ONGC's Flagship KG Basin Project Eyes May 2024 for Crude Oil Production Amid Challenges

7 Dec 2023 , 11:45 AM

ONGC’s flagship deep-sea project in the Krishna Godavari basin, KG-DWN-98/2, will commence commercial crude oil production in May next year.

The KG basin project has faced delays due to challenging geology, subsurface geological issues, shifting well locations, delays in the project supply chain due to the Covid-19 pandemic, and adverse weather conditions.

KG-DWN-98/2, adjacent to Reliance Industries’ KG-D6 block, is located 35 kilometers off the Andhra Pradesh coast in water depths of 300-3,200 meters.

The discoveries in the block are categorized into Clusters 1, 2, and 3, with Cluster 2 set for commercial production of crude oil in May 2024.

Cluster 1 is in the development stage with three discoveries, while Cluster 3, featuring an ultra-deep water gas discovery, is expected to submit a field development plan (FDP) by January 2026.

Original plans aimed for oil production from Cluster 2 by November 2021, but pandemic-related delays pushed the deadline to October 2023.

ONGC Director (Production) Pankaj Kumar mentioned oil production starting in November, but no recent update has been provided.

After discoveries, operators submit a field development plan for approval, followed by production facility development, testing, and commercial production, as outlined by Minister of State for Petroleum and Natural Gas Rameswar Teli.

For feedback and suggestions, write to us at [e-mail]