ONGC is expected to start oil production from its $5 billion deep water project in the Krishna Godavari basin offshore India’s eastern coast this month.

The project, known as Cluster-2, has been delayed by more than two years due to the coronavirus pandemic and other execution issues.

However, ONGC is now just days away from firing up production, according to two people with direct knowledge of the development. The project is expected to produce up to 60,000 barrels of oil per day (bopd) at peak.

The Cluster-2 development is a top priority for ONGC in its drive to boost domestic oil and gas production. India is heavily dependent on oil imports, and the government is keen to reduce this reliance.

The start of oil production from Cluster-2 is a positive development for India’s energy sector. It will help to reduce the country’s import bill and improve its energy security.