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		The logo of Oil and Natural Gas Corp&#39;s (ONGC) is pictured along a roadside in AhmedabaState-run Oil and Natural Gas Corporation (ONGC) is likely to issue bonds for its Rs 34,012 crore investment in bringing 10 oil and gas discoveries in the Krishna-Godavari basin into production.</div>
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		This is the first time the country&#39;s largest hydrocarbon explorer is considering issuing bonds. ONGC has earlier issued bonds for funding acquisitions of its overseas subsidiary ONGC Videsh Ltd (OVL).</div>
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		&quot;We are planning to issue bonds for our investments in the KG-DWN-98/2 block. The expenditure will start in 2017-18 and most of the money will be spent in 2018-19 and 2019-20. We are planning to issue bonds in 2018-19,&quot; said a source close to the development.</div>
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		The government recently slapped a $1.55-billion penalty on Reliance Industries and its partners BP and Niko for producing gas out of ONGC&rsquo;s share in KG-DWN-98/2.</div>
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		OVL in December raised $600 million and $400 million in two bond issues to buy 15 per cent in the Russia&#39;s second biggest oilfield Vankor from Rosneft for $1.268 billion. Later, it signed an agreement to buy an additional 11 per cent for $930 million.</div>
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		ONGC has begun the process for inviting tenders for KG-DWN-98/2. &nbsp;&quot;The project envisages the first gas to be produced by June 2019, the first oil by March 2020, with completion by June 2020-21,&quot; the source added.</div>
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		According to ONGC, Cluster 2 has recoverable reserves of 23.526 million tonnes oil and 50.706 billion cubic metres of natural gas. According to the memorandum of understanding between ONGC and Andhra Pradesh government, gas from the field will be brought by a pipeline to the state before being transported to end users.</div>
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		&quot;The amount to be raised through bonds will depend on the revenue flow and the trend in crude oil prices. If oil prices rise, the need for debt will be reduced,&quot; the source said.</div>
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		The block is divided into a northern area with deep water up to 1,800 meters and a southern area with ultra-deep water up to 3,100 meters. The northern part is divided into Cluster 1 having gas and Cluster 2 having a mixture of oil and gas.</div>
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		The investment plan of Rs 34,012 crore is for Cluster 2, from where fluids will be taken to an floating production, storage and offloading facility by pipeline. According to ONGC, the tender for the floating facility is at an advanced stage.<br />
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Govt recently slapped a $1.55-billion penalty on Reliance Industries and its partners BP and Niko

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ONGC to issue bonds for KG block development

Govt recently slapped a $1.55-billion penalty on Reliance Industries and its partners BP and Niko