The Oil and Natural Gas Corporation (ONGC) started oil production from the much-delayed flagship deep-water project in the Krishna Godavari basin offshore the nation’s eastern coast. As per reports, ONGC has started production from the Cluster-2 project of the KG-DWN-98/2 block. It is expected to slowly ramp up production in this Cluster.
Union Minister Hardeep Singh Puri informed about the commencement of production. Though he did not provide information of current output, the Union Minister added that production is expected to be 45,000 barrels per day of oil and over 10 million standard cubic meters per day of gas.
बधाई भारत! #ONGCJeetegaToBharatJeetega!
— Hardeep Singh Puri (@HardeepSPuri) January 7, 2024
As India powers ahead as the fastest growing economy under leadership of PM @NarendraModi Ji, our energy production is also set to rise from the deepest frontiers of #KrishnaGodavari
“First Oil” production commences from the complex &… pic.twitter.com/gN2iPSs0YZ
For the deep sea energy project, ONGC has hired the floating platform Armada Sterling V, owned 70% by Shapoorji Palonji Oil and Gas and 30% by Malaysia’s Bumi Armada. The Floating production, storage, and offloading (FPSO) vessel was docked into the Cluster-2 area on December 27 and has been waiting to receive oil since January 2.
As per reports, ONGC’s KG-DWN-98/2, also known as the KG-D5 block, is located next to the KG-D6 block, which is owned by Reliance Industries Ltd. KG blocks are located in the Krishna Godavari Delta, in the Bay of Bengal, just off the coast of Andhra Pradesh.
ONGC’s KG-D5 block is divided into 3 clusters, Cluster-1,2 and 3. Of these, Cluster -2 was scheduled to be operational back in November 2021, but the project was delayed due to Covid.
The water depths in the KG-D5 block vary from 300 to 3200 meters. Cluster 2 is expected to produce 23.52 million metric tons of oil, and 50.70 billion cubic meters of gas in its operational lifetime.
“This 98/2 project is likely to increase ONGC’s total oil and gas production by 11 percent and 15 percent, respectively,” the ONGC said.
ONGC successfully executed Phase 1 of the project in March 2020, achieving the commencement of gas production from the U field of the KG-DWN-98/2 Block in a record time of 10 months.
With the commencement of this first oil on Sunday, ONGC is nearing completion of Phase 2, culminating in the commencement of oil production from the ‘M’ field of KG-DWN-98/2, it added.
While some of the deep water hardware has been purchased from global markets, the majority of the fabrication has been done in the Modular Fabrication Facility at Kattupalli, under the Make In India initiative, as per ONGC.
PM Modi also said that the development will boost the mission of a self-reliant India. “This is a remarkable step in India’s energy journey and boosts our mission for an Aatmanirbhar Bharat,” PM Modi said in a post on X.
(With inputs from ANI)
