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NEW DELHI: State-owned Oil and Natural Gas Corporation (ONGC) on Monday mentioned it has began oil production from its much-delayed flagship deep-sea project in Krishna Godavari basin in Bay of Bengal, which can assist reverse years of decline in output. The ‘first oil’ from the deep-water KG-DWN-98/2 block in Bay of Bengal has flowed on January 7, the agency mentioned in a press release.
Oil minister Hardeep Singh Puri additionally introduced the beginning of production in a put up on X however neither he nor ONGC gave out the quantity of oil being produced.
“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 mentioned within the assertion.
ONGC produced 18.four million tonnes of crude oil and about 20 billion cubic metres per day of gasoline within the 2022-23 fiscal yr (April 2022 to March 2023).
Puri mentioned the “production is expected to be 45,000 barrels per day and over 10 million standard cubic metres per day of gas” from the Cluster-2 discoveries within the block. He nonetheless didn’t give the time traces for reaching these ranges of output.
Last month in a written reply to a query in Rajya Sabha, minister of state for petroleum and pure gasoline Rameswar Teli had acknowledged that ONGC will in May 2024 begin business production of crude oil from the block.
The KG-DWN-98/2 or KG-D5 block, which sits subsequent to Reliance Industries’ KG-D6 block within the KG basin, has numerous discoveries which have been clubbed into clusters.
Located 35 kilometres off the coast of Andhra Pradesh in water depths ranging from 300-3,200 metres, the discoveries within the block are divided into Cluster-1, 2 and three. Cluster 2 is being put to production first.
As per unique plans, oil production from Cluster-2 ought to have begun by November 2021, however was delayed due to the Covid pandemic. Thereafter, ONGC set May 2023 as the primary Cluster-2 oil production deadline however then prolonged it to August 2023 and thereafter prolonged the circulate of first oil each month, with the final deadline introduced being December 2023.
“Valiantly combating various technological and Covid-related challenges, 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. With commencement of this first oil on January 7, 2024, ONGC is nearing completion of Phase 2, culminating into commencement of oil production from the ‘M’ field of KG-DWN-98/2,” ONGC mentioned.
It went on to state that the event of this discipline confronted distinctive technical challenges because of the waxy nature of the 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 mentioned.
The project, it mentioned, is on observe with ultimate part of project with the stability oil and gasoline fields of the block scheduled to be placed on production by mid-2024. “Peak production of field is expected to be 45,000 barrels of oil per day (bopd) and over 10 mmsmd of gas.”
ONGC has employed floating vessel Armada Sterling-V, owned 70 per cent by SPOG (Shapoorji Pallonji Oil & Gas) and 30 per cent by Malaysia’s Bumi Armada, for producing oil from beneath seabed.
The FPSO (floating production, storage and offloading vessel), Armada Sterling-V, had been ready to obtain oil since January 2, 2023, after she was attached on December 27, 2022.
In the KG-D5 block, Cluster-1 consists of three discoveries. FDPs (discipline improvement plans) of two discoveries had been authorised in 2019. This project is at present within the improvement stage.
In Cluster-3, there’s one extremely-deep water gasoline discovery which might be the second deepest hydrocarbon discovery on the earth, when monetised. The FDP is scheduled to be submitted by January 2026.
ONGC had proposed a FDP for Cluster-2 in April 2018, with an estimated capital expenditure of USD 5.07 billion and operational expenditure of USD 5.12 billion over a discipline lifetime of 16 years.
The Cluster-2 discipline is split into two blocks particularly 2A and 2B, which as per the unique funding determination had been anticipated to supply 23.52 million metric tonnes of oil and 50.70 billion cubic metres (bcm) of gasoline over the lifetime of the sector.
Cluster 2A was estimated to comprise reserves of 94.26 million tonnes of crude oil and 21.75 bcm of related gasoline, whereas Cluster 2B is estimated to host 51.98 bcm of gasoline reserves.
Cluster 2A was anticipated to supply 77,305 barrels of oil per day (bopd) and related gasoline at a fee of three.81 million metric normal cubic metres per day (mmscmd) over 15 years.
Cluster 2B was anticipated to supply free gasoline of 12.75 mmscmd from eight wells and has a 16-year life.
