The Krishna-Godavari Basin is likely to see a total investment outlay of over $14 billion by two oil and gas exploration and production companies by 2021-2023, according to a senior Government official.
ONGC’s field development plans estimates production of 15-18 million metric standard cubic metres per day, while another major player (Reliance Industries) may produce about 25-30 mmscmd. Together, these two players plan to produce more than 40-43 million tonnes of oil equivalent from the Krishna-Godavari Basin, which has huge potential, said Atanu Chakraborty, Director-General of Hydrocrabons, Ministry of Petroleum and Natural Gas. In addition to these two majors, investments from other players are also in the pipeline.
Speaking on the sidelines of a meeting hosted by the Ministry to share the progress made under the Open Acreage Licensing Policy here today, the DG said, “While it is a fact that gas production has dropped significantly in the Krishna-Godavari basin from a peak of 65 mmscmd, due to various reasons, including high pressure, high carbon dioxide, high temperature and hostile deep water environs ranging from 1,200 to 2,600 metres, we expect to see more investment and output from the basin, which holds immense potential for the country.”
Under the Open Acreage Licensing Policy, of the 55 blocks being offered, with potential area of about 60,000 sq km, five more blocks are now being offered in the KG Basin. These are estimated to hold resources of about 9.555 mmtoe (million tonnes of oil equivalent).
According to data provided by the DGH, based on the geoscientific information of blocks under the Hydrocrabon Exploration and Licensing Policy, the KG Basin comprises 28,000 sq km onland and 2,02,000 sq km of offshore area. While barely about 2000 sq. km has been offered, the extent now offered is nearly five times that, covering three onshore and two offshore blocks.
The KG Basin, considered to be one of the most prolific basins in the country for oil and gas, is being closely watched by contractors and investors as it has huge potential. While in the past, the D1 and D3 Blocks had good output, they were affected by water ingress, following which output fell. “Once we see high levels of production again, this will make a huge contribution to the country's oil pool,” he said.