ONGC plans $5 bln investment to develop eastern gas asset. In picture: A technician opens a pressure gas valve inside the Oil and Natural Gas Corp (ONGC) group gathering station on the outskirts of the western Indian city of Ahmedabad.Reuters

Oil and Natural Gas Corporation (ONGC) has received environmental clearance for drilling 45 developed wells in the Krishna Godavari basin in Andhra Pradesh. The total cost of the project is estimated at Rs 53,000 crore.

"Last week we gave clearance to ONGC for the project of drilling 45 development wells at Block KG-DWN-98/2, KG offshore. The environmental clearance has been given subject to specific and general conditions," a senior Environment Ministry official told PTI.

ONGC is planning to drill 45 development wells and set up a Floating Production Storage and Offloading facility, among others. The project would be implemented in the northern discovery area of NELP-I offshore block KG-DW N-98/2.

Once completed, the project would result in the production of 51.33 billion cubic meters of gas over a period of 16 years and 26.71 billion cubic meters of oil over 12 years, the minister added.

In Rajahmundry, the KG basin area has 28,000 inland area and 1, 45,000 off-land, which includes deep water.

ONGC has been asked to get approvals from Directorate General of Shipping for commencement of drilling and get coastal zone clearance and comply with all recommendations and conditions specified by the state's coastal zone management authority.

The company has also been asked to use high efficiency diesel generator sets, protect marine life and develop waste minimisation plans, the report added.

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