Fresh Oil Discovery In Krishna-Godavari Basin

State-owned oil corporation ONGC(Oil and Natural Gas Corporation) has started the production of "first oil" from the country's first crude find, Krishna Godavari Deep-Water Block 98/2. 

• The oil is being extracted from the Krishna Godavari basin, which is located thirty kilometetres off the coast of Kakinada in the Bay of Bengal. 
• India, the third-largest oil consumer and importer in the world, sources crude oil from various global markets to cater to its domestic needs.

About Discovery

• ONGC has announced the commencement of the 'First Oil flow to FPSO' from the Krishna Godavari Deep-Water Block 98/2, located in the Bay of Bengal, on January 7th, 2024. 
• This marks the nearing completion of Phase 2 of the project. Phase 3, which is already underway, is expected to be completed by June 2024 and will lead to peak Oil and Gas production. 
• The 98/2 project is expected to increase ONGC's total Oil and Gas production by 11 percent and 15 percent respectively.

Crude Oil Production

• Crude oil production is the amount of oil extracted from the ground after removing impurities. This includes crude oil, natural gas liquids (NGLs) and additives. 
• Crude oil is a mineral oil made up of natural hydrocarbons. It is yellow to black, and its density and viscosity vary.
• NGLs are liquid or liquefied hydrocarbons produced during the purification and stabilization of natural gas.
• Additives are non-hydrocarbon substances added to a product to modify its properties, such as improving its combustion characteristics, for example, MTBE and tetraethyl lead.
• Refinery production refers to the secondary oil products made in an oil refinery.

About ONGC

• Maharatna ONGC is the biggest Indian company that produces crude oil and natural gas. It contributes approximately 71% to the Indian domestic production. 
• Downstream companies such as IOC, BPCL, HPCL, and MRPL (last two of which are subsidiaries of ONGC) use crude oil as a raw material to manufacture petroleum products such as petrol, diesel, kerosene, naphtha and cooking gas LPG.