The Hindu : Business : ONGC to produce gas from KG Basin by 2012

Online edition of India's National Newspaper
Wednesday, Jul 25, 2007
ePaper

Business

Business

ONGC to produce gas from KG Basin by 2012

Special Correspondent

Ties up with GAIL for transportation and marketing of gas

— PHOTO: KAMAL NARANG

COMING TOGETHER: A. K. Purwaha, Director-Business Development, GAIL (left), exchanging documents with A. K. Balyan (right), Director-Business Development, ONGC, after signing an agreement in the presence of U. D. Choubey (second from left), Chairman and Managing Director, GAIL and R. S. Sharma, CMD, ONGC, in New Delhi on Tuesday.

NEW DELHI: Oil and Natural Gas Corporation (ONGC) has drawn up plans to begin production from its Krishna Godavari Basin block off the East Coast by 2012. It has tied up with GAIL (India) Limited for transportation and marketing of the gas.

Talking to newsmen after signing an agreement with GAIL for monetising of the reserves here on Tuesday, ONGC Chairman and Managing Director R. S. Sharma said the corporation estimated an initial output of 12 million standard cubic metres a day from the KG-DWN-98/2 block in 2012. The block is right next to Reliance Industries’ 50 trillion cubic feet KG-D6 block expected to begin gas production by next year with an initial output of 40 mscmd.

Mr. Sharma said six discoveries had been so far made in the block, the largest being the December 2006 find that was estimated to hold an in-place reserve of 2.08 trillion cubic feet.

“We have got an appraisal of the discovery done by two independent domain experts and will submit the report to the Directorate General of Hydrocarbons (DGH) next month. Once the DGH approves it, we will file a development plan for bringing the discoveries to production,” he said.

Mr. Sharma said the 12 mscmd was only a preliminary estimate of initial output and actual production could be even higher.

ONGC has roped in Norsk Hydro of Norway and Petrobras of Brazil as equity partners in the block for the development of the deep-sea gas find.

GAIL Chairman and Managing Director U. D. Choubey said his company was exploring the possibility of joining hands with ONGC to take a close look at opportunities for setting up of city gas distribution networks for supply of CNG to automobiles and piped gas to households and commercial establishments for cooking purpose.

On the Mahanadi Basin find, Mr. Sharma said the recent gas discovery was not commercial on a standalone basis and the less than one trillion cubic feet reserves in that would have to be clubbed with other finds beginning production.

Printer friendly page
Send this article to Friends by E-Mail

Business

News Update

Stories in this Section