ONGC to invest USD 5 bn in KG basin
ONGC to invest USD 5 bn in KG basin PSU oil and gas giant, ONGC (Q, N,C,F)* will invest USD 4.5-5 billion in developing its ultra deep-sea Krishna Godavari basin gas field, by 2012-13, reports agency source. Initial output is estimated to be in the range of 12-15 million standard cubic meters(mscm) per day. The company is firming up an appraisal plan for integrated development of the discoveries in shallow to deepwater (northern) part of the KG-DWN-98/2 block along with other fields in adjoining nomination acreages, w hich is projected to yield 12-15 mmscmd by 2012-13. ONGC, in December 2006 had made the nation`s first ultra-deepwater discovery. The block is next to Reliance Industries` KG-D6 block. >ONGC and its Cairn India which holds 10%, have made seven gas discoveries in the block till date, the largest being in one discovered in December holding in-place reserve of 2.08 Trillion cubic feet. ONGC has made three gas discoveries in adjoining blocks and is planning integrated development of all the finds. ONGC has tied up with Norsk Hydro of Norway and Petrobras of Brazil for equity participation in the block for the development of the deep-sea find.
Shares of ONGC gained Rs 50.65, or 5.95%, to end at Rs 901.5. The total volume of shares traded was 810,205 at the BSE. (Wednesday).
