Sarraf wants KG gas production 'fast-tracked'
ONGC chairman DK Sarraf wants first production from the KG-DWN-98/2 deepwater block to begin by the time he retires in September 2017, or soon after.
ONGC's board travelled to Kakinada in Andhra Pradesh on June 19 and 20 to see how production can be fast-tracked. A source at ONGC's KG basin asset says Sarraf has set a deadline of March 31, 2018 to begin production.
"I don't want even a single day's delay beyond this date," Sarraf confirms to PETROWATCH. "I want this block to begin production in my tenure or at least be close to starting by the time I leave.
” When told some managers at the KG asset are saying production can only begin in 2021, Sarraf says he is confident his team can shave three years off this timeframe, especially with the addition of Ashok Varma, who joined ONGC’s board as director onshore in June. Varma was previously KG offshore asset manager.
“Now the executive committee has somebody who knows every detail of the project,” adds Sarraf. “We can always depend on his knowledge and I can always ask him to join meetings to speed up decision-making.
” ONGC’s original target to begin production was 2017 and it has set aside $7bn for the development project. Initial production is expected to be 5m cm/d, rising to 30m cm/d in two to four years.