ONGC KG Gas Viable at $4.20 per Unit

The Economic Times has reported that Oil & Natural Gas Corp's gas find in the Krishna-Godavari basin, adjoining Reliance's D6 block, is economically viable at the current market price of $4.20 per unit.

ONGC had earlier estimated that the block would be commercially viable at a price of $7 per unit.

The block, called UD-1, can begin production in four years if management committee approves the project at its meeting scheduled this week.

ONGC discovered the UD-1 gas field in the southern part of KG-DWN-98/2 block along with five other discoveries within two years of increasing its stake to 90% in the block, in which Cairn India has reduced its holding to 10% in 2005.

This is the deepest gas discovery in the Indian basin at a depth of 2,841 metres. The block is divided into two parts, the northern discovery area (NDA) and SDA. NDA has nine discoveries and SDA has the UD-1 discovery.