Powering the Future: ONGC's Rs 4,606 Crore Konaseema Project

Oil and Natural Gas Corporation (ONGC) plans to invest Rs 4,606.35 crore in a major oil and gas development project in the Konaseema district of Andhra Pradesh. The project involves drilling 10 development wells, installing two unmanned platforms, laying an offshore pipeline, and setting up an onshore gas processing facility at the Odalarevu Terminal.

The initiative is part of the DSF-III contract areas—KG/OSDSF/CHANDRIKA/2021 (697 sq. km) and KG/OSDSF/GS49/2021 (148 sq. km)—awarded in September 2022. For environmental management, the project includes a capital outlay of Rs 14 crore and an annual recurring cost of Rs 3 crore. An additional Rs 14 crore is earmarked for the Extended Environmental Management Plan (EMP) under the Corporate Environment Responsibility (CER) initiative.

ONGC has submitted a proposal to the Ministry of Environment, Forest and Climate Change seeking fresh environmental clearance, as recorded in the minutes of the Expert Appraisal Committee (EAC) meeting on July 24. The proposed development will require 26.3 hectares of land at the Odalarevu Terminal, of which 8.7 hectares—about 33%—will be allocated for greenbelt development.

The project is expected to generate employment for approximately 150 individuals directly and 310 indirectly. The EAC has requested additional submissions, including a biodiversity assessment and an environmental restoration action plan with a dedicated budget, to address potential ecological impacts from the drilling activities.

News by Rahul Yelligetti.