Upstream oil regulator DGH has refused to review the commerciality of India’s deepest gas discovery made by Oil and Natural Gas Corp (ONGC) on grounds that developing the find poses technological challenges.
ONGC plans to invest Rs 21,528.10 crore to develop the ultra deepsea UD-1 discovery in its Bay of Bengal block KG- DWN-98/2 (KG-D5) by 2022-23. The find would have helped double the output from the KG block.
It had earlier this year submitted to the Directorate General of Hydrocarbons (DGH) for approval a declaration of commerciality (DoC) of UD-1 find, sources with direct knowledge of the development said.
DGH, however, refused to review the DoC on grounds there was no technology available to produce gas from such water depths, they said.
A senior ONGC official said it is beyond the mandate of the regulator to not review a discovery and look into technology.
“We are the operator and are confident of technology being available to develop the discovery,” he said adding the company has replied to DGH over its concern Read more
Latest posts by The Economic Times (PTI) (see all)
- Railways To Use Mathematical Formula To Maximise Loco Usage, Increase Revenue - March 17, 2018
- India Offers Rs 1 Lakh Crore Business In Bio-fuel, Bio-energy: Dharmendra Pradhan - March 15, 2018
- Suzlon Bags 75 MW Order Through MSEDCL Bid - March 12, 2018