ONGC plans ₹4,600-crore investment for oil and gas project in Andhra Pradesh

Time of India

3 days ago

State-owned oil and gas firm, Oil and Natural Gas Corporation Limited (ONGC), is investing over ₹4,600 crore to develop oil and gas reserves in the Konaseema District of Andhra Pradesh, reports news agency PTI.
The project includes drilling 10 development wells and establishing new infrastructure, and is currently awaiting environmental clearance from the Ministry of Environment and Forests.
According to the minutes of a meeting held on July 24 by the Ministry's Experts Appraisal Committee (EAC), ONGC has submitted an application for fresh environmental clearance.
The proposed development is part of the Discovered Small Field-III (DSF-III) programme, under which ONGC was awarded contracts for two offshore areas: KG/OSDSF/CHANDRIKA/2021 (Chandrika) and KG/OSDSF/GS49/2021 (GS49) in September 2022.
The project's scope is extensive, encompassing the setup of two unmanned platforms, the laying of an offshore pipeline, and the creation of an onshore gas processing facility at Odalarevu Terminal. A total land area of 26.3 hectares is required for the installation, with 8.7 hectares earmarked for a greenbelt.
The company has also outlined a budget for environmental management, with a capital cost of ₹14 crore for the Environmental Management Plan and a recurring annual cost of ₹3 crore.
This is not the first time the proposal has been before the EAC. The committee had considered it in February but deferred it, requesting additional information from ONGC.
In its most recent meeting, the EAC once again deferred the proposal, seeking further details. The committee has advised ONGC to conduct a comprehensive biodiversity assessment to evaluate the impact of the drilling activities and to prepare a detailed environmental restoration action plan with a dedicated budget.
The project is expected to create employment opportunities, generating 150 direct jobs and an additional 310 indirect jobs.>