ONGC & RIL updates

ONGC and Reliance Industries are set to tie up to build a common gas-processing unit as the two firms have discovered huge reserves in the Krishna-Godavari basin. Setting up such an offshore gas processing unit would involve an investment of around Rs 50 bn. It may be recalled that ONGC, the country's largest upstream company, has recently discovered gas in the KG-basin. Initial estimates suggest that the gas find could be as large as 21 trillion cubic feet (tcf). Reliance has already announced a 14 tcf find, besides discovering a large gas layer in a new well in its D-6 field. Gujarat State Petroleum Corporation (GSPC), which has also announced a gas find of 20 tcf in the area, is in talks with Reliance for using its pipeline.