First oil flowed at phase two of Oil and Natural Gas Corp. Ltd.’s (ONGC) deepwater KG-DWN-98/2 Block in the Bay of Bengal on Jan. 7, the Indian operator announced on Jan. 8.

The waxy crude of the M Field—part of Phase 2—required the use of pipe in pipe technology, which had not been previously used offshore India, according to ONGC.

ONGC estimates the 98/2 project in the Krishna Godavari Basin offshore East India will increase the company’s oil production by 11% and gas production by 15%.

Phase 1 began production in March 2020, with gas flowing from the block’s U Field.

ONCG said the final phase of the 98/2 project in 4,265 ft water depth is on track for the remaining oil and gas fields to begin production by mid-2024. In November, McDermott announced winning a contract to transport and install a central processing platform and living quarters for the 98/2 project.

Peak production is expected at 45,000 bbl/d and 10 MMcm/d.

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