ONGC starts production from fifth oil well in Krishna Godavari Basin

Oil and Natural Gas Company (ONGC) has started production of its fifth oil well in the KG-DWN-98/2 block.

What happened: The company made the announcement in a stock exchange filing on Sunday. “On August 24, 2024, ONGC achieved a significant milestone by commencing production from its fifth oil well in Block KG-DWN-98/2 Cluster-2,” the company added in the filing.

The production was initiated with the help of the floating production, storage and offloading (FPSO) vessel, which will enable ONGC to start transportation and sale of associated gas. ONGC also underlined its commitment to reduce gas flaring to zero. In addition, the company has successfully commissioned its gas export pipeline from offshore to onshore terminal.

See also: This Redditor invested his entire salary in a railroad stock during the pandemic: Here’s how it went

In January, oil production began at four of the 13 wells at the same location. Gas production is also underway, with three of the seven wells already in operation.

Earlier this month, the company’s board approved additional investment in ONGC Petro Additions Limited (OPaL), increasing the company’s stake in OPaL to 92%. This decision was part of ONGC’s broader strategy to increase its presence in the energy sector.

In addition, ONGC Videsh, the overseas arm of ONGC, secured a 16-year extension of oil and gas production in Vietnam on August 19, 2024.

Read more: NBCC sets record date for final dividend payment of ₹0.63