PM Modi Applauds ONGC's Milestone In Krishna-Godavari Deepwater Block
Prime Minister Narendra Modi lauded the Oil and Natural Gas Corporation (ONGC) on Monday for achieving the production of first oil from its Krishna-Godavari deepwater block.
With an estimated peak production of 45,000 barrels of oil per day, this achievement marks a significant milestone in India's energy journey, contributing to the government's Aatmanirbhar Bharat mission.
In a post on X, PM Modi expressed, "This is a remarkable step in India’s energy journey and boosts our mission for an Aatmanirbhar Bharat," highlighting the positive impact it will have on the country's economy.
This is a remarkable step in India’s energy journey and boosts our mission for an Aatmanirbhar Bharat. It will have several benefits for our economy as well. https://t.co/yaW7xozVQx
— Narendra Modi (@narendramodi) January 8, 2024
The deepwater KG-DWN-98/2 block, located off the coast of the Bay of Bengal, has commenced its first oil production, a feat described by Oil Minister Hardeep Singh Puri as a breakthrough in a "complex and difficult" venture. Alongside oil, the block is expected to yield over 10 million cubic metres of gas per day.
Puri stated, “This project is expected to add 7 per cent to the current national oil production and 7 per cent to national natural gas production.” He emphasised that the achievement aligns with India's economic growth, asserting, “As India powers ahead as the fastest growing economy under the leadership of PM @NarendraModiJi, our energy production is also set to rise from the deepest frontiers of #KrishnaGodavari.”
ONGC's announcement highlighted the completion of Phase 2 with the commencement of oil production from the 'M' field of KG-DWN-98/2. The project is anticipated to increase ONGC’s total oil and gas production by 11 per cent and 15 per cent, respectively. Facing technological and COVID-related challenges, ONGC successfully executed Phase 1 in March 2020, achieving gas production in a record time of 10 months.
In tackling the waxy nature of the crude, ONGC employed innovative 'Pipe in Pipe' technology, a first-of-its-kind initiative in India. The company emphasised its commitment to 'Make in India,' as the majority of fabrication works were carried out domestically at the modular fabrication facility at Kattupalli.
The final phase of the project is on track, with the remaining oil and gas fields of the block scheduled to be put into production by mid-2024.
Peak production is expected to reach 45,000 barrels of oil per day and over 10 million metric standard cubic metres per day of gas. The KG-DWN-98/2 block is situated adjacent to Reliance Industries Ltd's (RIL) gas field in the KG-D6 block.
Initially, Cairn Energy had acquired the deepwater block in 2000, later selling 90 per cent to ONGC in 2005, and ONGC acquired the remaining 10 per cent in 2012.
