The Andhra Pradesh Government and the Oil and Natural Gas Corporation (ONGC) signed a memorandum of understanding (MoU) on January 27 to take forward all critical oil and gas exploration and production activities of the latter in the State.
Andhra Pradesh, along with its large coastline, has some of the most promising hydrocarbon bearing fields. ONGC already has ongoing operational activities through its regional bases at Rajahmundry and Kakinada and is engaged in widespread exploration and production activities.
ONGC is also very aggressively pursuing to put the huge gas reserves it has discovered in the KG basin to production. It plans to invest about Rs. 10,000 crores for E & P activities in Onland blocks and about Rs. 68,000 crores in offshore assets in the KG Basin.
The MoU was signed on the sidelines of Partnership Summit 2017 being held jointly by the Andhra Pradesh Government and CII, in the presence of the Chief Minister, Mr. N. Chandrababu Naidu, and the Union Minister of State (I/C) Petroleum and Natural Gas, Mr. Dharmendra Pradhan, ONGC CMD, Mr. Dinesh K. Sarraf, was also present on this occasion. As per the terms of the MoU the State Government would extend all assistance for the land acquisition / Right of User (ROU) and other statutory clearances permissible under existing laws as amended from time to time and would provide all necessary support for E&P activities.
As a key initiative and a boast to E&P operations the State Government would be offering a ‘single window service’ through the Office of Commissioner of Industries to facilitate smooth implementation of the projects by ONGC. On its part, ONGC would undertake exploration, development and production activities in NELP and nomination PML Blocks, situated in the State.
As a result of the development activities undertaken by ONGC, multiple benefits will be accrued to the State of Andhra Pradesh. ONGC has been spending on various CSR initiatives in the fields of education, healthcare, sanitation, environment protection, welfare of SC/ST, promotion of sports and art & culture, etc.
Mr. Chandrababu Naidu speaking on the occasion, said that Andhra Pradesh offers an ideal business environment for the industries and is on a high trajectory for the overall growth. The State would extend full cooperation for making the country self-sufficient in energy by helping the oil and gas industry to the maximum extent.
In his address, Mr. Dharmendra Pradhan said that Andhra Pradesh has immense hydrocarbon potential and is set to become a major petrochemical hub in coming years. The oil PSUs are partnering with the State Government to build new synergies in the hydrocarbon sector. They have already invested more than Rs. 9,400 crores in last two and half years and have planned fresh investments of more than Rs. 1.43 lakh crores in the State in the coming years.