The Oil and Natural Gas Corporation (ONGC) has pumped first gas from its deep-water U1B well in Krishna Godavari block KG-D5 in the Bay of Bengal.
The well, in KG-DWN 98/2 Block's Cluster-2, has an estimated peak production of 1.2 mmscmd of gas.
Secretary, Ministry of Petroleum and Natural Gas, Tarun Kapoor, flagged off maiden production from the deep-water gas well U1B on 31 August 2021.
ONGC''s KG-DWN-98/2 or KG-D5 block, which sits next to Reliance Industries' KG-D6 block in the KG basin, has a number of discoveries that have been clubbed into clusters.
The discoveries in the block are divided into three clusters -- Cluster-1, -2 and -3. Of this, Cluster-2 is being put to production first.
The Cluster-2 field is divided into two blocks 2A and 2B, which are expected to produce 23.52 million tonne of oil and 50.70 bcm of gas. The oil production is likely to start shortly.
The company is investing USD 5.07 billion in developing the oil and gas discoveries in the block. It will cumulatively produce around 25 million tonne of oil and 45 bcm of gas with a peak production of 78,000 barrels per day of oil and 15 mmscmd.
There is a lot of production potential in deep-water and this monetisation holds special national significance as the first priority of the government is to ensure enhancement of domestic production and reduction of oil and gas imports.
The KG-DWN 98/2 block is situated offshore in the Godavari river delta in the Bay of Bengal. It is located 35 km off the coast of Andhra Pradesh in water depths ranging from 300-3,200 mtr.
Cluster-2A is estimated to contain reserves of 94.26 million tonne of crude oil and 21.75 bcm of associated gas, whereas Cluster-2B is estimated to host 51.98 bcm of gas reserves.
Cluster-2A is expected to produce 77,305 bopd and associated gas at a rate of 3.81 mmscmd over 15 years. Cluster-2B is expected to produce free gas of 12.75 mmscmd from eight wells and has a 16-year life.