ONGC to produce gas from KG basin by 2018

INDIA's largest state-run explorer Oil and Natural Gas Corp (ONGC) is targeting to start producing natural gas from its Krishna Godavari basin KG-D5 block in mid-2018. It was stated by petroleum minister Dharmendra Pradhan in Parliament...

on December 1. This is likely to boost the nation's gas production capability.

"Efforts to achieve first gas by mid-2018 and first oil by mid-2019 from above clusters are ongoing. Parallel execution of number of project activities are in progress to ensure fast track development of these fields," Pradhan told the Lok Sabha in a written reply.

"The block (KG-D5) is divided into the Northern Discovery Area (NDA) and Southern Discovery Area (SDA). Estimated reserves of NDA are 121 million tons of oil in place and 78 billion cubic metre (bcm) of initial gas in place and that of SDA are 80.9 bcm of intial gas in place," he said.

The Maharatna PSU plans to develop the discoveries in the block in three clusters -- 14.5 million standard cubic meters per day of gas for 15 years from Cluster-1 and G-4 find in a neighbouring area.

Cluster-2A comprises of oil finds in NDA. Cluster 2B, which is made up of four gas finds in NDA, envisages a peak production of 12.5 million metric square cubic metres a day (mmscmd), with cumulative production of 32.5 bcm of gas in 14 years.

KG-D5 will produce up to 90,000 barrels per day (4.5 million tonnes per annum) making it the largest from any field on the eastern offshore. It will produce 17 million standard cubic metres per day of gas of four gas finds in NDA, envisages a peak production of 12.5 million metric square cubic metres a day (mmscmd), with cumulative production of 32.5 bcm of gas in 14 years.

"It is envisaged to drill 14 oil wells and 10 water injectors in this cluster and is expected to produce approx. 31.5 million tons of oil in 15 years with peak production rate of 91,000

barrels of oil per day," Pradhan added.

"Considering the water depth (2,400-3,200 metres) and the constrained techno-economic solutions, execution of this Cluster-3 is presently not being pursued for development. Scouting for suitable technology/solution for field development is in progress," the minister said.

KG-D5 will produce up to 90,000 barrels per day (4.5 million tonnes per annum) making it the largest from any field on the eastern offshore. It will produce 17 million standard cubic metres per day of gas.

The KG-D5 block, with its 11 oil and gas discoveries and awarded to ONGC in the first round of auctions under the New Exploration Licensing Policy (NELP) in 2000, is still at least four years away from the first output.

A committee headed by the director general of hydrocarbons (DGH) will submit, by December 24, its inquiry report on the delay in developing gas discoveries in KG-D5 block, Pradhan told Lok Sabha in a written reply last week.

The inquiry committee comprises of the director general, hydrocarbons, the advisor to the internal finance division, as well as the deputy secretary (exploration) of the petroleum ministry.

ONGC, a Maharatna PSU and India’s energy anchor is engaged in exploration and production (E&P) of oil and gas in India and abroad. A global energy major, ONGC contributes 69 percent of India’s domestic oil production and 62 percent of natural gas production.