and Natural Gas Corp (ONGC) on Friday signed an MoU with Andhra Pradesh government
for investing $5.07 billion in developing oil
and gas finds off the state's coast by 2019-20.
will invest $5.07 billion in bringing to production 10 oil
and gas discoveries in the Bay of Bengal block KG-DWN-98/2 (KG-D5), which sits next to Reliance
Industries' flagging KG-D6 fields.
First gas production is envisaged by June 2019 and oil
would start flowing from March 2020. Gas from the offshore field will be brought via sub-sea pipeline to Andhra Pradesh
before being transported to end users.
The MoU was signed by ONGC
Chairman and Manging Director Dinesh
K Sarraf and the state government's Industries Director Kartikeya Misra.
The 7,294.6 sq km deep-sea KG-D5 block has been broadly categorised into Northern Discovery Area (NDA
- 3,800.6 sq km) and Southern Discovery Area (SDA - 3,494 sq km).
has 11 oil
and gas discoveries while SDA has the nation's only ultra-deepsea gas find of UD-1. These finds have been clubbed in three groups - Cluster-1, Cluster-II and Cluster-III.
Gas discovery in Cluster-I is to be tied with finds in neighbouring G-4 block for production but this is not being taken up currently because of a dispute with RIL over migration of gas from ONGC
blocks, officials said.
From Cluster-II a peak oil
output of 77,305 barrels per day is envisaged within two years of start of production. Gas output is slated to peak to 16.56 million standard cubic meters per day by end-2021.