State-owned Oil & Natural Gas Corp. of India has warned the Indian petroleum ministry that natural gas prices allowed by the government won’t support development of its fields in the offshore Krishna-Godavari basin.
According to press reports, ONGC Chief Managing Director Dinesh K. Sarraf told reporters in New Delhi his company has requested a review of gas prices linked to averages in countries such as the US, Russia, and Canada. That system yields a price of $4.24/MMbtu at present.
Most of ONGC’s Krishna-Godavari basin fields are in deep water and are technically challenging in other ways.
