First cargo of ONGC's crude oil from KG basin block reaches Mangalore refinery

The first cargo of ONGC’s newly explored crude oil from KG basin deep-sea block was received at Mangalore Refinery and Petrochemicals Ltd (MRPL) on Saturday, the refinery said in a statement.

The new crude oil from Krishna Godavari basin block KG-DWN-98/2 was brought to Mangalore by a ship named Swarna Sindhu, which was flagged off by Prime Minister Narendra Modi on March 2.

”This sweet (low sulphur) indigenous crude is poised to be transformed into various fuels and petrochemicals at MRPL, Mangalore, contributing impactfully to the Athmanirbhar Bharath mission of the Government of India,” it said.

Oil and Natural Gas Corporation’s (ONGC) KG block KG-DWN-98/2, which started oil production in January, lies in Andhra offshore.

The field is producing some 12,000-12,500 barrels of oil per day currently using a floating production and storage offloading (FPSO). The oil is stored on the FPSO and once it reaches a critical level, it is transferred to a ship which carries it to a refinery for processing into fuels like petrol and diesel.

MRPL is a subsidiary of ONGC.

”At its peak, this production is expected to reach 45,000 barrels of oil per day of crude oil and 10 million standard cubic metres per day of natural gas,” the statement said.

Speaking on the occasion, MRPL managing director M Shyamprasad Kamath said that this crude oil production results from ONGC Group’s commitment and technical capabilities to contribute to the nation’s energy self-dependence.

He said this crude oil would amount to a 7 per cent increase in India’s crude oil and natural gas production potential at its peak.

”MRPL, a coastal refinery with three separate crude distillation units and essential supporting infrastructure, is well poised to process newer crudes. This has enabled it to have a diverse crude basket of 250 crude oil from around the globe, of which more than 100 have already been processed in the refinery complex at Mangalore,” it added.