The joint venture of public sector oil major ONGC Ltd and Cairn India which struck huge oil and gas reserves at Nagayalanka and other villages in Krishna district, is all set to commence production. A Field Development Plan (FDP) will be submitted by the month-end.
Besides, the ONGC is gearing up to start production in Mandapeta in East Godavari and Malleswaram oil and gas reservoirs in Krishna district explored over a year ago. The Mandapeta gas field will be developed on a fast-track mode for a yield of 2.5 lakh cubic metres of gas a day within a year while efforts are on to produce 250 tonnes of oil a day from Malleswaram plant within two years.
Executive Director of ONGC, Rajahmundry Asset, Debashish Sanyal told The Hindu that once the FDP was approved, a sum of $ 700 million to $ 750 million would be invested on the block in five years. The investment would include creation of production facilities, the ED said.
“As per the Declaration of Commerciality (DoC) documents, the Nagayalanka field has oil resources of about 320 million barrels, of which about 40 million barrels can be recovered. There are also small amounts of gas with recoverable reserves of around 70 billion cubic feet (BCF)," Mr. Sanyal added.
In phase I, five exploration wells were drilled and the Nagayalanka-1z well resulted in the Raghavapuram discovery. In phase-II, the Nagayalanka-SE-1 exploration well was drilled and resulted in discovery of hydrocarbons. On future development plans, Mr Sanyal said 20 wells would be drilled in the next three years. ONGC would undertake cluster drilling (drilling of more than one well from a single point) in four clusters with each cluster having five wells.
