Indian state-owned oil and gas group Oil and Natural Gas Corporation (ONGC) plans to invest Rs 34,000 crore (US$5bn) in its KG Basin fields to boost production from this area, whose development has been delayed for years. ONGC aims to raise its oil and gas production by 20% in around 4 years.
The project will focus on the development of the Cluster 2, one of the three cluster placed under KG discoveries, estimated to hold 94 Mt of oil and 74 bcm of gas; cluster 1 (gas extraction dispute with Reliance) and cluster 3 are not included in the development plan. Cluster 2 will yield a peak production level of 3.5 Mt/year of crude oil (17% of the company's current production) and 16.3 mcm/d of gas (28% of its current gas production) within four years.
ONGC will set up a floating production, storage and offloading (FPSO) unit for processing oil, a gas processing platform and 430 km of sub-sea pipelines of various sizes. Crude oil production will start in March 2020 and gas production in June 2019.