Oil and Natural Gas Corporation (ONGC) will invest Rs 4,606.35 crore in a major oil and gas project in Konaseema district, Andhra Pradesh. 

The plan includes drilling 10 development wells, setting up two unmanned platforms, laying an offshore pipeline, and establishing an onshore gas processing facility at Odalarevu Terminal. The project falls under DSF-III contract areas KG/OSDSF/CHANDRIKA/2021 (697 sq. km) and KG/OSDSF/GS49/2021 (148 sq. km), awarded in September 2022. The Environmental Management Plan (EMP) will have a capital cost of Rs 14 crore and Rs three crore annual recurring cost, with Rs 14 crore allocated to Extended EMP under Corporate Environment Responsibility. 

Oil and Natural Gas Corporation (ONGC) has submitted a request to the Ministry of Environment and Forests for fresh environmental clearance for its proposed project, according to the minutes from the Experts Appraisal Committee (EAC) meeting held on July 24. The project requires a total land area of 26.3 hectares at the Odalarevu Terminal. Additionally, a greenbelt covering 8.7 hectares, which accounts for 33 percent of the total project area, will be developed. The estimated cost of the project is Rs 4,606.35 crore, the EAC noted. 

The expected employment creation includes 150 direct and 310 indirect roles. The Ministry of Environment’s Expert Appraisal Committee (EAC) seeks additional inputs, including a biodiversity assessment and an environmental restoration action plan with a dedicated budget to mitigate drilling impacts.