ONGC achieves first oil production from KG-DWN-98/2 Block in Bay of Bengal

Oil and Natural Gas Corporation (ONGC), India’s premier oil and gas company, has announced the successful commencement of ‘First Oil’ production from the KG-DWN-98/2 Block, a significant deep-water project in the Krishna Godavari Basin, located off the coast of the Bay of Bengal.

Phase 2 Completion and Production Milestone

Marking a major milestone, the ‘First Oil’ was extracted from the ‘M – field’ on 7th January 2024, signifying the completion of Phase 2 of the project. ONGC’s flagship project is on course, with the final phase expected to be completed by June 2024. This development will lead to a gradual increase in production, aiming to reach a peak output of 45,000 barrels of oil per day (bopd) and 10 million standard cubic meters per day (MMSCMD) of gas.

KG-DWN-98/2 Block: An Overview

The KG-DWN-98/2 block is strategically located 35 kilometers off the coast of Andhra Pradesh, covering an expansive area of 7,294.6 square kilometers. The block operates in water depths ranging from 300 meters to 3,200 meters. This area is part of a vast tertiary basin comprising a range of depositional systems, extending from shore-face to deep-water submarine fan sandstones.

Exploration and Development Focus

The exploration efforts in this region have primarily focused on the thick Tertiary passive margin system. The offshore portion of this basin is crucial for India’s energy sector, promising significant oil and gas reserves essential for the country’s growing energy needs.

Implications for India’s Energy Sector

ONGC’s successful commencement of oil production from the KG-DWN-98/2 block represents a leap forward in India’s deep-water oil exploration capabilities. It underscores the company’s commitment to enhancing the nation’s energy security and its status as a key player in the global energy market.