With First Oil Discovery From ONGC's KG Basin, India's Inches Closer Towards Dream Of Atmanirbhar Bharat In Energy Sector

The discovery of oil in ONGC's Krishna Godavari basin concurs with dreams of India's mission for an 'Aatmanirbhar Bharat'.

India announced its first oil extraction from a new discovery from state-owned ONGC's flagship deep-sea project in the Krishna Godavari Basin. With four operational wells and a target of 45,000 barrels per day by June, this project is set to contribute 7% to both crude oil and gas production in India.

Union Petroleum Minister Hardeep Puri, emphasising the strategic importance of this development has told reporters, "I am sure that out of the 26 wells there, four wells are already operational. We will not only have gas also in a short period of time, but by May or June we will hope to able to produce 45,000 barrels per day, which will be 7 per cent of our total crude oil production and 7 per cent of our gas production".

Heartfelt congratulations to @ONGC_ and the incredible team of energy soldiers for successfully extracting the oil from Krishna Godavari Basin.

This field will produce 45,000 barrels per day – a remarkable 7% of our total crude oil and gas production. Exciting times ahead! pic.twitter.com/v8MsK6CgU2 — Hardeep Singh Puri (@HardeepSPuri) January 9, 2024

"ONGC commenced its 'First Oil flow to FPSO', from Krishna Godavari Deep-Water Block 98/2 (in Bay of Bengal) on 7 January 2024, nearing completion of Phase-2 of the project. Phase-3, leading to peak Oil and Gas production, is already underway and likely to be over in June 2024. The 98/2 project is likely to increase ONGC's total Oil and Gas production by 11 percent and 15 percent respectively," ONGC said in a post on X.

#ONGC commenced its 'First Oil flow to FPSO', from Krishna Godavari Deep-Water Block 98/2 (in Bay of Bengal) on 7 January 2024, nearing completion of Phase-2 of the project. Phase-3, leading to peak Oil and Gas production, is already underway and likely to be over in June 2024._ pic.twitter.com/7Aq5CSMHp3

— Oil and Natural Gas Corporation Limited (ONGC) (@ONGC_) January 8, 2024

PM Modi has also hailed the commencement of oil production from ONGC project in Krishna Godavari basin saying that this is a remarkable step in India's energy journey and boosts the mission for an 'Aatmanirbhar Bharat'.

This is a remarkable step in India’s energy journey and boosts our mission for an Aatmanirbhar Bharat. It will have several benefits for our economy as well. https://t.co/yaW7xozVQx — Narendra Modi (@narendramodi) January 8, 2024

This achievement comes at a crucial time when the world faces a global energy crisis, and India is actively seeking ways to reduce its import dependence for fossil fuels. India currently imports close to 85% of its energy requirements, making it the world's third-largest oil importer and consumer. Previously Hardeep Singh Puri had set an ambitious target, aiming for the Indian petroleum industry to produce 25% of its crude oil demand by 2030, an achievement that can potentially protect the common man from the volatility in energy markets that adversely affect energy supply, impacting the prices of oil. Meanwhile, retail fuel prices in the country has remained unchanged since May 21 last year despite the fluctuations in global oil prices.

In realising the aim of an Atmanirbhar Bharat in the oil sphere, Prabhat Kumar, additional secretary, ministry of external affairs had highlighted the government's proactive approach to energy security. In a CII conference he had said that the focus upon energy ecosystem has to involve a self-sufficiency in storage, transportation, insurance, and retailing of energy.

Additionally, it may be noted that as the country embraces greener energy, the path to a self-reliant energy journey is quite a possible mission in the foreseable future. The Council on Energy, Environment and Water (CEEW) in its analysis reported in spetember 2023 said that if the target of 30 per cent EVs by 2030 were to be realised, this would result in reduction of 16 million tonnes of CO2 emissions, 17 per cent reduction in PM and NOx emissions and 15 per cent reduction in the crude oil import bills

The Oil and Natural Gas Corporation (ONGC) has said it has started oil production from its flagship deep-sea project in Krishna Godavari basin in Bay of Bengal, which will help reverse years of decline in output. While it is a remarkable step in India's energy journey and boosts the mission for an 'Aatmanirbhar Bharat', combined with green energy, India certainly is poised to reduce its import dependence on oil.