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RIL's KG setup may save ONGC $800 Million

State-owned ONGC could save up to $800 million on capital costs if it decides to use infrastructure facilities owned by Reliance Industries (RIL) at KG Basin for processing gas, according to a draft report submitted by Aker Solutions. Norway-based Aker Solutions , appointed by ONGC to explore the possibility of sharing RIL's infrastructural facilities on the East Coast, is expected to submit its final report next month, sources close to the development said.

"The capital cost savings of ONGC will be in the range of $700-800 million. ONGC will process its gas output from some of the fields in KGBasin in RIL facility and in return RIL will get processing charge. "That way, sharing of infrastructure will be beneficial for both the companies if they decide to go ahead with Aeker's report," a source privy to the draft report submitted by Aker said.

Source-On Request