ONGC Initiates its ‘First Oil Production’ at the Krishna-Godavari Basin, Maximizing its Oil Production

The Oil and Natural Gas Corporation, a leading state-run petrochemical major, has initiated its First Oil-Production plant in the Krishna-Godavari basin, also known as KG-DWN 98/2. The block is located approximately 25 km off the Kakinada coast, on the Bay of Bengal. The company commenced the production of its first oil extraction plant at the KG-DWN 98/2 on January 7, 2024. The production rate from the sea block is expected to be approximately 45,000 barrels of oil per day and over 10 million metric standard cubic meters per day (MMSCMD) of gas.

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Earlier in March 2020, the company marked a significant milestone by successfully executing phase 1 of the oil production project. It accomplished a commendable target, overcoming different challenges, including technical hurdles while surviving the impact of the Pandemic. Phase 1 began with the commencement of gas production from the U-Field of the KG-DWN 98/2 block in a duration of 10 months. On January 7, 2024, with the inauguration of ‘First Oil’ from the M field, the firm is now nearing the completion of phase 2 of the project.

The development of the KG-DWN 98/2 was comparatively challenging due to the waxy nature of the crude oil. With the implementation of the innovative pipe-in-pipe technology, the company managed to tackle the problems with modern solutions.

According to the Executive Director and Asset Manager (ONGC-Kakinada), the company expects an increase of 11% in its total oil production and around 15% increase in natural gas production after the commencement of oil and gas production at the 98/2 block. Additionally, prioritizing the ideology of the Make in India initiative, the majority of the project’s fabrication work has been designed at the Modular Fabrication Facility of Kattupalli in Tamil Nadu. The company is on the verge of reaching its final phase while beginning the production of the balance of oil and natural gas by mid-2024.

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According to Procurement Resource, ONGC has recently commenced its ‘first oil production’ project from deep-water block located near the coastline of Kakinada. The production plant based in the Krishna-Godavari Basin primarily focuses on the production of oil and natural gas resources, anticipating a production increase in both the commodities.