Defence Ministry objects to AP`s oil-gas project in K-G

Andhra Pradesh`s plan of making a foray into the oil and natural gas sector seems to have hit a roadblock as the Defence Ministry has raised objections about two of the four blocks of Krishna-Godavari basin.

Last Updated: May 11, 2011, 17:59 PM IST

Hyderabad: Andhra Pradesh`s plan of making
a foray into the oil and natural gas sector seems to have hit
a roadblock as the Defence Ministry has raised objections
about two of the four blocks of Krishna-Godavari basin as they
come under ministry`s missile testing range.

As a result, oil and gas major ONGC might have to give up
two of its blocks- KG-OSN-2009/1 and KG-OSN-2009/2-in which
ONGC holds 80 per cent and 90 per cent stakes respectively,
while Andhra Pradesh Gas Infrastructure Corporation (APGIC)
holds 10 per cent in each block. The APGIC, along with ONGC
and others had won four blocks in the last NELP bidding.
However, fearing objections, the British Gas India
(BGIPL), a member of the consortium, had written a letter to
the Directorate General of Hydrocarbons (DGH) requesting it to
procure a green signal from the Defence Ministry, before
conducting a seismic survey in block- KG-DWN-2009/1. APGIC has
10 per cent stakes in this block as well.

The KG-DWN-2009/1 block was jointly won by B G
Exploration and Production India Ltd (30 per cent as
operator), Oil India Limited (15 per cent), ONGC (45 per cent)
and APGIC (10 per cent) in the NELP-VIII round.
However, since there was no response from the DGH, the
BGIPL tried to approach the Defence Ministry directly, sources
said.

PTI