ONGC starts commercial production from Nagayalanka block in the KG basin

The Oil and Natural Gas Corporation (ONGC) has started commercial oil and gas production from its Nagayalanka block in the Krishna-Godavari (KG) basin. ONGC owns a 51 per cent stake in the project, while Cairn India owns the remaining 49 per cent. The Nagayalanka region has oil and gas reserves of 450 million barrels and 15 million metric standard cubic metres per day (mmscmd) respectively. Of this, permission is available for tapping 40 million barrels of oil and 45,000 mmscmd of gas at present. Three wells will be drilled at a cost of Rs 4.2 billion by March 2019. The field was awarded to ONGC-Cairn Energy India Limited under the formerly applicable New Exploration Licensing Policy, 2005.