ONGC start oil production from offshore India block
Indian state-owned energy producer, ONGC, on January 7 announced a successful start of oil production from the deep-water KG-DWN-98/2 block, situated off India's east coast.
The successful initiation of oil production from the M-field marks the completion of the second phase of the flagship KG-DWN-98/2 project. The project remains on track, with the final phase scheduled for completion by June 2024. ONGC had successfully executed the first phase of the project in March 2020, achieving the commencement of gas production from the U field of the KG-DWN-98/2 block.
Post-completion, a gradual ramp-up will commence, aiming to reach the planned peak production of 45,000 barrels/day and 10mn m3/day of gas from the KG-DWN-98/2 block. The project is likely to increase ONGC’s total oil and gas production by 11% and 15% respectively.
Hardeep Singh Puri, India's minister of petroleum and natural gas, took to X, formerly known as Twitter, to announce the substantial impact of the project, stating, "This project is expected to add 7% to the current national oil production and 7% to national natural gas production!"
The KG-DWN 98/2 block is situated offshore the Godavari River delta in the Bay of Bengal. It is positioned 35km off the coast of Andhra Pradesh on the east coast of India, encompassing water depths ranging from 300m to 3,200m.