The KG Gas Field of ONGC to Scale Peak Output in July
ONGC (Oil and Natural Gas Corporation) expects that its Vashishta gas field located in KG Basin to achieve an output of around 5 million cubic meters in a day by July, 2017.
The S1 and Vashishta gas fields which are located in KG (Krishna-Godavari) offshore basin started their operations in September, 2016. With $751.65 million investment, these fields were developed under greenfield deepwater development project.
With an estimated production of 9.56 bcm (billion cubic meters) over 9 years, the peak production is expected to reach 3.55 million metric standard cubic meters in a day for the Vashishta field. Similarly, for the S1 field, the estimated production is estimated to reach 6.22 bcm within 8 years and the peak production is expected to reach 2.2 mmscmd within the first 5 years.
Four wells are being dug by ONGC for S1 and Vashishta field development and the gas is being shipped through to the onshore terminal at Odalarevu in Andhra Pradesh through a sub-seal pipeline. The water depth of Vashishta field lies between five hundred meters to seven hundred meters whereas the water depth of S1 field lies between two hundred and fifty meters to six hundred meters.
The Vashishta field happens to be the first gas field in the country to get premium gas price according to a statement by an ONGC official. From October’16 to March’17, the premium price was cut to $ 5.3/mmBtu depending on benchmark rates within gas surplus economies. Regular gas price rate also declined to $ 2.5/mmBtu.
According to a statement by an ONGC official, there is ample pricing and marketing freedom and the incremental production will be auctioned.
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