assure you that it will be in multi-billion dollars,” ONGC chairman and managing director S K Sarraf told reporters here.
This will be the largest investment in a single field by ONGC in its over six decades of existence, he said.
When asked for an approximate investment amount, the chairman refused to quantify, saying, “we are yet to finalise the details. But it will be in multiple billions”.
Company sources, however, told PTI that “going by the size of the fields and ultra-deep water drilling involved, it should be anywhere over $4 billion over the next three years when we will commission the project”.
Sarraf said on completion of the development by end 2019, the 98/2 fields in the D5 Block in the Krishna-Godavari (KG) Basin off Andhra coast, will be able to pump out 75,000 barrels a day of oil and 17 million standard cubic metres a day of gas.
“Over the next 15 years beginning 2020, we will see our output touching 23 million barrels of oil and 50.7 million cubic metres of gas from this field. We expect to achieve peak production levels by FY22,” he said.
Sarraf described the new oil and gas policy announced on March 10 as “the best thing happened in many decades as that was a golden day for the oil industry”.
The Cabinet approved a new pricing formula for gas discoveries made in difficult-to-access areas. The formula will be based on a weighted one-year average of prices of fuel oil, naptha and imported coal.
In a bid to attract investments in oil and gas sector, the government today announced a new pricing formula for undeveloped gas discoveries in difficult areas that would result in 85 per cent jump in rates and help monetise Rs 1.80 trillion of inert finds.