Standard Post with Image

ONGC to up gas output from KG Basin, awaits report for RIL Infra sharing

<p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Oil and Natural Gas Corporation (ONGC) expects to increase natural gas output from the Krishna Godavari Basin (KG Basin) region by commissioning two more wells- GI and SI Vasistha before August.&nbsp;</span></span></span><span style="color:rgb(105, 105, 105); font-family:arial; font-size:11px; line-height:1.6em">It expects to boost output by another 6 MMSCMD from G4, D and E wells by 2016-17, said Ashok Verma, Executive Director Asset Manager Eastern Offshore Asset of ONGC. Verma said that with the addition of gas output from two more wells by August next, the output from all the three wells, including operational, will go up to 2 MMSCMD, but will not be big enough to make a difference to power plants now based in Andhra Pradesh.</span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">He, however, hoped that the new wells from the KG Basin, which RIL has reported, could significantly boost the output from the KG Basin.&nbsp;</span></span></span><span style="color:rgb(105, 105, 105); font-family:arial; font-size:11px; line-height:1.6em">Speaking over phone, Verma said he expects infrastructure sharing to take place between ONGC and RIL, which will be beneficial to both companies.</span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">ONGC and RIL had signed an agreement to explore sharing of infrastructure for Eastern Offshore facility in July 2013. Later, ONGC had commissioned a study by independent expert Aker Consultants to study the feasibility of sharing infrastructure. &ldquo;Typically, we may need, say, up to $1 billion investment to set up infrastructure of this kind. By sharing such infrastructure already created, ONGC and RIL will also gain as they have created huge capacity,&rdquo; he explained.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The next phase of gas output from ONGC wells can gain from this infrastructure sharing and take the capacity up to 8 MMSCMD.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Source-On Request</span></span></span></p>