India’s top oil and gas producer ONGC on Monday said it will scale up natural gas production from a KG basin block to 2.5-3 million standard cubic meters per day by May this year and will hit the peak output sometime in 2023-24.
Oil and Natural Gas Corporation (ONGC) last year started gas production from the USD 5.07 billion KG-DWN-98/2 project in the Krishna Godavari basin, off the east coast of India.
“Gas production from Cluster-II has started as it is currently producing 320,000 standard cubic meters per day. May onwards, it will ramp up to 2.5-3 mmscmd,” ONGC Director (Finance) Subhash Kumar said in an investor call.
The output in the fiscal year beginning April (2021-22) is projected to average 3.4 mmscmd and 8.5 mmscmd in the following year.
“We are cautious in committing to any targets but 2023 or 2024 is a likely scenario for peak production,” he said.
ONGC is investing USD 5.07 billion in bringing to production a clutch of discoveries in the deep-sea block, also known as KG-D6. The block sits next to the KG-D6 discovery area of Reliance Industries Ltd and BP Plc.
The project will cumulatively produce around 25 million tonnes of oil and 45 billion cubic meters of gas with peak production of 78,000 barrels per day of oil and 15 million standard cubic meters per day.
ONGC started gas production from the project on schedule in early 2020 but the start of oil production has been delayed due to the outbreak of pandemic which disrupted global supply chains, he said.