Defence Ministry objects to AP's oil-gas project in K-G

As a result, oil and gas major ONGC might have to give up two of its blocks- KG-OSN-2009/1 and KG-OSN-2009/2-in which ONGC holds 80 per cent and 90 per cent stakes respectively, while Andhra Pradesh Gas Infrastructure Corporation (APGIC) holds 10 per cent in each block. The APGIC, along with ONGC and others had won four blocks in the last NELP bidding.

However, fearing objections, the British Gas India (BGIPL), a member of the consortium, had written a letter to the Directorate General of Hydrocarbons (DGH) requesting it to procure a green signal from the Defence Ministry, before conducting a seismic survey in block- KG-DWN-2009/1. APGIC has 10 per cent stakes in this block as well.

The KG-DWN-2009/1 block was jointly won by B G Exploration and Production India Ltd (30 per cent as operator), Oil India Limited (15 per cent), ONGC (45 per cent) and APGIC (10 per cent) in the NELP-VIII round.

However, since there was no response from the DGH, the BGIPL tried to approach the Defence Ministry directly, sources said.