Page 7 - AsianOil Week 02 2022

AsianOil SOUTH ASIA AsianOil

ONGC reportedly facing new delays at

KG-DWN-98/2 deepwater development

PROJECTS & INDIA’S Oil and Natural Gas Corp. (ONGC) followed by overall project completion by May
COMPANIES is reportedly facing more delays at its Cluster-2 2023.
fields in the Krishna Godavari (KG) Basin’s deep- One of the sources was reported as saying the
water KG-DWN-98/2 development. The $5bn CPP and living quarters facility was the project
development, which is also known as KG-D5, is element facing the most challenges. The facility is
the largest subsea project in India. due to be supplied by India’s Afcons and Malay-
Citing sources familiar with the matter, sia’s Sapura Energy and it has been suggested that
Upstream reported last week that the project the latter’s financial difficulties are exacerbating
was set to be delayed by several months. This is the delays.
the result of four key elements running behind Cluster-2 was initially expected to produce
schedule. These are reported to be the supply of a first gas in 2019, followed by first oil in 2020.
central processing platform (CPP), an integrated Indian media previously reported that defer-
subsea production system and subsea umbilical ments in awarding contracts for the project had
riser and flowlines, a leased floating produc- resulted in start-up dates being pushed back even
tion, storage and offloading (FPSO) vessel and before the onset of the coronavirus (COVID-19)
onshore processing facilities. pandemic, which further added to delays at the
The delays to these elements have been development.
attributed to coronavirus (COVID-19) restric- Nonetheless, a gas well entered production at
tions, engineering changes and challenges with the KG-DWN-98/2 block in 2020, followed by a
project execution. ONGC had previously been second gas well in August 2021.
expected to begin production from the Cluster-2 Block KG-DWN-98/2 is anticipated to have
project in the April 2021-March 2022 financial total peak gas production of around 16mn cubic
year. However, according to Upstream, the com- metres per day and peak oil output of 80,000 bar-
pany now anticipates first oil in December 2022, rels per day (bpd).™

SOUTHEAST ASIA

Pertamina makes gas discovery at Mahakam

PROJECTS & A subsidiary of Indonesia’s Pertamina has made 660,000 bpd of oil in 2021, Tasrif told a con-
COMPANIES a natural gas discovery in the Mahakam block ference on January 12, falling just short of a
offshore East Kalimantan. Pertamina Hulu target of 668,000 bpd and declining 6.6% from
Mahakam said the Manapatu 1x exploration well 707,000 bpd in 2020.
had struck 207 of net oil and gas pay at a depth Gas lifting also declined slightly year on year,
of 3,776 metres. reaching 982,000 barrels of oil equivalent per
The discovery was made in December, and day in 2021, compared with 983,000 boepd the
the first drill stem test was carried out on January previous year.
3, with the well flowing 15mn cubic feet (424,800 “If you look at the downward trend, it is
metres) per day of gas and 500 barrels per day indeed declining because we don’t have new
(bpd) of condensate. sources,” Tasrif said. “Our wells are old. There is
More flow tests will be carried out to assess limited output”.
the full potential of the well, which would be tied This year, the country is aiming to raise oil
into existing production infrastructure if Per- lifting to 703,000 bpd, and Tasrif said higher
tamina goes ahead with its development. The demand and newly discovered oil reserves were
well is targeting the Mentawir and Tanjung Batu expected to help increase lifting.
formations. “We have a roadmap to optimise existing
The find is a welcome one for Indonesia as fields, [increase] oil and gas recovery with
the country struggles to turn around declin- enhanced oil recovery [EOR], and massive new
ing oil and gas production and attract new exploration,” he said.
investors. This week, Indonesian Minister for Indonesia is targeting 1mn bpd of oil produc-
Energy and Mineral Resources Arifin Tasrif tion and 12bn cubic feet (340mn cubic metres)
said the country’s ready-to-sell oil output had per day of gas by 2030, and recently estimated
fallen for a fifth straight year in 2021, narrowly that $187bn of investment would be required to
missing its target for the year. Indonesia lifted meet these goals.™

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