ONGC To Invest Rs 8.11 Billion In Andhra Onshore Oil, Gas Project

08 Oct 2025 CW Team

The Oil and Natural Gas Corporation Limited (ONGC) is set to invest Rs 8.11 billion for the onshore development and production of oil and gas from 172 wells across eight Production Mining Licence (PML) blocks in Andhra Pradesh.

A committee under the Ministry of Environment, Forest and Climate Change (MoEFCC) has recommended environmental clearance (EC) for the project during a review meeting held last month.

According to the Expert Appraisal Committee (EAC) minutes, the total project cost is estimated at Rs 8.11 billion, with a capital allocation of Rs 172 million towards the Environment Management Plan (EMP) and a recurring cost of Rs 91.16 million per annum. Additionally, ONGC has proposed to allocate Rs 11 million for commitments made during the public hearing phase.

While granting its recommendation, the committee directed ONGC to strictly adhere to all environmental protection measures and safeguards outlined in the project documents submitted to the ministry. It further emphasised that all environmental management and risk mitigation measures proposed in the Environmental Impact Assessment (EIA) and EMP must be fully implemented.

The EAC also noted that, as per the no-objection certificate (NOC) issued in May 2025, no drilling wells will be located within 10 kilometres of the eco-sensitive zone of the Coringa Wildlife Sanctuary. Moreover, no pipelines or associated infrastructure may be laid within forest or protected areas without prior approval from the competent authority.

The proposed project is part of ONGC’s broader strategy to expand domestic oil and gas production, strengthen India’s energy security, and advance sustainable resource management.

Once operational, the Andhra Pradesh development programme is expected to contribute significantly to regional energy output, supporting local economies and reinforcing ONGC’s role in India’s onshore hydrocarbon sector.

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