Union Petroleum Ministry on 3 October 2014 set up a Panel headed by B.N.Talukar to inquire into the reasons for delay in developing gas discoveries in ONGC's Krishna Godavari basin KG-D5 block.
The three-member committee will be headed by B N Talukar, Directorate General of Hydrocarbons, and will have the financial advisor and a director from the ministry.
The committee will submit its report by end of October 2014.
ONGC's KG-D5 is next to Reliance Industries (RIL) eastern offshore KG-D6 block in Bay of Bengal. Both blocks were awarded in the first round of auction under New Exploration Licensing Policy (NELP) in 2000.
While RIL began oil production from its KG-D6 block in September 2008 and gas output in April 2009, ONGC has made 11 oil and gas discoveries in KG-D5 block and planned to begin production from the block in 2018 and the oil output in 2019.
After noticing the delay in the ONGC production planning, the ministry wants to investigate the reasons for the delay.
ONGC Chairman and Managing Director Dinesh K Sarraf welcomed constitution of the committee and said the company will extend all cooperation in the investigation.
ONGC claimed that KG-D5 block will produce up to 90000 barrels per day. The production is estimated to be the largest from any field on the east coast. ONGC will produce 17 million standard cubic meters per day of gas from the block.
KG-D5 is divided into a Northern Discovery Area (NDA) and Southern Discovery Area (SDA).
When: 3 October 2014