About $23 billion is planned to be invested in the oil and gas fields of the KG Basin, Oil Minister Dharmendra Pradhan told Parliament on Monday.
“The operators of blocks /fields in KG basin under Production Sharing Contract (PSC) regime and nomination fields have submitted DoC (Declaration of Commerciality)/FDP (Field Development Plans) for the commercial oil and gas discoveries along with projected investment estimates,” Pradhan said, adding that the estimated investment from these plans were $22.9 billion.
The new oil and gas production from these fields in the KG Basin is expected to reach up to 22.27 billion cubic meters of gas and 4.68 million metric tonnes of oil by 2021-22, Pradhan said.
Last month, Reliance Industries and BP announced a $6 billion investment plan to develop three new fields in the KG Basin. The two companies plan to award contracts to develop the ‘R-Series’ deep water gas field that is expected to produce up to 12 million cubic meters of gas a day from 2020. They plan to submit development plan for two more projects by the end of 2017. Together, the three fields are expected to produce 30-35 million cubic meters of gas a day by 2022.
Last year, ONGC unveiled a $5 billion investment plans for developing its fields in the KG Basin.