HomeChemical Industry DigestNewsONGC to Invest ₹4,600 Crore in KG Basin Project Expansion

ONGC to Invest ₹4,600 Crore in KG Basin Project Expansion

Oil and Natural Gas Corporation Limited (ONGC) will invest over ₹4,600 crore in a new development project in the Konaseema District of Andhra Pradesh. The plan includes drilling ten development wells, constructing two unmanned platforms, laying an offshore pipeline, and setting up a new onshore gas processing facility. ONGC has formally sought fresh environmental clearance to proceed with the project.

Linked to DSF-III Contract Areas

The development forms part of the DSF-III (Discovered Small Field-III) contract areas, for which Letters of Award were issued by the Director General of Hydrocarbons in September 2022. The project spans two offshore blocks:

*KG/OSDSF/CHANDRIKA/2021 (Chandrika) – covering 697 sq. km

*KG/OSDSF/GS49/2021 (GS49) – covering 148 sq. km

Strengthening Exploration and Production on the East Coast

The significant investment underscores ONGC’s commitment to boosting oil and gas output from India’s East Coast. As reported by newsonprojects.com, by developing these offshore fields, the company aims to expand domestic production, enhance energy security, and strengthen its position in the Krishna-Godavari Basin.

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