ONGC To Start Commercial Oil Production From KG Block In May 2024

NewsBharati    05-Dec-2023 21:11:26 PM
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The Minister of State for Petroleum and Natural Gas, Rameswar Teli, revealed on Monday that the state-controlled Oil and Natural Gas Corporation (ONGC) is facing some challenges in its flagship deepsea project in the Krishna Godavari basin, which has caused delays in its commercial production.
 
 
Oil
 
According to Teli, the project, known as KG-DWN-98/2, is facing issues with its geology, as well as problems with well locations, surface facilities, and processing platforms. These challenges have been exacerbated by the Covid-19 pandemic and adverse weather conditions, resulting in a disruption of the project's supply chain.

The KG-DWN-98/2, also referred to as KG-D5, is located next to the KG-D6 block owned by Reliance Industries. It comprises several discoveries that have been grouped into three clusters, with Cluster-2 being the first to begin production.
 
Teli explained that Cluster-1, consisting of three discoveries, had its FDPs approved in 2019 and is currently in the development stage. Meanwhile, Cluster-2 has already started producing gas since March 2020, with crude oil production scheduled for May 2024.
 
The project is expected to be fully completed by 2024. In Cluster-III, there is one ultra-deep water gas discovery that is set to become the second deepest hydrocarbon discovery in the world once it is monetized.
 
According to Teli, once the necessary discoveries have been made in each block, operators are required to present a field development plan for approval by the Directorate General of Hydrocarbons.
 
He further explained, "After that, the operator begins developing production facilities, followed by testing and ultimately, commercial production." In April of 2018, ONGC proposed a field development plan for Cluster-II with an estimated cost of $5.07 billion for capital expenditure and $5.12 billion for operational expenditure over a period of 16 years.

The Cluster-II field is divided into two blocks - 2A and 2B. The initial investment decision projected a total production of 23.52 million metric tonnes of oil and 50.70 billion cubic metres of gas over the lifespan of the field. Cluster 2A was estimated to hold 94.26 million tonnes of crude oil and 21.75 bcm of associated gas, while Cluster 2B was expected to contain 51.98 bcm of gas reserves.
 
It was anticipated that Cluster 2A would yield 77,305 barrels of oil per day and associated gas at a rate of 3.81 million metric standard cubic metres per day over a period of 15 years.

It is anticipated that Cluster 2B will generate a significant amount of free gas, approximately 12.75 mmscmd, from a total of eight wells. This cluster has a projected lifespan of 16 years.
 
However, ONGC has forecasted a slightly lower production rate, estimating 45,000 barrels per day of oil from Cluster 2A and up to 2.5 mmscmd from Cluster 2B. Additionally, they expect to yield around 9 mmscmd from Cluster 2B. 
 
Source : PTI