Oil and Natural Gas Corporation (ONGC) on Tuesday announced mega plans to invest over $10 billion in the new gas discoveries off the East Coast to bring them to production.
Speaking on the sidelines of the Petrotech 2010 conference here, ONGC Director (Exploration) D. K. Pande said the corporation was aiming to develop finds in the KG basin through four different projects. “We are targeting 25-30 million standard cubic metres a day (mscmd) of natural gas production by 2014-15,'' he added.
The G-1 and G-15 fields would produce 2 mscmd of natural gas from 2011 while S-1 and Vasistha deep-water project would produce 5 mscmd.
However, the major push would come from development of finds in and around block KG-DWN-98/2, next to Reliance Industries' KG-D6 block.
Mr. Pande said the block now had ten gas discoveries and ONGC planned to tie-up nine of these with six gas finds in neighbouring 1G block to produce 20-25 msmcd from 2014-15. “This development will cost $4.5 billion,'' he said.
Another $5 billion would be needed to develop the ultra-deep sea UD-1 discovery in the KG-DWN-98/2. This discovery would be developed at a later date. ONGC was in talks with energy majors BP, Exxon Mobil, the BG Group and Eni for a strategic tie-up for developing the KG basin discoveries.
Besides, ONGC planned to produce 10,000-20,000 barrels of oil a day from G-4-6, GS-29-1 and G-4-5 by 2012-13, he said.