Oil and Natural Gas Corporation (ONGC) is eyeing approval from upstream regulator DGH to commence investing $5.07 billion in bringing to production oil and gas discoveries in its Bay of Bengal block KG-D5. About a year back, the company had submitted to the Directorate General of Hydrocarbons (DGH) a field development plan (FDP) for bringing to production ten oil and gas discoveries in KG basin block KGDWN-98/2 (KG-D5), which sits next to Reliance Industries’ flagging KG-D6 fields.
A meeting of the block oversight panel, Management Committee (MC) headed by DGH, has been called next week to review the FDP. ONGC is India’s largest government-run corporation and produces about 70% of India’s crude oil and natural gas. The corporation is the biggest public sector commercial organization in India with current market capitalization of about $31 billion.