But ONGC is now projecting a decrease output – 45,000 bpd of oil and as much as 2.5 mmscmd from Cluster 2A and round 9 mmscmd from Cluster 2B.
Oil minister Hardeep Singh Puri additionally introduced the beginning of production in a put up on X however neither he nor ONGC gave out the quantity of oil being produced.
“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 mentioned within the assertion.
ONGC produced 18.four million tonnes of crude oil and about 20 billion cubic metres per day of gasoline within the 2022-23 fiscal yr (April 2022 to March 2023).
Puri mentioned the “production is expected to be 45,000 barrels per day and over 10 million standard cubic metres per day of gas” from the Cluster-2 discoveries within the block. He nonetheless didn’t give the time traces for reaching these ranges of output.
Last month in a written reply to a query in Rajya Sabha, minister of state for petroleum and pure gasoline Rameswar Teli had acknowledged that ONGC will in May 2024 begin business production of crude oil from the block.
The KG-DWN-98/2 or KG-D5 block, which sits subsequent to Reliance Industries’ KG-D6 block within the KG basin, has numerous discoveries which have been clubbed into clusters.
Located 35 kilometres off the coast of Andhra Pradesh in water depths ranging from 300-3,200 metres, the discoveries within the block are divided into Cluster-1, 2 and three. Cluster 2 is being put to production first.
As per unique plans, oil production from Cluster-2 ought to have begun by November 2021, however was delayed due to the Covid pandemic. Thereafter, ONGC set May 2023 as the primary Cluster-2 oil production deadline however then prolonged it to August 2023 and thereafter prolonged the circulate of first oil each month, with the final deadline introduced being December 2023.
“Valiantly combating various technological and Covid-related challenges, 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. With commencement of this first oil on January 7, 2024, ONGC is nearing completion of Phase 2, culminating into commencement of oil production from the ‘M’ field of KG-DWN-98/2,” ONGC mentioned.
It went on to state that the event of this discipline confronted distinctive technical challenges because of the waxy nature of the 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 mentioned.
The project, it mentioned, is on observe with ultimate part of project with the stability oil and gasoline fields of the block scheduled to be placed on production by mid-2024. “Peak production of field is expected to be 45,000 barrels of oil per day (bopd) and over 10 mmsmd of gas.”
ONGC has employed floating vessel Armada Sterling-V, owned 70 per cent by SPOG (Shapoorji Pallonji Oil & Gas) and 30 per cent by Malaysia’s Bumi Armada, for producing oil from beneath seabed.
The FPSO (floating production, storage and offloading vessel), Armada Sterling-V, had been ready to obtain oil since January 2, 2023, after she was attached on December 27, 2022.
In the KG-D5 block, Cluster-1 consists of three discoveries. FDPs (discipline improvement plans) of two discoveries had been authorised in 2019. This project is at present within the improvement stage.
In Cluster-3, there’s one extremely-deep water gasoline discovery which might be the second deepest hydrocarbon discovery on the earth, when monetised. The FDP is scheduled to be submitted by January 2026.
ONGC had proposed a FDP for Cluster-2 in April 2018, with an estimated capital expenditure of USD 5.07 billion and operational expenditure of USD 5.12 billion over a discipline lifetime of 16 years.
The Cluster-2 discipline is split into two blocks particularly 2A and 2B, which as per the unique funding determination had been anticipated to supply 23.52 million metric tonnes of oil and 50.70 billion cubic metres (bcm) of gasoline over the lifetime of the sector.
Cluster 2A was estimated to comprise reserves of 94.26 million tonnes of crude oil and 21.75 bcm of related gasoline, whereas Cluster 2B is estimated to host 51.98 bcm of gasoline reserves.
Cluster 2A was anticipated to supply 77,305 barrels of oil per day (bopd) and related gasoline at a fee of three.81 million metric normal cubic metres per day (mmscmd) over 15 years.
Cluster 2B was anticipated to supply free gasoline of 12.75 mmscmd from eight wells and has a 16-year life.
But ONGC is now projecting a decrease output – 45,000 bpd of oil and as much as 2.5 mmscmd from Cluster 2A and round 9 mmscmd from Cluster 2B.
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