ONGC To Invest Rs 46 Billion In Andhra Oil And Gas Project

18 Aug 2025 CW Team

Oil and Natural Gas Corporation (ONGC) will invest Rs 46.06 billion in a large oil and gas project in Konaseema district, Andhra Pradesh.

The plan includes drilling 10 development wells, constructing two unmanned platforms, laying an offshore pipeline, and building an onshore gas processing facility at the Odalarevu Terminal. The project is part of the DSF-III contract areas KG/OSDSF/CHANDRIKA/2021 (697 sq km) and KG/OSDSF/GS49/2021 (148 sq km), awarded in September 2022.

The Environmental Management Plan (EMP) carries a capital cost of Rs 140 million and an annual recurring cost of Rs 30 million, with an additional Rs 140 million allocated under Corporate Environment Responsibility for Extended EMP.

ONGC has sought fresh environmental clearance from the Ministry of Environment and Forests, according to minutes from the Expert Appraisal Committee (EAC) meeting held on 24 July. The project requires 26.3 hectares at the Odalarevu Terminal, with 8.7 hectares—33 per cent of the total area—set aside for a greenbelt.

The project is expected to generate 150 direct jobs and 310 indirect employment opportunities. The EAC has asked for further inputs, including a biodiversity assessment and an environmental restoration plan with a dedicated budget to mitigate drilling impacts.

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