ONGC finds oil in KG basin

State-run exploration and production (E&P) major Oil and Natural Gas Corporation (ONGC) has struck oil in the Krishna Godavari (KG) basin.

The discovery took place in the hydrocarbon-rich block KG-DWN-98/2 and ONGC will inform the upstream regulator directorate general of hydrocarbons (DGH) after the assessment of the reserve in a month. It is learnt that ONGC is expected to spend $5.3 billion to develop gas and oil finds in the KG basin for producing 25 million metric standard cubic meter per day (mmscmd) of gas and 8,000 barrels of oil per day starting from 2012-13.