ONGC received environmental nod for 53000 crore rupees KG basin project

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Who: ONGC
What: Received environmental clearance
When: 22 January 2016
Why: For 53000 crore rupees KG basin project

Oil and Natural Gas Corporation (ONGC) on 22 January 2016 received environmental clearance from the Ministry of Environment and Forests for drilling 45 developed wells in the Krishna Godavari (KG) basin in Andhra Pradesh. The total cost of the project is estimated at 53000 crore rupees.

ONGC is planning to drill 45 development wells and set up a Floating Production Storage and Offloading (FPSO) facility, among others. The project will be implemented in the northern discovery area of NELP-I offshore block KG-DW N-98/2.

It is expected that the proposed development drilling and subsequent development of fields will lead to production of 51.33 billion cubic meters of gas over a period of 16 years and 26.71 million cubic meters of oil in 12 years.

Among specific conditions, ONGC has been asked to obtain:

• Coastal Regulation Zone (CRZ) clearance
• Approval from Directorate General of Shipping for commencement of drilling

ONGC has also been asked to comply with all recommendations and conditions specified by Andhra Pradesh Coastal Zone Management Authority. It has also been asked to use high efficiency diesel generator sets, adopt conservation measures to protect marine life and develop waste minimisation plan, among others.

About proposed project

The proposed project will be implemented in the northern discovery area of NELP-I offshore block KG-DW N-98/2.

The block is divided into Northern Discovery Area (NDA) having deep waters with depth of up to 1800 meters and the other one is Southern Discovery Area (SDA) which has ultra-deep waters having depth of up to 3100 meters.

NDA has two clusters: Cluster 1 predominately has gas, and Cluster 2 holds a mixture of oil and gas.

As per the proposal, the gas will be evacuated from Cluster 1 through dual subsea pipelines connecting to the fixed platform. From this platform, de-hydrated gas will be transferred to already existing onland terminal at Odalarevu, East Godavari district, by subsea pipeline. This pipeline will be connected directly to GAIL custody transfer point.

From Cluster 2, the hydrocarbon fluids will be taken to an FPSO facility through dual subseas pipeline. The stablised crude oil will be transported through sea tankers and compressed and dehydrated gas will be evacuated on to fixed platform from FPSO to Odalarevu Onshore Terminal through dual subsea pipeline reaching the onland terminal to GAIL for custody transfer.

About Krishna Godavari Basin

Krishna-Godavari Basin is a peri-cratonic passive margin basin in India.

It is spread across more than 50000 square kilometres in the Krishna River and Godavari River basins in Andhra Pradesh.

The site is known for the D-6 block where Reliance Industries discovered the biggest natural gas reserves in India in 2002.