Oil and Natural Gas Corp. Ltd has in the past said that gas prices below $6 per mBtu will not be viable from this deepwater field, called KG-DWN 98/2. Photo: BloombergMumbai: State-run Oil and Natural Gas Corp. Ltd (ONGC) said gas output from its deepwater eastern offshore block could be viable at prices of $5-6 per million British thermal units (mBtu) thanks to drop in costs of exploration and related services. ONGC has in the past said that gas prices below $6 per mBtu will not be viable from this deepwater field, called KG-DWN 98/2. An ONGC official said the drop in crude oil prices has helped the company lower its operating expenditure for exploration. “We have asked the government to relook into the gas price formula as this does not leave us any money to carry out more projects.

Source: Mint September 25, 2016 17:15 UTC