Gas output at ONGC’s KG basin block may fall 20%

Oil and Natural Gas Corp. (ONGC) may produce as much as 20% less natural gas than its original estimate from its largest block in the Krishna Godavari (KG) basin because of higher reservoir complexity and execution challenges

The management of the state-run explorer has cut its guidance for the KG-DWN-98/2 block to 32-34 billion cubic metres by FY24E from an earlier expectation of 38-40 billion cubic metres, suggesting higher reservoir complexity and execution challenges from this large asset, said a company official, requesting anonymity.

The KG project in the Bay of Bengal is one of ONGC’s biggest and most ambitious projects, wherein it aims to invest up to $5 billion during the entire lifecycle of the asset. ONGC did not respond to queries emailed on Saturday till press time.