ONGC Plans ₹4,600 Crore Push for Big KG Basin Project
Mega drilling, platforms, and pipeline plan awaits clearance.
Oil and Natural Gas Corporation Limited (ONGC) is gearing up for a massive investment of over ₹4,600 crore to boost production in the Krishna-Godavari (KG) Basin off the East Coast. The state-run energy giant has proposed drilling 10 development wells, setting up two unmanned offshore platforms, laying an offshore pipeline, and establishing an onshore gas processing facility in Andhra Pradesh’s Konaseema district. The company has already approached the Ministry of Environment and Forests for fresh environmental clearance, according to the minutes of a July 24 meeting of the ministry’s Expert Appraisal Committee (EAC).
The development work will focus on two contract areas—KG/OSDSF/CHANDRIKA/2021 (697 sq km) and KG/OSDSF/GS49/2021 (148 sq km)—awarded under the Discovered Small Field-III (DSF-III) policy in September 2022. ONGC plans to use 26.3 hectares of land for the project, including the Odalarevu Terminal, with one-third of the area dedicated to greenbelt development. The project will also see a ₹14 crore capital investment for an Environmental Management Plan (EMP) and ₹3 crore in annual recurring costs, alongside ₹14 crore earmarked for corporate environmental responsibility.
Development wells, unlike exploratory ones, are drilled in proven areas to tap confirmed reserves of oil and gas. ONGC estimates that the project will generate 150 direct and 310 indirect jobs in the region. However, the proposal is yet to receive a final nod from the EAC. While the project was initially considered in February, the committee deferred it, seeking additional data from ONGC. In its latest review, the EAC again postponed approval, advising the PSU to conduct a comprehensive biodiversity assessment and prepare a detailed environmental restoration plan with a dedicated budget.
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If cleared, the investment could mark a significant step toward enhancing India’s domestic energy output, but environmental safeguards remain a decisive factor in moving forward.
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