ONGC to issue bonds for K-G block development PLANS AHEAD Decprofitrises morethandouble
State-run Oil and Natural Gas Corporation (ONGC) is likely to issue bonds for its ~34,012 crore investment in bringing 10 oil and gas discoveries in the Krishna-Godavari basin into production.
This is the first time the country's largest hydrocarbon explorer is considering issuing bonds. ONGC has earlier issued bonds for funding acquisitions of its overseas subsidiary ONGC Videsh Ltd (OVL).
“We are planning to issue bonds for our investments in the KG-DWN-98/2 block. The expenditure will start in 2017-18 and most of the money will be spent in 2018-19 and 2019-20. We are planning to issue bonds in 2018-19," said a source close to the development.
The government recently slapped a $1.55-billion penalty on Reliance Industries and its partners BP and Niko for producing
KG-DWN-98/2
Cluster 2 development:
INVESTMENT:
~34,000 crore ($5.076 billion) Gas production to begin in June 2019 Oil production in March 2020 gas out of ONGC’s share in KG-DWN-98/2.
OVL in December raised $600 million and $400 million in two bond issues to buy 15 per cent in the Russia's second biggest oilfield Vankor from Rosneft for $1.268 billion. Later, it signed an agreement to buy an additional 11 per cent for $930 million.
ONGC has begun the process for inviting tenders for K GD W N -98/2." The project envisages the first gas to be produced by June 2019, the first oil by State-run Oil and Natural Gas Corporation's standalone net profit more than doubled in the December quarter but missed street estimates. The firm has posted a net profit of ~4352 crore against ~1,466crore in the year-ago period.BS Output Volume 50.71 bcm 23.53 mt March 2020, with completion by June 2020-21,” the source added.
According to ONGC, Cluster 2 has recoverable reserves of 23.526 million tonnes oil and 50.706 billion cubic metres of natural gas. According to the memorandum of understanding between ONGC and Andhra Pradesh government, gas from the field will be brought by a pipeline to the state before being transported to end users.