Konaseema, Andhra Pradesh: India’s state-run energy giant Oil and Natural Gas Corporation Limited (ONGC) has proposed an ambitious offshore development project worth ₹4,606.35 crore in Konaseema district of Andhra Pradesh. The plan includes drilling ten development wells, constructing two unmanned platforms, laying an offshore pipeline, and setting up an onshore gas processing terminal at Odalarevu.
The project aims to tap into offshore oil and gas resources allocated under the Discovered Small Field (DSF-III) policy. However, the green signal from the Ministry of Environment, Forest and Climate Change (MoEFCC) is still pending, as ONGC’s proposal has been deferred once again by the Expert Appraisal Committee (EAC) due to insufficient environmental data.
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Project Overview and Economic Impact
According to the minutes of the EAC’s meeting held on July 24, the total land requirement for the project is 26.3 hectares, with a greenbelt area of 8.7 hectares planned—constituting 33% of the total project land.
The development well drilling is intended for proven reserves—areas confirmed to contain commercially viable oil and gas deposits. These operations typically follow successful exploration and appraisal drilling campaigns.
The project is expected to generate 150 direct jobs and 310 indirect jobs, offering a significant economic boost to the coastal region of Andhra Pradesh.
Environmental Expenditure and Responsibility
ONGC has earmarked a capital investment of ₹14 crore for the Environmental Management Plan (EMP) and ₹3 crore annually for recurring EMP costs. In addition, the company has committed ₹14 crore under its Extended EMP initiative, as part of its Corporate Environmental Responsibility (CER) obligations.
Despite these measures, the EAC is holding back its approval. It has advised ONGC to undertake a comprehensive biodiversity assessment to evaluate potential ecological impacts. Furthermore, the committee has recommended the preparation of an Environmental Restoration Action Plan, with a dedicated budget for its implementation.
Background: Discovered Small Field Allocation
The proposed project area consists of two offshore blocks—697 sq km and 148 sq km—awarded to ONGC under the DSF-III round in September 2022 by the Directorate General of Hydrocarbons (DGH). The DSF policy was designed to fast-track the monetization of small oil and gas discoveries by facilitating simplified processes and enabling faster development cycles.
Delayed Environmental Nod
This is not the first time the project has faced delays. The proposal was initially reviewed in February 2025, when the EAC had also deferred its approval, citing the need for additional information. The continued deferrals underscore the increasing scrutiny placed on large-scale industrial projects, especially those in ecologically sensitive coastal and offshore zones.
Until ONGC furnishes the requested studies and plans, the project remains on hold. However, the PSU has expressed confidence that it will address the concerns raised and move forward with implementation once clearances are in place.
About ONGC
Oil and Natural Gas Corporation (ONGC) is India’s largest crude oil and natural gas company, under the Ministry of Petroleum & Natural Gas. Through its ONGC Energy Centre, the company is driving strategic energy innovations including geothermal, hydrogen, and solar technologies. ONGC plays a crucial role in ensuring India’s energy security while aligning with national clean energy goals.
