In a significant milestone for Indias oil industry, state-owned ONGC has successfully commenced first oil production from Krishna Godavari Deep-Water Block 98/2 in the Bay of Bengal. This marks a momentous crude discovery just 30 kilometres off the coast of Kakinada in the Krishna Godavari basin. Hardeep Puri Announces SuccessUnion Petroleum Minister Hardeep Puri shared the exciting news with the nation, stating that the extraction of the first oil took place yesterday. Despite initial project commencement in 2016-2017, the process faced delays due to the impact of the Covid pandemic.Operational Wells and Production ProjectionsPuri revealed that out of the 26 wells planned for the project, four are already operational. Anticipating robust growth, he expects the production to reach 45,000 barrels per day by May or June. This accomplishment will contribute 7% to Indias total crude oil production.Phase 3 and Increased ProductionThe ongoing Phase 3 of the project aims to achieve peak oil and gas production from the Krishna Godavari basin, with an estimated completion date in June 2024. The 98/2 project is forecasted to boost ONGCs total oil and gas production by 11% and 15%, respectively.Indias Oil Dependency and Global ImpactIndia, ranking as the worlds third-largest oil importer and consumer, heavily relies on crude oil from global sources to meet its domestic demand. ONGCs successful oil extraction contributes significantly to Indias self-sufficiency in oil production.Future Prospects and Project ImpactThe commencement of first oil extraction from Krishna Godavari Deep-Water Block 98/2 positions ONGC for increased production capacity, providing a positive outlook for Indias oil and gas sector. The success of this project aligns with the countrys aspirations for energy security and reduced dependency on international markets.
