KG-DWN-98/2 project : ONGC produces early first gas from Krishna Godavari basin block

India’s Oil and Natural Gas Corporation (ONGC) has drawn its first gas from the KG-DWN-98/2 project, which has been developed with an investment of $5 billion in the offshore Krishna Godavari basin in India.

The KG-DWN-98/2 block contains the deepwater Cluster 2 field located off the shore of the Godavari delta on the east coast of India in water depths ranging from 300m to 3,200m. The block covers an area of 7294.6km² of the Krishna Godavari basin and has both oil and gas fields.

McDermott International, which alongside Baker Hughes – a GE company (BHGE), and L&T Hydrocarbon Engineering (LTHE) won ONGC’s $1.6 billion subsea contract in October 2018, announced the production of first gas from the KG-DWN-98/2 project.

As per the contract terms, McDermott was engaged in the integrated subsea package. This involved the supply of all subsea production systems (SPS), including supply of 26 deepwater trees, and subsea umbilicals, risers, and flowlines (SURF) installation in 0-1,300m water depth range.

The KG-DWN-98/2 development is claimed to be India’s largest subsea project. Block 98/2 is estimated to have a total peak gas production rate of nearly 16 million metric standard cubic meter per day (MMSCMD). The offshore Indian block is expected to have a peak oil production rate of 80,000 barrels per day (BPD).

The offshore Indian gas project has drawn its early first gas from a single well with a subsea tieback to the existing Vashishta facility at the Vashishta gas field. The first well of the project, which was drilled to a depth of 1,300m for the purpose of drawing early first gas is said to be the deepest well to be opened by ONGC, according to McDermott.

ONGC’s KG-DWN-98/2 project in India produces early first gas. Photo courtesy of Oil and Natural Gas Corporation Ltd.

Ian Prescott – McDermott Asia Pacific Senior Vice President, commenting on the KG-DWN-98/2 project, said: “To deliver this accelerated schedule is an exceptional achievement and testament to the benefits of the collaborative commercial model put forward to ONGC. Production from a deepwater well in less than 14 months is an outstanding achievement for the deepwater exploration and production industry.

“In line with the ‘Made in India’ approach for the 98/2 project, a substantial amount of the engineering and project management has been led from McDermott’s operations in Chennai. This local approach is a new initiative in the deepwater subsea space for McDermott.”

The offshore Indian gas project consists of the drilling and completion of 34 wells. As part of this 15 oil producing wells, eight gas producing wells, and 11 water injection wells will be drilled under the KG-DWN-98/2 project.