ONGC To Start Oil Production In KG Basin By June

The production of hydrocarbons from the block was initially expected produce oil by March 2020 and gas by June 2019. However, after the operations have been delayed amid the pandemic. The company expects to start production of 10,000-12,000 barrels per day and the anticipated peak of 45,000 bpd may be reached in the next few months.

“From KG-DWN 98/2 we will start production (of oil) shortly. By June it will come up," Singh said in an interview.

The total oil production from the block is expected to be 23.526 million metric tonne and total gas production is likely to be 50.706 Billion Cubic Metre (BCM).

ONGC’s KG-DWN-98/2 or KG-D5 block, is adjacent to KG-D6 block and has a number of discoveries that have been clubbed into clusters. Located 35 kilometres off the coast of Andhra Pradesh, the discoveries in the block are divided into three clusters -- Cluster-1, 2 and 3. Cluster 2 would be the first among the three to produce hydrocarbons, which is divided into two blocks -- 2A and 2B.

Speaking on the the plans for oil and gas exploration, he said that the state-run energy major has already floated tenders for rigs and it has also received bids from global drilling majors including Transocean and Vantage Drilling.

He said that in the next couple of months the rigs would be finalized and within another six months post the decision on the rigs.

“Andaman is very challenging project especially in logistics point of view. Its very difficult to set up a base in Andaman. We are planning to some deploy vessel with helipad facility that in case of any emergency our chopper can land there. May be in a couple of months we will finalize the tender. After that we give six months time to the contractor to mobilize it. We have to build a complete ecosystem," Singh said.

Noting that ultra deep water projects are cost intensive, he said that the expenditure on one well in ultra-deep water exploration would in the range of ₹800 crore to ₹1,000 crore.

On January 22, Mint reported that the public sector exploration and production (E&P) major plans to tie up with French giant TotalEnergies for exploration and production of oil and gas in the Andaman islands. In March, the company signed a memorandum of understanding with French major TotalEnergies for exploration of deep-water blocks.

The exploration in Andaman basin would be done under the government’s National Island Exploration Project. Centre has ramped up plans for oil and gas exploration in a bid to reduce import dependence for the these natural resources. India imports 85% of its energy requirement.

The ONGC Director for technology and field services said: “We are waiting for some big discoveries. For every barrel of production we make, we replace a barrel of imports."

He also said that the company is gearing up for exploration in the Kaveri and Mahanadi basins.

The Maharatna company aims to drill 541 oil wells in FY24, up from 461 wells drilled in the last fiscal.

“For this year we have a target of 541 wells, for FY24. We are going increase our rig count massively. Currently in onshore we are operating around 62 rigs. In offshore we have 31 rigs. This is going to increase by July or August. In onshore (we will have) 75 rigs."