ONGC marketing blunder might hit 98/2 timeline

Vol 20, PW 25 (07 Sep 17) Exploration & Production

Already delayed, ONGC is looking less and less likely to meet its June 2019 deadline to produce token gas from the $5.067bn Cluster 2 development at KG-DWN-98/2.

This time blame a major blunder by its local project team. Imagine the consternation of ONGC's marketing team when they visited Kakinada in the last week of August to discover that the local project team had forgotten to make provisions to land gas at Gadimoga and only provided for receiving gas at Odalarevu.

Under the original plan some gas was to land at Odalarevu for transportation through a GAIL pipeline and the remainder was for Gadimoga and Reliance's under-utilised East West pipeline. "From a marketing perspective it is important to receive 98/2 gas at two terminals to cater to different sets of customers," says a source.

Blame the general relaxed approach to work at ONGC for the oversight. Thankfully the project team has been jolted from its slumber to re-calibrate the production plan.

It will now land gas from two wells each at the U1 and U3 fields at Odalarevu and connect the gas wells from the balance 26 oil and gas wells to the GSPC offshore process platform at Deen Dayal from where gas will be piped to Gadimoga. ONGC's 98/2 technical consultant INTECSEA, a WorleyParsons subsidiary, has been asked to submit a report on the technical feasibility of this plan within the first week of September.