ONGC gave good news, crude oil production will start soon from new wells; Will imports decrease?

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The state-owned crude oil producing company Oil and Natural Gas Corporation (ONGC) has given good news to the people of the country. The company will start producing oil this month from its long-delayed deep-sea project in the Krishna Godavari basin in the Bay of Bengal, a senior ONGC official said in a statement.

Speaking to news agency PTI, ONGC Director (Production) Pankaj Kumar said that we are planning to start production from cluster-2 project in KG-DWN-98/2 block this month and ramp it up gradually. intend to Oil production from Cluster-2 was supposed to start by November 2021, but was delayed due to the global pandemic. Kumar said that ONGC plans to start production from three to four wells initially and gradually add more.

How much will the yield be?

Regarding production, Kumar K said that the initial production could be 8,000 to 9,000 barrels per day. ONGC will send the first batch of crude oil to its associate company Mangalore Refinery and Petrochemicals Limited (MRPL). He said that crude oil will be tested and its grade and price will be determined through production.

India imports 80% of crude oil.

India imports more than 80 percent of its crude oil requirements from abroad. According to oil ministry data, between April and September of the current financial year, India has imported 87.8 percent of its crude oil requirement from abroad. Also, domestic production of crude oil during this period is only 12.2% of the requirement. In such a situation, the production of crude oil from new wells is expected to increase.

Crude oil price

Due to global conditions, the price of crude oil has seen a lot of fluctuation in the last few months. Brent crude, the crude oil benchmark, was trading down 0.68 percent, or $0.55, at $80.88 a barrel. Meanwhile, WTI crude was down 0.65 percent, or $0.50, at $76.67 a barrel.

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