In a significant development, the state-controlled Oil and Natural Gas Corporation (ONGC) has initiated oil production from its flagship deep-sea project in the Krishna Godavari basin. The Cluster-2 project in KG-DWN-98/2 block, situated in the Bay of Bengal, marks a crucial milestone for ONGC, reversing years of output decline.
Oil Minister Hardeep Singh Puri confirmed the commencement of “first oil production” from the complex block. Although the exact current output remains undisclosed, Puri stated that production is anticipated to reach 45,000 barrels per day and over 10 million standard cubic metres per day of gas.
The Cluster-2 oil production, initially scheduled for November 2021, faced delays due to the Covid pandemic. ONGC has enlisted the floating production, storage, and offloading vessel, Armada Sterling-V, for oil extraction from beneath the seabed. The vessel, jointly owned by SPOG (Shapoorji Pallonji Oil & Gas) and Malaysia’s Bumi Armada, has been in position since January 2, 2023.
The KG-DWN-98/2 block, adjacent to Reliance Industries’ KG-D6 block, holds numerous discoveries organized into clusters. The Cluster 2 field, comprising blocks 2A and 2B, is expected to yield 45,000 bpd of oil and associated gas, deviating from the original estimates. The project, located 35 kilometers off the coast of Andhra Pradesh, is set to play a pivotal role in revitalizing ONGC’s production capabilities.
By PTI
