The State-controlled Oil and Natural Gas Corporation (ONGC) is set to begin oil production from its long-awaited flagship deepsea project in the Krishna Godavari basin in the Bay of Bengal this month. According to a senior company official, this will help to overturn years of decline in output. Pankaj Kumar, ONGC Director (Production), informed PTI that we intend to begin production from the Cluster-2 project in the KG-DWN-98/2 block this month and gradually increase our output.
An FPSO, or floating production unit, is already positioned in the block for oil production. ONGC has informed Shapoorji Pallonji Oil and Gas (SPOG) that the FPSO Armada Sterling-V should be ready to receive the first oil this month, following several missed deadlines.
The commencement of oil production from Cluster-2 was scheduled for November 2021 but was postponed due to the impact of the pandemic. Kumar mentioned that ONGC intends to commence production from 3 to 4 wells as a starting point and gradually link up the remaining wells. The initial output could range from 8,000 to 9,000 barrels per day.
Gas production in the region is relatively uncomplicated, but it is important to be cautious when opening oil valves to avoid sand and water entering the wells. The key is to invest in drilling more wells and producing at optimal levels instead of hastily trying to increase production volumes, an official clarified.
