ONGC’s KG-DWN-98/2 Project to Boost India’s Oil and Gas Production

At the flag-off ceremony in Begusarai, Bihar, Oil and Natural Gas Corporation (ONGC) announced that its KG-DWN-98/2 project will increase India’s oil and gas production by 7 per cent at its peak. The project, located in Andhra offshore, has been producing 12,000-12,500 barrels of oil per day using a floating production and storage offloading (FPSO) facility. The FPSO, operated by Shapoorji Pallonji Energy Private Limited, transfers the oil to a ship for transportation to a refinery on the coast for processing.

Shapoorji Pallonji’s FPSO Armada Sterling V, the largest floating installation in the Indian subcontinent, achieved its first oil on January 7, 2024. The FPSO has a processing capacity of over 50,000 barrels of oil per day and 3 million standard cubic meters per day of gas, with a storage capacity of 700,000 barrels. The successful demonstration of the FPSO systems has positioned India on the global stage in terms of robustness and reliability in oil production.

Prime Minister also dedicated ONGC’s Mumbai High North Oil Field Redevelopment Phase IV, Heera Redevelopment Phase-III, and phase-II development in Krishna Godavari Nagayalanka NELP Block during the event. With an investment of over Rs 41,000 crore, the KG-DWN 98/2 Deepwater Oil Field M in Krishna Godavari Basin is a technologically complex project. The project is expected to reach a peak gas production of 10 MMSCMD and oil production of 45,000 BOPD.

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