$23 bn investment planned in KG Basin oil, gas fields

Oil and gas fields in the Krishna Godavari (KG) Basin in India's eastern offshore would attract investment of about $23 billion for these hydrocarbons' exploitation, Parliament was informed on Monday.

"The operators of blocks/fields in KG basin under Production Sharing Contract (PSC) regime and nomination fields have submitted DoC (Declaration of Commerciality)/FDP (Field Development Plans) for the commercial oil and gas discoveries along with projected investment estimates," Petroleum Minister Dharmendra Pradhan told the Lok Sabha in a written reply, adding that the estimated investment from various stakeholders was $22.9 billion.

The new oil and gas production from these fields in the KG Basin is expected to reach up to 22.27 billion cubic meters of gas, and 4.68 million metric tonnes of oil by 2021-22, he said.

Last month, Reliance Industries and British major, BP, annnouced the creation of a joint venture energy vertical to work across the entire value chain, involving investment of $6 billion, or Rs 40,000 crore. This would also develop their existing deep water gas fields in India's eastern offshore to bring to fresh production 1 billion cubic feet per day of natural gas by 2022.

Pradhan also informed the Lok Sabha on Monday that the Cabinet Committee on Economic Affairs had given in-principle approval for sale of the government's 51.11 per cent stake along with the management control of oil marketer HPCL to the exploration firm ONGC.

Hindustan Petroleum Corporation Ltd (HPCL) will continue as a public sector undertaking after Oil and Natural Gas Corporation Ltd (ONGC) acquires its stake, he said.

"The proposed acquisition in the oil sector will create a vertically integrated public sector oil major company having presence across the entire value chain.

"This will give ONGC an enhanced capacity to bear higher risks, take higher investment decisions and to neutralise impact of global crude oil price volatility," he said.

--IANS

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