India's First Crude Find: Oil Minister Announces Oil Recovery 30 Kilometers Off Kakinada Coast

India's first crude find, Krishna Godavari Deep-Water Block 98/2 in the Bay of Bengal, has marked the commencement of "first oil" production by the state-owned oil giant ONGC in a significant breakthrough for our energy sector. The project, initially set in motion in 2016, faced delays attributed to the global pandemic but has now reached a conclusion.

Hardeep Puri, the Union Minister of Petroleum, shared the news with reporters, stating that the extraction of the first oil from the Krishna Godavari basin, situated thirty kilometres off the coast of Kakinada, occurred on January 7, 2024. He highlighted that while the project officially commenced in 2016 and was technically completed in 2017, the unforeseen disruptions caused by the COVID-19 pandemic significantly slowed down progress.

Puri stated, "I'm happy to let everyone know that yesterday marked the extraction of the first oil (by ONGC). In May or June, we aim to generate 45,000 barrels per day, representing 7% of our entire crude oil production and 7% of our gas output. Not only will we have gas soon, but we also hope to have it by then."

Currently, four out of the 26 wells in the Krishna Godavari Deep-Water Block 98/2 are operational, contributing to the early phase of oil production. The Union Minister anticipates that by May or June, the production is set to reach an impressive 45,000 barrels per day, making up 7% of India's total crude oil production.

The ongoing Phase 3 of the project, aiming to achieve the peak production of gas and oil in the basin, is already in progress and is expected to conclude in June 2024. ONGC estimates that the completion of the entire 98/2 project will lead to an 11% increase in overall gas production and a substantial 15% rise in oil output.

ONGC, in a post on X, confirmed the achievement, stating, "ONGC commenced its 'First Oil flow to FPSO,' from Krishna Godavari Deep-Water Block 98/2 (in Bay of Bengal) on 7 January 2024, nearing completion of Phase-2 of the project. Phase-3, leading to peak Oil and Gas production, is already underway and likely to be over in June 2024. The 98/2 project is likely to increase ONGC's total Oil and Gas production by 11 percent and 15 percent, respectively."

India, being the third-largest oil consumer and importer globally, heavily relies on the global market for crude oil to meet its domestic needs. The successful extraction of oil from Krishna Godavari Deep-Water Block 98/2 is a significant step towards reducing this dependency.

The achievement at Krishna Godavari Deep-Water Block 98/2 signifies a triumph for ONGC as well as a crucial advancement for India's energy security and economic growth. The project is poised to contribute substantially to the nation's overall oil and gas production.