ONGC to soon open 5 wells in KG basin to boost gas, crude output in H2FY25

Of the six announced discoveries so far in FY25, one has been monetised so far

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State owned-Oil and Natural Gas Corporation (ONGC) plans to soon open five wells in the Krishna Godavari (KG) basin deepwater block. The upstream oil company is focused on raising production in the second half of FY25 (2024-25) by reducing the turnaround time for opening wells, sources said.  

 

"The three oil wells of A-field of deepwater block KG-DWN-98/2 were opened on 30th October 2024, thereby enhancing total oil production to about 25,000 barrels of oil per day from eight flowing wells of cluster-II. Remaining five oil wells are planned to be opened shortly," ONGC said in an exchange filing as part of its second quarter (July-September) results earlier this week.  

 

ONGC began production in the block, located 35 km off the coast of Andhra Pradesh in the Bay of Bengal, in January 2024. Total projected peak gas production and oil production from the project is about 10 million metric standard cubic metres per day (MMSCMD) of natural gas, and 45,000 barrels of oil a day.  

 

Sources said the measures to quickly begin production from exploratory oil wells are part of the company's plans to reverse de-growth in gas production and quickly shore up crude output. "Some of it has already borne fruit. Case in point, standalone crude oil production excluding condensate rose to 4.57 million metric tonnes (MMT) during Q2, registering a growth of 0.7 per cent over the corresponding quarter of FY24," an official source said.  

 

Meanwhile, ONGC's gas production was up 0.3 per cent in September as compared to the same month last year, he added.  

 

Sources added that of the six discoveries notified by ONGC in FY25, one has already been monetised. In the second quarter of the current fiscal, ONGC notified a discovery in the ultra-deepwater area of Cauvery Offshore, off the coast of Tamil Nadu. Named 'Chola', the success of the well has led to the discovery of a second well called 'Kamakshi#1' in the same block.