Investment by ONGC in KG basin blocks

Investment by ONGC in KG basin blocks

The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that ONGC has planned to invest Rs. 4509.9 crore on development of Vashishta & S-1 fields in Krishna-Godavari Basin. ONGC Board has also approved two developmental projects in this basin with a cumulative investment of Rs. 4409.16 crore which are at different stages of execution. In addition, ONGC recently completed field development of GS-1 & G-1 at a cost of Rs. 3955.21 crore. For block KG-DWN-98/2 investment details are being finalized and Field Development Plan is under preparation. In 2015-16, ONGC plans to invest Rs. 8901 crore in KG Basin, which is about 24.5% of the total plan outlay of ONGC.

In place reserves established by ONGC, OIL and Pvt./JVs companies are about 11827.48 Million Metric Tonne of oil Equivalent (MMToE). In exploration and production business, input in terms of surveys and drilling are deterministic, however, results in terms of hydrocarbon discoveries are probabilistic in nature. Therefore, future projection of hydrocarbon discoveries cannot be made.

Field Development Plans (FDP) for 21 hydrocarbon discoveries comprising of 13 oil and 8 gas, have already been approved. These discoveries are under development or on way to production.