ONGC to Commence Commercial Oil Production from KG Block

SEATTLE (Oil Monster): The state-owned Oil and Natural Gas Corporation (ONGC) will commence commercial crude oil production from Krishna Godavari basin (KG Basin) in May 2024, said Rameswar Teli, Minister of State for Petroleum and Natural Gas, in a written reply to a question in the Rajya Sabha.

The Minister noted that the KG Basin project is in a challenging geology and that it encountered unprecedented delays in implementing the project on time due to several disruptions, including those caused by Covid-19 pandemic and extremely challenging weather conditions in the region.

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The discoveries in the KG-D5 block are divided into three clusters. The first production will be from Cluster-2. It must be noted that commercial production of one gas field in the cluster has already started in March 2020. The commercial crude oil production is scheduled to commence in May next year, with full completion expected before year end.

According to original plans, the production from Cluster 2 was expected to begin in November 2021. The Cluster 2 field is divided into two blocks- 2A and 2B, whose production capacities are estimated at 23.52 million metric tonnes of oil and 50.70 billion cubic metres of gas respectively, over the life of the field.