ONGC commences oil production in KG basin deep water block

New Delhi: State run Oil and Natural Gas Corp (ONGC) has commenced production from the its deep water KG DWN 98/2 block, off the coast of Bay of Bengal. This development is set to boost ONGC’s overall oil and gas output by 11% and 15%, respectively, the explorer said in a statement. The remaining oil and gas fields of the block is expected to become operational by mid 2024.

At peak, the field will likely produce 45,000 barrels of oil per day and over 10 million metric standard cubic meters per day of gas. In a post on Sunday on X, formerly Twitter, petroleum and natural gas minister Hardeep Singh Puri had said that the project is likely to add 7% to India's current oil and gas production.

Prime Minister Narendra Modi also lauded the achievement as a significant milestone in India's energy sector. ONGC contributes around 71% of India's oil and gas production, according to information available on the company's website. “…ONGC had successfully executed phase 1 of the project in March 2020, achieving the commencement of gas production from U field of the KG DWN 98/2 Block in record time of 10 months," the company said in a statement.

“With commencement of this First Oil on 7 January 2024, ONGC is nearing completion of Phase 2, culminating into commencement of oil production from the ‘M’ field of KG DWN 98/2." The project's success involved navigating challenges posed by the crude's waxy nature. ONGC employed a novel pipe in pipe technology, a first in India, to address these issues.

While certain specialized subsea hardware was sourced internationally, the bulk of the fabrication work was carried out at the Modular Fabrication Facility in Kattupalli, Tamil Nadu. Livemint tops charts as the fastest growing news website in the world to know more. Unlock a world of Benefits! From insightful newsletters to real time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away!.