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DGH rejects ONGC’s three KG gas discoveries

After rejecting Reliance Industries’ gas finds, upstream regulator DGH has refused to recognise three gas discoveries of state-owned Oil and Natural Gas Corp (ONGC) for not doing its prescribed conformity tests.

The Directorate General of Hydrocarbons (DGH) has not approved Declaration of Commerciality (DoC) for three out of the 11 discoveries ONGC has made in its Krishna Godavari block KG-DWN-98/2 (KG-D5) in Bay of Bengal, sources said.

ONGC proposes to develop these finds in three clusters — combining finds D and E in KG-D5 block with discovery in neighbouring G-4 block as Cluster-I and developing all other finds except ultra deepsea UD-1 discovery as Cluster-II. The UD-1 find is to be developed as Cluster-III. Sources said that while DGH is agreeable to DoC for the Cluster-II finds, it has not approved the same for discoveries D, E and UD-1 in absence of surface flow data and Drill Stem Test (DST) data.
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