ONGC Plans Rs 46.06 Billion Andhra Gas Development Project

13 Aug 2025 CW Team

Oil and Natural Gas Corporation Limited (ONGC) will invest over Rs 46.06 billion to drill 10 development wells, build two unmanned platforms, lay an offshore pipeline, and establish an onshore gas processing facility in Konaseema district, Andhra Pradesh.

According to minutes from the Ministry of Environment and Forests’ Expert Appraisal Committee (EAC) meeting on 24 July, ONGC has sought fresh environmental clearance for the project. The plan covers offshore oil and gas contract areas KG/OSDSF/CHANDRIKA/2021 (Chandrika), spanning 697 sq km, and KG/OSDSF/GS49/2021 (GS49), covering 148 sq km, both awarded under the Discovered Small Field-III (DSF-III) round in September 2022.

The proposed installations will require 26.3 hectares at the Odalarevu Terminal site, with a greenbelt planned over 8.7 hectares—33 per cent of the total project area. The Environmental Management Plan (EMP) has a capital cost of Rs 140 million and a recurring annual cost of Rs 30 million, while Rs 140 million is allocated for the Extended EMP under Corporate Environment Responsibility.

Development wells are drilled in proven fields to extract oil or gas after exploration confirms commercially viable reserves. The project is expected to generate 150 direct and 310 indirect jobs.

The proposal was first reviewed by the EAC in February this year but deferred pending additional details. In its latest meeting, the committee again deferred approval, requesting further information, including a comprehensive biodiversity assessment and an environmental restoration action plan with dedicated funding.

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