Hyderabad, Feb 20 (PTI) Oil and Natural gas major ONGCexpects to increase its daily gas production by two millionstandard cubic meters (SCM) and 9,400 barrels of associatedoil per day initially from KG-Basin once the two offshoreblocks - G1 and GS-15 starts production from May, sourcesclose to the development said.
"ONGC has 24 blocks in KG basin. The daily output atpresent from onshore blocks stands at 840 tonnes of oil perday and 3.8 million metric standard cubic meters per day(MMSCFD) of gas.
"Increased production will have a significant effect ontop line of the company in future as it is expected to producegas and oil from these fields for the next 15 years with apeak production of 20 million SCM per day," the sources said.
Since the blocks were allotted on nomination basis, ONGCgets 60 per cent of the international price for oil and USD4.2 per BTU for gas," they said.
Drilling of two wells out of three in those two blockshas been completed and the third one is in progress. Theadditional output will be allotted to the companies which arebeing supplied gas currently, the sources said.
"According to the plan, initially two million cubicmeters oil or oil equivalent gas is to be produced from G-1and GS-15 blocks. It will continue for two years andsustainable tests will be conducted periodically. Based on thetest results, the production will be increased up to 3 millioncubic meters. The peak production will be 20 million cubicmeters over a period of time," sources told PTI.
G1 is located 28 kilometers off Amalapuram coast in waterdepths ranging from 135 to 500 meters, while GS 15, in shallowwaters, is located 5km from the coast in KG basin. (More) PTIGDK VKV