ONGC asks INTECSEA to re-work 98/2 options

Vol 20, PW 18 (01 Jun 17) Exploration & Production

It is unlikely to happen but ONGC is still clinging to hopes it can produce at least a token amount of gas from KG-DWN-98/2 by June 2019 so the ruling BJP can use it to campaign for the May 2019 general elections.

ONGC wants to do this by including production from just four gas wells in Phase-I of the $5.06bn development at the eastern offshore deepwater block: two wells each at fields U1 and U3 within 98/2. Phase-II will then include production from 30 additional oil, gas and water injection wells.

ONGC has asked WorleyParsons subsidiary INTECSEA to work on the feasibility of three options: connect these four wells to the upcoming S1 and Vashishta eastern offshore field production facilities; flow these four wells independently through a proposed control and process platform at 98/2; or connect them to the established and grossly underused offshore GSPC platform at the shallow water Deen Dayal West field at nearby KG-OSN-2001/3. "INTECSEA needs to work out which of these three options results in the earliest production from 98/2," says a source.

"ONGC has made it clear to INTECSEA that June 2019 (for first gas) is non-negotiable." INTECSEA has been asked to submit a feasibility report by May 31 - virtually impossible because the original development plan must be completely redrawn. Expect to see the report by end-June.

LNG Summit