NEW DELHI: In a big boost to the country’s oil and gas production, Oil and Natural Gas Corporation (ONGC) has begun production of crude oil from its deep-sea project in the Krishna-Godavari (KG) basin block KG-DWN-98/2.
The project is expected to add 7% each to current national oil and natural gas production. For ONGC, it will augment its total oil and gas production by 11% and 15%, respectively. “First oil production commences from the complex and difficult deepwater KG-DWN-98/2 Block, situated off the coast of Bay of Bengal. Production is expected to be 45,000 barrels per day and over 10 million cubic metres of gas per day, contributing towards an energy #AatmanirbharBharat. This project is expected to add 7% to current national oil production and 7% to national Natural Gas production,” said Hardeep Singh Puri.
India, imports 85% of its crude requirement and 50% of natural gas needs, aims to cut its import bill. However, with the ageing of the existing fields, the country’s domestic production is decreasing year on year. Therefore, the new project will give a big boost to the crude production target, and reduce reliance on oil and gas imports.
“This is a remarkable step in India’s energy journey and boosts our mission for an Aatmanirbhar Bharat. It will have several benefits for our economy as well,” said Prime Minister Narendra Modi, in a tweet. The project was launched in April 2018, with the total expenditure at $5.07 billion and operational expenditure at $5.12 billion over a field life of 16 years.
The company initially planned to start oil production from the block in November 2021, but the deadline was extended due to various hurdles including Covid-19. “ONGC announces the successful commencement of First Oil from the deep-water KG-DWN-98/2 Block, situated off the coast of Bay of Bengal. This 98/2 project is likely to increase ONGC’s total Oil and Gas production by 11% and 15% respectively,” said ONGC in a statement.