Oil and Gas Corporation (ONGC) to allocate approximately Rs 4,600 crores for the drilling of ten development wells and infrastructure development in the Krishna Godavari (KG) Basin.

Oil and Gas Corporation (ONGC) to allocate approximately Rs 4,600 crores for the drilling of ten development wells and infrastructure development in the Krishna Godavari (KG) Basin.

In September 2022, the Director General of Hydrocarbons issued the Letter of Award (LOA) for two offshore contract areas in Andhra Pradesh's Konaseema District. These areas, KG/OSDSF/CHANDRIKA/2021 (697 sq km) and KG/OSDSF/GS49/2021 (148 sq km), fall under the Discovered Small Field-III (DSF-III) program.

ONGC, the oil and gas company behind the project, plans to invest over Rs 4,600 crore to develop oil and gas reserves in the region. The project involves drilling 10 development wells, setting up two unmanned offshore platforms, laying an offshore pipeline, and establishing an onshore gas processing facility. The total land requirement is 26.3 hectares, with 8.7 hectares (33% of the project area) designated for greenbelt development as part of environmental management efforts.

The project is currently awaiting environmental clearance from the Ministry of Environment and Forests. The Experts Appraisal Committee (EAC) has requested ONGC to conduct a comprehensive biodiversity assessment and prepare a detailed environmental restoration action plan with a specific budget. ONGC has allocated ₹14 crore for the Environmental Management Plan's capital cost and ₹3 crore annually as recurring costs, reflecting commitments to mitigate environmental impacts.

Regarding employment generation, the project is expected to create approximately 150 direct jobs and an additional 310 indirect jobs, contributing significantly to local employment opportunities in the region.

It's worth noting that L&T has bagged an over Rs 15,000-crore order from Adani Power, but no further details about the project or the nature of the order are provided. Additionally, there is no prior context provided about a pact Tata Group's Nelco has inked with Eutelsat.

This investment is expected to boost oil and gas production capacity in Andhra Pradesh while creating significant employment and requiring strong environmental safeguards due to the ecological sensitivity of the area, as emphasized by regulatory authorities.

Key Aspects:

• Investment amount: Over Rs 4,600 crore
• Location: Konaseema District, Andhra Pradesh
• Project components: 10 development wells; 2 unmanned offshore platforms; offshore pipeline; onshore gas processing facility
• Land required: 26.3 hectares (Odalarevu Terminal)
• Greenbelt area: 8.7 hectares (33% of project land)
• Environmental clearance: Pending; EAC requested biodiversity assessment and restoration plan
• Environmental budget: ₹14 crore capital cost; ₹3 crore annual recurring cost
• Employment generation: 150 direct jobs; 310 indirect jobs
• Contract areas: Chandrika (697 sq km), GS49 (148 sq km)

1. Despite the ongoing investment in oil and gas production in Andhra Pradesh's Konaseema District, there is also a growing interest in decentralized finance (DeFi) and digital assets in the broader market, with investors keen on exploring new opportunities.
2. As the stock market continues its upswing, the projected boost in oil and gas production capacity could potentially serve as a hedge against inflation for some investors, offering a balanced portfolio.
3. Meanwhile, the sports sector is also witnessing increased investment and attention, with contracts for large-scale projects and strategic partnerships being awarded to key players in the industry.

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