State owned ONGC is likely to spend about Rs 65,000 crore over the next three years to ramp up production and development of its fields, including those in the KG Basin.
Production will be ramped up in 13 field development projects and three enhanced oil recovery/improved oil recovery (EOR/IOR) projects, a research report of Motilal Oswal said.
“The 13 field development projects are expected to generate around 40.9 million tonnes (mt) of oil, 8.3 mt of condensate and about 105.5 billion cubic metres (bcm) of gas over the next three to four years, while the three IOR/EOR redevelopment projects will add around 13.7mt of oil and about 8.7bcm of gas,” the report said.
ONGC officials said the PSU plans to start producing gas from its Krishna-Godavari basin off the east coast this December and is likely to reach peak production level in 2022.
The fields are showing encouraging results. “The initial production from KG-DWN-98/2 will be 4-5 million standard cubic metres per day (mscmd) with peak rate at 17mscmd,” the report said.
The first gas from the KG-DWN-98/2 project, which is next to the Reliance Industries block in the KG basin, is targeted for end-2019 and peak output is envisaged at 16.56 mscmd by 2022.
“The company guides that its standalone total gas production may rise to around 43bcm by financial year 2021-22 from around 27.4bcm in FY19, primarily led by KGDWN-98/2,” the report said.
The oil deposits in Cluster 2A hold estimated in-place reserves of 94.26mt of crude oil and 21.75bcm of associated gas, while Cluster 2B has estimated in-place reserves of free gas of 51.98bcm, officials said.