Block KG-DWN-98/2: ONGC to drill 45 development wells and set up an FPSO at cost of Rs 53,085 crore

ONGC has decided to drill a total of 45 development wells in the Krishna-Godawari deepwater block KG-DWN-98/2, at a whopping cost of Rs 53,085 crore, which also includes setting up a Floating, Production, Storage and Offloading (FPSO) system and a fixed offshore platform.
8Not only this, the E&P major also plans to set up subsea production systems (SPS) and subsea pipelines connecting to the landfall point from the existing onshore terminal for custody transfer to GAIL.
8The drilling depth of the wells is between 2,000 to 3,000 meters from the sea bed. The water depth in the area ranges from 320 m to 3100 m.
8Each well will take around 90-100 days to drill.
8As this proposed block is located in deep and ultra-deep water, a drill ship with Dynamic Positioning (DP) and specialized deep water technology tools will be used for drilling activities.
8Then again, because of extreme temperature and pressures at these depths, special drilling muds will have to be used to prevent formation of hydrates at the sea bed level and to combat dual gradients.
8The NELP-I offshore block KG-DWN-98/2 is located 22-45 kms off the coast of Godavari Delta in the east coast of India.
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Block KG-DWN-98/2: Fields would lead to production of 51.33 BCM of gas and 26.71 MMM3 of oil

While the total oil initially in place (OIIP) in the Krishna-Godawari deepwater block KG-DWN-98/2 is estimated at 106 million cubic metres (MMm3), production of only 26.71 MMm3 is envisaged during the 2019-2031, period.
8Then again, the gas initially in place (GIIP) is estimated at 69.57 BCM, of which only 51.33 BCM can be produced during the 2018-34 period.
8The offshore part of the KG Basin categorized as shallow and deep waters, covers the area of Srikakulam coast in the north to off Nellore in the south and is considered as highly prospective for hydrocarbon exploration.
8The discovery area of the block has been split into two: the Northern Discovery Area (NDA) and the Southern Discovery Area (SDA). While the NDA is spread over 3,800 sq km, the SDA covers an area of 3,494 sq km.
8The Northern Discovery Area (NDA) is further divided into two primary production areas: Cluster-1 and Cluster-2. Cluster 1 is a predominantly gas-rich area, located in the north of NDA, which includes fields D, E and G4. The nominated Godavari PML block also falls in this area. Cluster 2 area, located in the south of NDA, has both oil and gas and includes oil fields (Cluster 2A) A2, P1, M3, M1 and G-2-2. The gas fields (in Cluster 2B) are R1, U3, U1, and A1.
8Exploration efforts carried out so far in the block have led to discovery of hydrocarbons in the entire block and established the Northern Discovery Area (NDA) with significant discoveries like Annapurna (R-1), Kanakadurga (G2P1) and Padmavati (M1) and the Southern Discovery Area (SDA) with UD-1 discovery.
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Block KG-DWN-98/2: Produced gas to be evacuated to Odalarevu onshore terminal

The produced gas at the Krishna-Godawari deepwater block KG-DWN-98/2 (Cluster-1 fields) will be evacuated to the Odalarevu onshore terminal through the 20-inch, 35.5 km long pipeline for sales to GAIL.
8The gas from offshore fields -- G-1, Vasishta and S-1 -- is currently processed at the Odalarevu terminal through the existing 10� & 14� export flow line crossing the shore at the land fall point.
8The 20� & 22� gas export flow lines from the KG-DWN-98/2 fields will also be crossing the shore at the same land fall point, passing in the same corridor parallel to the existing 10� & 14� export flow lines, where in the production from 98/2 field will be processed at the facilities to be created in the existing onshore terminal.
8From here, the well fluid will be transported to the GAIL custody transfer meter point for sales through subsea pipelines (20� pipeline from Fixed Platform and 22� Pipe line from the FPSO) up to the landfall point and then further to the MEG (Methyl Ethylene Glycol) recovery plant located in the existing Vashishta and S1 plant at the Odalarevu Onshore plant.
8The produced oil from the Cluster-2 fields will be taken on to the FPSO through the 18-inch, 21.5 km dual pipeline where it will be separated and the stabilized crude will be transported through sea tankers and dehydrated gas will be evacuated on to the Fixed Platform and then to the Odalarevu terminal for sales to GAIL.
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Block KG-DWN-98/2: Costing details

The break-up of costs are as under:
8Full field development (capex): Rs 31,782 crore
8Full field development (non-capex): Rs 4,986 crore
8Drilling cost (capex): Rs 12,810 crore
8Drilling (non-capex): Rs 3,510 crore
8Total cost of the project: Rs 53,058 crore
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Block KG-DWN-98/2: More details

The following details are also carried about the project:
8Geological setting of the deepwater block
8Map showing the proposed drilling locations
8Drilling process to be adopted
8Deepwater drilling technology to be used
8Deepwater well abandonment process to be followed
8Subsea equipment, pipelines and architecture
8Offshore processing facilities
8Risks in exploratory drilling operations
8Risk mitigation measures
8Response of marine ecosystems to oil spills
8Oil spill contingency plan
8H2S protection in drilling operations
8Coordinates of the proposed locations
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