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State-owned Oil and Natural Gas Corp (ONGC) plans to invest $2.894 billion (about Rs 15,340 crore) in developing its ultra-deepsea UD-1 gas discovery in the Krishna Godavari basin by 2016-17.
ONGC believes that UD-1 gas discovery in the southern part of its Block KG-DWN-98/2 can produce for 14-15 years with peak of about 20 million cubic metres per day (mmcmd) lasting for five years, official sources said.
The company detailed the production profile and the likely investment in the revised proposal for declaring the UD—1 find as commercial (called Declaration of Commerciality).
Block KG-DWN-98/2 sits next to Reliance Industries’ KG-D6 block where drop in reservoir pressure and water/sand ingress has seen output dip by over 35 per cent to just over 39 mmcmd.
UD-1 is the deepest gas discovery ever made in the country and ONGC estimates it may hold 4.257 trillion cubic feet of inplace gas reserves, sources said adding the upstream regulator, the Directorate General of Hydrocarbons (DGH) has accepted the DOC but with lower inplace volumes of 3.938 Tcf.
Of the inplace reserves, ONGC estimates 2.55 Tcf can be recovered while DGH puts the figure at 2.315 Tcf.
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