ONGC Plans to Invest $9 Bn to Boost KG Basin Output

India’s Oil and Natural Gas Corp (ONGC) plans an investment of $9 billion to boost oil and gas output in Krishna Godavari basin off the eastern coast of the country by 2017-18, reports Press Trust of India.

ONGC has made 11 oil and gas discoveries in the Block KG-DWN-98/2, which sits next to Reliance Industries' KG-D6 Block and Gujarat State Petroleum Corp's Deendayal gas field.

The block is divided into a Northern Discovery Area (NDA) and Southern Discovery Area (SDA). ONGC plans to invest $9 billion in producing from discoveries in NDA, says Press Trust.

"We are looking at producing 2.5-3 million tons of oil (per annum) and 9-10 million standard cubic meters per day of gas from the Northern Development Area of Block KG-DWN-98/2," ONGC director (Exploration) N K Verma told Press Trust in New Delhi.

NDA holds an estimated 92.30 million tons of oil reserves and 97.568 billion cubic meters of inplace gas reserves spread over seven fields.

Cairn India holds 10 per cent in the block.

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