ONGC fuel sale from KG basin: Key to spice up home output

Oil and Natural Gas Corporation (ONGC) has known as on patrons to bid for pure fuel from the deepwater fields of the KG-DWN 98/2 block off the east coast. ONGC is ready to provide about 2 million metric customary cubic metres per day (MMSCMD) of pure fuel from the fields beginning June-end.
Its significance
The ramping up of manufacturing from the KG-DWN 98/2 block by ONGC is a key element of the federal government’s plan to spice up home manufacturing, with the block anticipated to achieve peak manufacturing of 15 MMSCMD by 2024. This would account for an about 20 per cent improve above the corporate’s present manufacturing degree of about 70 MMSCMD. Natural fuel output from the Krishna Godavari (KG) basin is a key a part of India’s plans to chop import dependence by boosting home manufacturing.
Offer on the market
ONGC has invited affords for the sale of pure fuel from the block for 3 to five-year phrases with the fuel to be delivered at Odalarevu onshore terminal in Andhra Pradesh. Potential patrons might be required to cite a worth listed to Brent crude worth. However, the worth payable by patrons might be capped at $3.62 per million metric British thermal models (MMBTu) for the six month interval beginning April.

The Centre had, in March, stored the domestically produced pure fuel at $1.79 per MMBTu and diminished the ceiling worth of pure fuel from deepwater and ultra-deepwater fields to $3.62 from $4.06 per MMBTu for the April-September interval.