ONGC Adopts Cautious Approach to Develop Deen Dayal Gas Fields.

Oil and Natural Gas Corporation (ONGC) is grappling with challenges in reviving the Deen Dayal gas fields located off the Andhra Pradesh coast in the Krishna Godavari (KG) Basin. After three failed attempts to secure a technically capable partner, ONGC plans to initiate another round of tendering, according to officials familiar with the matter. "We want to be more careful and thoroughly study the area this time," one official said, adding that ONGC hopes for better luck in its fourth attempt.

Acquired from Gujarat State Petroleum Corporation (GSPC) in 2017, the field has been a source of frustration for ONGC. The public sector giant took over an 80% stake in the KG-OSN-2001/3 block as GSPC sought to resolve its mounting debts. Despite being situated near Reliance Industries-BP’s KG block and ONGC's own KG Basin assets, the field has produced negligible gas since the acquisition.

Initial estimates suggested the field held up to 20 trillion cubic feet of gas reserves. However, subsequent assessments have significantly reduced these projections. ONGC has drilled seven development wells so far, with disappointing results: four wells showed no viable prospects, and severe technical challenges forced the abandonment of three others.

On June 12, ONGC invited expressions of interest from global oil and gas companies with the technical expertise and financial strength to assist in developing the field. However, the tender, which closed on September 12, failed to attract any successful bids.

The high-pressure, high-temperature (HP-HT) reservoirs in the block, awarded under the first New Exploration Licensing Policy (NELP) bid round, present significant technical challenges. Despite the substantial investments already made, ONGC remains committed to the project, albeit with a more measured approach. "We are focused on scaling up operations but will proceed cautiously," said another official

The Deen Dayal gas field remains a financially and operationally heavy burden for ONGC, with the company determined to find a way forward despite the odds.

HBL