(LiveMint)
A delay in procuring exploration equipment may push back state-run Oil and Natural Gas Corp. Ltd’s (ONGC) plans to produce gas from its Krishna Godavari (KG) 98/2 block starting June 2019, two industry officials said.
In the last week of August, ONGC re-issued its tender to hire a floating production storage and offloading (FPSO) unit, the officials said on condition of anonymity. An FPSO is a floating vessel used by the offshore oil and gas industry for producing, processing and storing hydrocarbons.
“Pre-qualification deadline to supply large floater for KG-DWN-98/2 deep-water project has been delayed. It would be difficult for ONGC to meet its June 2019 deadline,” said one of the two people cited above from an international engineering, procurement and construction company which is bidding for ONGC’s tenders.
ONGC plans to invest up to Rs65,000 crore ($10 billion) in three of its deep water blocks in the KG basin. The company has divided the block KG-DWN-98/2, into three clusters which would entail an overall investment of $9-10 billion.
