India to invest $23 billion in KG Basin oil and gas fields

India to invest $23 billion in KG Basin oil and gas fields

India will invest nearly US$23 billion in the oil and gas fields of the Krishna-Godavari (KG) Basin, in a further boost to the nation’s growing hydrocarbons sector.

The basin, which is located on the East coast of Andhra Pradesh, both onshore and offshore, will receive an estimated investment figure of $22.9 billion, revealed India’s Oil Minister Dharmendra Pradhan to parliament.

“The operators of blocks and fields in the KG basin, under the Production Sharing Contract (PSC) regime and nomination fields, have submitted Declaration of Commerciality (DoC) and Field Development Plans (FDP) for the commercial oil and gas discoveries along with projected investment estimates,” said Pradhan.

New oil and gas production from the fields is expected to reach up to 22 billion cubic metres of gas and 4.7 million metric tonnes of oil by 2021-2022.

Last month, Reliance Industries and BP announced a $6 billion joint venture which will develop three new fields in the KG Basin, while national firm Oil and Natural Gas Corporation (ONGC) also recently committed $5 billion to new fields in the region.