State-owned Oil and Pure Gasoline Company (ONGC) on Sunday mentioned it has opened one other properly on its flagship deep-sea mission in Krishna Godavari basin in Bay of Bengal, which can assist increase manufacturing of crude oil and pure gasoline.
In January, ONGC had began producing oil, which is transformed into fuels like petrol and diesel in refineries, from the KG-DWN-98/2 or KG-D5 block.
“On August 24, 2024, ONGC marked a big milestone by beginning manufacturing from its fifth oil properly within the Block KG-DWN-98/2 Cluster-2 asset,” the agency mentioned in a inventory trade submitting. Nonetheless, it didn’t state how a lot the brand new properly was producing.
Union Minister for Petroleum and Pure Gasoline Hardeep Singh Puri hailed the feat as ‘a serious milestone’.
“A serious milestone achieved in oil & gasoline manufacturing by ONGC in India’s formidable journey in the direction of power self-sufficiency. Gasoline begins to movement by means of a newly laid 20 inches sub-sea pipeline from offshore wells/ Floating manufacturing, storage and offloading vessel (FPSO) in Krishna Godavari deep water block to onshore terminal,” he wrote in a submit on X (formally twitter).
The state-run oil and gasoline explorer additionally efficiently commissioned its gasoline export line from the offshore-to-onshore terminal.
Manufacturing targets
The block, which sits subsequent to Reliance Industries’ KG-D6 block within the KG basin, has quite a few discoveries which have been clubbed into clusters.
Positioned 35-km off the coast of Andhra Pradesh in water depths starting from 300-3,200 metres, the discoveries within the block are divided into Cluster-1, 2 and three. Cluster 2 is being put to manufacturing first.
In response to unique plans, oil manufacturing from Cluster-2 ought to have begun by November 2021, however was delayed because of the Covid-19 pandemic.
After that, ONGC set Might 2023 as the primary Cluster-2 oil manufacturing deadline however prolonged it a number of occasions with the final deadline introduced being December 2023. Oil began flowing from January 7, 2024.
On the time of begin of manufacturing in January, ONGC had acknowledged that peak or most manufacturing from the sector is predicted to be 45,000 barrels of oil per day (bopd) and over 10 million customary cubic meters per day (mmscd) of gasoline, which is used to make fertilisers, generate electrical energy, become CNG to be used as gasoline.
In an investor name on August 6, ONGC Director (Finance) Vivek Tongaonkar had acknowledged that the agency was producing 12,000 bopd and 0.4 mmscmd of gasoline from the jap offshore block.
This manufacturing was from 4 wells and yet another properly was deliberate to be opened in August, he mentioned. The envisaged peak of 45,000 bopd was seemingly in subsequent quarters, Tongaonkar mentioned. Gasoline output is predicted to achieve 6 mmscmd by March 2025.
ONGC has drilled 26 wells on the sector. Out of those, 13 are oil producing and 7 gasoline producing. The agency expects to open all 13 oil producing wells plus six gasoline wells by the top of March.
KG-D5 block discoveries
Within the KG-D5 block, Cluster-1 consists of three discoveries. FDPs (subject growth plans) of two discoveries had been accredited in 2019. This mission is presently within the growth stage. In Cluster-3, there may be one ultra-deep water gasoline discovery which might be the second deepest hydrocarbon discovery on the planet, when monetised. The FDP is scheduled to be submitted by January 2026.
ONGC had proposed a FDP for Cluster-2 in April 2018, with an estimated capital expenditure of $5.07 billion and operational expenditure of $5.12 billion over a subject lifetime of 16 years.
The Cluster-2 subject is split into two blocks specifically 2A and 2B, which as per the unique funding resolution had been anticipated to provide 23.52 million metric tonnes of oil and 50.70 billion cubic metres (bcm) of gasoline over the lifetime of the sector.
Cluster 2A was estimated to comprise reserves of 94.26 million tonnes of crude oil and 21.75 bcm of related gasoline, whereas Cluster 2B is estimated to host 51.98 bcm of gasoline reserves.
Cluster 2A was anticipated to provide 77,305 barrels of oil per day (bopd) and related gasoline at a charge of three.81 million metric customary cubic metres per day (mmscmd) over 15 years. Cluster 2B was anticipated to provide free gasoline of 12.75 mmscmd from eight wells and has a 16-year life.
However ONGC later revised the output downwards 45,000 bopd of oil and as much as 2.5 mmscmd from Cluster 2A and round 9 mmscmd from Cluster 2B.
