The Government of Andhra Pradesh and ONGC signed a Memorandum of Understanding (MoU) on 27 January, 2017 to take forward all critical Oil and Gas Exploration and Production activities of the Maharatna PSU in the state.
The sunrise state of Andhra Pradesh along with its large coastline has some of the most promising hydrocarbon bearing fields. ONGC already has ongoing operational activities through its regional bases at Rajahmundry and Kakinada and engaged in widespread Exploration and production activities.
ONGC is also very aggressively pursuing to put the huge gas reserves it has discovered in KG basin, to production. It plans to invest about Rs. 10,000 Crores for E & P activities in Onland blocks and about Rs. 68,000 Crores in Offshore Assets in KG Basin.
The MoU was signed at Visakhapatnam, at the sidelines of Partnership Summit 2017 being held jointly by Andhra Pradesh Government and CII, in august presence of Hon'ble Chief Minister Mr. N. Chandrababu Naidu and Hon'ble Union Minister of State (I/C) Petroleum and Natural Gas Mr. Dharmendra Pradhan. ONGC CMD Mr. Dinesh K Sarraf was also present at this occasion.
Director of Industries, Government of Andhra Pradesh, acting through Secretary, Mr. Solomon Arokiaraj, and Director Offshore Mr. TK Sengupta on behalf of ONGC signed the MoU. As per the terms of MOU the State Govt. would extend all assistance for the land acquisition / Right of User (ROU) and other statutory clearances permissible under existing laws as amended from time to time and would provide all necessary support for E&P activities.
As a key initiative and a boast to E&P operations Andhra Pradesh Govt. would be offering a 'Single Window Service' through the Office of Commissioner of Industries to facilitate smooth implementation of the projects by ONGC. ONGC on its part would undertake Exploration, Development and Production activities in NELP and Nomination PML Blocks, situated in the State of Andhra Pradesh.
It would contribute to State GDP and economic welfare of the local people through Petroleum operation activities and payments in the form of statutory levies. As a result of development activities undertaken by ONGC, multiple benefits will be accrued to the state of Andhra Pradesh. ONGC has been spending on various CSR initiatives in the fields of education, healthcare, sanitation, environment protection, welfare of SC/ST, promotion of sports and art & culture, etc.
ONGC would be willing to invest for development of Centre of Excellence for deep water HP-HT (High pressure High Temperature) marketing office and a museum at capital region of Amaravati.
ONGC is also proposing to adopt Coringa wild sanctuary for development as a major tourist center. Development of Rajahmundry Airport premises is also under active consideration by ONGC.
Andhra Pradesh CM Mr. N Chandrababu Naidu speaking on the occasion said that Andhra Pradesh offers best business environment for the industries and is on a high trajectory for the overall growth. He said that state would extend full cooperation for making country self-sufficient in energy sector by helping oil and gas industry to the maximum. The present MoU is first step in that direction, he said.
MoS (I/C) MoPNG Mr. Dharmendra Pradhan in his address said that Andhra Pradesh has immense hydrocarbon potential and is going to become a major petrochemical hub in coming years. Oil PSUs are partnering with Govt of Andhra Pradesh to build new synergies in hydrocarbon sector. The oil PSUs have invested more than 9,400 Crore in last two and half years and have planned investments of more than one lakh forty three thousand crores in the state in coming years. He said that these Investments would start from 2017-18 and all these investments of one lakh forty three thousand crores will be completed by 2021-22 financial year.
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