State-owned oil company ONGC has initiated “first oil” production from Krishna Godavari Deep-Water Block 98/2 in the Bay of Bengal, marking a significant crude discovery in the country. Located 30 kilometers off the coast of Kakinada in the Krishna Godavari basin, the project, which began in 2016-2017, faced delays due to the COVID-19 pandemic. Union Petroleum Minister Hardeep Puri announced that four out of 26 wells are operational, and production is expected to reach 45,000 barrels per day by May or June, contributing 7% to the total crude oil production. Phase 3, targeting peak production, is set to conclude by June 2024, enhancing ONGC’s oil and gas output by 11% and 15%, respectively. India, the world’s third-largest oil importer, aims to meet its domestic demand through various global sources.
Phase 3, leading to peak oil and gas production from the basin, is already underway and likely to be over in June 2024. The 98/2 project is likely to increase ONGC’s total Oil and Gas production by 11 per cent and 15 per cent respectively.
India, the world’s third-biggest oil importer and consumer, is dependent on crude oil from various sources in the global market to meet its domestic demand.