Oil and Natural Gas Corporation (ONGC), the state-owned oil major said on Monday that it may fail to achieve the target of June 2019 for starting of the production from the KG-D5 block, due to changes in the regulatory policy.
It could be noted that ONGC is investing about $5.07 billion in the KG-DWN-98/2, which is beside the KG-D6 block of the Reliance Industries in the Bay of Bengal. ONGC set its target of gas production in the next year in June and Oil in the March 2020.
In the said statement the company said, “As of now, the project schedules are being maintained as planned. However, due to very complex nature of the project, there may be the possibility that the schedules may get exhausted which will only be known at a later date.”
In 2014, ONGC announced their plan to start the much-awaited gas production in 2018 and subsequently oil exploration in 2019. After the government decision of pricing formula in 2016; the investment plan was announced by ONGC board for the Cluster-II group of KG-D5 discoveries.