ONGC to Invest Rs 8,110 Cr in Andhra Pradesh Onshore Oil & Gas

Oil and Natural Gas Corporation Limited (ONGC) is embarking on a significant investment project of Rs 8,110 crore to increase the production rate of onshore oil and gas through 172 wells of eight Production Mining License (PML) blocks in Andhra Pradesh.

It is believed that the move will bolster local hydrocarbon production, and it will also help boost the energy sector of the state. The project has recently been recommended Environmental Clearance (EC) by a committee of the Ministry of Environment, Forest and Climate Change (MoEFCC) at a meeting held last month.

The cost of the project is estimated to be: capital outlay of Rs 172 crore to the Environment Management Plan (EMP), and an annual recurring cost of the EMP of Rs 91.16 crore. Also, the commitment made at the Public Hearing has been proposed at Rs 11 crore as per the meeting of the Expert Appraisal Committee.

In awarding the EC recommendation, the committee noted that ONGC should be a strict adherent to all the environmental protection measures and safeguards that were mentioned in the documents submitted. The recommendations of the Environmental Impact Assessment (EIA) and EMP with regard to environmental management and mitigation of risk will be followed to the letter.

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Notably, the committee pointed out that no wells will be located within 10km of the eco-sensitive Coringa Wildlife Sanctuary, as per the issued NOC in May. Moreover, no pipelines and other facilities will be established in forests and other areas that are safeguarded without the consent of the competent authority.

The project will contribute to an improved production of domestic oil and gas with a strict following of ecological regulations, which is a representative of harmonious development of industry and ecology in Andhra Pradesh.