India marked a significant milestone in its journey towards self-reliance with the recent extraction of the first oil from the Krishna-Godavri (KG) Block by the Oil and Natural Gas Corporation (ONGC). ES Ranganathan, former Director at GAIL heralded it as a crucial step towards Aatmanirbhar Bharat, reflecting not only ONGC’s prowess but also the nation’s commitment to energy independence. “This monumental initiation of oil extraction from the KG deepwater block, located about 35 kilometers off the coast of Andhra Pradesh in the Bay of Bengal, marks a significant milestone. This noteworthy development arises from the ‘M’ field within the KG-DWN-98/2 block,” stated ES Ranganathan. Emphasizing the contribution of a whopping 7% to both national oil and natural gas production, ES Ranganathan expresses, “This achievement further solidifies India’s position as the fastest-growing economy in the world.”
ONGC’s deployment of state-of-the-art technologies and inventive approaches to tap into the unexplored potential of the KG Block not only reinforces India’s strides in research and development but also underscores the nation’s commitment to embracing and incorporating modern technologies. “Advanced seismic imaging, state-of-the-art drilling techniques, and efficient reservoir management are among the key factors that have led to this successful extraction. The challenges encountered in the KG-DWN-98/2 block, particularly the waxy nature of the crude, were overcome through the application of innovative ‘Pipe in Pipe’ technology—a pioneering initiative in India,” explains ES Ranganathan. This initiative exemplifies ONGC’s dedication to advancing India’s capabilities in the energy sector by leveraging cutting-edge solutions, contributing significantly to the country’s progress and prowess in research, development, and the adoption of contemporary technologies.
Complimenting Aatmanirbhar Bharat Initiative
The successful extraction from the KG Block is not merely a technical triumph but also a strategic move aligning with the Aatmanirbhar Bharat initiative. “This achievement has far-reaching economic implications, including a boost to the domestic oil and gas sector, reduced import dependency, and the creation of job opportunities in the energy industry,” opines ES Ranganathan. ONGC’s accomplishment resonates with the government’s vision of making India self-reliant in various sectors, including energy.
Furthermore, this victory is poised to have varied positive economic impacts, contributing significantly to the nation’s GDP. “Job creation in the form of employment opportunities in the oil and gas sector will not only bolster the workforce but also support local communities,” says ES Ranganathan. Additionally, the increased domestic production of oil enhances India’s energy security, providing a stable and reliable source to meet the growing energy demands of the nation. “The successful development of the ‘M’ field in phase 2 of the project is anticipated to make a substantial impact on India’s oil output, reaching an estimated peak production of 45,000 barrels per day,” mentions Ranganathan. ONGC’s commitment to the ‘Make in India’ initiative was evident in the majority of the fabrication works conducted at a modular facility in Kattupalli. The KG-DWN-98/2 block, adjacent to Reliance Industries Ltd’s (RIL) gas field at the KG-D6 block, stands as a valuable addition to ONGC’s portfolio.
ONGC’s Future Outlook and Meeting National Energy Goals
This successful venture showcases India’s enhanced capabilities in deep-sea exploration and its unwavering commitment to reducing oil imports. “With India currently importing 85% of its crude oil requirements, this domestic production is expected to result in annual savings of nearly Rs 11,000 crore,” says ES Ranganathan. This surge in domestic output is projected to significantly curtail the outflow of foreign exchange for crude oil imports, marking a crucial turning point for ONGC and positioning India as a key player in the global energy landscape.
As the flagship project remains on schedule, with the final phase and the balance of oil and gas fields set for production by mid-2024 ONGC’s inaugural oil extraction remains a pivotal moment for India’s journey towards Aatmanirbhar Bharat. This achievement not only showcases the technological prowess of ONGC but also underscores the nation’s commitment to reducing dependence on external sources for its energy needs.
(This article is part of IndiaDotCom Pvt Ltd’s Consumer Connect Initiative, a paid publication programme. IDPL claims no editorial involvement and assumes no responsibility, liability or claims for any errors or omissions in the content of the article. The IDPL Editorial team is not responsible for this content.)