ONGC draws Rs 53,000-crore plan for KG block: Report

State-owned ONGC is in the midst of a programme to drill a total of 45 development wells in the Krishna-Godawari deepwater block KG-DWN-98/2, at a whopping Rs 53,085 crore, which also includes setting up a floating, production, storage and offloading (FPSO) system and a fixed offshore platform, an industry web site said.

When contacted, ONGC officials said the field development plan (FDP) for the KG block was yet to be finalised. They added that ONGC has a deadline to submitted the FDP to the Directorate General of Hydrocarbon by September. At present, it is carrying out additional drilling to add more to the reserves. It is looking at two options: To add more reserves or optimise infrastructure development. Both of these would help reduce the development cost.

ONGC officials say the total development cost would not exceed $5-6 billion.

The website — Indiapetroplus — said that while the total oil initially in place in the block is estimated at 106 million cubic metres, production of only 26.71 million cubic metres is envisaged in 2019-2031. Similarly, the gas initially in place is estimated at 69.57 BCM, of which only 51.33 BCM can be produced in 2018-34.

The discovery area of the block has been split into two: The Northern Discovery Area (NDA) and the Southern Discovery Area The NDA is further divided into two primary production areas: Cluster-1 (gas-rich) and Cluster-2 (both oil and gas).