State-controlled Oil and Natural Gas Corporation (ONGC) is gearing up to begin oil production from its long-awaited Cluster-2 project in the KG-DWN-98/2 block in the Krishna Godavari basin, situated in the Bay of Bengal. Despite several delays, the floating production unit (FPSO) Armada Sterling-V is set to receive the first oil this month. ONGC Director (Production) Pankaj Kumar highlighted the cautious approach in the treacherous KG deepsea, emphasizing the need to avoid mistakes made in the neighboring KG-D6 block. Initial production is estimated at 8,000 to 9,000 barrels per day, gradually increasing over time.
ONGC to start oil production from $5bn deep-water project this month
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