Kakinada: The Oil and Natural Gas Corporation Limited (ONGC) has created an Eastern Offshore Asset (EOA) for faster monetization of its discoveries along the east coast, with headquarters at Kakinada. The Rajahmundry Asset is mostly saddled with onshore activity.
EOA is a dedicated business unit entrusted with development of discoveries in G-1, GS-15, S-1, Vasishta and Manik fields of the prolific Krishna – Godavari basin. Production from this ‘East Coast hub’ is scheduled to start from the first half of 2010. Oil and gas production from Vasishta is expected to be 15.775 billion cubic meters (BCM) over a period of nine years with a peak rate of 5.75 million metric standard cubic meters per day. This project comprising S-1 and Vasishta is estimated to cost about $ 780 million.
An onshore terminal is proposed to be constructed at Vodalarevu for which land is being acquired. The ONGC has lined up total investments of $ 1 billion in Project Manik which consists of G-4-6 (deep water) and GS-29 (shallow water) fields.
Nearly 80 percent of the integrated development of G-1 and GS-15 fields has been completed. German firm Schlumberger and US-based Cameron are rendering down hole wells completion and sub-sea equipment services. Det Norske Veritas is certifying the works. G-1 and GS-15 fields are estimated to cost $ 450 million.
EOA Executive Director K Anjaneyulu told The Hindu production would be scaled up to 50 wells over the next five years. Seven rigs and an equal number of offshore vessels were under operation in EOA, which has about 15,400 square meters of land for different facilities. Nearly 32,370 square meters (eight acres) of land is sought from Kakinada Seaport Limited for additional infrastructure.