ONGC to get 72 acre from Andhra, begin onshore KG-D5 facility work
By Narayana Krishna
HYDERABAD: Oil and Natural Gas Corp Ltd plans to soon begin work to set up onshore facilities near Kakinada to process gas from its KG-DWN-98/2, or KG-D5, block after the Andhra Pradesh government hands over 72 acres land to the company today, sources in the know of the development told Cogencis.
The state-owned exploration and production major plans to set up an onshore receiving and processing plant, which will be the point where the fuel is landed, for the KG-98/2 block, source said.
The Andhra Pradesh Industrial Infrastructure Corp, a nodal agency of the state government, will allocate 72 acres land near Kakinada, the papers for which will be handed over by Chief Minister N. Chandrababu Naidu at a function today.
ONGC has paid 1.32 bln rupees for the land, which is adjacent to the special economic zone being developed by GMR group.
ONGC is actively working on development plans for its KG-98/2 block, and gas production from the block is expected to start in 2018 and oil production in 2019, according to earlier reports.
The company hopes to start with around 10 mscmd gas output from the block with a peak of around 20 mscmd by 2021. Oil output is seen at 70,000-90,000 barrels per day.
Investment on development of the block it seen over $5 bln.
ONGC’s KG-D5 block is adjacent to Reliance Industries Ltd’s once-prolific KG-DWN-98/3 block, commonly known as KG-D6 block.
At 1048 IST, ONGC shares were down 0.9% at 304.90 rupees on the National Stock Exchange.