ONGC to invest Rs 2,150 crore on drilling 53 exploratory wells in Andhra Pradesh
Andhra Pradesh SEIAA in a meeting held last month cleared two separate proposals put up by the ONGC for environmental clearance.
Oil and Natural Gas Corporation Ltd proposes to drill 53 exploratory wells in Andhra Pradesh- 50 in Godavari on-Land PML (Petroleum Mining Lease) Block of KG Basin and three in CD-ONHP-2020/1 (OALP-Vi) Block Of Cuddapah basin with an investment outlay of Rs 2,150 crore.
Andhra Pradesh State-Level Environment Impact Assessment Authority (SEIAA) in a meeting held last month cleared two separate proposals put up by the ONGC for environmental clearance.
According to ONGC, it proposes to carry out the onshore exploration of 50 wells during 2021-'28 in Godavari on-land PML block of KG basin in East and West Godavari Districts of AP based on the geological and geophysical studies.
These wells will be converted to development wells and connected to the nearest Early Production System (EPS)/ Gas Collecting Station (GCS) if proved commercially viable, it further said.
"Total of Rs 2,000 crore (approximately Rs 40 crore for each well), ONGC said in case of KG basin exploratory wells.
ONGC proposes to carry out the prospecting and exploration drilling in the CD-ONHP-2020/1 block of Cuddapah basin falling in Kurnool, Anantapur and YSR Kadapa districts of AP, it said in another proposal adding based on the geological and geophysical studies the three exploratory locations are planned to be drilled during the period 2021-24.
ALSO READ | Air India in talks for acquiring 500 aircraft
The estimated project cost for the three wells would be Rs 150 crore and it would take three to five months for exploratory drilling at each well site, ONGC said.
"The Committee after examining the project proposals, presentations, MoEF&CC Notifications & OMs and detailed deliberations, recommended to issue environmental clearance with following additional conditions?," the SEIAA said while giving its nod.
The proponent shall have the liability to pay compensation to the farmers and property holders in case of damages due to operation of wells, the committee said as one of the conditions.
ONGC currently produces 4.4 million standard cubic feet of gas and over 700 tonnes of oil from KG Basin per day.
Click Here For Latest Updates On Stock Market | Zee Business Live
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.