High gas prices led ONGC to start integrated development of KG basin blocks at a cost of Rs 3,917 cr


High gas prices led ONGC to start integrated development of KG basin blocks at a cost of Rs 3,917 cr

High natural gas prices prompted Oil and Natural Gas Corp (ONGC) to start integrated development of offshore New Exploration Licensing Policy (NELP) block KG-OSN2004/1 and adjacent Petroleum Mining Lease (PML) block GS-49 at a cost of Rs 3,917 crore.

“Field development (for the two blocks) was not commenced immediately as it was unviable due low gas price prevailing at that point of time (2017),” the company said in an application to the environment ministry. “The development of KG-OSN-2004/1 block along with GS-49 has a total production potential of 5.55 million cubic meter per day of gas with eleven producer wells to deliver a cumulative gas production of around 13.16 BCM over 12 years,” it added.

The government had increased the prices of locally produced gas by 10 per cent to $3.69 million british thermal units (MMBTU) for the six-month period between April-September 2019. Read More

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