ONGC to spend Rs 2,150 crore to drill exploration wells in Andhra and Godavari

12 Dec 2022 , 02:44 PM

Oil and Natural Gas Corporation Ltd plans to invest Rs 2,150 crore in drilling 53 exploration wells in Andhra Pradesh: 50 in the Godavari on-Land PML (Petroleum Mining Lease) Block of KG Basin and three in the CD-ONHP-2020/1 (OALP-Vi) Block of Cuddapah Basin.

The ONGC submitted two different applications for environmental clearance, which the Andhra Pradesh State-Level Environment Impact Assessment Authority (SEIAA) approved in a meeting last month. Based on its geological and geophysical research, ONGC claims that it will conduct 50 onshore exploration wells in the Godavari on-land PML block of the KG basin in the East and West Godavari Districts of AP between 2021 and 2028.

In addition, it stated that if these wells are determined to be commercially viable, they will be transformed into development wells and connected to the closest Early Production System (EPS)/Gas Collecting Station (GCS). According to ONGC, the total cost of the exploratory wells in the KG basin is Rs 2,000 crore (about Rs 40 crore per well) also the drilling for exploratory purposes at each well location will take three to five months and cost an estimated Rs 150 crore for the three wells. From the KG Basin, ONGC now produces 4.4 million standard cubic feet of gas and more than 700 tonnes of oil each day.

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