ONGC admits it will miss 98/2 completion dates

Vol 20, PW 16 (04 May 17) Exploration & Production
     

If there was any doubt before, there is no longer: ONGC will miss an oil ministry deadline to extract first gas by June 2019 and first oil by March 2020 from its showcase deepwater KG-DWN-98/2 development.

Close scrutiny reveals ONGC has unwittingly admitted this in detailed completion schedules to contractors in an estimated $2bn tender released on April 20 for the Subsea Production System and Subsea Umbilicals, Risers and Flowlines (SPURF) contract - the most challenging part of the $5.06bn development. ONGC has set June 30 as the bid deadline date and wants the "total gas system" ready within 26 months while the "total oil system" must be completed within 38 months.

Even if the bid deadline is not extended - unlikely - ONGC won't be able to award a contract before August 1, 2017. Fast-forward and this means the gas system will be ready only 26 months later or by October 2019 not June 2019.

Similarly first oil will be produced around October 2020 not March 2020. Some say even this is too optimistic! Not surprising when eastern offshore work can take place only between January 1 and April 30, as the tender bluntly admits: "Monsoon storms and high seas are of such frequency and intensity that construction work cannot be scheduled." If you're looking for a credible production start date consider May 2020 for first gas and May 2021 for first oil.