ONGC to Announce $5 bn Investment Plan to Develop Gas Resources in India

Indian state owned major Oil and Natural Gas Corporation (ONGC) plans $5 billion investment to develop gas assets in east India.

According to a Reuters report, the investment plan is expected to be unveiled later this month.

The asset, which the state-owned company acquired in 2005 under a swap agreement with UK's Cairn Energy Plc, can produce up to 17 million metric standard cubic meters per day (mmscmd) of natural gas and 75,000 barrels of oil per day by 2020, Reuters reported.

Earlier this week, Indian government announced a much liberalised natural gas exploration policy. Among the various measures that the nation’s cabinet approved to boost oil and gas production, is that of marketing and pricing freedom for new gas production from deepwater, ultra deepwater and high pressure-high temperature areas.

"With the new gas price announced by the government, our discoveries in the KG (Krishna Godavari) basin are now viable," D.K. Sarraf, chairman and managing director of ONGC said, reported Reuters.