State-owned Oil and Pure Fuel Company (ONGC) on Sunday stated it has opened one other effectively on its flagship deep-sea venture in Krishna Godavari basin in Bay of Bengal, which can assist increase manufacturing of crude oil and pure gasoline. In January this 12 months, 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 effectively within the Block KG-DWN-98/2 Cluster-2 asset,” the agency stated in a inventory alternate submitting on Sunday.
“Leveraging the floating manufacturing, storage, and offloading (FPSO) vessel, ONGC has begun transporting and sale of related gasoline, all of the whereas underscoring its dedication to reaching zero gasoline flaring.”
It, nevertheless, didn’t state how a lot the brand new effectively was producing.
With this, ONGC additionally efficiently commissioned its gasoline export line from the offshore-to-onshore terminal.
“Earlier in January, oil manufacturing commenced from the identical asset, with 4 of 13 wells already flowing. Fuel manufacturing can also be advancing, with 3 of seven wells on-line,” it added.
The block, which sits subsequent to Reliance Industries’ KG-D6 block within the KG basin, has a lot of discoveries which have been clubbed into clusters.
Situated 35 kilometres 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.
As per unique plans, oil manufacturing from Cluster-2 ought to have begun by November 2021, however was delayed due to the Covid pandemic.
Thereafter, ONGC set Could 2023 as the primary Cluster-2 oil manufacturing deadline however then prolonged it to August 2023 and thereafter prolonged the move of first oil each month, 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 said that peak or most manufacturing from the sphere is anticipated to be 45,000 barrels of oil per day (bopd) and over 10 million commonplace cubic meters per day (mmscd) of gasoline which is used to make fertilisers, generate electrical energy, become CNG to be used as gasoline in cars and piped to family kitchens for cooking.
In an investor name on August 6, ONGC Director (Finance) Vivek Tongaonkar had said 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 effectively was deliberate to be opened in August, he had stated.
This effectively wouldn’t simply increase the oil manufacturing but additionally assist improve the quantity of pure gasoline which flows out with oil, to 1.5 mmscmd.
“And subsequently, from the third quarter (October-December 2024), we count on to open additional wells, which might add to our oil manufacturing as a lot. So, from the third and fourth quarter (January-March 2025), we count on to have a manufacturing fee of about 30,000 bopd plus because the wells open up.”
The envisaged peak of 45,000 bopd was probably in subsequent quarters, he had stated.
Fuel output is anticipated to succeed in 6 mmscmd by March 2025.
ONGC has drilled 26 wells on the sphere. 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 tip of March.
ONGC has employed floating vessel Armada Sterling-V, owned 70% by SPOG (Shapoorji Pallonji Oil & Fuel) and 30% by Malaysia’s Bumi Armada, for producing oil from under seabed.
The FPSO (floating manufacturing, storage and offloading vessel), Armada Sterling-V, had been ready to obtain oil since January 2, 2023, after she was connected on December 27, 2022.
Within the KG-D5 block, Cluster-1 consists of three discoveries. FDPs (subject growth plans) of two discoveries had been accredited in 2019. This venture is presently within the growth stage.
In Cluster-3, there’s 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 USD 5.07 billion and operational expenditure of USD 5.12 billion over a subject lifetime of 16 years.
The Cluster-2 subject is split into two blocks particularly 2A and 2B, which as per the unique funding resolution had been anticipated to supply 23.52 million metric tonnes of oil and 50.70 billion cubic metres (bcm) of gasoline over the lifetime of the sphere.
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 supply 77,305 barrels of oil per day (bopd) and related gasoline at a fee of three.81 million metric commonplace cubic metres per day (mmscmd) over 15 years. Cluster 2B was anticipated to supply 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.
 and associated gas at a rate of 3.81 million metric standard cubic metres per day (mmscmd) over 15 years. Cluster 2B was expected to produce free gas of 12.75 mmscmd from eight wells and has a 16-year life.){kind=link}