Syllabus: GS1/ Natural resources in India
| Context: Source: IE Oil and Natural Gas Corporation (ONGC) has started crude oil production from its deep-sea project in the Krishna-Godavari (KG) basin block KG-DWN-98/2. The project is likely to increase ONGC’s total Oil and Gas production by 11 percent and 15 per cent respectively and is expected to add 7 percent each to India’s current production of oil and natural gas. |
What is KG-DWN-98/2 Project and Significance?
- First oil was recovered from the Krishna Godavari Basin thirty kilometers off the shore of Kakinada by ONGC. This project began in 2016 and was completed in 2017, however there were significant delays due to COVID.
- The offshore KG-DWN-98/2 block is located next to the prolific KG-D6 block of Reliance Industries in the Bay of Bengal.
- It is located around 35 km from the coast of Andhra Pradesh in water depths of 300-3,200 metres.
- For the project, ONGC employed a cluster development approach, bunching up the discoveries in three clusters.
Significance
- Large projects like KG-DWN-98/2 are critical to the country’s objective of reducing its reliance on oil and gas imports to meet its rapidly growing energy needs.
- India is the world’s third-largest consumer of crude oil and depends on imports to meet over 85 percent of its requirement.
- The country is also a major importer of natural gas, as domestic gas output is able to meet around 50 per cent of the demand.
Krishna-Godavari basin
- The basin is a sedimentary passive margin pericratonic (comprises fluvial, lacustrine and paludal sediments and is characterized by plant fossils) basin located on the east coast of India. (Note: Pericratonic is a geological term that means surrounding a craton. Pericratonic basins are formed by the rifting of the continental margin and develop in stages on the passive margins.)
- The basin came into existence due to rifting along the eastern continental margin of Indian Craton in early Mesozoic.
- It is bounded by the Eastern Ghats to the east and the Deccan Traps to the west and divided into two sub-basins: the Krishna sub-basin and the Godavari sub-basin.
Importance of Krishna-Godavari basin
- The Krishna-Godavari basin is an important economic asset for India. The basin provides a significant source of energy, minerals, and other natural resources for the country.
- The basin is also a major source of employment for the region.
- It is one of the most important hydrocarbon-producing basins in India, accounting for about 20% of the country’s oil and gas production. The oil and gas produced in the basin is found in the sandstone and shale formations.
- The Krishna-Godavari basin is also home to a number of other natural resources, including iron ore, which is mined in the region.
- The basin also has a number of limestone deposits, which are used in the construction industry.
What is Offshore Drilling
- Offshore drilling refers to the process of extracting oil and natural gas from beneath the seabed. This activity involves drilling wells in the seabed and is typically conducted in continental shelves.
- Offshore drilling holds significance for India in several ways, contributing to the country’s energy security, economic development, and technological advancement.