Oil and Natural Gas Corporation (ONGC) has announced the commencement of production from its KG basin gas field. ONGC will produce 0.4 mmscmd from 15 June, 2023 and will ramp it up to 1.4 mmscmd by 5 February, 2024.  The site is located at KG-DWN-98/2 or KG-D5 block in the Krishna Godavari basin.

The blocks have been merged into three clusters such as Cluster-I, II and III. Currently, Cluster II is being implemented first for production, and the field is divided into two blocks i.e., II-A and II-B. Originally, the investment decision was anticipated to produce 23.52 million tonne of oil and 50.70 billion cubic metres (bcm) of gas over the life of the field. Earlier in April 2018, ONGC had estimated the capital expenditure to be USD 5.07 billion, and operational expenditure to be USD 5.12 billion over a field life of 16 years.

Cluster II-A was expected to contain reserves of 94.26 million tonne of crude oil and 21.75 bcm of associated gas, while Cluster II-B is estimated to host 51.98 bcm of gas reserves. Similarly, Cluster II-A was estimated to produce 77,305 barrels of oil per day (bopd) and associated gas at a rate of 3.81 mmscmd over 15 years. Cluster II-B is expected to produce free gas of 12.75 mmscmd from eight wells and has a 16-year timespan.

The recent output estimate is 45,000 bpd of oil and up to 2.5 mmscmd from Cluster II-A and approx. nine mmscmd from Cluster II-B.