Public sector major Oil and Natural Gas Corp (ONGC) has announced that there have been three new oil and gas discoveries in one each of the Krishna-Godavari Basin, Cauvery basin and Mumbai offshore, which allows an interim dividend of 100 per cent to its shareholders.
The Krishna-Godavari basin could soon become the new source of shale gas, which promises to provide energy for the next 200 years. The KG basin is one of the few places identified in India for exploitation of shale gas. The potential deposits of shale gas in the country has been estimated at between 600 and 2,000 trillion cubic meters.
The domestic gas production stood down for the 14th straight month in January due to the continuous drop in Reliance Industries-operated Krishna Godavari Basin D6 block output.The output fell by 8.9 percent year-on-year at 3.963 billion cu m. Reliance Industries has told the government that natural gas production at the producing fields in the bloÂck was likely to fall.