Bid & Tender
ONGC Plans to Use Undersea Infrastructure of GSPC

Date : Jun 27, 2017

Oil and Natural Gas Corporation (ONGC) plans to use undersea infrastructure of Gujarat State Petroleum Corporation (GSPC) to produce gas from its own KG-basin fields in the Bay of Bengal. Last year ONGC agreed to buy 80% interest in the KG-OSN-2001/3 block, which sits next to the state-owned firm’s KG-DWN-98/2 or KG-D5 block. “ONGC has finalised a $ 5.07 billion plan for developing the Cluster-II finds by 2019-20. First gas production is envisaged by June 2019 and oil will start flowing from March 2020,” a company official reported to a leading business daily.

 

ONGC, which made an investment of Rs. 340.12 billion in bringing to production 10 oil and gas discoveries in Cluster-II, plans to invest another Rs. 215.2810 billion in developing the ultra deep sea UD-1 find (Cluster-III) by 2022-23. The 7,294.6 sq km deep sea KG-D5 block has been broadly categorised into Southern Discovery Area (SDA-3,494 sq km) & Northern Discovery Area (NDA-3,800.6 sq km). NDA has 11 oil and gas discoveries while SDA has the nation’s only ultra-deep sea gas find of UD-1. These finds have been clubbed into three groups, Cluster-I, Cluster-II and Cluster-III.

 

From Cluster-II, a peak oil output of 77,305 barrels per day is envisaged within 2 years of start of production. Gas output is slated to peak at 16.56 million standard cubic metres per day by 2021 end. Cluster-I field will be developed at an additional investment of Rs. 42.5959 billion and will produce about 3 mmscmd of gas. Cluster 2A mainly comprises oil finds of A2, P1, M3, M1 and G-2-2 in NDA which can produce 77,305 bpd (3.86 million tonnes per annum) and 3.81 mmscmd of gas. Cluster 2B, which is made up of four gas finds R1, U3, U1, and A1 in NDA envisages a peak output of 12.75 mmscmd of gas.