ONGC to Invest Rs 4,600 Cr for 10 Wells and Infra in KG Basin

• ONGC will invest Rs 4,600 crore in drilling wells and building facilities in Konaseema, Andhra Pradesh
• The project covers 845 sq km offshore and aims to create 460 jobs
• Environmental clearance is pending, with the committee requesting more information from ONGC

After the Ministry of Environment and Forests issued a new environmental clearance, ONGC, a state-owned company, will be investing more than Rs 4,600 crore in oil and gas infrastructure development in Konaseema District, Andhra Pradesh. The project involves drilling 10 development wells, constructing two unmanned platforms, an offshore pipeline, and an onshore gas processing facility.

An environmental clearance application was submitted to the Ministry of Environmental and Forests by ONGC (Oil and Natural Gas Corporation), according to the minutes from an Experts Appraisal Committee (EAC) meeting dated on July 24.

It should be noted that the offshore contract areas were awarded on the basis of an LOA granted by the Director General of Hydrocarbons in September 2022. The offshore contract areas comprise 697 sq km, as well as an additional 148 sq km along the East coast, awarded to the DSF-III round (Discovered Small Field-III).

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EAC stated, "Total land area required is 26.3 hectares (Odalarevu Terminal) for the proposed installation. Greenbelt will be developed in a total area of 8.7 hectares, i.e., 33% of total project area. The estimated project cost is Rs. 4,606.35 crores".

The statement added, "Capital cost of EMP (Environmental Management Plan) would be Rs. 14 crores and recurring cost for EMP would be Rs. 3 Crores per annum. Industry proposes to allocate Rs. 14 Crores towards Extended EMP (Corporate Environment Responsibility)".

Development wells are drilled in proven areas to extract oil and gas after confirming commercially viable reserves through prior exploration and appraisal drilling. The project is expected to generate approximately 150 direct jobs and 310 indirect jobs, boosting local employment.

The EAC reviewed the proposal in February 2025 but deferred approval, requesting further information from ONGC. In its latest meeting, the committee again postponed the decision, seeking additional details before granting clearance.