New Delhi: 08 Jan-2024: In a major development for the energy sector, ONGC (Oil and Natural Gas Corporation) has announced the successful commencement of “First Oil” from the deep-water KG-DWN-98/2 Block, located off the coast of the Bay of Bengal. The 98/2 project is anticipated to boost ONGC’s total oil and gas production by 11 percent and 15 percent, respectively.
Overcoming technological and Covid-related challenges, ONGC accomplished Phase 1 of the project in March 2020, achieving the commencement of gas production from the U field of the KG-DWN-98/2 Block in a record time of 10 months.
The recent commencement of First Oil on January 7, 2024, indicates the nearing completion of Phase 2, leading to the initiation of oil production from the ‘M’ field of KG-DWN-98/2.
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The project faced distinctive technical challenges due to the waxy nature of the crude, prompting ONGC to employ innovative Pipe in Pipe technology, a first-of-its-kind initiative in India. While some subsea hardware was internationally sourced to meet specific requirements, the majority of fabrication works took place at the Modular Fabrication Facility at Kattupalli, emphasizing ONGC’s commitment to promoting ‘Make in India’ and contributing to a self-reliant energy sector in the country.
The flagship project remains on track, with the final phase scheduled to put the balance oil and gas fields of the block into production by mid-2024. The peak production of the field is expected to reach 45,000 barrels of oil per day (bopd) and over 10 MMSCMD of gas, aligning with the vision of the Hon’ble Prime Minister for an energy Aatmanirbhar Bharat.
This achievement marks a significant milestone in ONGC’s efforts to enhance India’s energy security and contribute to the nation’s self-sufficiency in the energy sector.