Oil and Natural Gas Corporation (ONGC), the country’s largest petroleum explorer announced a Rs 34,012 crore investment to bring into production the Krishna-Godavari basin oil and gas field by 2020.
“The investment will be made over four years to bring Cluster 2A and 2B into production. At its peak in 2023, the field will contribute 3.5 million tonnes (mt) of oil, around 15 per cent of the total oil production envisaged by then,” ONGC Chairman D K Sarraf said after a board meeting. “Also, gas production at its peak will be five billion cubic metres, or 25 per cent of total output,” he added. ONGC produced 18 mt of crude oil in 2014-15, less than a half of India’s total crude oil output of 38 mt. The company’s upcoming KG-DWN-98/2 block, popularly known as KG-D5, is divided into three vertical clusters. The top cluster, Cluster 1, is embroiled in a controversy with ONGC accusing migration of gas from the field to the adjoining fields of Reliance Industries.