ONGC Goes Bullish On Production To Enhance Crude Oil And Gas Output

Oil and Natural Gas Corporation Ltd. (ONGC), a Public Sector Undertaking (PSU) of the Government of India, is gearing up to substantially enhance its crude oil and gas output through the development of multiple fields, said top officials.

Though the state-run oil and gas explorer has already received approval for the development of Daman project and the re-development Bombay High North project with an investment of Rs 5,219 crore and Rs 5,707 crore, respectively. The oil corporation is at an initial stage to finalise the field development plan of KG-DWN-98/2 block, better known as KG-D5 fields off the east coast of India. These fields promise substantial reserves of gas and crude oil.

According to DK Sarraf, chairman and managing director ONGC: “We are quite bullish on that (the 98/2 block). The block should produce in mid-2018. In fact, the whole of the executive committee of ONGC went to Kakinada and reviewed the project. Many actions have been taken. It is a very challenging project. By 2021, we will get gas of 20 mmscmd.”

Apart from gas reserves, the field is estimated to get 70,000-90,000 barrels of oil per day, he said.

The operations will spread over 500 sq km in the KG basin. A project management team has been set up. ONGC is yet to quantify the size of investment in this field as the Field Development Plan (FDP) is still under preparation. FDP is likely to be ready by the end of the calendar year.

“It (the project) is still on the drawing board stage. It is yet to get the board approval, yet to get government approval, yet to get the Directorate-General of Hydrocarbons (DGH) approval. But, technically, there is a proof concept that it can produce so much, it can produce that fast, but all the requisite approvals are yet to be obtained,” said Sarraf.

“Daman field is expected to produce gas by 2018. Daman and Mumbai High North should add 7 million tonnes over a period of up to 2030. Currently, Bombay High is producing 10 million tonnes a year. We will have continuous Inhibition of Return (IOR) projects to manage the decline in production at this project,” T K Sengupta, director, offshore, ONGC, said.

In the last four months, the company’s board had approved two mega projects which will add to ONGC’s output.

The Daman project is expected to kick-start production by mid-2016. This would enhance production of natural gas and condensate in the Tapti Daman Block in Arabian Sea. The cumulative production till 2034-35 is pegged at 27.67 billion cubic meters of gas and 5.01 million cubic meters (MMm3) of condensate.

The execution of the Mumbai High (North) project will ultimately lead to incremental gain of 6.997 million tonne crude oil and 5.253 billion cubic metres gas by 2030. As per internal reports, ONGC is also coming with Bombay South Development plan.
(Image: ONGC)