Key ONGC KG Basin project to start crude output in May

Despite the delays and the cost overruns, KG-DWN-98/2 could be pivotal in turning around India’s declining oil production

ONGC, India’s largest crude oil producer, will start commercial production from its much-awaited and much-delayed KG-DWN-98/2 project in the Krishna-Godavari (KG) Basin in May. There is much fanfare and positivity about the project, which is seen as a barometer for the fortunes of India’s deepwater revival after ONGC announced ‘first oil’ from the block, situated off the coast of the Bay of Bengal, in early January. This 98/2 project is likely to increase ONGC’s oil and gas production by 11% and 15% respectively. ONGC noted that “the flagship project is on track with the final phase, with the balance oil and gas fields of the block scheduled to be put on production by mid-2024”. Peak product