Is ONGC Investing Rs 4,600 Crore to Elevate Oil & Gas Production from Eastern Offshore Fields?

New Delhi, Aug 11 (NationPress) Oil and Natural Gas Corporation (ONGC) is set to allocate over Rs 4,600 crore for drilling additional wells aimed at enhancing production from its identified fields. This investment will also support the installation of an offshore pipeline and the establishment of a gas processing facility in the coastal region of Konaseema district, Andhra Pradesh.

The state-owned upstream oil behemoth has requested the Ministry of Environment and Forests for project approval, which includes a mandate to conduct a biodiversity assessment to understand the implications of drilling activities and to formulate an environmental restoration action plan, as per a senior official's statement.

The ONGC operation is situated approximately 35 kilometers offshore Andhra Pradesh, at water depths varying from 300 to 3,200 meters. The oil and gas discoveries within this block are organized into three clusters— Clusters 1, 2, and 3, covering a total area of 697 sq km.

Recently, ONGC has ramped up production from its flagship deep-sea initiative in the Krishna Godavari basin, which is expected to significantly boost crude oil and natural gas output.

The company aims to enhance production in the latter half of FY25 (2024-25) by minimizing the turnaround time for well openings, according to the official.

On October 30, 2024, ONGC successfully opened three oil wells in the A-field of the deepwater block KG-DWN-98/2, increasing total oil production to approximately 25,000 barrels per day from eight operational wells in Cluster-II. Plans to open the remaining five oil wells are underway, as stated in a recent exchange filing.

In a noteworthy advancement, ONGC, in collaboration with Oil India Ltd (OIL), has initiated a bold exploration campaign in the Andaman ultra-deepwater region. This marks the first time drilling operations are targeting depths reaching up to 5,000 meters. A wildcat well, ANDW-7, drilled in a carbonate play in the East Andaman Back Arc area, has provided promising geological data, including traces of light crude and condensate.

These findings confirm, for the first time, an active thermogenic petroleum system in the region, which is comparable to those in Myanmar and North Sumatra. While commercial reserves are yet to be confirmed, this exploratory campaign has validated the presence of a functioning petroleum system and sets the stage for targeted exploration, as noted by Minister of Petroleum and Natural Gas Hardeep Singh Puri during a parliamentary discussion.

ONGC has made hydrocarbon discoveries across 20 blocks, with an estimated reserve of 75 million metric tonnes of oil equivalent (MMTOE). Meanwhile, Oil India Ltd has reported seven oil and gas discoveries over the past four years, with reserves estimated at 9.8 million barrels of oil and 2,706.3 million standard cubic meters of gas, according to the minister.