State-owned Oil and Natural Gas (ONGC) is planning to develop its KG-DWN-98/2 block (KG-D5) oil and gas block in Krishna-Godavari basin off the east coast of India with an investment of up to $7bn over the next three years.

oil field

ONGC chairman Dinesh Sarraf was quoted by Financial Express as saying that the company expects to commence gas and oil production at the block in 2018 and 2019, respectively.

The company is preparing to submit the draft field development plan (FDP) to the upstream regulator Directorate General of Hydrocarbons (DGH) for approval.

The KG-D5 block, which divided into the northern discovery area (NDA) and southern discovery area (SDA), is expected to have peak oil production capacity of 77,000 barrels per day and up to 17 million cubic meters of natural gas per day.

The NDA area, which is divided into two clusters, is estimated to host 121 million tons of oil and 78 billion cubic meters (bcm) of gas, while the SDA is believed to have 80.9bcm of gas reserves, Press Trust of India reported earlier.

ONGC was granted license for the deep-water block in 2000; however, the company deferred its development plan over reduced capital expenditure triggered by higher subsidy rate.

Image: ONGC is preparing to submit the KG-DWN-98/2 field development plan to upstream regulator. Photo: courtesy of num_skyman/