ONGC to Invest ₹8,110 Crore in Andhra Pradesh Oil and Gas Development Project

Oil and Natural Gas Corporation Limited (ONGC) will invest ₹8,110 crore in the onshore exploration and production of oil and gas from 172 wells spread across eight production mining license (PML) blocks in Andhra Pradesh, as per the news reports. 

The proposal has received a recommendation for environmental clearance (EC) from a committee under the Ministry of Environment, Forest and Climate Change (MoEFCC), according to minutes from a meeting held last month.

Project Investment and Environmental Plan

The development project, aimed at boosting domestic oil and gas output, carries a total estimated cost of ₹8,110 crore. The Environment Management Plan (EMP) will account for a significant portion of this investment, with a capital cost of ₹172 crore and recurring annual expenditure of ₹91.16 crore.

ONGC has also earmarked ₹11 crore for commitments made during the public hearing process. The company plans to implement all environmental and risk mitigation measures outlined in the Environmental Impact Assessment (EIA) and EMP reports submitted to the ministry.

Environmental Safeguards and Compliance

While recommending the project for clearance, the expert committee instructed ONGC to strictly adhere to environmental protection norms and safeguards proposed in its documentation. The company has committed to ensuring that no drilling wells will be located within 10 km of the eco-sensitive zone surrounding the Coringa Wildlife Sanctuary, as per the No Objection Certificate (NOC) issued in May 2025.

Additionally, the panel directed that no pipelines or associated infrastructure be laid within forest or protected areas without prior approval from the relevant authorities. ONGC is also required to implement comprehensive monitoring and mitigation measures to minimise environmental risks throughout the project’s lifecycle.

Strategic Importance of the Project

The new investment underscores ONGC’s ongoing efforts to expand its exploration footprint and enhance domestic hydrocarbon production in alignment with India’s energy security goals. 

Andhra Pradesh’s onshore oil and gas reserves are among the key contributors to ONGC’s southern operations, and the upcoming wells are expected to significantly boost regional output once operational.

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ONGC Share Price Performance

As of October 06, 2025, at 2:38 PM ONGC share price is trading at ₹245.91 per share, reflecting a surge of 0.92% from the previous closing price. 

Conclusion

With environmental clearance secured, ONGC’s ₹8,110 crore investment marks a major step toward strengthening India’s upstream oil and gas infrastructure. The project balances energy expansion with ecological responsibility, ensuring compliance with all environmental safeguards while contributing to the nation’s long-term energy sustainability.

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