ONGC Starts Oil Production from Multibillion Deep-Water Project In KG Basin
State run PSU, Oil & natural gas Corporation, ONGC?, commenced its ‘First Oil flow to FPSO’, from much delayed project of development of discoveries in Krishna Godavari Deep-Water Block 98/2 (deep-water block located off the coast of the Bay of Bengal) on 7 January 2024.
State run PSU, Oil & natural gas Corporation, ONGC?, commenced its ‘First Oil flow to FPSO’, from much delayed project of development of discoveries in Krishna Godavari Deep-Water Block 98/2 (deep-water block located off the coast of the Bay of Bengal) on 7 January 2024. However, ONGC did not gave details of rate of oil and gas being produced from this multibillion-dollar development project. The block is located about 35 kms off the coast of Andhra Pradesh in water depths ranging from 300 to 3,200 meters.
The KG-DWN-98/2 block, which sits next to Reliance Industries' KG-D6 block in the KG basin, has a number of discoveries made around 2005-2010 and ONGC have clubbed them into three clusters. Cluster 2 is being put into production first. As per earlier plans, oil production from Cluster-2 should have been started by November 2021 which was extended to December 2023 in multiple extensions.
In the KG-DWN-98/2 block, Cluster-1 consists of three discoveries and Field Development Plan for 2 discoveries was approved in 2019. There is one ultra-deep water gas discovery in Cluster-3 which is planned to be developed after 2026.
FDP for Cluster-2 was submitted 2018, with an estimated cumulative expenditure of more than $10 billion over a field life of about 16 years. The Cluster-2 is further divided into two blocks namely 2A and 2B, which as per FDP submitted have cumulative reserves of about 23 MMT of oil and 50 BCM of gas. Cluster 2A, originally, was anticipated to produce more than 77,000 BOPD and associated gas at a rate of about 4 MMSCMD. However, now it is being projected a lower number of 45,000 BOPD and about 10 MMSCMD gas from Cluster 2A and 2B together.
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. Development of this field faced technical challenges due to the waxy nature of the crude, which was overcome by deploying pipe in pipe technology, probably first-of-its-kind in India. As per ONGC, the majority of fabrication works were carried out at modular fabrication facility at Kattupalli, in India.
ONGC has hired one FPSO (floating production, storage and offloading vessel), Armada Sterling-V, for producing oil. The Armada Sterling-V is waiting to receive oil since January, 2023, after it was hooked up in December, 2022.
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Phase-3 of development which may result in peak Oil and Gas production from the discoveries, is underway and likely to be over in middle of 2024. The 98/2 project is envisaged to increase ONGC’s total Oil and Gas production by 11 percent and 15 percent respectively. This was stated in the press release by ONGC. It is expected that the 'oil production will peak to about 45,000 BOPD’ and gas production to be over 10 MMSCMD’.
?It is said that the project is on track with final phase of project with all the oil and gas discoveries of the block scheduled to be put on production by mid-2024. ' ONGC has hired one FPSO (floating production, storage and offloading vessel), Armada Sterling-V, for producing oil. The Armada Sterling-V is waiting to receive oil since January, 2023, after it was hooked up in December, 2022.
Images for representation purpose only.?
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Retd.
1 年ONGC should reward those who were involved in the G&G interpretation of KG-DWN-98/2 Block during 2005-2010
Oil/Gas, CBM, Production & Exploration Consultant
1 年Thanks for the details Satyesh
Adjunct Faculty at Calcutta University Geology department
1 年Thanks for posting this great long awaited news. I was associated with this project at various initial phases of exploration and delineation.
General Manager (Corporate Planning and E&P-Oil/gas Asset Operation Management) at ONGC
1 年Great and momentous beginning in the Indian E&P history ????????. Regards