ONGC to start oil and gas output from KG basin block

The Oil and Natural Gas Corporation (ONGC) is set to start commercial crude oil production from its prolific deepwater block KG-DWN-98/2 in May 2023 and gas production in May 2024, after numerous delays. ONGC plans to start oil production from the block with volumes of 10,000 to 12,000 barrels per day (bpd), which will be ramped up to the peak production level of 45,000 bpd in two to three months. This peak production estimate is lower than the earlier estimate of over 77,000 bpd. Along with crude oil, around 2 mmscmd of natural gas will also flow, but commercial production is likely to begin only in May 2024. The peak gas production from the block is estimated to be around 10 mmscmd, down from the earlier estimate of 12.75 mmscmd.