NEW DELHI: BG Group Plc and partner Oil & Natural Gas Corp. signed an agreement to drill wells in the shallow waters of Krishna Godavari Basin on India’s east coast, BG said.
BG and its partners may invest about $1 billion (Rs4,427crore) over five years to drill wells in India, BG India head William Adamson said in an interview in New Delhi today. The company’s production in India may increase to 50,000 barrels of oil a day, he said.
BG and Oil & Natural Gas signed a contract for area KG-OSN- 2004/1, awarded by India in an auction that offered the largest number of areas since the annual bidding began in 1999. BG has a 45% stake in the area. Oil & Natural Gas holds the rest , the operator, BG said.