Monday, March 28, 2016
Oil and Natural Gas Commission board on Monday approved an investment of Rs.34,000 crore to develop Krishna-Godavari basis deep water KG-DWN 98/2 block’s cluster 2.
The Cluster 2 is projected to produce a total of 23.5 million tonnes of oil and 50.7 billion cubic metre of gas over the life of the field. It is expected to hit net peak production of 77,000 barrels per day of crude oil and 16.29 million metric standard cubic metres per day of gas by 2021-22.
The decision comes days after Narendra Modi government allowed producers to claim a higher price for gas extracted from hydrocarbon basins located in the deep water and ultra deep water areas of India where development costs can be significantly higher . ONGC will have marketing and pricing freedom for the gas. KG-DWN 98/2 has been divided into three clusters 1, 2 and 3. Cluster 2 has been divided into two parts:2A and 2B. Cluster 2A has estimated in place reserves of 94.26 million tonnes of crude oil and 21.75 billon cubic meters of associated gas.