil, gas and water injection wells. The proposed drilling locations are more than 25 kms distance i.E. 12 nautical miles away from the coast line. Total cost of the project is Rs 16,200 Crore”.
The minutes also says, “Produced hydrocarbons shall be evacuated by utilisation of GSPC infrastructure for the produced gas from cluster-1 of NDA & G-4 of PML. The produced gas from Cluster-II?is planned? to be transported by sub-sea pipeline to an onshore terminal through landfall point to nearest coastline of Odalarevu.
“The produced oil from clustered-II is planned to be transported to an FPSO (Floating Production, Storage and Offloading) and after processing to be sent to Refineries by tankers.”