India’s Oil and Natural Gas Corporation’s (ONGC) has achieved early first gas from the $5bn KG-DWN-98/2 project in Krishna Godavari basin offshore India.

The production of first gas from the offshore Indian project was announced by McDermott International, which alongside Baker Hughes, a GE company (BHGE), and L&T Hydrocarbon Engineering (LTHE) won a $1.6bn subsea contract in October 2018.

Considered to be the largest subsea project in India, block 98/2 is expected to have a total peak gas production rate of around 16 million metric standard cubic meter per day (MMSCMD), with peak oil production rate estimated to be 80,000 barrels per day (BPD).

Under its contract, McDermott has been responsible for the integrated subsea package which involves the supply of all subsea production systems (SPS). Included in these are 26 deepwater trees, and the installation of subsea umbilicals, risers, and flowlines (SURF) at a water depth range of 0-1,300m.

According to McDermott, early first gas from the KG-DWN-98/2 project was drawn from a single well tied back to the existing Vashishta facility. At 1,300m, the first well of the project which was drilled for drawing early first gas is the deepest water depth to be opened by ONGC, said McDermott.

McDermott management comments on the KG-DWN-98/2 project

McDermott Asia Pacific senior vice president Ian Prescott said: “To deliver this accelerated schedule is an exceptional achievement and testament to the benefits of the collaborative commercial model put forward to ONGC. Production from a deepwater well in less than 14 months is an outstanding achievement for the deepwater exploration and production industry.

“In line with the ‘Made in India’ approach for the 98/2 project, a substantial amount of engineering and project management has been led from McDermott’s operations in Chennai. This local approach is a new initiative in the deepwater subsea space for McDermott.”

A total of 34 wells are planned to be drilled as part of the KG-DWN-98/2 project, which include 15 oil producing wells, eight gas producing wells, and 11 water injecting wells.