ONGC begins commercial operations in Nagayalanka

Oil and Natural Gas Corporation (ONGC) Limited Chairman and Managing Director Shashi Shanker on Tuesday inaugurated the Early Production System (EPS) at Vokkapatlavaripalem hamlet in Krishna district, kick-starting the commercial operation of oil and gas in the Nagayalanka block in the Krishna-Godavari basin.

ONGC owns 51 % in the ₹6,804-crore project, while Vedanta Limited the rest as per the existing agreement signed between the two oil exploration firms.

Pankaj Jain of Vedanta group, AP Resident Commissioner Arja Srikanth, Machilipatnam Member of Parliament K. Narayana and ONGC Executive Director (Rajahmundry asset) DMR Sekhar were present. “The maiden operation of the EPS witnessed both oil and gas at the site at Vokkapatlavaripalem,” said Mr. Shanker.

“The present target is to drill 400 tonnes of oil per day from the EPS and Andhra Pradesh will be given priority in supply of the explored oil as well as gas,” the CMD said. Mr. Shanker said that ONGC had adopted the ‘cascading method’ in the operation at the Nagayalanka site. A feasibility study was being done for setting up LNG plants in the block, he added.

Responding to a request by Mr. Srikanth, he guaranteed an exclusive development plan based on the report to be submitted by Mr. Sekhar. Initially, at least 10 villages in the vicinity of the EPS would be considered.

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