Oil and Natural Gas Corporation plans to invest over Rs 4.6 billion to boost oil and gas production from its discovered fields off the eastern coast of India. The investment will be directed towards drilling additional wells, laying an offshore pipeline, and establishing a gas processing facility in the Konaseema district of Andhra Pradesh. The company has sought approval from the Ministry of Environment and Forests and has been instructed to conduct a biodiversity assessment and prepare an environmental restoration action plan before proceeding.
The ONGC field is located 35 kilometres off the Andhra Pradesh coast in water depths ranging from 300 to 3,200 metres. The oil and gas discoveries in the block are divided into three clusters—Cluster 1, Cluster 2, and Cluster 3—spanning an area of 697 square kilometres. ONGC has recently increased production from its flagship deep-sea project in the Krishna Godavari basin, which is expected to contribute significantly to the country’s crude oil and natural gas output.
The company is focused on ramping up production in the second half of FY25 by reducing turnaround time for opening wells. On October 30, 2024, three oil wells from the A-field of the deepwater KG-DWN-98/2 block were opened, raising total oil production to approximately 25,000 barrels per day from eight flowing wells in Cluster II. The remaining five wells are scheduled to be opened shortly.
In a parallel development, ONGC and Oil India Ltd have launched an ambitious exploration campaign in the Andaman ultra-deepwater region. For the first time, drilling operations are targeting depths of up to 5,000 metres. One wildcat well, ANDW-7, drilled in a carbonate play in the East Andaman Back Arc region, has yielded promising geological indicators. These include traces of light crude and condensate in cutting samples, and heavy hydrocarbons such as C-5 neo-pentane in trip gases.
These findings confirm the presence of an active thermogenic petroleum system in the region, comparable to systems in Myanmar and North Sumatra. While commercial reserves are yet to be established, the campaign has validated the existence of a working petroleum system and laid the groundwork for focused exploration in the area, according to Minister of Petroleum and Natural Gas Hardeep Singh Puri.
ONGC has made hydrocarbon discoveries in 20 blocks, with estimated reserves of 75 million metric tonnes of oil equivalent. Oil India Ltd has made seven discoveries over the past four years, with reserves estimated at 9.8 million barrels of oil and 2,706.3 million standard cubic meters of gas.
