India’s Oil & Natural Gas Corporation (ONGC) is pushing to complete its long-delayed Cluster-2 deepwater project by mid-2025, after years of setbacks caused by COVID-19, shifting government policies, and execution hurdles.
A $5 Billion Bet on the Krishna Godavari Basin
The Cluster-2 project, located in Block KG-DWN-98/2 in the Krishna Godavari basin, is a cornerstone of ONGC’s plan to revive production on India’s east coast. With many of its domestic offshore fields declining, the project is critical to sustaining oil and gas output.
Gas Wells Yet to Come Online
While ONGC started oil production from Cluster-2 in January 2023 via an FPSO unit, at least four non-associated gas wells remain unopened. ONGC’s director of production, Pankaj Kumar, revealed in an exclusive interview with Upstream that these wells could be brought online by mid-2025, finalizing the project.
However, industry analysts question whether gas output will meet expectations, raising concerns over reservoir performance and infrastructure challenges.
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