NEW DELHI: Oil and gas production from ONGC’s $5-billion showpiece project off the Andhra coast is set to rise after the state-run explorer brought on stream the fifth of the 13 wells in the deepsea KG-D5 block, a move that will boost revenue and contribute towards reducing the country’s import dependence.
The oil well was opened on Saturday, the company said in a stock exchange filing on Sunday without quantifying the production rate.”Leveraging the floating production, storage, and offloading (FPSO) vessel, ONGC has begun transporting and sale of associated gas, all the while underscoring its commitment to achieving zero gas flaring,” it said, adding the export link between the offshore facility and onland receiving terminal has also been commissioned.
Oil production from the project, envisaging 13 wells for oil and seven for gas began in January. The company plans to ramp up production by opening the wells gradually to maintain reservoir health and avoid geological surprises of water or sand ingress choking production like they did in case of Reliance Industries Ltd’s fabled KG-D6 block next door.
Peak production is expected to be 45,000 barrels of oil per day (bopd) and over 10 million standard cubic meters per day of gas. Current production is estimated at 12,000 bopd and 0.4 mmscmd of gas.