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ONGC pushes back KG gas production to 2019-end

Thursday, 12 Jul 2018
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The Oil and Natural Gas Corporation (ONGC) has pushed back the commencement of natural gas production from its KG basin to December 2019. ONGC has reworked the USD 5.07 billion development to accommodate new policies and local purchase preference rules.

The initial target was of June 2019 to produce gas from a cluster of discoveries in the Bay of Bengal block KG-DWN-98/2 or KG-D5. The first gas is expected by December 2019 and oil by March 2021.

The ONGC Board had in March 2016 approved a field development plan for Cluster-II discoveries in the block that sits next to Reliance Industries’ flagging KG-D6 block in Krishna Godavari basin.

ONGC is targeting a peak oil output of 77,305 barrels per day within two years of the start of production. Gas output is slated to peak to 16.56 million standard cu mtr per day by 2022.

The 7,294.6 sq km deepsea KG-D5 block has been broadly categorised into Northern Discovery Area (NDA-3,800.6 sq km) and Southern Discovery Area (SDA-3,494 sq km).

The NDA has 11 oil and gas discoveries, while SDA has the nation’s only ultra-deepsea gas find of UD-1.

These finds have been clubbed in three groups -- Cluster-I, Cluster-II and Cluster-III. Gas discovery in Cluster-I is to be tied up with finds in neighbouring G-4 block for production, but this is not being taken up because of a dispute with RIL over the migration of gas from ONGC blocks.

Cluster-II is being developed at a cost of USD 5.07 billion. The completion of the entire development plans is expected by August 2021.

Oil & Natural Gas Corpn. Ltd.
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