ONGC expects to increase its daily gas production by two million standard cubic meters (SCM) and 9,400 barrels of associated oil per day initially from KG—Basin once the two offshore blocks — G1 and GS—15 starts production from May, sources close to the development said.
“ONGC has 24 blocks in KG basin. The daily output at present from onshore blocks stands at 840 tonnes of oil per day and 3.8 million metric standard cubic meters per day (MMSCFD) of gas.
“Increased production will have a significant effect on top line of the company in future as it is expected to produce gas and oil from these fields for the next 15 years with a peak production of 20 million SCM per day,” the sources said.
Since the blocks were allotted on nomination basis, ONGC gets 60 per cent of the international price for oil and $ 4.2 per BTU for gas,” they said.
Drilling of two wells out of three in those two blocks has been completed and the third one is in progress. The additional output will be allotted to the companies which are being supplied gas currently, the sources said.
“According to the plan, initially two million cubic meters oil or oil equivalent gas is to be produced from G—1 and GS—15 blocks. It will continue for two years and sustainable tests will be conducted periodically. Based on the test results, the production will be increased up to 3 million cubic meters. The peak production will be 20 million cubic meters over a period of time,” sources told PTI.
G1 is located 28 kilometres off Amalapuram coast in water depths ranging from 135 to 500 meters, while GS 15, in shallow waters, is located 5km from the coast in KG basin.