Oil and Natural Gas Corporation (ONGC) shares surged nearly 3% on Monday after the company announced the commencement of production from its fifth oil well in the KG-DWN-98/2 Cluster-2 asset, located in the Krishna Godavari basin in the Bay of Bengal. As of 9:45 am, ONGC shares were trading 2.26% higher at ₹326.10 on the NSE.
ONGC, a state-owned enterprise, marked this milestone by starting to produce and sell associated gas using a floating production, storage, and offloading (FPSO) vessel. This step highlights the company’s dedication to achieving zero gas flaring, a significant environmental commitment.
The new well adds to the existing production from the KG-DWN-98/2 block, which began in January this year. This block, located 35 kilometers off the coast of Andhra Pradesh, sits in water depths ranging from 300 to 3,200 meters and is adjacent to Reliance Industries’ KG-D6 block. The block’s discoveries are divided into Cluster-1, 2, and 3, with Cluster-2 being the first to go into production.
ONGC also announced that it has successfully commissioned its gas export line from the offshore site to an onshore terminal. Earlier this year, the company had started oil production from the same asset, with four of the 13 wells already in operation. Gas production is also progressing, with three out of seven wells online.
