KG Basin oil and gas project on schedule as of now: ONGC

Refuting media reports about delays in developing its Krishna Godavari (KG) Basin offshore project, state-run explorer ONGC on Monday said that schedules are being maintained as of now and any overshooting of deadlines will only be known at a later date.

In a regulatory filing, the Oil and Natural Gas Corp (ONGC) said it has already started work as per the approved field development plan (FDP) for the KG-DWN-98/2 deep water block in the Bay of Bengal.

Citing unnamed ONGC officials, media reports earlier this month said the company is looking at a delay of at least a year in starting production and would be unable to produce the first gas from the block until at least the second half of 2020.

"Subsequent to the approval of the Field Development Plan (FDP) by the ONGC Board on March 28, 2016, the company has initiated activities for procurement of goods and services required to execute the plan envisaged in the FDP such as drilling, completion of wells, creation of production and processing facilities, transportation pipelines, among others," ONGC said.

The state-run firm clarified that the introduction of various new policies in the sector on exploration and licensing had "led to deferment of tendering activities".

"As of now, the project schedules are being maintained as planned. However, due to very complex nature of the project, there may be a possibility that the schedules may get exhausted which will only be known at a later date."

The media report had said that the delay in finalising the tenders implied that ONGC would be unable to start drilling wells in the block until next year.

To this, ONGC said: "Despite changes in policies concerning the oil mining sector, the company is making efforts to execute the projects at the earliest possible time. Delay in execution, if any, is not ascertainable precisely as of now."

According to the company, the estimated capital expenditure for the project is $5076.37 million.

--IANS

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