January 9, 2024 : The Oil and Natural Gas Corporation (ONGC) has achieved a significant milestone with the commencement of oil production from its flagship deep-water project in the Krishna Godavari basin offshore the eastern coast of India. The project, known as the Cluster-2 project of the KG-DWN-98/2 block, has been eagerly awaited and is expected to contribute significantly to India’s energy resources.
#ONGC commenced its ‘First Oil flow to FPSO’, from Krishna Godavari Deep-Water Block 98/2 (in Bay of Bengal) on 7 January 2024, nearing completion of Phase-2 of the project. Phase-3, leading to peak Oil and Gas production, is already underway and likely to be over in June 2024.… pic.twitter.com/7Aq5CSMHp3
— Oil and Natural Gas Corporation Limited (ONGC) (@ONGC_) January 8, 2024
Commencement of Production
Union Minister Hardeep Singh Puri announced the initiation of oil production, highlighting the commencement of the Cluster-2 project. While specific details about the current output were not provided, Minister Puri mentioned that the production is anticipated to reach 45,000 barrels per day of oil and over 10 million standard cubic meters per day of gas as it gradually ramps up.
Key Details of the Project
For the deep-sea energy project, ONGC has employed the floating platform Armada Sterling V, jointly owned by Shapoorji Palonji Oil and Gas (70%) and Malaysia’s Bumi Armada (30%). The Floating Production, Storage, and Offloading (FPSO) vessel, stationed in the Cluster-2 area since December 27, is set to receive oil since January 2.
The KG-DWN-98/2 block, also known as KG-D5, is adjacent to the KG-D6 block owned by Reliance Industries Ltd. Both are situated in the Krishna Godavari Delta, Bay of Bengal, off the coast of Andhra Pradesh.
Project Overview
The KG-D5 block is divided into three clusters: Cluster-1, Cluster-2, and Cluster-3. Despite delays caused by the Covid-19 pandemic, Cluster-2 was scheduled to become operational in November 2021. The water depths in the KG-D5 block vary from 300 to 3200 meters. Cluster-2 is projected to produce 23.52 million metric tons of oil and 50.70 billion cubic meters of gas during its operational lifetime.
ONGC anticipates that the KG-D5 project will increase its total oil and gas production by 11% and 15%, respectively. Phase 1 of the project, executed in March 2020, achieved the commencement of gas production from the U field of the KG-DWN-98/2 block in just 10 months.
National Significance and Self-Reliance
Prime Minister Narendra Modi lauded the development, stating, “This is a remarkable step in India’s energy journey and boosts our mission for an Aatmanirbhar Bharat.” The project aligns with the vision of a self-reliant India and is expected to play a crucial role in enhancing the nation’s energy security.
With the successful initiation of oil production from the ‘M’ field of KG-DWN-98/2, ONGC is nearing completion of Phase 2 of the project, further contributing to India’s energy independence.
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