MC EXCLUSIVE ONGC yet to engage foreign player in KG Basin block to ramp up production to 45,000 bpd

The peak production from the block is expected to last for the next 9-10 years.

State-run Oil and Natural Gas Corporation (ONGC) is yet to engage a foreign player to ramp up production and reach the peak production target of 45,000 barrels per day (bpd) of oil from its deep-water block in the Krishna-Godavari Basin, a senior company official told Moneycontrol.

The company is open to partnerships or technical collaborations for further development of its KG-98/2 block as output there has remained steady at 34,000 bpd, the official added.

“Oil production from the block is at 34,000 barrels per day (bpd), as against projected peak production of 45,000 bpd. ONGC is in process of scouting further technologies to enhance reservoir management practices which may realise production target of 40,000-45,000 bopd in future,” the official said.

With respect to ONGC being unable to reach the peak target of 45,000 bpd by the earlier deadline of December 2024, the official said uncertainties in hydrocarbon exploration in such difficult areas such as deep-water wells are common.

ONGC did not respond to queries sent by Moneycontrol.

Also read: ONGC seeks foreign partnership to ramp up output from KG block

ONGC has drilled 13 wells in Cluster 2 of the KG-98/2 block. Peak production from the block is expected to last for the next 9-10 years, the official said. The discoveries in the block are divided into Cluster-1, 2 and 3, in which Cluster2 //added, number was missing, please check//  is an ultra-deep-water gas discovery.

Gas production

Besides enhancing oil production, ONGC expects non-associated gas production of around 4.0 million standard cubic metres per day (mmscmd) from the remaining gas wells in Cluster-2.

The official said all wells are drilled and production of 4 mmscmd gas would likely be achieved by the end of the year, following the commissioning of an offshore process platform.

ONGC’s current gas output from the KG Basin block is 3 mmscmd.

Also read: ONGC bags maximum blocks under OALP-IX; Vedanta, Oil India big winners