New Delhi: Petroleum Secretary Tarun Kapoor has flagged off production from the deep-water gas well U1B of Oil and Natural Gas Corporation (ONGC) on Tuesday. The gas well, located in KG-DWN 98/2 Block Cluster-2, has an estimated peak production of 1.2 million metric standard cubic meters per day (MMSCMD). It is the deepest well of the cluster and is expected to improve India's natural gas production substantially. While stressing that there is a lot of potential in deep-water wells, the Petroleum Secretary said that the monetisation of the U1B gas well in the KG Basin holds special national significance as the government has prioritised enhancement of domestic production and reduction of oil and gas imports.
"We look forward to production enhancement, especially from ONGC, and hope for monetisation of many more such wells in the near future," said Kapoor. Dedicating the gas well to the nation, the Petroleum Secretary said that the extensive experience of ONGC in exploration and production (E&P) brings confidence in the successful operation of the deep-water gas well.
Additional Petroleum Secretary (Exploration) Amar Nath said that the beginning of commercial production from U1B well of KG-DWN 98/2 block is significant to the whole nation not only in terms of volume, but also in terms of complexity. "With this deep-water gas well, ONGC graduates to a select league of global operators," said Nath.
ONGC's Cluster-2 fields lie in the deepwater KG-DWN-98/2 Block located off the shore of the Godavari Delta on the east coast of India in water depths ranging from 300 metres to 3,200 metres. The block covers an area of 7294.6 square km of the KG basin. The Maharatna PSU began the production of gas from the Cluster-2 fields in the KG-DWN-98/2 Block earlier this year and invited offers for sale of gas from the block in April.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)