Indian state-owned Oil and Natural Gas Corporation (ONGC) is to spend $2.89bn on the development of the UD-1 gas discovery in the prolific Krishna Godavari Basin, offshore India.

The UD-1 discovery is located in the southern part of the company’s KG-DWN-98/2 block, which sits next to Reliance Industries‘ KG-D6 gas-producing fields, off the coast of the state of Andhra Pradesh.

According to official sources, the UD-1 deepwater discovery will produce for 14-15 years, with a peak of approximately 20 million cubic metres per day lasting five years.

ONGC will bring the field to production in 2016-17 by drilling 11 wells with an output of 585 million cubic feet per day (mmcfd), which could rise to 715mmcfd in the second year.

The production will stay at 715mmcfd for five years, and will start to drop off from the seventh year.

ONGC believes that the UD-1 gas discovery holds about 4.257 trillion cubic feet of in-place gas reserves, while the Directorate General of Hydrocarbons puts the figure at 3.938 trillion cubic feet.

The KG-DWN-98/2 block is divided into two sections: the Northern Discovery Area and the Southern Discovery Area.

The Northern Discovery Area consists of nine discoveries: Padmavati, Kanakdurga, N-1, R-1 (Annapurna), E-1, A1, U1, W1 and D-1/KT-1.

The Southern Discovery Area includes the UD-1 discovery at a depth of 2,841m, and is said to be the deepest gas discovery made in India.