Shapoorji Pallonji Oil & Gas is set to begin hydrocarbon production

Shapoorji Pallonji Oil & Gas Private Limited (SP O&G), India’s leading specialist in floating production storage and offloading units (FPSOs), has achieved a significant milestone of “hook-up” for its FPSO Armada Sterling V at KG 98/2 block, offshore Kakinada.

FPSO Armada Sterling V reached Cluster 2 of ONGC’s KG 98/2 block on the east coast of India on December 15, 2022, having left from Sembcorp Marine shipyard, Singapore.

On December 28, 2022, India’s largest FPSO was safely hooked up. It is now prepared to receive hydrocarbons from the field for processing. Despite challenges due to inclement weather, hook-up was achieved in one of the fastest lead times.

The FPSO has a processing capacity of about 60,000 bpd of liquid and 3 mmscmd of gas. It is owned by SP O&G’s 70:30 joint venture with Malaysia’s Bumi Armada group. This is Shapoorji Pallonji’s fourth FPSO, and its third FPSO for Indian waters.

With the successful conclusion of this hook-up activity, SP O&G has achieved a critical milestone and is now ready to commence commissioning of the FPSO. ONGC is expediting its sub-sea activities and is expected to provide hydrocarbons soon, enabling the FPSO to achieve “first oil” and commence production for the nation.

The FPSO’s commissioning readiness has come at a critical point for the nation, when it is witnessing skyrocketing oil and gas prices. The FPSO’s early commissioning will assist India in reducing its energy bill at a time when this is most in need. The project has the potential of reducing India’s annual import bill by $ 4.5 billion and will be a crucial step forward in securing India’s energy security.