ONGC’s Major Deepwater Project on India’s East Coast Moves Forward with New Contract
The Oil and Natural Gas Corporation (ONGC) has made significant progress in its deepwater development project on the East Coast of India. This project, known as the KG-DWN-98/2 (Cluster-2) Project, involves a major work package called SPS + SURF (Subsea Production System + Subsea Umbilical, Risers & Flowlines). On October 1, ONGC awarded this package to a consortium of BHGE, McDermott, and L&T Hydrocarbon for Rs. 11,740.86 Crore.
This tender is one of the largest integrated SPS + SURF tenders awarded globally in recent years. By integrating the previously separate SPS and SURF work packages, ONGC aims to reduce interface issues, optimizing both time and cost. The Cluster-2 development, with water depths ranging from 350m to 1,400m, is a highly capital-intensive and technologically challenging project.
The project is expected to reach a peak gas production rate of about 16 MMSCMD and a peak oil production rate of 80,000 BPD. ONGC plans to start gas production by December 2019, oil production by March 2021, and complete the project by August 2021. This initiative supports Prime Minister Narendra Modi’s vision to reduce India’s energy import dependency by 10% by 2022.
Doubts Revealed
ONGC -: ONGC stands for Oil and Natural Gas Corporation. It is a company in India that explores and produces oil and natural gas.
Deepwater Project -: A deepwater project involves exploring and extracting oil and gas from deep under the sea. It requires special technology and equipment because it is done in very deep parts of the ocean.
East Coast of India -: The East Coast of India is the eastern side of India that faces the Bay of Bengal. It includes states like Tamil Nadu, Andhra Pradesh, and Odisha.
Consortium -: A consortium is a group of companies that come together to work on a big project. In this case, BHGE, McDermott, and L&T Hydrocarbon are working together.
BHGE -: BHGE stands for Baker Hughes, a GE company. It provides services and equipment for oil and gas extraction.
McDermott -: McDermott is a company that provides engineering and construction services for the energy industry.
L&T Hydrocarbon -: L&T Hydrocarbon is a part of Larsen & Toubro, an Indian company that provides services for oil and gas projects.
KG-DWN-98/2 (Cluster-2) -: KG-DWN-98/2 (Cluster-2) is the name of a specific area in the sea where ONGC is working to extract oil and gas. It is located in the Krishna-Godavari Basin off the East Coast of India.
SPS + SURF -: SPS stands for Subsea Production System, and SURF stands for Subsea Umbilicals, Risers, and Flowlines. These are technologies used to extract oil and gas from under the sea.
Rs. 11,740.86 Crore -: Rs. 11,740.86 Crore is a large amount of money, specifically 117,408.6 million rupees. It is the cost of the work package for the project.
Interface issues -: Interface issues are problems that can happen when different parts of a project don’t work well together. By reducing these issues, the project can be completed faster and cheaper.
Energy goals -: India’s energy goals are plans to produce more energy to meet the needs of its people and industries. This includes using more oil and gas from within the country.
