ONGC starts oil production from deep water KG basin block
09 Jan 2024
State-owned oil and natural gas explorer, Oil and Natural Gas Corporation (ONGC), on Monday (8 January) announced the start of production of "First Oil" from the deep-water block in Krishna Godavari (KG) basin, in the East Coast of India.
With the commencement of oil production from the 'M' field of KG-DWN-98/2 block in the Krishna Godavari (KG) basin, ONGC has completed Phase 2 of exploration, says its filing with the stock exchanges.
"This 98/2 project is likely to increase ONGC's total oil and gas production by 11 per cent and 15 per cent, respectively," ONGC said.
ONGC had achieved commercial production of natural gas from the U field of the KG-DWN-98/2 block in March 2020, completing Phase 1 in a record 10 months.
Prime Minister Narendra Modi said the development will boost the mission of 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.
ONGC said development of the 'M' field of KG-DWN-98/2 posed unique technical challenges because of the waxy nature of crude.
"To overcome those, ONGC employed innovative Pipe in Pipe technology, a first-of-its-kind initiative in India. While some subsea hardware involved in this development has been sourced internationally to meet specific requirements, the majority of fabrication works were carried out at Modular Fabrication Facility at Kattupalli which highlights ONGC's commitment to promote 'Make in India', contributing towards a self-reliant energy sector in India," it said.
With the completion of the final phase of its flagship project in the KG Basin, ONGC hopes to bring the remaining oil and gas fields in the KG Basin by mid-2024.
"Peak production of field is expected to be 45,000 barrels of oil per day (bopd) and over 10 MMSCMD of gas, which will contribute significantly towards the vision of PM of an energy Aatmanirbhar Bharat," it added.
"As India powers ahead as the fastest-growing economy under the leadership of PM Narendra Modi Ji, our energy production is also set to rise from the deepest frontiers of #KrishnaGodavari. "First Oil" production commences from the complex and difficult deepwater KG-DWN-98/2 Block, situated off the coast of Bay of Bengal," union minister for petroleum and natural gas and housing and urban affairs Hardeep Singh Puri said in a tweet on social media platform X on Sunday.
